Challenging Articles ll

October 2014A.D. Edition

www.davidholmesagency.com

By David Holmes November 1, 2014A.D.

My purpose is to communicate with family, friends,

personnel and clients how I see the Christian family,
personal responsibilities, Monetary matters, godly
politics and America in view of the Bible, our
Gods rule and His kingdom. Christianity is Gods
answer to all men. America is beautiful and reflects
His grace to mankind for those who seek Him.
Our forefathers gave us a land built on Biblical faith,
principles and laws with moral politics as opposed to
dictators, tyrants or king. Not participating in voting and the election process is a grave
spiritual, moral, intellectual and practical failure. Accepting the lie that all politicians lie and
their statements meaningless is a cynical, self-serving platitude of darkness.
The Declaration of Independence and the Constitution set forth these matters for our moral selfgovernment under Christ. The Philadelphia Confession of Faith sets forth major elements of the
Christian faith necessary to life, duty, true worship of God and societal harmony. Largely these are
ignored, denied or rejected today. Up is down, black is white and evil is good so they proclaim as they
self-destroy and seek to take us with them. But, nude still remains lewd and our God exhorts repentance,
truth and offers the well of living water.

Challenging Articles, October 2014 edition

The Psalm Twenty Three Program Origins
Americas New Texas Piggy Bank
Young Americans Successful Financial Choices
Explaining Life Insurance
Co-Signing Debt Ignored
Letter to Widow
Forensically Reviewing Retirement- Income Need (2 pages)
Fig Tree Stewardship Lesson
Best Retirement Plan, a Critique
Young Advisors Sought, a Critique
One Year View
A comprehensive approach to Christian stewardship focused on
understanding and morally, effectively providing for ones family as
earnest, working or retired Christians in light of Bible principles God has
spoken: work, duty, responsibility, profit expected, faith . by
A. Using low cost life term life insurance policies,
B. Choosing RYDEXs Dynamic NASDAQ100 2x Strategy fund with my
principles, understanding and experience and
C. Understand and accept that arithmetic trumps feelings.

The Psalm 23 Program Origins

By David Holmes, Registered Investment Advisor

Cross Plains TX 76443 254725-7141 August 8, 2014A.D.

A new investor asked me to explain the Psalm 23 Program. It all started with my understanding
and making life insurance work for my family. I realized having a policy was not meaningful;
it had to compute practically to replace my income, buy the necessary and usual daily
needs: food, rent, etc. as opposed to luck and welfare. And, it had to be affordable and available.
Years ago (1972), when I left the Navy, I realized that my $50,000 Whole Life policy which I had bought
at age 34 and costing me $100 a month did not make understandable and adequate cash grocery
provisions for my wife and 3 children in event of my unlikely early death. This is the moral
purpose of Life Insurance for families.
For weeks and weeks, I struggled and searched. Agents wanted to sell me more of the same (Whole Life)
but no policy that was both affordable and practical. I answered ads and called more insurance offices as I
diligently sought a meaningful larger and more affordable policy. I finally found one, a $100,000, 30 year
Decreasing Term policy for about $30 a month! I doubled my insurance and halved my cost but more
importantly, to the best of my understanding, I now had meaningful, understandable and
affordable provisions for my family. Thats largely why I entered the Life Insurance ministry, to both
(1)make known and understandable the affordable use of Life Insurance and to (2)make available the
low cost, affordable policies that were disdained by the industry, unexplained and difficult to discover
and buy for the benefit of the family and according to ones responsibility and ability. As the years
passed and the industry changed, ART (Annual Renewable Term) passed, the 10, 20 and 30 year level
term policies became the affordable and practical policies for most. Furthermore, to march to this goal, it
became obvious that I would have to be an independent agent, able and free to advise those interested
as I saw and understood the moral use and purpose of life insurance.
Meanwhile, as I examined and studied the arithmetic limitations of both Whole Life and Term life
insurance, I began to realize that the prudent and consistent use of some stock mutual funds offered longterm amazing meaningful savings opportunities for most working families. Thus, while term life
insurance provided excellent and affordable but temporary immediate estate provisions and
protection, successful, goal-oriented, long-term investing could likely provide long-term,
understandable and moral estate retirement provisions. That is, (A)sufficient capital from which to both
withdraw adequate monthly expense money and (B) leave an inheritance for the family as opposed to
redistributive welfare and being a burden to ones family or neighbors.
Again, working as a Registered Rep in the usual investment office like IDS or Merrill Lynch was too
restrictive intellectually, morally and product-wise. They wanted their world understanding and
products sold. (I realized the retiree with $50 million in savings1 probably didnt need my idea and services.) The
idea, my idea of the American family using cheap term (life insurance) as an immediate but temporary
estate while separately building a long-term, enduring-estate with mutual funds of American companies
that would provide both enduring Retirement-age funds and a family inheritance didnt fit their purposes.
Thus, I had to train and qualify as a Registered Investment Advisor (Series 65) to publically both teach
and offer investment products and services I understood as productive and beneficial for the family. It
seemed clear to me that the growing emphasis on technical Tax and Financial Planning rather than
building to an identified family sum missed the boat of moral and meaningful family security.
Why? Without an identified sum-goal built in a specified time period (I specify 20 years) that
would provide enduring living funds for the family in the known events of death or the lengthy

