To read Torrid Technology’s full PDF February TechTalk Newsletter, please click the link below.

February FA

To read Torrid Technology’s full PDF copy of the February TechTalk newsletter, please click the link below.

February Newsletter Consumer

I was privileged to take a trip to a wealthy golf haven back in January – a playground for the rich. But first I want to rant about something related…
Our American foundation is under attack. Make no mistake. Powerful forces are trying to pull America toward the left. I’m not talking about social issues. I’m talking about economic policy, incorrect thinking about “jobs”, and the rampant disease of “entitlement”. Since its founding, America became great because of hard work, persistence, and personal responsibility.
Unfortunately, too many people now feel “entitled”. Entitled to a job even if they have no skills or don’t work hard. Entitled to high speed internet, cable, smart phones, and 2 nice cars (not one but two). America became great because you did “the work” before you got “the rewards”.
Do you have employees that constantly show up late for work? Constantly check their Facebook and Twitter during the work day? Do they get grumpy when you ask them to actually do “some work”? If so, then you need to DO something about it. Let the firings begin if need be, until the situation improves.
There’s also an ugly rash of attacking those that are wealthy and successful – the evil 1-percenters. America grew exponentially because of the “American Dream”. From as far back as when people “went West” to start their homesteads in the face of great danger, people in America have the “seek a better life” mantra bred into their genes – at least until recently. Shouldn’t people in America still aspire to be successful? Many times wealth is accompanying that success. And I don’t think anyone should be ashamed of the wealth that comes with their success. After all they are the ones that worked hard for it!
I had the privilege of visiting the Marriott Palm Desert Resort in Palm Springs back in January. This place just screams “luxury” from the moment you pull into the palm tree lined approach. This is the type of place that the wealthy and successful get to enjoy… not because they were “entitled” but because they “worked really hard”.
I didn’t get much if any time to enjoy the golf, the pool, or the amenities. I was there for an NPH Broker/Dealer conference – both as an exhibiter and also to be on a financial planning software “panel”. Even being in such a beautiful place, there were many of us there “working” and “selling” to try to make our businesses more successful. That is a statement in and of itself. The breakfast time in the exhibit room started at 7am each day. The all day schedule went until 8pm and 9pm each night. Not much time to even catch up on email.
I’m not writing this to “whine” but just to tell you about my recent trip and show off these gorgeous photos. And also to share a few things that I learned. There were two “famous” people that spoke at the conference – Daymond John from Shark Tank and Brian Billick, NFL Coach and now TV commentator. Both “worked really hard” to achieve their success.
Daymond John was broke and overextended for years as he tried to get his clothing business off the ground. Hard work, long hours, and focused strategy eventually helped his business to take off. He never felt “entitled” while he was building his business. He didn’t sit around on the couch “hoping” it might work. He acted. He persevered. He would fail and then find another way.
Brian Billick gave his thoughts on how to build a successful sports team or business. His 3 main keys for success are the Personnel, Structure and Chemistry. First, you have to hire the right players and employees. “Those who won’t are no better than those who can’t” said Brian.
You then give those people the “Structure” to be successful. Empower them to excel at their jobs by not micromanaging them. His last big key was to foster the right “Chemistry”. Fear might motivate in the short term, but in the long term you can’t sustain any success because fear does not build chemistry. Brian’s big key here was that “they don’t care what you know until they know that you care”. This applies to employees and clients. Once they know that you care, then they will care what you do, what you know, and how you can help them.
Hopefully over the years we have shown you, our customers, that we do care. May the American Dream never die. Go after it and don’t ever be ashamed of that pursuit.

Simple key to future wealth: Save, invest early

For the under-35 set, the savings rate has gone from 5.2 percent in 2009 to minus 2 percent. While their increased spending is good for the economy, not saving will impair their ability to spend in the future or buy  a home, according to Mark Zandi of Moody’s Analytics.

