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Protecting your child's credit
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For a child, the damage caused by identity theft can be devastating because of the time that could pass before it is discovered. Frequently identity theft is not discovered until the child applies for a job or a driver's license many years later.
As adults, we know to protect our social security number (SSN) with our lives, but are you watching your child's SSN?
Kids make attractive targets for identity thieves because they have no previous credit history. Moreover, the crime could go undetected for years because parents don't typically check to see whether their children have credit records.
Credit issuers often do not verify the age of the applicant. The information on the application is taken at face value, especially when submitted over the phone or online.
Credit reporting agencies and the Social Security Administration don't share information. An applicant's age becomes "official" in the eyes of the credit reporting agencies when it is reported on the first credit application. Credit agencies believe the individual's age as indicated on the credit application is accurate until a dispute is filed and upheld.
Read the entire article here.
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Bridging the generation gap: a guide for employers (and parents)
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Commonwealth Financial Group's Angela Cappello explains why learning how to lead multiple generations is a key to success in doing business in the 21st century.
Generation X: age group 29 - 45
Introducing the Gen Xers. Gen Xers believe in life first, work second. They tend to be informal and casual about authority; they work at their own pace; and they're tech-savvy. Many in this age group have settled into a career and are motivated to become more of an expert in their field. Because they may have children of their own, they are juggling work with raising a family - so, according to Jon Warner and Anne Sandberg in their booklet "Generational Leadership," for these employees striking a work/life balance is critical.
Gen Xers value freedom and pragmatism, which can make them appear self-centered and unwilling to commit to a general goal or cause. They work to make ends meet and will change jobs to gain a promotion, more variety, or a better salary. They value leadership that is fair and even-handed.
Generation Y (Millennials): age group 13 - 28
Welcome to the world of the Millennials. Millennials approach work as part of a lifestyle. They like to keep their options open rather than commit to one job or even one field. Now reaching their early 20s, they are just beginning to decide what is important in terms of life, work, and relationships. Their lives are busy but not complex, so the answer to almost any dilemma is simple because they view situations in black-and-white. They'll wait to address the more complicated issues when they get older.
Millennials are tech wizards. They are quick learners, resourceful, hardworking, and high-achieving. On the flip side, they can be overconfident, given their level of experience. They need to be challenged and require frequent feedback.
Guidance for bridging the generation gap
We often manage in the way that's most natural for us, which may be fine when leading our own generation but may not work as well with other generations. The following insights can help you adjust your management style to capitalize on the strengths the new generations bring to the workplace.
Work direction. While boomers may have reached maturity in an age that valued employees who took direction and worked within a prescribed structure, the new workforce has been raised in a culture that values engagement and challenge. Although these employees appreciate a general structure within which to work, they want the flexibility to do things their way.
They also have a lot of ideas, so fostering an environment that seeks and rewards innovation is important. If an idea is presented, it is important to acknowledge it, even if it isn't something that you can implement. This will encourage creativity without impeding your ability to make decisions that are best for your business.
Social interactions. The concept of teamwork is not new to the workforce, but, for the first time ever, we are dealing with employees who have always worked in groups-they complete group assignments in college, they participate on many teams, and they have social groups with which they interact regularly-so working autonomously may be a challenge. We need to find opportunities for our younger workers to work with one another to complete assignments, as well as create opportunities for them to socialize at work.
Read the entire article here.
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Should we fear the threat of inflation?
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Lord Abbott market strategist, Milton Ezrati, remains calm about inflationary pressures.
First, the recent commodity price hikes are neither a signal of a generalized inflation nor able to cause it on their own. On the contrary, they more likely reflect particular pressures in their narrow areas that have clear if not certain resolutions. Second, economic conditions presently make a generalized inflationary pressure highly unlikely, at least for some time to come. And third, longer-term, fiscal and monetary policies significantly threaten inflationary pressure, though slack economic conditions presently give policy makers time to change course that, if they use it, could remove the threat and forestall the inflation. Any serious discussion of inflation today must separate short- from longer-term prospects. For the short run, the risks of a generalized inflation remain small, recent increases in commodity prices notwithstanding. For the longer run, the risks rise. Perhaps recent commodity price hikes anticipate this longer-term potential, though there are other explanations. But whatever the commodities specifics, the fundamental risks lie almost entirely with policy in Washington, that is, how the Federal Reserve treats the excess liquidity in markets today and how the federal government deals with its huge budget deficits. Read the entire article here.
