Wealth Management Resources
Geoffrey Johnson, RICP
Financial Advisor



1820 E. Ray Road, Suite A110
Chandler, AZ 85225






Wealth Management Resources, LLC.  

The Weekly Reports

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Annuities In the News, The Weekly Reports



The Mutual Fund Industry Is A Huge Scam That Costs Investors Billions Of Dollars A Year

Business Insider,

Henry Blodgett

August 14th, 2011

Yale's legendary investment guru, David Swensen, shreds the mutual-fund industry this weekend in the New York Times.

Swensen points out what anyone who has objectively studied the facts of investing inevitably comes to realize: The fund industry costs investors billions in lost returns every year--while coining money for itself, its employees, and its distributors.

Read More



Still Fearful About Retirement Prospects, Baby Boomers Eschew Risk

By: Steve Garmhausen

The memory 2008-2009 market crash clearly continues to freak out Baby Boomers, according to a new survey by Allianz Life Insurance.

For the second year in a row, respondents were asked which they fear more: outliving their money in retirement or death. A whopping 58% said they found death more palatable than living out their last years in poverty. That was down from 61% from 2010, but still not exactly comforting to the growing number of Americans who are still not prepared for retirement.  Read More


Dow 20,000 next? It's pure speculative hype

Irrational exuberance is back but you are going to lose again!

By: By Paul B. Farrell

Wall Street Journal / Market Watch

June 21, 2011, 12:01 a.m. EDT

SAN LUIS OBISPO, Calif. (MarketWatch) — Big names like Nouriel Roubini, Jeremy Grantham and Bob Rodriguez are slinging around words like “disaster” in forecasting the stock market, advising extreme caution and defense strategies. Contrast that with hot headlines about the Dow “storming back soon,” soaring to the “Next Stop, Dow 20,000.”

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Stocks Now Down for Year as Economic Concerns Grow

David K. Randall, AP Business Writer, On Tuesday August 2, 2011, 5:22 pm

 (Yahoo Finance)

Stocks retreat, with S&P down 2.6 percent as weak economic signs overshadow debt bill passage

NEW YORK (AP) -- A sell-off erased this year's gains in the stock market Tuesday as investors grew increasingly concerned about the economy.

The Standard & Poor's 500 -- the benchmark for most U.S. mutual funds -- lost 2.6 percent and fell to its lowest point of the year. It is down 0.3 percent for the year and is off nearly 8 percent since reaching a high for the year of 1,363 on April 29. NE

A series of weak economic reports and poor earnings reports from several big companies spurred the decline.

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Best Annuities


Wall Street Journal

Barron's Cover | SATURDAY, JUNE 18, 2011

http://images.madmimi.com/promotion_images/0153/4812/original/water.jpgShortly after George Altmeyer of Bucks County, Pa., retired from his senior-management job at a large industrial company, half his stock portfolio vanished. It was wiped out by the stock-market crash of 2008. But Altmeyer, 67, never lost a night's sleep, and he doesn't worry about whether he will run out of retirement income. His secret? He bought two kinds of annuities in 2007. "They give this blanket of security—it doesn't matter what the stock market does, really," he says.

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The Annuity Puzzle

By: Richard H. Thaler

The New York Times

IMAGINE a set of 65-year-old identical twins who plan to retire this summer after long careers. We'll call them Dave and Ron. They have worked for different employers and have accumulated retirement benefits worth the same amount in dollars, but the benefits won't be paid out the same way.

Dave can count on a traditional pension, paying $4,000 a month for the rest of his life. Ron, on the other hand, will receive his benefits in a lump sum that he must manage himself. Ron has a lot of choices, but all have consequences. For example, he could put the money into a conservative bond portfolio and by spending the interest and drawing down the principal he could also spend $4,000 a month. If Ron does that, though, he can expect to run out of money sometime around the age of 85, which the actuarial tables tell him he has a 30 percent chance of reaching. Or he could draw down only $3,000 a month. He wouldn't have as much to live on each month, but his money should last until he reached 100.

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Retirees need fewer stocks, more annuities

Commentary: Equities should be no more than 25% of your portfolio

By Robert Powell, MarketWatch  

July 11, 2011, 10:48 a.m. EDT

BOSTON (Market Watch) — Fewer stocks, more annuities. That, in essence, is the advice gleaned from two just-published reports for the benefit of those living in or approaching retirement.

Retirees should invest just 5% to 25% of their portfolios in stocks, or at least that's the case for those whose primary goal is to minimize the risk of running out of money and sustaining their withdrawals, said one report published by Putnam Investments new think tank.

