Q3 2012 Quarterly Economic Update
THE QUARTER IN BRIEF While fundamentals may not have supported a powerful rally in Q3 2012, the policy decisions of central banks certainly did. The Federal Reserve launched its third round of easing in the past four years during the quarter and the European Central Bank also embarked on a new stimulus effort. Wall Street seemed to put concerns about Europe and China and job growth on the back burner – the Dow gained 4.32% in three months. The real estate market – already looking better – got a shot in the arm from the Fed. Commodity markets heated up. Our economy still appeared lethargic, but bulls ran freely during a pleasantly surprising quarter for investors.
Stocks & Presidential Elections
Stock market historians have repeatedly analyzed market behavior in presidential election years, and what stocks do when different parties hold the reins of power in Washington. They have noticed some interesting patterns through the years which may or may not prove true for 2012.
Major Risks to Family Wealth
All too often, family wealth fails to last. One generation builds a business – or even a fortune – and it is lost in ensuing decades. Why does it happen, again and again?
It is because families fall prey to serious money blunders – old and new. Classic mistakes are made, and changing times aren’t recognized.
Financial Considerations for 2013
We are now in plain view of the “fiscal cliff”. After the election, Congress may or may not end up keeping income and estate tax rates at their recent levels. Next year may bring some notable financial developments, and it isn’t too soon for households to think about them.
The Fed Launches QE3
With the fiscal cliff roughly 100 days away and the first Tuesday in November still too far off, institutional and retail investors were counting on the Federal Reserve to combat market anxiety with a new stimulus. In its latest policy announcement, the Fed came through – on September 14, the central bank launched its third round of easing in the past four years.1
How are high gas prices affecting you?
Rob Olson of Fox 9 News asked me about the high gas prices yesterday; and it's no surprise - gas prices have spiked and are averaging more than $4/gallon in many places. Do you, or have you had to, make changes as prices rise? How are these prices affecting you?
Ways to Pay for College
Today’s average student borrower takes out more than $25K in loans. Education debt has reached record levels in America – more than $1 trillion. In the face of those numbers, parents and students are looking for assorted ways to pay for college without incurring big liabilities. In addition to grants, loans, merit-based aid and your student holding down a job, there are other ways to reduce college cost – some little recognized.
Major Retirement Planning Mistakes
Much has been written about the classic financial mistakes that plague start-ups, family businesses, corporations and charities. Aside from these blunders, there are also some classic financial missteps that plague retirees.
Reverse Mortgages Reconsidered
Is a reverse mortgage worth it? Before this last recession, couples who asked their retirement advisors if they should get a reverse mortgage were often given a quick answer: “No.”
Today, the answer to that question might be “yes”. In an environment with minimal interest rates, these loans can offer retired homeowners a source of tax-free cash, either in periodic payments or a lump sum.
Why is the Market Advancing?
On August 21, the S&P 500 hit a 4-year high. It climbed 3% in the first three weeks of the month following a 1.26% July gain. Across the past four weeks, the index’s total return has been just under 4%.1,2,3
Unexpected? You might say so. You can’t predict how the market will behave. This summer, stocks are managing to advance despite lingering threats.
Managing the Ups & Downs of Irregular Income
When your income stream is uneven, you must deal with some distinct financial issues. Besides cash flow, what do you do about your tax strategy? How should you try to save? If you are self-employed, what about health coverage?
Reasons to Recertify a Power of Attorney
Estate planning has many “fine points”, and there is one detail too often overlooked. It is a good idea to recertify a Durable Power of Attorney that is more than 60 days old.
NEXT Financial Group, Inc. Named 2012 Broker/Dealer of the Year
On Monday, August 20, 2012, NEXT Financial Group, Inc. (“NEXT”) was named “Broker-Dealer of the Year” by Investment Advisor magazine for an unprecedented eighth time*.
Financial Questions for the Retiring Homeowner
Do you see yourself retiring in the near future? In planning for that transition, you might want to consider the state of your mortgage, the state of your property taxes, and the state of your living quarters.
Identity Theft Warning Signs
According to data compiled by Norton, cybercrime hits over 74 million Americans annually. You know you have been victimized when you get that courtesy call or email from a bank or credit card issuer - but is there a way you can tell prior to that moment?1
There are warning signs of cybercrime. Watching out for them just might save you money and headaches. If you notice any of the following conditions, pay attention.
When Will Interest Rates Rise?
Here’s a trivia question for you: when was the last time the Federal Reserve raised the benchmark U.S. interest rate?
The answer...
Retiring Solo
Most retirement planning literature portrays a retirement transition in the context of a couple or a family – but what about those who retire alone? What particular challenges do they face, and how must their preparation for retirement differ? Retiring alone presents unique challenges...
In-Service 401k Withdrawals & Retirement Income Planning
Can you withdraw money from your 401(k) while you are still employed? Not everyone should; not everyone can. However, if you can, it may mean that you can effectively implement part of your retirement income plan before you retire. If your 401(k) plan permits it, you can take an in-service withdrawal and redirect some of your 401(k) funds into another investment vehicle that offers you income guarantees.
Looking at the New Estate Tax Laws
With 2013 approaching, many families and their financial, tax and legal consultants are weighing major estate planning decisions. A short-term window of opportunity may be closing. The relatively low estate tax rates we have now may soon disappear, along with one of the largest federal tax breaks available in decades.
What is a Reasonable Retirement Savings Rate?
How much salary should you defer into a retirement plan? Ultimately, the answer is “however much your budget allows you to contribute”. The big-picture question, however, is whether you need to contribute more to your retirement savings in order to maintain your lifestyle after your career is done.