New survey finds that one-in-three workers hopes to change jobs within six months. What are the implications?
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Here's what customers now expect from their e-commerce retailers, and it's not "engagement" on social media.
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What is required to nurture relationships with your high-end customers? Revisiting the marketing funnel in the age of digital marketing.
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At least one political pundit believes that Donald Trump is not a passing fad.
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How red meat joined the 478 other things that might give you cancer.
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The rise of the killer robots -- and why we need to stop them. The reality is that killer robots are only a few years away.
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These days, consumers have a vast array of financial products and services to manage. Consider these digital resources to help you keep track of it all.
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It's now been over a decade since Amazon.com first announced its Prime membership program. Here's how the company pays for all your free Prime shipping.
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As Shakespeare once wrote, love is blind. Luckily, we have animals to guide us. Here are four lessons on love and acceptance from creatures in the wild.
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Why has Twitter struggled to grow its user base?
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 What the dreams of the dying teach us about death - end-of-life dreams and visions have been documented through the ages, but there has often been a lack of understanding on the part of health care workers about their significance.
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Six recipes that can help you live longer - from the book The Blue Zones Solution: Eating and Living Like the World's Healthiest People.
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We think you'll find this month's video dealing with mutual funds management interesting and helpful. Since the subject is complex, we've taken time to help you understand the features and benefits of each type of management. Click here or on the YouTube image in the next section to view the video.
 At Chornyak & Associates, we pride ourselves in nurturing customer relationships. One of our articles in the left-hand column indicates that the idea of the "marketing funnel" a tried-and-true concept, needs to be reframed to meet the expectations of customers in the virtual age. We hope that our e-newsletter is helping us connect better with you. Please let us know how we're doing by contacting us with any comments or questions, at 614-888-2121 or 877-389-2121 toll free, or by e-mail at chornyak@chornyak.com.
 Since Medicare enrollment season
will close on December 7, 2015, we've included an article that will help you understand the difference between a Medicare advantage plan and a Medicare supplement (also known as Medi-gap coverage). If, after reading the article, you still have questions about Medicare, and you live in Ohio, you may call Chornyak & Associates' expert in the field, Suzanne McClain at: 614-890-7373, ext. 111. We're having a spectacular autumn in central Ohio. Hope you and your families are enjoying all the season has to offer.
Sincerely,
Joe
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Active vs. passive mutual fund management
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There is a difference between active and passive funds managers. Our clients have been rewarded by active management with people who have a vested interest in the companies they own and how those companies perform in the short term and long term.
We've found that funds with expenses in the lowest quartile of their peers have a better chance of doing better than the index. Another important criterion to consider is that when managers of those funds have at least a million dollars of their own personal money invested, the funds tend to over perform.
Please click on this link to view a full discussion of this critical topic, or click on the image below.
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Six best practices to protect your confidential information
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Although there is a vast amount of technology available that is designed to safeguard your devices and personal information, that information is still vulnerable to cyber criminals and identity thieves. In fact, security breaches are not always due to a weakness in technology control. Sometimes, they are the result of the action or inaction of the user-you! Therefore, you are one of the best lines of defense against cyber crime.
As October is National Cyber Security Awareness Month, it's the perfect time to implement the following information security best practices to do your part in keeping your personal information safe and secure.
1) Build strong passwords
It's important to create strong passwords for all of your online accounts. But what exactly does this mean? A strong password:
- Contains both uppercase and lowercase characters, as well as digits and punctuation is at least eight characters long
- Is not a word in any language, slang, dialect, or jargon
- Is not based on personal information, names of family members, and so on
2) Use multifactor authentication
A user ID and strong password alone are not sufficient protections for securing web accounts. Multifactor authentication-one of the simplest and most effective ways to secure your data-adds an extra layer of protection. With multifactor authentication, users must provide two forms of identification in order to log in to a site.
Here's how it works: After a user enters a user ID and password, the website will send a passcode to the user's mobile device. He or she must then enter this code on the site, ensuring that only that individual can sign into the account.
3) Be suspicious of unsolicited e-mail
Be wary of any e-mails that convey a sense of doom and gloom (e.g., threatening to close an account) or that claim immediate action is required. Grammar mistakes, spelling errors, and generic salutations are also red flags. Perhaps most important, scrutinize those e-mails that contain links and attachments from sources you don't know (and, unfortunately, even from sources you do know). It's quite easy for cyber criminals to craft a legitimate-looking e-mail in the hopes that you'll be fooled into thinking it came from a company you do business with or from a friend. To protect yourself from this scenario, don't hesitate to verify: Call the source directly to authenticate from whom it was sent it; if it came from a company you know, go to the company website directly to log in.