Retirement period, it is just vain rhetoric and magical chairs. Thus, it became a logical necessity
to identify a specific 20% AAR (Average Annual Return) as opposed to 5 stars, feelings and more
rhetoric and appearances. Meanwhile, I had to start the Psalm 23 Program which I could
manage and make the investment decisions. It includes straight investments, traditional and
ROTH IRAs, Rollover 401ks and the Variable Annuity. I teach profit-goals first, then tax
reduction advantages. (Until I changed my Analysis program parameters in December 2012, my
investment performance was not satisfactory. We made 80% for 2013 and are on track for 2014.)
1

The family with $50 Million can likely afford 5% earnings and withdrawals and steady returns from bonds. 5% of $50M is
$2,500,000 annually. Anyone except the Clintons could exist on such.

Americas New TEXAS Piggy Bank

This is America, whoever wants to, regardless of income, can build a working retirement
By David Holmes

Registered Investment Advisor

Investment & Estate Services

July 15, 2014A.D.

Pessimism and low expectations plague America! Look what we have for a President! But,
Gods in charge, not Obama. Further, our Father tells us to be sober-minded and tend to our Godappointed business providing for our families, showing faith not fear.
It is not just the older folks that let lies, fear and melancholy ruin their days. The young
married are not significantly different, though they have faith to be diligent, honest, marry, have
children and prove themselves worthy of the name of Christian.
However, having been lied to and misinformed by the media and Democrats, they cant quite
bring themselves to meaningfully and systematically save to provide for their future elder
years under God. They just know it requires big money they dont have. After all, usual
advisors and government officials are saying that it requires saving 15 and 20%+ of income!

The truth and good news is, that savings-conclusion is wrong. Investing

only 3% of present income will grow and make adequate, affordable and
meaningful elder-years provisions in just 20 years!
Lets look at details:
1. 3% of $25,000 is $750, of $40,000 is $1,200, of $60,000 is $1,800, of $140,000 is
$4,200. Fact, fact, fact.
2. Whatever you are living on now, you logically can live on it when elderly, etc.
3. Earning 20% Average Annual Gains for 20 years on the 3% investment in the Piggy
Bank builds a Principal sum that provides more than your past income.
Income
Level
25,000
40,000
60,000
140,000

3%

20 yr
cost

750
1,200
1,800
4,200

15,000
24,000
36,000
84,000

Growth
@ 10yrs
23,362
37,380
56,070
130,831

Growth
@ 20yrs
168,019
268,830
403,246
940,907

17% withdrew annually /

.0142 monthly
28,563 / 2,380
45,701 / 3,808
68,551 / 5,712
159,954 / 13,329

Recall all the charts and graphs that I use showing the daily performance of our fund, the SP500
and many others. There are daily variations. The market sums dip and swing. If shares are sold
when the market is down, principal losses may be experienced. Past performance does not assure
or guarantee future like-performance. However, minimum 20% AAGs are arithmetically
required to build an elder-year retirement in 20 years and maintain the Principal. Such is our
goal. When regular withdrawals are begun, a Reserve of 6 months withdrawals is established.
It may be worth noting that the 3% is only of the current FICA tax that promises to pay little
and less! Likewise, those with low expectations should not be surprised with poor results. We
seek to excel in obedience to the Lord. Lastly, many have hundreds and thousands taken from
their pay check because the employer matches up to say 5%. All such are futile except Average
Annual Gains of 20% are experienced. Sooo sorrrrry. Light and truth excel and guide!
I really, really like my new American Piggy Bank. I encourage you start it with as little as
$500 and an automatic bank draft for 3% of your monthly paycheck. Examine the possible
rewards.

Have VISION, Exercise Faith!

Young Americans Successful Financial Choices

David Holmes, Registered Investment Advisor

Investment & Estate Services

September 2, 2014A.D.

Ignorance, misinformation, carelessness . are costly, very costly.

The youth cant win with Social Security or even fixed annuities.

Generational Warfare: Indifferent Youth to support Tricked Oldsters

Todays youth face growing financial challenges. We are told by numerous organizations and
scholars that Americas average family income is in excess of $50,000. But, lets err on the
conservative side and say that the average 35 year old American worker has and will average a
minimum $45,000 annual income. Thus, his/her 6.2% FICA tax will be $2,790 annually. But,
BEWARE, this money will never be seen in their paycheck. Never received, never seen!
Soooo?
Todays seniors receive a Social Security check that the government, advisors and recipients all agree does not
provide a living income. Those Americans who average annual income over the last 40 years was $25,000 now
receive monthly checks for less than $900. Lets agree with the Social Security data that the average monthly check
may be about $1,294. The continuing advice of officials, politicians, financial planners and advisors is for Americas
workers to save more. My first question is, What about the 6% FICA contribution?

