Prospects for Growth in 2017

Some researchers believe the U.S. economy has a healthy outlook: The GDP growth rate is in the ideal 2 percent to 3 percent range, unemployment continues to abate and inflation remains in check.¹

The U.S. Bureau of Labor Statistics expects 88 percent of all occupations will experience growth by 2020, with the biggest increases coming in health care, personal care and construction. It also predicts that jobs requiring a master’s degree will grow the fastest.²

Aside from the potential of lower taxes, more jobs and infrastructure spending, the U.S. economy has another reason for optimism: American manufacturing, industrial production and trade sectors appear to be emerging from their recession. Economists anticipate that industrial sector growth will continue throughout 2017.³

Furthermore, consumer and chief executive officer confidence levels have improved considerably since the November U.S. election. The current expectation for more fiscal stimulus is expected to translate into greater spending and stronger economic growth.⁴

In periods of positive economic news such as this, people sometimes get caught up in “the good times” – planning vacations and finding other ways to spend newly acquired discretionary income. As financial professionals, we want to help you create a long-term financial strategy now, so that you feel confident in your financial future.

Clearly, no one knows where the market will go in 2017, but according to investment analysts at Charles Schwab, income growth may be poised to continue in the immediate future. Technology, health care and financial sectors are among those that could outperform in 2017.⁵ One reason is that the U.S. is entering an era of deregulation. President Trump has already started to roll back regulations put in place during the Obama administration, which issued more than 3,750 final rules and regulations during its eight-year tenure.⁶

If you find yourself with some extra funds you would like to put away for retirement, call us for assistance on allocating them to your financial plan.

Content prepared by Kara Stefan Communications

¹ Kimberly Amadeo. The Balance. March 15, 2017. “US Economic Outlook: For 2017 and Beyond.” https://www.thebalance.com/us-economic-outlook-3305669. Accessed March 21, 2017.

² Ibid.

³ Rick Rieder. BlackRock. Jan. 13, 2017. “2 Reasons the U.S. economy Should Fare Better in 2017.” https://www.blackrockblog.com/2017/01/13/us-economy-fare-better-2017/. Accessed March 21, 2017.

⁴ Ibid.

⁵ Brad Sorenson. Charles Schwab. March 16, 2017. “Schwab Sector Views: How Should Investors Look at Health Care Now?” http://www.schwab.com/public/schwab/nn/articles/Sector-Views. Accessed March 21, 2017.

⁶ Alejandro Chafuen. Forbes. Jan. 3, 2017. “The U.S. Economy In 2017: Welcome Higher Growth.” https://www.forbes.com/sites/alejandrochafuen/2017/01/03/the-u-s-economy-in-2017-welcome-higher-growth/#5ef2fcb938fb. Accessed March 22, 2017.

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 potential 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.

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Trends in the ETF Market

In recent months, there has been a recent movement out of actively managed investments into passively managed instruments such as exchange-traded funds. Globally, ETFs gained more than $270 billion in 2016.¹

An ETF is a single investment vehicle that tracks all of the securities within an index, a commodity, bonds or a group of assets like an index fund. It’s similar to a mutual fund, but an ETF’s price will fluctuate throughout the day as it trades like a common stock on a stock exchange. A basic ETF generally charges a lower fee than most mutual funds because it is not actively managed.²

With lower fees and expense ratios, plain index fund ETFs generally outperform mutual funds. However, there is a growing market of Smart Beta ETFs that charge relatively higher fees.³ Smart Beta ETFs also follow an index but may use a different weighting strategy to focus on specific technical and/or fundamental factors such as size, value, momentum, volatility and profitability.⁴ In 2016, Smart Beta ETFs gained more than $40 billion in new assets in the ETF market.⁵

One reason the ETF format has gained popularity is its ability to focus in certain sectors or investor objectives. For example:

• Fixed income ETFs are designed for investors who may seek a potentially greater yield in the wake of rising interest rates.⁶
• Volatility-managed ETFs expose investors to a specific asset class with risk-mitigation strategies.⁷
• New “theme”-based ETFs focus on small niches of the market, such as cloud computing or airlines.⁸

It’s important to consider any investment within the context of your own goals, risk tolerance, investment timeline and the composition of your overall portfolio. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

Content prepared by Kara Stefan Communications

¹ David Mann. Seeking Alpha. Jan. 18, 2017. “ETF Trends To Watch In 2017.” http://seekingalpha.com/article/4037644-etf-trends-watch-2017?page=1. Accessed Feb. 28, 2017.

² Investopedia. 2017. “Exchange-Traded Fund (ETF).” http://www.investopedia.com/terms/e/etf.asp. Accessed Feb. 28, 2017.

