Expect the Unexpected

At some point, everyone’s made a decision with the best intentions, only to have things go differently than they planned. Because nobody can predict how the markets will behave, investments can sometimes fall into this category.

We believe individuals should create a financial strategy that’s designed to help them work toward their financial objectives, but at the same time speak to their values, and reflect their risk tolerance and   timeline for retirement.

With that being said, we live in a world economy where an economic or political blip on the other side of the globe can impact our financial situation.¹ This can make it difficult for money managers, business leaders and politicians to agree on decisions that will lead to the most positive impact for the greatest number of people.

Inevitably, it seems, someone is left out or disadvantaged. In some other instances, the whole effort is undermined, and the only takeaway are the lessons learned from the shortcomings. For example, the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act comprised more than 2,300 pages of comprehensive reform proposals to help safeguard America’s financial system.²

However, now six years down the road, much of the law is still not implemented. As of July 2015, only 63 percent of rules had been finalized, while about 20 percent had missed deadlines, the majority of which concern derivatives and mortgage reforms.³

One lesson here is that sometimes trying to do too much results in too little. We might do well to create overarching goals but carve out shorter-term and more easily achievable solutions.

¹ Christopher S. Rugaber. The Globe and Mail. Aug. 14, 2016. “U.S. economy grew at tepid 1.1% pace in spring.” http://www.theglobeandmail.com/report-on-business/international-business/us-business/us-growth-revised-down-for-second-quarter-consumer-spending-raised/article31570816/ . Accessed Aug. 25, 2016.

² David Arthur Skeel. Wharton Public Policy. December 2015. “Five Years after Dodd-Frank: Unintended Consequences and Room for Improvement.” https://publicpolicy.wharton.upenn.edu/issue-brief/v3n10.php#section2. Accessed Aug. 25, 2016.

³ Ibid.

Content prepared by Kara Stefan Communications. 

We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the complete loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

Investment Advisory Services offered through Global Financial Private Capital, LLC, an SEC Registered Investment Advisor.

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Are You Suffering From Financial Stress?

Despite the strengthening economy and positive outlook, some people are still experiencing high levels of financial stress. Many are worried about meeting monthly expenses, with 30 percent reporting in a recent survey of over 1,000 people that concern over their financial situation keeps them up at night.¹

A 2014 report by the American Psychological Association showed money has been the most common source of stress for Americans since 2007, followed by work, the economy, family responsibilities and health concerns.²

Financial stress is pervasive in that it can impact so many areas of your life, from sleep habits to interactions with friends and family to reduced productivity at work. Research has found a correlation between economic insecurity and increased complaints of physical pain, leading to additional health care spending and further financial woes.³

It’s one thing to be stressed out because you can’t find a job, but there are plenty of working Americans who are stressed out because of their occupation. According to CareerCast, some of the more stressful positions include public relations agent, event coordinator, broadcaster, newspaper reporter and taxi driver.⁴

Millennials, who represent about 25 percent of the U.S. population, report feeling the most financially related stress.⁵ Small wonder, considering so many are either unemployed after college or work part-time, low-paying jobs that sometimes don’t require higher education.

Fortunately, now that jobs are on the rise, employers are having to compete for quality workers. For recent college graduates, one of the most appealing benefits is a program that helps them pay down student loans.⁶

Regardless of generation, sometimes just working with a financial professional to develop a financial strategy can help ease your financial stress as you work toward financial independence.

Content prepared by Kara Stefan Communications.

¹ Dave Shaw. MarketPlace. March 14, 2016. “The economy’s improving, but Americans’ economic anxiety persists.” http://www.marketplace.org/2016/03/11/economy/anxiety-index/economys-improving-americans-economic-anxiety-persists. Accessed Aug. 19, 2016.

² Suzanne Woolley. Bloomberg. Feb. 4, 2015. “This Is the Most Stressed-Out Person in America.” http://www.bloomberg.com/news/articles/2015-02-04/this-is-the-most-stressed-out-person-in-america. Accessed Aug. 26, 2016.