Lets just say that we bought a fixed annuity today with an annual periodic payment of $2,790
with the company providing minimum risk to the savings and a minimum 3% guaranteed growth
return but estimating that they could likely make 5%. What does this product sum look like at
age 70, after 35 years of contributing. And, what monthly payments do they guarantee, if any?
$2,790 annually after 35 years Assets
Annuity Payout My point: the younger
Americans, those under
Savings sum @ 3%
173,749
13,899
50 to 55, are tax slaves
Savings Sum @ 5%
264,593
21,167
for the politicians to
Saving with Market
Market Payouts hopelessly underprovide
Saving in SP500 @ 10% for 35 yrs 831,773
58,224
for the elderly whose
Saving with 20% annual, 20 yrs
625,031
106,255
funds have been misspent
and redistributed to pay other promises. The youth cant win with Social Security or even
fixed annuities. .
Nonetheless, with a fixed annuity using bonds, the money is always the familys until the
payout starts. Then, magic! By contract, the principal is forfeited and only the agreed upon
monthly payments remains. There is no family estate. Also, because of the use of low return,
safe and stable bonds, the established payout is insufficient. Lets say that the annuity payout
is agreed to be 8% for 20 years, age 70 to 90. Annuity Payouts: $13,899 or $21,167. Indeed,
low expectations with low results.
However, with the Market-based owned savings and professional management, at the end
of 20 years, a substantial owned and controlled estate is available. Still using the market and
withdrawing leaving 3% of the 20% expected gains, a substantial payout is available that offers a
family estate and meaningful family provisions: $58,224 or $106,255. Not so bad! Substantial!
Now, remember my point: the youth cant win with Social Security or even fixed annuities.
For whatever reason, they choose the wrong kind of savings vehicle or ignorantly trusted false
promises of politicians that bought their and their parents vote for safe and stable
government guaranteed redistributive-security as opposed to knowledge, self-responsibility and a
solid trust in the Living God. Risk is a real part of daily life but trusting Government as ones
Shepherd is evil, destructive and foolishly enslaving. Look at Social Securitys empty pantry!
Where are the outcries from the savings and investment industry and the pulpits across America?

Be assured, 6% is sufficient savings if productively saved with 20% AAG!

Explaining Life Insurance

By David Holmes, Licensed Insurance agent 800327-8963

r.8/9/14

A narrative an Immediate Temporary Estate & Provision!

My Christian view of life insurance is Bible-based and very different and sometimes even
offensive to some opinions, feelings and positions. Nonetheless, I see and understand it as
primarily a moral and honorable means of income replacement in the event of a dads death.
According to the Bible, a mans duty is to provide for his family and the man that does not is
clearly identified as having denied the faith and is worse than an infidel! Additionally, I strive to
honorably and effectively communicate as an American with First Amendment rights.
Because of the huge differences in immediate premium costs between what is called term life,
universal life and whole life policies and current budget affordability of what I estimate as a
correct and necessary sum, I always personally recommend competitive term policies like 10,
20 or 30 year level premium term policies of five to 6 times ones annual income that
arithmetically make moral sense if 20% invested earnings are expected.
Overlooked by many is the amazing reality that life insurance can provide an immediate but
temporary income-producing estate for the family. The life insurance death proceeds can be
merely used up (no returns on investment) shortly over time. Or, if the spouse is sufficiently
knowledgeable and uses the proceeds as a separate productive investment blessed by God, the
sum, productively invested, may produce a longer term estate and source of income but always
subject to varying returns produced, possible losses, taxes on gains, inflation and amount of
withdrawals. (Investing is a separate but related subject and is discussed in my paper
Understanding Investing.)

