BOTHELL, WA: Agents know that life insurance can sometimes be difficult to sell. Let’s face it. There’s just not a lot of excitement in buying something that you never get to see or use in your lifetime. Most people want the lowest cost insurance and will often shop around. Many will meet with an agent to learn more, but may buy their policy online from a discount term insurance website. The whole process can be frustrating and fruitless for agents.

However, one life insurance agent and financial planner has clients so excited about buying life insurance that they want to pay as much as possible on their premiums and purchase multiple policies on their children, grandchildren, nieces and nephews.

How does he do it? Dwayne Burnell, MBA shows his clients the value of using permanent insurance as a powerful financial tool and a reliable forced savings vehicle.

Dwayne uses his knowledge of insurance policies and financial planning to sell dividend-paying whole life policies (dividends are not guaranteed; they are declared annually by the Company’s Board of Directors) that achieve predictable growth for clients’ wealth, even in uncertain economic times. Dwayne says, “The most common complaint I hear from people is that they’ve lost so much of their hard earned money to the stock market. When I tell them that not one of my clients lost a penny of their retirement savings in the recent market downturn their eyes light up and they are ready to learn how.”

In late 2008 Dwayne was approached by another company to write a book explaining his lifetime financial strategy to consumers and agents. Dwayne’s book, entitled A Path to Financial Peace of Mind was released in January 2010. Many agents consider the book to be their most powerful sales tool. It challenges traditional means of financial planning and presents the strategy that involves whole life insurance with easy to read case studies and hypothetical policy illustrations.

A Path to Financial Peace of Mind has already collected numerous accolades from agents and clients.Randall Davey, an agent and financial adviser, thanks Dwayne “for taking the time and making the investment in humankind by writing a common sense guide to accruing wealth in a conservative yet impressive way.  I am giving a copy of your book to every client with whom I work.  I think it takes the ‘abstracts’ of conversation and web meetings and converts the same to a well grounded and well articulated understanding.  In my view, your work is affordable, helpful and a must for any agent who is serious about educating clients.”

The book is available on Amazon.com and agents can get a volume discount when ordering online at www.FinancialBallGame.com. Dwayne is also available by phone at 800-266-2971 to answer questions about the strategy and will work together with agents on cases to help educate the client and design the most efficient policy.

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Journalists: To obtain a review copy, download a sneak peek, or hi-resolution images of the book visit www.FinancialBallGame.com/press or contact Kelly Lawson by phone at 800-266-2971 ext 701 or email to KellyLawson@FinancialBallGame.com.

Summary:
Title: A Path to Financial Peace of Mind, Author: Dwayne Burnell, MBA
Website: www.FinancialBallGame.com, Publication Date: January 2010
ISBN: 978-0-9841335-0-5, Price: $24.95 (1 – 9 copies) / $21.95 (10 – 31 copies) / $19.95 (32+ copies)

Contact: Kelly Lawson (phone/fax: 800-266-2971 ext 701, email: KellyLawson@FinancialBallGame.com)

Are you saving for retirement or investing for retirement? What’s the difference and why should you even care? Most media sources and even financial professionals use the terms saving and investing interchangeably, as if they mean the same thing. They don’t. And not understanding the difference could put your retirement at risk. Let’s take a look at what these terms mean.

Source: A Path to Financial Peace of Mind by Dwayne Burnell, MBA

Savings is money that you don’t want to loose or can’t afford to lose. It’s kept in a low risk environment where it can grow consistently without being subject to losses. The power of compounding interest creates predictable growth. Your money in savings is always there when you need it. It may not be earning record returns, but it’s also not enduring record losses.

Investments are subject to loss. The higher risk typically correlates with a higher earning potential. Common investment products are stocks, mutual funds, and other securities. The Securities and Exchange Commission cautions investors that “the money you invest [...] is not federally insured. You could loose your ‘principal,’ which is the amount you’ve invested.” It also points out that “when you invest, you have the opportunity to earn more money than when you save.”

Despite these important differences, it’s very common to see these terms misused. For example a recent article from Consumer Reports: Money Adviser, a very reputable publication, mentions “saving” in a 401(k) multiple times. Most 401(k)s are investments primarily or entirely composed of mutual funds and, as “savers” noticed in 2008, are subject to huge losses. Yet people continue to “save” at every pay-check in these investment vehicles. For many people, their 401(k) will be a primary source of income for retirement.

