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“Your Aspirations are our Inspiration”

Welcome to our Summer newsletter!  Milestone birthdays are wonderful to celebrate in memorable ways. I had the good fortune to spend a week in Paris, France for a birthday extravaganza of one of my best friends. This was a trip I will never forget!!! The first night we had a private champagne and dessert boat cruise on the Seine for sunset. It was stunning. The second night we had a cocktail party on top our hotel looking directly at the Eiffel Tower and watched it begin to sparkle on the hour each hour. The next day we went to champagne country and visited the Vueve Cliquot winery and cellars. Fascinating. My appreciation for the process is greatly increased. At another winery we had a four course lunch with a different champagne for every course. Unbelievable.  I really have nothing to compare with this experience. We spent two days soaking up Montmarte and sitting in outdoor cafes whiling away the time and people watching. Later in the week we took a cooking class at LeNotre with a pastry chef.  Once again after three hours to make "l'opera" I am humble before a pastry.  I learned so much and have simply gained so much more appreciation for the the foods, wines and champagnes that I love.  It was a fabulous trip filled to overflowing with great memories!

Take it from the Mattresses

Many investors felt the need to stash their money in money market accounts, bond funds, or under their mattresses, if you will, but these "mattress" investors may have missed the rebound. The Dow Jones Industrial Average gained 77% between March 2009 and this past January. Baby Boomers are among the most likely to say they've lost money since "The Great Recession" began. If the financial downturn in 2008 & 2009 scared people into clinging to their cash, then they should be aghast when they see what they've missed in the equity markets.

$6 Trillion - The sum of money in U.S. savings, checking and money market accounts - the largest amount ever held in liquid accounts. The money earned an average of 44 basis points. The average inflation rate in February was 2.1%. Source: Market Rates Insight. 


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Facebook - Growing Fast

Even if its users aren't as fast as they used to be! A recent digital marketing study by iStrategylabs found, while the 18-24 age category had impressive growth at 74%, more impressive was the 55 and over group, with growth at 59%. Facebook has grown from 20 million users to more than 146 million in over 3 years time. Proving once again, that you really can teach an old dog, new tricks!



262 - The number of bottles from Bernard Madoff's wine and liquor collection auctioned off June 4 in 59 lots. The starting bid for a bottle of the Macallan scotch whisky was $120; a case of Chateau Mouton-Rothschild 1996 started at $3,800. Source: CNNMoney.


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Boomerang Kids

In a tough economic environment, some clients must deal with their children moving back home. In fact, a recent survey found that 13% of parents with grown children had reported that their adult child moved back home. In most cases the children are in their 20's, are actively seeking employment and/or accepting paid positions for far less than their worth. therefore leaving it difficult for them to find housing.

Sure, it doesn't cost much for children to move back in with their parents, in fact, it's not the water, cable or electricity bills that reflect the household changes. It's the grocery bill! By most estimates it's a couple of hudred dollars - although, that figure is subject to rise based on the frequency of dining out. And the cost, while minimal, can slowly erode the parent's retirement accounts.

Such situations can be stressful for all parties involved, because everybody will inevitibly fall back into the roles of adolescent struggle, where mom and dad want to be mom and dad, and the young adult wants to be treated as such. But before you throw your adult child out and create the "Naked Room" of your dreams, we believe it is important to manage your expectations and the objectives associated with the present living environment.



$747 Million - The estimated value of the New York Mets, 13% lower than a year ago. All but three Major League Baseball franchises have increased in value by an average of 7% since last year. The Cleveland Indians and San Diego Padres are the other two. Source: Forbes Magazine.


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70, the new 65?

Like most governments, America is heading for increases in the retirement age. Since 1971, the life expectancy of the aaverage 65-year old in the rich world has improved by four to five years. Therefore, demography and declining investment returns are conspiring to keep you chained to your desk for a few more years.

Fear not, working longer has three really good advantages: You, as the employee, earns more wages, the government receives more in taxes and consequently pays out less in benefits, and finally, the economy grows faster as more people continue to work for longer.

Employers, don't worry about the quality of older employees. In physically demanding positions, it's true, some might not be able to work into their late 60's. But, since we are shifting our economies to the service industry, rather than manufacturing, in knowledge-based jobs, age is of less importance and experience, by and large, prevails.



500,000 - The number of women ages 62-64 who entered the workforce between 2008 and 2011, marking it as the fastest growing labor force demographic. Source: U.S. Bureau of Labor Statistics.


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As always, if you find this information of value, please don't hesitate to share with others. Au Revoir!
 

  

Shannon T. Pitner CFP® Branch Manager Contact Us