Stewardship IV Report for October 2015A.D.

www.davidholmesagency.com
Dated November 3, 2015A.D.

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

Consolidated Report for October 2015: For October: 23.1%, last 12 months: 17.4%, last 2 yrs: 68.4%.
Note: all our Individual Reports are daily and individually calculated using the professional
services of CapTools. This services calculations and numbers meet the requirements of the strict
SEC reporting and calculation standards.
NO SURPRISE, the much prophesied September market crash did not happen. It must be
remembered, though using some truth and facts, false fears were and are major destructive
factors in personal, family, community, national and international decisions. The fear of
market volatility and emotional
sales of stocks is an ongoing
Last
Last 12
2014
Periods
2013
Latest
2 years
example. Rather than market
months
month
volatility each should focus on the
11/1/13
Oct. 2015
11/1 10/31
Fund/month/s Year
Year
fact that we are part owners of 100
10/31/15
of the best and largest companies in
80.0% 29.5
23.1
17.4
68.4%
Psalm 23
America. (See the Prospectus.) Thus,
SP500
29.0% 11.5%
8.1
3.0
19.0%
whether your report indicates
RYVYX
58.0% 34.0%
21.4
17.0
62.5%
$5,000 or $10 million or in
VBTLX
-5%
3%
.-2
-.5
+.05%
between, we are part owners of
productive, well run businesses with
longer term market results required for successful estate building and retirement age income.
Thus the 20% Average Annual Return standard which most advisors refuse to address.
Basically, the American economy is in good shape. During our 7 year long recession of Obama
and Democrats, businesses have kept their bottom lines in the black, but the on-going recession
has killed employment. Lastly, I prefer 3 to 5 year graphs for analysis, however a minimum
graph-period for informed choices is one year. My longer-view market outlook: in the
remaining 2 months we should make our minimum Average Annual Gains of 20% or more. See
my mid-month letter on page 2.
Term life insurance is a first priority for family stability. The new TA TrendSetter LB policies
are new and cost-effective, offering significant benefits and are recommended. See included paper.

Medicare Annual Enrollment: Oct. 13 thru Dec. 7. Dont forget. Dont neglect. And, dont
overlook evaluating the prudence of having Part C and D or Medicare Supplement insurance
coverage. Many doctors will not accept Medicare patients if you dont have a Medicare
Supplement because they wont get paid! Thus, I do recommend a Medicare Supplement
and my office offers them.
My review comments on a FORBES article(p.4) is alarming, typical and informative. It
boasts of a mere 9.4% Average Annual Gains over the last 5 years!
Re: The Holmes Agency MISSION STATEMENT: We do expect victories and successes.
Additionally, by personal and personnel growth, we provide continuing honest reports,
information, comments and education outreaches that will encourage the practice and better
understanding of the personal and societal glories, triumphs, standards and duties of
traditional Christianity that grow from conversion and Biblical discipleship. Why all this?
Jesus has risen, rules and is returning! There is the coming resurrection of all. Psalms 1,2,19,23, 32 & 103
Page 7 focuses on how little $300,000 to $500,000 of life insurance costs and how much
family provisions it provides! All men without such insurance should be embarrassed and now
repent. Page 8 has my comments for the President-elect

2015A.D. Mid-October Special Review

Review by David Holmes Registered Investment Advisor 10/15/15

Over the last 12 months, we have gained about 24%. But, several have been concerned about the
market gyrations and the future of their funds (savings). I understand, thats why I write this
mid-month letter.
This 3 year graph is an accurate picture of our funds: both in its gains-superiority to many
other funds, including the well known SP500. Additionally, I purposely show the largest bond
fund (VBTLX), the largest mutual fund (VTSMX) and gold (XAU). The Magellan (FMAGX) is a past
whiz that has fizzled thus illustrating the need for advisors and investors to be informed, stay
on their toes and change as needed. The SP500 grew to about $142,000 with a 12.4% AAR.
It is a longer-term view as opposed to short term It remains my understanding and opinion
that any view less than 1 year is largely and probably misleading though factual. This is a
matter of experience and professionalism. I prefer 3 and 5 year views.
Always remember, investing is a longer-term Christian-commitment based on historical facts,
experience, obedience, true faithHeb.11 and Mt. 25 and Americas blessings from our Living God
not random chance and circumstance, opinions or feelings. And not money but property.
Lastly, the included article on the back page regarding the FORBES article on TWO SIGMA
INVESTMENTS should be of significant interest and an alert to each.