Even BusinessWeek offers up the 401(k) as a way to “save” for retirement. The same article by Amy Feldman states that investors who were persistent in their contributions through the market downturn saw their investment accounts rise by a median of 7%. Well, their balance certainly should have risen if they were making contributions to it. It was not the earnings that some of those accounts rose, it was by the consistent efforts of the people making the contributions. In fact, 14% even lost money regardless of making regular contributions to their 401(k).

While 401(k)’s are appropriate financial structures, it’s troubling to see them masquerading as savings vehicles. While the greater earning potential of investing is attractive, the thought of not having your money available to you when you need it is not. Understanding the difference between saving and investing can help prevent the pain of a capital loss right when you may need access to your money the most.

Sources:

“Differences Between Saving and Investing,” US Securities and Exchange Commission, http://sec.gov/rss/ask_investor_ed/saveinvest.htm (accessed February 23, 2010).

“Retire these myths,” Consumer Reports: Money Adviser, Volume 7, Issue 2, February 2010.

Dwayne Burnell, A Path to Financial Peace of Mind (Bothell, WA, FinancialBallGamePublishing.com, 2010), page 10.

Amy Feldman, “401(k) Outlook,” Bloomberg Businessweek, February 15, 2010.

This article is insurance compliance approved. GEAR Number 2010-1990

Registered Representative of Park Avenue Securities LLC (PAS), 20700 44th Avenue West, Suite 240, Lynnwood WA 98036. Securities products and services offered through PAS, 1-800-600-4667. Financial Representative, The Guardian Life Insurance Company of America (Guardian), New York, NY. PAS is an indirect, wholly owned subsidiary of Guardian. FinancialBallGame.com is not an affiliate or subsidiary of PAS or Guardian. PAS is a member of FINRA, SIPC.

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If you’ve noticed less dazzling results in your mutual funds than the average rates of return seem to suggest, there may be murder afoot. The mutual fund industry seeks to enhance it’s overall attractiveness in the way it presents its data. One of the ways this is done is by killing off funds that are poor performers. Also slated for the chopping block are unpopular funds that didn’t succeed in attracting many investors and redundant or similar funds. All of these funds are unceremoniously dispatched by merging or liquidation. According to USA Today 1,336 mutual funds bit the dust in 2009.

Why doesn’t the mutual fund industry just live and let live? Well, for one, poor performers bring down the average return of the industry as a whole. John Waggoner points out that merged or liquidated funds have “one big advantage for the fund industry: They inflate the funds’ actual track records. When a bad fund is merged or liquidated, its record disappears forever –and that boosts the funds’ overall average performance.”

When the mutual fund industry reports an overall average rate of return for the year, the poorest performers have been excluded as they indeed no longer exist. While these poor performing mutual funds were “alive” they decreased earnings and/or even caused losses for investors, creating somewhat of a discrepancy between the stated overall mutual fund rates of return and the actual rates of returns that investors witness on their investments.

But don’t go thinking of the mutual fund industry as nefarious killers. The merging and liquidation of funds is part of the routine cleanup process and you can’t blame the industry for wanting to put it’s best face forward. However, be aware of this when considering your financial options. If mutual funds are part of your strategy, make sure you are comfortable with the chance that you could see your mutual funds’ performance fall short of the advertised averages. It’s also prudent to have a savings portion of your portfolio in a low-risk financial product to temper your overall risk.

Sources: John Waggoner, “1,336 Mutual Funds Leave This Mortal Coil,” USA Today, January 25th, 2010.

This article is insurance compliance approved. GEAR Number 2010-1991

Registered Representative of Park Avenue Securities LLC (PAS), 20700 44th Avenue West, Suite 240, Lynnwood WA 98036. Securities products and services offered through PAS, 1-800-600-4667. Financial Representative, The Guardian Life Insurance Company of America (Guardian), New York, NY. PAS is an indirect, wholly owned subsidiary of Guardian. FinancialBallGame.com is not an affiliate or subsidiary of PAS or Guardian. PAS is a member of FINRA, SIPC.

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The economic downturn of 2008 and 2009 has left a wake of financially devastated companies and individuals. We hear the stories of retirees returning to difficult work, white collar business men and women who can’t even find a job in food service, and of course companies who’ve gone belly up or are at least feeling the pinch of tough times. There is unanimous financial fatigue as our country struggles to rebuild and start over in 2010. So it’s always interesting to hear about a company that didn’t suffer in 2009.