Insurance is not gambling. Gambling is the creation of a new risk against great odds that
did not exist prior to the bet. Life insurance, however, is the thoughtful, moral, riskminimizing of the existing death risk and the familys subsequent negative financial
consequences. The cost is usually very affordable particularly under age 70. While death is
certain, its likelihood and insurance cost vary primarily by age. Other factors such as health,
occupation, gender, tobacco use, life style, family history and avocations like bungee jumping
are considerations. Because of competition and differences of professional opinions, statistics
and business costs, many companies offer policy classes such as Preferred Plus, Preferred,
Standard and extra cost. Note however, that one companys Preferred policy may cost more than
another companys standard policy! Holmes services and Competitive Price knowledge are light
and necessary!
Just how much life insurance does one need? Of course, there are many views! Some, maybe
many, agents and advisors recommend from six to twenty times ones annual income. Such are
excellent sums for beginning discussion with the agent. While I never have heard of a widow
complaining of receiving too much in life insurance proceeds, I am very familiar with widows
left with none or far too little. Thus the prime importance of detailed discussion of use-specifics
with the agent that makes understandable sense. To me, simply arithmetically, an insurable dad
earning $50,000 annually with a wife and 3 children with no substantial savings having only
$50,000 of life insurance clearly has not made Christian family provisions. And while $50,000
may pay for a child attending college it will not provide the replacement income sum that I
recommend for most families. Beware, even $300,000 of insurance proceeds with 6% annual
returns will only provide $18,000 of before-tax annual income without shortly consuming the
principal or being devalued by inflation. Christians are called to be stewards not spending-idiots.
Thus, the obvious serious need to morally examine, and discuss specifics: earnings
expectations, moral duties and alternatives with David Holmes, a licensed, informed Christian
agent and Registered Investment Advisor.

Co-Signing Debt Ignored, More Government Sought

David Holmes, Registered Investment Advisor & Life Insurance Agent

August 6, 2014A.D. r.10/11/14

Cross Plains, TX 76443 254725-7141

What a sad, sad story: a daughters death

compounded by thoughtless irresponsibility
and now a plea for more government to
dismiss debt. Good intentions gone!
It is not Monday Morning Quarterbacking
to point out the thoughtlessness and
recklessness of the parents, the daughter,
the husband and the lenders. A further
question is also raised, where is the
widower and father of the three children?
The minister-fathers comment that There
needs to be some relief, is the worst! What
kind of minister is he not to acknowledge the
errors but beg for more government?

Assuming the now-deceased daughter Lisa

was in good health prior to her death, a
$150,000 20 year term life policy would
have cost peanuts, about $11 monthly. Lisa,
the parents or the husband could have and
should have so acknowledged responsibility
for this moral debt.
Secondly, since Lisa was a RN and her pay
was supporting or contributing to the
familys welfare and particularly with the
known debt, as a responsible, thoughtful
and prudent person, Lisa and her husband
should have had a $400,000 term policy
to pay the debt and replace her
remuneration. Again, a $400,000, 20 year
term life insurance policy for a 25 year old
female, no tobacco use would have cost
peanuts, about $20 monthly!

California couple struggling after being forced to

pay deceased daughters student loans
FoxNews.com 8/6/14

Socialism vs. Life Insurance

A California couple is speaking out after they say their

finances have been devastated over their daughters
student loan debt, which they are being forced to repay
after the woman died unexpectedly four years ago.
Steve and Darnelle Masons 27-year-old daughter Lisa
died suddenly from a liver disease, leaving behind
three children. Darnelle Mason, who is now raising her
grandchildren along with her husband, told Fox Business
the excruciating pain of losing her daughter has only
been compounded by the crushing debt.
She was doing what she really loved to do, Mason said.
So it is really just a crushing burden. Lisa Mason had
taken out close to $100,000 in student loans in order to
pay for nursing school, and was making payments on the
debt when she died. Steve Mason said he and his wife,
who had co-signed the loans, were contacted
immediately after his daughters death and were told they
must start making payments. We knew if she didnt pay
her debt we would be responsible by co-signing, but we
didnt know that if she died the debt would fall to
us, he said. Mason said his daughters debt has
ballooned to $200,000 and the payments exceed $2,000 a
month.
Mason, who is a minister, said some of the lenders have
given them breaks, such as lowering their interest rate,
and one loan was forgiven. However, he said the debt has
still been financially devastating and wrecked their
once-solid credit. Mason said he believes private student
loans should be regulated the same as federal student
loans, and should be able to be forgiven if the borrower
dies. He also said he believes student loans should be
able to be discharged in bankruptcy, like other types of
debt. There needs to be some relief, he said.

And, what about the lenders? Why did they

not require insurance coverage? We all know that house and car lenders responsibly require
insurance coverage for their money.
Lets be clear, life insurance does not and will never replace a person but it does make both
moral and financial provisions. Look at the mess and now acknowledged hardships. Surely, the
minister-father and co-signing-debtor-dad knows there is relief in this world and eternity for
repentant sinners but only in this world.

There was relief in plain sight and it is to avoid such disasters that I teach and make
available affordable term insurance! So sad, relief in plain sight rejected by daughter,
parents, husband and lenders! Such fruits of irresponsibility are fertile fields for atheism and its
Socialism-government.

(Actual Letter to Widow Explaining WHY to change

To the Psalm 23 Program and convert to Roth)

David Holmes Life Agency, Investment & Estate Services

POBox 117 Cross Plains, TX 76443 254725-7141
Serving Christ as Lord and Savior since 1956

September 24, 2014A.D.