Don't just sit there, embrace the rat race! That's the advice of economist Todd Buchholz in his book "Rush," who says competition makes people smarter and more satisfied.

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The Basics on Indexed Annuities!

 By Sheryl Moore


June 1, 2011 -- It has been more than 2,000 years since consumers were first offered the benefits of annuities. With these insurance products came guaranteed annual payments for life, regardless of how long one lived.

Historically, sales of these income annuities accounted for a small portion of all insurance sales. This changed after the economic devastation caused by the Great Depression. Individuals were looking for a pillar of stability in their search to safeguard themselves from financial ruin. Later in the 20th century deferred annuities were introduced, offering the opportunity for tax deferral coupled with lifetime income payments at a later date. This marked the beginning of a whole new world of product development in the insurance industry.

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How an Retirement Annuity can Help Gild Your Golden Years!

 By Brendan Peacock 

Times Live

The reason they are so popular is that they offer attractive tax benefits

What is a retirement annuity? What does it do, how should you use it and how do you get paid out? Most importantly, how do you get one?

For people who have recently entered the workforce or are beginning to plan for retirement, retirement annuities are something often talked about, but less often understood.

A retirement annuity (RA) is a long-term savings contract that allows you to accumulate savings. The reason they are so popular is that they offer attractive tax benefits, because the government is understandably keen to encourage South Africans to save for their later years.

"RAs are designed to collect savings over and above your traditional employer-based fund and to provide a vehicle for self-employed individuals. Currently up to 15% of your income not allocated to another retirement fund can be contributed to an RA on a tax-free basis. Interest and capital gains earned in the fund are tax-free. On retirement, there are further tax advantages, but since the intended purpose is for your retirement, you are restricted in your ability to access your cash," said Rowan Burger, head of investment strategy at Liberty.

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Annuity Sales Post Double Digit Increase!

As Industry Wide Sales Rise, VA Assets Post Highest Level Ever Recorded.

By: www.insurancenewsnet.com


WASHINGTON, D.C. – The Insured Retirement Institute (IRI) today announced first quarter results for the United States annuity industry. Annuity sales for the first quarter posted a double digit increase over sales from the same time period last year. Industry wide sales were $58.1 billion, up 17% from $49.7 billion in the first quarter of 2010. First quarter sales also garnered quarter-to-quarter growth, increasing at a rate of 5% over $55.2 billion from the fourth quarter of 2010. Of note, variable annuity assets reached $1.6 trillion, the highest level ever recorded by Morningstar.

“With the first wave of the 79 million Baby Boomers turning 65 this year, guaranteed retirement income strategies clearly are being relied upon in growing numbers,” said IRI President and CEO Cathy Weatherford. “Recent IRI research shows that 92% of Boomers who own annuities have a higher confidence in the financial stability of their retirement compared to those who do not. The first quarter data shows that the peace of mind that only annuities can bring to a holistic portfolio is being increasingly recognized by those most in need of guaranteed retirement income – a trend that we expect to continue throughout the year.”

Fixed annuity sales for the first quarter were $18.9 billion, up from $17.6 billion in the previous quarter, representing a 7% increase. Year-to-year quarterly sales of fixed annuities were up 6%, increasing from $17.9 billion in the first quarter of 2010.

Los Angeles Times "Most 2011 Stock Market Gains are Gone"


Most 2011 Stock Market Gains are Gone

Article by Nathaniel Popper  (Los Angeles Times)

June 10, 2011

The Dow Jones industrial average slips below 12,000 for the first time since March. Negative reports on manufacturing, real estate prices and unemployment as well as other economic benchmarks have led to six consecutive weeks of falling share prices.

Reporting from New York— So much for those stock market gains that were fattening up portfolios not so long ago.

Disappointing economic news drove stocks down again Friday, sending the Dow Jones industrial average below 12,000 for the first time since March 18.

Most of the profits U.S. stock investors have seen since the beginning of the year have been wiped out after six straight weeks of falling share prices.



Which Annuity is Right For You?

By Sarah Morgan 

Wall Street Journal / SmartMoney

For retirees interested in an annuity, it can be difficult to figure out which (if any) is right for you. Though the premise – guaranteed income for life – is attractive, there are hundreds of different kinds, all with slightly different conditions and pages of tiny type. Furthermore, the fact that annuities often have high fees and that payout rates have slumped recently makes the issue even more complicated. A new study from the Employee Benefit Research Institute sheds light on the issue, looking at two types of annuities, immediate and longevity, to determine how retirees can best allocate their assets to wind up with a 90% chance they won't outlive their income, even considering long-term care costs. An immediate annuity starts providing a steady stream of income, well, immediately, but a longevity annuity doesn't start paying out until later. Because of that delay, a longevity annuity gives you more bang for your buck: based on current prices, this study assumes that a 65-year-old man retiring today could buy an immediate annuity that pays $3,791 every year for a $50,000 premium, while a $50,000 longevity annuity that kicked in at 85 would pay $39,501 annually.



