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Location: Carrabba's Italian Grill, Cool Springs, Franklin, TN
Sponsor: Wood Financial Group
Subject: Ways to screw up your finances
Speaker:W. Houston Wood
Credentials;He's a Registered Representative with FINRA holding the following licenses: Series 6, Series 63, Series 63, Series 7 and Series 77 (Registered Investment Advisor). Holds insurance licenses to practice in Tennessee, Kentucky and Pennsylvania.
Appointments:Guests were given an opportunity to schedule an appointment with the speaker at his office. Any specific investment vehicles would be discussed at that time..
Meal: The starter was a wonderful fried calimari served with marinari sauce. The next course was a bowl of yummy Italian chicken soup that could have been homemade. The disappointing entrée was grilled Chicken Marsala topped with stuffed mushrooms and topped with Marsala wine sauce. Unfortunately,it rather resembled Salisbury Steak covered with brown gravy. Salisbury Steak would have been preferable to the lumps of dry chicken that were served. The entrée was simply not up to Carrabba's high standards. The last course was a mini dessert- a delectable velvety chocolate mousse.
Discussion:There are 4 main ways to invest your money-banks and credit unions, the stock market, bonds and annuities.
Banks:”pillowcase money” -money that makes you feel safe. Huge problems>low rate of return, income taxed, effect of inflation on buying power.
Mutual funds-Many out there, only a few are really good. Question-Who is the fund manager? Who makes the decision about which stocks are in the fund? Look in Morningside.Large cap, mid cap, small cap.
Stock funds-Can lose value just like individual stocks. Who is the fund manager?
Mutual funds- Get eaten up by fees and expenses.
Stock Market-Goes up & down in cycles. 1966/1982 down, 1982/2000 up, 2000-? down
compression rally- infusion of money causes quick upward swing, then back down
Bonds- He says to avoid them.
Annuities-can be good
Immediate-Get stream of income for life. Can't withdraw $$ for emergency, nothing for heirs
Variable- Risky, plus can get really high charges.
Indexed- Invented in 1992 and was a really good investment tool for investors. Banks got hold of them and squeezed down the rate of return until the inventor re-wrote the formula for entire product. Index is usually some index like the S&P 500. Banks like point to point income calculation. Best for them Investor maybe gets 5%-6% per year and doesn't get benefit of really good years.
Tax Reduction Strategies- OK, he talked about the taxation of Social Security benefits (who doesn't?) but then he talked about their taxation under the new tax code changes.
A good percentage of Americans will need long term care. His figures are about that nursing home care costs $70,000 a year an that's with a semi-private room. He has a form of annuity product that pays $$ out each month. Must put in $50,000.
Summary-We were handed a nine page outline prior to the presentation, but Mr. Wood only followed it in general. He emphasized the parts he deemed important and glossed over the remainder. He did not deliver an infomercial. Last night's presentation could have been a talk given at a church function about money to a bunch of members of the congregation. I learned several things, one of them being “compression rally”. Mr. Wood's presentation placed a lot more emphasis on Christian values than dry technical facts. His educational dinner seminar was, indeed, educational.