What Would Warren Do?

Warren Buffett's biographer reveals what the master himself is doing now to protect his money and profit like crazy in the months and years ahead...

Our Bottom Line expert recently spent thousands of hours with the man many consider the greatest investor of all time. When times are grim, he has typically been at his brilliant and visionary best. Here's what you desperately need to know now...

Including, how he's positioning himself to snap up stocks at a fraction of the price others gladly paid. YOU can do the same right now.

As the economy teeters on the brink of a depression-style disaster, many Americans—including our politicians—are turning to Warren Buffett for commonsense advice on how to survive and even thrive in these tough times.

Will the economy get worse? Is this just the beginning of a decade-long downturn? How low can the market go? Or is it time to start bargain hunting and putting your capital at risk again? For the smartest investors, these are the WRONG questions. There's really only one question you need to ask yourself right now...

"What would Warren do?"

When times are tough, there is no smarter, safer place to seek out financial wisdom than Warren Buffett.

But to really answer this question, you need to go beyond the public interviews, the newspaper articles, or a Google^® search. You need to uncover Warren Buffett's personal investment philosophy and principles—the secrets that may never appear in the popular media.

That's why we recently asked Bottom Line contributor Alice Schroeder to reveal Mr. Buffett's secrets for growing inevitably richer—even in tough times like these. Ms. Schroeder recently spent thousands of hours with Mr. Buffett.

"While I was writing his biography, he gave me unprecedented access to his work, opinions, struggles, triumphs, follies and wisdom," Ms. Schroeder told us. This unique access goes WAY beyond what you see in the popular press and reveals the fundamental secrets Warren Buffett is using right now to both protect his money, and then position himself for astounding profits when the economy bounces back.

You'll find ALL these secrets revealed in a new financial volume we've just put the finishing touches on.

It's called 5 Times Richer, 5 Times Safer. And I'd love to send you a copy for FREE—and also include a FREE 3-month, Charter Subscription to our new personal finance letter, Bottom Line/WEALTH—your monthly road map to growing safer and richer in times like these.

(Editor's note: Don't worry, by the way, when we say "free"—we really mean it. You're never obligated to spend a single penny... honest.)

We'll tell you more about all your FREE Gifts later in this report. First, let me demonstrate how your FREE copy of 5 Times Richer, 5 Times Safer will help you follow the lead of master investor Warren Buffett for long-term safety and almost unbelievable profits. For example, you'll discover...

• Warren Buffett's "Simple" Secret for Avoiding Popular Investments Almost Guaranteed to Crash. From 1998 to 2000, Buffett shrewdly avoided the "Internet bubble" that caught all of Wall Street off guard. Then, in 2002, he warned the world of the HUGE risks behind sub-prime mortgages and fancy "derivatives" that have since crashed. But how did he manage to avoid these disasters when everyone else was duped? His stunningly simple secret is revealed in your free Guide.

• How to Position Yourself NOW to Cash in BIG on the Market Recovery. This is the secret that helped him scoop up shares of General Electric^® and Goldman Sachs at a fraction of the price others gladly paid. If you're not using this secret now, you're NOT going to cash in when the markets come roaring back.

  You'll also discover why Buffett believes you must NEVER sell into a financial panic. How he never permanently lost more than 2% of his own personal worth on any investment and so much more.

  In the same Guide, you'll also discover...

• Which Stocks Are Set to Skyrocket Under the New Administration in Washington. Now that there's a change of guard in Washington, certain stocks and sectors are poised to skyrocket as the economy bounces back. They're inexpensive now—but they won't be for long.
• The Secret of the RECESSION-PROOF Portfolio. Nervous about your money? Who isn't? That's why we asked four of America's top financial experts for step-by-step instructions for what you must do right now to protect your nest egg.

  It's your complete guide to protecting and profiting from your mutual funds, stocks, bonds, savings and mortgages. This is what the smart money is doing right now. Your broker has NO clue about these tricks. Your financial adviser? Clueless, too. These are the money secrets that let you sleep at night—no matter what happens on Wall Street.

• Turn the Tables on Rising Energy Prices! How to Cash In BIG as America Desperately Searches for Alternative Energy Sources. Example: Expect nuclear power to make a big comeback in the years ahead. Even the staunchest environmental critics have begun to realize that nuclear energy is a low-carbon, cost-effective source of energy. You need to be ahead of these trends to profit... and we'll show you how.

• The NUMBER ONE Wealth Builder. The Median Net-Worth Income of People Who Do This Is $250,000. That's three times the net worth of an average worker. What you need to know now.

Protect Your Retirement Savings

Primerica : Yvonne Williams Best

Problems in the stock market have affected virtually every sector of the economy, but the impact on retirement accounts has been the most worrisome for many people. That’s not surprising, since retirement accounts have lost somewhere in the neighborhood of $2 trillion during the last two years due to market declines, according to Congressional Budget Office estimates. Don’t despair, however, because there are steps you can take now to protect your remaining savings, according to the Virginia Society of CPAs.

Head to safety

For many years, investing in stocks or stock mutual funds has seemed like a surefire way to make money and expand savings of any kind, including retirement portfolios. For that reason, many people who are in retirement or within a decade or so of getting there have kept a large portion of their nest eggs invested in the stock market.

As a general rule, however, that’s not the best investment choice. Stocks are a relatively volatile investment, meaning that their prices can rise or fall a great deal in a short time, something we’ve certainly seen played out in the stock market during the last year. As a result, CPAs generally advise that it’s important to reallocate your assets by putting more of your money into fixed investments, such as bonds or money market mutual funds, as you near retirement age. That way, you protect yourself against the kind of sudden losses that can occur when the stock market goes sour.