� 2015 Commonwealth Financial Network�
Continue reading the article here.
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Medicare advantage vs. medicare supplement:
How to choose
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 Medicare is an excellent benefit, but do you know what options you have in addition to the standard program? This article by Arthur Fitzwater of Medicare.com will give you the basics of the choices facing you. To get a complete discussion of the situation, if you live in Ohio please feel free to contact Chornyak & Associates' Medicare expert, Suzanne McClain of National United Brokers, Inc. Her number is: 614-890-7373, ext. 111.
After enrolling in the Medicare program, beneficiaries must decide how they want to receive their Original Medicare, Part A and Part B, benefits and whether they need additional coverage. This means that they will have to decide if a Medicare Advantage plan is right for them, or if they should stick with Original Medicare coverage and sign up for a Medicare Supplement plan for added benefits. Each of these Medicare plan options come with different benefits, costs, and rules; hence, it is important to weigh both options carefully before choosing.
What is Medicare Advantage?
Also called Medicare Part C, Medicare Advantage plans provide coverage through private insurance companies approved by Medicare. These companies provide all the benefits of Part A and Part B, with the exception of hospice care (that remains covered by Medicare Part A). These plans sometimes also include additional benefits, such as vision, dental, and/or prescription drug coverage. Note that people with end-stage renal disease (ESRD) generally do not qualify for Medicare Advantage plans. When you join a Medicare Advantage plan, you must continue paying your Part B premium.
What is Medicare Supplement?
Also known as Medigap, Medicare Supplement plans are offered by private insurance companies and can take care of certain health care costs not covered by Original Medicare, like deductibles, premiums, and co-payments. There are 10 standardized plans in 47 states, while Massachusetts, Minnesota, and Wisconsin each have their own plan offerings. Plans are categorized by letter-A, B, C, D, F, G, K, L, M, and N-and plans of the same letter offer the same benefits. However, insurance companies can offer plans at different prices; therefore, you may have different out-of-pocket costs, even if the standardized plan benefits are the same. These plans do not provide prescription drug coverage. This means that you will have to enroll in a stand-alone Medicare Prescription Drug Plan for medication coverage.
While Medicare Supplement plans help with deductibles and other expenses not paid by Original Medicare, they do not cover services if Original Medicare does not cover them. For example, they do not cover long-term care, dental care, or eye glasses.
How do I choose?
When deciding on a plan, it's essential to compare the benefits and costs in relation to your specific health care needs. With Medicare Advantage plans, you must continue to pay your Part B monthly premium, in addition to the monthly premium for your plan. However, although Medicare Supplement plan benefits are standardized, costs can vary between plans with the same benefits and are generally more expensive.
When comparing the benefits and costs of plans in your area, be sure to take these key factors into consideration:
- Deductibles
- Monthly premiums
- Anticipated costs of health care and hospital services you use often
- Restrictions on doctors, hospitals, and pharmacies
- Expected costs of prescription drugs that you require regularly
- Maximum out of pocket amounts
Can't I have both?
No, Medicare Advantage plans do not work with Medicare Supplement plans. This means that you cannot use your Medigap plan to take care of the copayments, premiums, or deductible from your Part C Medicare Advantage plan.
What if I choose Medicare Advantage?
If you decide to enroll in a Medicare Advantage plan after being in Original Medicare (Part A and Part B) for some time, you may want to cancel your Medigap plan since it cannot be used to pay for Medicare Advantage costs. If you do drop your Medigap plan in this scenario, you have a guaranteed right to purchase another Medigap policy if you decided to disenroll from the Medicare Advantage plan while you are still in a "trial period." In most cases, a trial period lasts for twelve months after a person enrolls in a Medicare Advantage plan for the first time.
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Dealing with your parents: When seniors
become dependents
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Kelly Phillips Erb, who covers tax on Forbes magazine believes that paying tax is painful but reading about it shouldn't be.
