January 18, 2012

What are you busy about?

"It is not enough to ask why you are so busy. The question is, what are you so busy about?" - Henry David Thoreau


In today's society everyone seems to be "busy". Right now you may be busy and hoping this article isn't too long to read because you have too many things to do today. People today do not have time for even the basic needs to form a strong family, the core of a strong society. Most people do not have time for their financial planning nor estate planning. Maybe they are hoping that those issues will be taken care by themselves. Entrepreneurs are running around with great ideas but "too busy" to develop a business plan that could harness that idea and focus the energy to increase the chances for success.

Most people will share with you with pride and puffing up their chest about how busy they are. As if being busy is something to be proud of and the goal. Being busy and being productive are two totally different things. Being busy without a clear vision will lead to wasted of time. Unfortunately that is a plague that has infected most people in the United States. Most executives will have 53 items in their to-do list taking space on a piece of paper as to satisfy their ego that they are doing something or as a way to prove their co-works "I am busier than you". Tasks in your to do list that don’t add value to your life or work are going to lead to frustration and wasted time. Are those tasks that are keeping you busy providing you a deeper sense of fulfillment and are they aligned with your values? Do they provide you joy and peace of mind?

Today is a good day to take a moment and reflect on the tasks you are performing and in the midst of your busyness ask yourself "what are you busy about?". Is there a better way, more efficient and less stressful way to accomplish my daily tasks? Being busy is ok when you are focused, grounded and calm.

Here are five tips:

1. Define your core values
2. Avoid Over-Committing
3. Learn to Say NO
4. Outsource, Delegate and Automate
5. Take a "Mini-Vacation" from the busyness and noise

Martin Luther King said that he'd never have accomplished what he did if he didn't spend three hours a day in prayer. How much time are you taking for prayer and meditation? Take a moment today and reflect on what is truly important for you. Take a moment and prepare a plan on how to accomplish the goals that will provide you and your loved ones joy, fulfillment and peace of mind.


January 16, 2012

Understanding Mental Health

Mental health is as important as physical health. Still, millions of Americans suffer with various types of mental illness and mental health problems, such as social anxiety, obsessive compulsive disorder, addiction to drugs and alcohol, and personality disorders. Mental illness and psychological disorders have good treatment options with medications, psychotherapy, or other treatments.

Mental health concerns everyone. It affects our ability to cope with and manage change, life events and transitions such as bereavement or retirement. All human beings have mental health needs, no matter what the state of their psyche. This book is written specifically for those who want to have an introduction to mental health, mental illness and mental health problems. It is written in simple language from a person that is curious about the subject and wants to share with you his research.

My curiosity about what makes certain people successful, drove me into the road of mental health. I am not an expert in the subject of mental illness ad treatments, thus before any actions to self-treat or self-diagnose your mental health status you should consult with a qualified physician who can properly diagnose and treat any potential mental illnesses. What became clear to me is that there is more to good health than just a physically healthy body: a healthy person should also have a healthy mind. A person with a healthy mind should be able to think clearly, should be able to solve the various problems faced in life, should enjoy good relations with friends, colleagues at work and family, and should feel spiritually at ease and bring happiness to others in the community.

Why should you be concerned about mental illness?

As mentioned earlier, our mental health affect how we perceive many aspects of our lives. It is an integral part of our whole health. There are many reasons why you need to be concerned about
mental illnesses.:

Because they affect us all. It is estimated that one in five of all adults will experience a mental health problem in their lifetime.
Because they are a major public health burden. Studies from nearly every corner of the world show that as much as 40% of all adults attending general health care services are suffering from some kind of mental illness.
Because they are very disabling. Even though the popular belief is that mental illnesses are less serious than physical illness, they do in fact produce severe disability. They can also cause death, as a result of suicide and accidents.

The World Health Report from the World Health Organization in 2001 found that four out of the ten most disabling conditions in the world were mental illnesses. Depression was the most disabling disorder, ahead of anemia,  malaria and all other health problems.