Note in the shown 3 years (10/12/12 thru 10/13/15) $100,000 in the RYVYX has grown to
$220,000 with an Average Annual Return of 30.0% which includes the temporary August
decline. Yes, in August before the temporary decline, the $100,000 had grown to $255,000 with
an AAR of 39.7%.
I fully expect we shall continue to profit understanding that the market has these temporary ebbs
and persisting flows. Further, we should understand that our selective use of the Market and
available offers are far better rewarders of our money than the government including so-called
Social Security.
In His service,

David

TransAmericas New & Unique Life Policy

By David Holmes

Licensed Insurance Agent in 49 states

October 28, 2015A.D.

LTCI

TrendSetter LB policies are prudent. Like understanding that a Medicare Supplement

insurance policy is a prudent provision against escalating, budget-breaking medical health
expenses, just so with choosing these new Trendsetter LB provisions. Thus, this paper.
This presentation is not about convenience but prudent provisions for developing family
medical and health issues. Such long term issues are expensive either in lost income or facility
care. Though excellent facility care is still available for around $100 a day, some facilities cost up to
$300+ a day. (Even the $100 daily cost is an annual sum of $36,500 a year the cost of a new car every
year and no trade in.) Thus, prudent, responsible people make provisions by savings, insurance or

family financial arrangements. Many informed Americans will choose the Trendsetter LB.
Just this spring of 2015, TransAmerica introduced their TrendSetter Living Benefits term
policies. The TrendSetter LB policy is truly unique, different and valuable. Three benefits are
integral to the policy. They are not add-on riders. Of chief import are its Chronic Illness
Accelerated Death Benefit and Critical Illness Accelerated Death Benefit.
Notwithstanding the advancing age of Americas population, provisions for these issues (Long
Term Care and Disability) rarely receive the careful consideration prudence demands. Waiting
until an emergency admission to a facility or loss of income are best be avoided. Some remain
under the impression that Medicare covers long term care. Note: Medicare does not cover
Long Term Care except for a short period and then only under narrow restrictions.
The first Benefit function as a 4 year Long Term Care provision; the second as a true Disability
provision. From the TransAmerica Quick Facts page:
The Chronic Illness Accelerated Death Benefit Allows the policyholder to accelerate up to 24% of
the policy face Amount per year when he or she is determined by a licensed health care practitioner to be unable to
perform two of the six activities of daily living: bathing, continence, dressing, bathing, toileting and transferring for a
period of 90 consecutive days, or to be suffering from severe cognitive impairment for a period of 90 consecutive
days or more. The maximum amount that can be accelerated over the lifetime of the insured is the lesser of 90% of
the face amount of the policy or $500,000.

The Critical Illness Accelerated Death Benefit is similar. From the Fact Page: Enables the
policyholder to accelerate his or her death benefit in advance of death when he or she is determined by a licensed
physician to have suffered a critical health condition, such as cancer, heart attack, stroke, a major organ transplant,
end stage renal failure, Amyotrophic Lateral Sclerosis (ALS) blindness, or paralysis due to the loss of two or more
limbs. The maximum amount that can be accelerated over the lifetime of the insured is the lesser of 90% of the face
amount of the policy or $500,000.

The Terminal Illness Accelerated Death Benefit: Provides the ability to accelerate a portion of the
policys death benefit as a lump sum payment in advance of death when a licensed physician has diagnosed the
insured to have less than 12 months to life. The maximum amount that can be accelerated is the lesser of 100% of the
face amount of the policy or $500,000.

With elder ages now common into the 90s, medical expenses increasing, fixed benefit pensions
becoming rare, thoughtfulness and arithmetic urgently suggest prior preparation is prudent.

