|
The Volatility Vector
In 2004, the stock market took investors for a wild
ride. There were more anticipation-building ascents
and hair-raising plunges than the scariest roller
coaster.
After a promising start in January, the S&P 500 took
back everything it had given, and then some, by mid-
March. After a swift recovery in early April, the
market was back in the doldrums by May. And so on,
up and down, until the index hit its lowest point of
the year on August 12. At that day's close, the
market was down 4% for the year.
To the uninitiated, August 12 might have seemed like
a good day to look for alternatives to investing in the
stock market. But to an investor with a long-term
perspective, it was just another trading day.
In The Long Run -
On August 13, yet another stock price recovery
began. It faltered in September, but then built into a
solid upswing by late October. By the end of 2004,
the S&P 500 was up 10.87% for the year. Most of
the year's gains took place between October 26 and
December 31. Running for cover earlier in the year
would have meant missing out on a return that was
in line with the S&P 500's average annual return for
the past 50 years. Of course, it would be foolish to
ignore the fact that the November 2 election played
a role in the market's late run-up. But over the long
history of the stock market, there has been rarely a
time when some external event wasn't affecting the
market with positive or negative results. The stock
market is heavily influenced by emotion.
Anxiety and panic might be common human emotions,
but they are dangerous to financial decision making.
The worst mistakes are typically based on short-term
emotions rather than long-term thinking. Pouring over
daily portfolio performance might make some less-
experienced investors feel that they are in control,
but it can also make them vulnerable to the
emotional effects of the daily ups and downs of
market performance.
For the stock market, 2004 more resembled the long-
term status quo than an anomaly. Over the course of
days, weeks, and months, stock market investors
can expect some significant fluctuations. But over
the long term, the broader market has steadily risen.
Of course, past performance is no guarantee of
future results, and it is possible to lose money over
long periods.
Read on...
|
|
| |
Greetings!
We recently spent some time with colleagues who
knew us well. They were pleasantly surprised to be
reminded that WH Cornerstone has always been a
Fee-Only financial advisor. Ah ha! No matter
how well you think people understand what you do, it
never hurts to say it again.
We do not sell products. We offer unbiased financial
advice. We are an independent Registered
Investment Advisor. We are not obligated to some
big company, their proprietary offerings or sales-
driven opportunities. We act as a fiduciary in
a client-centered relationship. What does it
mean to you?
It means that as a fiduciary we are legally obligated
to maintain an allegiance of confidentiality, trust,
loyalty, disclosure, obedience and accounting to our
clients. No compromises. Complete transparency.
We provide comprehensive financial planning and
investment management. We work with our clients
to make better financial decisions to life's financial
opportunities aligned with their core values and
goals.
Time to Share. Create a Buzz.
Wealth Creation For Women
Ladies, it is time to take charge of your financial
future! The life expectancy of women is seven years
longer than men. At some point in a woman's life, she
will be responsible for 90% of her own finances. This
interactive workshop is designed to set you on the
path of creating true wealth for yourself through just
a few simple steps. We will cover the importance of
paying yourself first, automating your finances,
analyzing cash flow, budgeting and net worth, goal
setting and the basics of investing. We are
teaching
this one night course on March 1 from 7:00-9:00
p.m. through Duxbury Before and After Dark. To
learn
more you can visit their website by clicking here or
contact us.
|
| |
| |
| |
| Putting the "For Sale" Sign on Your Business |
| |
Someday, most successful business owners will do
one of two things: sell the business or transfer
ownership to family members.
At any given time, 40 percent of U.S. businesses
face the transfer-of-ownership issue. Owners who
plan ahead may have a better chance of getting a
fair price for the business, managing taxes, and
giving the buyer a solid value.
Whether you just opened your doors or are planning
to leave soon, it's a good idea to plan your exit now.
When it comes time to sell or transfer the business,
some critical issues need to be addressed.
|
| |
Read on... |
| |
| Don't Be Fooled by Estate Tax Cuts |
| |
In July 2004, the federal government was on pace to
collect more gift and estate taxes for the year than
were collected in 2003 - despite a reduction in the
top estate tax rate and a higher exemption amount.
One explanation for the increase
could be because the wealthy were benefiting from
the stronger economy. Regardless of the cause, it's
important to remember that the federal estate tax
remains a potential liability until 2010, when it is
scheduled to be repealed - but only for one year.
|
| |
Read on... |
| |
| Pursuing Growth in Retirement |
| |
Throughout most of the past century, loyal
employees could count on retiring with a pension
that paid a set amount of income for life. But over
the past two decades, the proportion of employees
covered by defined benefit plans (traditional
pensions) has fallen by half. At the same time, the
proportion of employees participating in defined
contribution plans has tripled.
Future Threats - Inflation can ratchet up
expenses such as energy, food, and medical care,
and pinch the budgets of retired households on fixed
incomes.
|
| |
Read on... |
| |
| Income for Life |
| |
Many people underestimate how long they are likely
to live in retirement. According to a recent survey,
only two out of 10 pre-retirees were able to estimate
a personal life expectancy that is close to the
average life expectancy for their respective ages.
Unfortunately, people who don't plan for the
possibility of living well into their 80s or 90s may
wonder whether it's really possible to both "live long
and prosper."
|
| |
Read on... |
| |
| Why Are Most Americans Underinsured? |
| |
Few people expect to die at a young age. This
perceived lack of risk may result in insufficient life
insurance protection.
Few people expect to die at a young age. This
perceived lack of risk may result in insufficient life
insurance protection.
The consequences of having inadequate life
insurance coverage can be tragic. Understanding the
basics of life insurance is the first step toward
owning the coverage that is most appropriate for
your family's situation.
|
| |
Read on... |
| |
| WomensWallStreet |
| |
Empowering women financially...one click at a time.
|
| |
To learn more ... |
| |
|
