|
Dear ,
Welcome to the May 2010 issue of The Wealth Chronicle.
|
|
Market Update - A Roller Coaster Ride
The market has been extremely volatile for the past couple of weeks. Unfortunately the trend has been seen the market move downwards to the point where the DOW is threatening to close under 10,000.
A lot of the blame on the market can be placed on the Debt Crisis in Greece. The debt in some of the European countries like Greece is at unsustainable levels. People wonder why a country so small as Greece could have such a large impact to the global markets. One negative aspect of the European Union is that it is only as strong as its weakest member. So while countries like Germany and France are in decent economic shape, Greece caught a cold that wasn't treated properly and turned into pneumonia. Other countries that currently have weak immune systems like Portugal, Italy, Ireland and Spain are in danger of getting sick as well and that could throw the entire continent upside down.
A weak Europe can derail the recovery plans in the United States as we were hoping to have a strong Europe to export our goods and services to. Other economic news out of the US has been mixed. Corporate earnings have been coming in strong as companies report for the first quarter. Inflation seems to be under control for now and the Real Estate market has seen an uptick. We did see some weakness in unemployment numbers and the debt level of the U.S government could be a ticking time bomb. |
|
Keeping tabs on your Munis
Money has been pouring in lately to fixed income investments and in particular Municipal Bonds. One of the risks of investing in a fixed income security is if the issuer defaults on their loan. To an investor a default could bring upon circumstances such as not receiving your interest payment or even worse not getting your principal back. There are a couple of things you can keep an eye on to stop any potential problems before they spiral out of control.
The General
When it comes to repaying municipal bond investors "General Obligation" bonds are generally safer because even if the issuing government gets into financial trouble, it often cuts expenses or raises taxes to pay back its debt. "Revenue" bonds are dependant upon the generation of funds to pay back their investors
Water and Sewer
Bonds backed by water or sewer fees in an already developed part of town are generally safe. Most likely people are not going to stop paying their bills
Regular Checkup
No longer can you set your bonds and forget about them. Every couple of months do a check up on your individual bond.
Read the Local Paper
Problems with municipalities will not show up on CNBC, but there is a good chance you can find information out about them in the local paper |
|
|
Social Security Planning Workshops
This past month I held another Social Security Seminar in Hasbrouck Heights. The seminar went well and I have had some great follow up sessions with some of the participants where I was able to help them determine when the optimal time to start collecting Social Security benefits was. Here are a couple of examples of how I was able to help
· Helped a divorcee collect an additional $1000/month of spousal benefits while she delayed collecting her own benefits. Waiting to collect her benefits allows her monthly Social Security benefit to grow by 8% each year.
· I worked with a husband and wife to help coordinate spousal benefits in conjunction with their retirement from working. I was able to present them different scenarios that showed what their Social Security benefits would be at ages 62, 63, 64, 65, and 66 and how the extra years of working would improve their benefits.
Social Security is a complex subject but by putting all the facts and options on the table it can help make an informed decision on how to maximize your retirement income. |
|
Inside the 2409 page health care reform bill that was passed last month was a massive expansion of requirements for businesses to file 1099 tax forms. The goal of the new regulations is to catch income that is going unreported to the IRS. The federal government loses an estimated $300 billion each year from the "tax gap" between what individuals and businesses owe and what they actually pay.
With tax rules becoming more and more complex it most likely makes sense to hire a professional to help with your tax needs. One professional that can help with your tax and accounting needs is Sal Grasso, owner of Grasso and Company. Grasso and Co. is a Hoboken based CPA firm and has been in business over 10 years. In addition to the outstanding service that Sal and his team provide one of the benefits of working with them is the continued access you have to your CPA throughout the year.
You can find more information about Grasso and Company at www.grassocpa.com, or by calling 201-963-6221 |
|
Company Spotlight: Kenneth McQuillen, Liberty Mutual |
Being in a car accident or having something happen to your home are two traumatic experiences that no one wants to experience. Ken McQuillen is an Insurance agent at Liberty Mutual specializing in providing Auto and Home Insurance. I had Ken take a look at my auto and home policies to provide feedback. It was great that Ken was able to save me a substantial amount of money, but just as important Ken educated me on the entire insurance process. This is something that no one else that I had previously worked with had done for me. I appreciated the consultative approach that Ken uses. I recommend having Ken provide a second opinion on your policy and who knows you may be able to save some money.
|
