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Dear ,
Welcome to the February 2012 issue of The Wealth Chronicle! |
2011 Year in Numbers
Even though we are at the end of February it's worth taking a few minutes to review what happened in 2011 and where the economy and markets stood at the beginning of 2012.
The Federal Reserve
Emerging transparency and controversy characterized 2011 as the Fed stated its intention to keep interest rates as close to zero as possible through 2013 in an effort to boost the anemic recovery. Although short-term interest rates remained low, long-term interest rates were remaining higher than the Fed liked. In January 2012, the Fed announced that continuing economic weakness was leading it to keep interest rates low for an additional year, through 2014.
Economic Data
Gross domestic product - the most commonly used measurement of economic growth in the US, GDP see-sawed during the year. In the final analysis, real GDP for 20111 was significantly lower at 1.7% after rising 3% in 2010. The Fed has estimated that GDP will grow between 2.2% and 2.7% this year, which is not exactly enough to bring down unemployment significantly
Consumer Price Index - After a worrying spike in the spring and summer of 2011, the CPI, the most closely watched indication of inflation in the economy, ended the year on a flat note, posting no gains in November and December. Overall the increase in CPI for 2011 was 3% vs 1.5% in 2010, the largest year-over-year increase in CPI since 2007. Inflation was so tame in 2010 and 2011 that there was no Social Security Cost of living increase (COLA) in the past two years, however Social Security beneficiaries received a 3.6% increase this January.
Unemployment - While the unemployment rate overall trended slightly downward in 2011, the actual statistics were not much to write home about. At the end of the year the unemployment rate was a seasonally adjusted 8.5%, compared with 9% the previous year.
Markets
For most investors, 2011 was a perplexing year. Marked by extreme volatility and man-made and natural disasters alike - including the debt ceiling debacle in the US, the ongoing European crisis, and the tsunami in Japan - 2011 wasn't a great year for investors seeking peaceful, quiet markets. Many stock market indexes ended the year on a positive note. It was a tough year fro investors seeking yield, as money market funds returned barely any positive returns, and certificates of deposit and short-term Treasuries didn't offer much more.
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We're always happy to talk with anyone you know about these important birth dates. Certain milestones present special tax and investment questions to consider. Just let us know.
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Real Estate Professionals
The following video was produced by Ray Mancison of YesInterview The video shows one particular industry (Real Estate Professionals) that I have been able to help with their financial planning. Real Estate professionals are very similar to small business owners in that their income is usually variable month to month and they must put together their own benefits packages (retirement plans, insurance, ...). If you know any real estate professionals or small business owners I would love to be introduced to them. | |
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Are you tired of papers piling up in your office. How many times has your paper shredder locked up on you when you tried to shred a couple of sheets of paper. You may want to consider Shredability
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Apple's stock market value topped the $500 billion mark on February 29, another record high for what was already the world's most valuable company. Apple's valuation is now higher than the gross domestic product of Poland, Belgium, Sweden, Saudi Arabia, or Taiwan (For more comparisons, check out this blog - Things Apple is Worth More Than. Despite its size, Apple is still one of the fastest growing technology companies. The company reported in January that its sales grew 73% last year. Even with its stunning rise in share price, the companies stock gains haven't even kept pace with its earnings.
What's the biggest expense facing people over 50? Counter intuitively, it's not health care. Instead, it's what they shell out for home mortgages and property taxes. According to data from the Employee Benefit Research Institute, housing-related costs consumed close to half of the total expenses of Americans aged 50 to 64. Even as people eventually pay off their mortgages, they're still paying a good deal of cash on maintenance costs, utilities, and property taxes - which never seem to go away
Liquid Gold? Whiskey usually doesn't come to mind as an alternative asset, but recent auction prices, may suggest rethinking the term liquid assets. Buyers who purchased the top 250 collectible bottles of whiskey for approximately $66,929 at auctions in 2008 could sell them today for $149,395 a 121% gain | |
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Please contact me if you have any questions about the articles above or about your personal or business finances.
Sincerely,
Marc Bautis
Wealth Manager
office: 201-842-7655 cell: 201-221-6895 fax: 201-754-9760
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Disclaimer:The information contained in this newsletter is for information purposes only and may not be suitable for your specific financial situation. You should consult a financial advisor before making any investment decisions relating to the information contained in this newsletter
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 | | MEET MARC | |
Marc Bautis is a Wealth Manager specializing in working with young families as well as retirees and those nearing retirement. He understands that everyone wants to not only protect their principal, but also be sure that their money lasts. He is committed and proud to deliver independent advice, always in the interest of his clients.
Marc is the creator of the Retirement Fitness Challenge™, a program designed to be sure his clients enjoy the retirement years as they have always envisioned them. Marc's program is designed to prevent outliving your money but also to minimize expenses during retirement and find the best time to start taking Social Security benefits.
Marc is a graduate of Seton Hall University. He is a Bergen County native, from Lyndhurst, where much of his extended family still resides. He currently lives in Hasbrouck Heights with his wife Katie and Old English Bulldog, Winnie.
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