JDS June 2011 Newsletter

June 2011

Greetings!

Hi, folks! Hope all is well and everyone is enjoying summer (95 in the shade already)! Oh, well, summer in the South. It's better than 50 degrees and raining. On a personal note, we have good news: our daughter Kelly graduated from NC State on May 14th with honors (summa cum laude). She is a centennial scholar and we're quite proudof her, so I have to brag just a little bit. Kelly is also getting married this week down in Florida, so needless to say there has been a lot going on in the Stillman family the past month.

On the business side of things we've been very busy. Remember the old saying "look out what you ask for, you might get it?" Well, that's what happened. We're humbled and grateful for our client support, and we want to thank the new clients we've been able to welcome to our family this past month. As most of you are aware, the investment and insurance world is changing at an alarming rate. It's a challenge to keep up with all the changes, but that's what we're here for. On that note, I'm heading off to Florida for a two day educational update on investment matters with some of the brightest financial minds in America. I'm sure it'll be a learning experience like it always is, and I'll have some more great ideas and strategies. I'll follow up in future newsletters.

As some of you may be aware, last year our government passed the Frank/Dodd Financial Reform Act. This means there will be changes coming to the financial world this year and next, especially 401(k), 403(b), 457 and IRA plans. These changes are designed to protect the consumer, and that's a good thing. The important thing is to know what the changes are, how they'll affect you, and how to take advantage of them. On that note, please review the two articles we've included in the newsletter, especially the article that refers to fiduciary standards. That will be a key phrase with investment strategies in the coming years. JDS Wealth Management is a Registered Investment Advisory firm, that is, already held to this fiduciary standard. As the investment world changes, it's our job to change with it to meet our client goals.

If there is any particular subject you'd like me to cover in future newsletters, just shoot us an email and we'll do so. The most pressing issues with most retirees we meet continue to be:

1) Safety of assets
2) Guaranteed income planning
3) Nursing home/long-term care planning

Sincerely,

-- Jim Stillman

Fiduciary Standard Could Choke Sales
of Mutual Funds

InvestmentNews, March 30, 2011

With regulators inching closer to setting a universal fiduciary standard for all financial advisers, mutual fund companies may want to brace for the shift. Indeed, a number of attendees of the Investment Company Institute's Mutual Funds and Investment Management Conference in Palm Desert, Calif., this week said that a single standard of care will drastically alter the way fund firms sell their offerings.

Until now, the issue of the fiduciary standard has been a topic of hot debate in adviser circles. That will change, however, as soon as the Securities and Exchange Commission releases details of what the standard will look like, said Barry Barbash, former director of the Division of Investment Management and now a partner at Willkie Farr & Gallagher LLP.

"The SEC hasn't articulated what the fiduciary standard is with specificity other than through enforcement activity," Mr. Barbash said in an interview with InvestmentNews at the ICI conference. "When they do, it will be a lightening show in terms of how mutual fund companies will react to it. "

Read more...

Municipal Bond Update - May 2011

Thought for the Week, May 2, 2011

Many cities, counties and states are facing tough financial times. As a citizen and a tax payer, you may be concerned about this situation. As an investor, you may be wondering if Municipal bonds ("Munis") are still an appropriate investment in this economic environment - or if the Munis you already own are at risk.

Let's get straight to it; currently Municipal Bonds do not represent the quality of investment we feel comfortable allocating capital to. That's not to say they are wrong for everyone, they are not in the Risk/Reward zone we like to operate in, in our opinion.