NEWSLETTER
From
DAVID PRESTON INSURANCE
August 2010
INVESTMENTS:
STOCKS:
The terms “stock” or “share” both refer to a fractional interest in a corporation. As “owners,” stockholders vote for the company’s Board of Directors, and receive information on the firm’s activities and business results. Stockholders may share in current profits through “dividends” declared by the firm’s Board.
When a corporate business is first organized, investors contribute money to fund the enterprise, and in return receive shares of stock representing their ownership in the company. If the business is successful, it will grow and have increasing profits, and the shares generally become more valuable. If the business is not successful, the value of the shares usually declines.
A: Uses: Investors typically buy and hold stock for its long-term growth potential. Stocks with a history of regular dividends are often held for both income and growth.
B: Risks: As the long-term growth of a company cannot be predicted, the short-term market value of the company’s stock will fluctuate up and down. If need or fear cause an investor to see when the market is “down”, a capital loss will result. If the market is “up” the investor will realize a capital gain.
Not all stocks rise at the same time and not all stocks decline at the same time. The investor should be aware of general movements and try to pick stocks that have upward potential.
A GOOD BUSINESS TO KNOW:
There are many good businesses in Amarillo, TX. We are happy when we can recommend a business to our customers. DOUBLE D ROOFING, INC. is one of those businesses. DOUBLE D ROOFING, INC. is located at 6323 S. Western St, Amarillo, TX 79110 (in the Western Business Park). Next time you need a roof or estimate on roof repairs, be sure to include Double D. Roofing, Inc. in the companies that you contact.
QUOTE:
“ If we ever forget that we’re one nation under God, then we will be a nation gone under.”
Ronald Reagan
One of the requirements for a Representative Republic (the kind of government in the USA) is a people with a higher degree of morality.
We MUST elect moral men and women and demand that they keep the best interest of the nation ahead of their own interest. Remember this when we go to the polls to vote in November.
AN OVERLOOKED TYPE OF PROTECTION:
Protection from lawsuits is often overlooked and often needed. Have you ever signed a contract and later found that it did not say exactly what you thought it said? Have you ever been threatened with a lawsuit and given in because you didn’t have the funds to hire a lawyer? Do you wish that you had a will, but could not afford to have one made? Have you ever wished that you could have a lawyer read a document and advise you, but didn’t have the money? Have you ever gone to a lawyer, hired him, and later found that he knew little about the subject you had hired him for? We have all, at one time or another, wished that we had some type of legal advice or representation. You CAN afford it if you can afford about $17.00 per month. Pre-Paid Legal allows you buy this type of protection. Pre-Paid Legal allows you to have a lawyer on retainer and at your disposal. For about $17.00 per month you can have your will drawn or updated, call for help fighting traffic tickets, have a document reviewed, and a multitude of other legal needs. When you call, Pre-Paid Legal directs you to an attorney that is trained to answer your questions and assist with your special problem. I have had Pre-Paid Legal for about twenty years and find it very comforting. If you would like to know more about Pre-Paid Legal, call my office 359-4498 or call Bob Patrick at (806) 336-4850.
WHO WAS JUAN SEGUIN?
We know about William B. Travis, Davy Crockett, and Stephen F. Austin, but do you know the part that Juan Seguin played in the development of Texas?
Juan Seguin’s ancestor came to the “new world” in 1654, at the age of 13, from of all places, Paris, France. Juan’s father, Erasmo Seguin, was an influential person in Texas and helped Stephen F. Austin obtain permission from Spain to bring settlers to Texas.
Juan Seguin was born in 1806. By 1836, he had established himself in politics and as a cattle rancher. By age 30 he was the mayor of San Antonio. He was popular with both the Mexican citizens and the Anglo settlers. Juan Seguin and most of the Mexican settlers were developing a growing discontent with the brutal dictator of Mexico, Santa Anna.
When the Alamo came under siege and the defenders seemed doomed, they sent a rider to Stephen F. Austin to ask for reinforcements. Juan Sequin was selected as that rider because of the trust that they had for him and they knew of his political value in the future.
After the revolution, Juan Seguin resumed his political career and served as a state Senator from 1837 to 1840. Seguin, Texas is named for this patriot.
QUOTE:
“Those people who will not be governed by God will be ruled by tyrants.”
William Penn
NEWSLETTER
From
DAVID PRESTON INSURANCE
April 2010
INVESTMENTS:
Remember—This year we are going to be talking about various investments. In the February newsletter, I covered investment options at the bank such as savings accounts and Certificates of Deposit (CDs). In this newsletter we will talk about investments provided only by insurance companies.
The FOUNDATION. The foundation is the basis, or the beginning for accumulating money and it consists of investments in the following items: Savings Accounts, Certificates of Deposits, Life Insurance Policy Cash Values, Fixed Annuities, T-Bills, and Money Market Funds.
Traditional Life Insurance (Cash Values). Life insurance comes in two basic forms—term life (has no cash values) and permanent life insurance (has cash values). Term life insurance is less expensive to initially buy, but it runs out and it may run out before you die. Permanent life insurance comes in three basic forms- whole life, universal life, and variable life. Whole life is the most secure and is usually designed to produce the higher cash values. Why are the cash values of a life policy considered an investment, since the cash values actually belong to the insurance company? They are considered a savings or investment because (1) you may borrow them from the company with no questions asked, and (2) if you decide that you no longer need the insurance, you can surrender your policy and take the cash value. Cash Values are a “fall back” emergency source of cash. Often people completely forget about the cash values until a real emergency hits them –and shabam—there is a pot of money that can come to the rescue. If it were not for the cash values of life insurance, there would be no J.C. Penney Company today. Mr. Penney had bought substantial amounts of cash value life insurance when his business was prospering. Then, the stock market crash of 1929 hit. Mr. Penney lost $40 million dollars and his company was deeply in debt. Because Mr. Penney had owned and put money into cash value life insurance, he was able to access those funds and restore his business to good financial health. We know what the J.C. Penney Company is today. Life insurance can fulfill two objectives. It can provide the protection you need and it can provide a source of money for an emergency. When buying life insurance, you should always have a discussion with a professional life agent who can describe all of your options and help you choose a policy that will suit your needs and fit your budget.
