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.

Some focused on promoting clean energy, some focused on workers issues and inequality, some focused on climate change, some look to exclude alcohol and tobacco, others focused on micro lending. Each focus is unique and approaches the challenge of investing with different assumptions.

Ultimately the client needs to feel comfortable with the advisor’s experience, their outlook, and their rationale to do what they do using SRI.

The first step for the client… they should feel comfortable exploring and addressing the impact their investment dollars are having in creating the world we see around us.

If your mother died of lung cancer at 42 because she smoked 2 packs of cigarettes a day, do you want your money allocated to tobacco stocks?

If you oppose war and weapons on moral grounds, do you want your money allocated to arms manufacturers?

If you are concerned about climate change, do you want your money invested in carbon intensive industries like coal and oil?

In addition to excluding specific companies, you can choose to support industries that are proactively working towards change.

Do you want to support and invest in renewable energy?
Do you want to support and invest in companies that have strong corporate governance and diversity?
Do you want to invest in companies that embrace change, fair wages, and economic progress?

Ultimately that client has a great deal of power in terms how the market is priced and where capital is allocated. One investor, combined with hundreds of others, combined with millions more, combined with foundations, endowments and pensions, can have a huge impact…

The question you have to ask is, do your investments match your values?

To learn more and discuss how SRI may help your portfolio please reach out to me. I would love to chat.

Retirement Income. Tax Efficient Planning.
Life Insurance. Disability Insurance
Socially Responsible Investing

To learn more contact:
James Cox
Ph: 610 293 8309
Email: james_cox@devon-financial.com
Devon Financial Partners 744 W Lancaster Av Suite 235 Wayne, PA 19087

Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 954 Ridgebrook Rd. Suite 300, Sparks MD 21152. 410-828-5400. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of 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 PAS or Guardian. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. Gear # 2018-52230 exp 1/20

PAS is a member FINRA, SIPC.

Climate change, economy, retirement

Rising Seas and the Risk to Retirees

 

Florida has always been considered a favorite retirement destination. The warmer climate attracting older American’s who have health issues ranging from Asthma to Arthritis, from Heart Disease to Parkinson’s. 20% of Florida’s population is over age 65 (compared to only 15% in New Jersey).

 

An additional challenge facing retirees in both Florida and New Jersey is climate change risk due to rising seas, storm surge and the potential loss of property in coastal communities.

 

In 2013, hurricane Sandy delivered a wake-up call to many about the danger to real estate as a result of hurricane force winds and storm surge. This past summer it looked to be Florida’s turn. Hurricanes Irma and Maria threatened to make landfall in Florida with devastating force.

 

“Florida is in the crosshairs of climate change. Rising seas, a population crowded along the coast, porous bedrock, and the relatively common occurrence of tropical storms put more real estate and people at risk from storm surges aggravated by sea level rise in Florida, than any other state by far.” (1)

 

While Miami was lucky and did not suffer a direct impact, it was still impacted by major flooding and the long term risk only appears clearer after the storms.

 

“The sea has begun pushing back, swelling with lunar high tides and storms, reversing the flow in drainage canals and flooding neighborhoods. Rising water infiltrates storm water systems, coastal highways, septic tanks and fresh water wells. Over the past couple of years in Miami Beach, ‘on a bright sunny day, the streets would fill with water,’ twice a day with the tide, Brian Mowry, city engineer of Miami Beach, said. The city’s existing drainage system had created ‘avenues for water to come right into our city,’ he said. Now the city is spending $500 million to hold back the tide and prevent flooding.” (2)

 

Even without hurricanes, Florida continues to flood. Why is this happening?

 

 

“Scientists say the ocean began rising more than a century ago, averaging an almost imperceptible 1.5 millimeters a year from 1900 to 1990, based on data from a network of federal tide gauges around the country. In the 1990s, the rising sea doubled its previous rate, reaching about an inch a decade, said Sweet. And then, over the past 10 years, tide gauges in Fernandina Beach, Mayport and Key West recorded an increase of about 0.9 centimeters per year, a little more than a third of an inch per year.” (2)

 

The rate of increase is accelerating.

 

“Sea level rise is more than doubling the risk of a storm surge at this level in South Florida by 2030. For the hundreds of thousands of Floridians holding 30-year mortgages, that date is not far off in the future.” (1)

 

Six million people are at risk in south Florida.