³ Association for Psychological Science. Feb. 22, 2016. “Experiencing Financial Stress May Lead to Physical Pain.” http://www.psychologicalscience.org/index.php/news/releases/experiencing-financial-stress-may-lead-to-physical-pain.html. Accessed Aug. 22, 2016.

⁴ CareerCast.com. 2016. “The Most Stressful Jobs of 2016.” http://www.careercast.com/jobs-rated/most-stressful-jobs-2016. Accessed Aug. 19, 2016.

⁵ Kent E. Allison. The Huffington Post. April 27, 2016. “Financial Stress Surging Among Millennials.” http://www.huffingtonpost.com/kent-e-allison/financial-stress-surging-among-millennials_b_9787658.html. Accessed Aug. 19, 2016.

⁶ Jenny Che. The Huffington Post. Sept. 22, 2015. “This Firm Will Help Employees Pay Off Their Student Loans.” http://www.huffingtonpost.com/entry/pwc-student-loans_us_56019508e4b08820d91a58a6. Accessed Aug. 22, 2016.

We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the complete loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

Investment Advisory Services offered through Global Financial Private Capital, LLC, an SEC Registered Investment Advisor.

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The Importance of Investment Mix

As individuals progress from young adults to the age of retirement, their investment mix traditionally changes to meet their needs. This is typically a reflection of a person’s goals, tolerance for risk and investment timeline. Generally, as the time nears to tap into investments for retirement income, the mix of assets becomes more conservative.

However, some may see the situation a little differently these days, as the recession taught various generations different lessons. Older generations that lost money -- or at least lost ground in their savings contributions -- may now be more likely to hold a larger share of equities than in the past in an effort to accumulate enough savings before retirement.

However, many members of the younger generations, who struggled to find jobs while watching their parents lose them, may have come away with a different perspective: save and spend conservatively. Recent research into the financial behaviors of young millionaires found this to be true even though they had amassed a fortune at such a young age. The study found that some millionaires under 40 are even more conservative than baby boomers in that they favor holding more cash, are less likely to invest in stocks and more prone to putting money in alternative investments (e.g., gold, hedge funds).¹

We are all influenced by a variety of factors, including how our parents saved and spent money, the economic and stock market upturns and declines we’ve lived through and our own career paths and financial success. That’s why we believe you can’t always choose investments based solely on your age or your goals. We can help you develop a financial strategy that takes into account all your personal experiences. What investments you select and how they work together can be just as important as your timeline and capacity for risk. Please remember that all investing involves risk, including the potential loss of principal.

Speaking of risk, while cash often seems like a safe bet, it’s important to remember the potential impacts of inflation may cause cash to lose value in the long run. A sustained period of low interest rates on fixed income financial products can create the same issue, which is why many pre-retirees and even retirees are holding more stocks in their portfolios today than in previous generations.² For some, losing money may be an even bigger concern than running out of it.

In 2016, we’ve seen a good bit of market volatility. In this type of environment, we believe that a diversified portfolio tends to work well. During the first half of the year, diversified, global portfolios delivered both higher returns and less volatility than all-equity portfolios.³

Diversified portfolios can deliver more stable returns over time, as well as the ability to match your risk tolerance with an investment mix. Instead of actively managing a portfolio and pondering whether to buy or sell based on market performance, you may want to consult your financial professional about a well-diversified mix. Such diversification may help to mitigate risk and takes advantage of periods of outperformance without the stress, fees and taxes that may be associated with trying to time the market. In the end, attempts at market timing tend to generate smaller returns than what the overall market does over a long period of time.⁴

Your account mix may be important, too. A new study that compared saving strategies for retirement accounts over the next 30 years found that most individuals, both young and old, would be best served by a mix of assets in both traditional (401(k)/IRA) and Roth accounts.⁵

¹ Jonnelle Marte. The Washington Post. July 5, 2016. “How millionaires under 40 manage their money.” https://www.washingtonpost.com/news/get-there/wp/2016/07/05/how-millionaires-under-40-manage-their-money/. Accessed Aug. 12, 2016.

