economy, interest rates, retirement

Psychology and the Market

On Thursday February 8th 2018 the Dow dropped over 1000 points in a single day.

 

Human behavior is driven two forces, fight or flight. When facing a dramatic event we as individuals are forced to REACT to what happens. 

When looking at the market, if a person is underinvested and it goes up day after day making new highs, that person may experience FOMO… fear of missing out. They might make the decision to invest based on emotion instead of fundamentals.
Continue reading “Psychology and the Market”

economy, income, new economy, retirement

How to Deal with Being Laid Off: 5 Strategies To Prepare For Job Change

Each day we read reports that the economy is booming.

 

“U.S. manufacturing production just had its best year since 2011.” (1)

“Factory output is poised to speed up.”

“Stronger global growth expectations and a weaker dollar should help.”

 

With that being the case you might find it surprising that several large corporations have recently announced they will be laying off large numbers of employees, especially managers.

Continue reading “How to Deal with Being Laid Off: 5 Strategies To Prepare For Job Change”

economy, income, interest rates, retirement

What do rising rates mean for investors?

In early February 2018 equity markets started to sell off. Volatility increased. On February 8th, 2018 the DJIA dropped over 1000 points.

 

Question: Why?

Answer: The repricing of risk.

 

In 2013 the economy was recovering from the Great Recession of 2008/2009 and was still fragile. A lot of economic data points showed contradictory trends. Believing the economy had sufficiently strengthened, the Federal Reserve announced it’s intention to start reducing its policy of Quantitative Easing which was put into place after the 2008 financial crisis and the Great Recession. Quantitative Easing was the government policy to buy US treasury bonds in order to keep interest rates low and support the economy.

Continue reading “What do rising rates mean for investors?”

AI, disability, economy, life insurance, new economy, retirement

Jobs at Risk

A recent study by McKinsey Global Institute examined how robotics will affect labor and the economy. The study estimated that 800 million jobs (1/5 of all jobs) will be impacted by advances in robotics.

Among the jobs most impacted include brokers, accountants, office staff, machine operators, and food service. Lower skilled, repetitive tasks are most likely to be replaced.

What does this mean for family finances in the years to come?

Continue reading “Jobs at Risk”

Climate change, economy, environment, ESG, new economy, retirement, Socially Responsible Investing, SRI

What is Socially Responsible Investing?

I have recently had several people ask me about SRI. What is it? Why does it matter?

The first thing to understand is SRI means different things to different people. Several years ago I attended a gathering of advisors focused on sustainability at the Bloomberg headquarters in NYC. I talked to many of the 300 attendees and what I found was every single person had a different interpretation of what SRI meant.

Continue reading “What is Socially Responsible Investing?”

economy, income, retirement

First Steps to Retirement Planning

Many people are paralyzed into inaction when they start thinking about the challenge of planning for retirement. The truth is there are a few first steps anyone can take on their own to improve their chances for success.

A first step is to determine how much income you can expect to receive from social security. In years past SSA would mail annual statements for people to see their expected benefits. Things have changed… go to google and search for “my social security”. You will create an account and through this account be able to determine your numbers.

Continue reading “First Steps to Retirement Planning”

economy, retirement

5 Tips to Make Your Retirement Savings Last

The statistics are troubling…
10,000 Americans begin their retirement every day.
Only 18% have more than $200,000 saved.
56% have less than $10,000 saved. (1)
Most Americans have not been able to save as much as they would have liked, or have lost money due the Great Recession of 2008/2009.

In addition, the Great Recession resulted in many workers in their 50s and 60s getting laid off, not being able to find comparable employment and choosing early retirement.

Continue reading “5 Tips to Make Your Retirement Savings Last”

economy, life insurance, new economy, protection

Job Change, Group Life Insurance and Russian Roulette

In the United States, there is a huge number of households which are unprotected or under protected by Life Insurance. In a recent LIMRA study 7 in 10 households believe would be in serious financial distress if an adult in the household passed away.

37 million households have no life insurance.
Another 33 million households do not have sufficient life insurance to count themselves as protected.

Continue reading “Job Change, Group Life Insurance and Russian Roulette”

life insurance, protection

The Risk To Your Child’s Future

Loss of a parent shatters the life of a child. Period.

Loss of a parent’s love.
Loss of a guide through life’s challenges.
Loss of protection and security.

These are losses that are beyond measure and replacement. But the truth is these losses can be worsened by the financial impact that comes from a lack of planning and losing a parent.

7 in 10 of all households said they would have trouble covering everyday living expenses after several months if the primary wage earner died.

Continue reading “The Risk To Your Child’s Future”

economy, new economy, retirement

Investing with Stocks at Record Levels

I have talked to many clients. I have read and listened to many economists and Chief Investment Officers who are nervous about investing hard earned savings when markets and indexes are making new highs.

Many people feel the market is “due for a correction”; they worry about a “bubble bursting like 2008”; they look at the political environment and feel confused by what is happening in Washington DC.

Looking at retirement planning is different from investing other assets.
Many people are limited by 2 factors,
(A) the Need for retirement income, and
(B) a limited time horizon.

Continue reading “Investing with Stocks at Record Levels”