Like a host at a dinner party, the International Monetary Fund (IMF) put the performance of the U.S. economy on the table last week to be gnawed over by world markets.  Our weekly market commentary reports that when the IMF presented its annual review of the world’s largest economy, it stated that:

“Despite some improvements in economic indicators, particularly in the housing market, the very rapid pace of deficit reduction… is slowing growth significantly… U.S. growth is expected to slow to 1.9 percent in 2013, from 2.2 percent in 2012.  This projection reflects the impact of the sequester ($85 billion of automatic U.S. government spending cuts), and the expiration of the payroll tax cut and the increase in tax rates for high-income taxpayers…Growth could pick up to 2.7 percent next year with a more moderate fiscal adjustment and a further strengthening of the housing market.”

The IMF also said the Federal Reserve should continue quantitative easing through 2013.

It was not the only one pondering the Fed’s quantitative easing program.  The major U.S. stock market indices finished the week lower.  The Dow Jones Industrials Average fell 1.2 percent last week, the Standard & Poor’s 500 Index was off by 1 percent, and the NASDAQ dropped 1.3 percent.  Remarkably, the Dow experienced four straight days of triple-digit swings.

The next Federal Open Market Committee Meeting is on June 18 and 19.  While few people expect the Fed to announce it will reduce the pace of bond buying immediately, the majority of economists surveyed by USA TODAY predict the Federal Reserve will begin to reduce bond purchases by early fall.

Notes: S&P 500, Gold, DJ-UBS Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; the DJ Equity All REIT TR Index does include reinvested dividends and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods.

Sources: Yahoo! Finance, Barron’s, djindexes.com, London Bullion Market Association.

Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.

Are emerging countries leading the way in renewable energy?  It seems that way sometimes.  According to UNEP’s report, Global Trends in Renewable Energy Investment 2013, “Renewables are picking up speed across Asia, Latin America, the Middle East, and Africa, with new investment in all technologies… Markets, manufacturing, and investment shifted increasingly towards developing countries during 2012.”  For instance, after running even with the United States during 2011, China became the dominant country for renewable energy investment in 2012, according to the report.

This doesn’t mean the United States isn’t in the race.  According to The Economist, an analysis by Bloomberg New Energy Finance found the U.S. and China traded about $6.5 billion in solar, wind, and smart-grid technology and services during 2011.  America sold about $1.5 billion more to China than it imported.  The Economist concluded, “American ingenuity is required to supply Chinese factories with such things as polysilicon and wafers for photovoltaic cells, and the fiberglass and control systems used in wind turbines.”

So, what does the future hold?  Kiplinger’s Letters said solar power production will double in 2013 and move ahead of geothermal power as a source of clean energy.  They believe wind energy will soon rival hydroelectric power, as well.  The United States added more wind power capacity last year than any other type of power generation.  Currently, wind comprises about 5 percent of power generated in the United States.

Global investment in renewable energy may have fallen during 2012, but that doesn’t mean the industry has lost momentum.  Renewable energy is gaining share in a growing number of countries and regions, including the European Union where renewable energy – primarily solar and wind power – accounted for about 21 percent of electricity consumption in 2011, and almost 70 percent of new electric capacity in 2012.

Renewables just may prove to be the tortoise in the energy race.

Best regards,

Ron Dickinson, CFP^®, CPA, MPA-Tax

P.S.  Securities offered through Charles Schwab & Co., Inc., Member FINRA/SIPC.

* This newsletter was prepared by Peak Advisor Alliance.  Peak Advisor Alliance is not affiliated with the named broker/dealer.

* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

* The 10-year Treasury Note represents debt owed by the United States Treasury to the public.  Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

* Gold represents the London afternoon gold price fix as reported by the London Bullion Market Association.

* The DJ Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market.  The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.

* The DJ Equity All REIT TR Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.

* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.

* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

* Past performance does not guarantee future results.

* You cannot invest directly in an index.

* Consult your financial professional before making any investment decision.

