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Stewardship IV Report for December

2014A.D.
Dated January 5, 2015A.D.

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

Report for December 2014 and 2014: In the Lord’s mercy, fracking saved
America from much of Obama’s and Democrats’ destructionism. Thank the Lord. Likely the
results will be favorable to the market for months. For December we netted -7% and closed
1914 with XXX%.
2013

/Periods ►

2014

Latest
month
Dec

Fund/month/s

3 months
10/1-12/31

2014
1/1 – 12/31

Last 12 months
1/1 - 12/31

SP500

29.0%

11.5%

-.25%

6%

11.5%

11.5%

RYVYX

58.0%

34.0%

-7.0%

8%

34.0%

34.0%

Psa.23

80.0%

29.5

-4.9%

9.6%

29.5%

29.5%

In spite of Obama’s restrictions, oppositions and mocking, the drilling Sarah Palin urged
Let the Record Speak for itself
over 4 years ago with ‘Drill
5 year Composite Chart
$100,000 became
baby drill’, has proved wise. Natural
XAU Precious Metals
-62%
$38,000
gas is cheap, gas is getting cheap and
PMTPX Largest Bond Fund
-2%
$98,000
America has abundant affordable
RYVYX RYDEX Dynamic 285% $385,000
energy.
SP500
80% $180,000
XOI Oil & Gas

25%

$125,000

Thankfully, much family cash is
being transferred to the successful
Psalm 23 Programs from 401ks, other
IRAs, non-productive CDs and just
cash. How much better to receive 20+
% gains than fearfully losing.

Check out our revised web page:
www.davidholmesagency.com
The web page is an excellent source-place for family and friends that need light & straight financial info.

● New Accidental Death Benefit Policy. Ages: 20-55

No Health questions. $100,000 is $154 annually;

$250,000 is $302 annually; $500,000 is $554.00 annually .

A back-up of sorts if you can’t get

life insurance, or ….
• Ferguson Obituary: Listened to a fool; played the fool; received fool’s reward! Gal.6:4-10

•STM

Short Term Medical is good news for many. A mom discovered that her twentysomething in-college daughter could get STM for about $94 monthly vs. over $600 on her
Obama-policy. Use your computer ... See @ http://davidholmes.besthealthagent.com
Do your own quote!

It’s easy, it works and it is informative!

2015A.D., what will it be? I suspect it will be a good year with increased volatility.
Because of fracking, energy costs have greatly declined. Multitudes rejected Obama in the 2014
elections with many more Republicans being elected. My prayer is multitudes of God-fearing
pastors will proclaim God’s way and that multitudes will pray that those elected will support the
Constitution and reprove evildoers and evil. Jesus taught us to pray … Thy will be done, Thy
kingdom come, Deliver us from evil ….
The Challenging Articles on our web page address some of these developments. Our God is the only
God. As for me and my family, we are going to serve Him. Like Joshua, we go onward to overcoming and
victory in faith not fear and dread. We leave those for unbelievers.

√ Do check out the articles and reports.
Blessed is the man whose God is the Lord!Psalm 103

For a blessed New Year
Thankfully reported,
David

America’s Youth Messy Pension Mess
By David Holmes Registered Investment Advisor December 4, 2014A.D.

This recent Wall Street Journal pension article
is but one of many papers focusing on the
persisting failures of the evil demand for ‘a
man or government’ to be the
trusted Shepherd and a government
program to provide financial stability and
security. Since FDR’s Social Security and
Farm Programs, politicians have repeatedly
copied his successful votes-buying legislative
redistributive panaceas. It also highlights the
common and growing issue of missing
productive assets to meet the funding ‘needs’
of retirees depending on government-backed
promises!

