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 J. PINK ASSOCIATES, Inc.,
FINANCIAL ADVISORS
555 Taxter Rd. Suite 190 Ph- (914)524-7770
Elmsford, NY 10523 Fax- (914)524-7771
500 Summit Lake Dr. Suite 120
Valhalla, NY 10595 |
Weekly Market Review
for the week of - 08/23/2010 |
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| Greetings! | |
Here is your weekly tip -
Start an Emergency Fund - If you don't have an emergency fund, now might be the right time to get one started. Let's start by defining "emergency fund". To me, an emergency fund is an account that will hold anywhere between 6 - 12 months of expenses, depending on your level of comfort, that is to be used ONLY in an emergency. It is not used for a vacation, kitchen remodel or any other non emergency expenses. Personally, I strive to have 1 full year of expenses in my emergency fund. Assuming I end up not ever having a true emergency and needing to dip in to my fund, I have just funded my first year of retirement. This doesn't mean you have to have the full amount right away; you can start with very little and just keep adding to it until you reach your goal.
Next I have to decide where I want the monies to be held. Well, there are a few criteria that have to be considered/ met here.
· Conservative- I need to know that my emergency fund won't be at risk if the market or economy are not doing well.
· Liquid - I also need to be sure that I can get my hands on this money in a hurry and not have to wait or pay any penalties.
Other things to consider when setting up an emergency fund... What is the ROR (Rate of return) you're likely to get on this money? Will that ROR keep pace with inflation? If not, you may have to add the difference each year to ensure that your account is keeping up with inflation. Taxation of the account is also a consideration. You will want to be sure you understand the taxation of whatever investment you choose as your emergency fund.
If you have any questions about setting up or reviewing your emergency fund, please feel free to call our office at your leisure. |
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Market Commentary |
What will be the direction of the next 10% movement for the US stock market? Will it be a quick +10% gain, spurred on by optimistic earnings reports from a number of major corporations? Or will it be an agonizing 10% fall from the level where we find ourselves today, the result of too many nervous investors pulling dollars out of the stock market? With just over 4 months remaining in 2010, the S&P 500 is down 2.7% YTD (total return). Our sputtering economic recovery needs a jolt (source: BTN Research).
Throughout 2010 however, foreign investors have turned to the USA for the stability of our bond market. Foreigners have bought $359 billion of US corporate and government bonds in the first 6 months of this year compared to just $6 billion of US stocks. This influx of money into the fixed income market has fueled in part the drop in interest rates nationwide (source: Treasury Department).
Fed Chairman Ben Bernanke will speak at the annual Jackson Hole (WY) economic symposium at the end of this week. The conference's theme is "Macroeconomic Challenges: The Decade Ahead." Bernanke made headlines at this gathering just 3 years ago (August 2007) when the nation's top banker told the attendees that it wasn't the central bank's job - "nor would it be appropriate" - to save lenders and investors from unfortunate monetary decisions they had made. Few economic veterans in 2007 would have believed that the near total collapse of the US mortgage market was just a year away, forcing the Fed and the US government to initiate a financial rescue not seen since the 1930s (source: Federal Reserve). |
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Notable Numbers | |
1. SO FAR THIS YEAR - 61 stocks in the S&P 500 index have gained at least +20% since the beginning of calendar year 2010 as of last Friday's close (i.e., 8/20/10). The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the US stock market (source: NASD100.com).
2. BUILDING A NEW HOME - Privately-owned housing starts in July 2010 were 546,000 (a seasonally adjusted annualized total). Actual housing starts in calendar year 2005 were 2.07 million or almost 4 times the rate of annualized housing starts initiated in July (source: Treasury Department).
3. IT'S TIME TO LEAVE - A total of 620,764 homes were seized by lenders from delinquent homeowners in the first 7 months of 2010, an average of 2,928 per day (source: RealtyTrac).
4. NOT IN EVERY COUNTRY - The deduction Americans receive for the home mortgage interest expense they pay reduces the tax receipts taken in by the Internal Revenue Service by $127 billion a year. Citizens of Britain had a deduction for home mortgage interest expense paid until 1999 when the deduction was eliminated from their tax code (source: Internal Revenue Service). |
5 Star Wealth Manager honoree Client Spotlight from June 2010
MIchael Getman, The Law Office of Michael Getman PLLC. |
 Our client in the "Spotlight" for June is Michael Getman, Principal of the Law office of Michael Getman PLLC, a law firm specializing in wills, trusts, estate planning and business law in Westchester NY. Michael & his wife, Barbara, live in White Plains, NY and have three sons.
Q. What type of Law firm do you run? A. My practice runs the gamut of estate planning services. I help my clients with everything from setting up a simple will to utilizing estate planning strategies to minimize estate taxes. Q. Where is your office located? A. 445 Hamilton Ave Suite 1102 White Plains, NY 10601 Q. What is the Phone #? A. (914) 220-5475 Q. Do you have a Website/ Email? A. Yes, www.WestchesterWillsLawyer.com / MGetmanESQ@optonline.net
Q. Do you have any additional certifications?
A. Yes, I'm an AARP certified attorney
Q. What do you charge for an initial consultation?
A. I do not charge for an initial consultation.
Q. Can you describe the estate planning process?
A. Sure, during your free consultation, we will complete a simple questionnaire. I will then make recommendations as to what you need to do in order to achieve your goals. In addition, if you wish during your consultation, I will review your current estate plan (if you have one) to determine whether it meets your current/ future needs.
Q. Can you tell us a little about the Business Law end of your practice?
A. The firm generally acts as general counsel to closely held businesses that do not have a lawyer on staff. As such, the firm deals with all aspects of the client's business including choosing the proper business entity, contractual issues, employment matters, joint venture agreements, purchases and sales of businesses, franchising, shareholder and partnership agreements, operating agreements, financing and raising capital.
Be sure to check out Michaels' offer below. |
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As always, if there's anything we can help you with, please feel free to call the office anytime.
I hope you have a great week.
Sincerely,
John
John W. Pink, Sr.
J. Pink Associates, Inc.,
Financial Advisors
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At J. Pink Associates, we do comprehansive financial planning and wealth management for families and small businesses by getting to know the unique details of your financial
world and thoughtfully crafting a strategy to identify and support your goals.
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This material represents as assessment of the market and economic environment as a specific point in time and is not intended to be a forecast of future events, or a guarantee of future events, or a guaranteew of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed by NFP Securities, Inc. as to accuracy, does notpurport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. The indices mentioned are unmanaged and cannot be directly invested into. Part performance does not guarantee future results. The S&P 500 is an unmanaged index of 600 widely held stocks that is generally considered representative of the US stock market.
Securities and Investment Advisory Services offered through NFP Securities, INc. a Broker/Dealer, Member FINRA/SIPC and a Federally Registerd INvestment Advisor.
NFP Securities, Inc. does not offer tax or legal advice NFP Securities, Inc. is not affiliated with J. Pink Associates, Inc., Financial Advisors. | |
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