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07Apr
An Overdue Apology to Women
Blogs / Articles
Part One of a Three-Part Series

While the topic of this blog focuses on women, I am writing it to be read by both genders.

Why?

Because, as we all know, the woman in a marriage typically outlives her husband.  It is also true that, in general, a single woman has an extended longevity compared to a single man.
(Source: Vanguard, “Plan for a Long Retirement

Statistics reveal that 70% of the time a widow chooses a new financial advisor within weeks of her husband’s passing.  (Source: CNBC, “For Some Widows, Breaking up with an Advisor is Easy to Do”, Ilana Polyak, 10/11/14).

Why does this happen?  Among others, here are some of the reasons given:

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30Mar
4 Key Ingredients for Successful Style Investing
Blogs / Articles

Click Here for interesting, timely articles from Oppenheimer Funds including:

  • Sector Valuations
  • Pres. Trump’s Pro-Growth Policies
  • Earnings
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28Mar
What Keeps You Up at Night?
Blogs / Articles
There can be many answers to the question ranging from “my health, my kids, my grandkids, our currently divided country, how to afford the cost of education, the rising cost of health care”, to name only a few.  I want to share an interview with Richard Orlando.

Orlando is CEO of Legacy Capitals, and Ned Dane of the Oppenheimer Family of Funds asks the questions.

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21Feb
Some Interesting Insights Thus Far for 2017
Blogs / Articles

As our nation and the world continue to watch the actions and react to the rhetoric of the new Administration in Washington, we have already witnessed some incredible activity.

From the resignation of National Security Advisor Michael Flynn to Kim Jong Un’s missile launch, we are witnessing daily tests – both domestic and global.

How is this influencing the markets?

  • Emerging market (EM) assets outperformed, U.S. Treasury yields fell sharply during the last week of January, and U.S. value stocks underperformed a flat market.
  • Political uncertainty sent French and Italian government bond yields to multi-year highs relative to their German peers.  Half of the European firms that have reported earnings have beaten estimates.
  • Oil fell to a near three-week low under the pressure of growing U.S. crude inventories, but pared some losses. China’s PMI data showed expansion in both services and manufacturing sectors.

And what might be coming?

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22Sep
Rise of the Robo-Advisor
Blogs / Articles

robo-advisors I am increasingly reading about the “Rise of the Robo-Advisor” and thought some recent information might interest you as it did me.

For those of you who might not be familiar with the concept, Robo-Advisors are computers programmed to create investment portfolios.  They tend to be most popular with younger investors.

Did you know that, a “decision to protect its investors by Betterment, (a large Robo-advisor) resulted in Betterment temporarily suspending trading the morning after the Brexit vote?  “This decision, made on only a 2% drop in the market, disappointed and surprised many Betterment users. “

(Source: “Betterment’s Brexit Shock” by Suleman Din Techzone Financial Planning August 2016)

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04Aug
Student Loan Debt
Blogs / Articles

Student loan debt is something that many of us struggle with after graduation. According to Studentloanhero.com: “Americans owe nearly $1.3 trillion in student loan debt, spread out among about 43 million borrowers. In fact, the average Class of 2016 graduate has $37,172 in student loan debt, up six percent from last year.”

These numbers really hit home every month when you get the online (or paper) reminder that your dreaded student loan payment is due. The psychological impact can feel even worse than the financial one when the anxious questions start to flood our minds: Will I spend the next 40 years paying minimum payments? Will I ever make enough in my job to not live paycheck to paycheck? What if I can’t pay it back? What will happen to my credit score?

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15Jul
Stepping into Your Model of the World
Blogs / Articles

Many financial professionals believe that it is the responsibility of the client to adapt to the personality and processes of the advisor.  They tend to rigid and believe that “their way is the right way to do things.”

The Resonate team is completely the opposite.  We believe that it is our responsibility to “step into the clients’ model of the world,” gain your trust and to be flexible as we learn how to work successfully with you.

How do we do this?

First, by creating safe space which invites the open conversation about the world of the client.

(Safe space is space without judgment.)

Since our lives are a microcosm of the world at large, we expect to hear about client stress, tension, regrets and uncertainty.  In addition we also are privileged to hear about what is going well and celebrate that together.

The client model of the world also reflects the larger world because it contains many aspects ranging from business to personal and from finance to family.  Just as the world continues to evolve so do our clients lives.

If you are seeking the experience of working with a team of professionals dedicated to understanding you and your changing world and then partnering with you to get from where you are to where you want to be, Resonate is the place for you.

We welcome you to our family.

Barbara A. Culver
CFP®, ChFC®, CLU, AEP®
Resonate, Inc.
(513) 605-2500
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14Jun
Sudden Tragedy
Blogs / Articles

On Saturday June 11, 2016, there was a senseless, horrific attack on members of the GLBT community.

While the politicians rush to affirm “this was an attack on all Americans,” the GLBT population has been attacked and discriminated against for centuries in ways that only those who live the life can understand.

