News

Cost Cutting without the Government

Tired of all the rhetoric? Tired of all the political side deals? Alarmed at the realization that the proposed health legislation will cost all of us dearly? So are we.

When is 4% really 6%?

Tax deferred annuity rates are now just about 4% a year, guaranteed for 5 or more years... This is an exciting opportunity for those seeking to accumulate money safely, at a conservative guaranteed rate of interest.

2010 - How's it Looking?

Predicting is dangerous business, particularly now. We have been through so much economically that we have actually changed emotionally and psychologically. This change will have a big impact on the economy.

It Ain't Green Yet

Nearly 200 countries were represented recently in Copenhagen Denmark for the Summit on Climate Change. There was a lot of excitement and certainly, everyone is concerned. Strangely, this has not translated into a lot of investment activity in “green” investing.

The Inflation Protected Portfolio

Mark this down. Be confident, Be prepared. Inflation is coming. The talking heads at the Federal Reserve and media commentators tell us that inflation is being tamed and we don’t need to be concerned. That is true if your outlook is limited to a very short period...

I Was Wrong

How’s that for a way to start, admitting I was wrong. In a number of previous columns, we asserted the opinion that Index annuities were gimmicky products, intended to generate high commissions for brokers who were not looking out for their clients’ best interests.

Hidden Gem

Americans habitually are slow to adopt opportunities to save taxes. Maybe this is due to our desire for instant satisfaction, or we don’t want to take the time to study and learn all aspects of an opportunity. Looking at Individual Retirement Account, Health Savings Accounts, and now Roth IRA conversions, we see this pattern again.

Take Some Home

Consumer confidence is often used as a barometer of stock market performance, as consumers make up 2/3 of the American economy.. Recent figures show confidence at very high levels. However, a more careful look is telling. High end earners confidence is very high, but low end earners confidence is at a very low level. The rich are feeling good, the restof us, not so much.

Celebrate Guarantees

The investment markets have made a spectacular, and to some people, questionable recovery. The market averages are close to 50% higher than they were in March of 2009. What has been overlooked is that this still represents a 36% reduction from the levels of mid-2008.

Saving Money & Taxes

What is better than this combination? Reduce your health insurance premiums and lower your tax bill! Two simple procedures make it happen. One, you obtain a high deductible health plan that is labeled H.S.A. Compatible. This step will reduce your premium by 35-40%, from traditional plans. While this sounds like it may expose you to higher potential out of pocket expenses, it actually does not.

Looking Ahead - Prospering

There are a number of challenges that face our economy that don’t get a lot of press attention. We have been worrying so much about the financial meltdown that we have not paid enough attention to some longer term issues and opportunities. Once we take the time to think about these, we will realize that we need to make fundamental changes in the ways that we invest.

A Perfect Portfolio

The concept of a diversified portfolio was sorely tested in 2008-2009. It seemed that every asset class what hit equally hard. The S&P 500 lost 37%, but an index of intermediate term treasury bonds increased by 19%. Many investors who had positions in bonds lost considerably less than those totally invested in equities. A number of our clients had overall losses of 10% and less.

Better Half Right Than All Wrong

In case you haven’t noticed, the stock market has surged over the past month and a half. A 35% increase in the S&P500 is a great performance for a whole year, let alone six weeks. The big question is “where do we go from here?”.

Keep Your Fingers Crossed

After an awful start to 2008, there has been a strong rally in March and into April. This may indicate better things to come, or it may represent a “bear market rally”.

A Lucky Few

Independence

One of the most important, and generally overlooked considerations in working with a financial advisor is the answer to the question,"who do you work for?" We have all heard about the huge problems at firms with familiar names, some of whom have actually failed. Let's think about the problems of the firm influence the bahavior of their representatives.

Mutual Strength

In the current recession, fixed annuities have once again come into favor. Not only are the rates on these policies better than certificates of deposit, money market funds and treasuries, but all taxes are deferred for as long as you wish. Some have shown reluctance to purchase fixed annuities because of a concern about the financial strength of the insurance company.

What A Year!

What a year - somewhere between yech and "oh my god". Everyone has felt and will continue to feel the effects of the financial and real estate crisis. There are things that we know, and several of these give us reason for optimism:

Turn Your 401K Plan Into A Guaranteed Pension

After the introduction of 401K plans, pension plans began to disappear. Remember pension plans? Your employer would deposit funds every year and you would receive a guaranteed income at retirement that was based on your years of service, income and retirement age.

Heath Benefits For Those Without

During these times of financial crisis, many employers are facing the prospect of giving up health benefits for their employees. Other firms are going out of business, leaving their employees with the prospect of losing coverage. In addition, many families and individuals are giving up expensive plans because they can no longer afford the premiums.

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