Author: James Cox

James' firm, Devon Financial Partners, LLC, is an agency of The Guardian Life Insurance Company of America®. Devon Financial Partners was founded on the principles of integrity, financial skill and commitment to uncompromising client service. We help our clients achieve optimal financial balance by addressing the underlying risk in their current financial plans. Devon Financial Partners has brought together specialists from leading regional firms to address the unique needs of our clientele. Guardian® is a 155-year-old mutual company, which means it is owned by its policyholders. As owners, policyholders share in Guardian’s actual financial results through annual dividends. Guardian has paid dividends to policyholders every year since 1868. Being a mutual company allows Guardian to invest for the future with the collective interests of all of our stakeholders in mind. The company’s focus is always on its customers and building a strong financial foundation that will serve them well today and into the future. Guardian Life is rated A++ by A.M. Guardian has received exemplary ratings from the major rating organizations. Contact information: Devon Financial Partners, 744 West Lancaster Av, Suite 235 Wayne, PA 19087 Phone 610-293-8300, Cell 215 768 5883 Registered Representative and Financial Advisor of Park Avenue Securities, LLC (PAS), 7 Hanover Square, New York, NY 10004. Securities products/services and advisory services offered through PAS, a registered broker-dealer and investment advisor, (888) 600-4667. Financial Representative, The Guardian Life Insurance Company of America (Guardian), New York, NY. PAS is an indirect, wholly owned subsidiary of Guardian. Devon Financial Partners, LLC is not an affiliate or subsidiary of Guardian. PAS is a member of FINRA, SIPC. Guardian, its subsidiaries, agents or employees do not give tax or legal advice. You should consult your tax or legal advisor regarding your individual situation. Dividends are not guaranteed. They are declared annually by Guardian’s Board of Directors. Financial information concerning The Guardian Life Insurance Company of America as of December 31, 2014 on a statutory basis: Admitted Assets = $45.3 Billion; Liabilities = $39.6 Billion (including $34.9 Billion of Reserves); and Surplus = $5.7 Billion. GEAR no. 2015-11608 Exp 10/17
economy, income, interest rates, retirement

Fed raises rates, and questions, around the economy

James Cox

On June 13th, 2018 the federal reserve raised interest rates 25 basis points and altered their expectation to raise rates a total of 4 times this year, compared to earlier expectation of 3 raises.

 

In his meeting with reporters to discuss fed policy, fed chair Powell stated, “Households are in good shape, and that is so important, that’s where we got into trouble before, and its often around property and housing that you see real problems emerge but we don’t see that now, and we take some solace from that.”

 

However, he also said, “Economic strength hasn’t reached everyone.”

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economy, income, retirement

How Can Student Loan Debt Threaten Your Retirement?

James Cox

I recently talked to a client who is 50 years old and has $75,000 in student loan debt that they do not seem to be making any headway to eliminate. It illustrates a huge issue many people are facing as they approach retirement.

 

In 2018 student loan debt totaled $1.5 trillion… Student loans are unique in terms of unsecured debt in that the government can take extreme measures to recover defaulted student loans, including seizure of tax refunds and garnishment of wages. (1)(4)

 

In addition, the government can also garnish up to 15% of a person’s social security check to pay back defaulted student loans. For most American’s Social Security makes up the bulk of their retirement income. Loss of part of the income can have a catastrophic effect on a house hold.

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economy, income, interest rates, retirement

What are the risks as bond yields move higher?

James Cox

Since December of 2017 bond yields for US Treasuries have moved up substantially. The increase in bond yields is having an impact on the US stock market, as well as markets around the world.

 

What is driving bond yields higher?

 

One significant driver is the Tax Cuts passed in December of 2017. The tax cuts are leading to an increase in the budget deficit and the need for additional bond issuance. More bond supply can lead to lower bond valuations and higher bond yields.

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Climate change, economy, environment, Socially Responsible Investing, SRI

Climate Change Impacts: an Interview with Paul Beckwith

James Cox

I was able to connect with Paul Beckwith first on March 20th, 2016 and more recently on May 18, 2018. We discussed the current state of Climate Change and what it means for global economic prospects. Professor Beckwith is a noted expert on Abrupt Climate Change. He is a professor at the University of Ottawa.