 

And this is the real danger to retiree financial plans. The loss of a house or property could lead to a massive loss, creating a hole in their portfolio. Many people do not carry flood insurance. In Houston, nearly 60% of houses damaged or destroyed by the extreme flooding as a result of hurricane Irma, did not have flood insurance.

 

It is critically important to understand the expanding definition of risk resulting from climate change. Retirees need to take an active role in managing their risk, and work with advisors who can help moving forward. Addressing large potential risks can improve long term performance.

 

If you want to discuss these issues or learn more please feel free to contact me.

 

Retirement Income. Tax Efficient Planning.

Life Insurance. Disability Insurance

Socially Responsible Investing

 

To learn more contact:

James Cox

Cell: 215 768 5883

Email: james_cox@devon-financial.com

Devon Financial Partners 744 W Lancaster Av Suite 235 Wayne, PA 19087

 

 

Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 954 Ridgebrook Rd. Suite 300, Sparks MD 21152. 410-828-5400. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of 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 PAS or Guardian. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. Gear #2017-49676 Exp 11/19

PAS is a member FINRA, SIPC.

 

 

 

Links to external sites are provided for your convenience in locating related information and services. Guardian, its subsidiaries, agents, and employees expressly disclaim any responsibility for and do not maintain, control, recommend, or endorse third-party sites, organizations, products, or services, and make no representation as to the completeness, suitability, or quality thereof.

 

  1. http://sealevel.climatecentral.org/news/floria-and-the-rising-sea

2. https://www.usnews.com/news/best-states/florida/articles/2017-07-22/sea-level-rise-is-accelerating-in-florida-scientists-warn

 

Climate change, economy, new economy, retirement

Global future growth… and Climate Change

A recent Bloomberg article titled “The Global Growth Hotspots of the Future Are Here” discussed an HSBC report which advises that investors need to focus on the growth of cities in the Emerging Markets.

“While wealthier countries are more urbanized today, the proportion of urban to rural dwellers in emerging markets is expected to climb to 63 percent in 2050 from 50 percent now, according to the study, which draws on research by McKinsey and the United Nations

By 2050 some 5 billion people – more than half the world’s population – will live in emerging market cities, and account for more than half of global gross domestic product growth.

That means policy makers will have to balance the upsides of urbanization – economies of scale, better productivity and infrastructure, chance encounters that lead to new ideas, better productivity and infrastructure – with the potential downsides, in the shape of increased crime, pollution and perpetually snarled traffic.  If that doesn’t happen, these ill effects could sap economic potential”, HSBC economist James Pomeroy says.

 

Cities like Dhaka, Karachi and Lagos will be among the world’s 10 most populous cities, according to the study. By 2030, 81 of the world’s 100 most populous cities will be in emerging markets.

While the article cites the growth excitement and upside of Emerging Market investing, i.e. Infrastructure build out, rising wages, developing markets and supply chain feeder businesses, the article ignores completely the elephant in the room… Climate Change risk…

In a study last year in Nature magazine, scientists looked at the effect of rising global temperatures and their effect upon the ability of various populations to be productive economically. What they found is as temperatures rise, human productivity decreases. As productivity decreases, GDP falls.

This study concluded that it is their expectation that the GDP of Emerging Market countries is expected to fall by 75% by 2100. Because Emerging Market countries tend to be equatorial and in higher temperature zones, the impact is greater than the impact is expected to be on the United States and Europe.

Rising temperatures will continue to affect global food supplies, water availability, and social stability, especially in the Emerging Markets. The terrible situation in Syria was driven to a large degree by the drought in 2012 and the effect it had on the social fabric. Anyone who discounts the impact of climate on economic and societal viability going forward is only looking at part of the economic and financial puzzle.

We are reaching the limits economic growth because of the climate and shrinking resources. We need to examine our economic expectations, and adjust accordingly.

https://www.bloomberg.com/news/articles/2017-04-29/the-global-growth-hotspots-of-the-future-are-here

https://www.nature.com/nature/journal/vaop/ncurrent/full/nature15725.html

Retirement Income. Tax Efficient Planning.