On February 12th Ohio National, a mutually owned life insurance company, sent out this letter (attached) announcing record sales and capitol growth in 2009. David O’Bailey, chairman, president and CEO of Ohio National Financial Services announced that “in the face of unprecedented economic conditions, Ohio National had a very strong year in 2009.” He adds that “during periods of economic stress the real character of an organization emerges [...] Our organizational discipline and focus remain consistent – to deliver long-term policyholder value by providing the highest quality products with the benefits and protection our customers need.”

It’s that type of conservative decision making, keeping the interests of the policy owners as top priority, that makes mutually owned life insurance companies our top choice for building a lifetime financial strategy with whole life insurance.

Here are a few qualities that we weigh favorably in our decision to work with a particular insurance company:

Conservative Investment Strategy: “The company continues to employ a conservative, diversified investment strategy and strong liquidity position. The company has virtually no exposure to equities or troubled asset classes. At year-end, more than 92 percent of the company’s bond portfolio was rated at investment- grade. At year-end, less than one-half of 1 percent of the company’s bond portfolio was in or near default, and only four-tenths of one percent of the mortgage portfolio was delinquent.”

Strong Record of Dividend Paying: “For the 86th consecutive year, Ohio National paid dividends to all participating whole life policies. A total of $38.3 million was paid to participating policyholders.”

Consistent Financial Strength: “Ohio National was one of the few financial companies to have its excellent ratings reaffirmed by independent analysts during 2009. In addition, the company’s ratings have not changed since 1991.”

Long Stable History: “Ohio National was founded in September 1909 in downtown Cincinnati. [...] Ohio National today markets a variety of insurance and financial products through more than 50,000 representatives in 47 states (all except Alaska, Hawaii and New York), the District of Columbia, Puerto Rico and through subsidiary operations in Santiago, Chile.”

We here at FinancialBallGame.com would like to congratulate Ohio National on it’s 100 year anniversary and it’s exceptional performance in 2009. We are proud to be associated with Ohio National and are confident when we include an Ohio National product in a client’s strategy that it’s a strong product from a disciplined and conservative source.

To learn more about the whole life financial strategy and the other great companies we work with please call us at 800-266-2971. President and financial coach, Dwayne Burnell, MBA is happy to answer any questions or discuss your personal situation.

After the devastating stock market results of 2008, the record growth in 2009 brought smiles to the faces of bedraggled fund managers. In fact, according to The Wall Street Journal, the average stock return in 2009 of 34.9% is the best performance in the market since 1958!

But for investors, this happy news is not necessarily cause for celebration. Even with the exceptional performance of 2009, 97% of all stock funds are still showing a loss after the effects of 2008. Investors still have less money in their accounts than they did two years ago. The Wall Street Journal reports that, out of the 2,301 stock funds with over $100 million in assets, under 3% –just 63 funds– are in the black.

From A Path to Financial Peace of Mind by Dwayne Burnell, MBA

This highlights the fact that a drop in the stock market can cause capital losses that are very difficult to recover from. Take a look at this example from A Path to Financial Peace of Mind.  To recover from a 50% loss you would need to earn a 100% return on your investment. This is exactly what were recently facing in March of 2009 in which, according to Alexandra Twin of CNNMoney.com, the stock market was down approximately 54% from a high in October 2007. It takes a lot more time and effort to gain 100% then it does to loose 50%. This doesn’t even take into consideration the opportunity costs. It’s important to consider the cost of what your money could have earned in a steady growth situation during the time it took to recover from your loss.

The record rate of return in 2009 is a bitter sweet victory for those that have their retirement invested in stock funds, as is common with 401K plans. Sam Mamudi of The Wall Street Journal estimates that “an investor with $1,000 invested on January 1st, 2008 would only have about $800 on January 1st, 2010.” After two full years of working and saving, retirement investors are no closer to retirement than they were in 2008.

As you can see, protecting against a capital loss is of critical importance since the greater your loss, the harder it is to get back to your original starting point and even harder to get ahead. While stock funds can certainly be a viable component of a portfolio, it’s a very good idea to maintain a portion as savings in a low risk financial vehicle where that money is not subject to market losses.

Sources:

Dwayne Burnell, A Path to Financial Peace of Mind (Bothell, WA, FinancialBallGamePublishing.com, 2010), page 24.

Sam Mamudi, “For Mutual Funds, ‘09 Doesn’t Erase ‘08,” The Wall Street Journal, January 15th 2010.

Alexandra Twin, “For Dow, Another 12-Year Low,” CNNMoney.com, March 9th 2009.