² Christine Benz. Morningstar. Jan. 21, 2016. “6 Retirement Asset-Allocation Pitfalls to Avoid.” http://news.morningstar.com/articlenet/article.aspx?id=737073. Accessed Aug. 12, 2016.

³ Jeffrey L. Knight. Columbia Threadneedle. July 18, 2016. “Diversification strikes back in 2016.” https://blog.columbiathreadneedleus.com/diversification-strikes-back-in-2016?cid=GPemail. Accessed Aug. 12, 2016.

⁴ Fidelity. Aug. 3, 2016. “The pros’ guide to diversification.” https://www.fidelity.com/viewpoints/guide-to-diversification. Accessed Aug. 12, 2016.

⁵ ThinkAdvisor. July 11, 2016. “Mix Roth, Traditional 401(k)s for Better Outcomes.” http://www.thinkadvisor.com/2016/07/11/mix-roth-traditional-401ks-for-better-outcomes?t=the-retiree%3Fref%3Dchannel-other-topics&slreturn=1471042680&page_all=1. Accessed Aug. 12, 2016.

Content prepared by Kara Stefan Communications.

We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the complete loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

Investment Advisory Services offered through Global Financial Private Capital, LLC, an SEC Registered Investment Advisor.

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Stock Market Performance During Election Years

There’s only so much a U.S. president can do to improve the performance of the stock market, but that doesn’t keep people from connecting the highs and lows with the person sitting in the Oval Office.

Regardless of party, the markets have traditionally improved during election years. Eighteen of the 22 election years since 1928 have yielded positive returns.¹ The average return of the S&P 500 is 12.6 percent when the incumbent is up for re-election. However, in years like 2016, when the president is on the way out, the S&P 500 actually drops an average of 2.8 percent.²

Another variable to consider is who is in control of Congress during a presidential election year. One market analyst crunched the data to reveal that when Republicans controlled Congress, the S&P 500 averaged 19.7 percent. In years with a split or Democrat-controlled legislature, the S&P 500 averaged 7.6 percent and 3.2 percent, respectively.³

Election years pose unique challenges. One political party is always quick to point out the negative effects the other may have on the nation’s financial situation. The winner of the election may not determine how stocks perform, but some market observers have theorized the market can actually predict the outcome of a presidential election.

If the stock market posts gains in the three months before Election Day, the candidate from the political party already in the White House has a very high probability of winning. In contrast, the party trying to retake the Oval Office has a better shot if stocks tumble.⁴

Clearly, politics do play a role in influencing the stock market. However, it is important to not make financial decisions based on election predictions and historical returns of election years, as they are not an indicator of future results. It’s also important to work with a financial professional to develop a financial strategy designed to help you work toward your particular goals. Please give us a call if we can help you with that.

Content prepared by Kara Stefan Communications.

¹ Columbia Threadneedle. Spring 2016. “Politics, Stocks and Your Portfolio.” https://www.investor.columbiathreadneedleus.com/content/columbia/pdf/SPRING-2016_NEWSLETTER.PDF. Accessed Aug. 5, 2016.

² Merrill Lynch. March 10, 2016. “How Presidential Elections Affect the Markets.” https://www.ml.com/articles/how-presidential-elections-affect-the-markets.html. Accessed Aug. 5, 2016.

³ William Watts. Marketwatch. Dec. 29, 2015. “2016 predictions: What presidential election years mean for stocks.” http://www.marketwatch.com/story/2016-predictions-what-presidential-election-years-mean-for-stocks-2015-12-29. Accessed Aug. 5, 2016.