Life Insurance. Disability Insurance

Socially Responsible Investing

 

To learn more contact:

James Cox

Cell: 215 768 5883

Email: james_cox@devon-financial.com

Devon Financial Partners 744 W Lancaster Av Suite 235 Wayne, PA 19087

This material contains the current opinions of the author but not necessarily those of Guardian or its subsidiaries and such opinions are subject to change without notice.

Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 7 Hanover Square, New York, NY 100034. 888-600-4667. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of 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 PAS or Guardian. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation.

Investing in foreign securities may involve heightened risk including currency fluctuations, less liquid trading markets, greater price volatility, political and economic instability, less publicly available information, and changes in tax or currency laws. Such risks are enhanced in emerging markets. 2017-40029 Exp 05/19

Climate change, economy, retirement

“We are talking about a genuine existential issue”: An interview with Ian Dunlop, Sustainability Consultant based in Australia

Ian Dunlop’s life has been spent in the center of the carbon economy and the climate change debate.

His bio from LinkedIn chronicles his background…

Ian Dunlop has wide experience in energy resources, infrastructure, and international business, for many years on the international staff of Royal Dutch Shell. He has worked at senior level in oil, gas and coal exploration and production, in scenario and long-term energy planning, competition reform and privatization. He chaired the Australian Coal Associations in 1987-88. From 1998-2000 he chaired the Australian Greenhouse Office Experts Group on Emissions Trading which developed the first emissions trading system design for Australia. From 1997 to 2001 he was CEO of the Australian Institute of Company Directors. Ian has a particular interest in the interaction of corporate governance, corporate responsibility and sustainability. An engineer from the University of Cambridge (UK), MA Mechanical Sciences, he is a Fellow of the Australian Institute of Company Directors, the Australasian Institute of Mining and Metallurgy and the Energy Institute (UK), and a Member of the Society of Petroleum Engineers of AIME (USA). He is Chairman of Safe Climate Australia, a Director of Australia 21, Deputy Convenor of the Australian Association for the Study of Peak Oil, a Fellow of the Centre for Policy Development, a Member of The Club of Rome and a member of Mikhail Gorbachev’s Climate Change Task Force. He advises and writes extensively on governance, climate change, energy and sustainability.

He grew up in the middle of the oil and coal business, and over the years he has come to his own conclusions about climate change and the impact it will have on humanity’s future. I interviewed him mid-May 2016 to learn more. I wanted to learn more about what can be done about climate change, what the role of business is, and what the impact on the economy is.

Ian starts by explaining… “My background is in the resource business, especially oil and gas exploration, and then additionally coal mining. I worked for Royal Dutch Shell for most of my career. I left Shell in the early 90s. Essentially I have been involved in the climate debate since the 60s, because it was on the agenda way back then, it was going to become an issue in due course for the fossil fuel business. If you look at the intervening 40 or 50 years the science has gotten clearer, the evidence has gotten harder and harder. And quite simply it’s moving much faster than anyone expected, and it is going to have an impact far quicker than anybody officially is prepared to admit, certainly people who are negotiating things like the Paris Agreement.”

“We have got a problem, in that this is essentially about risk management. And most of the arguments in the formal scientific position of the IPCC is a fairly conservative view. I does not include the fat tail risks, the positive feed-back tipping points, that is going to move the changes taking place much faster.”

What are some of those tipping points…“things like sea ice in the artic, the melting of the Greenland ice sheet, permafrost melt and the implications that has for carbon and methane release. You see evidence already of release from methane perorates; nodules that sit on the sea bed and as temperature rise they change from solid to gaseous states. This is occurring already around the shallow sea beds in the artic and in Siberia in last 12-18 months.”

“The IPCC sets out a formal scientific position every five or six years, but the really critical risk implications in terms of tipping points in the work they do are not quantified; they talk about them, but they are not quantified for good reason. We do not yet have enough scientific knowledge to be precise about what the implications are going to be.”

“Now there is a clear distinction that needs to be made between the science and the risk implications of climate change. Because the risk is something that you really have to think ahead as the extent of the speed at which things occur and the fat tail implications, what people refer to as low probability, but high impact events. These are the things that need to concern us.”

People are assuming there is a low degree of risk until there is a risk, and then it is too late to address the risk. “Yeah, precisely… sensible risk management designed to avoid all that, you try to anticipate that and in fact if you have high uncertainty like in the current environment because of the lack of knowledge on tipping points you should take greater precautions than would otherwise be the case.”