Sources:

http://uk.reuters.com/article/2013/06/14/uk-imf-usa-idUKBRE95D0LJ20130614

http://www.imf.org/external/pubs/ft/survey/so/2013/car061413a.htm

http://online.wsj.com/article/BT-CO-20130614-707207.html

http://finance.yahoo.com/blogs/the-exchange/finance-week-ahead-focus-fed-234959581.html;_ylt=Akb29zb_aSPtjMcmdEEbXHCiuYdG;_ylu=X3oDMTNycWVwNWh0BG1pdANGUCBUb3AgU3RvcnkgTGVmdARwa2cDZmJjYjQ2NjUtNDM1MC0zZTAzLThhZTEtOTMyYmVjNmVlM2E2BHBvcwMxBHNlYwN0b3Bfc3RvcnkEdmVyA2JkMjExNjMyLWQ2MGMtMTFlMi1iZmZmLTlhNmEyMzEwZDkyNQ–;_ylg=X3oDMTFkcW51ZGliBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3BtaA–;_ylv=3

http://finance.yahoo.com/news/wall-st-week-ahead-investors-230802196.html

http://www.federalreserve.gov/whatsnext.htm

http://www.ibtimes.com/economic-events-june-fomc-meeting-minutes-bernanke-press-conference-fed-qe-tapering-1308475

http://www.usatoday.com/story/money/business/2013/06/16/fed-june-meeting-advance/2423363/

http://www.ren21.net/Portals/0/documents/Resources/GSR/2013/GSR2013_lowres.pdf

http://fs-unep-centre.org/publications/global-trends-renewable-energy-investment-2013

http://www.economist.com/blogs/analects/2013/03/renewable-energy

http://www.kiplinger.com/article/business/T008-C024-S005-torn-from-the-kiplinger-letters.html

http://www.brainyquote.com/quotes/quotes/w/williamsha101458.html

Inflation and taxes are a fact of life!  How does that reality impact what you do with your retirement nest egg?

In his book 18 Common Sense Rules for Enjoying a Successful Retirement, Ron devotes chapter 3 to explaining how inflation slowly chips away at the spending power of your savings and investments.  He states that you need your retirement savings to increase by more than the rate of inflation each year.

And taxes “turn up the heat” even more.

At Dickinson Investment Advisors, we aim to provide you with the guidance and tools you need for being able to thrive in your retirement living.

Click on the following link to check out a calculator from our website to learn more about how the value of your savings can be affected by both taxes and inflation.

http://www.dynamicontent.net/dcv2/indiv_calc.php?calc=41&key=dickinson-clark

And be assured that our phone lines and our doors are open for you and your questions as you plan ahead.

You’ve built your nest egg over many years.  This video explains how we can help you enjoy the rewards of your life’s efforts.

Like a funhouse mirror, investors’ concerns about whether and when the Federal Reserve will begin to end its quantitative easing program contorted market responses to economic news last week.

Our weekly market commentary describes how unexceptional economic reports were treated as good news and pushed stock markets higher.  Strong economic reports were treated as bad news and pushed stock markets lower.

Markets headed south mid-week, but responded positively to the U.S. May jobs report.  It was a Goldilocks report – neither too weak nor too strong – which showed the Labor Department added slightly more jobs than expected in May.  Apparently, investors thought the increase was not large enough to spur the Federal Reserve to early action on quantitative easing, and U.S. stock markets finished the week higher.  The Dow Jones Industrial Average was up 0.9 percent, the Standard & Poor’s 500 Index gained 0.8 percent, and the NASDAQ rose 0.4 percent.

Uncertainty about the future of quantitative easing has created volatility in U.S. bond markets during the past few weeks.  Concerns the Fed could begin tapering sooner rather than later, triggered a sharp increase in bond yields during that period.  In addition, several new offerings in the municipal bond market – issued by cities and states, municipal bonds typically are exempt from federal tax – have been scaled back or postponed because of market uncertainty.

If concerns about the end of quantitative easing continue to dominate, it’s possible markets may continue to respond to economic news in unexpected ways.  So, what’s on deck for next week?  Economic news should include the May retail sales report, initial June consumer sentiment reading, and inflation data.

Notes: S&P 500, Gold, DJ-UBS Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; the DJ Equity All REIT TR Index does include reinvested dividends and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods.

Sources: Yahoo! Finance, Barron’s, djindexes.com, London Bullion Market Association.

Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.

Is Investing in the Stock Market More Like Golf or Tennis?  Every sport has a certain way to measure performance.  For example:

• Running is based on time.
• The high jump is based on feet and inches.
• Football and basketball are based on points.
• Baseball is based on runs.
• The decathlon is based on the cumulative score from 10 different events.

So, how do we measure success as an investor?

