Stewardship IV Report for July 2015A.D.

www.davidholmesagency.com
Dated August 4, 2015A.D.

Welcome new investors! Let your light shine! Matt.5:15, Mt. 6:33

Report for July 2015: For July we netted 8.6% and for last 12 months: 34.1%.
July was hectic with the growing Greek debt problem, Puerto Rico debt problem and the
international/internal finances of China.
Periods
Fund/month/s
Psalm 23

2013
Year
80.0%

2014

Latest
month

3 months
5/1 7/31

2015
1/1 7/31

Last 12
months

Year

July 2015

8/1 7/31

29.5

8.6

7.8

16.2

34.1

SP500

29.0%

11.5%

3.7

9.5

RYVYX

58.0%

34.0%

4.75

16

33.5

3%

-1

-6.75

<0

VBTLX

-5%

Term life insurance is a first priority for family stability. It is prudent to never
overlook the principle that term Life Insurance provides a family with a moral, affordable and an
instant estate in the event dad is called home. This does happen in Gods
orderly world. Secondly, our 20% Average Annual Gains Savings Program (Psalm 23
Program) builds the familys long-term owned Family Estate like the family farm or
business in much earlier days. Since 1972 (43 years) I have advised, shown, taught and
made available these principles, products and practical matters of course, the commissions
assist me in this service and the advice, counsel and understanding are not found elsewhere . Upfront, I
recommend and quote the best competitive prices available in America and how the money
should work with profitable investing!

RE: Mr. Perrys Speech on Trump :

Mr. Trumps pointing out the murders, rapings and

vehicular killings of Americans by illegals is the truth and ought not be labeled by Mr. Perry as mean
spirited vitriol. The GOPs allowing of ObamaCare, risking our national security by refusal to enforce
our borders and immigration laws, the murders, raping and vehicular killings of Americans by illegals,
silence on Social Securitys Trust Fund and allowing the debt to wrongly escalate all call for outcrys
and corrections, not more Party-comforting cover-ups without reproofs and rebukes as Mr. Perry is
doing. As Eric Erickson points out in his article on Trump RedState.com, 7/22/15, Voting for Trump, Mr. Trumps bold
stand and finger pointing at the hypocrisy and ineffectiveness of the GOP is long overdue, a breath of
fresh air and refreshing. As another says, Mr. Trump has brought a gun to a gun fight with the GOP
bullies and media.AmericanThinker.com by Peggy Ryan Dont Make Donald Mad Right on! No, I wont be voting for Mr. Trump
in the Primary. But, as Senator Cruz writes, it is A Time For Truth and Senator Cruz has been telling it. It

is time for truth and righteousness in both the pulpit and political speech.
In keeping with my practice of including informative, factual papers and documentation with
each monthly report some personally from my Biblical Christian point of view, others that are
third party ones that illustrate the issues the following are included:
Retirement Beneficiaries Alert from the Wall Street Journal, and
Social Securitys Insolvency, Hidden in Plain Sight from the National Review Online
July 2015 - Three year Review and Analysis

Each is important but the Social Security insolvency facts are far worse than Ms. Adams
presents. Not later, but now, rather than immediately raising taxes to redeem the Trust Fund
Bonds needed to pay the short fall of FICA taxes and interest, Obama is borrowing more money!
The law governing benefit amounts may change because, the payroll taxes collected will be enough to pay
only about 77 percent of scheduled benefits. Recall Obamas promise about keeping your doctor if

you liked him, it seems If you like your Social Security check, you may be able to keep 77%
of it. Do read the article and call both Senators and your Congressman.
For a blessed August under our King Jesus,
David

Retirement Beneficiaries Alert

By David Holmes

Registered Investment Advisor 7/29/2015A.D. 800327-8963

Money

Because we all make assumptions, the included Wall Street Journal article is of value. The
couples assuming that their will was the best way of getting the money to the children. As Mr.
Cloud explained, it clearly was not.
The children would lose in excess
of $253,000 in taxes.
Further, he explained that the
simple rollover procedure of the
401k and 403b with the spouse
named as Primary beneficiary and
the children as Contingent
beneficiaries not only corrected
the problem but accomplished their
desires perhaps even better than
they intended.
I dont know why he did not
recommend or even mention
ROTH IRAs. With the Roth IRAs
the distributions are not taxed!
Secondly, he doesnt mention goal
Average Annual Returns the
most important factor in saving!
Having accumulated the identified
$600,000 in his 401k and in his 50s
and over a likely period of 20
years, indicates he saved diligently
perhaps as much as $8,600
annually with 5% Average Annual
Gains with his employer matched
his savings.
Its noteworthy that had his gains
been my recommended 20%
minimum, just with his $8,600, in
the same 20 years he would now
have over $1,926,000!
Thus, while Mr. Cloud is rightly concerned that the children would lose $253,000 without the
correct Contingent Beneficiary identifications, its clear the husband has missed far more with
the likely nominal 5% returns. Secondly, the future earnings differential missings are even
greater. In his late 50s, Mr. Investor has likely more than 30 years of stewardship ahead.
Ponder the differentials of $600,000 and the $40,000 with 5% vs. 20% gains over 30 years:
$600,000 @ 5%: $3,446,000; @ 20%: $142,425,000
$40,000 @ 5%: $172,877; @ 20%: $9,495,000.
Thirdly, since the 20% gains would allow more generous annual withdrawals or maybe 16%,

even with only a million$ the safe annual withdrawal would exceed $160,000 vs. maybe
maximum 4% annual withdraws on a million$ of a mere $40,000. Huge, huge differences!
My conclusions: Rolling over to IRAs is a necessary step but changing advisors for minimum
20% Average Annual Gains is primary.

