JDS July 2012 Newsletter

July 2012

Greetings!

Hi folks!

Hope everyone is enjoying our nice warm summer. Our newsletter was not out on Wednesday because of the holiday, and we took a few days off. It's been a very busy year, and I want to thank all of our wonderful clients for their support. A special thank you goes out to all our clients that have been kind enough to pass along referrals. It is truly appreciated.

Changes continue to happen fast and furious, and here's a really big one: my daughter Kelly has joined the firm as an office manager and marketing director. Kelly is in the process of getting all the appropriate licenses to become an insurance and investment advisor, just like her dad! It's great to keep it in the family, and Kelly is looking forward to meeting all of our clients.

We also are in the process of ramping up our marketing and client services. We'll be doing more fun things with our clients to show how much we appreciate them, as well as to keep everyone up to date and educated on what's happening in the financial world. It's really going to be cool! Can't totally let the cat out of the bag yet, but stay tuned. You will all be getting more information shortly.

As far as the financial world goes, it's not getting any easier but there is opportunity. There will be continued volatility, and retirees need to be careful. I can't stress enough how important it is to be safe and have an income plan in retirement. Tax planning is another very important issue facing us.

With "Obama Care" now more likely to stay in place, and the Bush tax cuts set to expire at year's end, taxes will be on the rise for everyone. There have been some new strategies introduced into fixed indexed annuities that are also very attractive. Things like a 10% bonus, no caps on growth with 100% participation, death benefit and income riders that can guarantee from 7% - 13%! If you'd like more information on some of these new products or strategies for tax planning, just call the office. Until next time, enjoy the articles.

Sincerely,

--James D. Stillman

P.S. - Welcome aboard Kelly!!

Retirement Income:
Do you have a written income plan?

Lake Norman Magazine, June 2012

Without question, the number one concern of retirees today is outliving their money. The question I always ask is what's really most important: outliving your money, or outliving your income? Most are concerned about income, and rightfully so. In my view your income dictates your lifestyle and guarantees your independence as we grow older.

Several other questions need to be asked. Is the income guaranteed for life? Does it allow for inflation? Are both spouses covered? Is it taxable? If it's stock market-based, what will you do if the markets don't cooperate? Do you want "maybe" income or guaranteed lifetime income? In other words, do you want to sleep like a baby or toss and turn at night?

Risk On/Risk Off: Volatility & Correlation

Thought for the Week, June 11, 2012

Three expressions have dominated the media's description of investment phenomena since 2008: Volatility, Correlation and Risk On/Risk Off. This week we will look at what these terms have meant for general investing and our portfolios.

"Risk On/Risk Off" generally refers to an investment environment in which asset price behavior is primarily driven by seemingly bi-polar swings in investor sentiment. Rather than delicately and selectively "pricing" new information into the prices of each asset class and security, each piece of macro-economic news causes investors to ask: "will this lead to recovery or recession?"

This process results in sharp, rapid market movements (both up and down) with little regard to prior information. Investor capital quickly flows between asset classes perceived to be "Risky" (Risk On) to those perceived as "Safe" (Risk Off) and vice versa.