“That kind of risk management is commonplace in corporations, but in this case no one wants to do anything about it.”

“So the concern is we are now starting to see those tipping points kick in, and some of the best scientists have taken the position that the changes are irreversible. The west Antarctic ice sheet is probably now in irreversible breakup and that potentially adds 2-3 meters of sea level rise. Once that goes it takes away the buttressing effect from the ice sheets on west Antarctic mainland is lost and you run the risk that over time those sheets will run much more quickly.”

“You are seeing the same thing now in the arctic. You are seeing the speed of sea ice melt is accelerating in a way that we have never seen, because of the changes in the jet stream. We are seeing periods of extended high temperatures in much of North America contrast to extended cold period or flood periods in other areas. The problem they currently have in Ft. McMurry, Canada is a similar thing because the Jetstream is locking in that high pressure area it draws moisture out of the arboreal forest. Once that happens it becomes very dangerous because of fire risk, which is precisely what’s happened. And if you look around the world you see in China a lot of bush fires that are burning, as well as in the Himalayas.”

“The Paris agreement which was entered into last December was hailed as a diplomatic triumph, in a practical sense it was a complete disaster. What it does is give people a sense of complacency to feel that they can stay below 2 degrees temp increase, and indeed below 1.5 degrees c as a maximum from pre industrial temperatures. The hard fact is that it is impossible to now stay below 1.5 degrees Celsius. We have probably already locked in 1.8 or 1.9 because of what we have historically done, even if we don’t emit another ton of carbon ever again. When you look at the changes taking place we are moving to a world of 3.5 degrees C. It is completely unrealistic, and frankly totally irresponsible to say that we are aiming for 1.5 degrees C. The technology, like carbon capture are not providing the results that we require. Its complete non sense, and major corporations around the world are accepting Paris with no understanding of what the implications are.”

“So sadly we are at the point where the chances of getting on top of the major impacts of climate change are getting slimmer and slimmer by the day. My feeling is the only way we get ahead of this is to declare a global emergency and get on a wartime footing basis, which more and more people are talking about.”

“If you are concerned about the economy, quite frankly the economy is going to have to be turned on its head, if we are serious about doing anything. Which we may not be; it may be that the problem is too difficult, and the world’s leadership and the economic system is unable to cope. You had this happen in World War 2, you had economies turned on their head in the US, the UK, Germany and Japan to meet a completely different demand. I don’t say that lightly, but that’s what scientists are telling us is now required and it’s been patently bloody obvious for the last 10 years.”

The evidence is now mounting that we are in irreversible positions in a number of areas around the world, and we starting to see the financial and social instability that comes from that. Syria is basically a climate change issue, the same in North Africa. It is basically climate change driven.”

The issues there stem from the drought of 2012, and what that did to food prices, and the worsening climate situation since then. The result has been social upheaval, revolution, war, starvation and migration.

“Much bigger issue is the entire economic system is set up on a premise that is not sustainable. We are using up natural capital in a way that is completely unsustainable, increasingly so since the 1970’s. Now we are getting to the point where we have real limits emerging which historically we have managed to get around.”

“Demand has not returned and we have not been able to reactivate growth since the financial crisis, which was essentially caused by peak oil, in my view. It wasn’t the only thing, there were the issues of ethics and banks and subprime mortgages, but the underlying cause was high energy costs.”

At that time oil spiked to $147/bbl.

Dunlop explains that the costs of oil exploration have been increasing, and even with the advent of fracking, oil is only profitable at prices of $80-$100/bbl. “Fracking is a mirage,” he says.

“Because of acceleration of climate change we need to change our economies to a low carbon footing far faster than anyone anticipated.”

He contends that we are in a dangerous situation because, “the economy still has not recovered from the shock of 2008, and quantitative easing and monetary policy have been exhausted.” He continues, “Their ability to bail out the system again like in 2008 is considerably less than previously done. As all of these things come together, it seems to me the world economy is in fairly deep ****, to be quite frank, because it doesn’t take very much to tip it over the edge. We don’t have the levers to pull ourselves out as we once did.”