A recent report from Invesco used golf and tennis as an analogy for how to win as an investor.  The report pointed out tennis is scored using match play, meaning your performance is measured at intervals along the way. (1) You can win games, which leads to winning sets, which leads to winning the match.  In effect, tennis players have to win along the way in order to win at the end of the match.

By contrast, golf is scored using stroke play, meaning it doesn’t matter who wins any particular hole.  Rather, the winner is determined by who has the lowest cumulative score at the end of the round or match.

Despite their different scoring systems, people who win at golf and tennis still need to perform somewhat consistently throughout their performance.  Tennis players can’t play great for 3 games and then poorly in 4 games and still win the set.  Likewise, golfers who triple bogey 12 holes and birdie 6 holes probably won’t win the club championship.

Now, before we can determine whether winning as an investor is more like golf or tennis, we have to define what “winning as an investor” means.  Simply put, we can define winning as an investor to mean you’ve achieved your financial goals within the timeframe you’ve identified and at a risk level that was acceptable to you.

Using that definition, winning as an investor is more like winning at golf than tennis.

In golf, the winner is determined at the end of the round or match and who won each individual hole does not matter.  Likewise, a winning investor “wins” when they’ve achieved their goals by the end of the specified period.

Of course, real life investing is not so neat and tidy.  Just like golfers sometimes take a triple bogey, the stock market sometimes takes a big drop.  And, while nobody likes to see these declines, it’s important to understand they will happen.

In addition, golfers are sometimes tied at the end of a tournament so they have to play extra holes.  Similarly, the financial markets occasionally experience extended declines which may mean it will take investors longer to reach their goals than originally planned.

Consider this, too: golfers have numerous clubs in their bag they can use depending on how far they are from the hole, their lie, and any obstacles that may be in their way (e.g., a tree).  On the tee at a par 5 hole, for example, a golfer might take out a driver because they have a long way to go.  Likewise, for clients who are a long way from retirement, we might more heavily weigh equities in an effort to pursue a greater return.  Conversely, a golfer on the green facing a 3-foot putt would pull out a putter instead of a driver while accepting more risk.  Likewise, if you’re in retirement, there are certain asset classes with risk and return characteristics that may be more suited to your portfolio than a heavy allocation to equities.

Golf, tennis, and investing have a lot in common.  They can all be played competitively and competitive people like to keep score and win.  As a “competitive” advisor, we do our best to “win” the investment game on your behalf so you can spend more of your time doing what you enjoy the most… which might include golf or tennis!

(Investing in securities is subject to market fluctuation and possible loss of principal.  No strategy assures success or protects against loss.)

Weekly Focus – Think About It

“I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.”

–Maya Angelou, American author and poet

Best regards,

Ron Dickinson, CFP^®, CPA, MPA-Tax

P.S.  Securities offered through Charles Schwab & Co., Inc., Member FINRA/SIPC.

* This newsletter was prepared by Peak Advisor Alliance.  Peak Advisor Alliance is not affiliated with the named broker/dealer.

* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

* The 10-year Treasury Note represents debt owed by the United States Treasury to the public.  Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

* Gold represents the London afternoon gold price fix as reported by the London Bullion Market Association.

* The DJ Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market.  The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.

* The DJ Equity All REIT TR Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.

* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.

* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

* Past performance does not guarantee future results.

* You cannot invest directly in an index.

* Consult your financial professional before making any investment decision.

Sources:

http://online.barrons.com/mdc/public/page/9_3063-economicCalendar.html (Click on link, then Simply Economics)

http://finance.yahoo.com/news/just-jobs-data-could-help-003913615.html

http://www.reuters.com/article/2013/06/07/markets-municipals-deals-idUSL1N0EH0W120130607

http://www.marketwatch.com/column/bond%20report

http://www.investorwords.com/3162/municipal_bond.html

http://www.invesco.com/pdf/PPRRGLF-FLY-1.pdf?contentGuid=f34ec06792c0b210VgnVCM1000000a67bf0aRCRD

http://www.brainyquote.com/quotes/authors/m/maya_angelou.html

Nothing is more satisfying for advisors and their clients than planning, investing, and watching net worth gradually increase.

And, nothing is more disheartening than having a significant portion of portfolio value disappear as the result of an unanticipated event.

There are many situations that can affect portfolio value.  Many of them can be avoided.  Here are a few to be wary of:

• Upheaval in the stock market.  The greatest single day decline in stock market value, as measured by the Dow Jones 30 Industrials Average, was October 19, 1987.  On that day the market lost 22.61 percent, according to The Wall Street Journal.  Keeping your eye on long-term goals may help overcome the feeling of panic that market volatility can inspire.