Page 2
Fixed Annuities are another good way to save money. Annuities are contracts issued by insurance companies that state the conditions of how much money you can put in and when and how you can take the money out. They must be used wisely. Annuities have some unusual features such as surrender charges, early withdrawal penalties, etc. When you buy an annuity you usually agree to put your money away for a certain number of years and you may receive an interest rate guarantee for that time period. When money is taken out of an annuity, the first dollars out are considered as interest earnings and taxable. If money is taken out prior to age 59 ½ there is an additional penalty just like an IRA.
Why are life insurance cash values and fixed annuities good investments? It is because they are SAFE. The cash values and growth are backed up by US Government Bonds. Insurance companies deal in “promises” and you can’t back up promises with something as volatile as stocks or real estate.
As you plan to start accumulating money, get that checking and savings account opened at your bank. Then buy as much cash value life insurance as you can afford. After you have done these two things you will be ready to put any additional money into what we will cover next.
If you would like more information on this topic, feel free to call me. I don’t charge a thing to answer your questions.
I DELAYED:
I had delayed in finishing this newsletter because I was truly hoping that the healthcare reform bill would be defeated. As you know, several states are contesting the constitutionality of the legislation in the courts. Others are preparing nullification proceedings which will nullify certain portions or the entire bill.
No one denies that we need reform in the healthcare delivery system, but when the federal government gets into it, they seldom get it right. If you have internet access, go to my website, www.davidprestoninsurance.com and look under “Newsletter”. I have all of my newsletters posted there for the last year. Read the August and April newsletters and see what I had to say about healthcare reform. If you don’t have internet access, just call me and I will mail those newsletters to you.
Page 3
Coming in JUNE 2010:
BIG CHANGES TO MEDICARE PROGRAMS. Medicare supplement insurance programs are going to be changed. Some of the standard plans will be dropped and other will be enhanced. Medicare Advantage plans are being dropped altogether. If you, or your relatives have Medicare Advantage plans, ask them to call me. I have some of the lowest rates available in Texas for the standard supplement insurance policies.
WHAT DO I SEE?
I see a country that has benefited people from all over the earth. It has welcomed people to come here, worship in freedom and safety, and seek their fortunes. It has allowed them to live with more freedoms and prosperity than any other people in history. Most of these people have added to the richness of the culture and the country. We have all benefited from their hard work, their ideas, and their dreams.
I, also, see a country that is being demolished and soon may no longer offer those benefits. This country may soon be the country where people no longer want to come, but instead want to leave. If that time comes, where will they go?
What has happened or is happening to make such a change? There are several things. First, the people are losing their religions and turning away from God. Yes, we have the freedom to not worship, but this country was built on the idea that religion would keep us with sufficient morals that we could govern ourselves. Certain individuals and groups have worked their plans to help destroy religion in the USA. Why would someone do that? I’ll answer that question later.
The second thing that has happened is that the people are forgetting their heritage. Our school systems are teaching theories as truths and the history lessons are filled with falsehoods. Our children, for at least the last twenty years, have been taught lies. Some school districts do not want to teach American history prior to the Civil War. That leaves out a whole lot of who an American is and what he stands for. Not only are native born children not being taught the truth, but neither are immigrants.
Page 4
The third thing that is happening is that our personal pride and self-sufficiency is being destroyed. People came to the USA with the dream that if they worked hard, they could succeed and prosper. That idea is being replaced by the idea that “Let the government take care of you and give you things free. You do not have to work”. Why would anyone who is capable of working want a hand-out? When you have no pride, you have very low morals. Why are people doing this? I’ll give you the answer in a moment.
These three problems did not happen to us by accident. They are part of a great plan. The plan was put together and executed by the WOLVES. You see the people fall into three general categories, sheep, wolves, and sheep-dogs. The sheep are the general population who want to carry on their business and not be overly concerned about what is happening around them. They want to take care of their business and enjoy their families. They want to trust others to do what is right. If the sheep have no religion to help them through difficult times and if they don’t know their heritage, they won’t have the knowledge to resist and contradict the lies that the wolves tell them. The WOLVES are the ones who will prey upon the sheep. They will deceive them, take from them, kill them, and enslave them. The wolves are evil. The sheep-dog is the protector of the sheep. The sheep-dog is willing to fight off the wolves. Sheep-dogs are law enforcement, military, and others willing to fight and protect.
The wolves have been developing their plans for nearly 100years. They have wanted to get past the sheep-dogs and control all of the sheep. The wolves in this instance are people who believe that socialistic and communistic governments are better than the free-enterprise system and small government that was created in the USA. The wolves are in many forms. They are politicians. They are in women’s organizations such as National Organization for Women. They are in gay and lesbian movements. They are in many of our schools. They are in our print and television media. Some are even in our church pulpits. Right now, I believe that we have wolves in the White House.
At first I thought that the wolves were just seeking a system of government that has always failed. There has not been, in all of history, a single socialistic or communistic government that has succeeded. It didn’t work in Germany. It didn’t work in Russia. It didn’t work in Italy. It didn’t work in Cuba. It didn’t work in China. Today, we have Portugal, Italy, Ireland, Greece, and Spain that are all very near financial collapse. The USA is, also, near financial collapse. They are all near failure for the same reasons. Those reasons
Page 5
are that they all have massive welfare and give away programs that are bankrupting the country. They have all taken away the desire and incentives for their people to work. The people have become lazy and look for hand-outs. They want someone else to care for them.
If the wolves know that these socialistic programs and ideas are bound to fail, why do they want to pursue them? It is because the faster they can make them fail, the faster they can make the people look to the government for the answers and the faster the wolves can have complete control over the people (sheep). It is ALL about the WOLVES CONTROLLING THE SHEEP.
Who were the wolves of history? Here are a few of them. Adolph Hitler of Germany. Joseph Stalin of Russia. Fidel Castro of Cuba. Mao Se Dong of China. Hugo Chavez of Venezuela. Benito Mussolini of Italy. What did the wolves do as they gained power? Every single one of them murdered people (sheep) by the hundreds of thousands and even millions.
It is up to each one of us as to what happens next. Will YOU be a sheep or sheep-dog? We either start fighting the wolves right now, or we face the end of the USA as we know it.
If you want to make any comments or ask a question abut this newsletter, call me at 806-359-4498
QUOTE:
“ If you think health care is expensive now, wait until you see what it costs when it’s free.”
