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September 2011 AAM Newsletter
Hello and thank you for reading my e-newsletter.
I hope you find the information useful. If
you enjoy the newsletter please forward to a friend. Please
also let me know what you like to see so that I may continue to provide
relevant content.
you enjoy the newsletter please forward to a friend. Please
also let me know what you like to see so that I may continue to provide
relevant content.
If you are a client of mine, thank you for your continued business and please
update me on any changes in your situation do that I can make the appropriate
changes to your financial plan and investments.
update me on any changes in your situation do that I can make the appropriate
changes to your financial plan and investments.
If you are not a client please consider giving me a call or emailing me if you
would like to begin a plan to get you to your financial goals. I consider myself different from many of the
advisors out there for the following reasons :
would like to begin a plan to get you to your financial goals. I consider myself different from many of the
advisors out there for the following reasons :
1) You will not be pressured to purchase any products because I am a fee-only
advisor and a NAPFA® Member
advisor and a NAPFA® Member
2) You will have a comprehensive financial plan completed by a Certified
Financial Planner ™ Practitioner or CFP® - I have committed to financial
planning and continuing education.
Financial Planner ™ Practitioner or CFP® - I have committed to financial
planning and continuing education.
3) You will have a reasonable fee for the services performed. I charge less than the typical large
financial planning firm by being a small shop and keeping my business expenses
low.
financial planning firm by being a small shop and keeping my business expenses
low.
Ronald J. VanSurksum, CFP®
For more insight on these groups and myself please click on the following links
Markets
Stocks slid lower for the 4th straight month and for the 5th month out of 8 this
year. Disappointment with the US debt deal, slowing
global growth and the continuing European debt crisis continued to weigh in on
the markets. The S&P 500 Index tumbled
5.68% to finish at 1,218.89. Gold surged
another 12.43% to $1,825.40 per oz and Oil dropped 7.95% to $88.94 per
barrel. The Dollar rose in August by 0.46%
against other major world currencies to $74.14.
year. Disappointment with the US debt deal, slowing
global growth and the continuing European debt crisis continued to weigh in on
the markets. The S&P 500 Index tumbled
5.68% to finish at 1,218.89. Gold surged
another 12.43% to $1,825.40 per oz and Oil dropped 7.95% to $88.94 per
barrel. The Dollar rose in August by 0.46%
against other major world currencies to $74.14.
Through the end of August the S&P 500 is down 3.11%, Gold is up 28.56%, Oil is down
2.69% and the dollar is down 6.21%.
2.69% and the dollar is down 6.21%.
Stocks continued to struggle in August beginning
with the US debt ceiling deal and the subsequent downgrade of US credit worthiness,
continued problems out of Europe in regards to their debt issues and slowing
global growth concerns.
with the US debt ceiling deal and the subsequent downgrade of US credit worthiness,
continued problems out of Europe in regards to their debt issues and slowing
global growth concerns.
I am extremely disappointed in how the US debt
ceiling deal came down, how we waited until the last minute to get something
done and basically asked to be downgraded by the S&P rating agency by not
meeting their minimum guidelines. I do
not blame the S&P for the downgrade.
They said we needed to cut $4 trillion, we did not and therefore they
downgraded our ability to pay back our debts.
I do not believe this was a cause for much real concern (investors were
still moving money to US Treasuries when they wanted safety), however, equity investors
took it as such and began a selloff and an extremely volatile week of trading
with the markets moving 3-5% daily, trading on pure emotion and looking for a
direction.
ceiling deal came down, how we waited until the last minute to get something
done and basically asked to be downgraded by the S&P rating agency by not
meeting their minimum guidelines. I do
not blame the S&P for the downgrade.
They said we needed to cut $4 trillion, we did not and therefore they
downgraded our ability to pay back our debts.
I do not believe this was a cause for much real concern (investors were
still moving money to US Treasuries when they wanted safety), however, equity investors
took it as such and began a selloff and an extremely volatile week of trading
with the markets moving 3-5% daily, trading on pure emotion and looking for a
direction.
We are currently experiencing a crisis in
confidence. There is little confidence
that;
confidence. There is little confidence
that;
- the current Congress and Administration will be
able to turn around the US economy anytime soon, - The European debt crisis will be settled anytime
soon, - The US job market will recover anytime soon,
- Global economic growth will rebound anytime
soon.
Only time, the right policies and a resumption
of confidence will get us out of this economic paralysis that we are currently
in.
of confidence will get us out of this economic paralysis that we are currently
in.
As of September 9 it appears as though the
S&P is headed lower and will be testing the recent lows of 1,119 made on
August 8. If the market holds this level
we may be in for a rebound back to higher levels. If not we may see lows we have not seen in a
few years (1,025 to 1,048).
S&P is headed lower and will be testing the recent lows of 1,119 made on
August 8. If the market holds this level
we may be in for a rebound back to higher levels. If not we may see lows we have not seen in a
few years (1,025 to 1,048).
For weekly market updates please visit my blog which is now part of my new website
at www.aamllc.com
or on facebook @ www.facebook.com/aamllc .
at www.aamllc.com
or on facebook @ www.facebook.com/aamllc .
