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Welcome to Phoenix Master Financial. After I learned lessons and gained experience through stock market crashes and house market bubble burst, I realized the need and benefit of an investment strategy that balances growth and protection and is efficient against inflation and taxation. I believe a good portfolio shall include asset allocation in real properties, securities and insurance products for it to outperform volatile market as diversity reduces risk and to keep pace with potential inflation and higher taxes since governments currently run with huge (or unlimited) debts and print a lot money.

Financial freedom is secured by whatever you keep but not by what you got. In current low interest rate environment, finding ways to get better return and deferring taxes are more challenge and very important for wealth growth. As an example, if you invested $10,000 with 4% annual return. Assuming inflation rate is 3% and federal income tax bracket is 28%, your net becomes $9,988 which means your investment actually lose value after one year. Step by step calculation is shown in the table. If federal income tax bracket lowers to 25% and other factors are the same, same calculation steps will show the investment value keeps at $10,000 unchanged, or just made it even, after a year.
Impact of Taxes and Inflation: step by step calculation
Initial investment$10,000
Return after one year (with 4% return rate)$400
Less federal income taxes (28%) -$112  ( = 400*0.28. Tax on gains only )
Net return after-tax$288    ( = 400-112 )
Net investment after-tax$10,288
Inflation rate 3% (so, divide by 1.03 to adjust inflation) Value-with-inflation = Value-without-inflation + Value-without-inflation * Inflation-rate
Total Net after inflation and taxes$9,988  ( = 10,288/1.03 )
Return rate after inflation and taxes-0.12%  ( = (9,988-10,000)/10,000) )

Planning ahead may not guarantee a success but will definitely increase the chance of success, especially in generating retirement income. Many professionals, including a Fidelity article and a Charles Schwab webpage as shown below, recommend annuity as an important component in smart retirement income strategies.

退休收入之一的年金(annuity)能提供有保障的终身收入(guaranteed lifetime income),将税收推后, 同时把未来难以预测的风险转移给保险公司。 有研究表明,年金持有者有更高的退休生活质量,因为少了一份对未来财务风险的担心,不会出现"人还在,钱没了"。 年金终身收入的多少是有很大差别的, 因为年金的增值可以是固定的(fixed),可能是与股市相关联的(indexed or variable),也可能是将固定的部分和与股市指数相关的部分相结合的(stacked)。 如果一个在亚里桑那州的60岁人投入10万美元买固定型的年金以换取终身退休金收入,下表是我筛选出的几家近期内支付最高年收入的公司,并按10年后70岁时的年收入由高至低排列。 如果想在70岁之前领取终身收入,表中的数据会不同。不同年龄的人购买的年金的年收入情况,要用软件另行计算,请联系咨询

凤凰城西区 White Tank Mountain Regional Park。AZ,2017
SITE NOTICE: PhoenixMasterFinancial.com is re-directed to this site. "dafa" is the spelling of Chinese word "大发", meaning grand prosperity.
"If you have trouble imagining a 20% loss in
the stock market, you shouldn't be in stocks.
 - John Bogle
Phoenix Master Financial LLC
4025 W. Chandler Blvd, Suite 3
Chandler, AZ 85226