Dear Widow Wilson,
Just a note. In round figures heres what I expect your $47,482 to look like with the
rollover/transfer and conversion.
First, well rollover the sum ($47,482) to Guggenheim as a traditional IRA.
Then, well convert about $15,000 of it annually, beginning in October this year to a Roth
IRA until it is all ROTHed.
Income taxes on the $47,000 converted will total about $7,000.
In 5 years I anticipate the fund will be about $118,150. In 10 years: *$293,996.
My recommended maximum *annual withdrawal will be about $49,979 and no taxes.
Without the Roth and the current tax rates, you would pay income taxes of about 18% or $8,996
annually! Annually! So, in the 20 years from age 71 to 91, with the ROTH you will miss
about $179,920 in income taxes! Thats a nice return on $7,000 in my thinking.
Of course there will always be ups and downs. Like life, there are risks. Neither myself or others
can guarantee or even promise our anticipated 20% Average Annual Returns or no losses. But
my anticipation is that we will do well seeking to serve Him faithfully. It is His orderly world.
As I normally say, gains are first, then there secondary advantages of available programs like the
Roth Conversion.
In Him,
David

Forensically Reviewing Retirement-Income Need

By David Holmes December 2012

The short explanation

There are many opinions and various rules for understanding, estimating and reviewing elderyears income needs. A sure conclusion is, if you are not making provisions, you are reckless, a
standout loser and a threat to the good of America. Living requires funds, yours or someone
elses. This is a major moral issue facing multitudes of Americans today. Welfare or selfresponsibility. I urge faith, knowledge and self-responsibility with deeds.
Step 1: Many estimate that they will need about $3,000 monthly to responsibly continue their
present lifestyle. Others estimate they will need about 80% of what they are currently making.
Step 2: A very large number of Americans are in the group having about 20 years of expected
income-producing time remaining. This is the youthful age group between ages 35 to 55. In just
20 years with attitude and spending changes and Gods favor, they can build an honorable,
understandable, affordable and working retirement. Those 55 can also have success.
Step 3: Understand and know the basic arithmetic of retirement saving. (A)The necessary
required annual savings must be budget-affordable or a maximum of 2 to 5% of gross income.
(B)An estimate of the monthly or annual sum needed must be identified and the (C)Average
Annual Return expected/needed. From these, the focus issues: Principal needed in 20 years
and annual savings are determined.
Step 4: Do the arithmetic. I took Regression Analysis in graduate school and received an A.
Such math is not needed and at best is misleading. Arithmetic answers our questions and need. I
estimate that with a current median income of $50,000 (4,200 monthly), the minimum monthly
retirement needed is about $36,000 annually or $3,000 monthly. Forensic Arithmetic identifies
the range of needed *AARs to both (1)reach our two objectives and (2)be affordable.2
Principal to annually
produce $36,000 @

6%

8%

12%

15%

*20%

$36,000
$600,000 450,000 300,000 240,000 180,000
Annual savings to
9,105
3,718
2,037
803
build Principal sum in 20 years $15,378
% of $50,000 income

30.8%

18.2%

7.4%

4.1%

1.6%

It is vitally important to recognize that usual, 5 Star or relative performance is at best

misleading. It tells us nothing about what AAR we need to reach our defined and necessary 20
year moral financial objective and ongoing income. Further, accepting usual performance as
our thinking-guide would be like comparing usual behavior to the 10 Commandments and
rejecting the 10 Commandments because the majority dont do them! Additionally, and likewise
vitally important, fund size, popularity, name recognition and relative Lipper rankings are
overwhelmingly meaningless. Its stability and AAR that count. Period. Period. Thus, if you do
not know what your current AAR is and what target AAR you must achieve, any fund is good
or bad as any other. And, you will be demanding politicians get money for you!
On 12/16/2010, I reviewed the performance of Allianz 5-star funds (Which their ad states as Quality
runs in our family) and the 50 largest mutual funds in America. The recorded and public 3, 5 and
10 year performances? Disappointing at best; more likely professionally identified as societal
financial disasters!

I expect that most likely Social Security checks will be received. The amount and buying power of the checks is the question.
Anyone relying on Social Security is neither wise, prudent nor intellectually honest.

Conclusion: popularity, size and 5-star relative ranking are meaningless. Monthly Stability
and Average Annual Returns equal or exceeding 20% are alone the marks of reasonability,
quality and prudent attainment.
Retirement income or a widows insurance payment is not magic, though most expect magic
therefrom. In Gods orderly world, the real world of finance and experience, according to what is
sown and cared for, such is the reaping. Having a sum of $200,000 will not last or work long for
most. If there are no gains and $2,000 monthly is used, the money will be gone in 8.3 years. But
if the sum is cared for with productive gains added and prudent withdrawals only, the sum will
both grow and last indefinitely. Like my hay field and neighbors land, it all depends on how it is
cared for and how much is knowledgeably expected and prudently withdrawn. The differences
are huge! Note from the table below, for a safe and enduring monthly withdrawal of $2,000
monthly with $200,000, a minimum AAR of 20% is clearly required.