Because mental health services are very inadequate. Specialists spend most of their time caring for people who suffer from “severe mental disorders” (‘psychoses’). These are quite rare, but are also the very diseases that the community associates with mental illness. Most people with the much commoner types of mental health problems, such as depression or alcohol problems, would not consult a mental health specialist.
Because mental illness leads to stigma. Most people with a mental health problem would never admit to it. Those with a mental illness are often discriminated against by the community and even their own family.
Because mental illness can be treated with simple, relatively inexpensive methods. This is the good news! It is true that many mental illnesses cannot be ‘cured’. However, many physical illnesses, such as cancers, diabetes, high blood pressure and rheumatoid arthritis, are also not curable. Yet, much can be done to improve the quality of life of those who suffer these conditions and the same applies to mental illness.

It is important to understand mental health so we can help ourselves and our loved ones. The stigma often associated with the many forms of mental illnesses is very real. For example, many people with bipolar disorder or other mental illnesses are afraid to share their condition with other people for fear of ridicule or judgment. The stigma is so real in fact many will avoid telling friends or family of their mental condition. Many people with bipolar disorder face stigma and discomfort from well-meaning friends and family members that don't really understand bipolar disorder. It is common for patients with bipolar disorder to feel misunderstood. Unfortunately even many health care providers carry with them a biased attitude toward bipolar patients. Many have a difficult time focusing on the real reason a person is in their office. Instead they focus on the mental health issue.

Here are some small steps patients and family members can take to help overcome the stigma associated with mental illness:

* Always accept your condition for what it is.
* Never attempt to hide your condition for fear that others will be un-accepting or misunderstand you.
* Educate friends and family. Direct them to a number of sites that help explain bipolar disorder and other mental illnesses. Great reference sites include the National Alliance on Mental Illness.
* Confidently explain that one if five people suffers from some form of mental illness or another.
* Remember that you are more an insider than you realize.
* One out of every five of your friends, acquaintances or associates likely suffers from some form of mental illness. -Use support groups to help bolster your self-confidence and promote your inner peace and well-being.

If you are interested in learning more about mental health, I have compiled an easy to read and understand e-book "Understanding Mental Health" were I cover types, causes, and treatments available.

===> Understanding Mental Health http://ow.ly/8tErj

January 15, 2012

Life Insurance is NOT an Investment

Life insurance is not an investment, the purpose of life insurance is to protect your loved ones in case of your premature death. The reason I am writing this short blog today is due the constant question which one is better Whole Life or Term Life? The best answer I can give is it depends. I do I have a problem with "gurus" who give their "infallible truth" about term insurance being the only way to buy insurance.

I understand that whole life is not the best option for everybody but neither is term life insurance. For example, if you purchased a ten year term, ten years ago and develop some medical condition and can no longer afford insurance then you wont be able to get a new policy. However, if you have a whole life policy then it doesn't matter as long as you continue paying your premiums. Life insurance is NOT a one size fits all solution. Ask any over 60 year old right now how the "Buy Term and Invest the Rest" strategy worked for them around 2008. Most of them right now sit with no insurance, since most of them are now uninsurable, and their investment portfolio are valued at a fraction of what it once was. In addition, they are not able to sell their home to cover the devaluation of their investment portfolio since the real estate market is still so low in the United States.

Both types of policies have advantages and disadvantages. There are never any absolutes in life and that is why it is important to discuss your specific situation with your personal financial services professional, who can in turn help you find the right product for your situation.

The problem is that most people listened and are easily impressed by “experts.” We drool for the "As seen in Oprah" type of "experts". Unfortunately in today's society we consider someone who who utters quick and "authoritative-sounding" responses to our questions as an expert. Most people consider a "know-it-all" as an expert. However, people forget that it is all marketing. It is about selling and it works. That is why we are willing to pay hundreds even thousands of dollars to attend the seminars organized by these "gurus". The question we all must be asking is, Is the "expert" giving advice that helps his listeners or advice that sells? If the "expert" gives advice that does not sell, no one listens.