Mothers-in-law don't always have the best reputation. Many mother-in-law relationships are notoriously difficult, such as Ralph Kramden's relationship with his own mother-in-law on "The Honeymooners": Alice: Now you listen to me, Ralph. My mother is coming here and you're going to be nice to her.Ralph : Be nice to her? That's impossible! We don't get along. We're enemies, natural enemies. Like a boa constrictor and a mongoose. She hates me, Alice!Lucky for me, my mother-in-law doesn't hate me. And I don't hate her. We get along just great. In fact, as she grows older, my husband and I have been discussing the idea of her moving in with us (my father-in-law passed away last year). This isn't novel. More families like mine are contemplating the best way to deal with aging parents, especially following the death of one parent. My husband and I are the "sandwich generation" - adults who find themselves caring for our children while, at the same time, keeping a watchful eye on our parents. The financial implications of taking care of children and parents can be tough to sort out. On the tax side, a number of tax breaks - including the personal exemption amounts - depend on whether you can claim a person you support as your dependent. Generally, for U.S. tax purposes, a dependent must be a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico (some exceptions apply for adopted children); have a valid tax ID number; and be either your qualifying child or your qualifying relative. A person is your qualifying child if that person meets all of these tests: Relationship test. The child must be your child, stepchild, adopted child, foster child, brother or sister, or a descendant of one of these. Residence test. The child must have the same residence as you for at least half of the tax year. Age test. The child must be under age 19 at the end of the tax year; under age 24 and a full-time student for at least five months out of the year; or totally and permanently disabled. Support test. The child must not have provided more than half of his or her own support during the tax year. Return test. The child, if married, must not have filed a joint return with his or her spouse. This being tax law, of course, caveats, and exceptions apply (for example, college students may still be considered dependents even if they live away from home). There are also exceptions for other temporary absences: children who were born or died during the year, children of divorced or separated parents or parents who live apart, and kidnapped children. But what about your parents or your in-laws? If you take care of a parent or in-law, you may be also to claim that person as a dependent as a qualifying relative. A person is your qualifying relative if that person meets all of these tests: Not a qualifying child test. A person is not your qualifying relative if he or she is your qualifying child or the qualifying child of any other taxpayer. Member of household or relationship test. To meet this test, a person must either live with you all year as a member of your household, or be related to you as your child, stepchild, foster child, or a descendant of any of them (for example, your grandchild); your brother, sister, half brother, half sister, stepbrother, or stepsister; your father, mother, grandparent, or other direct ancestor, but not foster parent; tour stepfather or stepmother; a son or daughter of your brother or sister; a son or daughter of your half brother or half sister; a brother or sister of your father or mother; or one of your in-laws (including your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law). Gross income test. To meet this test, a person's gross income for the year must be less than $4,000. Gross income is all income in the form of money, property and services not exempt from tax. That means that Social Security benefits are excluded if they are not taxable. Support test. To meet this test, you generally must provide more than half of a person's total support during the calendar year. You'll notice there is no test for age. Unlike the criteria for determining whether a person might be a qualifying child, there is no age test for a qualifying relative. A qualifying relative can be any age - so yes, your older mother-in-law or parent would count so long as he or she meets the other criteria. And no need to read through the piece again: residency is not a requirement to claim a dependent for a parent or in-law. Your parent, in-law or other qualifying relative doesn't actually have to live with you: he or she can live in his or her own home, a nursing home or an assistance living facility. So even if you can't live with your mother-in-law but you're still taking care of her, you may still get a tax break.
Read the rest of the article here.
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Market Update
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October sees a return of market strength
After a difficult third quarter, October defied expectations with across-the-board gains in U.S. markets. The Dow Jones Industrial Average ended the month up 8.59 percent, while the S&P 500 Index climbed 8.44 percent. The Nasdaq did the best, increasing 9.38 percent.
Performance during the month was smooth, with no significant declines for any U.S. index. Markets rose as worries from previous months gradually receded. China posted better-than-expected numbers; Europe continued to grow; and, perhaps most important, U.S. earnings reports came in better than expected. Finally, the Federal Reserve's statement about the economy at month-end was unexpectedly positive.
Fundamentally, conditions remain reasonably healthy. Corporate earnings have been strong, with more than three-quarters of companies that reported by the end of October beating earnings expectations. Additionally, the expected aggregate corporate growth rate was revised upwards, although it is showing a decline because of energy companies. Revenues have been less positive, however; with fewer companies than usual beating expectations, analysts anticipate a third quarter in a row of declines.
Despite all of this, at the end of October, the technical trend for U.S. markets turned positive again, with indices moving back above their 200-day moving averages. These strong moves suggest that the breakdown in September may have been only temporary (as we have seen several times in the past couple of years).
Foreign markets also recovered last month, although to different degrees. Developed markets, as represented by the MSCI EAFE Index, showed the same kind of steady increase during October but stabilized toward month-end, posting a gain of 7.82 percent. The MSCI Emerging Markets Index also rose, though it declined on fears of a Fed rate increase from an almost 10-percent gain in the middle of the month to finish the period up 7.04 percent.
