Great Recession
Another view of the magnitude of the Great Recession
The Great Recession – Dec 2007 ~ Jun 2009
The Great Recession is official in the record books. The 18-month recession began in December 2007 and ended in June 2009. This was the longest slump since the Great Depression according to National Bureau of Economic Research’s Business Cycle Dating Committee, a group of academic economists that determines these benchmarks.
Equity-Indexed Annuities? Roll your own…
Considering equity-indexed annuities? Roll your own to get similar advantages and skip the downsides. Instead of a $10,000 annuity, you could put $7,260 into a 3.25% 10-year certificate of deposit from Discover Bank and $2,740 into Vanguard Total Stock Market.
California Raiding the 401(k)?
Talk about raiding your 401(k)! This doesn’t sound like a good idea. (Calpers is the California Public Employee’s Retirement Systems, the nation’s largest pension fund)
Schwarzenegger in Talks to Borrow From Calpershttp://online.wsj.comCalifornia finance officials are looking into whether the strapped state can borrow $2 billion from the California Public Employees’ Retirement System, the nation’s largest pension fund.
Watching Paint Dry…
“Investing should be more like watching paint dry or grass grow. If you want excitement take $800 and go to Las Vegas.”
— Dr. Paul Samuelson (the first American to win the Nobel Prize in Economics)
Hiring Expert Advice
Why are people reluctant to hire financial advisors? They often think investment managers are for the wealthy, not for the middle class, and many people don’t know where to find an advisor they can trust.
Brokers Masquerading as Fiduciaries
What happens when you have advisers bound by fiduciary oaths working at firms that only commit to providing “suitable” services to their clients? Answer: ambiguity.
Investors Misled By Brokers Masquerading As Fiduciarieshttp://www.forbes.com
CFA credential implies a standard of care not always upheld.
Risk of Outliving Your Assets
In my opinion the risk of outliving your assets is far greater than the risk of loss on your investments — Roger Wohlner (CFP)
Bear Markets Are Temporary
“Bear markets have always been temporary and so have bull markets”
— Sir John Templeton (one of America’s most famous mutual fund managers).
Whatever is happening on the upside is not going to go on forever so don’t invest that way. Similarly, when we have a bear market avoid the trap of thinking it will go on forever.
Downsides of Equity-Index Annuities
Considering equity-indexed annuities? Perhaps think again. Downsides include heavy front-end fees (5%-8%) for the salesperson, an upside cap that is adjustable at the insurance company’s discretion and you generally can’t acess your money for 10 years.
Downside Protection Has Downsides http://online.wsj.comFixed-indexed insurance products, commonly called “equity-indexed annuities,” offer the promise of protection on the downside combined with a guaranteed minimum upside. They racked up a record $8.2 billion in new sales in the second quarter and hit an all-time high of $168 billion in total assets…
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