P.J. O’Rourke
Give yourself a raise. Support the FairTax. Go to www.fairtax.org or call me for
details.
This newsletter is provided for your information by:
David Preston Insurance
5410 S. Bell, Bldg. B, suite 401
Amarillo, TX 79109-6222
Phone 806-359-4498
davidpreston@amaonline.com
VISIT OUR WEBSITE www.davidprestoninsurance.com
NEWSLETTER
From
DAVID PRESTON INSURANCE
February 2009
WOW: As I start this newsletter and look at the date, it is difficult to believe that this is 2010 already. It seems a short time ago that it was 1999 and we were worrying about the effects of the year 2000 on our computers, etc. Remember the Y2K worries.
I hope that each of you had a Merry Christmas and a Happy New Year.
This year I am going to tell you about some investments (explain them to you). It will not make you an authority, but it will give you basic information that will help you understand some of the options available to you. The more you understand about investments, the better choices you can make regarding your money.
Each investment has specific advantages and disadvantages. They have benefits and risks. Knowing what these are will enable you to say whether or not you like that investment and whether or not you think it will be good for you.
BANK ACCOUNTS:
Bank accounts are usually in two different formats. Bank checking accounts are for keeping track of your month to month expenditures. Checking accounts give you written proof that you have paid for something and a record for you to see where you have spent your money. Have you ever got to the end of the month and wondered “Where did all of my money go”? With a checking account you have a written record of where you spent your money. Checking accounts require a couple of simple skills. First, you must record or write down in the check register to whom and for what amount you wrote each check. Next, you must accurately deduct the check from your balance. Adding deposits and subtracting checks correctly are essential. If you make a mistake and write a check when there is not enough money in your account, the bank will return the check and charge you a fee.
Learning to manage a checking account can save you a lot of money. You can mail payments such as car payments, house payments, rent, utilities, etc., rather than personally going by the place. This saves you on time, gasoline, and the expense of buying money orders. Also, having a good record at the bank shows a certain amount of financial responsibility.
Bank Savings Accounts are good places to save money for short periods of time. If you know that you want to buy a new TV or refrigerator soon, a savings account is a good place to put your money. Savings accounts earn interest, they are easily accessible, and there is no risk to putting your money in there. Savings accounts may or may not have early withdrawal charges, so ask the bank about that. Savings accounts, also, show a certain amount of good character and responsibility. The most important thing about bank accounts, is to always have your accounts in good standing. Having a good relationship with a bank can be very useful when you need to borrow money. Bank Savings accounts are good for savings for things that you want to buy in a year or two years. They are good for “emergency money” or “rainy day money”. It is always good to have some money set aside in case the car breaks down, or you lose your job. How much should you have saved in this type of an account? Most experts think that from 3 to 6 months of income should be held in this type of account.
If you have a budget established that is GREAT. If you don’t have a budget, call my office and I will send you a blank budget form that you can use to set up your own budget. If you have any questions call me at 359-4498.
Bank C.D,s (Certificates of Deposits). These account are a form of savings and investing. Usually, the amounts required are $500 or more (but check with your bank). What you are actually doing when you purchase a CD is you are making the bank a loan. The Certificate of Deposit (paper) that they give acknowledges that you have loaned the bank some money, they agree to pay you interest, and it states the maturity date (the date they have to pay you back). You can either reinvest or take your money elsewhere when the CD matures. Advantage: All bank accounts have a very minimal risk (about as close to zero risk as you can get). Disadvantage: Bank accounts usually pay lower interest rates.
USEFUL STUFF:
Things to keep on your cell phone.
- What to do if you should be signaled to stop by an unmarked patrol car? First of all DO NOT STOP. Indicate that you intend to pull over and then drive to a well-lighted area where there are people (convenience store parking lot). If you are on the highway, slow down, but continue to drive. While doing so, call this number (*77). This number connects you immediately to a State Trooper, you can ask them if there is an unmarked patrol car in the area. I list this number on my cell phone as “A Trooper”. That makes it near the top of my list.
- Do you need a weather report for the Amarillo area? Call 806-331-9899. I list this number on my phone as “A Weather” for the same reason. It is useful is you have been visiting out of town and need to know what you may be driving into.
- How about when you need to report something suspicious that is happening or something that will assist police? Call Crime Stoppers 806-374-4400. I list this as “A Crime Stopper”. Don’t call 911 unless it is an emergency.
Give yourself a raise. Support the FairTax. Go to www.fairtax.org or call me for details.
This newsletter is provided for your information by:
David Preston Insurance
5410 S. Bell, Bldg. B, suite 401
Amarillo, TX 79109-6222
Phone 806-359-4498
davidpreston@amaonline.com
VISIT OUR WEBSITE: www.davidprestoninsurance.com
NEWSLETTER
From
DAVID PRESTON INSURANCE
December 2009
WHAT DOES YOU HOME INSURANCE POLICY COVER?
The homeowner’s insurance policy usually covers the following Items:
Dwelling: Covered with “named peril” or “open peril” coverage.
Named perils are:
- fire and lightening,
- sudden and accidental damage from smoke,
- windstorm, hurricane, and hail,
- explosion,
- aircraft and vehicles,
- vandalism and malicious mischief,
- riot and civil commotion,
- theft,
- sudden and accidental discharge, eruption, overflow or release of water or steam,
- fall of trees or limbs,
- objects falling from the weight of ice, snow or sleet,
- collapse of building or any part of the building.
Note: Some policies do not include # 9 and it must be purchased separately. You should review your policy for coverages.
Other Structures: Storage buildings, detached garages, fences, etc.
Personal Property: Contents such as clothing, appliances, and furniture.
Liability: In case someone files a lawsuit against you.
Medical Payments to Others: If someone other than a family member is injured on your property, it will pay the stated amount for their medical treatment.
Loss of Use: If you are required to move out of your home as a result of covered damage, some of your living expenses can be reimbursed.
Personal Property off Premises: If you must store some of yourpersonal property in a storage facility, it is usually covered up to 1/10th of the amount that it is covered in your home.
