Longboat Retirement Solutions LLC

Why Asset Allocation Doesn’t Matter In The Long Run June 27, 2015


Sitting on The Fence May 9, 2015

Do you consider yourself a market timer?

Are you a market maker?

Do you know when the next market crash will happen?

Can you call the peak?

Do you have insider information regarding when Goldman Sachs will pull the carpet from under the U.S. stock market?

Is Janet Yellen your cousin?  Does she give you tips?

If your answer is no to all of these questions, then why aren’t you taking this opportunity to divorce yourself from this bubble while it’s still inflated?

It is amazing to me that more people are not taking this amazing opportunity to take profits, and instead are electing to roll the dice on market timing or give the keys to their future to some guy who has no stake in their success.

I know that I should not be surprised, as history seems to repeat itself every 7 to 10 years these days.  People have exceedingly short memories and attention spans that can only be measured in milliseconds.

I really don’t want to be that guy who said “I told you so”…or “I tried to tell you”.  I get no joy in hearing sob stories about how people waited too long and got wiped out by the debt tsunami.

The current market value has no basis in reality.  When it goes pop, it is going to destroy the retirement of millions of Americans who blindly followed the pundits on CNBC.

Please, Americans, spend more time thinking about your future and less time getting re-educated by mass media.

Lars Forsberg
Longboat Retirement Solutions LLC

Call for a FREE consultation


How Does Your Investment Advisor Make Money? March 8, 2015

Longboat Retirement facilitates the creation and initial set up of Self Directed IRA’s and Solo 401k’s.

We don’t push investment schemes, make investment recommendations, or sell financial products.  We do not give tax or legal advice.

This makes us truly independent.  We have no interest in making commission on the sale of any financial or investment products.  We don’t charge fees based on “assets under management” because we do not manage people’s assets.

Our interest is strictly helping our clients achieve control of their retirement and their future.

Lars Forsberg



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Bank fines top $142 billion — but tobacco fines are still bigger September 11, 2014

Filed under: Uncategorized — larsfforsberg @ 2:47 pm
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BY: Sital S. Patel

August 20, 2014

The world’s biggest banks have now paid more than $142 billion in fines for wrongdoing tied to the financial crisis. That’s a huge number — but it pales compared to what tobacco companies have paid for their transgressions.

The top five U.S tobacco companies paid a combined $246 billion to settle with 46 states, five U.S. territories and the District of Columbia in 1998. The states had successfully argued that tobacco companies should cover the exorbitant cost of  treatment for health issues related to smoking.

For both industries, the settlements also led to heavy regulation and other significant changes to how companies do business.

For banks, the Dodd-Frank Act, which was passed by Congress in 2010, forced them to scale back risk and increase the amount of capital held in reserve. The Federal Reserve also required the biggest banks to undergo “stress tests” that showed whether they could survive another crisis without taxpayer-funded bailouts.

For their part, the tobacco industry agreed to accept federal regulations, which included advertising bans and a halt to marketing that targets the young.

The following are some of the biggest fines that banks have paid:

Bank of America Corp. BAC has paid a staggering $74.65 billion in fines and tops our table. The bank announced a record settlement of $16.65 billion with the Justice Department on Thursday for charges stemming from its purchase of mortgage lender Countrywide in 2007 and Merrill Lynch. This is the largest-ever government settlement with a single U.S. company.

J.P. Morgan Chase & Co. JPM has paid about $27 billion of fines. In November, the bank agreed what was at the time a record $13 billion settlement of charges also related to mortgages.

Citigroup Inc. C has paid about $12.14 billion in fines.  The latest came in July, when the bank said it would pay $7 billion to the Justice Department, several state attorneys general and the FDIC, over mortgage-related charges.

On Wednesday, Standard Chartered Plc  UK:STAN said it will pay a $300 million penalty for lapses in its money-laundering procedures, its second such penalty after a $340 million fine levied in 2012.

By comparison, the five largest tobacco makers, Philip Morris PM , R.J. Reynolds (now renamed Reynolds American Inc. ra RAI , Brown & Williamson, Lorillard LO and Liggett & Meyers made thebiggest litigation settlement to date in corporate America.