³ Leo Almazora. Wealth Professional. Jan. 10, 2017. “5 ETF Trends to Watch Out for in 2017.” http://www.wealthprofessional.ca/news/5-etf-trends-to-watch-out-for-in-2017-219323.aspx. Accessed Feb. 28, 2017.

⁴ Chris Dietrich. Barron’s. July 9, 2016. “Multifactor ETFs Are Gaining in Popularity.” http://www.barrons.com/articles/multi-factor-etfs-are-gaining-in-popularity-1468037320. Accessed April 10, 2017.

⁵ David Mann. Seeking Alpha. Jan. 18, 2017. “ETF Trends To Watch In 2017.” http://seekingalpha.com/article/4037644-etf-trends-watch-2017?page=1. Accessed Feb. 28, 2017.

⁶ Nicholas J. Elward and Brett Olsen. NATIXIS Global Asset Management. January 2017. “5 ETF Trends for 2017.” https://ngam.natixis.com/us/blog/5-etf-trends-for-2017. Accessed Feb. 28, 2017.

⁷ Ibid.

⁸ Bob Pisani. CNBC. Jan. 23, 2017. “Six Hot-Topic Trends for ETFs in 2017.” www.cnbc.com/2017/01/23/how-to-invest-in-etfs-six-hot-trends-for-2017.html. Accessed Feb. 28, 2017.

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.

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.

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What is a “safe” retirement withdrawal rate?

In an investment portfolio, the withdrawal rate is the monetary percentage from which a retiree draws from his account each year.  A “safe” withdrawal rate is a fixed percentage distributed as a systematic withdrawal that reasonably expects portfolio funds to last throughout the retiree’s lifetime. When determining your personal retirement withdrawal rate, it’s important to include adjustments for inflation and the portfolio’s ability to generate earnings throughout a specific time frame, ensuring the account isn’t entirely depleted.¹

These are the basic parameters for calculating a “safe” withdrawal rate, but your specified rate can vary, depending on the total portfolio value, safeguards against market risk and inflation, living expense requirements and life expectancy. We’re here to help you determine your retirement withdrawal rate for your individual situation.

The “safe” withdrawal rate strategy was originally based on financial planner William Bengen’s research in the 1990s. At the time, a prevailing theory was if an investment portfolio generated an average annual return of 7 percent, then that was the percentage that could be withdrawn each year. However, Bengen introduced the “sequence of returns risk” concept, recognizing that an average annual return represents a series of higher and lower returns. If an individual experiences significantly low returns early in retirement, the portfolio would be too depleted to sustain a high withdrawal rate, even if that rate is justified by a higher average annual return during a 15-year time period. Bengen concluded at that time that 4 percent is generally considered a “safe” withdrawal rate.²

Other financial advisors assert that if the returns sequence is favorable in early retirement, retirees could theoretically be able to increase their spending rate. In some scenarios, the 4 percent rule could even double or triple a retiree’s wealth by the end of retirement because his conservative withdrawal rate would not spend the bulk of his portfolio gains during that time period.³

Another point to consider is that the original 4 percent guideline was based on retirees spending the same amount each year throughout retirement. However, recent research has shown that retirees tend to decrease spending as they get older. Based on this decreased spending premise, analysts have determined that the 4 percent rate could be underestimated by 0.32 to 0.75 percent. In other words, because spending tends to decrease throughout retirement, the “safe” withdrawal rate guideline may be closer to a 4.5 percent.⁴

When developing a retirement withdrawal rate, remember that an investment portfolio should be sufficiently diversified to allow for growth opportunity paired with risk-mitigation financial vehicles.⁵

Content prepared by Kara Stefan Communications

¹ Bogleheads.org. Jan. 10, 2017. “Safe Withdrawal Rates.” https://www.bogleheads.org/wiki/Safe_withdrawal_rates.

 Accessed March 3, 2017.

² Wade Pfau. Forbes. April 19, 2016. “The 4% Rule and The Search for a Safe Withdrawal Rate.” https://www.forbes.com/sites/wadepfau/2016/04/19/the-4-rule-and-the-search-for-a-safe-withdrawal-rate/#772ae67f5a10. Accessed March 3, 2017.

³ Michael Kitces. Nerd’s Eye View. June 3, 2015. “The Ratcheting Safe Withdrawal Rate – A More Dominant Version Of The 4% Rule?” https://www.kitces.com/blog/the-ratcheting-safe-withdrawal-rate-a-more-dominant-version-of-the-4-rule/. Accessed March 3, 2017.

