Talkin’ ’Bout My Generation

A generation gap exists whenever different age groups interact, but never are the differences more evident than when parents are in the process of raising teenagers.

There are a plethora of factors that differentiate generations -- communication mediums, interests, values, work ethic -- and the list goes on and on. Psychologists say the divide between parent and teenager is a natural progression to help both prepare for their eventual separation: Teenagers rebel toward their independence; parents start looking forward to an empty nest.

[CLICK HERE to read the article, “When Parents Get Angry at Their Adolescent,” from Psychology Today, June 15, 2015.]

Marketers have conducted exhaustive research differentiating and defining the generations that co-exist today, from the greatest generation all the way down to Generations Y and Z. Despite all our differences, one common thread is that every era has some kind of financial dilemma, such as the 2008 recession’s effects on adults and the student debt millennials now face.

Whatever your current financial concerns are, our team of professionals is here to answer any questions you might have.

[CLICK HERE to read the article, “Market crash of 2008 still affects Gen Xers, boomers,” from BenefitsPro, Sept. 22, 2015.]

[CLICK HERE to read the article, “Student Debt Squeezing Parents and Children Simultaneously,” from ABCnews.com, Oct. 5, 2015.]

One positive of having distinct generations is that everyone brings something unique to the table. For example, baby boomers have had a clear influence on both the economy and culture over the last 40+ years and continue to drive new innovations and industries with vivacity and longevity.

[CLICK HERE to read the report, “Generational Identity: The Power of ‘Boomer,’” from Pew Research Center, Sept. 2, 2015.]

The post-baby boomers who make up Generation X tend to get lost amid the headlines that surround the more populous boomer and millennial demographics, but the fact is, many Gen Xers have had their own unique financial experiences as a result of the recession and real estate decline that hit just as they were nearing their mid-career earning potential.

[CLICK HERE to read the article, “Most Americans have less than $1,000 in savings,” from Marketwatch.com, Oct. 8, 2015.]

[CLICK HERE to read the article, “When It’s Time to Cut Financial Support to Your Parents or Adult Kids,” from Time.com, Aug. 10 2015.]

The millennials, now just as populous as boomers, are now a coveted market in the consumer world, and the teens of Generation Z are nipping at their heels.

[CLICK HERE to read the article, “Millennials Outnumber Baby Boomers and Are Far More Diverse, Census Bureau Reports,” from the U.S. Census Bureau, June 25, 2015.]

[CLICK HERE to read the article, “Millennials on Steroids,” from Knowledge@Wharton, Sept. 28, 2015.]

We make generalizations when it comes to generations, and each does have its own set of circumstances, but sooner or later, everyone can use the advice of an objective professional to help create a financial strategy and stay on track to meeting their goals. We’re fortunate that you chose us to provide you this guidance, and we’re available to discuss your future whenever you feel the need.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives.
The information contained in this material is provided by third parties and has been obtained from sources 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.

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You Might Be Overdue for a Leadership Shakeup

In September, a celebrated visit from Pope Francis made quite an impression on Americans. During a political era when discussions of both church and state are increasingly divisive, somehow the Argentinian leader of the Catholic Church grabbed attention from every end of the spectrum for his message of unity and cooperation.  

 

In many ways, Pope Francis has transformed papal leadership with his willingness to depart from traditional norms or expectations. From his access to the public -- even mastering social media -- to his outward demonstration of the value he places on all people, which includes inviting the homeless to eat with him and empowering his subordinates with decision-making authority, his leadership style alone has impressed believers and nonbelievers alike.

An effective leadership style can make all the difference, and when it comes to your personal finances, we hope you’ll find that we lead by giving you the information you need to take charge of your financial future.

[CLICK HERE to read the article, “Pope Francis, in Congress, Pleads for Unity on World’s Woes,” from The New York Times, Sept. 24, 2015.]

