by John Bearss
Hi Jerry, this week I came across a very interesting article from the Associated Press written by Dan Wagner, AP Business Writer dated July 30th, 2010. The title of the article is “Bernanke financial disclosure shows no-frills plan”. Here is what he reported.
By day, Federal Reserve Chairman Ben Bernanke weighs dramatic acts to stabilize the U.S. economy. At home, he takes a more passive approach to finance.
Bernanke’s 2009 financial disclosure shows that he mostly left his money where it has been: in no-frills annuities, U.S. Treasury securities and mutual funds.
The only exception: He sold a Merrill Lynch mutual fund worth between $1,001 and $15,000.
Bernanke has been in crisis mode for the past three years, engineering vast financial bailouts and making critical decisions about how to wind down the Fed’s economic rescue programs.
He’s run meetings at which Federal governors decided to keep interest rates effectively at zero. That could explain why he earned less than $201 worth in interest on a cash account worth as much as $15,000.
Bernanke’s largest holdings are two annuities, both parts of a retirement plan he set up while teaching at Princeton University. One is a fixed annuity. The other will return more if the markets perform well. Each is worth between $250,001 and $500,000. Each gained between $15,000 and $50,000 in value last year.
There is no question we are living in volatile times with our economy. I personally believe that the closer we get to the return of our Lord Jesus Christ that we will continue to see more volatility in the markets.
On one hand the White House Administration and the politicians are telling us that the economy is improving. Maybe they are telling us that because there is an election in a couple of months. On the other hand we have many noteworthy economists telling us things are not so rosy and there is no recovery.
We have heard that we should prepare for inflation or maybe even hyperinflation, but now we have been hearing talk about deflation possibly being a forerunner to inflation.
We are not seeing any improvement in the housing sector and the employment picture still looms over our heads with no improvement in-sight.
At last check of the US National Debt Clock reveals that the Social Security, Medicare and Prescription Drugs liability is now over $110 trillion dollars.
So let me repeat, we are living in volatile times. So how do we keep our money safe?
How do we guarantee we’ll have enough income to live on through our retirement years no matter what the economy does next?
Maybe Ben Bernanke, the head of the Federal Reserve who is in charge of all the banks in the United States, and by understanding where he puts his money is giving us some very loud clues.
So where does Ben Bernanke put his money? According to his 2009 financial disclosure, the majority of his money is in annuities.
I trust this financial insight has been helpful and I look forward to the next time when I can help you provide the foundation for a lifetime of financial independence.
About John Bearss: John R. Bearss is a Retirement Specialist with the Christian Advisor Referral. He has been helping clients and financial professionals understand financial strategies for 24 years. To speak with John Bearss directly, call (800) 609-5530.
Disclaimer: John Bearss is a registered representative of and does offer securities through Sicor Securities, Inc. Lifetime Decisions Management, nor it’s representatives provide legal or tax advice. Please consult your CPA or qualified tax advisor before making any decisions. Lifetime Decisions Management, Inc. is not a subsidiary of nor controlled by SICOR Securities, Inc.