How much and for how long will $200,000 last a widow or in retirement depends on the
AARs and prudent withdrawals. Leaving 20% of gains annually for inflation, etc. is
REQUIRED prudence. Withdrawing more will exhaust the funds and leave one looking for a
bread-from- stones satanic miracle! None have to believe this, but?? Remember, of the 17,000
mutual funds evaluated December 27, 2009, only 19 had AAR gains of 20% or more over the
last 10 years!
Examine this Responsible Annual income-from-$200,000 Table using various AARs.
Target Average Annual Return
6%
12%
*20%
WARNING
Minimum Safe Annual W/D rate
4.8%
9.6%
16%
Leaving minimum of 20% of gains for inflation,
Without 20% Average
Beginning Annual Withdrawal3
$9,600 19,200 24,000
Annual Profits, the
retired shall run out
Remaining Fund $ Yr. 1
202,400 204,800 208,000
of money and be on
Yr 5
212.291 225,179 243,333
welfare!
Yr 10
225,338 253,530 296,048
Check the arithmetic.
Yr 15
239,187 285,449 360,188
It is light from God.
Yr 20
253,886 321,387 438,224
It is clear and obvious from this presentation that it takes significant money, planning and Gods
favor to live well and responsibly before the congregation of the righteous; only evil men dont
care. See Psalm 1 and 23
In conclusion, be assured, adequate life insurance and provisions for a moral retirement are
enduring and identifying marks of good character, love, responsibility, diligence and selfdiscipline all by Gods grace.
Those, like President Obama and Democrats, that rail against families having money are
themselves the wicked and hypocritical. These are usurping-Socialists who see America as a
plantation, themselves as the owners, government as the engine to control us and we Americans
as their stupid tax-serfs whose tax monies are used to buy votes and corrupt!
Godly faith with knowledge is great power for freedom and righteousness.

Ponder this Money & Savings Table

Compounded Gains @ AAR
$50 monthly in 20 years
$10,000 today in 20 yrs
@ $100,000 annual gain

3%
16,605
18,601
3,000

6%
23,395
32,071
6,000

10%
37,801
67,274
10,000

12%
48,419
96,462
12,000

15%
70,686
163,665
15,000

20%
134,415
383,375
20,000

How much money do you need to retire in ____ years providing $______ monthly??
3

Withdrawal would be recalculated annually on funds available. This is expected to usually increase. By the 20
year, the annual $ withdrawal for the 6% AAR would increase to $12,186.

th

Fig Tree Lesson on Stewardship

David Holmes, Registered Investment Advisor

August 20, 2014A.D.

Luke 13

Christianity is true personhood! By Gods grace, weve been found, converted, forever
changed, enabled to walk in His light. We know both Whose we are and who we are. We stand
on His Word. The Fig Tree kingdom illustration alerts all that our God rules and godliness
includes thoughtful, purposed accomplishments. Reconciliation with God through Jesus is the
only Way, Truth and Light. The Holy Spirit supernaturally changes us, keeps us and leads us in
the path of righteousness, faith and duty forever. Our total life shows His holy presence.
The continuing neglect and refusals to teach clear Bible stewardship principles, lessons and
illustrations have been costly. It has left most church families intellectually and spiritually adrift,
economically estateless and at the mercy of the lying Destroyer of mens lives and souls and his
leftish politicians buying their votes with promises of gifts and provisions by redistribution,
Socialist redistributions! Provisions, says God, are for dads, husbands to provide!1Tim.5:8
So distorted has todays usual pulpit message become that Jesus words in Matthew is read as
BLESSED ARE THE POOR which is totally different from His actual words: BLESSED
ARE THE POOR IN SPIRIT . There is no truth declared and known, just feelings, opinions
and the pagan psychology of the fraud Freud. Indeed, the distorted gospel message declares that
the slothful and illiterate poor are victims of the diligent and prosperous! Divorce,
purposelessness, marriageless-cohabitation and lewdness rule.
Rotting fruits of this stewardship-neglect plague our families, the church, our communities and
America. Combined with the spiritualizing of many corrective Bible texts, multitudes feel guilty if they
have funds while most spend more than they make and are net debtors with no godly vision, no estate,
and no provisions for their winter years or emergencies. Godly purpose in church and public education
suffer. Monday-education has largely become a burdensome forever taxing-expense that prepares and
equips few. In the church, earnest and visible discipleship is ignored.Rom.12 There is no whole-hearted
desire in knowing the Word, understanding and applying our salvation in-Christ to all of life, a prime
goal of our godly overcoming Puritan forefathers. Victims they were not. Their God and Shepard was
Jesus, not government and His will their will. But, today! Whining, excuses, sloth, luck and suicidal
despair. Government is chosen as their faux provider!

