FINANCIAL PLANNING FOR THE REST OF YOUR LIFE® MONEY STRATEGIES USING SOMETHING GUARANTEED SAFE® 
Everyone is encouraged to request my free information kit and DVD. The DVD includes a PBS Television Production about Economist Harry S. Dent’s famous forecast. Florida, Illinois, and Minnesota residents are invited to simply call (800) 217-1556 anytime day or night, or email your request to sycamoregr@aol.com with your name, home address and home phone number. No one will call you! If you want to work with me, you will need to initiate the relationship!
All money is placed in some form of an account: bank, mutual fund, brokerage, annuity, bond, and commodity accounts. All accounts can be divided into two categories: safe and not safe. Safe is defined as never losing any money. Not safe is defined as recovery only occurs at a later date. Bank and fixed annuity accounts are examples of safe accounts. Stocks, mutual funds, and variable annuities are examples of not safe accounts.
Years ago in 1995, I went to a seminar presented by Economist Harry S. Dent. There were over a thousand financial planners in the room, waiting for some good news about the stock market. Most economists were forecasting the market would drop into a deep recession and stocks would perform poorly. But, Mr. Dent said otherwise.
What he said was the country was in the greatest stock market boom in history; quite the opposite of everyone else in the industry. Nearly everyone heard about the boom; however, he also said, “The stock market will decline into the next great depression in 2010.” It is likely I was the only financial planner in the room who focused on his words about the depression.
As a new registered representative, just out of securities school, I had been taught clients were to buy and hold mutual funds as a long-term investment. And, I thought people would make a lot of money, only to loss a lot of money after 2009. Obviously, the typical investor did not follow the longstanding rule of “Hold and Hope.”
But, in any case, I decided not to sell mutual funds, even though I am licensed to do so. I reasoned my clients may at some point lose money. If my client lost money, I would feel bad! So, I decided to sell fixed indexed annuities instead. No one loses any money with this product.
Well, here we are! It’s the end of 2009! And, my clients have made and kept every nickel earned over the years. If you added up all of the accounts, it would be over 100 million dollars. When the stock market dropped, none of my clients lost any money! I have earned national recognition! More importantly, everything Harry Dent said in 1995 about the changes in the economy has come true! There’s no debate about his demographical-based forecasting research.
Sometime in 2010, you will pickup the morning newspaper and read the front page headline: “ STOCK MARKET CRASH!” The story will be how the Dow fell 20% at the closing bell and overnight trading indicates massive declines as the stock market opens. Regulators will be controlling trading. At least, that’s what Mr. Dent forecasts. For more information about Harry Dent, you should go to www.hsdent.com and subscribe to his newsletter forecast.
For those interested in a safe account with me, you should request my information kit, including a DVD explaining everything. You will learn it makes sense, and wonder why the government has not warned us? The fact is politicians and financial planners have known of Harry S. Dent research for decades but chose to disregard it for obvious reasons. If I were selling mutual funds today, I would have to tell the client of the high potential of loss; and make few sales!
His 1992 book titled, “The Great Boom Ahead” he showed demographic data indicated an economic boom until 2008, slowing into 2010; then collapsing until 2023. The events of September 11, 2001, caused his early forecasted 41,000 Dow in 2010 to disappear. But, the basic premise of the overall forecast has been proven accurate and published repeatedly in all of his books. History now shows demographics can forecast the national economy.
Demographic economics is the study of birth rates and generational spending patterns. The economy is driven by consumption. The greater the consumption, the better is the economy. In 1995, Dent was speaking of the Baby Boomer spending pattern annually driving up consumption until 2008. But, older individuals consume less. So, the older baby boomers are spending less and less, slowing the economy.
Another example of his accurate forecast appeared in a 2003 special report titled, “Demographic Trend in Real Estate.” The opening paragraph states, “Residential Real Estate – Likely to slow from 2004 to 2005, but not crash until 2011 to 2014.” National Association of REALTORS® acknowledges residential sales and home prices peaked in 2005 and started a decline in 2006. The decline will continue for years! See the report created for my Minnesota project at the left.
Further, on page 17 of the same special report in 2003, he wrote, “Summary Trends for Apartment/Multi-Family Housing: This market should be stronger than residential home sales and prices for the rest of the boom into 2009 and should fare substantially better than general home sales and prices in the downturn from 2010 into 2017. Taking over or building low cost rental properties after 2012 could be a good opportunity in the downturn, as well as buying failing low end housing developments and offering them for rent between 2013 and 2017.”
Then, on page 32 he wrote, “For the downturn from around 2010 to 2023, upper-end residential, office and industrial should see the strongest declines.” The report was written prior to the current banking credit crisis. The real estate market decline has nothing to do with the 2009 unemployment rate. See the Harry Dent Forecast report in my information kit for details.
Harry Dent Forecast (December 1, 2009) www.hsdent.com: “THE TICKING TIME BOMB: There is no way that the U.S. Government can stop the deleveraging (the act of paying off debt) of the greatest credit bubble in modern history. (The over-50 boomer is reducing debt by paying off credit cards and mortgages. Thus, they are not buying things.) In the November 2009 issue, we focused on the Deutsche Bank report on the massive rise in homes underwater (meaning homes worth less than their mortgage). Another good report has come out from T2 Partners (a hedge fund) showing rising defaults beyond subprime and how foreclosures will continue to overwhelm the housing markets and make even lower prices inevitable.
The U. S. government has not addressed the root cause of this crisis, which stems from massive over-lending against residential and commercial real estate and toxic debt securities that are still in the system. Instead they have spent or guaranteed trillions of dollars to keep the financial system afloat, in hopes that the economy will return back to normal slowly. The economy will not return to normal over the next decade, and home prices will not return back to 2006 levels.
Hence, the government’s stimulus plan will fail and the banking crisis will come back even stronger. The government has allowed banks to continue to make toxic loans and investment firms to continue to make highly leveraged investments with high bonuses to incentives. Again, the government treated the symptoms, not the cause, which only puts off the crisis and makes it worse ultimately.”
If you are retired or about to retire, you should seek safety. When ready to learn what to do, call for my information kit. Time is running out!
Wally Mackey, President, RFC, CSA
Master Certification, Harry S. Dent Advisers Network
Sycamore Group, Inc.
(888) 777-8685
Copyrights Reserved, 2010