FDR’s Influence in Challenging Times Still Resonates

When President Franklin D. Roosevelt was sworn into office in 1933, the United States was mired in the worst financial period of its history.

FDR’s election came in the middle of The Great Depression, when unemployment reached 25 percent overall, and as high as 50 percent in some cities and industries. More than 9,000 banks closed in a four-year period, representing $2.5 billion in lost deposits.¹

Yet, in his first presidential inaugural address, Roosevelt counseled Americans with his now-iconic statement that “the only thing we have to fear is fear itself -- nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance.”

The newly elected president’s words inspired confidence, but some of his first actions as president were just as impactful. FDR deployed two quick, decisive measures within his first week as president: (1) He declared an immediate weeklong bank holiday, and (2) he addressed the nation with a “fireside chat” radio speech to explain the banking problem.

In doing so, he calmed the populace’s fears, restored rational thought and demonstrated his ability to lead with courage and confidence. When the banks reopened, lines formed once again -- this time for citizens to deposit the money they had withdrawn.

We believe how we cope with financial concerns can help determine our long-term success, both as a nation and in our own personal lives. Despite an economy that is significantly better than it was in the 1930s, having enough money in retirement is still a common concern.

According to government research, the two primary expenses in the average 75+ retiree’s household budget are housing (36.5 percent) and health care (15.6 percent), despite the fact that this demographic frequently has Medicare and a paid-off mortgage.²

It’s interesting to look back and analyze how FDR helped mitigate our nation’s greatest financial crisis, using decisive action, transparency and communication. His wife, Eleanor Roosevelt, once said of him, “I have never known a man who gave one a greater sense of security.”

Perhaps by considering the challenges President Roosevelt faced when he first took office, each of us can gain the courage to help face our retirement income concerns with confidence. Few people in U.S. history have had the calming effects FDR displayed in his nationally broadcasted speeches, but if there’s anything we can do to address your long-term financial goals, please give us a call.

Want to read more? Here are some articles that may be of interest to you:

 [CLICK HERE to read the transcript, “Franklin D. Roosevelt: First Inaugural Address,” from Bartleby.com.]

 [CLICK HERE to read the article, “Don’t Let Your Emotions and Fear Influence Your Investments” from Philadelphia Magazine, March 9, 2016.]

 [CLICK HERE to read the article, “The Secret Shame of Middle-Class Americans” from The Atlantic, May 2016.]

 [CLICK HERE to read the article, “What FDR Knew about Managing Fear in Times of Change” at Harvard Business Review; May 4, 2016.]

¹HistoryMatters.com. “‘More Important Than Gold’: FDR’s First Fireside Chat.” http://historymatters.gmu.edu/d/5199/. Accessed May 25, 2016.

²Center for Retirement Research at Boston College. May 3, 2016. “Housing, Health Are ½ of Elderly’s Costs.” http://squaredawayblog.bc.edu/squared-away/housing-health-are-12-of-elderlys-costs/. Accessed May 25, 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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Home Sweet Home

Like other aspects of the economy, the real estate market has been slow to recover to “normal” levels. But we believe there are some positives that come with the lull in housing sales. In some pockets of the country, prices have escalated substantially due to low inventory, high demand and relatively low interest rates.

According to the National Association of Realtors, existing home sales in the Midwest and Northeast bolstered the market in March. Buyers are also expected to be out in force in most regions of the country during this spring sales season.

The mid-priced market is much stronger than properties that are very low or very high priced. This is because fewer mid-level homes are on the market, and lenders have stringent qualifications, leaving many low-end potential homeowners on the sidelines.

[CLICK HERE to read the article, “Existing-Home Sales Spring Ahead in March” from National Association of Realtors, April 20, 2016.]

[CLICK HERE to read the article, “Home sellers see strongest appreciation since the recession” from MarketWatch, April 21, 2016.]

If you’re in the market for buying or selling, consider talking with a qualified professional about how these changes may impact your financial strategy. Remember that profits may be able to be repositioned to strengthen your retirement savings, and that overextending for a real estate purchase could potentially impact your financial plans for the future.

It’s always good to review your retirement strategy within the context of your complete financial picture — particularly before you make any big decisions. Let us know if we can help you with your long-term financial goals.

[CLICK HERE to read the article, “Use the 20% Rule to Guide Real Estate Decisions” from NerdWallet.com, April 21, 2016.]