Lack of savings leaves young workers without a financial cushion for unexpected expenses and for job transitions. So saving in an emergency fund should be their first goal.  Some make enough money so they could save, but spend it on their social lives and travel. Others have a retirement account at work but don’t invest  in it or anything else because, as one says, “It’s too complicated.”

How to get started on 401(k) savingsS

Building a nest egg might cost less than you think because employers match contributions at a generous rate. It’s usually between 50 cents and 100 cents on the dollar up to a set limit, usually 6 percent of your pay. The contributions are taken out of your check before taxes.

If you earn $30,000 annually and contribute 6 percent to your retirement plan, that works out to $150 a month, and your employer adds $75 to your account. You will pay $22 less in federal withholding each month and about $5 less to your state. In the end, contributions reduce your pay by $123 but your account grows by $225. Maintain this plan for 40 years and you’ll have over $l million socked away, says Kiplinger’s Personal Finance. If you are 25 or 30 years from retirement, the total would still be amazing.

How do you find the extra $123 a month (about $31 a week)? Pack a lunch, buy a used car instead of a new one, or add a roommate. Or you could find it by reducing your phone and cable costs, and spend less on dining out, and clothing expenses.

Have you heard about the MyRA President Obama introduced in 2014? It is a federal program whereby American workers will be able to contribute to a retirement savings plan not tied to an employer.

Illinois passed a bill 12/3/14 that will be begin their own similar plan in 2017 called Secure Choice. Companies of >25 employees will be required to offer this program. Those employed in these companies will be automatically enrolled in the state’s program deducting 3% of their salary and putting it into a Roth IRA (opt-outs will be allowed). These funds will be portable from job to job.

While this program is designed to help those who don’t have access to employer offered savings programs, the saver will bear the cost of administration surrendering just under 1% of their balance to administrative costs. The bill’s fact sheet states: “Only employees will be allowed to contribute tho their accounts. Neither the state nor employers can contribute or have any fiduciary responsibility or liability.” Read more at links below.  http://tinyurl.com/npx5r4z, http://tinyurl.com/pvcsxqc

MyRA Preview

The Problem

According to the National Institute on Retirement Security, “the median retirement account balance is $3,000 for all working-age households and $12,000 for near-retirement households.

The administration claims that almost half of Americans do not have access to 401k plans or the like making it difficult to set money aside for retirement.

How it works

•Earn $191,000 a year or less to be eligible

•Initial investment= $25 minimum

•Ongoing contributions via payroll deductions as little as $5

Pros:

•High safety- government guarantee balance will never decrease

•Not tied to employer

•People are saving for retirement

Cons:

•Interest rate based on Thrift Savings Plan offered to federal employees. (2013=1.83% return)

•Profitability base on market performance

Want to read more?

http://tinyurl.com/pma88k9         NIRS Study

http://tinyurl.com/qabgjnt     MyRa fact sheet

http://tinyurl.com/puwb7ch       DailyFinance

January 2015 Consumer Newsletter

Years ago my wife and I found a delicious French dessert shop here in Marietta.  Luc and Danielle moved here from France and sold pastries and desserts out of their house in a slightly industrial area.  Having been to France for our honeymoon years ago, we always had a taste for French food.

The little pastry shop grew by adding a few tables and some more parking.  At some point they started serving breakfast and lunch after adding an addition to the house to seat more people.  On a typical Saturday you couldn’t get into the parking lot to even park, much less get a table.

Yes the food is that good.  The success of this little pastry shop has  continued.  Just a few years back they bought a new location, with more room, a bigger kitchen, and a lot more parking.  On a recent Monday over the holidays you could not find a spot to park and the line was out the door to get a table.

This little French restaurant and pastry shop is called Douceur de France.  The desserts are the best I have found anywhere in Atlanta – at least as far as walk up and get something to go from their glass enclosed pastry cases.  They make their own ingredients to go into their tasty goodies.  What places do you know that make their own whipped cream, their own chocolate, their own everything?