Which God

Public Pensions Need Gamblers Anonymous
Retirement funds for Illinois and California hold 75% risky investments. The
Texas teachers’ plan: 81%.
WSJ.com 12/2/14 by Andrew Biggs Pensions
State and local pension plans invest roughly twice as much in risky assets as
would a prudent individual saving for retirement. Indeed, the Society of
Actuaries, which represents the actuarial profession, recently pointed to
public-pension investment practices “that go against basic risk management
principles.” With $3.7 trillion on the line, risk-addicted pensions need an
intervention. The question is who can do it.
Many individuals follow a rough “100 minus your age” rule to determine
how much risk to take with their retirement savings. A 25-year-old might
put 75% of his savings in stocks or other risky assets, the remaining 25% in
bonds and other safer investments. A 45-year-old would hold 55% in stocks,
and a 65-year-old 35%. Individuals take this risk knowing that the end
balance of their IRA or 401(k) account will vary with market returns.
Now consider the California Public Employees’ Retirement System
(Calpers), the largest U.S. public plan and a trendsetter for others. The
typical participant is around age 62, so a “100 minus age” rule would
recommend that Calpers hold about 38% risky assets. In reality, Calpers
holds about 75% of its portfolio in stocks and other risky assets, such as real
estate, private equity and, until recently, hedge funds, despite offering

The article points out different returns are used:
sometimes 5%, some 8%, some a mix of stocks
and bonds as rationality is sought in understanding
how pensions can be possibly paid. It’s instructive to note that no minimum returns are identified
to reach any known goal. It is also prudent that we remember the faithless words and actions of thenPresident George Bush, Congress and President-elect Obama denying any government responsibility
regarding the defaulted value of the tens of billions of formerly AAA Bonds of FannieMae and
FreddieMac debts that sealed the 2007-2008 financial tumble.

However, as Steve Forbes points out in his newest book MONEY, the adverse unintended
consequences just multiply and grow in magnitude … though I don’t believe any, other than the
misnamed Affordable Care Act begin to approach the deceptive, disruptive and destructive
reality of FICA’s financial, social and moral bankruptcy. So titantically gigantic is the problem
and issue that Obama and Congress refuse to do anything but lie about its soundness, its purpose
and there’s no missing money! Meanwhile, as this current article points out, Social
Security is not the only ‘pension’ fund that lacks identifiable, necessary assets … it’s just the
biggest. So, is there a solution? Will the government declare that a yard is now 34 inches? ….
If we ignore the basic moral and spiritual aspects that impossible political promises
have been substituted and chosen vs. the true obedient comprehensive Christian worship of the
God of the American forefathers, we can only expect more of the same as the fetid mess
putrefies. The writer fumes over the asset-shortages of pension funds but is silent to
the far greater shortage of the FICA fund! As MONEY illustrated, Obama’s three Keynesian
stimulus programs clearly demonstrate, more government, more money, more currency
and/or more credit are not the solutions. So, where is the voice of America’s pulpits?
When is crime not crime?
Is there no light? No knowledge? No wisdom? No courage? No true hope in the God of
Creation, Calvary and the Resurrection? As the discontented and lazy pillage and destroy in
Ferguson, NYC and LA, the President and his perverted administration support this misplaced
hate and rage with continued slander and lies against America as the media lies to support evil,
where is America’s outrage? Ferguson Tragedy: Listened to a fool; played the fool; received a fool’s
reward!

Where are America’s great preachers of righteousness? Ferguson Tragedy: Listened to a fool;
played the fool; received a fool’s reward!Gal.6:4-10 Americans overwhelmingly voted against the
Democrats and Obama in November, but where are the elected leaders opposing lies, evil,
lawlessness? Where? Will Americans like the Egyptians of Moses’ time ignore the signs of the
times and the judgments that grew? Will America’s youth continue to silently support the
politicians and Social Security System that promise to discourage and pilfer their future? They
are not even promised a 5% return! Have you heard that Jeb Bush is a Conservative? Who is
stuck on stupid if not the Republican RINOs?