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The secret about Social Security
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Many people believe that once they hit age 62, they should begin receiving social security benefits. Others have been advised to wait as long as possible before drawing distributions. While there is no one right answer, there is a right answer for you. Life expectancy and income needsDepending on your health, life expectancy, retirement goals, and sources of income, you may want to receive social security benefits beginning at: 1. Your early retirement age (62) 2. Your full retirement age (between 65 and 67) 3. Age 70 Because there is no mandatory age to begin taking benefits, determining when to start receiving social security is a critical component of retirement planning. The two most important factors in making this decision are: 1. Your life expectancy 2. What you plan to do with your social security income If you decide to spend your entire social security check every month and think that you may not need the funds past age 70, you may want to begin drawing on social security at the earliest possible date. Read the entire article here.
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This communication is strictly intended for individuals residing in the States of: AL, AR, AZ, CA, CO, CT, FL, GA, IA, IL, IN, KY, LA, MA, ME, MI, MT, NC, NY, OH, PA, SC, TX, VA WI, WV. No offers may be made or accepted from any resident outside these States due to various state requirements and registration requirements regarding investment products and services.
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June 2011
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Did you know that children are in danger of identity theft, just as much as adults? The problem is that credit issuers often do not verify the age of the applicant. Be sure to read the entire article to learn how to protect your child's credit. I found the article about "bridging the gap" among generations, provided by Commonwealth Financial Network, relevant to understanding the members of my family as well as gauging relationships with employees. The time period into which we are born has a lot to do with who we are as adults, as we all know.
As you know, I am a firm believer in a conservative approach to financial planning which often means remaining calm in facing fears of impending disaster. This month I'm including an article by Lord Abbott market strategist, Milton Ezrati, who presents a balanced view of the risks of an upcoming inflationary period. Finally, many of you may have questions about when and how to apply for Social Security benefits. The article "The Secret about Social Security" will provide guidance regarding this important decision.
I am available to talk with you about the issues presented here or about your investments. Please feel to call me toll free at 877-389-2121 or
Joe
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| Monthly Market Update |
Equity markets enjoy a strong AprilEquity markets rewarded investors in April, reacting positively to earnings reports and shrugging off bad news. Companies not only delivered strong earnings by containing costs, but also showed robust top-line growth. Corporate earnings and strong balance sheets helped boost investor confidence. The result-a Dow Jones Industrial Average that was up 4.13 percent in April and up 11.49 percent thus far for the year. The S&P 500 Index also performed well, 2.96 percent higher last month and 9.06 percent higher since January 1. Investors in international markets also saw positive returns. The MSCI EAFE Index returned 5.98 percent in dollar terms for the month. Gains for U.S. investors came mostly from currency fluctuations. The greenback lost 4.23 percent against the euro in April and has fallen 10.63 percent this year. While European investors in the EAFE index have lost money year-to-date, U.S. investors in the index have gained 9.54 percent-mostly as a result of currency appreciation. The weakening dollar has also benefited U.S. exporters, who experienced gains when overseas profits were translated back into dollars. The MSCI Emerging Markets Free Index returned 2.83 percent in April and has gained 4.57 percent year-to-date. Similarly, U.S. investors in emerging markets saw the bulk of their gains from the impact of a weaker dollar. Bond markets also saw gainsFixed income investors also saw gains across multiple sectors, as most major bond indices moved higher over the month. Interest rates eased lower, and prices rose, as continued buying by the Federal Reserve (the Fed) helped support bonds. As a result, the Barclays Capital Aggregate Bond Index increased 1.27 percent in April and is up 1.70 percent year-to-date. Municipal bonds also have gained, after having been badly beaten down at the end of last year and beginning of this year. The Barclays Capital Municipal Bond Index gained 1.79 percent in April and is up 2.31 percent since January 1. The economy continues to chug along, as debt worries persistBy many metrics, the U.S. economic recovery has been delayed or at least slowed in 2011. After increasing 3.10 percent in the fourth quarter of 2010, gross domestic product (GDP) grew only 1.80 percent annualized in the first quarter of this year. Consumer spending and inventory restocking were the largest contributors to growth, but reduced government spending shaved more than one percentage point off GDP. In his first formal press conference, Fed Chairman Ben Bernanke blamed the slowdown on "transitory" factors, such as defense spending, weather, and exports. In the second quarter, reduced spending by individual states and higher oil prices could remain headwinds. Go to our web site to read the complete market update.
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