Agent Registration

Adam J. Moeller - President  

AJM FINANCIAL, LLC

695 S. Colorado Blvd., Ste. 480

Denver, CO 80246

Office: 720.974.4800

Fax: 303.722.7281

adam.J.moeller@hotmail.com

Wednesday
Aug062014

Bond Risks, With Adam Moeller, Denver, Colorado

People often turn to bonds as a safe investment vehicle but they do come with some inherent risks.  One of those risks is liquidity risks, as the bond market is far less liquid than the stock market as there are fewer traders and investors, according to Adam Moeller, a retirement planner in Denver, Colorado.  While government bonds can usually be sold quickly at an efficient price, corporate bonds, especially junk bonds, can be tough to unload.

Adam Moeller, AJM Financial, Denver, ColoradoInflation risk is also associated with bonds and while at the moment, inflation is mild, Moeller cautions it won't be that way forever.  He believes it's the biggest risk associated with bonds.  Lastly, there is the re-investment risk and when the economy slows down, interest rates decline and bond investors face a different problem there.  As their bonds mature, they're forced to re-invest their interest earned and any other principle they get back and securities with a lower rate of return.  This reduces the income being generated by their bond portfolio.

With the current bond bubble, those with a lot invested in bonds are wondering what to do.  Moeller says a lot of that money is flowing into fixed and hybrid annuities, which will perform just like bonds did over the last 5-10 years without the risk.  

Adam Moeller can be reached at 720-974-4800 or at myajmfinancial.com. He spoke with Retirement News Today, providing online retirement video news content.  Retirement News Today is a featured network of Sequence Media Group.

Wednesday
Aug062014

Are Bonds Really a Safe Investment?, With Adam Moeller, Denver, Colorado

Retirees rely on bonds as a safe income vehicle and when interest rates are low, bonds perform very well.  However, there are some inherent risks with bonds and there are many ways they can affect a retiree's portfolio, according to Adam Moeller, retirement planner in Denver, Colorado.  

Adam Moeller, AJM Financial, Denver, ColoradoBonds have long been viewed as a low-risk asset class to create cash flow and most people have a mix of stocks and bonds.  However, these types of products are barely keeping up with inflation and Moeller feels there's a lot of things going on, the big one of which is inflation risk.  Bond prices and interest rates have an inverse relationship, so when one goes up, the other goes down.  In short, your bond will be worth less.  

There is also bond fund risk, which expose investors to a unique set of risks, where individual bonds do not.  Individual bonds are sold with a finite maturity, the date on which the investor gets their principle back and the interest being received stops.  Interest rate fluctuations don't affect investors who hold individual bonds, notes Moeller.  Fixed income security held within a bond fund, however, are designed to mature on a staggered basis, creating a perpetual income stream for investors and the fund manager replaces bonds as they mature. 

Credit risk is a third risk associated with bonds, which is something else clients don't often see.  The yield for bond investments correlates closely with the credit worthiness of the corporation and the government that issues these bonds.  The major credit agencies review the bonds and grade them based on financial stability so investors are compensated for that assumption of risk, Moeller explains.  

Moeller has seen clients lose millions of dollars in bonds and they are often seen as a "safe haven," but they're really not, Moeller says.  

Adam Moeller can be reached at 720-974-4800 or at myajmfinancial.com. He spoke with Retirement News Today, providing online retirement video news content.  Retirement News Today is a featured network of Sequence Media Group.

Wednesday
Aug062014

Obama Administration Endorses Annuities, With Adam Moeller, Denver, Colorado

Annuities are one of the tools that gives Americans a better chance of having a more secure retirement.  In fact, in a recent article in The New York Times, it says annuities are the "official vehicle of the Obama administration," as a lot of high profile people are realizing how important annuities are.  

Ben Bernanke, the Federal Reserve Chairman, at the age of 53, has annuities as two of his largest assets, which "should say something," says Adam Moeller, a retirement planner in Denver, Colorado.  When people are looking for safety and upside, he says there's really nothing better than an annuity.  