The Virgins and Talent Kingdom of God message of Matthew 25 is severe! Five pure young
women and a fearful steward are not just left out but refused entrance, condemned! Thoughtless
unpreparedness and dishonest fearfulness are taught as damning sins! Such did Jesus teach
of the holy and righteous Kingdom of God!
Recall pouting Jonah in Jonahs closing verses: how our God expressed His concern for the
120,000 lost souls of Ninevah and their many animals! These Ninevaites were an evil, brutal,
murderous pagan folk. They truly deserved extermination and condemnation by mens
standards, Jonahs and Gods. But they repented at the warning: 40 days and you are done!
From the Ninevahs King to the dirt bag in the street, they repented lead by that pagan king!
And, our God spared them, that generation!
Life is revealed by Gods Word as more, far more than eating, drinking and making merry. More
than going through the motions and then dying. Jesus was emphatic, Seek first the kingdom
of God and His righteousness and all these things shall be added unto you.Mt.6:33 Earlier in Mt.
4, Jesus declared to Hell, the Devil, the world, men of all nations and creeds that man shall not
live by bread alone but by every word that comes from Gods mouth, Gods Word. Born
blindly narcissistic, they prove themselves to be fooled fools, dead men and lewd women who
listened to opinions, polls, feelings and words everything, anything except Gods. Choosing
to be just their natural selves, they die in their sin.
Sisters, young and older, recall the favorable commending recognition given to the blessed and
diligent wife of Proverbs 31! No lewd hotties here. Young man heed Proverbs One! Mom and
dad Psalm One and Twenty Three! Politician and rulers heed Psalm Two! Educator Psalm 19.

Whos Got the Best Retirement Plan, a Critique

By David Holmes, Registered Investment Advisor

October 8, 2014A.D. 254725-7141

This Bloomberg 2+ page article reveals 7 basic errors of the investment industry, advisors and
article writers: (1)low expected 5% returns, (2)focus on 401ks, (3)silence about Roths,
(4)silence to the 12+% fraud of the FICA tax, (5)vesting, (6)beginning salaries of $50,000 and
not the least (7)the actual
realities of a much larger
proportion of American workers.
Lets discuss FICA first. Not
only does FICA take 12+% out of
every paycheck but 12+% is a
huge sum! On a $50,000 sum it
is over $6,000 annually to
start! For the self-employed its
the whole $6,000 plus; for
employees, its $3,000+ from
each.
Waiting periods for vesting is
mentioned but the writers fail to
point out that FICA never vests
and according to two Supreme
Court decisions, no FICA sum is
owned or owed, its what
Congress decides!
The writers are saying that the
best significant retirement
hope is with a large company, a
401k, high salaries and company
contributions with all based on
the blind acceptance of the usual
low Average Annual Returns of
5%.
I am not opposed to 401ks, big
companies, etc. My point is gains are
first, gains are the critical difference.
Consider the $3,000 (Employees part
of FICA tax) in a 401k or IRA when
minimum 20% Average Annual
Gains are evaluated. The table
shows it all. (Note that the writers
above presentation of the major
company employee starting at age 25, with $50k starting salary, 3% annual increases, making the usual annual
contributions, accepting the
10
15
20
30
40
$3,000/yr Yr.5
usual 5% gains and with a
17,405 39,620 67,972 104,157 209,282
380,519
5%
final salary of $163,102
26,789 93,451 259,326 672,076 4,254,773 26,437,888 after 40 years would have
20%
the largest sum: $1,600,000 and likely be advised that he could only withdraw $64,000 annually if he
worked at ConocoPhillips. But my guys with the same $3,000, my recommended IRA making 20% would have over
$4million in 30 years!) Application: Most Americans didnt start with $50,000 beginning pay and didnt have a
final $165,000 salary. However, many could afford $3000 annually and with $672,000 after 20 years would
anticipate withdrawing $114,000 annually tax free from their ROTH IRAs! So, who has the best retirement plan?
Best advisor? Are the big companies and big pay jobs Americans only real hope? How about a 20% Average
Annual Gains focus with ROTH IRAs?

