Greetings!
"The past decade was just a mirage," says Justin Wolfers, an economics professor now visiting at Princeton University. The income of the average American worker -- long the envy of much of the world -- has dropped for the third year in a row. Worse, this income and is now roughly where it was in 1996, once it's adjusted for inflation. Who's worst hit? Full-time working men. Their earnings are lower now than they were in the early 1970s, adjusted for inflation.
And consider this: full-time, year-round women workers made $36,931 in 2010, slightly more than in 2009 and roughly $10,000 more than in the early 1970s. Yet full-time working women still make only 77 cents for every dollar earned by comparably employed men. More on this later.(1)
Government Accountability Office (GAO) tip
The GAO reports that many Americans should research investing in "Income Annuities" with guarantees to cover their necessary expenses.
As many of you already know, the world of annuities is complex. Don't undertake this research alone! Our advisors undergo weekly ongoing training here at A&I Financial Services LLC. We also complete annual tests of our knowledge (via our Broker Dealer and various insurance companies). Finally, the State of Colorado requires every advisor to obtain Certified Education credits; the more designations each of us claims beside our names, the more work is required to maintain the credentials.(2)
A&I Financial Services Advisors are your first stop for expert independent advice on annuities and retirement planning.
Future is Bright with Top of the Table
This week, Stacey and I are in 104-degree Indian Wells, California. We're here to learn alongside some of the industry's best advisors with the Million Dollar Roundtable, Top of the Table annual meeting. It's always a pleasure to report back to you what we learn and you can be sure we'll implement every good idea we can! Stay tuned!
On a side-note: many of our advisors will join us through a "web conference" for one of the keynote speakers, Dr. Ray Kurzweil, a noted futurist.
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| Lunch and Learn Series |
Join us for a Lunch & Learn Event on September 28, 2011. Our speaker, Bob Heavers, is a productivity expert and business consultant. Learn organizational tools that will help you work "smarter not harder" in your professional life, family, and outside activities.
Overachieving without Feeling Overwhelmed
Lunch Provided
Date: Wednesday, September 28, 2011
Time: 11:30 AM - 12:30 PM
Location: Our offices, 9780 Mt. Pyramid Court, Suite 130
Englewood, CO 80112
RSVP by e-mail to Jane@assetsandincome.com or call 303-690-5070
Reservations are required. Feel free to bring a friend or colleague!
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| Weekly Economic Update | |
CPI, PPI TELL DIFFERENT STORIES According to the Bureau of Labor Statistics, the Consumer Price Index rose 0.4% in August - and annualized inflation came in at 3.8%, the highest rate in nearly three years. Annualized core inflation was +2.0% given a 0.2% rise in core CPI last month. On the other hand, producer prices showed the smallest annual gain since March: in August, they were up 6.5% year-over-year, compared to a 7.3% differential in May. The overall Producer Price Index was flat last month; core PPI went +0.1%.(3,4)
RETAIL SALES UNCHANGED FOR AUGUST
U.S. retail sales were flat last month, and that news from the Commerce Department wasn't surprising in light of the recent pressures on household spending. This comes after (revised) gains of 0.2% in June and 0.3% in July.(5)
CONSUMERS FEEL A BIT MORE OPTIMISTIC
The University of Michigan's initial September consumer sentiment survey showed some improvement: it came in at 57.8, up from the troublingly low 55.7 final August reading. Economists polled by Dow Jones Newswires had expected a rise to 57.0.(6)
GOLD DROPS, OIL ADVANCES
Gold futures went -2.39% last week, part of a 3.29% two-week decline. The precious metal settled at $1,812.1o an ounce on the COMEX Friday. NYMEX crude closed at $87.96 a barrel Friday, going +0.83% last week and +6.93% in the last four weeks. (7)
CENTRAL BANK PLEDGE GIVES STOCKS A LIFT
Thursday, the Federal Reserve and four other central banks stated they would offer 3-month dollar loans to European commercial lenders to help them address any 4Q dollar liquidity problems. This aided a rally: U.S. stocks rose each day last week. The S&P 500 had its best week since late June (+5.35%), settling at 1,216.01 Friday. The NASDAQ (+6.25% to 2,622.31) and the Dow (+4.70% to 11,509.09) also climbed. (8,9) |
| Market Summary |
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% Change |
Y-T-D |
1Yr Chg |
5-Year Avg | |
DJIA |
-0.59 |
+8.63 |
-0.09 | |
NASDAQ |
-1.15 |
+13.85 |
+3.46 | |
S&P 500 |
-3.31 |
+8.12 |
-2.09 |
(Source: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov - 9/16/11). Past performance is no guarantee of future results. Indices are unmanaged, and investors cannot invest in them directly. |
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Create a beautiful week!
Karl Frank, MBA, MSF
Certified Financial Planner (R)
A & I Financial Services LLC
303.690.5070
Citations:
(3) - latimesblogs.latimes.com/money_co/2011/09/inflation-cpi-food-energy-core-fed-economy-stimulus-qe-bond-yields-.html [9/15/11]
(4) - news.briefing.com/investor/analysis/story-stocks/ppi--august-2011.htm [9/14/11]
(5) - nytimes.com/2011/09/15/business/economy/retail-sales-and-producer-prices-unchanged-in-august.html [9/14/11]
(6) - news.morningstar.com/all/dow-jones/us-markets/201109161035/000389/us-consumer-sentiment-improves-slightly.aspx [9/16/11]
(7) - blogs.wsj.com/marketbeat/2011/09/16/data-points-energy-metals-520/ [9/16/11]
(8) - blogs.wsj.com/marketbeat/2011/09/16/data-points-u-s-markets-51/ [9/16/11]
(9)- cnbc.com/id/44532917/ [9/15/11]
This material has been prepared and is distributed solely for information purposes only. It is not a solicitation or an offer buy any securities or instrument or to participate in any trading strategy. There is no assurance that a particular trading strategy will achieve investment success.
Securities offered through Geneos Wealth Management, Inc., member FINRA/SIPC. Investment advisory services offered through A & I Financial Services LLC, registered investment advisor.
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| Words for Thought |
"When you come to the end of your rope, tie a knot and hang on." Franklin Delano Roosevelt
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| Watch Karl Frank's interview on MoneyLine9 9NEWS on May 9, 2011 | |
Click Here
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| Watch Karl Frank on Channel 9 News & Read his article "Where to Invest in Times of Turmoil" | |
Click Here
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| Read about us in the Denver Post | |
Karl Frank & Cameron Morgan were featured in the Denver Post. They talked about how to have a happy holiday while sticking to a budget.
Click here to read the article. |
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Riddle of the Week |
You have 9 seemingly identical cubes before you. You are told that one is heavier than the other eight. Using a two-pan balance scale only twice, how can you pick out the heaviest cube?
Last week's riddle:
Two in every corner, one in every room, none in a house. What is it?
Last week's answer:
The letter R.
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