What is not covered? Damage from floods. Sewer lines, gas lines, plumbing, repair of appliances. These items are generally maintenance items. If they must be replaced as a result of some type of event such as storm you may need to file a claim. Flood insurance may be purchased separately and you should have it if you live in a low lying area or a flood plain. Damage that occurred prior to the time the insurance took effect. (This is the importance of having a good home inspection done prior to purchasing a home).
continued
SOCIAL SECURITY:
Social Security came into being in the 1930’s as a result of the stock market crash of 1929 and the Great Depression. These two events wiped out the life savings of many people. There were many promises made about Social Security (in order to get the people to agree to it) and most of them have been broken by the politicians. However, the premise was that Social Security was supposed to “put a floor”, a minimum benefit level of income so that people who had lost everything or been unable to accumulate retirement assets, would at least have enough income to keep from starving. This was not a bad idea.
What happened was this. Politicians (just like the politicians today) wanted to spend every dime they could find. They thought that there would always be 5-6 workers for every retired person, so the number of people putting money into the fund would always be greater than those taking money out of the fund. As a result, the politicians convinced themselves that it would be OK to spend all that money rather than save it—after all it would always be growing. But that is not what has happened. People started having fewer children (less people putting money in). Old people started living longer (more people taking money out for longer periods of time). The Social Security funds started shrinking at a very fast rate. Today, there are barely 2 people working to support each retired person. Soon there will be one working person to support one retired person—guess what the Social Security tax rate will be when that happens? The workers will revolt because they simply cannot earn enough to support all of the retired people.
Politicians have been “talking” about this problem for the last 30 years, but they have been afraid to do anything about it. If nothing is done, in a few short years the government will not be taking in enough money to pay Social Security benefits.
Three things need to be done to save Social Security. (1) Congress needs to quit spending the money that is paid into Social Security for other things. (2) Social Security needs to revamp who is eligible (wealthy people should have reduced or no benefits and illegal immigrants should not be receiving benefits). (3) The United States needs to replace the income tax with the Fair Tax (the additional income from the Fair Tax might be enough to save Social Security). You need to learn about the Fair Tax—go to www.fairtax.org.
continued
YOUR RETIREMENT:
Now that you can see the problems that must be solved in order for Social Security to continue, I will ask you “What do you think your chances are of receiving enough from Social Security to retire on”?
In order to have a successful and happy retirement, you will need to save some money for yourself. You should start NOW to establish a saving plan for retirement. This will be money that you never spend—except in retirement. You don’t spend it for a child’s education, you don’t buy a new car with it, you SAVE it. Remember the savings story in the last newsletter about the man who saved his change, rolled up the coins, and took them to bank. You do the same thing here. You start small, just a few dollars per month or paycheck. After a while, that small savings will become a large sum of money.
There are two ways of earning money. First, you earn money through your labor. Second, you put money to work for you earning interest. The sooner that you can get money working for you, the faster you will accumulate money/assets.
I can help you find a way to start saving money and I have some financial products that will help you get money working for you. Give me a call and we can talk. You are under no obligation.
QUOTE:
“I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them.”
Thomas Jefferson
“The democracy will cease to exist when you take away from those who are willing to work and give it to those who would not.”
Thomas Jefferson
It is amazing how clearly our founding fathers could think and express themselves.
HOW TO MAKE THE COMING YEAR A BETTER ONE:
None of us know what the New Year will hold for us. There are many uncertainties that we must face as individuals and as a nation. However, there are some things that we can control.
Control Yourself. You can control your attitude and resolve to be as happy as possible. You can control your spending. There is gratification in saving money and in being strong enough to resist impulse buying. You can resolve to be honest and ethical with everyone you meet. Knowing that you have done your best in your work, for your family, and for your community will give you internal happiness and a good feeling.
If someone is dishonest with you or you feel that you have been wronged, pray for that person. Pray for our country. Pray for those that need help. Praying for others is a very unselfish act and when we can be unselfish and generous, we feel better.
Have you heard of “the random act of kindness”? This is when you do some act of kindness (big or small does not matter) for someone. It could be as simple as helping an older person change a light-bulb. It could be as simple as buying a stranger a cup of coffee. Little things make a difference in the world we live in, but more importantly they make a difference in us.
I hope that you have a great 2010 and that the holidays and new year bring you happiness and many blessings.
Give yourself a raise. Support the FairTax. Go to www.fairtax.org or call me for details.
This newsletter is provided for your information by:
David Preston Insurance
5410 S. Bell, Bldg. B, suite 401
Amarillo, TX 79109-6222
Phone 806-359-4498
davidpreston@amaonline.com
VISIT OUR WEBSITEwww.davidprestoninsurance.com
NEWSLETTER
From
DAVID PRESTON INSURANCE
October 2009
WHEN DO YOU HIRE A LAWYER?
Easy answer—You hire a lawyer when all else has failed. Of course there are many times when he need a lawyer (for wills, to look over legal contract before we sign them, and just for advice in matters), but when it comes down to filing a lawsuit, it should be only after all else has failed. When there is a disagreement, you should use your best persuasion to convince the other party that your position is the right or fair one. If you have tried everything else and you still feel you were wronged, it is time to evaluate. Is it worth filing a lawsuit? What are your chances of winning? How long will it take to get settled? If you feel it is worth the effort, go hire the best attorney that you can afford.
LAPSED AUTO POLICIES
Lapsed auto policies cost you money. Even a policy had has been lapsed for 2-3 days can cost you 10% more in premium. A policy that has been lapsed for 30 days can cost you up to 25% more in premium. NEVER let a policy lapse. Always have a new policy starting on the same day that the old policy stops so that there is no gap in coverage. When insurance companies see gaps in coverage they know that you are breaking the law by driving without insurance. If you were selling insurance, would you want to insure people who knowingly break the law? Uninsured drivers (about one of every five cars on the road is uninsured) cost us all a lot of money. If you have an accident with an uninsured driver, YOUR insurance policy has to pay the repairs and damages. Your insurance rates and mine go up. The best thing that all of us can do is keep our vehicles properly insured. After all, it is the law.
NEW LAWS IN TEXAS:
Effective 9/01/2009, ALL passengers in motor vehicles must wear seat belts.
Drivers must use hands-free devices when talking on a cell phone while driving in school zones. Children of certain ages must use booster seats (check this one out)
NEW BUSINESS
Back in February 2009 I mentioned ENDURANCE AUTO PARTS at 6601 Canyon Drive. Now, in addition to selling high quality auto parts, Endurance Auto Parts is doing minor mechanic work. They do oil changes, brake work, muffler replacements, and minor dune-ups. Go by and check them out. Let them give you an estimate on your repairs—could save you some money.