Is it time to buy an Annuity?

By Anne Tergesen and Leslie Scism 

Wall Street Journal / Weekend Investor 

Retirees with pension envy increasingly are turning to annuities to restore some financial security to what are supposed to be their golden years. But with payouts near multiyear lows, it's important for them to consider how much to buy and when to pull the trigger—and whether a different strategy might better suit their needs.



Wall Street Journal "Stocks Swoon, Worry Rises"


Stocks Swoon, Worry Rises

Dow's Sixth Straight Down Week Fuels Concern Over More Severe Declines Ahead

Article by E.S. Browning (Wall Street Journal) June 11, 2011


Friday's stock market plunge knocked the Dow Jones Industrial Average below 12000 for the first time since March, sending the index to its sixth consecutive weekly decline, its longest losing streak since 2002.

The blue-chip swoon, which pushed the average down 172.45 points, or 1.4%, to 11951.91, was fueled Friday by fears of continuing U.S. economic weakness, as well as growing signs that Greece will prove unable to repay its debts and worries about slowing Asian growth. The Nasdaq Composite Index, which has been buoyed by technology shares, shows a small decline for the year.




Five down weeks stir crash whispers

Article by Peter Brimelow

The Wall Street Journal "Market Watch"

NEW YORK (MarketWatch) — Double dip? Five down weeks has Wall Street whispering about another Crash. First, a (moderately cheerful) proprietary word. The average recommended stock market exposure among the timers tracked by the Hulbert Financial Digest, as represented by the Hulbert Stock Newsletter Sentiment Index [HSNSI], stood at 24.8% on Friday night. That contrasts with 46.0% last Tuesday, which Mark Hulbert worried, citing contrary opinion, said was “only moderately lower than the 67.2% that prevailed at the beginning of May.”

Mark concluded: “Perhaps the most bullish thing that could happen in coming sessions, according to contrarians, would be for the market to undergo further declines, and that those declines prove to be so discouraging that a majority of the currently bullish market timers decide to throw in the towel.”

Well, at least it looks like this process is underway.



Top 10 Indexed Annuity Misconceptions

Article by Sheryl Moore (AnnuityNews)

June 7, 2011 -- Negative and inaccurate publicity on indexed annuities seems to overshadow the product's value at times. It is frustrating to see how hard it is for consumers to find accurate and reliable information on these products. I have spent the past four years personally responding to, and correcting, every published piece of misinformation on indexed insurance products. For these reasons, I thought it appropriate to list the “Top 10 Indexed Annuity Misconceptions.” 

10. All indexed annuities have high surrender charges: Actually, more than 75 percent of indexed annuities sold had a 10-year surrender charge or less as of the first quarter of this year. Although there is an indexed annuity with 16-year surrender charge, no one seems to mention that there are also indexed annuities with surrender charges as short as three years.

 9. All indexed annuities have big bonuses: Not so. In fact, about four out of 10 indexed annuities have no premium bonus at all. Admittedly, most of the advertisements that we see on indexed annuities are for big bonus products. But what is more enticing than seeing how you can “Earn 10 percent while your client gets a 25 percent bonus”? It's a great teaser, but can it close the sale? In truth, more than 75 percent of indexed annuities have less than a double-digit bonus; and as of the first quarter, more than 30 percent of all indexed annuities sold had only a 5 percent premium bonus on them.



It's Time to Stop One-Sided Retirement Planning:

Article by Wendy Waugaman (CNBC News)

Americans have lost more than $2 trillion in retirement savings in the last three and a half years. A recent AP poll says 42% of Baby Boomers surveyed said they'd delayed retirement due to lost money in their retirement plans, personal investments or real estate during the recent economic meltdown.

Yet many retirement planners only advocate the stock market and investment products as retirement savings solutions, skipping Baby Boomers' needs for safer alternatives. Additionally, the government has expressed concern that current defined contribution plans do not adequately provide options for guaranteed lifetime income. The upshot — One-sided, market-dominated planning advice that only further endangers retirement.




Public losing confidence in Social Security: Annuities are the answer!