Because the discrimination too often emanates from the family of origin, on hearing the news, I asked myself: “What happens to the survivors of those killed?

“What happens if the decedents had not taken care of their estate and legacy planning to assure that their physical and financial assets were transferred to whomever the GLBT person wanted?”

What we know is that, if we do not take control of our planning and estate documents, then the state in which we reside has a distribution plan for us. This is called dying intestate (without a will in place).

Often times, dying intestate only intensifies the tragedy of sudden loss. For example, if someone who was murdered Saturday night was also partnered, but died intestate, here is the chart that shows how assets pass by intestate succession in Florida:

If you die with: here’s what happens:
·   children but no spouse ·   children inherit everything
·   spouse but no descendants ·   spouse inherits everything
·   spouse and descendants from you and that spouse, and the spouse has no other descendants ·   spouse inherits everything
·   spouse and descendants from you and that spouse, and the spouse has descendants from another relationship ·   spouse inherits 1/2 of your intestate property

· your descendants inherit 1/2 of your intestate property

·   spouse and descendants from you and someone other than that spouse ·   spouse inherits 1/2 of your intestate property

· your descendants inherit 1/2 of your intestate property

·   parents but no spouse or descendants ·   parents inherit everything
·   siblings but no spouse, descendants, or parents ·   siblings inherit everything

(Source: NOLO “Intestate Succession in Florida”)

It is easy to see how these unexpected deaths can results in someone not only losing the most important person in his or her life, they may also lose financial well-being.

The Resonate team partners with attorneys to assure that your financial and legal plans and documents are coordinated and will work together.

In the midst of our sorrow, may we also find the resolve to be certain that our plans are current and state exactly what we want to have happen… “just in case.”

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07Jun
Time Value of Money
Blogs / Articles

Compound Interest: The 8th Wonder of the World!

One of the first things I learned in finance class was time value of money calculations. For those not familiar with what the calculation entails, it involves entering inputs into a financial calculator such as number of years, interest rate, and other assumptions to determine a future amount. I was always amazed how much money I would have in the future if I was disciplined enough to save, generate a decent rate of return, and not take or limit withdrawals.

Business Insider recently published a study conducted by JP Morgan asset management that illustrates the very topic of time value of money. In the study, JP Morgan looked at 4 individuals that invested $10,000/year at over various time periods and varying return assumptions. Let’s examine the strategies employed by each of the four individuals that were featured in the study. Chloe invested $10,000/year from ages 25-65. Lyla started 10 years after Chloe, investing $10,000/year from ages 35-65. Quincy saved $10,000 from age 25-35 and then stopped. Finally, Noah invested $10,000 from ages 25-65; however, Noah used a lower return assumption of 2.25%, lower than the 6.5% assumed for Chloe, Lyla, and Quincy. So which portfolio did the best?

Not surprisingly, Chloe’s portfolio outperformed. Over her 40 years, her contribution of $400,000 turned into $1,870,480. Quincy was able to turn a contribution of $100,000 into $950,588 despite only contributing for 10 years and not saving a dime for the next 30. While Lyla contributed 3x what Quincy put in ($300,000), she actually ended up with a lower account balance. At age 65, Lyla’s account totaled $919,892 compared to Quincy’s balanced of $950,588.

It’s no wonder that compound has been described as the8th wonder of the world!  To truly harness its power, a financial advisor can customize a savings plan that is unique to each person.

We offer a complimentary consultation to help design yours!  Please contact us to help secure your future…. Or that of a child or grandchild!

JPM TVM

Story Link: http://www.businessinsider.com/compound-interest-chart-march-2016-2016-3

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01Jun
Longevity and Planning
Blogs / Articles

A common goal inherent in planning is to be able to sustain a desired lifestyle for as long as needed.

One key question and concern is: “On what age(s) is your planning based?”

I contend that many plans have not considered the following:

The Methuselah Foundation says, “By advancing tissue engineering and regenerative medicine, we want to create a world where 90-year olds can be as healthy as 50-year olds.”

Are you tempted to answer “Maybe ….but not in my lifetime?

Well the goal for 90 to be new 50 is actually 2030!

(Source: Financial Advisor Magazine The 7 Disruptions by Bill Bachrach April 2016.)

If this goal is reached, here are some of the questions planners should be considering with  clients now:

  1. What assumptions shall we use for life expectancy?
  2. How do we invest wisely to match those assumptions?
  3. If baby boomers and Gen Xers are going to live much longer than originally thought, what impact does this have on wealth transfer?
  4. How should millennials and younger Gen Xers be preparing for their future?

Here are some action steps to consider:

  1. Look at your own planning assumptions and see if they need to be revised. If they do, discuss with your planner soon, in order to allow as much time as possible to implement more suitable ideas.
  2. Boomer parents and grandparents may want to give their children and grandchildren the gift of completing their own planning by offering to pay for the planning fee.

 

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