⁴ Adam Shell. USA Today. July 26, 2016. “Stocks could predict who wins White House.” http://www.usatoday.com/story/money/markets/2016/07/25/stocks-predict-who-wins-white-house/87440314/. Accessed Aug. 5, 2016.

We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the complete loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

Investment Advisory Services offered through Global Financial Private Capital, LLC, an SEC Registered Investment Advisor.

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Some Ways to Account for Inherited Assets

As difficult as it is to lose a loved one, it would be nice if the financial situation sorted itself out after a death.

Unfortunately, receiving the assets of a deceased spouse or family member can be a complex process. Most people have their money stored in a variety of different financial vehicles -- checking and savings bank accounts, CD and money market accounts, investment accounts, employer retirement plans and pensions, life insurance policies, annuities and even real property.

So, how do you claim assets that are passed on to you? And should you just leave it where it is or transfer it to an account or policy in your name?

In the case of bank accounts, it helps if the decedent had a “payable-on-death” (POD) beneficiary form on file with the bank. If not, those assets will have to go through probate before they can be released. If the bank accounts were held in a living trust, the funds will be transferred to the beneficiary named in the trust and will avoid probate.¹

If you inherit an IRA account, options vary based on whether you’re the account owner’s spouse. If you are the spouse, you can assume the IRA as your own, inherit the IRA, or disclaim the IRA. If you are not the spouse, you may either disclaim the IRA or inherit the IRA in which you would be required to take a required minimum distribution (RMD).²

If you inherit a non-retirement investment account, you can either transfer the proceeds from the inherited account into a new account in your name, or you can disclaim it and it will then pass to the other primary beneficiaries or, if none exist, to any secondary beneficiaries. If you disclaim an account, you can’t change your mind later.³

If you inherit a house, you don’t have to pay income taxes on its value. However, if you decide to rent the house, you will have to report the rent payments you receive as part of your taxable income each year. Therefore, you must pay income tax on the payments you receive.⁴

To claim life insurance proceeds and annuity benefits, each beneficiary needs to complete the insurance company’s claim form and submit it with a certified copy of the death certificate.⁵ Interestingly, many life insurance proceeds are never paid out because the owner didn’t tell his or her beneficiaries about the policy before dying. If you suspect this may have happened, visit MissingMoney.com (a database of governmental unclaimed property records) to conduct a search.⁶

Everyone’s financial situation is unique, so you could face any number of scenarios when claiming assets following the death of a spouse or loved one. If you want to prepare in advance to help simplify the process for your beneficiaries down the road, feel free to give us a call to review your current financial vehicles to ensure a beneficiary is listed.

¹ Mary Randolph. Nolo.com. 2016. “What Happens to Bank Accounts at Your Death?” http://www.nolo.com/legal-encyclopedia/what-happens-bank-accounts-your-death.html. Accessed June 10, 2016.

² Vanguard. 2016. “I’m inheriting an IRA.” https://investor.vanguard.com/inherit/ira. Accessed June 10, 2016.

³ Vanguard. 2016. “I’m inheriting an account that’s not an IRA.” https://investor.vanguard.com/inherit/nonretirement. Accessed June 10, 2016.

⁴ Mary Randolph. AllLaw.com. 2016. “Must You Pay Income Tax on Inherited Money?” http://www.alllaw.com/articles/nolo/wills-trusts/must-pay-income-tax-inherited-money.html. Accessed June 10, 2016.

⁵ Mary Randolph. Nolo.com. 2016. “How Beneficiaries Can Claim Life Insurance and Social Security Benefits.” http://www.nolo.com/legal-encyclopedia/beneficiaries-claim-life-insurance-32433.html. Accessed June 10, 2016.

⁶ Annie Shalvey. WPRI-12. May 16, 2016. “RI treasurer’s office: Thousands owed life insurance benefits.” http://wpri.com/2016/05/16/ri-treasurers-office-thousands-owed-life-insurance-benefits/. Accessed June 10, 2016.