 

Prf. Beckwith starts by explaining, “I think the warming of the Arctic is destabilizing the climate system. The disruption of the temperature gradient between the Arctic and the temperate regions is what sets up weather patterns like the Jetstream. The Jetstream has basically broken down at this stage. The Whole arctic region is getting much darker due to sea ice loss, which leads to increased heat absorption, which then leads to accelerated glacial and ice melt.”

Climate change leads to drastic transitions and weather instability; higher temperatures mean more evaporation and more severe weather events.

In January of 2018 the arctic experienced a 40 degree temperature increase in a week, and this was during a time when the arctic was in 24 hours darkness. This has accelerated loss of sea ice in recent months, further disrupting the Jet Stream.

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Climate change, environment, income, retirement

Climate Change, Sea Level Rise and Retirement Risk

James Cox

One of the oft repeated risks from climate change is the threat that comes from rising sea levels. Depending on the forecast, even in the most optimistic ones, seas are projected to rise several feet before the end of the century. With the accelerating build-up of CO2 and the rate of temperature increase (2016 being the hottest year on record), many expect dramatic sea level rise to occur much sooner than most expect. (https://www.co2.earth/ )

 

While people might want to buy shore property for benefits that include potential rental income, capital appreciation and personal use, they also face potential risks of hurricanes, sea level rise, etc. Some of these risks can be mitigated by purchasing flood insurance.

 

Last summer I explored the question, “if sea levels rise, what will be the impact on a clients’ net worth and portfolio?”

 

The answer is one few people are willing to confront.

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Climate change, environment, ESG, Socially Responsible Investing

First hand insights on Climate Change impacts in Bangladesh: An interview with Susmita Saha

James Cox

This is a reprint of a 2016 interview.

I met Susmita Saha through Facebook. She liked a previous article I had written on the subject of climate change and I reached out to her to connect. Since then we message each other each day.

 

Knowing that the impacts of Climate Change will be hardest felt in places like Bangladesh I wanted to get her view of what is happening and how it affects her daily life. I asked her to start by describing her background, age, and upbringing.

 

“I am Susmita Saha. I live in Jhalakati, Barisal division, Bangladesh. I am 23. Currently I am a student of disaster management in Patuakhali Science & Technology University. I am studied in the science group. Originally I wanted to be a doctor to save lives & to serve the poor people in our community & help society… But I couldn’t… I then I decided to study in disaster management… It’s a challenging subject for me to obtain knowledge to mitigate the impacts of various hazards or disasters in our country….”

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economy, new economy, protection, retirement, Socially Responsible Investing

Embracing the Future: An Interview with Charlotte Markward

James Cox

I met Charlotte and her Husband Randy years ago at a Green Drinks in Philadelphia. It was before the days of Tesla, widespread solar power and organic food sections at the grocery store. People got together to share a beer and dream about a future that would be more sustainable. Things have changed a great deal in the past few years.

 

Charlotte is a graphic designer based in Philadelphia. She has agreed to share some of her experiences and insights so that we all might have an easier path to financial security.

 

Charlotte has been interested in supporting socially responsible investing for many years. I asked her what it means to her. Charlotte said, “For one thing it’s smart. We have a finite amount of resources and we are running out of them. To continue doing things in the old ways is to set yourself up for failure. Green investment is where the growth will be.”

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diversity, economy, ESG, new economy, Socially Responsible Investing, SRI

Diversity Matters… Especially In Business

James Cox

The economy is changing at a rapid pace. Companies in many sectors that have been pillars of the economy have fallen on hard times. Companies that were leaders in industrial America have seen their market cap fall by 2/3rds in the past year. Leaders in retail have closed hundreds of stores and laid off thousands of people. Even technology companies that started off strong in the past 10 years have suffered setbacks in the past year due to corporate governance issues.

 

As technology advances, the challenge for businesses to stay competitive becomes amplified. In the last 3 years, advances in robotics and AI (Artificial Intelligence) have significantly added to the bottom line of companies. That pace of change seems to be accelerating.

 

Learning how to deal with this change is a crucial issue for businesses.

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health, life insurance, protection

Diet, health, and the financial impact on life insurance

James Cox

The purpose of life insurance is to manage risk. Individuals and families need protection in the event a primary bread winner passes away.

 

Several factors drive what life insurance costs for an individual. Women tend to live longer, so their cost for life insurance is lower than it is for men. The healthier a person is, the less expensive it is for them to obtain life insurance. People who smoke pay significantly more for life insurance.

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