N’Terprise
Sound Strategies Can Protect Your American Dream

If I told you at the beginning of the year that Bear Stearns, Lehman Brothers, Goldman Sachs, LaSalle Bank, Merrill Lynch, Wachovia and Washington Mutual would ALL be facing financial difficulty and become the poster-children for corruption, greed and fiscal mishandling…what would you say?

Clearly, Chicken Little is gaining a following. But the sky is not falling, if you seize the opportunity to protect your assets.

At this very moment, the new millionaires are being developed, those that can persevere and do the right things will be leading a rising generation of leadership in our communities. Here, then, are some financial strategies that can help you to push through these tough times.

Diversify your Risk Money vs. your Safe Money. When investing into the stock market, read the “prospectus” your financial advisor gives you when you establish your account. On the front of that prospectus are the words “You May Lose Money,” or a version thereof. It is imperative that you understand this important detail. Check out the video on our YouTube Channel (MatthewSapaula, Inc.) that highlights this point. Ask yourself, “How much can I afford to lose? For most of us the answer is, NONE! Begin by setting aside the money that you know must be there at your side at any time in your life. The rest, invest cautiously and understand that without some element of risk, there is no higher reward.

Practice Prudence –Discipline and consistency are the golden keys to success. Remember, the tortoise always wins--it is not how you start, but how you finish. During down times, your savings in the stock market buy shares when they are cheap and literally, at a “discount.” You do like buying cheap, don’t you? If you cannot stomach losing the value of those shares, then save that in your bank savings account, money market fund or even a shoebox. Just save it! Do not put any unnecessary worry into your bank failing and losing your money. The FDIC, so far, has been great helping the failing banks meet their obligations to customers and for the most part, have only needed to change the name on the branch offices and checkbooks. The limits for FDIC are $100,000 for single accounts, $200,000 for joint accounts and $250,000 for retirement accounts. If you have more than that, it’s a good idea to split your money between different accounts.

Utilize the Safety of the Life Insurance Industry – Yes, the modern life insurance industry has financial instruments that help policyholders obtain living benefits, not just death benefits anymore. There are less-known financial instruments within the life insurance industry known as fixed/indexed life insurance and fixed/indexed annuities. Clients who have had cash in these financial instruments have felt very little, if any, volatility in their accounts or income fluctuating from their policies. And heaven forbid, if any tragedy came upon them, a death benefit from their life insurance policies go income tax-free to their beneficiaries. How safe are these companies? AIG, the holding company, had problems and needed an $85 billion loan. But their subsidiary life insurance companies maintain high solvency and financial strength ratings according to many independent ratings agencies. Have you seen the life industry having problems like the real estate, stock market and bank industry? Nope, they have not and continue to show their financial strength in a time of economic weakness.

Maintain Liquidity - If you own a home, establish a line of credit, if you still can. Or, look to restructure your existing mortgage so that you can separate the equity from your home and deposit this cash into a liquid, safe account that you control. If done properly, your existing mortgage payment should not change. Check with a mortgage professional to structure this properly. It is just as important to manage your debt as it is to manage your assets.

Build and Create New Relationships - As always, it is not whom you know but who knows you. If you get laid off, it is those relationships that can lend a helping hand to speeding up your job search, transition or career change. Also, don’t take getting laid off personally--maintain your professionalism and dignity. Former co-workers and managers will remember how you left a job and wherever you go, your reputation will always proceed you. Also, when you can, look to find ways in helping others.

Invest in Yourself and Increase Financial Literacy – Plato says necessity is the mother of invention. Well, this is a great time to re-evaluate yourself, your job, your passion and life direction. Gaining knowledge and awareness is becoming more important so turn off that TV and read! Plus, you can turn a hobby into a profitable passion, thereby creating a new business or an additional stream of income. With the Internet as your marketplace, the world is waiting for you to create a “How To” book, course or coaching service. What a great way to give back, pay it forward and make a living!

Hoping that things will “turn around” because “someone” will fix it is ignorant and unrealistic. In other words, things will not just fall in your lap--you must go out there and get after it.

Networking event:

Learn life-changing financial secrets and surge through tough economic times with Matthew and NY Times best-selling author Douglas R. Andrew!

When: Tuesday, October 14th, 2008 @ 7pm

Where:
Ashton Place
341 75th Street
Willowbrook, IL 60527
(West of 75th and Kingery Highway)

Schedule of Events:
5:30-6:45pm
Complimentary Screening for FREE Financial Strategy Session & Book Signing

7:00–8:30pm
Live Workshop Presented by New York Times Best-selling Author
Douglas Andrew
(888) 749-2863
www.matthewsapaula.com