Very Practical applications:

The TrendSetter LB is not the lowest cost term, but its value is huge at a small price increase
as opposed to costly and separate Long Term Care Insurance or Disability policies.
Thus, a $300,000 TrendSetter LB policy can provide three+ annual payments of $72,000
The Trendsetter LB is available in 10 thru 30 year level premium periods. Thus a 40 year
old would be able to provide these significant provisions thru age 70 and an 80 year old to age 90!
Finally, having chosen such value, provisions and low prices, family money is available for
the family to build a separate true and productive Christian Family Estate as opposed to Socialist
dependency in the elder-years. Only $50 a month for 30 years is expected to grow into
$850,954! And, if something happens to dad, these are substantial and prudent provisions.

Stunning Investor Blurred-Acceptance of LoGains

Fund Size Growth vs. Fund Investor Profit

Article Review by David Holmes, Registered Investment Advisor

October 12, 2015A.D.

800327-8963

My argument-focus is the glowing emphasis on the remarkable fund growth and profits for the
managers as opposed to profits for the investors. The growth was from $5 billion to $28 billion in 5
years with its largest fund (Spectrum) having annual average return of 9.4% net of fees since 2004.p.112
This recent FORBES articleMath-Sters of the Universe, 10/19/15, by Nathan Vardi, pp.110-116 reveals shocking
investor misunderstandings and dislocations of funds. This is a revealing article build the
fastest growing big hedge fund on the planet and make multibillionaires out of its two
founders: John Overdeck and David Siegel and their Two Sigma Investments. Part of the
excitement is their heavy use of very advanced mathematics. They gather seemingly random bits of
information and try to detect patterns that can be used to forecast the price direction of stocks and other securities. They
are card-carrying members of the growing tribe of quants who use big data and machine learning in an attempt to beat the
market consistently.p.112
They have been successful in their funds growth aims. But, consider their unremarkable
returns for investors! According to this article, within the last five years, the think tank has
quietly swelled from $5 billion to $28 billion in assets.p.112 The articles writer focuses on the ability of
management to grow the assets and commanding higher fees saying Growth + returns + whopping fees
= a great wealth-building formula. P.112 (For whom? dl)
How personally successful were the two founders? VERY! This year Overdeck and Siegel debut on the
FORBES 400, each with a net worth estimated at $2.8 billion. p.112 But, what of the investors?
Obviously, their many large investors see the 9.4% average annual returns as nearly double the
5% usually expected. Additionally, the less volatile short term returns in the recent August 2015
temporary decline made for comfort and maybe satisfaction. However, compared to other actual
reported management performance There are are no real accomplishments of the TWO
SIGMA INVESTMENTS. Nor, is there wonder in their heavy math use. WHY?
According to the WSJ Mutual Fund Screener, in the last 5 years, as of 10/9/2015, of the 21,348
funds, 112 have had gains exceeding 20%! Thats 112 funds with gains greater than 20%
over the last 5 years! 112! Yes, the 20% is double their reported 9.4% gains. And, the top gainer
had average annual gains of 39.5%. WOW! 4 times the wonder-returns of the reported TWO
SIGMA INVESTMENTS. So, yes, I seriously doubt that the TWO SIGMA INVESTORS are or
were aware of such substantial factual gains. Are they ostriches???
Of course there should be no law or rules against the TWO SIGMA INVESTMENTS and their
procedures. I have no objections against fees, wealth or building wealth. In truth, I am for such. My
argument is the writers blurred focus. I certainly have no objections to making multi-billionaires out of
the founders or advisors. My question issue is, what kind of stewardship is blind to substantially
better gains, whether investor or manager?