We must come to a different understanding of what defines an expert. Many times the best expert is the one that is willing to say "I don't know". However, I don’t see too many of that type around nowadays.

January 11, 2012

Baby Boomers Taking A New Look At Retirement


A recent AllState-National poll found that Baby Boomers are pushing back their initial retirement plans from an average of 60 years to 66 years. In addition, the results of the poll showed that 68% of the Baby Boomers expect to work in some form after retirement. The concept of retirement age is no longer what used to be 10 years ago. According to a survey conducted by Wells Fargo & Co in August 2011, 76% of the middle class Americans surveyed considered that “it is more important to have a specific amount saved before retirement, regardless of age, while only 20% say it is more important to retire at a specific age, regardless of savings.”
Other results of the Wells Fargo survey:
  1. 25% of middle class Americans say they will “need to work until at least age 80” to live comfortably in retirement.
  2. 74% of middle class Americans expect to work in their retirement years, including 39% of all respondents who will need to work to make ends meet or maintain their lifestyles, while 35% say they will work because they want to, rather than out of financial need.
  3. Among middle class Americans age 40 to 59, 54% say they will “need to work,” compared to 34% of those age 25 to 39. Accordingly, only 25% of those between the ages of 40 and 59 say they will work in retirement because they “want to,” versus 45% of Americans between the ages of 25 and 39.
  4. Of the Americans who will work in retirement, 47% say they will do “similar work” to their pre-retired years, while 42% say they will work in a position that requires “less responsibility.”
These changes in behavior bring some interesting questions and potential implications in our society. Will baby boomers be physically and mentally able to work later in life? Be efficient and productive until ae 80? What will it mean to the young generation entering the workforce in the next 10 to 15 years from now? And, how does our system of retirement savings need to be reformed to help reduce the savings gap?”
This recession has taken a heavier toll on the middle class than past recessions. However, the “sandwiched generation” (those near-retiree sandwiched between the already retired and the young generation) will feel a heavier burden since their retirement savings and real estate values have both declined substantially in the last 7 years. This has caught many near-retirees by surprise and now will force them to stay in the work force longer than they anticipated.
There is still time to make corrections in your retirement plans if you are in that “sandwiched” situation. It will take immediate action and potentially making some strong and sacrificial changes over the next 5 to 7 years to make sure that you can enjoy a comfortable retirement.

January 7, 2012

Tips on Buying Insurance

Before you talk to an insurance agent it behooves you to do a little research about the insurance buying process. The purchase of insurance should be taken seriously and you should never rush in the decision process. Regardless of the insurance you are purchasing, whether it’s life or car insurance, it’s a huge decision that demands a little research and your undivided attention. Also, if you spent some time upfront and determine what you need or want, locating the insurance policy that best fits your needs will not be the unpleasant task that many people think it is.

That is why it is important that you meet with your insurance advisor to assist you in locating the best insurance policy for your needs. It is critical that the insurance you purchase meets YOUR needs and not the needs/wants of the insurance agent. You don’t want to make any hasty decisions, an incorrect could mean thousands of dollars wasted over the long term.

Insurance is important in the building and protection of your assets. Therefore, in the same way we spend time in developing an investment portfolio or business planning, we ought to dedicate time to determine our insurance needs. As we get older, our needs change and so our insurance needs. Furthermore, not all insurance companies are built equal.

I’ve compiled a list of six tips to take into consideration when purchasing a new insurance policy.  Hopefully these tips will help you make a wise decision and save yourself countless headaches:


1. Determine your needs. This should be your first step in the purchase of insurance. Why are you buying insurance? What are you protecting? Determine how much it would cost to replace something that is valuable to you — your life, if you are disable and unable to work for three to six months, your home, your business equipment with which you generate revenues or anything else you determine is important. Compare the cost and inconvenience of replacing the asset you want to protect and you will find out that many times that insurance (when properly purchased) is comparatively inexpensive.