This article is insurance compliance approved. GEAR Number: 2010-1989

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Credit: Matthew McDermott (via AmeriCares.org)

Guardian Life Insurance Company, a mutually owned life insurance company, not only shows a commitment to the well-being of its policy holders, but also reaches out to those in need around the world.

In a recent letter Dennis J Manning, the President and CEO of Guardian, states that “Guardian is deeply concerned for all those impacted by the earthquake that recently struck Haiti.  Our thoughts are especially with our associates and policyholders who have family and friends in this devastated country.  We are committed to providing assistance to those whose lives have been affected by this disaster.

Our company will be making a corporate donation to AmeriCares, a highly regarded disaster relief and humanitarian aid organization, to assist in its extensive earthquake relief efforts that are already underway.  AmeriCares has been providing humanitarian aid to Haiti since 1984, partnering with local health care organizations throughout the country to deliver more than $145 million worth of medical aid and humanitarian relief.

Many of our associates have expressed the desire to personally assist the unfortunate victims of this tragedy.  I applaud you for your generosity and encourage you to donate to AmeriCares’ Haiti relief fund.  Instructions for making donations can be found by visiting AmeriCares’ Website at http://www.americares.org/ or by clicking here.

It is through actions such as these, as well as our corporate donation, that our company will continue to demonstrate our guiding values that people count and we do the right thing.  Our thoughts and prayers will continue to be with the Haitian earthquake victims during their recovery.”

We at Financial BallGame are pleased to work with companies like Guardian that exhibit core values that stand for protecting and providing for families all over the world.

It’s here! After 13 months of dedication Dwayne finally releases his first published work, A Path to Financial Peace of Mind. In the book Dwayne challenges the status quo of traditional financial planning and presents a commonly overlooked financial tool and outlines a lifetime financial strategy to put individuals, couples or families on “A Path to Financial Peace of Mind.”

The book is available to purchase online at FinancialBallGame.com (click on the A Path to Financial Peace of Mind tab) or on Amazon.com. If you just can’t wait to get your eyes on it, try the Sneak Peek available on the Financial BallGame website.

Here are some of the great things people have to say about A Path to Financial Peace of Mind!

“Dwayne has written an easy-to-read, easy-to-understand book that will definitely help me explain the role that cash value building whole life insurance should play in my client’s lives.  He has used well thought out and easy to follow analogies and illustrations to help prove his concepts.  I think anyone who is interested in securing their lifetime wealth would benefit from reading and implementing the concepts covered in this book.” -Kevin F.

“Completed your book coming back to SC. Excellent! I think you have a ‘best seller!’” -Jim D.

“This book presents a no-nonsense way of creating wealth using money most American’s are already spending without requiring them to resort to risky stock market investments that have filled the airwaves and periodicals for the past 30 years.” -Jim K.

Read the book already? Add your comment below or send your feedback to ContactFBG@FinancialBallGame.com.

Guardian Life Insurance Company just announced that “Guardian’s Board of Directors recently approved a $712 million dividend allocation to its individual life policyholders in 2010.” Dividend paying is at the insurance company’s discretion and is not guaranteed. That said, we’ve found that historically companies continue to pay dividends regularly once they have begun paying them. It’s good to know that the mutually owned life insurance companies that we work with here at Financial BallGame value their policy holders and even in tough times are financially capable of giving back.

Guardian policy holders will be pleased to know that the 2010 dividend interest rate will be 7.00%.

Historical Photo of Guardian Life Insurance Policy from the Museum of Insurance

In a recent letter, Deanna Mulligan, Executive VP of Individual Life and Disability products, writes that “in this period of challenging economic times, Guardian is proud to be able to allocate such a strong dividend, one that is the second highest in company history and one that is only surpassed by last year’s payout of $723 million. This allocation confirms Guardian’s strong commitment to policyholders as well as validates the sound business fundamentals we follow in managing the company.”

Guardian’s dividend paying history dates back to over 149 years in which minimizing risk and rewarding the policy holder has been a top priority. Deanna Mulligan affirms this in her letter stating that “Guardian has consistently maintained an investment strategy that is focused on the long term. This strategy is aimed at protecting Guardian’s financial strength and ratings. We have a highly experienced team of investment professionals who actively oversee our well-diversified portfolio, which has high credit quality and ample liquidity, and which has been designed to manage investment risk.”

If you are interested in more information about any of the wonderful mutually owned insurance companies we work with or would like to talk to a financial coach about the amazing living benefits of a properly designed whole life policy as part of your financial strategy, please do not hesitate to contact us or call 800-266-2971 to schedule a complimentary phone appointment.