We are not permitted to offer, and no statement contained herein shall constitute, tax or legal advice. Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation.

We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the complete loss of principal.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions.  If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

Investment Advisory Services offered through Global Financial Private Capital, LLC, an SEC Registered Investment Advisor.

Content prepared by Kara Stefan Communications

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Boomer Boom or Boomer Bust?

The phrase “boom or bust” refers to a scenario of great prosperity or economic growth followed suddenly by a period of decline. Some economists suspect the aptly termed “baby boomers” could potentially create just such a phenomenon during their twilight years.

As the largest demographic group in history, baby boomers have been an important economic force over the past 70 years. Their influences include the suburbanization of cities, women breaking into corporate America and an overall prosperous period of consumer demand yielding great leaps in technology, health care and education — all of which also have impacted the securities markets. Now, with this massive population in or approaching retirement, will the drop off in the workforce and drain of public entitlement programs create additional challenges?

Putting aside the generational impact of baby boomers for a moment, we are interested in the financial health and well-being of our individual clients. If we can help you create a retirement income strategy you can feel confident about, please give us a call.

Presently, baby boomers hold the highest percentage of net worth among Americans and account for 40 percent of consumer demand.¹ This fact, coupled with trends for a more active lifestyle and longer lifespan, means that baby boomers will continue driving demand in consumer markets, particularly with regard to discretionary spending. Naturally, the health care and long-term-care industries are likely to continue benefiting from this generation as well.

Some analysts see value stocks on track for significant growth due to boomer demand for conservative capital appreciation. Value stocks have begun to outperform this year due to relatively low prices (compared to growth stocks) and a better global outlook than in recent years.

According to analysts at Merrill Lynch, value stocks typically perform best when expectations for economic growth are on the rise and there is less fear of recession. The wealth manager observed that for value stocks to continue to outperform, corporate profitability needs to improve, particularly return-on-equity at value firms.²

Other investments that appear to benefit from boomers’ desire for conservative growth include low-volatility ETFs, which have substantially increased assets under management this year.³

Another theory posits that, as boomers retire and start taking distributions from their portfolios, market valuations will shrink. The concern is that the Gen X population — born after the baby boomers — is not large enough or wealthy enough to absorb the sell-off, which will drive down the value of those investment shares.⁴

Nor are succeeding generations plentiful enough to purchase the 5.5 million small businesses owned by baby boomers, currently valued at $10 to $15 trillion. Without buyers, a boomer relying on the sale of his or her business to fund retirement could experience a rude awakening.⁵

Baby boomers also continue to impact residential real estate. One strong trend is that empty nesters ae migrating back to the metro areas they abandoned for the suburbs 40 years ago. Boomers are now finding the restaurants, shops and cultural venues of walkable cities and college towns as appealing for their retirement years as the mainstay southern climates.⁶

¹ Jeff Reeves. USA Today. April 2, 2016. “The best investment for Baby Boomers may be in themselves.” http://www.usatoday.com/story/money/personalfinance/2016/03/30/best-investment-baby-boomers-may-themselves/81986134/. Accessed June 3, 2016.

² Dennis Stattman. Merrill Lynch. April 2016. “The Monthly Letter.” https://mlaem.fs.ml.com/content/dam/ML/Articles/pdf/GWIM-CIO-Monthly-Letter-April-2016.pdf. Accessed June 3, 2016.

³ Yakob Peterseil. Bloomberg. May 31, 2016. “Boomers Fueling a Boom In Low-Volatility ETFs.” http://www.bloomberg.com/news/articles/2016-05-31/boomers-fueling-a-boom-in-low-volatility-etfs. Accessed June 3, 2016.

⁴ Lawrence Hamtil. ValueWalk. May 15, 2016. “Will Aging Baby Boomers Doom the Stock Market?” http://valuewalkposts.tumblr.com/post/144395831485/baby-boombers-stock-market. Accessed June 3, 2016.