The strong performance in global markets was engendered by an easing of investor risk fears and continued central bank stimulus in Europe and China. Although European growth remains slow, the European Central Bank has committed to increased stimulus later this year, and the Chinese government announced its own round of stimulative measures.
Emerging markets also benefited from an improved economic picture in China. Technically, however, both the EAFE and emerging market indices remained below their 200-day moving averages, suggesting possible future weakness.
Fixed income markets had a challenging October, as decreased investor fears and a late-month statement from the Fed that many took as hawkish combined to drive interest rates higher. The 10-year Treasury yield increased from 2.05 percent at the beginning of October to 2.16 percent by month-end. Much of this change was in the last three days of the period, as the 10-year yield was at 2.05 percent on October 27, the day before the Fed announcement. The Barclays Capital Aggregate Bond Index returned 0.02 percent for the month. U.S. economic recovery slows down
In contrast to the market's strong performance, the U.S. economy continued to slow. The employment report disappointed for the second month in a row, with gains of 142,000 jobs and a significant downward revision to September's number. Wage growth was equally disappointing-flat for the month-and average hours worked per week declined. The number of layoffs reported remained very low but still signaled a slowdown. Perhaps led by the weak employment numbers, personal income and spending came in below expectations. From a sector standpoint, manufacturing and energy were the two areas of significant weakness. Manufacturing in general has an export orientation and has been slowed by both the strong dollar and slower growth in the rest of the world. The energy sector, with oil prices remaining low, has continued to shed workers and decrease investment in new facilities. Reflecting this situation, economic reports such as industrial production and durable goods sales have come in below expectations.
Despite the weakness in these sectors, there was some good news. The services sector was very strong, as indicated by the ISM Nonmanufacturing: NMI Composite Index number, and has remained near record-high levels following the financial crisis (see Figure 1). Because services represent seven-eighths of the U.S. economy, this is significant. In addition, consumer confidence either increased or remained at healthy levels, depending on the survey, suggesting that, although spending growth may have stalled, fundamentals are sound. Finally, housing continued to do well, with the housing industry survey at record levels and both housing starts and existing home sales beating expectations. The weakness of the energy and manufacturing sectors, combined with the slowing in consumer spending, contributed to the anemic 1.5-percent gross domestic product (GDP) growth rate for the third quarter, released late in the month. This was down from the previous quarter's growth of 3.9 percent, though in line with expectations. Even with this weak number, however, looking under the hood suggests that things are better than they appear. The decline was due to a substantial decrease in business inventory accumulation, which had rocketed the previous two quarters. Adjusted for that, the GDP decrease appears more reasonable-and less concerning.
Federal Reserve steps back into action
The basic health of the economy was ratified by the Fed in its regular meeting statement at October's end, as the Federal Open Market Committee expressed more confidence in the U.S. economy than it had in September and indicated that it could raise rates in December. After the surprise decision in September not to raise rates, this vote of confidence signaled that the Fed did not consider recent weak data to be significant. For the first time in years, the prospect of a rate increase was greeted by a market rally instead of a sell-off-a very positive development.
When the Fed raises rates, two things happen to stocks. First, the present value of earnings, discounted by the increasing interest rate, decreases. In a market dominated by interest rate factors, a rate rise means a market decline. The second thing that an interest rate increase can signal, however, is a faster-growing economy, which means faster sales and faster earnings growth. In a market that trades on earnings rather than interest rates, rate increases should, up to a point, signal a better market (in addition to price increases). The rally on the Fed's announcement seems to suggest that U.S. markets are starting to trade on fundamentals rather than interest rates-and that, too, is a very positive sign.
Halloween treats, not tricks
October has historically been a volatile month, but this year we got a powerful move up rather than down. Despite the worries as we entered the month-and the run of tepid U.S. data during it-markets responded to the better-than-expected corporate results and gradual economic improvement in the rest of the world.
Markets are inherently risky, so the strong gains in October, after the declines in the third quarter, should remind us that we won't always be so lucky. Risks remain around the globe, and the beneficial trends from which we now benefit won't always be there. It is important to stay focused on the long term and maintain a diversified portfolio that can ride out any turbulence in the short and medium terms.
The continuing U.S. recovery has laid the foundation for continued profits for U.S. businesses, and economic growth has historically tended to lead to higher market valuations. This confluence of positive factors suggests that future results, in the long run, should be positive for investors and that a long-term perspective continues to be the correct one.
Authored by Brad McMillan, senior vice president, chief investment officer at Commonwealth Financial Network.
All information according to Bloomberg, unless stated otherwise.
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