QUOTE
“The real destroyer of the liberties of the people is he who spreads among them bounties, donations, and benefits.”
Plutarch (circa 45-125 A.D.)
A REAL STORY
Back in November 2008, a young American man of Mexican descent came by my office selling burritos and tacos. I asked him to sit down for a moment because I wanted to find out more about him. As we talked, I learned that his father died when he was very young (he was now 19 yrs old) and left his widowed mother to rear 3 young children by herself. The young widow had told the children “We will be OK. We work hard and we are honest. We will be OK.” She started working two jobs and as soon as the children were able to help—they did. This young man went on to tell me that his grandmother had come to the United States and that she had got on EVERY welfare program that she could qualify to be on. Then as her children became older she helped them to get on all the same welfare programs. All of them did except this young man’s mother. I asked the young man “Who has the highest standard of living in your family?” He replied that his mother and her children did. I said your mother, who works two jobs has a better standard of living than her relatives? He replied “YES”. This woman, who chose to work and do her best to get her share of the American dream, was doing much better financially than her relatives who chose to take welfare. She had the freedom to work, to achieve, and to excel in life. She chose not to be weighed down by the limitations put on a person by the government welfare programs. Now read again the quote from Plutarch.
We live in a great country and people from all over the world want to come here. You do not see people rushing to leave the United States. Tell those that want to change the country to back off and leave it alone, or it may one day be a place that we do want to escape from.
EMAIL
If you are receiving this newsletter by regular mail, it is because I do not have an email address for you . Please send me your email address if you have one. Simply send me and email to davidpreston@amaonline.com. I will then be able to send email communications to you and save postage.
CAUTION:
Be cautious about giving information to Census Workers. Census workers will be asking the following questions.
- Verifying the address.
- Determining the number of people living there.
- Verifying age, gender, etc.
Census Workers do not ask for your Social Security numbers, credit card info, or banking information, and they don’t contact you by email. Census Workers will have badges and identification. Do not let anyone into your home that you do not know or have reservations about.
CONSTITUTION OF THE UNITED STATES OF AMERICA:
I have been sending out small sections of the Constitution of the United States so that customers and friends could read it. These have been sent to all customers who have email addresses only. I will gladly print and mail them to customers who do not have email addresses if you will just call my office and request that I send them. Also, if you have an email address, but have not been receiving these, call me and make sure that I get your email address. I feel that these are important for two reasons. First as a citizen, you need to know what your rights are. Secondly, you need to help keep an eye on our government and challenge them when you think they have exceeded their authority.
NEWSLETTER
From
DAVID PRESTON INSURANCE
August 2009
HEALTH INSURANCE:
Back in the April Newsletter, I wrote and warned you that if the Federal Government took over our health care system, EVERYONE would pay for it and your choices in a lot of matters would be taken away. Did you ever think of this? Smoking, drinking, overeating, not exercising, sky-diving, rodeo riding, racing, riding motorcycles, and sports, all can have an impact on your health. They can cause you to have to see a doctor or hospital and that will impact the healthcare system. If the government controls the healthcare system, the government can then tell you what to do in these areas. Can you imagine that the government tells you what kind of food to eat, which sports you can play, and other activities that you may participate in? Government sponsored healthcare is not about providing you with good healthcare. The government DOES NOT CARE what kind of healthcare you have or even if you have any healthcare. What the government cares about is CONTROL OVER YOU. You need to oppose government healthcare and write your congressmen. If you don’t, one day, you will find out that what David said was true, but it will be too late.
USEFUL INFORMATION
You should always wash the tops of canned drinks before drinking from them. Failing to do so could make you sick. The cans are often stored in warehouses and mice and rats can crawl around on them. The mice and rats often leave their urine and feces that can cause Leptospirosis.
QUOTE:
In 1913, President Woodrow Wilson approved the Federal Reserve Act. A few years later he said;
“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world—no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.”
Continued
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QUOTE:
Do you remember the founding father who said “Give me liberty or give me death”? Well here is another great statement that he said.
“The Constitution is not an instrument for the government to restrain the people, it is an instrument for the people to restrain the government – lest it (the government) come to dominate our lives and interests.”
Patrick Henry
FINANCIAL THOUGHTS:
How do you tell which way the stock market is going to move? The best and most reliable method is interest rates. When interest rates start to move UP, the stock market goes DOWN. Think of it as a teeter-totter with stocks on one end and interest rates on the other. The government has been keeping interest rates down because to let interest rates go up, would mean having the stock market go way down. However, the government has just spent a lot of money that it did not have and now it wants China and the Saudi Arabians to buy our bonds (give us money for a promise to repay later). The Chinese want us to give them a higher rate of interest. The government will have to do that. So, with what you have learned above, which way do you think the stock market is going to go next? If you said DOWN, give yourself a pat on the back and a cigar—you got it right. My prediction is THE STOCK MARKET IS GOING TO GO DOWN 50% FROM ITS CURRENT LEVEL. GET OUT. .(I am writing this on June 3, 2009)
OK, now that you have got your money out of the stock market, what do you do with it? You can put it in a savings account at the bank, a Certificate of Deposit, Gold, or a very short term fixed annuity. Call me and I can help you make an intelligent decision that fits your desires.
SAVINGS:
I talk a lot about savings, but that is because it is so important. The most important thing about savings is –START. You don’t have to start big, just start.
I heard a great story about a man who was a successful saver. He worked very hard in a mill. He wasn’t an educated man, and he did not make much money. In fact, some times he worried how he was going to pay the rent or buy groceries for his family. This man had a pickle jar. You know –one of those wide mouth gallon jars. Every evening when he got home, he emptied the change from his pockets into that pickle jar. When it got full, he would roll all of the coins and take them to the bank. He repeated this process until his son was eighteen years old. By then, he had saved enough to send his son to college. His method was very simple, but very effective. The reason that he was a successful saver was that he STARTED.
Continued
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POLITICS:
Both political parties have proven that they can waste our money, spend us into debt, and have little regard for the wishes of the American people.