Social Security Checks … Monday Morn
Review
WHY today’s Social Security Checks are not Welfare & big changes are required
By David Holmes April 6, 2014A.D. r.9/15/14

America for Americans! American right to work preempts large employers’ lust for
cheap labor and foreigners desire to lawfully or unlawfully work in America. Just as Immigration
is a legal process, so also should individual Social Security accounts be legalized,
formalized and followed rather than continued as a continuing Madoff scheme against
Americans, young and old for the misuse by politicians! 6+% and 12% of pay are no small,
insignificant deductions. Prior Supreme Court cases declaring that Americans have no rights
connected with their FICA accounts must be recognized as evil, immoral and unconstitutional.
The 5th Amendment says that “… nor shall private property be taken for public use
without just compensation.” Clearly, only a corrupt and depraved politician or equally corrupt
and depraved jurist would say or admit that taking 6 +% of a person’s pay with no established
market-compensation is just, moral or constitutional, but tyrannical yes! So, do read on.
Contrary to many opinions, today’s Social Security check is not welfare. Unlike food
stamps, disability checks, housing benefits and Obamacare with or without subsidy, not only are
the Social Security checks owed but much more! Let’s look at the facts, fraud and the
future.
Though Social Security was started as the first vote-buying redistribution scheme by FDR and
the Democrats in the mid-1930s, a financial evaluation of the last 40 years of the 6% FICA
tax time-value of money demonstrates Social Security checks today cannot be morally seen
as welfare. Perhaps it is best said: like all Socialist ventures, responsible financial analysis
shows that the Program is ill-managed, nationally-destructive and has gone horribly astray.
Today’s retiree has paid 6% FICA taxes of his annual pay for 40 years … or more. Whether
imputing a (1)long-term historic interest rate of 5% interest earnings or the (2)SP500 market
returns, that 6% on a level $25,000 annual pay ($1,500 annual FICA tax) would have
compounded to account values of $190,000 (from market interest) or in excess of
$444,000 (from market stock equity growth) respectively! Not small change!
However, let us clearly note, these are adverse consequences of continuing bad decisions and
deeds. Again, we are doing a Monday Morning Review not Monday Morning
Quarterbacking.
The expose! Rather than responsibly, professionally and forthrightly investing the 6% for the
promised future elder-obligations, our politicians have redistributed (spent) the funds for other
political, vote-getting programs. Truly, the buying-votes aspect has been very successful. It
kept the Democrats in control of Congress for over 50 years! Redistributions were multi-cultural.
They included farm programs, color-cronyisms as well as food stamps, free housing and crony
capitalism subsidies. Now the chickens have come home to roost. Neither the $190,000 in
interest money nor the $444,000 in market equity exist; only us needy 50+ million
oldsters! The fraudulently claimed set-aside pantry is empty when most needed! It is a huge
disaster!

Currently, like Food Stamps, Medicare and Obamacare, Social Security’s ‘promised’ monthly
checks are a gigantic drain, claim and chain on Federal finances. They consume about
40% of the Federal budget. Again, the oft-discussed $3Trillion Trust Fund is factually nonexistent. It’s like calling your 30 year mortgage an asset! BUT, over 50 million older
Americans depend on these small and insufficient monthly Social Security checks … which both
recipients and politicians admit are ‘insufficient’. So, let’s financially and morally
discuss why Social Security shouldn’t be a future growing, oversized battleship anchor chain
on America’s canoe finances. Remember, we are doing a Monday Morning Review not
Monday Morning Quarterbacking. The truth exists and is understandable. The more
accurate our perception, the more likely our responsible understanding and necessary
corrections.
SITUATION: 50+ million older and largely poorer Americans no longer able to
command wages are without adequate savings or living funds except for the
monthly Social Security checks. These 50+ million are dependent on the promised
monthly Social Security check. However, for several years now, there are no excess FICA
funds to pay for redistributions and the monthly Social Security checks. The checks require
more than the annual FICA income … from both the employee 6% and employer 6%.
Meanwhile, the Democrats refuse to limit spending! It is clear continued Democrat votes require
continued redistribution spending by whatever euphemistic names. It is my thinking that the
‘hope of Obamacare’ re-elected Obama in 2012 as many thoughtless ‘good’ men stayed
away from the voting booths! Of course, Romney wasn’t perfect! Today, out of the gate,
Obamacare is another growing personal, family, social, financial and political disaster and
another major Socialist disaster! These facts demand changes!
These cascading, costly unaddressed consequences of unpayable bills with official lawless
spending leave America, the elderly and younger Americans in jeopardy as does the
unregulated Mexican border! Indifference is not only immoral but contributes to the
magnitude of the pending and growing disastrous financial and social consequences. As the
media and politicians seek to please Mexican officials, the illegals, major employers’ lust for
cheap labor and Democrat votes, America must wake up and shape up (demand) with rightful
emphases on America and its law-health under God.
In conclusion, not only is Social Security morally and fiscally owed, but Americans
have been defrauded and America jeopardized! They are owed much more than their present
insufficient checks! It is time for a moral and godly people to demand justice for the defraudedold and enslaved youth. The pantry is empty: the elderly need equitable payments; the youth
common sense and personal accounts and the guilty their just due. Where are the ministers that
say they care for the poor and needy? That say they speak for God?
An after note
The following life insurance widow-article exemplifies how many elderly Americans arrive at
70 with few or no meaningful financial family assets. In the midst of a multitude of far better
choices available to all, she not only over-buys life insurance buying $732,000 to use it
for savings but grossly over-pays for life insurance paying $30,000 annually for 10 years as
she ignores far better alternatives! Thus, instead of having a very substantial family estate (in the
millions) to manage, she is life insurance and low-return dependent. And, at 65, she can only
safely withdraw $29,000 annually. Now, $29,000 annually is not nothing, but with over
$3million at age 65, there’s no comparison. Nonetheless, it is all largely by her choice …
like the paper on the two sisters.
The book of Proverbs is very instructive: wisdom, the fear of God, understanding, seizing the
opportunity, learning from example and teaching rather than experiencing killing-knocks. It
appears to me that much of America’s poverty is self-inflicted … again like the two sisters: one

