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.
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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.

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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.

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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?

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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.

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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.

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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.

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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.

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economy, retirement

Trick or Treat? The Potential Downside of Tax Reform for Investors

 

There is an old story that goes “beware what you wish for…” Things don’t always turn out as expected.

 

Along those lines I watched a fascinating interview of Tom Lee, head of research at Fundstrat, on Bloomberg this morning.

 

His feeling is that a Tax cut, as it is currently being discussed, could be negative for investors. “There’s two reasons; First, when cutting tax rate you raise the after tax cost of debt. Leverage becomes a problem for a lot of businesses. Second, because you are cutting tax rates you are effectively giving cash to all businesses, even businesses where you want to reduce allocation.“

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charitable giving, life insurance, protection

Creating Social Impact Through Giving

 

Every day millions are helped to improve their lives due to the generosity of others. As a community we each have a stake in the success of every individual, every family. Many organizations that make massive positive contributions are struggling due to cutbacks in government supports.

We as stakeholders in American society have a responsibility to give back and help those less fortunate. A recent example of this ethos:

“The $219 million gift from the A. James & Alice B. Clark Foundation, announced Wednesday, shatters the previous record for a single donation to U-Md. — $31 million — set three years ago. It is also among the most significant gifts to any public university in the country, coming at a time when many schools have ramped up fundraising to offset declines in state support.”

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