• Divorce.  Today, more than one-half of all marriages in the U.S. end in divorce.  Property settlements often divide assets evenly, which can significantly diminish your personal wealth.  If you have divorced, it is important to change your beneficiary on qualified plans, IRAs, and life insurance policies.  If you don’t, your assets may end up going to your ex-spouse rather than your current spouse and/or children.

• Dying without a formal estate plan.  If you die without a formal estate plan, your estate tax exemption may not be properly applied and could result in tax dollars being paid to the government unnecessarily.  Each American has an estate tax exemption of $5 million through 2013.  If a surviving spouse files a properly completed estate tax return, even when no estate tax is due, he or she can later use his or her unused estate tax exemption, plus the unused exemption of the deceased spouse.

• Dying without a will.  In many states, if you have minor children and fail to leave instructions for guardianship, your children are entitled to one-half of the property of the deceased parent.  Without a valid will, a guardian can be appointed by the court.  That guardian will control the assets of any minor children.  If the surviving spouse is not named as guardian, then he or she may have little say in how funds are spent or invested on behalf of their children.

• Untimely death of a key person in a privately-held business.  The value of a family’s business may be reduced dramatically by the death of a key person.  In some cases, it may be necessary to sell the business to create the liquidity necessary to pay the estate taxes, which generally are due nine months after the owner’s death.  Key man insurance can help prevent this.

Regardless of the unwelcome surprises life may hold, you can often protect the wealth you’ve accumulated.  If you are interested in learning more about how NOT to lose as much as 50 percent of your net worth in a single day, we can help.  Give us a call here at Dickinson Investment Advisors at 712-256-4856.

The above material was prepared by Peak Advisor Alliance.

I want to help you to understand the steps that I take so that my “buy and hold” strategy for long-term investing does not turn into a practice of “buy and forget.”

The mission of our firm incorporates a focus on “proven, time-tested investment solutions.”  Such solutions for my clients include a proactive approach to research and analysis of the funds that make up our portfolios.

First of all, when I meet together with folks for the first time, I don’t start out right away by making recommendations about what they should invest in.  As a Certified Financial Planner^®, I focus first of all on assessing their situation and needs and helping them think through the process of retirement planning.  I build a financial plan, then buy investments to fit that plan.  I approach investing from a long-term perspective and avoid the lure of attempting to “time” the stock market for short-term gains.

I believe that fund managers should be reviewed on a regular basis to make sure they are still the best of the best.  So then, how do I go about selecting the funds for my recommended list?  Here are some of the ongoing activities that I practice so that once I recommend a fund or an investment strategy for a person, I don’t just “buy and forget:”

• I subscribe to Morningstar, which is the most well-known mutual fund research firm.  This service provides research reports, portfolio trackers and many relevant articles, along with fund analysis and recommendations.  Because there are over 2,900 mutual funds, I use this service to screen for the best funds available.
• I consult together with a group of financial advisors through a monthly conference call.  Through this peer interaction, we are able to compare tools for conducting the best funds analysis as well as share best practices with one another.
• I make use of the resources for funds research available to us through Charles Schwab & Co., Inc. – the custodian for our assets under management.
• I regularly confer with fund managers as part of my own independent personal research.  Recently, I shared a sample portfolio model of mine with a group of funds analysts and authorized them to evaluate the funds I recommend for the portfolio.  Overall, their analysis helped to reinforce the strengths of the asset allocation that I have had in place, but it also gave me several ideas for continuing to make improvements in my funds selection.

I have learned over the years that when selecting funds for my clients, I don’t base my decisions on this year’s performance alone or on the latest headlines or on the fanciest marketing glitz by fund companies.  I seek to evaluate each fund according to how it will work within an entire portfolio to accomplish what is best for my clients – to enhance reward and reduce risk.

As a tax preparer, I have the advantage of seeing the investments used by many of the advisors and brokers in the Omaha/Council Bluffs metro area.  I am always comparing what I do with what others do.  I believe we compare very well, but I’m not opposed to finding new ideas from others as well.

In sum, I trust that this helps you to better understand my commitment to helping to bring value to the process of selecting funds for your retirement assets.  I would be glad to arrange a time to discuss these things with you in person and to introduce you to my team.