[CLICK HERE to read the article, “7 Home Buying and Selling Tips from the Property Brothers” from HGTV, 2016.]

It’s interesting that, despite the drop in home prices over the last decade, Americans still like their real estate. In a recent poll, 35 percent named real estate the “best long-term investment,” over stocks (22 percent) and gold (17 percent). Remember, investing involves risk, including the potential loss of principal, and no investment strategy can guarantee a profit or protect against loss in periods of declining values.

Millennials, on the other hand, favored savings accounts over real estate as their top choice. It just goes to show you that young adults have taken their first life lessons to heart, and that long-term experience can provide a wider perspective.

[CLICK HERE to read the article, “Gallup: 35 Percent of Americans Pick Real Estate as ‘Best Long-Term Investment’” from NewsMax.com, April 20, 2016.]

[CLICK HERE to read the article, “Investors should look beyond REITs to gain real estate exposure: Jeffrey Kolitch” from Investment News, April 19, 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 has been prepared for our firm and contains general information to help you understand basic financial planning strategies that may help you work towards your financial goals. Please understand that I cannot make any promises or guarantees that you will accomplish such goals.  All investments are subject to risk including the complete loss of principal.

Throughout, we may generally discuss different financial vehicles; however, nothing contained herein should be construed as a recommendation to buy or sell any financial vehicle, nor should it be used to make decisions about your investments.

The information contained in this material has been obtained from third party 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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More Retirees Heading for Hubs

When retirement is on the horizon, many people put their current hometown in the rearview mirror. As the retiree population continues its upward trajectory, we expect popular retirement destinations to grow right along with it.

A recent study by McKinsey & Company identified 13 U.S. “retirement hubs” — cities that are most likely to experience rapid growth by retirees. In the next 14 years, the number of retirees is expected to grow by more than a third, from 164 million to 222 million.

Although modest Midwest towns are drawing more interest, the biggest draw for retirees is still the warm weather and sandy beaches of Florida.

[CLICK HERE to read the article, “Urban World: The Global Consumers to Watch” from McKinsey & Company, April 2016.]

[Copy and paste this link into your browser http://www.forbes.com/best-places-to-retire/list/

 to read the article, “Best Places to Retire” from Forbes, 2016.]

[CLICK HERE to read the article, “The World’s Best Places to Retire In 2016” from International Living, Jan. 1, 2016.]

When you need guidance to reach your desired destination, both location-wise and financially, we’re here to help. There are a variety of ways to manage retirement assets, from annuities and 401(k) plans to IRAs, pensions and investments. 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. If you’re looking to relocate in retirement, we can help evaluate what your expenses will look like and help create a personalized retirement income plan using a variety of insurance and investment products.

[CLICK HERE to read the article, “Should Annuities Be Part Of Your Retirement Portfolio?” from Fortune, Feb. 3, 2016.]

[CLICK HERE to read the article, “High-Yield Corporate Bonds: Compelling Relative Value Despite Volatility” from Guggenheim Partners, March 17, 2016.

[CLICK HERE to read the article, “How to get guaranteed retirement income for life” from CNN Money, Jan. 20, 2016.]

On the flip side, staying put is another popular option for retirees, especially if all their friends and family still live nearby. Much like the relaxing “staycations” that became commonplace during the recession, there’s no reason why you can’t make a retirement hub in your own hometown.

While your place of retirement may not be a college town, there’s likely one nearby. Check out what opportunities are available for local residents, such as auditing classes, use of athletic facilities and traveling performances by theatre groups, authors or artists.

Also, see what your library has going on. Many offer a range of classes taught by locals who specialize in a specific topic, whether it’s religion, technology or archeology.

By making the most of your surroundings, the town you’ve been living in all along can become a desirable retirement locale in its own right. Retirement hubs aren’t just about warm weather and sandy beaches, but also staying busy and experiencing new things. Consider both options, and when you decide whether you’d rather stay nearby or set out for a new destination, visit us and we will help you create a financial strategy that you can feel confident about.

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 has been prepared for our firm and contains general information to help you understand basic financial planning strategies that may help you work towards your financial goals. Please understand that I cannot make any promises or guarantees that you will accomplish such goals.  All investments are subject to risk including the complete loss of principal.

