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Greetings!
Well, it's official, Chesapeake Investment Advisors has an additional advisor, Mike Kelly, MBA--his biography and photo follow.
Michael (Mike) Kelly has joined Chesapeake Investment Advisors to bring his years of professional investment and general management experience to focus on providing his clients the best possible value in financial advisory matters. Mike is a graduate of the U.S. Naval Academy and served for twenty years as a U.S. Marine Corps officer. He retired from the Marines and began his business career after receiving an MA, International Affairs, and an MBA in Finance.
Joining Alex Brown & Sons he maintained clients in both the retail and institutional communities during the latter part of the 1980's. He moved to the Marketing Division of the NASDAQ Stock Market in 1990 and was both Director of Issuer Affairs and Managing Director of Member Affairs. In these capacities he worked closely with the Boards, CEOs and CFOs of major NASDAQ Companies to assure development of meaningful capital market policy.
He lived in Washington and New York, NY and was active in a number of Professional Investment organizations including the Security Traders Association and the Bond Club of New York and the Army Navy Club of Washington, DC.
Mike and his wife Peggy moved to Chestertown in 2009 following thirty five years of residence in McLean, Va. They have two married daughters and five grandchildren. Both Mike and Peggy look forward to meeting so many of the wonderful people living on the Eastern Shore of Maryland and surrounding communities.
Mike has been a welcome addition and is currently taking new clients. We can thank Bob Gerhardt for recruiting Mike; Mike and Peggy moved in to Bob and JoAnne's previous house in Chestertown and during one of Bob's return visits the two "former" Marines struck up a conversation and next thing you know, Mike is getting back in the advising business. Marty |
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Concept of the Month: Retirement-now what?
As a Financial Advisor I get the opportunity to have some very deep personal conversations with clients on subjects that often have nothing to do with money. Many times I meet clients just as they are entering or planning for their retirement and while most of the time we do discuss their money situation; how much do they have; how much will they need; where should we invest; etcetera; these conversations usually lead to what they are actually going to do in retirement. Naturally, it is hard to think about how much money they are going to need if we don't know what they are going to do.
I guess the most popular thing most people want to do is travel; everyone wants to go somewhere else. Probably the second most popular answer to what are you going to do when you retire is "I don't know yet." It is surprising to learn just how many people don't have any retirement plans or goals.
I'm in the middle of a book titled, "Seven Stages of Money Maturity" by George Kinder. Kinder is the founder of The Kinder Institute of Life Planning. "Life planning focuses on the human side of financial planning." (http://www.kinderinstitute.com) I think an interesting part of the "human side" of financial planning is the way people deal with retirement. (By the way, another decent book on the subject is "Don't Just Retire, Live it, Love it!" by Richard Atkinson. It deals more with the human side of leaving the work force while Kinder's work is more about the overall human interface with money in general.)
So I'm more than a little intrigued by the idea of a Life Planning and Life Planning for Retirement as a compliment to financial planning and money management. There seems to be a tremendous unmet need for advisors who can help with the life plan while keeping in mind the financial condition.
I believe there needs to be more than working 30 to 40 years just for the privilege of not having to go to a job anymore. There needs to be a purpose for the time you spend in retirement, it is after all, the second longest period of time in your life; you might as well start planning for what you are going to do.
We'll delve more into this subject in the next few newsletters but in the meantime, try to visualize exactly what a typical day and week in your retirement will look like. If you're having trouble coming up with something, think about those folks already there who seem to be enjoying themselves and ask yourself why they're so happy?
Marty
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$11,875,851,000,000
is the Gross US Debt at the end of Fiscal year 2009. The projected debt at the end of Fiscal Year 2010 is projected to be $13,786,615,000,000. (1) So, come October 1, 2010, the USA will owe the guts of $14 Trillion dollars.
I heard someone say that the problem with our Government's deficit spending and the consequent debt is that we as humans can't visualize the number; can't get our minds around the term trillion. I agree!
I found a website run by a math guy (2) that helped me conceptualize one trillion. He used time as the reference point. A million seconds, (1/60 of a minute) equals 11.5 days. A billion seconds equals 32 years-OK, I'm going to be 50 this next month-so since I was 18 years-old a billion seconds have passed. But a trillion seconds? How long does that take? Try 31,546 years!
So, lets say our President and Congress found a way to pay some extra money toward the principal on our nation's loan, for example, let's say we can put a whole extra $1 billion dollars a year down on our debt; kind of like paying extra on our personal home mortgage. Well, we would pay off today's debt in the year 15,786. Maybe we could get it done early as part of the USA's 14,000 year anniversary.
I think what Greece is going through today we will go through in the future. Greece's national debt is about 300 billion Euros and they are unable to find anyone to lend them any more money. And they can't stop spending money--they've had three labor strikes since February 24 by public service employees due to new "austerity measures." The pseudo-austerity budget slows the amount of borrowing to only 32 billion Euros this year. So they still are not paying any extra on the principal and they continue to spend more than they have. And that's being austere, I would hate to see their extravagant budget.
At this point, Greece is rearranging deck chairs on the Titanic--I think Greece as we know it does not survive this crisis. And there is some doubt the European Union can hold together. I only hope we as a nation study this modern-day Greek Tragedy closely since, like Greece, I am pretty sure the USA cannot continue to spend more money than we bring in.
So what exactly is the end game in Greece I don't know-but we should pay attention since history may not repeat, but it rhymes. By the way, if the US has 335,000,000 people and we divided our debt between us we each would owe about $41,791.
Marty
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Book I am reading now:
Seven Stages of Money Maturity, Understanding the Spirit and Value of money in Your Life by George Kinder--published, 1999, Dell Publishing,, New York NY |
Chesapeake Investment Advisors Inc.
Martin Knight, MBA CFP®
410-810-0735
800-994-0221
Fax: 410-810-3422
Securities and Advisory Services offered through Geneos Wealth Management, Inc. Member FINRA/SIPC |
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