Posted in Debt Free Me

Month End: March Snapshot


This month I began creating and implementing a system in my new role. I’m enjoying this role, because it’s taking the existing skills that I have, improving on those skills, and learning new skills all for fulfilling the vision of my workplace in 2017. This new role is also enjoyable because I must be creative. I honestly don’t know if I could be able to handle this pace of life if it wasn’t for the help of the Lord and my darling wife. I’m very thankful that when I come home at night, I have a meal ready to eat. I’m going to work early and leaving late at night. I remember a time when it was a struggle for me to get to work on time, whereas now I really have no choice due to where I live and the commute I must take to get to work. It’s a longer commute time, which some would think of as uncomfortable, but I look at it as an opportunity to improve on a work habit. The extra time I have early in the morning allows me to prepare my mind mentally for the day, and staying late, allows me to finish what I need to finish or just relax my mind to close the day.

It’s important to take every storm as an opportunity to look for and seek the end of the storm. The truth is every storm has an end, and that there is a plan and a purpose in every storm. Next month, I’m going to use a balance transfer to assist in covering living expenses. My wife has decided to take her licensing test next month vs. this month, and I completely encouraged her to do it. I’d rather she be comfortable and pass the test the first time, rather than run the risk of failing it. We’re also pursuing in applying for a personal line of credit for her to assist in consolidating her debt. It’s important to get credit when you don’t need it, because if you try to get it when you do need it, then it may be too late. Use the lower interest rate payments to save money and payoff consumer debt faster. One of my associates in my organization sold one of his first combined policies, and I’m very excited at his level of enthusiasm, and look forward to helping him achieve his goals. My goal for the year is to become a better communicator and so far, I’ve been face with numerous opportunities to develop this skill.

If you want to learn more about how I’m increasing my income, while reducing debt or if you want to have someone to discuss your debt reduction strategy with, or if you need a financial check-up, contact me.

Also, learn more about how I use the self-lending principle through Mustard Seed in the mustard seed section.

“The LORD will send rain at the proper time from his rich treasury in the heavens and will bless all the work you do. You will lend to many nations, but you will never need to borrow from them.”
‭‭Deuteronomy28:12NLT‬‬
http://bible.com/116/deu.28.12.nlt
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I believe in your journey to….

A Debt Free Me

Here’s this month’s video: Be Powerful –motivational speech video – T.D. Jakes from the Motiversity YouTube channel.

Posted in Debt Free Me

Month End: February Snapshot

This month I celebrated my first full month living with my wife. We were fortunate enough to go to the marriage conference together at the last minute, and I was thankful that we did. Our apartment is starting to look like a home, and my wife has begun studying to take her test to be licensed as a registered nurse. This month especially is filled not just with numbers and budgeting but faith also. Faith in things not yet seen and having the will to continue to do a good work regardless of the outcome. I have the opportunity for a new position at my job and having to rely on something greater than myself to handle these new responsibilities. Either way when I get paid my process remains the same and I look to use my self-lending principle whenever I can.

I’m looking to sell as many plans as possible not just to reduce debt, but to also help protect people. My thought process remains the same: increase income, and lower expenses, look for income producing assets, and build wealth to leave a legacy. Over the next few months you should see my debt reduce significantly. My wife and I have talked about using a consolidation loan to consolidate and reduce the payments on my two installment loans which should free up more cash flow. The only drawback of an installment or term loan is the payments are set for the term of the loan unless you can convince the loan officer to re-amortize the debt.

If you want to learn more about how I’m increasing my income, while reducing debt or if you want to have someone to discuss your debt reduction strategy with, or if you need a financial check-up, contact me.

Also, learn more about how I use the self-lending principle through Mustard Seed in the mustard seed section.

“The LORD will send rain at the proper time from his rich treasury in the heavens and will bless all the work you do. You will lend to many nations, but you will never need to borrow from them.”
‭‭Deuteronomy 28:12 NLT‬‬


http://bible.com/116/deu.28.12.nlt

I believe in your journey to….