Sincerely,

Ron Dickinson, CFP^®, CPA, MPA-Tax

Click the image to view the 2nd Quarter 2013 Newsletter in pdf format.

To see an archive of past newsletters, please visit http://www.dickinsoninvestments.com/newsletters.”

The Fed began its first round of quantitative easing during the financial crisis in an effort to prop up the American economy.  In general, quantitative easing helps increase money supply and promote lending and liquidity.

Investors’ fears about what may happen when the program ends were apparent when, despite abundant positive economic news, major U.S. stock markets lost value last week.

 On Tuesday, after the Memorial Day holiday, the Standard & Poor’s Case-Shiller home price index posted its biggest gain in seven years.  Housing prices increased in every one of the 20 cities it tracks.  U.S. stock markets initially responded positively to the news.  However, it wasn’t long before investors began to worry that stronger housing prices might speed up the Fed’s timetable for quantitative easing, and U.S. stock markets moved lower on Wednesday.

On Thursday, weaker-than-expected economic data – first quarter gross domestic product (GDP) growth for the United States was revised downward from 2.5 percent to 2.4 percent – pushed markets higher.

On Friday, positive news – the Thomson Reuters/University of Michigan index of sentiment showed consumer confidence had reached its highest level in six years – caused markets to move lower.

U.S. stocks generally finished higher for the month of May despite last week’s performance.  The Dow Jones Industrial Index gained 1.9 percent, the Standard & Poor’s 500 Index rose by 2.1 percent, and the NASDAQ was up 3.8 percent.

Treasuries, however, delivered their worst monthly performance since 2010.  During the last four weeks, yields on 10-year Treasury notes rose from 1.6 percent to 2.1 percent – an increase of 50 basis points.

Notes: S&P 500, Gold, DJ-UBS Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the   three-, five-, and 10-year returns are annualized; the DJ Equity All REIT TR Index does include reinvested dividends and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods.

Sources: Yahoo! Finance, Barron’s, djindexes.com, London Bullion Market Association.

Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.

Some say the Consumer Financial Protection Bureau (CFPB) unnecessarily limits consumers’ choices and is not subject to sufficient oversight; others say it protects consumers from unethical business practices and unnecessary financial hardship.  Regardless of the hoopla surrounding it, consumers have begun turning to the CFPB for help.

The CFPB is funded by the Federal Reserve and operates independently of Congress which is one reason some believe it does not have sufficient oversight.  According to the CFPB’s web site, its purpose is:

“Above all… ensuring that consumers get the information they need to make the financial decisions they believe are best for themselves and their families – that prices are clear up front, that risks are visible, and that nothing is buried in fine print.  In a market that works, consumers should be able to make direct comparisons among products and no provider should be able to use unfair, deceptive, or abusive practices.”

From July 2011 (the date the CFPB became effective) through February 2013, the CFPB had received and worked to address more than 131,000 consumer complaints, including 5,000 issues raised by members of the military, veterans, and their families.  The complaints typically are related to mortgages, credit cards, bank accounts and services, private student loans, consumer loans, and credit reporting.  According to a recent article in Barron’s, the CFPB is:

“…Progressing in its original mission of reducing predatory lending by mortgage and auto lenders, credit-card issuers, and other consumer-finance outfits…  So far, the agency has forced financial institutions to repay $425 million to consumers, and tackled bias in auto loans made by finance companies via car dealers.  The CFPB has formulated tighter mortgage-lending rules that are being challenged in Congress.  The bureau is about to begin regulating an estimated 22,000 payday offices.”

For banks and financial firms, complying with CFPB rules may require operational makeovers and the not-insignificant expenses which may accompany them, according to American Banker.com.  One financial institution spent 900 hours analyzing how its mortgage operations, servicing, collections, and legal compliance measured up to CFPB rules.  Then it modified its systems, processes, and training programs (or created new ones) to ensure it would remain in compliance.  One outcome was the firm’s compliance team grew from four to 17 employees.

So, what is the CFPB?  Is it an overreaching compliance nightmare or an effective consumer watchdog?  Only time will tell.

Weekly Focus – Think About It

“The optimist thinks this is the best of all possible worlds. The pessimist fears it is true.”

–J. Robert Oppenheimer, American theoretical physicist

Best regards,

Ron Dickinson, CFP^®, CPA, MPA-Tax

P.S.  Securities offered through Charles Schwab & Co.Inc., Member FINRA/SIPC.

