When a Financial Advisor Departs

Posted by on Dec 10, 2017 in 401k, 403b, atuos, bank statements, Boomers. Millenials, cars, college planning, Consumer Tools, credit card statements, Deflation, Elder Care, estate planning, family finances, financial planning, Fixed Income Investing, Inflation, insurance, Investing, IRA, IRS, Medicaid Planning, Medicaid Recovery, Medicare Planning, Retire Happy Now, Retirement, retirement planning, sales, social security, tax returns, taxes, TSA | 0 comments

If something happens with your advisor, what happens with your investments?   Provided by Frederick Saide, Ph.D.   One day, you are notified that your financial advisor is not going to be around anymore. Your advisor has left for another firm, is changing careers, is retiring, or has passed away. What do circumstances like these mean for you? Here is a look at how some scenarios may unfold and how things may differ depending on whether the financial professional works independently or as a registered representative of a brokerage firm. Some investment professionals move on to new brokerage firms. The grass may be greener at Firm B instead of Firm A, so your investment professional decides to leave Firm A for Firm B. At that moment or soon thereafter, Firm A may notify you that a new investment professional is being assigned to your account. That person could be entirely unfamiliar with your account and your goals, however. The danger is that your account may become an “orphan,” a so-called “house account” with no one actively overseeing it. You may also receive a notice from Firm B and your longtime investment professional, asking you to transfer your invested assets over to Firm B. In this scenario, you must weigh a few factors; some of them may be hard to evaluate right away. There will be costs to move the invested assets from Firm A to Firm B, if that is your choice. (Some of the assets may not be transferable.) Firm B may offer you somewhat different investments than Firm A has offered. Could the move strengthen the level of service your investment professional has provided or weaken it? Again, some of this may be hard to initially discern.1 Sometimes financial advisors decide to retire or change careers. In the case of an investment professional working for a brokerage firm, the brokerage assigns a new representative to your account and notifies you of the change, à la the second paragraph in this article. If you have a relationship with an independent financial advisor, a different scenario will likely occur. Your advisor will probably tell you the change is coming months in advance and introduce (at least in writing) the new financial professional who will oversee your account. Typically, this is someone who has worked alongside your advisor at the same small, independent financial advisory firm – perhaps, someone your current advisor knows, trusts, and has possibly “brought aboard.” Every effort is made to sustain and further your relationship.  What if an independent financial advisor becomes seriously ill or dies? Hopefully, a transition plan of some kind exists. If the advisor personally manages client portfolios and determines their asset allocations...

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The Critical Illness Insurance Option

Posted by on Dec 10, 2017 in 401k, 403b, atuos, bank statements, Boomers. Millenials, cars, college planning, Consumer Tools, credit card statements, Deflation, Elder Care, estate planning, family finances, financial planning, Fixed Income Investing, Inflation, insurance, Investing, IRA, IRS, Medicaid Planning, Medicaid Recovery, Medicare Planning, Retire Happy Now, Retirement, retirement planning, sales, social security, tax returns, taxes, TSA | 0 comments