choosing to follow the crowd and big names; the other seizing the opportunity like the five wise
virgins and two prudent stewards of Matthew 25.
While it is very true that politicians since FDR have made a multitude of false and misleading
promises, have over-taxed, evilly redistributed and fostered miseducation, true education, work
and personal America has been the land of freedom and opportunity and still is. Savings
opportunities have abounded.. (Many of us have home schooled and are self-employed.) But,
many have chosen to be ignorant and be primarily consumers. Others have simply allowed their
funds to ‘go up in smoke’ and ‘drivel away’ by lack of grace, self-control, and purpose. It is not
only the rioters in Ferguson Missouri that are hopeless, wayward, lying, self-destructive and
given to excuses, bad attitudes and sloth ….
Jesus didn’t say Come unto Me, get candy and be nice. He said repent, follow me … or else! See
John 3:16 thru 18. Only He makes diligent, joyful saints out of the dregs of society and good
families.

Choosing Life Insurance, An Education
Ferguson Tragedy: Listened to a fool; played the fool; received a fool’s reward!
By David Holmes

Life Insurance Agent

December 5, 2014A.D.

At best, I conclude that this widow’s ‘choices’ and circumstances are
unfortunate.
The company literature speaks for itself … as far as it goes. A widow with $500,000 from her
deceased husband’s policy and her at age 48 sticks $30,000 a year into a Whole Life policy for ten
years and viola … $732,000 of life insurance paid-up in 10 years with cash to spend. Cash value in 10
years is $287,127 guaranteed or $344,493 not guaranteed1 from $300,000 already paid in. Again,
the literature speaks for itself … as far as it goes. The ‘happy’ widow is able to give $10,000 a year for 4
years to assist granddaughter in college. After 17 years at age 65, she can withdraw $29,000 annually
to supplement retirement until she passes at age 87 leaving a $293,054 death benefit.

1

Note that neither the Company’s figures nor my anticipated 20% Average Annual Gains are guaranteed. Thus,
like life, changes are possible. My issue is, why anticipate and accept such low returns.

The Pitch
Ignorance and lack of information of choices and alternatives are not good. Had the widow known about
our 20% Average Annual Gains and a low cost 15 year level $735,000 term life policy for less than
$600 annually, would she have bought the Whole Life Paid Up policy for $30,000 for 10 years???
I anticipate the $30,000 annually to grow to at least $934,512 with the 20% gains. And, after 2 years
when she anticipated withdrawing $10,000 to assist with the granddaughter’s college, she would have had
$1,345,697 to draw from vs. the paltry $371,992. Lastly, when she anticipated withdrawing $29,000
annually at age 65 and the policy 17 years old, I anticipate her and/or her family savings would be in the
range of $3million plus …. whether she lived or died … and that’s at age 65!
The agent recommending and selling the policy says “If I knew what I know now when I was young, I
would have funneled as much cash into permanent life insurance as I could.” Really? Did he even
mention the details of alternative of low cost term and productive savings? He knows what?