Consider skipping your distribution

Tax rules require that you begin taking required minimum distributions from your retirement accounts by April 1 after the year in which you turn 70½. For retirees whose retirement savings are invested in the stock market, that means that, in order to get the distribution, they will have to sell stocks or cash out of stock mutual funds that may have declined significantly in value during the past year. Once those losing investments are sold, the retirees have no chance to recoup their losses on them.

A new law passed late last year offers some relief. Under the Worker, Retiree and Employer Recovery Act of 2008, you do not have to take the required minimum distribution from most retirement accounts in 2009. It applies not only to 401(k) and 403(b) accounts, but also to traditional individual retirement accounts, among others. In other words, you will not be forced to take required distributions on those losing investments.

The new law is one of many issues to consider in handling distributions from a retirement account. To learn more, you should talk with a trusted financial adviser, such as your local CPA, to be sure you are fully informed about your options.

Get more information

The Solution: Primerica’s Financial Needs Analysis

Complimentary • Customized • Confidential

To get where you want to be, you need to know where you are! The FNA takes a “snapshot” of your current financial situation and can help you make better choices about your money and your future. The FNA will provide you with your personalized Financial Independence Number!

You can also get more information about retirement — and on a wide range of other financial issues — from Primerica's website. The site contains practical details about many important financial topics.

Primerica : Yvonne Williams Best

How to Handle Unemployment

In a troubled economy, many companies are cutting back on jobs. But if you are laid off, there’s no need to panic. Here are some strategies for keeping your finances in order even if you lose your job.

Plan ahead

When a company is having financial problems, most employees can see the sign long before a layoff or bankruptcy occurs. If you think your job is in jeopardy, now’s the time to set up an emergency saving fund. Simply open a special savings account and deposit as much as you can each week. A severance package and unemployment benefits are unlikely to cover all your costs, so this nest egg will come in handy if you need it.

If you are quite certain you are going to be laid off, you might also consider changing your income tax withholding to have less tax taken out of each paycheck. If you do lose your job and don’t find a new one immediately, your income will be lower this year. That means you should owe less tax. However, keep in mind that you will end up owing tax next April if you lower your withholding and your income level does not change.

Ask for severance

Companies are not legally required to give employees a severance package, but they are often willing to offer one to someone with a good track record, especially if that person has been with the business a long time. So, be sure to try to negotiate a package. Ask, too, about receiving pay for any unused vacation days you may have accumulated.

File for unemployment insurance

The sooner you file for this benefit, the sooner you will start receiving checks. Remember that you are eligible for unemployment insurance even if you have received a severance package or buyout. There are some online calculators to help you determine how much you would receive. Find out now how much you are eligible to receive so that you can better calculate how much you will need in your emergency fund.

Get life and health insurance coverage

Most people receive life and health insurance through their employer, so this benefit could be a significant loss if you are laid off. However, it’s very likely that you will be able to retain employer coverage for a certain period of time, but you will have to pay the premium yourself. If you are married and your spouse works, you may also be able to pay extra to receive coverage under your spouse’s plan. Find out what options are open to you and compare their costs so you can make the best choice.

Do not panic

Many people drift into bad financial habits in an emergency, including dipping into their retirement accounts or running up high credit card balances. If you withdraw money from a retirement account before retirement age, not only will you have to pay taxes on the distribution, you may also be hit with an early distribution penalty of 10 percent, which means that a good chunk of your withdrawal will go to the IRS. At the same time, the interest rates on credit cards tend to be very high, so this should be your borrowing option of last resort. Financial institutions are also tightening up their credit card limits — even for their best customer — so you may find that this option is not even available to you.

Get a Financial Needs Analysis (FNA)

A financial needs analysis will help to put your finances in the right perspective and allow you to see where you are now and where you want to end up in the future. It is a financial game plan in the event you do lose your job. One very important fact that can be derived from your needs analysis is setting up an Emergency Fund. This fund can be the difference between sinking and keeping your head above water in these trying times in the economy. Perhaps your spouse is laid off and you go from two incomes to one income. This can be devastating and difficult to recover from. A FNA can help alleviate this concern. No need to panic....Ask for your Game Plan now. Don't wait until it is too late to plan ahead.

How to Build Your Financial Safety Net

(NaturalNews) In betrayal of 99% of the American taxpayers who opposed the pork-packed financial bailout bill of 2008, Congress passed the bill on Friday, October 3. President Bush signed it into law within minutes, and King Henry (Henry Paulson, Treasury Secretary) went right to work using taxpayer dollars to start buying up bad banking debt that nobody else would touch.

Three days later, in response to the bailout plan, the stock market plummeted and financial institutions around the world were rocked in a dangerous credit crisis that brought the world "to the edge of the abyss," as one prominent mainstream news journalist stated.

Although I strongly disagree with the use of taxpayer dollars to bail out rich, elite bankers who lost money making risky bets on outlandish financial instruments, I'll leave that for another editorial. Today, I'm here to offer you strategies on how to make the most of the post-financial bailout economy and build your own financial safety net, even if things get worse in the global economy.

Here, I'll share down-to-earth strategies on what you can do -- starting right now -- to protect your savings and actually grow your income, despite tough economic times.

How Primerica Can Help

How to Build Your Financial Safety Net