Hopefully everyone is enjoying our nice fall weather and all the beautiful fall colors North Carolina has to offer. I think this is my favorite time of year. Now, if it could just turn right back to spring and summer, then I'd be really happy! I guess that comes from growing up in Wisconsin and tolerating all those terrible winters! We've been really busy at the office this past month. Our workshops, radio show, and Lake Norman Magazine articles have been keeping us busy. We're grateful to the folks that put their trust in us, and our extended family is growing. Kelly is studying to become a Registered Investment Advisor, to go along with her life insurance, Medicare & Long Term Care licenses. Just like the old man! So, what's new you might ask? We're expanding our office in Mooresville. We've leased the space next to us to double our current office space. We'll be adding a kitchen area, conference room, another office, and some storage. We'll be going through some construction in the next couple of months, but hopefully we'll be done by the start of the New Year. We have become certified advisors for the Josh Mellberg Financial network. JDM Financial is one of America's premier annuity & retirement planning consumer educators. You can check it out at www.seniorannuityalert.com for free videos and consumer reports. To skip a few steps, you can get the information straight from us for no charge. Just get in touch and let us know what you're interested in learning about. I'm really excited and blessed to be part of such a great organization that serves retirees. We learn something new that can benefit you every day! I encourage you to check it out. Enjoy this month's articles and updates. Remember to listen to us on WSIC 1400AM Saturday Mornings from 10:00-10:30, or go to our website for uploaded shows. Also, don't forget all of our Lake Norman Magazine articles are uploaded on our website also. Have a great thanksgiving, and enjoy your family! To all of our clients, we are truly appreciative of the faith and trust you put in us. We will continue to be passionate in the pursuit of our clients' dreams. Until next month,  James D. Stillman
Special Note for Clients: Over the last year, you may have been receiving weekly emails, monthly printed materials, and birthday cards from JDS Wealth Management. We have, as of this month, discontinued working with the program that distributed these materials on our behalf. We have been coming up with our own system to stay in touch with you, in addition to our monthly e-newsletters, and we aim to get things ramped back up starting in January. If you have any comments about the materials you have been receiving over the last year or have recommendations for how you would like us to stay in contact with you throughout the upcoming year, please feel free to let us know. We would love your feedback.
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Out of Control Government Spending,
and What it Means to You
Lake Norman Magazine, November 2013
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On Sept. 17, 2013 the CBO (Congressional Budget Office) came out with a report telling the world our government spending is leading us down an unsustainable path. It's quite obvious that many Americans don't even know who the CBO is, let alone read or listen to what they say.
Here are a few important points from the article that I believe everyone needs to know.
- The nonpartisan CBO said that the U.S. national debt is now 73% of gross domestic product, the highest in history except for a period during World War ll. The figure is twice the percentage it was at the end of 2007.
- It warned that under current law, growing future deficits will push the debt to 100% of GDP 25 years from now. Under another scenario that envisions changes being made to some laws including removing the so-called automatic budget cuts known as "sequesters", the debt would be even higher at nearly 190% of GDP by 2038.
- Social Security, Medicare, and Medicaid are on a path of costing 14% of GDP by 2038. That represents $1 out of every $7 made throughout the entire economy!
Basically, the CBO is telling our government they need to stop fooling around and make significant changes to the so-called entitlement programs or they will collapse our economy. Knowing how well our elected officials get along these days, I'm betting they keep arguing like little children until the whole darn thing blows up in our face. That's not good news for any of us.
Read more...
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Kicking The Can Down The Road
GFPC Thought for the Week (274)
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*Crossing the debt ceiling has been averted, and the government shutdown is over... For now.
*Now that our government has "kicked the can down the road" until February, we expect the media will shift its focus back to the possibility of tapering Quantitative Easing (QE) in December.
*Despite the media's love for the short-term drama, we are far more interested in third quarter earnings and discovering the companies who can continue to grow.
It Comes as No Surprise
Well, all of the concern surrounding the government shutdown appears to be over. Government workers just enjoyed a two-week paid vacation (they will be compensated for their time away from work), and we avoid a default on our debt (despite a near impossibility of doing so anyway).
Read More...
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A Tale of Two Cities
GFPC Thought for the Week (275)
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*Consumer spending drives 70% of our economy, yet it's shaping up to be a "Tale of Two Cities."
*High-income earners are experiencing several tailwinds as home values and equity portfolios continue to rise, while low-income earners still face material headwinds.
*Given high earners' disproportionate spending level, we believe that consumer spending will be a net positive for our economy over the coming years.
A Bifurcated Consumer
Consumers are currently living a "Tale of Two Cities" where the high earners and the low earners are being impacted quite differently from the current economic climate. The confidence level of both matters to our economic well being, and understanding where each stands can offer insight in where to invest for the future.
For example, during times of economic growth when consumer confidence is high, we look for investment opportunities in highly discretionary categories such as travel, jewelry, and home improvement.
On the other hand, during times of economic contraction when consumer confidence is low, we look for investment opportunities in less discretionary categories such as staples, discount shops, and quick service restaurants.
As a result, let's walk through a basic analysis of the current consumer environment and then derive an investment conclusion based upon this analysis. We will begin our analysis by comparing the "headwinds" to the "tailwinds" for both consumer groups.
Read more...
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All content is intended for informational purposes only. Any guarantees are for insured products only and are dependent on the claims paying abilities of the insurer. All investments carry some risk and you should be advised by your personal financial advidor before implementing any strategies discussed, as they are not suitable for everyone.
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