⁴ Derek Tharp. Nerd’s Eye View. Feb. 22, 2017. “The Impact of Decreasing Retirement Spending on Safe Withdrawal Rates.” https://www.kitces.com/blog/safe-withdrawal-rates-with-decreasing-retirement-spending/. Accessed March 3, 2017.

⁵ Fidelity. “Diversify Your Portfolio.” https://www.fidelity.com/learning-center/investment-products/fixed-income-bonds/diversify-your-portfolio. Accessed April 10, 2017.

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 potential 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.

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U.S. Jobs Update

Americans who expect to see a wide array of new jobs on the horizon may be in for a surprise. Not only are traditional full-time jobs scarcer these days -- a combination of technological automation and corporate thrift -- but they also aren’t what they used to be. Companies are less inclined to offer full-time jobs because they are more expensive and impede organizations’ abilities to scale up or down depending on market factors.¹

In fact, two economists recently analyzed data and discovered that “all of the net employment growth in the U.S. over the past decade came from alternative work arrangements, not full-time jobs.” Today, 20 to 30 percent of adults work on an independent or contract basis.²

Historically, job creation has been a good indicator of growth industries and, therefore, one component used to assess investment opportunities. As an independent financial services firm, we’re here to help you analyze your personal financial situation and create strategies utilizing a variety of investment and insurance products that can help you work toward your financial goals. If you’re interested in a comprehensive review of this nature, we’d be happy to schedule a time to discuss this with you further.

A recent study found that, in 2017, the states with the most positive employment outlooks are Oregon (25 percent), Hawaii (23 percent), Florida (21 percent), Iowa (20 percent), and, tying for fifth place, California and Oklahoma (18 percent each). Industries that have increased hiring in recent months include wholesale and retail trade, transportation and utilities, and professional services.³

North Carolina is one state that has lost a significant number of jobs -- 2.2 million since 2010 -- largely in the textile and furniture manufacturing sectors. Unfortunately, as the large population of business-owning baby boomers start picturing retirement in their near future, the potential exists for many more jobs to fall by the wayside. One economic analyst has embarked on a campaign to promote employee ownership of small businesses to help ensure their continuation and economic growth after the owner(s) retire.⁴

The retail industry also is seeing its share of job reductions due to the prevalence of online purchasing, rendering many long-time merchants left out on the brick-and-mortar sidewalk. For example, despite the fact that the toy industry is booming -- annual U.S. toy sales grew 5 percent in 2016 and are estimated at $26 billion -- retail giant Toys R Us recently laid off between 10 and 15 percent of its corporate employees.⁵

Another employment sector that isn’t likely to materialize at the rate expected is coal mining. Last year, the number of coal miners decreased by 24 percent compared to 2015. On the other hand, there is an increase in job opportunities in renewable energy sources, such as solar and wind power. In fact, in recent years the Bureau of Labor Statistics has pronounced “wind turbine service technician” to be America’s fastest-growing occupation.⁶

Content prepared by Kara Stefan Communications

¹ Diane Mulcahy. Harvard Business Review. Oct. 20, 2016. “Why I Tell My MBA Students to Stop Looking for a Job and Join the Gig Economy.” https://hbr.org/2016/10/why-i-tell-my-mba-students-to-stop-looking-for-a-job-and-join-the-gig-economy. Accessed Feb. 21, 2017.

² Ibid.

³ Karsten Strauss. Forbes. Dec. 13, 2016. “Where The Jobs Will (And Won’t) be in 2017.” http://www.forbes.com/sites/karstenstrauss/2016/12/13/where-the-jobs-will-and-wont-be-in-2017/#1e9fa96d1a43. Accessed Feb. 21, 2017.

⁴ Darren Dahl. Forbes. Feb. 21, 2017. “How North Carolina Can Save Jobs from the Coming Silver Tsunami.” http://www.forbes.com/sites/darrendahl/2017/02/21/how-north-carolina-can-save-jobs-from-the-coming-silver-tsunami/#616ef048463b. Accessed Feb. 21, 2017.

⁵ Doreen McCallister. NPR. Feb. 21, 2017. “Toy Fair Shows Off What’s New as Toys R Us Cuts 250 Corporate Jobs.” http://www.npr.org/sections/thetwo-way/2017/02/21/516368759/toy-fair-shows-off-whats-new-as-toys-r-us-cuts-250-corporate-jobs. Accessed Feb. 21, 2017.

⁶ Erika Fry. Fortune. Feb. 21, 2017. “Sorry, Coal. Solar Is Where the Jobs Are.” http://fortune.com/2017/02/21/donald-trump-jobs-coal-mining-solar-energy/. Accessed Feb. 21, 2017.

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 potential 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.

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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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