Insurance against a life-threatening illness and why people opt for it.   Provided by Frederick Saide, Ph.D.   Ever hear of critical illness insurance? This isn’t standard-issue disability insurance, but a cousin of sorts. With people living longer, it is a risk management option entering more people’s lives. The notable wrinkle about this type of insurance is that the insurer issues you a lump sum while you are alive. Insurance for a prolonged health crisis. You buy critical illness insurance to help you out in case you are diagnosed with, suffer from, or experience a serious, potentially life-threatening health concern. Now, what does an insurer define as “serious” or “life-threatening?” That varies.1,2 Events or illnesses that often qualify include organ transplants, open-heart surgeries, deafness or blindness, Alzheimer’s disease, heart attacks, paralysis or the loss of limbs, serious cancers and other maladies. Many non-fatal, but trying conditions also fall within the category.1,2 The idea is that you will use the payout to get through the crisis financially – the treatment, the surgery, the costs incurred. The cash premium is either paid directly to you, or to someone that you designate. A lump sum to use as you see fit. While critical illness insurance pays out a lump sum to the ill, insured party, there are usually no strings attached to the money. It usually does not have to be used for medical payments. The money is tax-free, and you can use it to pay hospital bills, living expenses, business expenses – whatever costs you need or want to pay in a time of crisis.1,2 Things to remember. Critical illness insurance policies only pay out if you come down with one of the stipulated illnesses. This is why many people do not purchase them. However, with lifespans extending, many people recognize that more years may give them more chances to encounter a serious but survivable illness.1,2 If you would like to know more about critical illness insurance and whether it may be appropriate for you or a loved one, then be sure to talk with a qualified insurance or financial professional today. Fred Saide can be reached at 908-791-3831 or freds@foundationinsuranceservices.com or www.wealthensure.com  MoneyMattersUSA®, Advisory LLC and Foundation Insurance Services, LLC are independent companies with common ownership. Advisory services are offered through MoneyMattersUSA®, Advisory LLC and Insurance services are offered through Foundation Insurance Services, LLC; Frederick Saide Financial Advisor. Frederick Saide is not connected with or endorsed by the United States Government, the federal Medicare program, Medicaid program, or the Social Security Administration.   This material was prepared by a third party, and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from...

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When Will the Business Cycle Peak?

Posted by on Dec 3, 2017 in 401k, atuos, bank statements, Boomers. Millenials, cars, college planning, Consumer Tools, credit card statements, Deflation, Elder Care, estate planning, family finances, financial planning, Fixed Income Investing, Inflation, insurance, Investing, IRA, IRS, Retire Happy Now, Retirement, retirement planning, sales, social security, tax returns, taxes, TSA | 0 comments

As the recovery lengthens further, this is a natural question to ask.   Provided by Frederick Saide, Ph.D.   This decade has brought a long economic rebound to many parts of America. As 2017 ebbs into 2018, some of the statistics regarding this comeback are truly impressive: *Payrolls have grown, month after month, for more than seven years. *The jobless rate is lower than it has been for more than a decade. *Business activity in the service sector has not contracted since the summer of 2009. *The economy just grew 3% or more in back-to-back quarters, a feat unseen since 2014.1,2 In the big picture, the American economy is booming. These statistics, and others, are so noteworthy that analysts are asking: when will the business cycle peak? Has it already peaked? Or are we experiencing a remarkably great exception to the norm? Any investor must recognize two indisputable facts. One, expansions eventually give way to recessions. Two, bull markets are punctuated by bear markets. The question is when we will see the next recession, the next bear market, or both. All business cycles have four phases. The first phase – expansion – is often the longest. It is characterized by two phenomena: a bull market and annualized GDP of 2% or greater. This expansion culminates at a peak, which is phase two. The peak is characterized by irrational exuberance on Wall Street, economic growth of 3% or more, a distinct acceleration of consumer prices, and the emergence of asset bubbles.3 Then – perhaps, imperceptibly – supply begins to exceed demand. Fundamental indicators begin to weaken; yet, the economy still grows – just not at the pace it previously did. Then, the growth diminishes altogether, and the business cycle enters phase three – contraction. GDP goes negative for two or more successive quarters, which defines a recession. Corporate earnings take a major hit, depressing investors. Equities enter a bear market. Finally, things come to a trough – a bottom. On Wall Street, institutional investors reach a point of capitulation – a moment when they decide there is more potential upside than downside to stocks. Investors and consumers start to become less pessimistic. Suddenly, supply has to keep up with demand again. Things brighten, and a new business cycle begins.3  How will we know precisely when the business cycle has peaked? Without seeing the future, we cannot know. We can make an educated guess based on fundamental economic indicators and earnings, but we will really only know looking back. How can we prepare for the later phases of this current business cycle? Some healthy skepticism and some diversification may help. Investors who tend to get burned the most in an economic...

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