Whom to listen to? This is America! The widow can listen to whomsoever she wishes and buy
whatever she chooses. Unlike politics, her choices will largely only affect her. But, examine and consider
the consequences. It reminds me of the two sisters investing: one choosing to change to my
recommended 20% gains, the other staying with the crowd and 5% gains. In 20 years one will likely have
$575,000 while the other only $40,000! The good news, even this widow could change and salvage most
of her future. But …

Continue Matching 401k funds, a Smart choice?
By David Holmes

Registered Investment Advisor

401k

r.12/16/14

Situation: Some employers offer to match various portions of employees’ 401k savings
as long as the employee uses the employers’ chosen set of funds.
Question: Is the 401k arrangement a winning choice? The best choice? Is there better? How?
As my papers continue to demonstrate, it all depends on the long term annual returns expected,
chosen and received! If the usual 5 to 6%; clearly no! Stop contributions today.
● Focus alert: That advisor who will not discuss and identify a target annual return is nothing
more than a salesman regardless of many titles and designations. Stop contributing!
The table illustrates the likely contrasts of simply accepting, as unquestioned superior ‘value’,
investing with the employer’s chosen set of usual 401k fund choices because of ‘matching funds’
Usual careless Assumption: No one could possibly miss with such an immediate 50%
gain!
However, as the table demonstrates, failing to focus on a specific target return is
like shooting at no target. Every return is as good as any other! What folly. As
Americans, we are free to choose, stay or change! Consider the chart, stop
contributions and start with Holmes.

Evaluate the huge developing differences with 20% returns without matching funds even though
it takes 4 to 5 years to ‘get ahead’ with just your own $. Just look at 10 and 20 years!
401k with
End
of
Year
1
2
3
4
5
10
15
20

Expected/Usual 6%
Annual Return
$4,500 annually
$250 + 125 @ month

$4,770
9,826
15,185
20,866
26,888
62,872
111,026
175,467

IRA

Roth IRA

With 20% Return
Investing
$3,000 annually

$3,600
7,920
13,104
19,324
26,789
93,451
259,326
672,076

With 20% Returns
Investing only
$600 annually
(Just $50 a month!!)

$864
1,900
3,144
4,637
6,429
22,428
62,238
161,298

30

377,107

4,254,773

1,021,145

A. For the annual investment figures, we use the employee saving $250 monthly (3,000
annually) plus the employer’s 50% matching funds (1,500 annually) for a total annual savings of
$4,500 or $375 monthly. The usual industry average annual expected return may be about 5 to
6%. Thus, we use 6% for the annual $4,500 401k investment with 50% matching funds.
$3,000 of personal funds is a lot of stewardship and money! What’s your target return?
B. The question: is one better off with likely 20% productive personal-choice returns and
‘ignoring’ the employer’s 50% matching funds? Thus, the IRA illustration uses only the $250
monthly (3,000 annually). For returns we will use 20% annual returns as shown in the next
column. This is my expected target return with the Psalm 23 funds2.
Notes: While I heartily recommend the use of the Roth IRA because of its long term tax free withdrawal
provisions, annual gains are the first consideration. Additionally, the above chart uses the traditional IRA with
before-tax earnings* for a more direct comparison. But then, who would not bother to evaluate and change when
one could have maybe $4+ million vs. maybe only $175,000? Also, experienced ranchers do examine a gift horses’
mouth. It is expensive to feed and care for an unwell animal.

2 As with all investments, past performance does not assure future like performance and
goals/estimated returns are not assured. However, neither is running out of funds assured against later
in life because of low usual annual returns and inflation! Additionally, I recommend the maximum
ROTH contributions and *paying the taxes out of income … thus maxing the contribution allowed.