By Seth Kravitz


May 11, 2011 -- Many Americans don't believe they will receive the full Social Security benefits due them when they retire.

This is not merely a recent phenomenon sparked by challenges to the federal budget and authorized federal debt levels. There are lots of people tossing and turning all night regardless of whether or not Congress is in session.

This insecurity toward Social Security is good news for the annuity industry.Consumers who are fearful about government resources know—or at least suspect—that they should be looking for ways to fund retirement. And annuity agents offer a concrete answer to free-floating financial anxiety and fears.

Do your clients believe Social Security will be there when they need it?




People 70 or older may find an annuity offers better income than a term deposit.

By JOHN ARCHER, Special to The Gazette May 9, 2011 8:36 AM

 MONTREAL - A headline recently caught my eye: "Number of 100-year-olds is booming in the U.S." The article went on to say that America's population of centenarians had doubled in the past 20 years and  was estimated to perhaps double again (or grow by even more) by 2020, according to the latest U.S. Census Bureau information.

 This meant that about 23 out of every 100,000 Americans had reached age 100 in 2010. The increased longevity is being attributed to healthier lifestyles, good genes and active minds.

  Certainly it can be estimated that the Canadian experience has been similar, if not better, given our access to health care and lower crime rates. Assuming this is the case, one had better position their  ources of longevity income accordingly.

 With the decline of longterm interest rates, life annuities have fallen out of favour in preference for other types of income-oriented portfolios. However, annuities are not only a gamble on interest rates, but also on one's life expectancy. So although long-term interest rates are hovering around historic lows, there is no doubt that life expectancies are expanding and are probably at historic highs. For this reason, for those above age 70, the income payout levels of annuities can certainly still be worth a look, particularly when compared to the low levels of income generated by other sources of fixed income today, such as bonds or term deposits.



The Annuity Imperative

Article by Bob Seawright


As retirement nears, return of capital must trump return on capital.

Retirees and near-retirees often wonder whether they should purchase an annuity to provide sustainable lifetime income — in effect, a guaranteed retirement paycheck — that they cannot outlive. Most do not. That's often a big mistake. No other financial tool converts lifelong savings into lifelong income as efficiently or as safely.

Since at least the publication of the "Trinity study" (published by three Trinity University professors in The AAII Journal in Feb. 1998), the financial planning community has focused considerable effort trying to create a "safe withdrawal rate" — the amount which may be withdrawn per year for a given period of time, including adjustments for inflation, without leading to portfolio failure. A "4 percent rule" is the advice most often given for managing this period of portfolio distribution. The analysis commonly assumes something like a 60/40 equities/bonds portfolio with annual returns in the 7-8 percent range, 10 percent volatility and 3 percent inflation.




Harry Dent: “Major Crash” Coming for Stocks, Commodities Already Topping Out.

The first quarter comes to a close today with major averages at or near multi-year highs. Expect "substantial" further gains for stocks before a "major top" occurs in late summer, says noted forecaster Harry Dent, founder of HS Dent and The Dent Method.

The good news, for those long, is Dent predicts the Dow will trade as high as 13,200 by mid-summer and the S&P 500 as high as 1430, or more-than 7% above current levels. The bad news is "then we could see another major crash," Dent says, forecasting the Dow could trade as low as 3300 in a worst-case scenario. "Bubbles go back to where they started or a little lower," he says. "The stock market bubble started at (Dow) 3800 in late 1994."




Why Does Wealth Management Resources, Inc. Recommend Fixed Index Annuities? 

Have you ever wondered how a Fixed Index Annuity compares to the S&P 500 Stock Market Index over the last 50 years?

Check out the 50 year chart below to see how $1000.00 grew from 1959 to 2009. 


An investment of $1000.00 in the S&P 500 Stock Market Index between 1959 to 2009 grew to $18,615.00.
An investment of $1000.00 in a Fixed Index Annuity using an annual point to point strategywith a 10% annual cap between 1959 to 2009 grew to $20,940.00.
Where would you rather have your money?
In the red line, where your principal is at risk or:
 in the green line, where your principal is protected?
**An annuity is a contract between a contract owner and an insurance company and is designed to meet long-term needs for retirement income. They provide guarantees against the loss of principal and credited interest, and the reassurance of a death benefit for beneficiaries.  Guarantees are based on the financial strength and claims-paying ability of the issuing insurance company.  They also include surrender free withdrawals, potential for tax deferral, and flexible income options including lifetime income.  Any distributions are subject to ordinary income tax and, if taken prior to age 59 ½, a 10% federal tax penalty.

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