A Debt Free Me

Here’s this month’s video: Retrain your Mind from the Be Inspired YouTube channel

Posted in Pursuit of Excellence

December 7, 2016

http://www.fool.com/investing/2016/12/05/3-top-dividend-aristocrats-to-buy-in-december.aspx

Income investors know how important consistent growth in payouts can be, and the dividend stocks that you’ll find among the Dividend Aristocrats are among the best in the business at providing dividend growth. With requirements of at least a quarter-century of annual payout increases, Dividend Aristocrats prove their success through good times and bad. Let’s take a closer look at why Medtronic (NYSE:MDT), 3M (NYSE:MMM), and Enbridge (NYSE:ENB) are among the top Dividend Aristocrats to buy this month. Meditronic had a rough 2nd quarter, and its revenue fell $110 million short of estimates. Despite this quarter, this company has recently received approval for the 1st artificial pancreas. Having raised its dividend in 39 consecutive years and averaged a compound dividend growth rate of 18% over that span, Medtronic does a good job of rewarding its shareholders. Yet with a payout ratio of just 40%, there’s plenty of coverage for this dividend to head higher. Smart income investors would be wise to give Medtronic a closer look. 3M is a recommended buy as a dividend aristocrat because of the company’s been increasing its dividend for 58 consecutive years. With earnings growth targets of as much 11% annually between now and 2020, 3M is setting its sights high to maximize its prospects going forward.  Finally, the author recommends Endbridge due to its average compound dividend growth of 10.6% over the past two decades. What’s even more impressive than this history is that the company is in the process of an enormous expansion program that will make it one of the largest energy infrastructure in North America. I recommend looking at these stocks’ financials, and their 5 year to 10 year charts. Decide if these stocks are a part of your long-term portfolio or midterm portfolio.  In my opinion a mid-term portfolio should have a 20-year decision point. If it’s a part of your long-term portfolio, then hold forever barring unforeseen circumstances.
http://www.investopedia.com/advisor-network/articles/120816/how-income-taxed-differently-wealth

Due to the content of this article, I’ll be quoting heavily from it. Many people use the words income, rich and wealth interchangeably. These words are often used in conversations with professional athletes and high-income professions such as doctors and attorneys. Investopedia defines ultra-high net worth individuals (UHNWI) as people with investable assets of at least $30 million, excluding personal assets and property such as a primary residence, collectibles and consumer durables. I define wealth as having investable accounts that will not run out in your lifetime. Simply having income does not mean that you also have significant wealth. I’ll focus on taxes and retirement savings to show what I mean.

The author clearly distinguishes the difference between income tax and wealth tax (long term capital gains tax). The author shows your normal income tax table, which you can view at www.irs.gov.  The author shows the difference in these types of taxes with this example:

Let’s say your job pays you $500,000 and you pay the highest earned income rate (marginal tax rate of 39.6%). It was nice that your contract said that you would be guaranteed $500,000, but due to the tax bite, you only net $317,000. Now, if your income came from the wealth tax (long-term capital gains), it would be taxed at 20%. You would gain $83,000.

Earned Long-Term
Capital Gains
Income $500,000 $500,000
Rate 36.60% 20.00%
Tax $183,000 $100,000
Net $317,000 $400,000
Difference $83,000

There is also a difference between retirement savings and retirement wealth. Your 401k or IRA isn’t retirement wealth. In most cases, they represent accounts that will be used to create retirement income for as long as there is money in the account. Money with a high probability of running out is not wealth. In contrast, if pensions don’t default, they won’t run out of money. However, 401(k)s and IRAs don’t have those guarantees. In fact, I have not found a non-certified financial planner professional that has a plan to turn IRAs into lifetime retirement income

If you have $1 million in retirement balance that you use for income, you don’t have wealth. Traditional IRA and 401(k) balances have never been taxed. That means that if you pull out $50,000, you will pay $5,684 in income tax on $50,000. If you withdrew the whole thing, you’d pay $356,875, only being able to spend $643,125. These numbers don’t include state taxes and other applicable taxes and fees.

Paid Out $1,000,000 $50,000
Tax $356,875 $5,684
Spendable $643,125 $44,316

 

If you need are interested in creating a budget, then contact me for a financial checkup in the contact me section.

For this week, I’ve included The 2008 Financial Crisis: Crash Course Economics #12 from CrashCourse YouTube channel.

“If you think you know it all, you’re a fool for sure; real survivors learn wisdom from others.” Proverbs 28:26 MSG