Mortgage Rates
Mortgage rates continued to drift lower over the last month. The
Schwab Bank 15-year rate is now at 3.42% and the 30-year rate is at 4.30%. These
rates are as of 09/09/2011 and assume no points, no origination fee and a
$250,000 mortgage. Again, if you have
the equity in your home and a 5+ year time frame this could be a great time to
refinance and lock in historically low rates.
Schwab Bank 15-year rate is now at 3.42% and the 30-year rate is at 4.30%. These
rates are as of 09/09/2011 and assume no points, no origination fee and a
$250,000 mortgage. Again, if you have
the equity in your home and a 5+ year time frame this could be a great time to
refinance and lock in historically low rates.
With the money you save you could be paying off your mortgage sooner, paying off
other bills, increasing your cash reserves or building up your long-term
investments. Another great thing to do
would be to save for that vacation you have always wanted.
other bills, increasing your cash reserves or building up your long-term
investments. Another great thing to do
would be to save for that vacation you have always wanted.
CD Rates
CD rates were mostly slightly higher over the last month. Charles Schwab has access to CD’s from banks
all over the country. Here are some of the current CD rates offered.
6 mo CD @ 0.30% 1-Yr CD @ 0.50%
2-Yr CD @ 0.95% 5-Yr CD @ 1.90%
Currently I am not doing much with CD Ladders. I
will start using them again as rates begin to rise. If you want to know what I am doing as an
alternative let me know.
will start using them again as rates begin to rise. If you want to know what I am doing as an
alternative let me know.
Tips and Suggestions
Now could be a good time to rebalance your investments to take advantage of
the lower prices (Buy Low / Sell High).
the lower prices (Buy Low / Sell High).
Have you projected out your 2011 Income taxes? Is there anything you should change to pay
less in taxes over the next few years?
less in taxes over the next few years?
Are your cash reserves earning less than 1%?
Consider a short-term US treasury fund or Corporate Bond fund to give
your secondary cash reserves a yield boost.
Consider a short-term US treasury fund or Corporate Bond fund to give
your secondary cash reserves a yield boost.
Have you defined your long-term investment goals? If you fail to plan you may be planning to
fail!
fail!
If you have any question or if you would like to have help with your financial
plan please give me - your Fee-only Certified Financial Planning ™ Practitioner
a call.
plan please give me - your Fee-only Certified Financial Planning ™ Practitioner
a call.
Articles
All articles are now found on my website which has been combined with my blog : www.aamllc.com
What Happens to My Retirement Assets
in the Event of a Divorce?
in the Event of a Divorce?
Federal law requires that participants in
employer-sponsored retirement plans designate their spouse as their beneficiary
unless the spouse waives this right in writing. Assuming that you and your
spouse adhered to this practice, a document known as a Qualified Domestic
Relations Order (QDRO), which is part of a divorce settlement, specifies how
retirement assets are divided.
employer-sponsored retirement plans designate their spouse as their beneficiary
unless the spouse waives this right in writing. Assuming that you and your
spouse adhered to this practice, a document known as a Qualified Domestic
Relations Order (QDRO), which is part of a divorce settlement, specifies how
retirement assets are divided.
http://www.aamllc.com/2011/08/what-happens-to-my-retirement-assets-in-the-event-of-a-divorce/
Consider Dividend-Paying Funds as a Source of Income
Profitable companies traditionally have rewarded their shareholders one of two ways: by reinvesting
corporate profits in the company with the long-term goal of increasing the
stock price or by paying shareholders a regular dividend.
corporate profits in the company with the long-term goal of increasing the
stock price or by paying shareholders a regular dividend.
http://www.aamllc.com/2011/08/consider-dividend-paying-funds-as-a-source-of-income/
Mutual Fund Sales Charges, Fees, and Expenses
With thousands of mutual funds to
choose from, selecting the funds appropriate for your needs can be a challenge.
Many investors choose to work with qualified financial advisors who can assist
them in choosing funds to pursue their financial goals.
choose from, selecting the funds appropriate for your needs can be a challenge.
Many investors choose to work with qualified financial advisors who can assist
them in choosing funds to pursue their financial goals.
http://www.aamllc.com/2011/08/mutual-fund-sales-charges-fees-and-expenses/
Four Retirement Financing Risks
As Americans live longer, the
task of managing money after retirement gets more complex. A retiree in his or
her mid-60s typically has a different risk profile than an individual
approaching 90. It may be helpful to look at various types of risk from the
vantage point of how they affect retirees at different life stages.
task of managing money after retirement gets more complex. A retiree in his or
her mid-60s typically has a different risk profile than an individual
approaching 90. It may be helpful to look at various types of risk from the
vantage point of how they affect retirees at different life stages.
http://www.aamllc.com/2011/09/four-retirement-financing-risks/
Contact Me
Want more information on how I can help you? Give me a call or drop
me an email to review or set up a free initial consultation.
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Weekly Blog Updates and My Website www.aamllc.com