Young Advisors Sought, Recommended, a Critique

By David Holmes, Registered Investment Advisor

October 1, 2014A.D

For weeks, even months I have noticed the trend in industry publications See insert to urge the use
and hiring of youthful investment advisors. The rational seems to be that their youth will be
more acceptable to the much younger and prospering Millennial generation with big bucks to
invest. My fatuous comment is, obviously young and
inexperienced Colonels and Generals must be sought to
command and lead Americas youthful soldiers into battle
like the no-work-experienced, arrogant, Doctoral-degreed
Community Organizer from Chicago to be President of the
United States of America and Commander in Chief!
I sometimes hear older pastors, who should know better,
teaching that the present youth and teenagers are the
churchs hope. While there is an element of truth in the
statement, it is very misleading. Except they are born again,
gladly discipled by present godly and experienced leadership
and persistently demonstrate by mature confession and
practice, we can largely expect more Joel Osteens and Barack
Obamas! We wont discuss Joe Biden.
The focus on technology and trendsIbid, p.12
is not
persuasive. Truly, proven successful investment management leadership experience is urgently
needed by families, estates and companies, for both the younger and elder. It is a combination
of proven character, enduring experience, commitment to principle, demonstrated success and
learning from errors, especially leadership success gained during both major market changes
and periods of usual market gains.
The on-going combined professional refusals to identify a familys likely retirement-estateneed and the growth required to get there in a specified period indicts the financial industry
whether investment advisor, planner, CLU or CPA notwithstanding their multiple degrees and
credentials. How has FICA so
miserably continued with no
outcry from the financial
professionals? President Bush
was left in the wind when he
suggested part of FICA in the
market! What about life
insurance
agents
urging
grossly inadequate Whole Life
policies?
Will youth likely
identify and make these major
basic corrections or just go
along? How would they know what to correct? Who will they trust: mentors, employers or
polls? Is there no truth? Surely more of the same education and credentializations are not
promising. Who would listen to them because they are young and inexperienced?
Any look at a graph of the last 5 years of the market that includes the SP500 would persuade a
multitude of the likely longer-term profitability of well-managed funds. Consider the fact of
$100,000 growing to over $450,000 (RYVYX), $250,000 (NDX) or $200,000 (SP500) with Average
annual growth rates of 35.1%, 20.1% and 14.9% respectively! What will these youth say?

A One Year View

of Sept. 30, 2014A.D.

By David Holmes, Registered Investment Advisor 254725-7141

Its always healthy and instructive to view more than one fund. It gives perspective, balance,
understanding and weight to ones investment and advisor decisions. Obviously, such may also
question ones choices. In this case, viewing my chosen base fund (RYVYX) with such notable
others as the SP500 plus the largest mutual stock fund and largest bond fund demonstrates not
only the expected daily market changes but the overall wisdom of its selection for estate
building and income, present or future. Further, time periods used are important and any
unqualified use of longer time periods may lead to erroneous conclusions particularly if it is
assumed that a manager does or does not learn from mistakes.
I choose to use and print the BigCharts.com charts frequently, (as above) with my written
annotations because they are available to anyone with a computer. Thus, at any time, my
comments, statements, reports and evaluations can be factually and impartially checked. This
is true transparency. This also assists in factually refuting the ongoing twisted media and
liberal hype that owning property of American businesses (stock and use of the market auction)
is too dangerous and only government promises of aid, control and welfare can really be
trusted. Likewise, a single view of major funds can demonstrate the growth and
profitability available to wise choosers! Note, I dont send a city boy to the Cattle Auction in
Coleman to buy cattle for me! I go myself. I know what Im doing.

A 5 year view
Who would believe that
$100,000 would/could
grow to over $450,000
in just 5 years? The
SP500 grew to 200,000!

The October 2014 Update!

Do look at the 5 year composite chart. (It displays the daily record of the performance of our
RYVYX dynamic index fund plus the NDX, BRKA, VTSMX, SP500, DJIA and XAU.) Why is
the media all a-twitter now? They have space to fill? Fear mongering sells like pornography and
destroys but offers no constructive direction as I do!
Of course Id like to miss the temporary-declines and
such is what the chart shows: temporary-declines, except for
gold (XAU). Note: I have to judge daily. Is it the
development temporary or a major correction as was 2000
and 2008. It is an on-the-front-line judgment call. Its part
of my job. Yes, my revised Trend Analysis registered an
ALERT. My understanding and experience said it was
another temporary decline. Larger than many but
temporary; not a major market correction. Thus we stayed
and invested new funds along the way!
Hang the chart up on the frig where you can see it again and
again. Its the professional and longer-view. Just
consider that following such experienced-judgment your
$100,000 would have grown to over $435,000 in the 5
year span. Temporarily it has declined to about $370,000.
Would you rather have had it in a non-profitable bond fund,
gold, your local bank at 1%, the DJIA with $160,000 or
under a mattress still $100,000? Or, just maybe some of
it has been spent because you have run out of funds because
youve made no profit.

Psalm 23
1The

LORD is my shepherd; I

shall not want.

2

He makes me to lie down in

green pastures: he leads me

beside the still waters.
3

He restores my soul: he

leads me in the paths of

righteousness for his name's
sake.
4

Yea, though I walk through

the valley of the shadow of

death, I will fear no evil: for

you art with me; your rod
and your staff they comfort

me.
When these temporary-declines occur, my practice for those
regularly withdrawing funds is to place up to 6 months withdrawals in Cash or near-cash
Reserve. Thus, when the market has a temporary-decline we use funds from therefrom.
The October 2014 temporary decline is not the first time the market has temporarily declined,
and it wont be the last.