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American Economics August 11, 2013

Filed under: Corporate Malfeasance,Economics — larsfforsberg @ 5:00 am
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U.S. Sues Wells Fargo: Yet Another Bailed-Out Bank Accused of Fraud October 11, 2012

Filed under: Corporate Malfeasance,Uncategorized — larsfforsberg @ 1:07 am
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BY: Matt Taibbi

Earlier this year, Charlie Munger, who is billionaire Warren Buffet’s right hand at Berkshire Hathaway and a sort of self-proclaimed mad oracle of Wall Street, made some interesting comments. He bashed people who buy gold, delivering an all-time amazing quote:

Gold is a great thing to sew onto your garments if you’re a Jewish family in Vienna in 1939 but civilized people don’t buy gold – they invest in productive businesses.

Munger, if you might remember, is the same gazillionaire dickhead who two years ago ripped people experiencing post-crash economic hard times, saying they should “suck it in and cope” and that anyone who wants to complain about the Wall Street bailouts should realize they were “absolutely required to save your civilization” (Munger thinks a lot about “civilization”). He added that even if you didn’t like them, “you shouldn’t be bitching about a little bailout. You should have been thinking it should have been bigger.”

Some of those bailouts we shouldn’t have complained about, of course, were directed at one of Munger’s favorite companies – banking giant Wells Fargo, in which Munger and Buffett are heavily invested. Wells Fargo got as much as $36 billion in federal aid after the crash and got a massive push from the government to help it buy up the dying crash-era megabank Wachovia for $12.7 billion, a shotgun wedding that created the second-biggest bank in America. Wells Fargo not only got $25 billion in TARP funds just before it bought Wachovia, it got a special tax break from then-Treasury Secretary Hank Paulson, which some reports say was worth as much as $25 billion to WF at that time.

This is all just background for the latest news: Wells Fargo is being sued by the State for vast fraud in the mortgage markets. The U.S. Attorney in the Southern District of New York, Preet Bharara, yesterday brought a case against WF seeking “hundreds of millions of dollars” in damages for what it says is a decade of fraudulent behavior, in which WF wrongfully certified more than 100,000 mortgages as being eligible for federal mortgage insurance. Basically, Wells Fargo screwed the FHA and HUD by mass-approving loans without regard for whether they were defective or not. From the L.A. Times:

When Wells Fargo discovered problems with the loans, it failed to notify HUD, which administers the FHA program, as required, the suit said. The action alleges more than 10 years of misconduct.

“The extremely poor quality of Wells Fargo’s loans was a function of management’s nearly singular focus on increasing the volume of FHA originations – and the bank’s profits – rather than on the quality of the loans being originated,” Bharara’s office said in a statement.

The action by the U.S. Attorney here in New York comes on the heels of another suit against Chase brought last week by Eric Schneiderman in Obama’s Mortgage Fraud Task Force. That action alleges similar mortgage-related scumbaggery by Bear Stearns, which Chase acquired in another government-brokered, market-concentrating shotgun wedding in early 2008.

So in just a week, we’ve seen two pretty big actions brought against the Coke and the Pepsi of the American commercial banking world. We’ll see how they pan out, but it’s interesting, if nothing else.

So just to recap Munger’s comments: gold is not an investment for civilized people, it’s for panicked Jews fleeing the Holocaust. Civilized people, according to Munger, instead invest in productive businesses like Wells Fargo, which according to this new suit spent a decade committing mass fraud and dumping tens of thousands of dicey loans onto the lap of the taxpayer. If we think about it in retrospect, Wells Fargo then got rewarded for years of bad behavior by receiving tens of billions more in bailout money, which it used to buy a dominating market share – artificially inflating its share price for the next generation, to the benefit of wrinkly old greedheads like Charlie Munger. And if you don’t like it, you should suck it in and cope.

I wonder what Munger thinks about his investment now. Is it still civilized?

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It’s Over for the Banking Cabal July 6, 2012

Filed under: Corporate Malfeasance,Economics,Investing Globally,Precious Metals,Real Estate Investing,Uncategorized — larsfforsberg @ 11:46 pm
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