Is it quaint of me to ask, what kind of editorship allows such articles without some kind of
meaningful enlightening comment? The WSJ, FORBES, FORTUNE, INVESTMENT NEWS,
MONEY all claim to be impartial. However, I do not recall a single article over the years that
ever mentioned the WSJs MUTUAL FUND SCREENER. Not one. Yet, it is no secret and a most
remarkable comprehensive tool for funds and details. Not perfect but remarkable and useful.
Again, not only, how many investors have been told of the necessity of the 20% Average
Annual Return standard but how many advisors have alerted investors to how many funds have
averaged over 20% over the last 5 years? Millions only earning 9%!!! Why not change now?
In closing, it is clear when the two faithful and one wicked stewards were called for
accountingMt.25, our Gods standard was faith in Him and expected profit!

Understanding Annuities, BEWARE

By David Holmes Licensed for Annuity Sales in 49 states

10/21/15

800327-8963

FIND A FATTER PAYOUT, 11/2/15, p.68

FORBES
presents informative details about annuities: cost, set
lifetime payout after 20 years but total forfeiture of any residual value on death whether at age
80 and a week or 101. The presented competitive details of the article are in the below
included box. Pay $100,000 at age 60. Then, after 20 years, upon reaching age 80, the buyer
receives $2,792 a month ($33,504 annually) for as long as he lives. Is this an acceptable and
safe means of providing assured income for ones later years? And, we are living longer. How
would anyone know?
Obviously, in just 3 years of payout, more than the
original $100,000 has been received. But, over 23
years has passed. Notwithstanding inflation, money
has earning value whether in a CD, Treasury,
Bonds, Mutual Funds, Cattle, Gold, Real Estate and
many more. Each has both specific and general
advantages and risks. The Annuity is rock solid cold:
the Company will pay $2,792 monthly for as long as
the buyer lives upon reaching age 80. It is that direct
and arithmetically simple. But . Since we cant eat money, what will the payout buy in 20
and 30+ years? As I see the matter, the major issue is the annuity companies guarantee only the
stated number of paper dollars not the buying power.
Thus, an Annuity is truly a huge decision with binding provisions are there no
alternatives, reasonable alternatives with more flexibility and better remaining estate solutions
for the family?
Notwithstanding the continuing usual media rant against the Market, the Market offers families
the meaningful elder-age security. So, lets contrast several uses of the Market against the
given best Annuity offers using the same $100,000 and 20 years keeping in mind the usual
temporary ebbs and flows as opposed to the static, frozen, high inflation risk, risk-all annuity.
Thus, well use the well-known SP500 with its 9% AAG and my chosen managed RYVYX fund
anticipating a minimum 20% AAG showing likely 5, 10, 15 and 20 year points. We should
Yrs
SP500 @ 9%
RYVYX @ 20% realize that such a program will work at
any age, not just from 60 to 80.
0
$100,000
$100,000
For simplicitys sake, well anticipate
1
109,000
120,000
only withdrawing (W/D) 2/3 of the
5
153,863
248,832
anticipated earnings rate: 6% and 13%
10
236,736
619,173
thus leaving the fund to remain and grow
15
364,248
1,540,702
for the family and future while still not
only providing substantial annual income
560,441
3,833,759
20
but flexibility and profit. Recall the
Annual W/D
$33,626
$498,388
Illustration of the Talents in Matthew 25.
Thus, I remain factually and professionally opposed to annuities, persuaded that only very fearful
people misinformed by the liberal media always ranting against the Market, favoring more
government and swayed by a smooth-talking salesman would buy such an annuity. Warren
Buffets fund averaged over 20% AAG for decades what insurance and annuity salesmen
have ever told their clients of such profits? Moreover, the chart illustrates why I recommend the
use of ROTH IRAs with the anticipated 20% returns. A Biggee: No taxes on large estates.