* This newsletter was prepared by Peak Advisor Alliance.  Peak Advisor Alliance is not affiliated with the named broker/dealer.

* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

* The 10-year Treasury Note represents debt owed by the United States Treasury to the public.  Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

* Gold represents the London afternoon gold price fix as reported by the London Bullion Market Association.

* The DJ Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market.  The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.

* The DJ Equity All REIT TR Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.

* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.

* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

* Past performance does not guarantee future results.

* You cannot invest directly in an index.

* Consult your financial professional before making any investment decision.

Sources:

http://www.bdlive.co.za/businesstimes/2013/06/02/financial-markets-jumpy-despite-good-news

http://www.forbes.com/pictures/efjl45ejmk/fed-chairman-ben-bernanke-the-brains-behind-qe-2/

http://www.forbes.com/pictures/efjl45ejmk/evolution-of-real-gdp-in-the-u-s-2/

http://www.investopedia.com/terms/q/quantitative-easing.asp

http://www.nytimes.com/2013/05/29/business/house-prices-show-largest-gain-in-years.html?pagewanted=all&_r=0

http://www.sfgate.com/business/bloomberg/article/U-S-Stocks-Rise-on-Fed-Stimulus-Bets-After-GDP-4562236.php#ixzz2V4mD0znS

http://www.bloomberg.com/news/2013-05-31/michigan-consumer-sentiment-index-climbed-to-84-5-in-may.html

http://www.reuters.com/article/2013/05/31/markets-global-idUSL2N0EC1X920130531

http://finance.yahoo.com/blogs/the-exchange/finance-week-ahead-june-swoon-come-221449595.html

http://finance.yahoo.com/blogs/breakout/bond-market-outsmarting-stocks-113004999.html

http://www.thefiscaltimes.com/Articles/2013/05/30/Critics-Say-Consumer-Bureau-is-an-Overreaching-Monster.aspx#page1

http://www.consumerfinance.gov/the-bureau/

http://files.consumerfinance.gov/f/201303_cfpb_Snapshot-March-2013.pdf (Page 6)

http://www.consumerfinance.gov/blog/2013/04/

http://online.barrons.com/article/SB50001424052748704895304578495514250700462.html#articleTabs_article%3D1

http://www.americanbanker.com/magazine/123_6/new-cfpb-rules-will-impact-all-mortgage-servicers-1059171-1.html?pg=2

http://www.brainyquote.com/quotes/authors/j/j_robert_oppenheimer.html

“As you near retirement age or even within a decade or so, it is time to start doing some serious financial planning,” said Larry Stein, CFA, author of Peace of Mind Investing.  “Retiring with confidence is to develop a plan that makes sense, executing it, and reviewing it at least every five years to make sure you’re on track.”

Stein addresses a number of risks we need to consider – those we know and don’t know.  This includes increased longevity, inflation, family responsibilities (such as caring for parents), healthcare, and interest rates.  All could have a major affect on finances and lifestyles.

Stein says a couple with both spouses at age 65 today has a 50 percent chance one of them will live past 92, and a 25 percent chance one will live to 97, in which challenges can arise.  Unless you have serious health risks or unfortunate heredity, basing your financial planning on a 95-year lifespan makes sense.

Peace of Mind Investing is built on a single premise that’s been time-tested through the Great Depression, two World Wars, and multiple other major events – yet is incredibly simple.  The grand premise: stock prices rise over time.  Stein’s book boils down to the following key points:

1.  Set return goals that make sense for your personal situation.  The only benchmark that would make sense is to achieve your personal goals over a time horizon that fits your specific situation.  Your performance goals should be the rate of return you need to live comfortably through retirement.  The true measure of investment performance is your return through a full market cycle, up and down. “Beating the S&P 500 or any other such nonsense is pure noise and distraction,” says Stein.

2.  Manage risk through asset  allocation and rebalancing.

3.  Trim risk during euphoria and overvaluation; buy during times of fear and undervaluation.

Stein says retirees and pre-retirees must manage risk vigilantly.  Withdrawals from a portfolio that sustains significant declines can accelerate the loss in value.  Risk management is imperative.

(No strategy can assure success or protect against loss.  Investing in the market is subject to possible loss of principal.  Please seek our advice here at Dickinson Investment Advisors regarding your personal situation.)

The above material was prepared by Peak Advisor Alliance.

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