Throughout, we may generally discuss different financial vehicles; however, nothing contained herein should be construed as a recommendation to buy or sell any financial vehicle, nor should it be used to make decisions about your investments.

The information contained in this material has been obtained from third party 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.

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

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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The Media that Cried “Crisis”

The word “crisis” has become quite popular in our 24-hour news cycle. It’s a word media outlets have attached to everything from student loans to weight gain to a national shortage of biscuits in an attempt to maximize the eyeballs on their content.

[CLICK HERE to read the article, “The Great British Biscuit Crisis is finally over,” from The Independent, April 7, 2016.]

[CLICK HERE to read the article, “The Strange Case of the Missing Crisis,” from The Wall Street Journal, April 8, 2016.]

However we believe most, if not all, of the issues labeled as “crises” can be solved over time, whether it’s with a long-term plan, a change in legislation or perhaps new personnel brought in at the next election.

Take, for example, the “retirement savings crisis.” It’s a term we may have heard used to describe the national financial situation, but at the individual level, it doesn’t really become an issue unless you were to run out of money. Nobody wants to leave the workforce only to realize they didn’t have enough money saved up, but we believe this is one potential challenge that can be resolved before it happens, even before you retire.

For example, you may be able to reposition income-producing assets now to become guaranteed fixed income-producing assets later.* We’re happy to consult with you about how this can be accomplished, and help determine whether it’s a viable option for your individual financial situation.

[CLICK HERE to read the article, “How to Solve America’s Retirement Crisis,” from Time, 2016.]

When it comes to finances, the challenges you may encounter differ from anybody else’s. During the last recession, generally middle- and lower-class workers got hit the hardest. Many homeowners became renters, and some renters became homeless. Meanwhile, some higher net worth folks reined in spending, so second homes and other luxuries got put on hold.

[CLICK HERE to read the article, “American Dream Lost: Financial Crisis Created Massive Shift of Homeowners to Renters,” from News One, April 8, 2016.]

[CLICK HERE to read the article, “How to Solve the Housing Crisis: More Lawyers,” from Bloomberg, April 8, 2016.]

[CLICK HERE to read the article, “Election, economy hit vacation homebuyers where they live,” from CNBC, April 6, 2016.]

A financial professional may be able to help you create retirement strategies using a variety of insurance and investment products to help you meet your retirement income goals. If you have questions or need assistance, please keep us in mind.

*Any guarantees and protections are provided by insurance products including annuities that are backed by the financial strength and claims-paying ability of the issuing insurer.

This material has been prepared for our firm and contains general information to help you understand basic financial planning strategies that may help you work toward your financial goals. Please understand that we cannot make any promises or guarantees that you will accomplish such goals.  All investments are subject to risk including the complete loss of principal.

Throughout, we may generally discuss different financial vehicles; however, nothing contained herein should be construed as a recommendation to buy or sell any financial vehicle, nor should it be used to make decisions about your investments.

The information contained in this material has been obtained from third-party 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.

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

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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Financial Markets and Presidential Elections

There’s a saying that with enough prodding, you can make statistics say whatever you want.

We believe this is especially true for the loads of data surrounding presidential elections. It’s possible to use the data to say two different things about the economy, depending on the point you’re trying to make.

For example, one analyst reported that since 1929, the S&P 500 gained an average of 1.58 percent in a president’s first year in office. Another claimed that since 1928, the first year of a new presidential term sees “the markets” rise by an average of 6 percent. Citing different indexes and years can change the story.

[CLICK HERE to read the article, “Why markets tend to fall during a presidential election year,” from CNBC, Jan. 13, 2016.]

In our opinion, the important thing to remember is that investing is personal. Trying to predict market performance based on the direction of prices, interest rates or presidential elections is not a sound long-term strategy. If it was, more people would be successful at doing it. 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.

This election year promises to have even more fireworks than usual, but don’t let national matters distract from your personal long-term financial goals. We’re help to help you stay on track. With that being said, take a look at what different analysts say about the financial markets and presidential elections.

[CLICK HERE to read the article, “What Investors Need to Know About the 2016 Election,” from Oppenheimer Funds, Jan. 8, 2016.]

[CLICK HERE to read the article, “How Do Stock Markets Perform during a Presidential Election Year?” from Yahoo Finance, April 1, 2016.]