My favorite there is the hot chocolate.  So far it is the best I have had in the world.  OK so I don’t usually get hot chocolate all over the place but try it yourself and see if you have found better.  They use their own chocolate mix and their own fresh whipped cream on top.  I can just taste it as I write this.

In your business, ministry or endeavors, what are your secret homemade ingredients?  The ones that get people to want to meet with you, listen to you or seek what you offer?  If you don’t have any special ingredients, then maybe it’s time to identify one or two.

In December Torrid Tech had a holiday luncheon there for everyone who works here.  Not surprisingly almost everyone did have the hot chocolate as well as other scrumptious fare.  Tell Luc and Danielle “Bonjour” if you ever get a chance to visit.  They will show you some real southern hospitality – French style.

Years ago my wife and I found a delicious French dessert shop here in Marietta.  Luc and Danielle moved here from France and sold pastries and desserts out of their house in a slightly industrial area.  Having been to France for our honeymoon years ago, we always had a taste for French food.  

The little pastry shop grew by adding a few tables and some more parking.  At some point they started serving breakfast and lunch after adding an addition to the house to seat more people.  On a typical Saturday you couldn’t get into the parking lot to even park, much less get a table.

Yes the food is that good.  Do people come to your business like this?  Craving more?  Telling everyone they know?  The success of this little pastry shop has continued.  Just a few years back they bought a new location, with more room, a bigger kitchen, and a lot more parking.  On a recent Monday over the holidays you could not find a spot to park and the line was out the door to get a table.

This little French restaurant and pastry shop is called Douceur de France.  The desserts are the best I have found anywhere in Atlanta – at least as far as walk up and get something to go from their glass enclosed pastry cases.  They make their own ingredients to go into their tasty goodies.  What places do you know that make their own whipped cream, their own chocolate, their own everything?

My favorite there is the hot chocolate.  So far it is the best I have had in the world.  OK so I don’t usually get hot chocolate all over the place but try it yourself and see if you have found better.  They use their own chocolate mix and their own fresh whipped cream on top.  I can just taste it as I write this.

In your business, what are your secret homemade ingredients?  The ones that get people to want to meet with you, want to see you again, and want to be your client forever.  If you don’t have any special ingredients, then your practice may just fall prey to the rise of the robo advisors. 

In December Torrid Tech had a holiday luncheon there for everyone who works here.  Not surprisingly almost everyone did have the hot chocolate as well as other scrumptious fare.  Tell Luc and Danielle “Bonjour” if you ever get a chance to visit.  They will show you some real southern hospitality – French style.                                                             

by Tim Turner

As part of the new Retirement Income Literacy Survey from the American College of Financial Services, a startling new reality has come to light. Recently released, this new study that shows 80% of Americans fail a test of basic knowledge on how to survive retirement on the nest egg they’ve created. They state that “a large majority of people age 60-75 with at least $100,000 in assets lack the knowledge they need for a financially secure retirement in areas such as life expectancy, Social Security, long-term care needs, investment risk and more.

How did the grades stack up

Less than 1% of all respondents scored an A. 1% Scored a B. 5% scored a C. That’s less than 7% so far. 14% scored a D and a whopping 80% scored an F! Even in light of these abysmal scores, the study states that more than half the survey’s sample consider themselves well-prepared to meet their needs in retirement and 91% are “at least moderately confident” that they will be able to provide themselves a comfortable retirement.

4% Rule

Do you know the 4% rule? 69% of respondents were unfamiliar with the safe withdrawal rate in retirement. 16% thought it would be save to withdraw as much as 8% a year in retirement while another 20% leaned further back to only a 2% withdrawal being the safest way to go.

Social Security

Would you be one of the 53% who knew that it is best to wait to claim it until age 70? This could be a critical decision for the safety of one’s financial security.

More factors

How much risk should you take after age 65? How do the interest prices affect your bonds?

How RetirementView Software can help

Use your RetirementView Software to SEE a picture of what your retirement nest egg can really do. You can play with different scenarios and watch the graph change indicating a better or worsening situation.