Be encouraged. There is a REVOLUTION underway. The April 15, 2009 TEA Parties that were held across the nation were the first shot. Montana fired the second shot on 5/6/2009 with a law that they passed challenging the Federal Government. Texas, Utah, and Tennessee are passing similar laws. States are exerting their rights and informing the Federal Government that the Feds have overstepped their Constitutional authority.
You are living in an exciting time. The citizens of the United States are in the process of regaining control of their country and reclaiming their civil rights. I hope that you become an active participant in these events.
A WORD OF CAUTION:
The news has been full lately of scam artist. We have heard about Bernie Madoff who cheated people out of $58 billion. Locally, we have heard of two men who cheated investors out of several million each. We have not seen nor heard the last of cheats and crooks. You need to be very careful. There are other cheats operating out there and some of them are in the roofing business and home repair business. Before you hire someone to work for you, check him out. Get some references. Do not pay for everything up front. It may be OK to pay one third of the bill in order for that person to purchase materials, but do not pay in full—be careful. Watch out for thieves. Keep your valuables and your cars locked up Don’t leave anything of value in view of the street or persons passing by. Don’t tempt people and don’t be an easy target.
A FINAL THOUGHT:
What will be your final thought? As you lay on your deathbed with those that love you close by, what will be your final thought? Don’t let our final thought be “I wish that I had more life insurance to leave them.” Get life insurance now. It will never cost less and you will never be in better health than you are today.
Give yourself a raise. Support the FairTax. Go to www.fairtax.org or call me for details.
This newsletter is provided for your information by:
David Preston Insurance
5410 S. Bell, Bldg. B, suite 401
Amarillo, TX 79109-6222
Phone 806-359-4498
davidpreston@amaonline.com
VISIT OUR WEBSITE www.davidprestoninsurance.com
NEWSLETTER
From
DAVID PRESTON INSURANCE
June 2009
HOMEOWNER INSURANCE
The high winds in April caused some damage and made me realize the need to explain some features of the homeowner policy. I would like to remind everyone that your policies have a DEDUCTIBLE. This is the amount that you have to pay before the policy starts to pay. In most cases the deductible is 1% of the amount of the policy. Example: If your home is insured for $75,000 the deductible is $750.00. If your home is insured for $125,000, your deductible is $1,250.00.
What do you do? If you think the loss will be more than the deductible or close to the deductible amount, call me and I will report the loss. If you know that the loss is less than the deductible, just go ahead and make the repairs yourself. Owning a home is great, but homes do require upkeep. A couple of years ago I spent a week painting the outside of my home. Then this year, I put up a new fence (my fence was 30 years old). Wind had blown part of my fence down last year, but I knew that it was less than my deductible, so I waited and put up a new fence at my expense.
This is an important point. In your policy, it states and you agree that YOU will do everything you can to limit the loss. Example: Let’s say we have a high wind and thunderstorm and it is raining like crazy. The wind breaks a limb from a tree and the limb falls and breaks a window. Rain starts blowing into your home. You are required to stop the water running into the house as fast as you can. If you don’t, and the water causes a lot more damage, your insurance may not cover everything.
QUESTION ABOUT HOMEOWNER COVERAGE
Does your homeowner insurance cover you if you damage someone else’s auto while on your property? Yes, if the property does not belong to a member of the household. Example: A customer was riding an off-road vehicle on his property when he lost control and crashed into a visiting relatives vehicle. The homeowner policy will pay for fixing the relatives vehicle.
QUOTES
“Those people who will not be governed by God will be ruled by tyrants.”
William Penn
“We can evade reality, but we cannot evade the consequences of evading reality.”
Ayn Rand
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AUTO INSURANCE
I put this in a previous newsletter, but it is worth repeating. There are many factors that go into the rating of an auto policy. Factors such as type of vehicle, age of driver, how vehicle is used, driving record, etc. all go to factor in the rates. However, there are other factors, also used in setting rates. Those factors are payment history of insured, length of time with prior insurer, credit record of insured, and loss history. Insurance companies are looking for GOOD CUSTOMERS. A person that has a good track record and payment history will generally pay less than someone who either is an unknown quantity (such as a young person getting insurance for the first time) or a person with an undesirable track record. A person who lets a policy lapse for more than 30 days will pay a higher rate than a person who does not let a policy lapse. You can be sure you are getting the lowest rates that you deserve by (1) keeping your vehicles insured, (2) making premium payments on time, and (3) trying to improve your credit scores.
QUESTION ABOUT AUTO INSURANCE
Does your policy cover you in rented cars? Yes, if you rent a car, your personal auto policy will cover you in the rented car. However, it transfers the same coverage as your personal auto had. Example: If you have liability only on your personal auto that is all that you have in the rented car- so you would have to buy collision insurance from the rental car company. If you had full coverage on your personal car, then you have full coverage on the rental car.
QUOTE
“ Those who hammer their guns into plow shares will plow for those who don’t.”
Thomas Jefferson
This is why we have the 2nd Amendment to the Constitution—remember it.
continued
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WHAT KIND OF SAVINGS ACCOUNTS
There are two types of savings accounts that everyone should have.
The first is SHORT TERM savings accounts. These accounts are for things that you need or want in the very near future. Maybe you need to save for a new car, new furniture, a vacation, an emergency fund, or a particular item that you plan to buy. One of the best places to save money for these needs is the bank. You can open a savings account, interest bearing checking, or money market account.
The next type of savings is for LONG TERM needs or goals. These things may be for a child’s education, retirement, or some other reason that will require a larger amount of money. The bank may NOT be the best place to save for these needs. You can consider, mutual funds, annuities, Certificates of Deposit, and many other financial products. Be aware that each of these has it’s own advantages and disadvantages as well as tax consequences. You should consult with someone you can trust and carefully think about which of your options will be the best choice.
A few years ago, a customer called me and said “I have $xx,xxx dollars to invest, but there is a possibility that I may need it for my business in about 12 months”. I told him to go put it into the bank because everything that I had to offer would have surrender or early withdrawal charges attached. About 6 months later the man called me to tell me that he had put it into a mutual fund. The broker told him he could get it out any time he wanted it. It was true, but the broker did not tell him there was a penalty. The penalty cost the man 7% of what he had invested.
If you are thinking about investing, or looking for a place to grow your money, call me. I will carefully go over the options with you and make certain that you understand the consequences of each. It may result in you doing business with me, or I may advise you to put your money somewhere else.
