A&I Financial Services Periscope

A & I Financial Services LLC Newsletter

For the Week of
February 23, 2012
 
Greetings!  

 

First, here is an uplifting story about a few of our friends and relatives who are involved with the Unified Sports Team at Grandview High School, from the NY Times! Click here to read.

 

Next, one of our advisors, Aaron Hersch, gave an informative and popular presentation on Social Security last week. You were all invited, perhaps you'd like to come next time?

 

Consider this: 

 

A husband and a wife each have two Social Security benefits, one of which they can declare at any point in time. Either they declare their own benefit, based off their own highest 40 quarters of earnings (or 35 years), or they can declare a spousal benefit, based off 1/2 of their spouse's highest 40 quarters (or 35 years) earnings.

 

Here is a sample of one of Aaron's great ideas for a husband and wife looking at retirement and thinking about maximizing their Social Security benefits.

 

First, the husband declares his Social Security benefit and then, shortly thereafter, "suspends" starting the Social Security Retirement Benefit. This allows the husband's and the wife's benefits to grow.

 

Prior to suspending benefits, the wife starts her spousal benefit, based on half of the husband's benefit. By starting a spousal benefit, the wife is not starting her own social security benefit, based off her earnings, and thus her benefit continues to grow.

 

Years pass. When the husband reaches age 70, he starts his Social Security Retirement Income. At that point, the wife elects to take her own benefit. 

 

For more information on Social Security Benefit calculations, read Your Retirement Benefit: How It Is Figured.


Using the Retirement Estimator, you can figure your own benefit based on your own earnings.  The estimator also allows you to vary the date of your retirement and shows how different retirement dates will affect your benefits. 

Weekly Economic Update 

  

CONSUMER PRICES UP 0.2% FOR JANUARY
Major factors in this increase in the Consumer Price Index include a 0.9% rise in the price of clothing as well as rising rents and healthcare costs. Core CPI also rose 0.2% in January. The annualized inflation rate hit 2.3% last month, yet the Federal Reserve expects but a 1.6% gain in the CPI across 2012. Wholesale inflation ticked up 0.1% for January, with the core Producer Price Index up 0.4%. (1)
  
RETAIL SALES FALL SHORT OF (HIGH) EXPECTATIONS
The Census Bureau reported a healthy 0.4% rise in U.S. retail purchases for January. However, economists polled by Dow Jones Newswires thought they would rise 0.9% for the month. Subtract a 1.1% decline in auto sales from the data, and retail sales were up 0.7% for January. (2)


LEADING INDICATORS HIT 3�-YEAR PEAK
The Conference Board's Leading Indicator Index rose 0.4% in January, with seven of ten indicators improving. (The most notable positive detected: a widening in the spread between short-term and long-term interest rates.) The index advanced for a fourth consecutive month. (3)


NASDAQ 3,000? DOW 13,000?
Both indices approached those psychological landmarks on Friday. The Dow went +1.16% for the week, the NASDAQ +1.65% and the S&P 500 +1.38%. At week's end, the Dow was at 12,949.87, the NASDAQ at 2,951.78 and the S&P at 1,361.23. Oil futures soared 4.63% last week on the NYMEX to settle at $103.24 a barrel Friday. Gold had a flat week, settling at $1,724.50 Friday on the COMEX following a 0.07% five-day advance. (4,5,6) 

Market Summary

% Change

Y-T-D

1Yr Chg

5-Year Avg

DJIA

+5.99

+5.13

+0.29

NASDAQ

+13.31

+4.24

+3.65

S&P 500

+8.24

+1.55

-1.30

(Source: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov - 2/17/12).  Past performance is no guarantee of future results.  Indices are unmanaged, and investors cannot invest in them directly.
Create a beautiful week!

Karl Frank, MBA, MSF
Certified Financial Planner (R)
A & I Financial Services LLC
303.690.5070
 
Citations:   

 

(1)  - www.sltrib.com/sltrib/money/53537035-79/prices-inflation-percent-costs.html.csp
 [2/17/12]
(2) - blogs.wsj.com/marketbeat/2012/02/14/retail-sales-miss-expectations-no-need-to-freak-out/ [2/14/12]
(3) - www.usatoday.com/money/economy/story/2012-02-17/january-leading-economic-indicators/53130756/1 [2/17/12]
(4) - www.cnbc.com/id/46427808 [2/17/12]
(5) - montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [2/17/12]
(6) - blogs.wsj.com/marketbeat/2012/02/17/data-points-energy-metals-547/ [2/17/12]
 
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

"In times of rapid change, experience could be your worst enemy."

 

J. Paul Getty

Karl Frank In  Investor Advisor Magazine

Holiday header
Investor Advisor - November 2011
 
Investor Advisor Magazine's November 2011 edition features Karl Frank.  In the article "Never Satisfied," John Sullivan writes:  Passion born of tragedy drives Karl Frank to do all he can to help business owners ensure a legacy for loved ones and heirs.  Industrial age publisher and philanthropist Frederick Bonfils said there is no hope for the satisfied man. If that's the case, Karl Frank is full of hope. 

 

"I'm never satisfied," Frank says matter-of-factly when asked about his advisory firm

.....Read More.

Karl Frank was interviewed by 9News on January 9, 2012 regarding "Key Questions to ask when picking a financial advisor". 

Click Here to View Video 

 

 

 

 

  Riddle of the Week

 

  What item binds two people yet touches only one? 

 

 Last week's riddle:

    

   A train moving as fast as it can go strikes a man's hand, yet he is uninjured and the train goes off its tracks. Under what circumstances could this happen?       

   

Last week's answer:  

 

   

The man is struck by a model train running around a train set.