Even the United States is grappling with the issue of leadership as the two biggest parties gear up for the 2016 presidential race. Certainly, there are various types of leadership styles, with varying levels of success. As American voters consider who will sit in the White House next, it’s important to recognize, too, that a style of leadership that may have been very effective in one circumstance may not resonate with all constituents; some may respond well while others do not.

We see this again and again with different critiques of leaders, such as Carly Fiorina’s role as chief executive officer of Hewlett Packard, and the soon-to-be-former Speaker of the House, John Boehner.

Whether these critiques are fair or not, it is undeniable that, at least for the Republican voter base, a leadership shakeup, or a departure from “business as usual,” is attractive. The top polling candidates for the GOP -- Donald Trump, Carly Fiorina and Ben Carson -- are newcomers to politics. None have held public office, which is traditionally a “must” on the resume of the top elected public official in the country. Whether their current traction in the race is sustainable or not, their lack of experience in the public sector has helped rather than harmed the three candidates in the polls, reflecting a growing reconsideration of what “leadership” means.

[CLICK HERE to read the article, “Carly Fiorina’s Legacy as CEO of Hewlett Packard,” from Harvard Business Review, Sept. 25, 2015.]

[CLICK HERE to read the article, “Boehner departs as least-popular speaker in three decades,” from The Washington Post, Sept. 25, 2015.]

[CLICK HERE to read the article, “Poll: Fiorina rockets to No. 2 behind Trump in GOP field,” from CNN Politics, Sept. 21, 2015.]

You can also work on a personal leadership shakeup, regardless of whether you are responsible for several people, a business, a family or just yourself and Bubbles the goldfish. The qualities being repeated in headlines and talking head soundbites can be equally effective within your own life, helping you accomplish your own goals. For example, take some of the leadership qualities of Pope Francis:

·       Accessibility -- Be available to loved ones, family, friends and colleagues.

·       Compassion -- Show others respect, no matter their circumstances.

·       Empowerment -- Vet well and trust others to make decisions on your behalf.

·       Courage -- Sometimes the greatest risk is to speak up or act on your convictions, even when you know you’ll go against the grain, but it is better to be authentic.

[CLICK HERE to read the article, “5 Leadership Lessons from Pope Francis,” from Fast Company, Sept. 25, 2015.]

Applying these qualities in your own life might help you to feel more involved or more empowered to act. Remember, your actions today are the beginning of your legacy and your future. And as always, if you are ready to act in the area of finances, we are here to help.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives.

The information contained in this material is provided by third parties and has been obtained from sources 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.

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Young Adults Left Waiting on Post-Recession Employment

Underemployment is a problem that has been particularly difficult on recent college graduates, but its effects are felt by all demographics.

Although the unemployment rate is down, you could say we have the most well-educated bartenders and busboys in history. The World Economic Forum found that most college-educated workers took jobs in low-earning industries between 2000 and 2014, and wages of young college graduates are 2.5 percent lower than they were in 2000.

This has an impact on more than just graduates and the parents they may be moving back in with. Unemployed and underemployed people spend less on consumables. In turn, low demand for goods and services leads to lower growth, and companies that aren’t growing don’t create more jobs.

As a whole, the nation’s unemployment rate dropped to 5.1 percent in August, but it was at 7.2 percent for recent college graduates and 19.5 percent for those fresh out of high school. This means that more than a quarter of this teenage generation is unable to buy a new car, house or other perks that come with being in the job market.

[CLICK HERE to read the article, “Why college-educated workers are taking low-paid jobs,” from World Economic Forum, Sept. 4, 2015.]

[CLICK HERE to read the report, “The Class of 2015: Despite an Improving Economy, Young Grads Still Face an Uphill Climb,” from Economic Policy Institute; May 27, 2015.]

All of this is just part of the reason the Federal Reserve’s Open Market Committee decided against raising interest rates in September -- also citing global issues and their impact on the U.S. stock market.

Please contact us if you wish to discuss how this may impact your current financial strategy.