2. Research the company’s ratings. Many times overlooked. The best example was our recent recession. Many banks and insurance companies failed. Poor management decisions can lead an insurance company to lack the proper funding when the time comes to pay claims. Insurance companies are no different that other businesses. You need an insurance company that will be around when you need their service. Therefore, do your due diligence; you might even be surprised at the companies that don’t fare too well.

3. Check your insurance agent credentials. The presentation and sale of insurance products are regulated by your state. Insurance agents must be properly licensed and trained for the products they are presenting to you. As mentioned above, you need to have an insurance agent that is qualified to help you in the decision process and not just trying to sell you a product that they have no idea if it truly fits your needs but they know that they are making a huge commission on it. There are many insurance sales people, some are out there just for the commission they can make on the sale. However, there are a lot of great insurance professionals well trained and prepared to assist you in making the right decision.

4. Check your local BBB. Research consumer complaints filed against the insurance company under consideration. Knowing what the complaints are against a company will tell you how solid of an insurance company they are. Do not overreact on complaints filed, find out what type of complaints where filed and how the company handled them. Once again, insurance companies are no different than other businesses, they make mistakes too. Also, look at the frequency of complaints filed, are the same complaints being filed? Repetitive complaints could be a sign of weak internal controls.

5. Get the right coverage for YOU. Remember that the insurance must meet YOUR needs. Therefore, you should buy the right type of insurance and the right amount of coverage. Never let an agent tell you how much insurance or coverage you need. As a financial advisor, I could make a recommendation and it is my responsibility to justify my calculations based on the facts I have about my clients. However, it is YOUR responsibility to figure out how much insurance you want. Letting an insurance company blindly tell you what you need is like asking a casino how much you should gamble.  Whether you need an umbrella policy or extended coverage, this is for you to decide, not an agent. 

6. Ask some tough questions. Insurance is a significant financial decision. Take the time to really ask the tough and important questions. Also, remember that the investment in insurance coverage can have long-term implications. If your insurance agent seems uncomfortable, unable or unwilling to answer your questions, unprepared or unable to explain to you the insurance product that he/she is presenting to you, you are better off going to another insurance professional.

I hope these tips will be of help to you in the your decision making. As you may have noticed, I did not mentioned price on my tips. Even though, price is important, insurance is more than just price. Many times you will hear of horror stories of people that thought they had insurance or certain coverage and they find out the hard way and when it is too late. The cheapest insurance is not always the best option. Take these principles and print them out, keep them nearby when you are meeting or talking to your insurance agent. Remember, it is your money and it is your decision, if you ever feel that your agent is not listening to you or does not address your needs, that is a sign that it may be time to end the conversation and consider a different company.  Take your time and make a decision you and your wallet can be proud of. Never buy insurance under pressure.

January 1, 2012

Texas Elder Investment Fraud Scams

Seniors many times live solitary and isolated lives, which makes them ripe targets for scammers and fraudsters to gain their confidence by becoming their new constant "friend" which can lead to any combination financial abuse. As our baby boomers in our families are reaching the age of retirement, they will be become the focus of attack of these opportunistic fraudsters. The common thread in all Ponzi schemes is greed, they offer "results to good to be true" and greed blinds people. 


We must be active participants in our family members financial decisions. If you are not personally qualified to do the job, then hire a trusted financial advisor. There are many good financial professionals in your area, attorneys, CPAs, CFPs that could help you and your elders in your family analyze the "wonderful offers" being made to your family members. 


Today I will share a sad story that was released in the month of December where an Amarillo-based property management and insurance company selling securities has swindled $6.7 million from about 100 investors, most of them elderly.


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