If there’s one thing that is for sure, it’s that a presidential election year creates more market uncertainly than non-election years. Most analysts agree that markets tend to be calmer when an incumbent president is running for re-election, because one known entity is more reassuring than two unknowns. The same seems to hold true if the incumbent wins re-election. However, the stock market may trend downward in the first year of a new party taking over the White House.

It’s also probably true that, depending on which party is in control, certain industries may be positively or negatively affected. For example, if the next president successfully repeals the Affordable Care Act, the health care industry would be poised for changes.

[CLICK HERE to read the article, “How the Presidential Election Will Affect the Stock Market,” from Kiplinger, February 2016.]

At least one analyst has considered how a Donald Trump administration would impact the markets, ranging from higher import tariffs, which would make some products more expensive, to lower income taxes, which could prompt higher household spending in the consumer discretionary sector.

At the end of the day, it’s important to remember that dozens of factors impact the performance of the markets -- and most investors have absolutely no control over any of them. What’s important is that you stay focused on your long-term  financial strategy with regard to whether it’s on track to meet your retirement goals.

[CLICK HERE to read the article, “How would a Donald Trump presidency affect the stock market?” from Los Angeles Times, March 7, 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 has been prepared for our firm and contains general information to help you understand basic financial planning strategies that may help you work toward your financial goals. Please understand that we cannot make any promises or guarantees that you will accomplish such goals.  All investments are subject to risk including the complete loss of principal.

Throughout, we may generally discuss different financial vehicles; however, nothing contained herein should be construed as a recommendation to buy or sell any financial vehicle, nor should it be used to make decisions about your investments.

The information contained in this material has been obtained from third-party 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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The Art of Intelligence Open to Interpretation

Albert Einstein once said, “The true sign of intelligence is not knowledge, but imagination.” People may have different views on that point. Would someone with an MBA from Harvard be considered more intelligent than a painter with an art degree?

Certainly, it’s an open discussion. Regardless of who attends college or what profession they pursue, intelligence is not relegated to the well-off. Doctors and lawyers have earned the right to be highly respected and paid, but they may not necessarily be more intelligent than someone who couldn’t afford that caliber of education.

We believe that keeping their children on track for a dream profession or education is a top priority for parents, but perhaps enrolling in full-day kindergarten or an overly structured preschool may be a step too far. Lego recently conducted a study placing more importance on creative play than receiving formal education at a young age. It’s an interesting concept, as it weighs more toward Einstein’s theory of intelligence than we generally associate with our common core standards and higher-learning institutions.

One of the biggest concerns for many who do attend the finest educational institutions is often affordability, but the challenges don’t stop there. Some may hesitate to venture out of their comfort zones, asking what they may consider “stupid” questions in front of their peers. However, the main purpose in the classroom is to learn. We believe learning doesn’t stop in the classroom; some experts believe that a willingness to admit what you don’t know is the mark of a good manager.

[CLICK HERE to read the article, “Children Should Learn Mainly Through Play Until the Age of Eight, Says Lego,” from The Guardian, March 15, 2016.]

[CLICK HERE to view the video, “Are Good Managers Born or Made?” from Knowledge@Wharton, March 15, 2016.]

Without proper guidance, the financial industry can be one of those areas that make people feel like they’re not that smart. The truth is, you can spend a lifetime in this field and still not know everything. It evolves, and there’s always some new trend, product or phenomenon that we must analyze and figure out how it may impact our clients’ financial goals.

We want you to know that we’re here to help do that. You can come to us, regardless of your education on the matter, and we will help find answers to your questions based on your individual needs and objectives.

[CLICK HERE to read the article, “5 Reasons You Need a Financial Advisor in 2016,” from Guide Vine, Jan. 6, 2016.]

Not all of us are academics. With the Internet at our fingertips, there are more methods than ever to gain knowledge without entering a classroom. For some, it’s just a matter of priority and focus. Studies have found that focus is less about zoning in and more about ignoring extraneous distractions. If you can master the art of “blocking out,” your ability to learn gets much easier. 

[CLICK HERE to read the article, “Learning what to ignore is a powerful tool for improving your focus,” from World Economic Forum, March 9, 2016.]

Certainly Thomas Jefferson was not fully on board with the idea of formal classroom learning. He advocated education through exploration not confined to a specific major or course of study. After all, students used to go to college to figure out what they wanted to be when they grew up. These days, students are encouraged to declare their major within their first year or two and spend their learning time preparing for a specific occupation.