Social Security Insolvency, Hidden in Plain Sight

Orig: Did You Ever Notice the Asterisk on Your Social Security Statement?
NRO.com 7/30/15 by Myra Adams
SS

While engaging in the mundane task of gathering financial statements for a secure retirement
meeting with my husbands and my adviser, this Baby Boomer stumbled upon documented proof
that our nation does not have the guts to confront one of its most serious economic problems.
The realization came when I pulled from my files a document statement innocently titled, Your
Social Security Statement.
At first glance, the statement did not appear menacing. I was told I could expect to receive a
benefit of about $2,136 a month upon reaching age 70 which certainly seems like good
news. But immediately I thought of a parallel of President Obamas infamous Obamacare
promise: If you like your Social Security, you can keep your Social Security. Then, as if on
cue, I saw an asterisk with the following message:

The law governing benefit amounts may change because, by 2033, the payroll taxes
collected will be enough to pay only about 77 percent of scheduled benefits.
My full form: I could not believe I was seeing the equivalent of what I was just thinking, but
with a new twist, If I like my Social Security, I can keep 77 percent of it.
With an asterisk, my beloved government was informing me that they will be unable to fulfill
their part of a financial arrangement into which, as their statement attested, I had been making
mandatory contributions starting in 1971 at age 16. This impending benefit rationing,
reducing my future financial security by $492 a month, may, in fact, not be the worst of it.
Sitting in the back of my Social Security file was an earlier statement dated March 10, 2009.
Again, followed by an asterisk was a sentence that read exactly like my 2015 statement except
for two major differences (emphasis added): The law governing benefit amounts may change
because, by 2041, the payroll taxes collected will be enough to pay only about 78 percent of your
scheduled benefits. Clearly, in 2009, the governments prediction that Social Security would
have to be cut to 78 percent of benefits come 2041 was overly optimistic. Now, in 2015, they
are projecting 2033, eight years earlier, with one percentage point less of my projected
benefits. The projections have steadily worsened over the past few years, helped by a much
weaker economy than the federal government expected. Does anyone really expect these
numbers to get better?
The skepticism I felt when I saw my initial monthly benefit was entirely justified. There are just
too many Baby Boomers and too many financial promises with elected leaders too afraid to
inflict the necessary pain of real reform. But the pain will be much, much greater when monthly
Social Security benefits are rationed. Now is the time for Baby Boomers to force their elected
leaders to confront this issue and take action. The planned benefit reduction should be a major
talking point for every 2016 presidential candidate, but somehow it is not. Why? Politicians
fear confronting the truth, and they fear Americans cant handle it. Meanwhile, here is the truth,
as stated by the Social Security Administration in its annual Trustees Report from 2014:
Social Security is not sustainable over the long term at current benefit and tax rates. In 2010,
the program paid more in benefits and expenses than it collected in taxes and other noninterest
income, and the 2014 Trustees Report projects this pattern to continue for the next 75 years.
The old clich demographics is destiny has never been more applicable. In January 2011, the
first 1946-born Baby Boomers began turning age 65, at the rate of 10,000 a day. This gray-haired
evolution continues for 19 straight years until the end of 2029 when the youngest crop of

Baby Boomers, born in 1964, finally turn 65. That adds up to just over 69 million former hipsters
who changed America at every stage of their lives (though, of course, some of them have died).

July 2015 Three year Review and Analysis

By David Holmes

July 31, 2015A.D. Trust, knowledge & obedience vs. FearMt.25

800327-8963

The above 3 year chart (8/1/2012 thru 7/30/2015), records (via BigCharts.com) the actual day-by-day
performance of 6 major funds, from the top line to the bottom: RYVYX (My choice), NDX,
VTSMX (Largest fund in world), SP500 (well-known index), FMAGX (Magellan, most decades years
ago) and VBTLX (largest bond fund in the world).
Basically, the graph records that $100,000 initial investment factually grew with bumps and
grinds with the recorded calculated results as shown in the below table at their nearest best
current points. Like a living persons EKG, a healthy fund is not flat lined!

RYVYX
NDX
VTSMX
SP500
FMAGX
VBTLX

Current
value
$270,000
$177,000
$152,000
$151,000
$135,000
$95,000

Oct. 2014 decline %

3 Year AAG

35%
25%
10%
10%
10%
minimal

39.2%
21.0%
15.0%
14.7%
10.5%
loss

Maybe 10 Yr. Value

2,731,000
672,000
404,000
395,000
271,408
<90,000

Reviewing the shown 3 year period, what do you consider the likely best and meaningful guide
to future performance for a familys long-term Christian estate building:
a. Minimum volatility like the VBTLX, regardless of its non-profitability?
b. Lack of significant volatility/declines like the NDX and SP500?
c. Longer Term growth notwithstanding temporary declines like the RYVYX?
d. Use the biggest like the VTSMX.
e. Dont change, dont manage; stay with popular fund of decades ago like the Magellan.
f. Buy Whole Life or Indexed Universal Life life insurance for retirement needs.
g. There is not enough information. There is no meaning. No one knows. Throw darts
or trust the government to redistribute.

I remain persuaded that investing is a serious long-term stewardship commitment that requires
grace and wisdom for the longer term view. Thus, my choice of c. Steve Forbes says in his new
book MONEY p.108 for over 100 years, the average annual return on stocks is about 9%.
Thus, I remain persuaded that by using the RYVYX which, by design, doubles the NASDAQ100
daily performance, I can meet or exceed our goal of 20% Average Annual Gains which arithmetic
exhibits as the minimum gains required to both build and maintain a family estate, retirement and
provision plan.