Our Real Retirement Thinking

By David Holmes

Registered Investment Advisor

September 28, 2015A.D. 800327-8963

Long ago it was written, Where there is no vision, the people perish.Pro.29:18
With the market temporarily down, many are having second thoughts about their savings and
tomorrow as if today is all there is. Or to be more frank, they are like unbelievers saying God
may be but we dont know anything about what tomorrow may be, This is only about money,
not God! But I say, really! WHY do they think such irrational thoughts? Has our God not
said that we shall reap as we sow.? Are we listening to God or the unbelievers and liberals
who hold God in contempt?
Hence, I ask, how many of
Hence, I ask, how many of todays over-65 Americans todays
over-65
Americans
struggling with their under $1,200 average monthly struggling with their under $1,200
Social Security check, ever thought or had the vision to average monthly Social Security
think, investigate and plan on having their own American check, ever thought or had the
Freedom Estate that would replace the income level of vision to think, investigate and
their better earning years? Or, did these believe in magic plan on having their own
and the tooth fairy as they voted for Democrats promises American Freedom Estate that
of caring for them?
would replace the income level of
Example: For those who were making $60,000 annually, I their better earning years? Or, did
expect by age 70 they could monthly withdraw $5,000 these believe in magic and the
monthly from their growth estate with confidence that it tooth fairy as they voted for
would continue to provide and pass to the family, under Democrats that would promise to
care of them?
God? Only this is real Retirement Thinking?
Some will say and many do say, no one is making your expected 20% Average Annual
Returns. But, the facts are different. (As of 10/13/15, 112 mutual funds were making more than
20% Average Annual Returns!) And, truly, I dont expect all or even most to make such returns.
But, some are. The fearful not only have no faith and no vision but they refuse to sow!Mt.25 More,
I will not join in their unbelief, fear, disobedience and low expectations. I can only urge all
to repent, hear, obey and trust the living God of our Puritan forefathers. Our God lives and
rewards.Heb.11:6

How many, or should I say, how few know how little they would have to save annually for 20

years to provide $60,000 of annual income indefinitely? Is self-reliance under God and in
obedience to Him unthinkable?
And, how many professing Christian men have made adequate, understandable provisions for
their family in the event they leave this earth unexpectedly before age 70 or 90+? Do these
also believe in magic, the tooth fairy or money involuntarily taken from their neighbors?
Do they not ignore the 8th Commandment?
Indeed, I do believe one of the best Christian solutions for a widow with young children is remarriage. But, what
good future vision does a victimhood-widow with no money, unpaid bills and three, five or six young children
have? What man would leave his wife thusly unprovided for when $300,000 of 20 year level term only costs about
$35 a month??

Yes, many wives have said the family could not afford the $35. But how many can afford
being a victim-widow with no money and many bills and maybe a small Social Security check?
Are they blind or believe in luck and the tooth fairy?
One of the blessings of conversion is that God has not been given us a spirit of fear but of
power, love and a sound mind! 2Tim.1:7 So, just like we dont attempt to drive our cars on an
empty tank, dont drive on the wrong side of the road and check our spare tire, by His grace
also, we have light, vision, rational moral finances and make these provisions. 1Tim.5:8
Yes! Traditional Christianity gives light and grace and blesses and blesses!

Looking at Life Insurance

By David Holmes

Life Agent in 49 states September 18, 2015A.D.

Godly Provisions & Affordable Costs

$35 a month for $4,250 a month provision
vs.

Fear, Victimology and Socialist Dependancy

$300,000
20 yr. level
Age 45

$35.10/month

This same $300,000 invested

at death is expected to provide
$51,000 of annual income
indefinitely!

Lets look!
$51,000 annually
Or
$4,250 monthly
For only $35.10 a month!

Unlike Socialism and other forms of

irresponsibility, gross ignorance and moral
indifferences, the free market of traditional
Christian America offers every home personal and affordable alternatives to poverty,
dependency, victimhood and vain hope in the good will of the state!
Consider that Social Security takes 6.2% of every paycheck (on a $60,000 salary, thats $3,720
annually and $310 monthly) for a puny temporary childrens SS check of maybe $1,900
monthly if there are several minor age children. Note: with Social Security, the victim-widow
gets nothing until age 60!
David Holmes has never heard of a family or widow having too much money.
Not one! Neither have you!
However, it is common for a family and widow to be left as victims with little money, debts,
expenses and very hard times. Many families lose their home and more! Life insurance cannot
replace dad but, life insurance can replace his income as indicated above. Just think, for $35
monthly the widow and children can have moral and assured provisions for a godly and prudent
future under Christ.
Yes, I encourage 20 year level largely because it is affordable and will get dad and the family 20
years down the road at a guaranteed level price. 10 year level at age 45 is only about $19 a month but
another 10 year level at age 55 is currently $43.77 if in the same excellent health.

