Greetings!
Two weeks ago, a bi-partisan committee determined that the government-sponsored Long Term Care program known as CLASS was too expensive and would not be implemented. Health and Human Services Secretary Kathleen Sebelius wrote a letter to Congressional leaders noting: "Only 2.8% of Americans have private long term care coverage. By 2020, an estimated 1.5 million will need some form of long term care. Medicare does not cover long term care services. For many people, the alternative is essentially going bankrupt in order to become eligible for Medicaid. For federal and state governments, that is an expensive solution. Long term care already accounts for about one-third of Medicaid spending. The CLASS Act may be gone, BUT THE PROBLEM REMAINS."(1) Long-term care is often the most nagging insurance question for people over age 50. In fact, 70% of individuals over age 65 will require some type of long term care services during their lifetime - and 20% will need care for over five years. (2) Consider these questions:
* What is your strategy for care?
* Will family members provide care? How will providing care affect the family member?
* How will you pay for the care? What impact would a long term care event have on your family and your retirement portfolio? If you are grappling with these issues for yourself or an aging parent, ask your advisor about long-term care planning. We can help you maintain choice and control over where you receive care and who provides it. |
| Weekly Economic Update | |
HOUSEHOLDS EARN & SAVE LESS, YET SPEND MORE On Friday, Commerce Department data showed that personal incomes have declined in each of the past three months when adjusted for inflation. However, personal spending has increased in each of those months; it improved by 0.6% in September. The personal savings rate fell by 0.5% last month to 3.6%, a low unseen since December 2007. (3,4)
CONTRASTING CONSUMER SENTIMENT FINDINGS
October's final University of Michigan consumer sentiment survey improved from its September predecessor, moving to 60.9 from 59.4.Yet the Conference Board's monthly consumer confidence index slipped from 46.4 last month to 39.8 this month, a reading more like the ones from the Great Recession.(3,5)
NEW HOME SALES UP 5.7%
September's increase was the first in four months, aided by a 3.1% monthly dip in prices and ultra-low mortgage rates. The Census Bureau said that new home sales were down 0.9% from a year before. Turning to residential resales, the National Association of Realtors pending home sales index unexpectedly fell 4.6% for September. On the bright side, the August Case-Shiller Home Price Index was up 0.2% for August, a fifth straight monthly advance; there were price gains for 10 of 20 metro areas surveyed. (6,7,8)
A TERRIFIC WEEK FOR STOCKS
Last week, Eurozone leaders struck a deal in which the region's banks would accept a 50% writedown on Greek bonds. They also agreed to boost the euro area bailout fund fivefold and announced a bank recapitalization plan. Pair that with U.S. 3Q GDP coming in at an initial estimate of +2.5%, and you have two of the factors that brought about these big weekly gains : DJIA, +3.58% to 12,231.11; S&P 500, +3.78% to 1,285.08; NASDAQ, +3.78% to 2,737.15. (9,10,11) |
| Trust Company of America Announcement | |
Trust Company of America announces a new web site with new, easier-to-understand graphics and features. I think you will appreciate it. They did research with advisors like us and clients like you to find out how to improve, and they've done a great job. Here is a short video explaining the new software, codenamed "Liberty." Check it out! (12)
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| Market Summary |
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% Change |
Y-T-D |
1Yr Chg |
5-Year Avg | |
DJIA |
+5.65 |
+10.05 |
+0.23 | |
NASDAQ |
+3.18 |
+9.16 |
+3.29 | |
S&P 500 |
+2.18 |
+8.56 |
-1.34 |
(Source: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov - 10/28/11). 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:
(1) - http://www.washingtonpost.com/opinions/a-sensible-end-to-
the-federal-long-term-care-program/2011/10/17/gIQA7pfjsL_story.html
(2) - http://www.longtermcare.gov/LTC/Main_Site/Understanding
/Definition/Who.aspx
(3) - foxbusiness.com/markets/2011/10/28/consumer-spending-rises-weak-incomes-worry/ [10/28/11]
(4) - montoyaregistry.com/Financial-Market.aspx?financial-market=5-savings-secrets&category=29 [10/28/11]
(5) - npr.org/blogs/thetwo-way/2011/10/25/141683694/consumer-confidence-back-down-to-recession-level [10/25/11]
(6) - marketwatch.com/story/new-us-home-sales-rise-as-prices-tumble-2011-10-26 [10/26/11]
(7) - bloomberg.com/news/2011-10-27/pending-sales-of-u-s-existing-homes-unexpectedly-falls-4-6-on-demand-ebb.html [10/27/11]
(8) - articles.latimes.com/2011/oct/25/business/la-fi-home-prices-20111026 [10/25/11]
(9) - marketwatch.com/story/greek-bondholders-to-take-50-haircut-2011-10-26 [10/27/11]
(10) - abcnews.go.com/Business/gdp-grew-25-percent-boosted-consumer-spending-double/story?id=14821833 [10/27/11]
(11) - money.msn.com/market-news/post.aspx?post=9a8a85b3-fec9-44a1-992f-8ad9c15a1c30 [10/28/11
(12) - http://www.youtube.com/watch?v=Y031CrTZBAo
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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 | | Save the Date! | |
A&I's annual Holiday Party will be held on Friday December 2nd. Please watch for your invitation! |
| Words for Thought |
"A happy marriage is the union of two good forgivers."
Robert Quillen
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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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Riddle of the Week |
A man brings a silver antique wrapped up in a towel to an appraiser, claiming it is a trophy engraved "To General Stonewall Jackson, presented after the first Battle of Bull Run, 1861." The appraiser knows it is a fake without even looking at it. Why?
Last week's riddle:
I am in the center of gravity, and part of every victory. I am clearly seen in the midst of a river. I could name three who are in love with me and have three associates in vice. What am I?
Last week's answer:
The letter V.
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