QUOTES
“The strongest reason for the people to retain the right to keep and bear arms is, as a last resort, to protect themselves against tyranny in government”.
Thomas Jefferson
“No man’s life, liberty, or property is safe while the legislature is in session”.
Mark Twain (1866)
continued
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OBSERVATION
As I study history and politics I realize that politics has always been a dirty game. It is very difficult for honest men to stay honest. Many honest men give into the temptations of power and become corrupt. It appears that with each new Congress, the Congressmen are becoming bolder in their dishonest deeds. We have let this happen by not voicing our concerns and voting scoundrels out of office.
T.E.A. Parties were held on April 15, 2009 to protest the behavior and spending habits of Congress. The Congress, not the President, controls the purse strings of the nation. Another TEA Party is scheduled for July 4th at Memorial Park (adjacent to Amarillo College). I hope that you will try to attend. All people are welcome, Democrats, Independents, Republicans, Libertarians, etc. We ALL are affected when Congress does not represent us. We either sink or float together. UNITED WE STAND, DIVIDED WE FALL. Come and make your voices heard.
FOR THOSE INTERESTED
There are an estimated 80 million gun owners in this country, but only about 5 million are members of the National Rifle Association. I have been a member of the NRA for over 30 years because I believe in supporting the 2nd Amendment. The NRA is doing something right now that I don’t believe they have ever done before. They are offering those interested in a FREE one-year membership (normally costs $35.00 per year). You receive a subscription to one of the NRA magazines, some insurance offers, and discounts on merchandise. If you are interested, use the link below to sign up.
https://www.nrahq.org/nrabonus/accept-membership.asp
EARN A GIFT CERTIFICATE
When someone refers a person to our agency and that referral becomes a customer, I send the person who made the referral a $25.00 gift certificate to a nice restaurant. The certificate is my way of saying thank you. How do you make the referral? Simply tell the person to call us for a quote or you can call us and give us their name,
Give yourself a raise. Support the FairTax. Go to www.fairtax.org or call me for details.
This newsletter is provided for your information by:
David Preston Insurance
5410 S. Bell, Bldg. B, suite 401
Amarillo, TX 79109-6222
Phone 806-359-4498
davidpreston@amaonline.com
VISIT OUR WEBSITE www.davidprestoninsuance.com
TELL YOUR FRIENDS THIS
If your friends are thinking of buying a house they need to know this information. Usually a home inspection is ordered (most of the time by the realtor). The buyer should tell the real estate person that they want to have their own inspector inspect the property. The buyer should ALWAYS go with the inspector when he does the inspection and make him aware the inspection is being done to protect the buyer, not the seller or real estate agent. Make sure that the inspector goes up on the roof and then examines the plumbing and heating systems. These are items that can cost you real money if you have to replace them immediately. Inspectors usually do a better job if they are hired by the home buyer and the buyer is with them.
NEWSLETTER
From
DAVID PRESTON INSURANCE
April 2009
NEWS YOU HAVE ALL BEEN WAITING FOR
OK, maybe I exaggerated a little. But I think a few of you will appreciate this. We redesigned our agency web site (www.davidprestoninsurance.com.) The new website allows you to request quotes for life insurance, health insurance, auto insurance, and home insurance. Most of the information that we need in order to give you a quote is there for you to complete and it automatically comes to my computer via email. Most of you work from 8:00AM to 6:00PM. By the time you run a few errands or pick up the kids, my office is closed. By having this capability, you can go to your computer when it is convenient for you and send your request. We will prepare the quotes that you want and mail them to you. It doesn’t get easier than that. BE SURE TO LOOK IT OVER.
DON’T FORGET ABOUT YOUR PARENTS
Sometimes you are required to look after or help support one or both of your parents. This can take a whole lot of money as well as place a strain on family relationships with the parents, with your children, and with your mates. There are things that you should know about your parents’ financial condition and the sooner you know this the better. First, do your parents have medical insurance or Medicare supplement insurance? As they get older, they will need more and more medical attention. Second, have they made plans for how they are going to pay if they require nursing home care? These expenses can easily run more than $4,000 per month. Third, do each of your parents have enough life insurance to pay their debts and for a funeral? Debts will vary, but funerals cost $8,000 or more. There is more than one solution to each of these three potential problems. You and your parents should have a talk and find out how much planning has been done and see how much more that may need to be done. It is not an easy subject to discuss, but it is better to discuss it while you have time to adjust and make plans, than to avoid the subject and have no plan. I can help you find solutions to some of these problems.
YOU CAN BE A HERO
Most employers like to provide employee benefits. The most sought after benefit is medical insurance. Medical insurance is probably the most expensive benefit that can be offered. UNTIL NOW. “Care Today Clinics” is about to change all of that. How would you like to go to a clinic and have a $10.00 co-pay? Imagine how happy your employer would be to offer a great benefit at a very low price. You can be the Hero. Simply tell your employer to call my office to obtain details and judge for himself if this benefit is something he would like to offer. I will guarantee that the employees will like it. (Available in Amarillo only)
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QUOTE
“No arsenal, or no weapon in the arsenals of the world, is as formidable as the will and moral courage of free men and women.”
Ronald Reagan
Read that quote again and let it soak in. “Will and moral courage”—that is what we need from every citizen at this time. We are entering a time of extreme difficulty and to get through it, we must all show a will and moral courage. Will and moral courage is what has made the United States a great country and it is what it will take for us to remain a great country.
INVESTMENTS?
In the last few months, we have seen drastic declines in the stock market and related investments. Most investment advisors and individuals had no idea it was coming or how severe of a decline it might be. People are wondering what to do now and are looking for a safe place to put their money. There are two very safe places for your money. One is in special life insurance contracts and the other is fixed annuity contracts. If you or someone you know needs to find a safe place for your money, call me and we can discuss these alternatives and see if they are appropriate for you. We have one more good place to put money (requires $10,000 or more). It is called Life Settlements.
BEWARE
Liquid hand sanitizers can be VERY harmful to small children. If they use the sanitizer and then lick their hands or fingers, they could get a big dose of alcohol poisoning. It is probably best to keep these products away from your small children.
DOUBLE BEWARE
There is a new way for criminals to market drugs to children. They are putting flavors into “meth”. The latest is “strawberry meth” or “strawberry quick”. This is a very powerful drug and is causing deaths. It looks like pink crystals or pink powder. Warn you children.