In the meantime, with the life insurance in effect, dad can be building a $300,000 familyowned estate with a ROTH IRA investing $1,340 annually ($112 monthly) for the 20 years. I
estimate minimum Average Annual Gains of 20%. WHY? It is what it takes and what we are
doing. (As of 10/15/15, 112 mutual funds had average annual returns exceeding 20%!)
Many overlook the love-meaning of John 3:16. God didnt emote over the lost condition of
man, He provided His only begotten Son. Likewise, while experience and demographics show
that most 45 year old dads will likely live into their 90s, some will not, thus the real loveimportance of life insurance and long-term estate-building with 20% gains. Further, if dad keeps
investing for 30 years until age 75, we expect the family estate to grow to well over a
$1million!
Hows this for vision, perspective and good news in America!

Holmes Thoughts for the 2017 President-elect

By David Holmes

Registered Investment Advisor, Life Insurance Agent, Rancher, Retiree 9/6/15A.D.

America is in grave jeopardy, internally and externally The President has alienated
friends and encouraged evil. Immediately cancel, delete Obamas offensive and lawbreaking
Executive orders as mentioned by Senator Cruz. Give Department Heads two weeks to take
charge and submit report of recommendations. Get it done.
Immigration: The law is not broken. Enforce present law while closing Mexican border,
terminating anchor baby gap, require employers to verify status ($1,000 per day fine for each
violation), $1,000 per day fine for all violators overstaying visas, It is a privilege to be an
American and be in America.
Military: Methodically and immediately re-build military to safe levels.
VA: Fire all administrators guilty of cooking the books reports, insure Vets have and get timely
treatment, get cracking.
Welfare: Welfare is not charity. Limit food stamps, housing, . To a maximum of 14 months.
Require work of each able bodied person. Require single moms give name of father of each child
or no assistance, Cheats will be sought out, prosecuted, fined and punished. Rewards for info!
Life is tough, suck it up like most American working people have. Do better.
ObamaCare: Rescind, delete, Allow buyers to purchase policies they want regardless of state.
Energy: Rescind the ethanol requirements, approve Keystone XL pipe line, ...
Freedom of Religion for Christianity: Recognizing Americas traditional Christian heritage,
Foreign Policy: America first! Put all on notice that threats against America, its citizens or its
interests and allies are evils, taken seriously and those making them or hiding offenders will
suffer destructive consequences to significantly diminish that threat or extinguish it.
Social Security*: Obviously major changes have long been required. Essentially, the Trust Fund
is non-existent! Pursue course to give each 55 and under the right to have their own private
account with money in Americas stock like the SP500. Those older to be able to buy out and do
their own and manage account. Those who stay will have, at most, the proportion of present
payments reported as likely presently about 78%. There will be no COLA.
Debt: A balanced budget required. The only exception is national emergency like war.
Taxes: Immediate flat 15% tax with no exceptions. Long term goal is a 10% flat tax. Instead of
less than 50% of Americans financially supporting America 100% of Americans pay.
Impeachments: Impeach judges who clearly and simply disavow and/or fail to honor the
Constitution and their duty to uphold it or create new law, rights or xxx like legalizing baby
murder, homosexuality,
Ballot Security: Recognized citizenship verification and picture identification cards are required
for voting.
I Recommend the transition of all guaranteed fixed Pension Plans: Federal, Military, State,
Municipal, School or private enterprise to personally owned fully funded 401k or IRA type.
Type program is secondary, Minimum 20% Average Annual Gains are primary.
One Year Mandatory Full-Time Military Training for all ages 18 through 27.
The upcoming 2016 Primary and National elections are of grave importance. More Obama
contempt for the law, the Constitution and Amnesty will kill America.
As many as four Supreme Court justices will be chosen by the next president!