[CLICK HERE to read the media release, “Regional and State Employment and Unemployment Summary,” from Bureau of Labor Statistics, Sept. 18, 2015.]

The lack of jobs and a stalemate in the real estate market have contributed to slow recovery in many areas of the country. Six years after the recession ended, many cities in the Southwest have the lowest recovery rates based on 17 economic indicators, such as home-price appreciation and wage growth. Nine of the 15 cities in the worst shape are located in Arizona and Nevada.

[CLICK HERE to read the article, “Cities in the Southwest Are Still Waiting for a Recovery,” from The Wall Street Journal, Sept. 18, 2015.]

[CLICK HERE to read the article, “2015’s Most & Least Recession-Recovered Cities,” from WalletHub, Sept. 14, 2015.]

As you might have guessed, those faring best in the post-recovery stage are people who already possessed a substantial amount of wealth. Earnings have increased among households ranked in the 90^th and 95^th percentiles of wealth in the U.S. since the recession, but on average, income levels for all other groups are still below 2006 levels. Today, the median household income is 6.5 percent lower than it was in 2007, the year the recession started.

[CLICK HERE to read the article, “The Richest Americans Are Winning the Economic Recovery,” from Bloomberg, Sept. 16, 2015.]

One of the best lessons we can extract from the recession is that we can’t control what will happen with the economy, but we can be proactive about what we do with our assets. Regardless of where you stand in the recovery spectrum, please give us a call to discuss potential strategies for positioning your assets that can help ensure your family’s financial future.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives.

The information contained in this material is provided by third parties and has been obtained from sources 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.

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What Role Can you Play in the National Economy?

Thanks to our nation’s growth in employment levels, low gas prices and stability in the real estate market, it was expected that consumer confidence would remain steady.

Instead, the index measuring consumer confidence dropped to its lowest mark of the year, from 91.1 in August to 85.7 in mid-September.

So, what gives? Some experts believe this lackluster attitude is in response to the volatility the stock market experienced in August, when the S&P 500 dropped by about 6 percent.

Still, this disappointment on the part of consumers has one upside: They are off the sidelines and keeping a close eye on what happens with their assets.

This is a good reminder that no matter how well off you are, you should never be complacent about your finances. As your financial professional, we consider it part of our role to help clients feel confident about their future.

[CLICK HERE to read the article, “August’s stock market mayhem has Americans feeling worse about everything,” from Business Insider, Sept. 11, 2015.]

In a recent Wall Street Journal survey of private economists, more than half believed that an increase in consumer spending could have a significant impact on economic expansion, particularly moving into the fourth-quarter holiday season.

The lesson here? Don’t be a cheapskate … although you may get a kick out of reading about some of the wealthiest cheapskates of all time in the article below.

[CLICK HERE to read the article, “What’s Most Likely to Shift Economy Toward Faster Growth? Consumers,” from The Wall Street Journal, Sept. 11, 2015.]

[CLICK HERE to read the article, “10 of the Richest Cheapskates of All Time,” from Time.com, 2015.]

Researchers at the St. Louis Federal Reserve Bank recently compiled data on how people of all ages manage their money. While the results are mixed across all demographics, there was a meaningful tip that applies to all ages: Don’t judge yourself based on point-in-time circumstances, because life accomplishments and income accumulation is a process. Wealth typically doesn’t happen overnight.

[CLICK HERE to view the video, “What Roles Do Age and Birth Year Play in Income and Wealth?” from St. Louis Federal Reserve Bank, July 15, 2015.]

Here’s another idea to play a role in our nation’s health: Engage in political oversight. We’re embarking on an election year, and the media is already running rampant with stories. Make sure you get the facts -- the real facts, not some pundit’s interpretation of them.

Although we are continually inundated with campaign rhetoric and a muckraking frenzy, don’t forget that Congress has some pretty big issues to resolve before the end of the year. If you’ve never written your congressional representatives in the past, you may want to take advantage of easy online communication forms to let them know what issues are most important to you as a constituent.

