Greetings!
Hi, folks!!
I Hope everyone is enjoying the beautiful fall colors and cooler weather. The retirement planning world is ever-changing and we're working hard to stay on top of the latest opportunities that come and go. JDS Wealth Management Corp. and JDS Enterprizes, Inc. have had a very successful year helping folks achieve their retirement goals and I, again, want to thank all of our clients that have put their trust in us.
I wanted to make a special point this month about the CD market in general. As most of you know, CD rates have been very low for some time now and it looks like there's no end in sight for the depressed rates. Many retirees attempt to live off the interest from their CDs to supplement their other income. With rates so low, many have had to cut back on living expenses to make ends meet.
October and November are the two biggest renewal months for CDs. I met a couple this past week that just got a 10-year CD with a rate of 2.5%!! Yuk!! The average 3-year CD rate according to Bankrate.com is approximately 1.32%. The average 1-year rate for the past 5 years was 2.25%.
So, that brings up this point: what are your CD alternatives? The good news is that there are various CD alternative programs that will earn 100%-200% more than CDs (4%-5%). They are safe, guaranteed, and can add living benefit riders that will provide additional income if needed. I'd encourage anyone that's interested in learning more, to call our office for a consultation. We have various free reports that we can pass on to you via visit or email.
I Hope you enjoy this month's articles. Pay particular attention to the 10/31 article. Also, look for us in Lake Norman Magazine. We've been a featured business, and I'll be writing articles on a monthly basis.
All the Best,
 -- Jim Stillman |
| Economic Growth
Thought for the Week, October 24, 2011
|  The rings of a tree trunk don't just show the age of a tree, they also show the climate conditions for every year of the tree's life. As a child, the fact scientists could figure out that 1866 was a great summer, just by looking at tree rings, fascinated me.
At the start of summer 2011, the global economy looked like this year's ring would be pretty thin - a tough summer with little growth.
With Fall upon us, growth looks like it won't be as bad as predicted. If the threat of global recession hasn't yet been totally averted, recent data suggests we can take a rain check. The U.S. tree ring for 2011 won't show the recession worries many voiced during the year.
Read more... |
The Eighth Largest Bankruptcy in U.S. History
Thought for the Week, October 31, 2011
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If you've never heard of MF Global Holdings, you may be surprised to learn that its Chapter 11 bankruptcy filing on Monday is the eighth largest, by assets, in U.S. history.
Firstly, to reassure all our investors, we have no direct exposure to this event.
The table below [note: table can be seen in full article] shows the top ten holders of MF Global shares, as reported by Bloomberg, LP. These are the investors most exposed to the bankruptcy:
Are there any names on there that you recognize? In addition, MF Global bonds were widely marketed last year - does your portfolio contain any of these?
If you have any holdings in the above, the Chapter 11 filing process will determine the value of MF debt and equity. Unfortunately, the prospects look bleak as the SEC are currently investigating the loss of customer money from MF Global.
So far, the filing has not caused anything like the panic Lehman did and we don't expect too much negative market action. However, a number of Wall Street firms will be taking big losses on MF's debt.
Read more...
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