⁵ Donald Feldman. Business2Business Magazines. April 1, 2016. “Boomer Bust: Why exit planning is becoming more critical than ever.” http://www.business2businessonline.com/Article/1689. Accessed June 3, 2016.

⁶ Clare Trapasso. Realtor.com. May 17, 2016. “Reverse Migration: How Baby Boomers Are Transforming City Living.” http://www.realtor.com/news/trends/why-more-baby-boomers-are-moving-back-to-cities/. Accessed June 3, 2016.

We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the complete loss of principal.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

Investment Advisory Services offered through Global Financial Private Capital, LLC, an SEC Registered Investment Advisor.

Content prepared by Kara Stefan Communications

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More Options Don’t Always Lead to More Money

When it comes to managing finances, people have more choices than ever. Convenience may be at an all-time high — with financial vehicle options that fit a wide variety of needs — but this also means there are more choices that aren’t necessarily in the clients’ best interests.

The growing number of options makes it more difficult to properly analyze all of them, leading more and more Americans to take on more risk than is necessary to meet their goals. It’s become common for people to opt for a shortcut rather than taking the slow and steady route to build up their savings.

For example, credit cards have become increasingly popular since their creation in the 1960s, and it’s now become the norm to buy items now and pay later. This option gives consumers the ability to pay small monthly minimums which, when paired with high interest rates, could turn manageable debt into out-of-control debt.

The already-complicated field of finance has only gotten more complex over the past 50 years. This is all the more reason to rely on financial professionals for financial advice, as opposed to searching around online or taking guidance from a robo-advisor. It is important to regularly evaluate your financial strategy to ensure it reflects your current goals and objectives, so please keep us in mind any time you’re considering making changes to your strategy.

The average household debt, as a percentage of personal income, increased sixfold from 1946 to 2008.¹ And while the concept of debt may not be that difficult to understand, the complicated rules that surround credit scoring are hardly intuitive. For example, leaving cards with zero balances open doesn’t hurt your credit score, but closing cards without a balance doesn’t help it.²

Interestingly, while all of these financial vehicles offer people more choices, as a general rule, Americans have become more averse to change. According to a recent study, we are now less likely to change jobs, relocate to another state or open a startup business than we were 30 years ago. As a result, Financial Times reports that productivity is likely to drop in the U.S. for the first time in over 30 years.³

Even seemingly smart investment choices experience volatility. It’s important to remember that investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. However, just because a financial vehicle has downsides doesn’t mean you should eschew it if it is appropriate for your situation.

Here’s one example: 529 college savings plans have become popular among grandparents who want to help their grandchildren graduate from college without student debt. However, when 529 funds are distributed to students, the next year those assets are reported as the student’s income — which, in turn, may decrease the amount of financial aid the child  may receive by 50 percent. In dollar terms, that means if a student received $10,000 from his grandmother’s 529 plan, his student aid for the next year could be reduced by $5,000.⁴

For all practical purposes, financial choices these days are boundless. There are approximately 2,400 stocks traded on the New York Stock Exchange alone.⁵ We suggest that the best way to manage your options is to seek quality advice from a licensed financial professional and appropriate financial products for your situation. As always, we’re here to help.

¹ Center for Retirement Research at Boston College. May 26, 2016. “Array of Financial Products is Dizzying.” http://squaredawayblog.bc.edu/squared-away/array-of-financial-products-is-dizzying/. Accessed May 27, 2016.

² Barry Paperno. CreditCards.com. Feb. 25, 2016. “Credit utilization rules for managing your credit score.” http://www.creditcards.com/credit-card-news/credit-utilization-rules-managing-credit-score-1586.php. Accessed May 27, 2016.

³ Derek Thompson. The Atlantic. May 27, 2016. “How America Lost Its Mojo.” http://www.theatlantic.com/business/archive/2016/05/how-america-lost-its-mojo/484655/. Accessed May 27, 2016.

