Brexit Commentary

As you probably know by now, history was made as England voted to leave the European Union (euro) and re-establish the pound as its currency.

We are pleased to share with you an insightful commentary from the Chief Investment Officer at ValMark.  TOPS – BREXIT Message – June 2016

We will continue to write frequently as more information becomes available.  We urge you to stay calm and positive.

Until next time, stay focused on your purpose!

Barbara A. Culver
Resonate, Inc.
(513) 605-2500
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Observing Secondary Stocks

To our Resonate family, your families and friends,

Recently, I have been receiving emails from clients worried about the U.S. and global stock markets.

I thought that Stephen Leeb’s comments in the June 13, 2016 Complete Investor Hotline were interesting.

Leeb writes:

“One number we continue to watch:  the relative performance of so-called secondary stocks, stocks too small to qualify as making an individual difference in the big-cap averages such as the S&P 500, as compared to the S&P, itself.  We have reported on this number before because it is a simple way to note the vulnerability of the market.  In no case for more than 40 years has a major market setback occurred when this indicator averaged above 1.”

“For example, during the 20 percent decline in 2011 the average of the indicator was about .19.  On the other hand, from May through December 2008—the heart of the last bear market—the indicator’s average fell deep into negative territory.”

“Over the past three months our trusty measure of underlying market strength has averaged about 4, a number wholly consistent with a bull market, one that suggests the market will likely make a new high in the not-too-distant future.  In a worst case, under these conditions, we would be surprised at anything more than a 7 percent correction.”

If anyone reading this is not currently a Resonate client, we offer a complimentary second opinion on your existing portfolio.  We’d love to hear from you!

Until next time, live your purpose every day!

Barbara A. Culver
Resonate, Inc.
(513) 605-2500
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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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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!


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

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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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Intergenerational Planning
Blogs / Articles

Intergenerational Planning

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What Affluent Clients Want from Their Financial Advisor
Blogs / ArticlesLeave a comment

Our experience teaches us that financial planning and investment management is unique to each situation.   While we customize all of our work, we also recognize the similarities between like-minded people.  The following video captures some of the similarities among affluent investors which we strive to meet every day.

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