MEDICAL INSURANCE
Did you know that our agency handles most kinds of medical insurance? We have individual medical insurance, group medical plans, Medicare Supplement plans, and dental plans.
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GOVERNMENT SPONSORED HEALTH INSURANCE
Individuals and employers are constantly trying to find less expensive health insurance plans and ways to reduce the costs of health care and as a result, they ask the government to solve this problem. ( I am not sure I would want the government to solve anything after this mortgage mess)
As things are right now, YOU HAVE A CHOICE. You can choose to be insured or not to be insured. You can choose to pay the required premium or not to pay it. If you choose not to pay for it, you can still spend your money in the way that you feel is best for you and your family. Also, if you have a life-threatening situation you can rest assured that the hospitals and doctors will take care of you IMMEDIATELY (even if you don’t have insurance) and you will not have to wait.
Here is what most people fail to understand about what the government will do if they get involved. Sure the cost of the coverage will go down a little bit, but every single person/family will pay. You will not have a choice. You WILL pay. If you work, your employer will be forced to withhold the cost from your check. If you are on Social assistance programs or Social Security, it will be withheld (just like Medicare is now). So, if you had chosen not to be insured because you could not afford it, under the government plan, you will have to “not afford” something else. The next thing the government plan will provide for you is waiting lines. Doctors will drop out of the system and waiting lines will result. You may have to wait 2-3 years for heart surgery or cancer treatment. Every country that has national health care has waiting lines. Be careful what you wish for.
EARN A GIFT CERTIFICATE
When someone refers a person to our agency and that referral becomes a customer, I send the person who made the referral a $25.00 gift certificate to a nice restaurant. The certificate is my way of saying thank you. How do you make the referral? Simply tell the person to call us for a quote or you can call us and give us their name,
Give yourself a raise. Support the FairTax. Go to www.fairtax.org or call me for details.
NEWSLETTER
From
DAVID PRESTON INSURANCE
February 2009
HOW TO SURVIVE IN A DECLINING ECONOMY?
The first thing to do is do your best to keep your job. Work harder than ever before. Do your best work. Try to make yourself “more valuable” to your employer. Be willing to do any job that needs doing. Don’t grumble or complain. Be loyal. Be thankful that you have a job. The second thing to do is look at where your money goes. Cut out unnecessary spending. If you don’t need it, don’t buy it. Hold on to your money. If you don’t have a family budget, now is a really good time to create and start using one.
Look for ways to economize and save money. Does car-pooling make sense for you? Plan trips to the grocery store, dry cleaners, etc. Make purchasing lists and stick to them.
Don’t wait until you are forced to do these things, do them now.
HOW TO SPEND MONEY?
Spending money is easy, the tough part is getting the best value for your money.
Two good reasons to spend money are for
Necessities are things like food, shelter, clothing, education, insurance and other fundamentals. Fun is for things that give us pleasure or enjoyment. The two worst reasons to spend money are
- Boredom (I think I’ll go shopping)
- Iindifference (I have it, so, I guess I’ll spend it).
Seek to obtain maximum value for every cent you spend. One way to measure value is to keep a list of everything that you buy for a week. At the end of the week, look at the list and see what items you would not buy again if you had the opportunity to redo it. Those items represent things that you did not get good value. Another way to measure value is comparative shopping. That TV that you purchased for $700.00, Could you have purchased it elsewhere for less? Do you really have to have the newest and latest electronic gizmo? Take control of your spending. Everyone will not spend money in the same way. Decide what factors are important to you. Make your dollars count. Budgets are helpful in setting spending priorities. I can supply you a simple budget form if you need it.
QUOTE:
“The ultimate result of shielding men from the effects of folly is to fill the world with fools.”
Herbert Spencer, English Philosopher (1820-1903)
“In general, the art of government consists of taking as much money as possible from one party of the citizens to give to the other”.
Voltaire (1764)
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ENSURING YOUR WEDDING DREAMS COME TRUE
In the next four months there will be many young couples announcing their engagements and coming marriages. They will be deciding when to get married, where to get married, how many guests to invite, and how much to spend on getting married. They will pay more attention to these details than they will to more important details such as discussing their individual financial circumstances. Don’t spend more on a wedding and honeymoon than you can afford. Starting off in debt is financial stupidity. There is a cute but sad television commercial where a young man laments the fact that he did not check out his bride’s financial circumstances and now they are living in the basement of her parents’ home. Another commercial shows a man singing in a seafood restaurant because he did not take care of his own credit ratings. These are sad situations and they can cause young couples to pay dearly for not discussing them with each other.
What should you do?
Couples should discuss important things like how many children they want to have. One spouse may want several children while the other is thinking that one would be enough. Be in agreement. Discuss your credit and don’t keep secrets. You each have the right to know what the other has done, how good the credit rating is, how much money is owed. After all, you will each be responsible for the other person’s debt after you are married. Get things “cleaned up” before you get married.
Set priorities.
Two of the very first things that couples should do is buy life insurance on both and buy health insurance. These two insurances are the foundation for a successful financial life. Obtain the required other insurance such as auto insurance and homeowners or renters insurance. Decide whether you will operate with one bank account or if you each will have a bank account. Don’t let the lack of a pre-marital financial discussion cause you regret down the road.
THE TRUTH
No government has ever made money. Government’s do not make things and they have no earned income. The only way that governments can obtain money is to take it from someone. Governments get money by taxing their citizens. So, in order for a government to “give” something to someone, they must first take it from someone else.
To understand government, you must understand the above.
QUOTE
“The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work instead of living on public assistance”.
Cicero, 55 B.C.
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REMINDER
Lock up your belongings and keep them out of sight. Don’t flash around expensive items such as jewelry, electronics, and guns. You don’t want to invite someone to break into your home or auto. With the declining economy there are more people out of work and crime usually increases. We are already experiencing more robberies of businesses and homes—so be careful.
Give yourself a raise. Support the FairTax. Go to www.fairtax.org or call me for details.
This newsletter is provided for your information by:
David Preston Insurance
5410 S. Bell, Bldg. B, suite 401
Amarillo, TX 79109-6222
Phone (806) 359 4498
E-mail: davidpreston@amaonline.com
VISIT OUR WEBSITE: www.davidprestoninsurance.com