Failure of The Investment Banks, Brokerage Houses

There is a shift on the balance of power, as in context. the real question is how tarnished is the trust on major financial institutions? we read it everyday, bail out money, toxic securities and the end is not in sight. The shift is going towards the independent platforms and independent model which is in ascendancy right now. What does this means to you? Well, as an economist I learn to always say, "it depends". It depends on your long term resolve. As a society we are accustomed to fast returns, high returns for what we do. Remember the housing market, some bought at the height of the bubble and are now paying for it. Why, because everyone else was doing it; and try to get into it and follow the masses, too late, it is like chasing the stock market, buying and selling at the right times, not even the so call experts can steadily do it. My vision is contrary to follow the masses as we would feel safer with vast numbers doing the same thing, my vision and our meme are steady rate of returns for the long haul. Our meme is the elephant which epitomizes a steady solid culture that will get you there safe and sound, thus our Logo. As an independent, which was my choice from the beginning of this career, I am so glad otherwise I would of being with Smith Barney, Merrill Lynch, it allows me to help my clients to get their best return and look for their interests and life goals. Thank you for choosing us, as we travel a roller coaster in the financial markets. I am happy to say that all my clients are feeling safe, happy and glad they have trusted us with their long term goals, we will be here in this bear market and await the bull market. One thing is for certain, we proactively seek solutions and follow patterns that work, for those who listened and believed in us before the market crash can attest to that. Let us look forward to this vision and prepare for the unexpected. Let us not follow the masses as they follow and could end up facing a cliff at the end. I rather be on the highest point of self-actualization as per Abe Maslow teachings.

Sincerely,
Hannibal Chinchilla
Principal
Barca Financial Group

Sunday is always my favorite after Fridays

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Hannibal

A New Way of Retirement Thinking Part 1

Well, it is not too new it just makes more sense finally. Everyone has seen the turmoil in the financial markets; America has not been able to save to live within its means, and remains spending taxpayer’s dollars at random to bail out ailing corporations. As an economist I believe in there is no free lunch. Someone has to pay for something. The TARF and stimulus money will have to come due someday. It is like mortgaging a house; it has to be paid off. The taxpayers will have to do that, at what cost? Social Security will be in trouble if it is not readjusted. The Fed secretary recommended a constriction on spending. The sad part is that we have to take it as bad medicine, and it usually tastes very bad. Will it cure us? Probably not. It is all assumptions; even the Monte Carlo model of calculating probabilities which are very accurate had failed. Yes that means the modeling for your retirement models have failed and will fail. This will be witnessed for years to come. A solution would be to do your own retirement. The problem is that many do of the public do not know how; here is where we come in. We had helped many successful clients who did not feel the market drop last year; they are sleeping well and happy to have maintained assets and use leverage for their retirement income. We plan for retirement which ultimately is translated into income streams for retirees. Lately we hear that, you have to stay at work for 3-7 years longer; not a nice thing to say to a client. Stay the course; this one always makes me tense up, because the market cycles have change. It may not be enough time to regain what it has been lost, especially at the later years before retirement. Still we have solutions to re-engineered portfolios, for those willing to listen. The good news is that if you have at least 10 years before a proposed retirement date, we can help. Imagine a strategy that you do not have to pay taxes when you draw your money, imagine a strategy that gives you triple interest rate of return. Some may be thinking now, what is that? Well simply, interest gain on the market, interest on the interest and the interest you do not have to pay on taxes. Wow that is sweet. Knowledge is power as long as you know how to use it. We can help. For more information on solutions contact us at 429-5193 or email me at hannibal@barcafinancial.com. It is for real.

What can Non-profits do to survive and thrive in this economic drought

We can agree that these are some tough times, resources and capital is tight, as economic stimulus trickle back into the economy, the non-profits will feel the pinch. nonprofits will need to assess their position and performance and plan accordingly. I would recommend this seven step- strategic reevaluation to optimize opportunities during these tough times:
1. Analyze market trends and what the markets need.
2. Organizational footprint, starting with the board of directors to tap into strategic processes, knowledge and resources to address opportunities in the markets.
3. Develop an strategic plan; what is the main sources, what is the organization's best activities.
4. Not just develop the strategic plan but also implemented and stick to it.
5. Analyze opportunities, connect with them and be proactive in delivering the mission statement and message to the masses.
6. Evaluate each opportunity with pros and cons, develop an after action report to analyze new opportunities and miss opportunities.
7. Improve and keep improving, be relentless. Action creates reaction

For more information contact me

Hannibal Chinchilla
Barca Financial Group

Lowering Fixed Costs

Barca Financial has been lowering commercial liability for business owners. The market is very competitive lately. In one instance, we were able to save up to 66% on a liability policy. That is 1/3 of what they were paying, increasing their coverage and making more affordable during these tough times. Contact us to learn more or visit our website for a no obligation quote:
www.barcafinancial.com

Financial Times

We have been witness of a volatile market crises, which started with the housing market, credit market and lately the banking crises. It is a three punch impact that started in 2007. I have seen many friends in corporate lose their jobs lately; friends taking jobs they are over-qualified for for less money to make ends meet. These are tough times, we can feel them in some way or another. Inflation is on the rise; a concerning fact is the government spending on companies that over-extend themselves; the aid received by some have created an intangible sense of security for some making buy other companies that have too much debt and toxic assets. Even banks are not excluded from these behaviours. Lately a Bank for banks has been liquidated. Many smaller banks will follow. This is a sign of times that will last quite a while. Our culture of over spending on credit and extending our means will suffer and have to be dealt with. I could see this happening upon coming to a robust, bull market. I am blessed to be a conservative investor. I believe in being one's own bank and diversified not only in the stock market but in tangible holdings. Always sell high and buy low. In a bear market, cash is king for those who have it. Even though the sense of fear instill by the public media has a greater impact and affect the consumer confidence; this freezes commerce, entrepreneurship and financial well being. Many over spenders will have to work longer. Generations X'ers and Y'ers will have to realign goals as many government programs will not be there for them. As a nation our financial strength will decrease in a way of a weaker dollar. Our only positive productive industry: Exports will suffer in a global market. New player will emerge and dictate how we do business in the future. Free trade and global competition will be fierce. Our efforts for job creating will be challenged by our socialism changes. Capitalism have endured and always have come on top. This time around we will be restricted on production, earnings as we will pay higher taxes. My only recommendation at the present time is to budget, restrict expenses and hold on for a wild ride. It will be a few years until we would feel relieve. Do your homework and prioritize what it is really important, not only for now but for the future of our children. So far it looks very bleak.