⁴ John F. Wasik. The New York Times. May 27, 2016. “The Best Way to Help a Grandchild with College.” http://www.nytimes.com/2016/05/28/your-money/the-best-way-to-help-a-grandchild-with-college.html?smid=tw-your_money&smtyp=cur&_r=0. Accessed May 27, 2016.

⁵ Heather Long. CNN Money. May 13, 2016. “How much $$$ do you need to start investing?” http://money.cnn.com/2016/05/13/investing/how-to-start-investing/index.html?sr=twmoney052816how-to-start-investing0233AMStoryLink&linkId=24774777. Accessed May 27, 2016.

We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the complete loss of principal.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

Investment Advisory Services offered through Global Financial Private Capital, LLC, an SEC Registered Investment Advisor.

Content prepared by Kara Stefan Communications

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Stay Plugged in to New Tech Trends

Technology hasn’t just improved over time; it’s also matured its users. Today, the average child gets his or her first cellphone at age 10.¹ In past generations, 10 was about the age when parents finally let their kids use those creepy crawly bug makers that required a heating device.

These days, one of the biggest growth trends in IT is wearable technology, such as medical and fitness devices. As much of the nation continues on its prolonged health kick, companies have adapted to consumers’ needs by rolling out wearable technology. The U.S. has accounted for the largest share of these medical and fitness devices that encourage improved health and activity.²

New products are constantly rolled out with a variety of everyday applications, such as cloud delivery services, digital entertainment/gaming, location-based services, increased digital security and big data analytics.³

The bigger and better the breakthrough, the more expensive the product sells for in stores. Just as you would do your research and shop around before buying a fitness wristband or new TV, we believe it’s important to apply the same level of scrutiny to your financial strategy. If we can help you create a retirement income strategy utilizing both investment and insurance products, please give us a call.

Technology developed specifically for the financial industry has fostered a new generation of smaller, more nimble and virtual companies. For the first time in history, smaller banks now have the opportunity to compete with large ones. Taking out loans and withdrawing and depositing money has become a do-it-yourself industry thanks to online services.⁴

In terms of investments in the technology industry, there’s a growing trend for start-ups to remain private, and they are increasingly able to generate investor money in doing so. In 2015, 146 private tech companies achieved valuations upward of $1 billion in private markets -- which is twice as many as the year before. By contrast, some technology companies that underwent initial public offerings (IPOs) over the past four years have performed poorly; since 2011 over 40 percent are flat or below their final private-market valuations.⁵ Please remember that investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

Clearly, technology is an industry that will continue to grow and adapt. Not only is it innovating for businesses and consumers -- young and old -- but even in the way it funds and sustains business operations.

What’s interesting is that the creepy crawler machine of yesteryear is coming back on the market. Mattel is reintroducing a 3-D printer version this fall that will retail for $299.⁶ The high-tech twist on this classic toy is a prime example of how technology will affect younger generations moving forward, while the price tag puts the potential cost of a 10-year-old’s cellphone in perspective.

¹ Influence Central. May 20, 2016. “Kids & Tech: The Evolution of Today’s Digital Natives.” http://influence-central.com/kids-tech-the-evolution-of-todays-digital-natives. Accessed May 20, 2016.

² FOX8live. May 17, 2016. “Global Wearable Technology Industry 2016 Market Analysis, Size, Share, Growth, Research, Forecast, Trends, Opportunities and Challenges: QyResearchReports.” http://www.fox8live.com/story/31994070/global-wearable-technology-industry-2016-market-analysis-size-share-growth-research-forecast-trends-opportunities-and-challenges-qyresearchreports#.VzwC_w5_Hkc.twitters. Accessed May 20, 2016.