I asked how he advises companies on sustainability. On this note he says he is viewed by many in business as an extremist and that “people in the business world don’t want to know about climate change. We have a real problem in the US and the rest of the world, that leaders of business and politics, who have been in energy and commodities don’t want to accept that they will have to accept changes that will turn their businesses on their heads. There really hasn’t been much interest in listening to scientists and the risk implications. That is starting to change. I think people are waking up to the fact that the problem is much, much bigger than they had thought. And I think there is a major corporate governance issue in this because the investment community is suddenly starting to realize that they and the directors may be personally liable for not seriously addressing climate risk.”

“Major corporations have to recognize the need for change, because if they don’t they won’t have much basis for economic activity. What people fail to understand, the implication of a 4 degree increase, which is where we are headed, probably more than 4, is a reduction in world population from 7 billion people down to 1 billion people. We are talking about a genuine existential issue.”

“That is not a stable global economy. So any thought that we can somehow do minor incremental tweaking is frankly nonsense. We have never had an issue like this before. Our economic system is not designed to handle this.”

Dunlop states the role of corporate directors is to identify these types of risks and direct change with their companies to address risks, but you can only do that in an environment of brutal honesty.

I asked if there are any companies that are leaders in addressing climate change. He states there is a great deal of green washing going on, but “companies are not accepting the degree of change required. It’s improving, but it is not enough.”

What would be the one thing that would need to change immediately in order to make a difference going forward? “Acceptance of the need for emergency action. That this is a genuine risk we have never ever seen before and it’s going to need a completely different approach. We have awakened too late to make a graduated response. There is no way around it.” He mentions, “We are subsidizing the fossil fuel industries five times the level of renewables. Those subsidies have to stop. Once there is a level playing field new technologies can have a real shot at making a difference.”

“Many of the IPCC studies that assume we are able to stay below 2 degree C, do so having only a 50-60% likelihood of that occurring. As an engineer you don’t build a skyscraper or a bridge with a 50-50 chance that it will fall down.” That’s a great analogy.

I asked Ian what kind of world his kids and grandkids will inherit. “A rather nasty one, unless we get off our ass and do something about it. The fact is the population estimate I mentioned is quite real. Dropping from 7 billion to 1 billion people, it’s not going to be a very nice place. How it occurs and how fast it occurs is difficult to predict. People need to get their heads around that and be honest about talking about it.”

What is the bottom line? Take action, get involved, be prepared for the changes to come.

Retirement Income. Tax Efficient Planning.

Life Insurance. Disability Insurance

Socially Responsible Investing

 

To learn more contact:

James Cox

Cell: 215 768 5883

Email: james_cox@devon-financial.com

Devon Financial Partners 744 W Lancaster Av Suite 235 Wayne, PA 19087

This material contains the current opinions of the author but not necessarily those of Guardian or its subsidiaries and such opinions are subject to change without notice.

Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 7 Hanover Square, New York, NY 100034. 888-600-4667. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of 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 PAS or Guardian. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. 2016-23526 Exp. 5/18

Climate change, economy, new economy, retirement

Rising global temperatures will hurt global GDP

A study just released by the science journal Nature makes the connection between the rise of global temperatures and the negative impact this has on GDP around the world. In the study, titled “Global non-linear effect of temperature on economic production”, researchers found that “fundamental productive elements of modern economies, such as workers and crops, exhibit highly non-linear responses to local temperature even in wealthy countries.” Meaning as temperatures rise, the effect is much greater and accelerates in ways that are potentially disastrous.

One of the lead authors, Marshall Burke of Stanford’s Department of Earth System Science, calls their study “the first evidence that economic activity in all regions is coupled to the global climate.”

The study continues, “If future adaptation mimics past adaptation, unmitigated warming is expected to reshape the global economy by reducing average global incomes roughly 23% by 2100 and widening global income inequality.”

The impact on poorer, less developed countries will be much greater than wealthier industrial countries.

This data changes the way we need to plan our financial futures. This is not “Leave It To Beaver” 1960. We are in a new world and need to re-examine how we as individuals get financially from point A to point B.

I will be hosting a webinar on Climate Change and the impact on the Economy in the coming weeks.

Retirement Income. Tax Efficient Planning.

Life Insurance. Disability Insurance

Socially Responsible Investing

 

To learn more contact:

James Cox

Cell: 215 768 5883

Email: james_cox@devon-financial.com

Devon Financial Partners 744 W Lancaster Av Suite 235 Wayne, PA 19087

This material contains the current opinions of the author but not necessarily those of Guardian or its subsidiaries and such opinions are subject to change without notice.

Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 7 Hanover Square, New York, NY 100034. 888-600-4667. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of 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 PAS or Guardian. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. 2015-13205 Exp. 10/17

Climate change, economy, retirement

The Paris attacks and climate change… connecting the dots

The sad truth is that the attacks in Paris Nov. 13th are another expression of the collateral damage caused by the forces of global climate change. And there will be more such examples in the years to come…

Climate Change is raising global temperatures. In the emerging markets, especially the Middle East, populations are expanding rapidly as jobs, water and food becomes scarcer. This trend is expected to continue and accelerate. A recent study in the journal Nature linked rising CO2 and temperatures to declining GDP, especially outside of the US and Europe. They forecast emerging market GDP to decline by 75% by the end of the century.

The drought of 2012 led to a spike in food prices globally. As a result of food prices and extreme shortages, many people in North Africa and the Middle East took to the streets. The revolutions in Egypt, Tunisia, Libya, and Syria were the result of populations not being able to accept conditions of poverty, oppression and starvation any more. The people fleeing Syria today are victims of Climate Change. The people in France who died and were injured are victims of Climate Change.

We will have to find a way to deal with a variety of escalating challenges…

Migration—people will seek out a better quality of life for themselves and their family;

The growth of ISIS and similar terror states that will find their ranks swell because of populist despair in the emerging markets;

Global famine and thirst…

How do we sit back in a land of wealth and plenty and watch the suffering that is to come? Most people view Climate Change as a challenge we will have to face in 10 or 20 or 100 years. The truth is that we are facing it now.

As a financial advisor it is a challenging environment. Understanding the larger picture has never been more critical, especially when you have the competing interests trying to shape or force policy and opinion.

To discuss options as an investor in this environment to protect and grow your wealth, please feel free to reach out to me at james_cox@devon-financial.com

Retirement Income. Tax Efficient Planning.

Life Insurance. Disability Insurance

Socially Responsible Investing

To learn more contact:

James Cox

Cell: 215 768 5883

Email: james_cox@devon-financial.com

Devon Financial Partners 744 W Lancaster Ave., Suite 235, Wayne, PA 19087

— http://www.nature.com/nclimate/journal/v5/n2/full/nclimate2481.html

Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 7 Hanover Square, New York, NY 100034. 888-600-4667. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of 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 PAS or Guardian. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. GEAR 2015-14612 Exp. 11/17

Climate change, economy, retirement

Rising temperatures threaten global GDP

A study just released by the science journal Nature makes the connection between the rise of global temperatures and the negative impact this has on GDP around the world. In the study, titled “Global non-linear effect of temperature on economic production”, researchers found that “fundamental productive elements of modern economies, such as workers and crops, exhibit highly non-linear responses to local temperature even in wealthy countries.” Meaning as temperatures rise, the effect is much greater and accelerates in ways that are potentially disastrous.

One of the lead authors, Marshall Burke of Stanford’s Department of Earth System Science, calls their study “the first evidence that economic activity in all regions is coupled to the global climate.”

The study continues, “If future adaptation mimics past adaptation, unmitigated warming is expected to reshape the global economy by reducing average global incomes roughly 23% by 2100 and widening global income inequality.”

The impact on poorer, less developed countries will be much greater than wealthier industrial countries.

This data changes the way we need to plan our financial futures. This is not “Leave It To Beaver” 1960. We are in a new world and need to re-examine how we as individuals get financially from point A to point B.

I will be hosting a number of seminars in New York, Philadelphia, and New Jersey in November 2015. To learn more, be sure to attend one of these programs.

http://www.nature.com/nature/journal/vaop/ncurrent/full/nature15725.html

Retirement Income. Tax Efficient Planning.

Life Insurance. Disability Insurance

Socially Responsible Investing

To learn more contact:I

James Cox

Cell: 215 768 5883

Email: james_cox@devon-financial.com

Devon Financial Partners 744 W Lancaster Av Suite 235 Wayne, PA 19087

This material contains the current opinions of the author but not necessarily those of Guardian or its subsidiaries and such opinions are subject to change without notice.

Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 7 Hanover Square, New York, NY 100034. 888-600-4667. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of 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 PAS or Guardian. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. 2015-13205 Exp. 10/17