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August 8, 2011 |
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There's been a wave of market volatility, new laws and reforms. If you, like many of us, are unsure about how these changes may impact you, please take a moment to look at my letter from the president on the debt downgrade, articles on debt ceiling, investment performance and impact of divorce on retirement assets.
Best,
John A. Frisch, CPA/PFS, CFP
President & Founder
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US Debt Downgrade
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As you know, I do not like to fuel a media-driven financial fire by even acknowledging their crisis du jour. But Friday’s downgrade of U.S. debt by Standard & Poor’s (S&P) is having quite a negative effect on investor psyches. Understanding can help combat emotional uncertainty, so I’d like to share my thoughts with you about the downgrade and the current state of our economy.
On Friday, August 5, after market close, S&P, lowered its rating on U.S. Treasury debt for the first time ever from AAA (the highest) to AA+. Moody's Investors Service and Fitch Ratings, two of the other three largest rating agencies, continue to rate America AAA. In 1917 Moody's assigned AAA as its initial rating to US debt. We had not lost it since.
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Budget Control Act of 2011
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After a last-minute agreement finally brought the stalemate over the nation's debt ceiling to a close, President Obama signed the Budget Control Act of 2011 into law on August 2, 2011, enabling the U.S. Treasury to avoid defaulting on existing obligations.
The Budget Control Act of 2011 left all sides with plenty to argue about over the next few months. In addition to increasing the debt ceiling, it would bring down the federal budget deficit by an estimated $2.1 trillion over the next ten years. It also sets the stage for more debate over how to achieve that $2.1 trillion reduction, focusing on spending cuts rather than increased revenues. Here are some of the key provisions.
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Emerging Markets Investments
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The rapid development of the emerging stock markets, both in terms of size and activities, is one of the most exciting stories in today's financial markets. These relatively untapped markets promise potentially high long-term investment returns and opportunities to further diversify an investment portfolio.
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Divorce and Retirement Assets
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What Happens to my retirement assets in the event of a divorce? This is a question that comes up frequently.
Federal law requires that participants in employer-sponsored retirement plans designate their spouse as their beneficiary unless the spouse waives this right in writing. Assuming that you and your spouse adhered to this practice, a document known as a Qualified Domestic Relations Order (QDRO), which is part of a divorce settlement, specifies how retirement assets are divided.
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About Us:
Located in Woodbridge, VA, Alliant Wealth Advisors was founded to help a select group of families
achieve all that is important to them financially. To achieve our mission
we use a consultative wealth management process, which includes both
investment consulting and advanced planning. Our approach assumes that
every client is unique; every client has varying needs and objectives;
and no two clients share the same risk tolerances, time horizons and
dreams. In addition to providing our expertise we work with clients'
existing advisors and, where there is a gap to fill, we use our own
outside experts in the fields of tax, legal and high-end Insurance.
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