There’s learning for the sake of information, and then there’s learning for the sake of accomplishing a specific goal. Perhaps Einstein fully explains this best. In his own words: “Imagination is more important than knowledge. For knowledge is limited to all we now know and understand, while imagination embraces the entire world, and all there ever will be to know and understand.”

[CLICK HERE to read the article, “Thomas Jefferson would not have liked this college trend,” from The Washington Post, March 18, 2016.]

[CLICK HERE to read the article, “Creativity and learning for the Conceptual Age,” from The Brookings Institution, March 14, 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 has been prepared for our firm and contains general information to help you understand basic financial planning strategies that may help you work toward your financial goals. Please understand that we cannot make any promises or guarantees that you will accomplish such goals. All investments are subject to risk including the complete loss of principal.

Throughout, we may generally discuss different financial vehicles; however, nothing contained herein should be construed as a recommendation to buy or sell any financial vehicle, nor should it be used to make decisions about your investments.

The information contained in this material has been obtained from third-party 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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The Value of Optimism

Anyone approaching the end of their working years can likely list more than a few occurrences in which they’ve experienced a stressful moment or handled a hectic ordeal.

Although retiring may end the need to put out fires in the workplace, stress built up over the years does take its toll and, for some, may contribute to a more negative outlook. 

One study of optimism claims that while everyone is born optimistic, 95 percent of adults tend to be pessimists. Perhaps part of the maturation process is to grow more cynical; we know things won’t always work out, so pessimism may seep into our psyche.

[CLICK HERE to read the article, “Are you born to be an Optimist?” from Think Positive! Mag, February 2016.]

We believe one area where it’s important to keep optimism and pessimism in check is in the financial industry. Working with a financial advisor, as opposed to simply following market forecasters, may help ensure your decisions are balanced and on track for your retirement income goals.

While our focus is on helping you create a retirement income strategy you can feel confident about, professionals in other areas are making strides in the research of stress management. One recent study looked into what’s known as the “placebo effect” -- when the pain is real, but the cure is fake. Research has shown that chronic stress and depression can contribute to physical ailments, but new theories are now exploring the flip side of that impact: the mind’s potential to heal.

Scientists recently discovered that when trial participants unknowingly respond to a placebo, their easement of pain is not imaginary. The effects are just as real as relief provided by a chemical drug.

Another example involves a study of over 1,000 patients with chronic back pain. One group was given acupuncture, the practice of alleviating pain by puncturing specific areas of the skin with needles. The second group was given “fake acupuncture,” in which the needles were placed in the wrong places and didn’t fully penetrate the skin. No significant difference was experienced between the two groups’ results.

However, a third group in the trial was given no acupuncture; instead they were prescribed conventional treatments of pain killers, physiotherapy and exercise. Interestingly, both acupuncture groups did twice as well as the group that took the drugs.

[CLICK HERE to read the article, “Chronic Stress: A Case of Mind Over Matter?” from Knowledge@Wharton, March 4, 2016.]

[CLICK HERE to read the article, “Positive thinking: Stop negative self-talk to reduce stress,” from Mayo Clinic, 2016.]

Cognitive-based approaches such as hypnosis, acupuncture and distraction have already been proven to reduce pain. Now, new research from a Carnegie Mellon University study shows that “mindfulness meditation” can alter brain connectivity patterns to generate improvements in inflammation.

Alas, everybody gets aches and pains in our bodies. Perhaps a little mindful optimism can help alleviate some of that discomfort.

[CLICK HERE to read the article, “Neurobiological Changes Explain How Mindfulness Meditation Improves Health,” from Carnegie Mellon University, Feb. 4, 2016.]

[CLICK HERE to read the article, “Mindfulness meditation provides opioid-free pain relief, study finds” from Science Daily, March 15, 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 has been prepared for our firm and contains general information to help you understand basic financial planning strategies that may help you work toward your financial goals. Please understand that we cannot make any promises or guarantees that you will accomplish such goals. All investments are subject to risk including the complete loss of principal.

Throughout, we may generally discuss different financial vehicles; however, nothing contained herein should be construed as a recommendation to buy or sell any financial vehicle, nor should it be used to make decisions about your investments.

The information contained in this material has been obtained from third-party 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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