Adam Moeller, AJM Financial, Denver, ColoradoThere are a couple of proposed bills, one of which is the S832, or the Lifetime Income Disclosure Act, and the HR2748, or the Retirement Security Needs Lifetime Payout Act, that are coming out as a result of annuities.  "Obama is encouraging workers to annuitize some of their retirement saving," Moeller says, adding that he's going to be providing a 50% tax exclusion for up to $10,000 of a lifetime annuity payment.

With 43% of baby boomers fearing running out of money, most of Moeller's clients care more about the safety of their money than how much they have.  Most people are scared of outliving their money than they are of dying.  Says Moeller, "annuities can provide a guaranteed lifetime income stream while keeping your principle safe, which is what people want."   

Adam Moeller can be reached at 720-974-4800 or at myajmfinancial.com. He spoke with Retirement News Today, providing online retirement video news content.  Retirement News Today is a featured network of Sequence Media Group.

Tuesday
Aug052014

Annuities Gaining in Popularity, With Adam Moeller, Denver, Colorado

Long criticized by those in the equity field, annuities are gaining in popularity.  Adam Moeller, a retirement planner and former stock broker, says he didn't understand annuities and was taught to criticize them.  Now that he does understand them and the value they bring to clients, he can understand why they're up, rising 11% in the first quarter of 2014, compared to the first quarter of 2013.  

Annuity sales are driven largely by fixed annuity sales and hyrid annuity sales, according to Moeller, both of which totaled almost $12 million.  When you look around and see what's available for investors, there's not a lot of good options, Moeller says.  The national average on a CD is 1%, the stock market is at all-time highs and there's been more money going out of the bond market than ever and all of these numbers will continue to increase.  

Adam Moeller, Denver, ColoradoThe reason these numbers are up and the annuities are down is because the products have changed where a lot of money can be made with no risk to principle, Moeller says.  There are a lot of benefits that have been added, including the death benefit and long-term care benefits.  He says it's important to be sure you're with the right advisor that has all of the companies available to them.  Annuities are a "great product where you can keep your money safe," he says.

Adam Moeller can be reached at 720-974-4800 or at myajmfinancial.com. He spoke with Retirement News Today, providing online retirement video news content.  Retirement News Today is a featured network of Sequence Media Group.

Wednesday
Jul232014

Using a Financial Planner Can Increase Retirement Income By 23%, With Adam Moeller, Denver, Colorado

A new Morningstar analysis finds that those working with a financial planner see 23% more in their retirement income.  There really hasn't been a way to "value" what financial planners do for people until now and David Blanchett, head of Retirement Research for Morningstar, came up with five different planning techniques for financial planners to use and see what type of value it produces.

Adam Moeller, AJM FinancialOf these five techniques, total asset allocation, a dynamic withdrawal strategy, annuity allocation, tax planning and lialibity-related optimization, the top two were dynamic withdrawal strategy and asset allocation.  Adam Moeller, a financial planner out of Denver, Colorado, says that those top two factors are important to look at when trying to get that extra 23% of income.

With those two techniques, Moeller says you'd have to be working with someone who understands those concepts in trying to attain that extra 23%.  The withdrawal strategy accounts for 9% of that 23%, so Moeller says that working with an advisor who knows how to successfully take out more income is important and is something a lot of advisors don't know how to do.  He adds that there's a big difference between the asset growing phase and distribution phase and it's the distribution phase that Moeller focuses on with his clients. 

The analysis also looks at the costs associated with working with financial advisors, many of whom will charge at least 1%.  Moeller says that working with an independent advisor, like himself, who receives payment from the company he works for instead of from the client, is a huge benefit for the client. 

Adam Moeller can be reached at 720-974-4800 or at myajmfinancial.com. He spoke with Retirement News Today, providing online retirement video news content.  Retirement News Today is a featured network of Sequence Media Group.