Greetings!
As of the time of this writing, the three winners of the Mega Millions lottery have yet to come forward and collect their prizes. What an amazing amount of money! Approximately $640 million split three ways. Even, after subtracting taxes, and dividing by three, a person who bought all 175 million possible combinations of tickets may have netted a small profit. If they can find their ticket. Perhaps this is the reason why the winners have yet to come forward?
Last week, I spoke to Channel 9 about what a winner ought to do. You can see the video here. The decision, surprisingly enough, is similar to the one anyone who inherits anything should do.
First, set the money aside. Do not make any decisions for six months to a year while you rediscover who you are and what you want to do with your life. All of a sudden, you have the resources to achieve your dreams and the responsibility not to lose the money. So these emotions, both liberating and lonely, are upon you with great force.
Second, gather your team. Find a wealth manager (most of you readers already have us, congratulations!) Find a CPA who deals with the wealthy - because now you have some big tax "opportunities". Find a private client attorney, or an estate attorney, to help protect your assets. And, perhaps most important, find a therapist, a guide, a swami, who can help you become your own best self and not let this winfall harm you.
Third, set aside the play money. No more than 5%, but in the case of a Mega Millions Lottery winner, no more than $500,000. That should be sufficient to play with over the next year, right?
In a year, hold an anniversary celebration. At that point in time, you'll have reached a new-found comfort level with your wealth and be much more capable of making good, solid investment decisions. Plus, you'll have plenty of time to find charities that mean the most to you and time to explore and learn about new opportunities.
The odds of keeping the money are slim - whether we inherit $25,000 or win more than $200 million. Yaking time to remember who we are, where the money came from, and what means the most is often the greatest gift of all.
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| Lunch and Learn |
Join us for a Lunch & Learn Event on April 10, 2012. Our speaker, Dr. John Scott, is an Associate Professor at the University of Colorado School of Medicine, Internist and Geriatrician.
Whether we are caring for our aging parents or want to know what is in our future, Dr. Scott is and engaging speaker who will educate us on the issues of aging, and open the discussion up to answer our many questions.
Health Issues of Aging
Lunch Provided
Date: Tuesday, April 10th, 2012
Time: 11:30 AM - 12:30 PM
Location: Our offices, 9800 Mt. Pyramid Court, Suite 450
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 | |
HIGH GAS PRICES DON'T DENT PERSONAL SPENDING Consumer spending increased by 0.8% in February, even with fuel prices soaring. That topped the 0.6% gain projected by economists polled by Reuters. February's inflation-adjusted gain was 0.5%, the largest in six months. January's headline personal spending gain was doubled to 0.4% in a Commerce Department revision. (1)
HOW IS THE CONSUMER FEELING?
The final March University of Michigan consumer sentiment survey hints that morale may be rising on Main Street. It came in at 76.2, well above the 74.3 consensus of economists polled by Briefing.com. On the other hand, the March consumer confidence poll from the Conference Board fell to 70.2 from February's 71.6 mark, which was in line with the expectations of those economists. (2)
MORTGAGE RATES DIP BACK UNDER 4%
Freddie Mac's March 29 survey found the average interest rate for a 30-year fixed-rate home loan at 3.99% with an average 0.7 point. Rates on 15-year FRMs averaged 3.23% with an average 0.8 point last week. A sour note: the S&P/Case-Shiller Home Price Index fell 3.8% in January to a low unseen since the end of 2002. (2,3)
DURABLE GOODS ORDERS UP 2.2% FOR FEBRUARY This reverses some of the 3.6% retreat from January. However, economists polled by Briefing.com had expected a 2.8% gain for the month. (2)
A TREMENDOUS QUARTER WRAPS UP The best first quarter for stocks in 14 years ended with another solid week: DJIA, +1.00% to 13,212.04; S&P 500, +0.81% to 1,408.47; NASDAQ, +0.77% to 3,091.57. Look at these Q1 performances: NASDAQ, +18.67% (its best quarter in 21 years); Dow, +8.14%; S&P 500, +12.00%. Gold futures climbed $9.50 for the week, settling Friday at $1,671.90 an ounce. Gold gained 6.71% for the quarter. NYMEX crude fell $3.85 last week, but still ended March at $103.02 with a 4.24% quarterly gain. (4,5)
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| Market Summary |
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% Change |
Y-T-D |
1Yr Chg |
5-Year Avg | |
DJIA |
+8.14 |
+6.97 |
+1.39 | |
NASDAQ |
+18.67 |
+11.34 |
+5.53 | |
S&P 500 |
+12.00 |
+6.04 |
-0.17 |
(Source: msn.money.com, bigcharts.com, treasury.gov, treasurydirect.gov - 3/30/12). 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) - www.cnbc.com/id/46902933/ [3/30/12]
(2) - briefing.com/investor/calendars/economic/2012/03/26-30 [3/30/12]
(3) - freddiemac.mediaroom.com/index.php?s=12329&item=126095 [3/30/12]
(4) - money.msn.com/market-news/post.aspx?post=087cac64-3d67-4737-b94a-31c3ff49ba16 [3/30/12]
(5) - montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [3/30/12]
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 |
"It is every man's obligation to put back into the world at least the equivalent of what he takes out of it."
Albert Einstein |
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Karl Frank In Investment Advisor Magazine |
 | | Investment Advisor - November 2011 |
Investment 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. |
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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
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Riddle of the Week
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Take one letter out of a 7-letter word and it becomes longer. What is this word?
Last week's riddle:
You need to take a gallon of oil out of a barrel of oil. How can you do it using only a 3-gallon container and a 5-gallon container?
Last week's answer:
Fill the 3-gallon container with oil and pour it into the 5-gallon container. Then fill the 3-gallon container again and use it to fill the 5-gallon container the rest of the way. One gallon will be left in the 3-gallon container.
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