³ Steve Andriole. Forbes. Dec. 15, 2015. “Technology M&A in 2016: Macro and Enabling Trends Predictors.” http://www.forbes.com/sites/steveandriole/2015/12/21/technology-ma-in-2016-macro-and-enabling-trends-predictors/#7def80b95e11. Accessed May 20, 2016.

⁴ Business Insider. April 14, 2016. “The fintech industry explained: The trends disrupting the world of financial technology.” http://www.businessinsider.com/fintech-ecosystem-financial-technology-report-and-data-2016-2. Accessed May 31. 2016.

⁵ Begum Erdogan, Rishi Kant, Allen Miller and Kara Sprague. McKinsey&Company. May 2016. “Grow fast or die slow: Why unicorns are staying private.” http://www.mckinsey.com/industries/high-tech/our-insights/grow-fast-or-die-slow-why-unicorns-are-staying-private. Accessed May 20, 2016.

⁶ Edward C. Baig. USA Today. Feb. 13, 2016. “Mattel resurrects ThingMaker as a 3D printer.” http://www.usatoday.com/story/tech/columnist/baig/2016/02/12/mattel-resurrects-thingmaker-3d-printer/80236104/. Accessed May 20, 2016.

We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the complete loss of principal.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

Investment Advisory Services offered through Global Financial Private Capital, LLC, an SEC Registered Investment Advisor.

Content prepared by Kara Stefan Communications

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You Can Bank on Financial Apps – to a Degree

Financial technology, also known as fintech, is a growing business model among companies looking to use software to provide financial services.

The ability to make transactions from any location, and at any hour, makes online banking and bill paying increasingly appealing. For this reason, fintech is being embraced by startups and large banks as an offshoot idea for proprietary technology.¹

However, while it’s convenient to withdraw or deposit money on a smartphone or tablet, we believe it’s still best to consult a financial professional when dealing with more complex financial decisions. As a financial professional, we’re a call away when you need a detailed assessment of your retirement assets or personalized advice that an app can’t provide.

In the meantime, banks are making strides in simplifying the basic transactions that you can complete from home. We’ve entered an era in which institutions collect “big data” to serve customers the way they prefer. Beyond “multichannel” (delivery on multiple platforms) or “omnichannel” (delivery through all channels similarly), the new “optichannel” approach will analyze a customer’s bank experiences to tailor and deliver services via his or her preferred channel.²

One of the latest fintech innovations attempts to cross the barrier between banking and investment products. Launched in January of this year, an app named Clink is designed to help investors conduct small, low-risk investments. The app links bank and investment accounts to create an automated investing plan -- either on a regular basis or every time you make a credit card purchase.

Similar to how some checking accounts allocate money to a separate savings account, a portion of your charge is routed to your Clink account and then invested in a portfolio of exchange-traded funds.³ Please remember that investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

We believe there are benefits to the simplicity of this technology, but again, you also don’t want to invest your retirement savings on a whim. Before tinkering too much with apps like Clink, it’s best to talk it over with someone who will help you create a retirement strategy that you can feel confident about.

¹Paul Schaus. Bank Innovation. Jan. 5, 2016. “4 Fintech Predictions for 2016.” http://bankinnovation.net/2016/01/4-fintech-predictions-for-2016/. Accessed May 31, 2016.

² Jim Marous. BAI. Jan. 15, 2016. “Top 10 Banking Trends for 2016.” https://www.bai.org/banking-strategies/article-detail/top-10-banking-trends-for-2016. Accessed May 31, 2016.]

³Bill Peters. Investor’s Business Daily. April 29, 2016. “How Your Apple iPhone Could Become Your New Bank.” http://www.investors.com/news/why-your-local-bank-is-moving-into-your-iphone/?_cldee=a2FyYWNvbUBlYXJ0aGxpbmsubmV0&urlid=14. Accessed May 31, 2016.

We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the complete loss of principal.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

Investment Advisory Services offered through Global Financial Private Capital, LLC, an SEC Registered Investment Advisor.

Content prepared by Kara Stefan Communications

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