[CLICK HERE to read the article, “Five Fiscal Deadlines to Watch This Fall,” from The Wall Street Journal, Sept. 11, 2015.]

[CLICK HERE to read the article, “Find Your Representative,” from House.gov, 2015.]

[CLICK HERE to read the article, “How to contact U.S. Senators,” from Senate.gov, 2015.]

As always, we stay on top of today’s issues, headlines and economic news and understand how various factors can impact your financial future. If you’d like to get together to discuss your personal situation, please give us a call.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives.

The information contained in this material is provided by third parties and has been obtained from sources 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.

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Women and the Process of Retirement Planning

Planning for retirement income shouldn’t stop just because you retire. It’s a process, much like raising children and pursuing a career.

You learn, you implement, you make mistakes, you seek advice. So whether you are already retired, nearing retiring or thinking about it as an abstract concept many years away, we can help you engage in this ongoing process.

 

In addition to general retirement income planning for a couple, it's a good idea for married couples to also engage in individual retirement income planning. Odds are, one spouse will live longer than the other, so it's important to plan for financial security once one spouse has passed away. Given that women generally live longer than men, this can be especially important for them.

[CLICK HERE to read the report, “Impact of Retirement Risk on Women,” from Women’s Institute for a Secure Retirement, 2013.]

[CLICK HERE to read the article, “10 Money Tips for Retired Women on Fixed Incomes,” from NextAvenue.org, Aug. 28, 2015.]

Needs change throughout life, whether you’re a man or a woman. But a change in marital status can have a more detrimental impact on financial security in retirement for women.

When a woman gets divorced, she is likely to lose her survivor’s benefits from her ex-husband’s pension plan. That’s why it’s important as part of the divorce settlement to draw up a special court order, called a Qualified Domestic Relations Order, that can specifically provide for a survivor’s pension in the event of divorce.

Widows now have protection for survivor’s benefits, thanks to a 1984 law that requires private pension plans to provide a pension to a worker’s surviving wife (or husband) if the employee earned a benefit.

In fact, the employee’s spouse has to provide written permission in order to waive this right. Note, however, that this legislation only applies to private pension plans. If the spouse worked at a state, local or federal government job, then the widow should find out what rules apply to that pension.

Now, some people suffer through one or more divorces and decide, “That’s it. I’m not ever getting married again.” They may engage in a long-term relationship and even share a home with a partner, but simply not marry. This arrangement should be considered in the process of retirement income planning, because common law and non-married partners may not have a legal right to survivor benefits from Social Security or pension plans. Despite its troubles, marriage may still have financial benefits, depending on the situation.

[CLICK HERE to read the article, “Rights of Surviving Spouses,” from Women’s Institute for a Secure Retirement, 2015.]

[CLICK HERE to read the article, “Widows and Widowhood,” from Women’s Institute for a Secure Retirement, 2015.]

If you’re a working woman, you have plenty of good income planning options. Especially when you consider that within the next 15 years, it’s estimated that women will control two-thirds of the wealth in the U.S.

That is particularly remarkable when you consider that, on average, women still earn about 22 cents less per dollar than men. But women will need the extra funds, because right now experts project that 70 percent of baby boomer wives will outlive their husbands by 15 to 20 years.

[CLICK HERE to view the video, “The Financial Divide: Women and Wealth,” from Regions Bank, 2015.]

[CLICK HERE to read the article, “Women and Retirement Savings,” from U.S. Department of Labor, August 2013.]

Regardless of where you are in the lifelong process of retirement income planning, it’s certainly never too late to get started. Even if you have a plan for retirement income as a couple, it’s a good idea to ensure it would cover a surviving spouse.

As always, we’re here to help you with just that type of retirement income planning -- now, and as you need it throughout your lifetime.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives.

The information contained in this material is provided by third parties and has been obtained from sources 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.

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