By E. Dryden Pence III, CPM®, AIF®, LPL Registered Principal, CIO Pence Wealth Management Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC. | Volume 2, Issue 4 (April 2014) Editor’s Note: This is one in a series of periodic market watch articles provided by E. Dryden Pence III, whose investment advisory firm Pence Wealth Management has been recognized as one of the top in the United States by Barron’s, Forbes and The London Financial Times. Bottom Line Up Front We are positive for 2014. We think the economy will continue to improve consistently. We believe the market is a…
The End of the Great Migration Into Bonds (Part 3 of 3)
Allocation Risk Budgeting for Equities By Jeffrey Dunham, Financial Advisor | Volume 2, Issue 3 (March 2014) This is the final installment of The End of the Great Migration into BondsSM article series. In January, we began the series with a discussion about a turnkey marketing campaign that provides FINRA-reviewed sales and marketing tools designed to allow financial advisors to focus on the vast amount of assets currently held in bonds. Last month, we examined “Allocation Risk Budgeting for Income”, which is a way to show your prospects and referrals how you might manage the risk they are taking within their fixed income…
The End of the Great Migration Into Bonds (Part 2 of 3)
Allocation Risk Budgeting for Income Overview By Jeffrey Dunham, Financial Advisor | Volume 2, Issue 2 (February 2014) As The End of the Great Migration into BondsSM continues, fixed income investors may experience detrimental consequences to their bond investments as interest rates rise. For investors who depend on the distributions from their bond funds, the challenge will be maintaining a proper level of income while providing relative protection of their principal. In last month’s issue of The Ultimate Estate Planner’s newsletter, we introduced you to a turnkey marketing campaign designed to allow financial advisors to focus on the vast assets currently held in…
The End of the Great Migration Into Bonds (Part 1 of 3)
A Once in 30-Year Opportunity to Build Your Practice in 2014 By Jeffrey Dunham, Financial Advisor | Volume 2, Issue 1 (January 2014) As The End of the Great Migration into BondsSM continues, it is presenting financial advisors with a unique opportunity to build their practice while simultaneously helping investors avoid a destruction of wealth that we feel may rival the 2008/2009 financial crisis. This opportunity exists because of two very simple yet crucial facts. The recognition of these facts can be the difference between a financial advisor having an average year or making 2014 a career year. First, is the vast…
Phil Kavesh to Present at the AVIVA 2013 Sales Expo in Arizona
Today, our President, Philip J. Kavesh, is in Arizona for AVIVA USA’s Sales Expo 2013 speaking on the topic, “The Top 22 Overlooked Uses of Life Insurance in 2013” before a select group of AVIVA’s finest brokers and agents. According to Phil, they’ve made some pretty big announcements here and there are some exciting things coming to AVIVA in 2014! Thanks again AVIVA for this wonderful opportunity to help educate your agents!
PLR Opens Door to Post-Death Exchanges of Non-Qualified Annuities Tax-Free!
By Robert S. Keebler, CPA, MST, AEP (Distinguished) & Michael E. Kitces, MSFS, MTAX, CFP®, CLU, ChFC, RHU, REBC, CASL IRC § 1035 generally allows taxpayers to make a tax-free exchange of one annuity for another better suited to the taxpayer’s needs. Until recently, however, this benefit was not available to taxpayers who inherited non-qualified annuities. Such taxpayers were stuck with the annuity selected by the decedent no matter how unfavorable it may have been for them. Recently issued PLR 201330016 now gives a green light to tax-free exchanges of such annuities, however, provided that certain requirements are satisfied. This…
What’s Wrong with Variable Annuities?
By Richard Gilman, CFP® After the stock market crash in 2000 and “Great Recession”, investors have justifiably become more concerned about their retirement. Many people no longer trust Wall Street. Having suffered through dramatic market swings, they are unwilling to keep putting their savings at risk. They worry about exploding health care costs and outliving their money. They know they need to do something — but what? Annuities of all kinds are being positioned by insurers, the government, the media and financial planning community as part of the solution. And annuities may very well be one part of the solution. …
Is Financial Planning Different for Women?
By Michelle A. Fait, MBA, CFP®, EA With the financial advisory industry turning its focus towards the 51% of the population that is female, many of whom will be directly responsible for an increasingly large portion of the nation’s personal wealth, there has been much discussion about the financial planning needs of women. There are some obvious differences in demographics, including women’s statistically longer average life spans, the greater likelihood that they will take time out of the work force for care-giving (of children or parents or both), and that they will on average be paid less than men for…
How Will Health Care Ruling Impact Advisors?
The Supreme Court’s decision to uphold the health care overhaul could have a broad impact on wealthy investors’ wallets with a new 3.8% increase on investment income. The increase, which is one of the bill’s funding mechanisms, is set to take effect in January. “The top rate on long-term gains is 15%. Next year, we know it’s going to go up by at least 3.8%,” says Tim Steffen, director of financial planning at Robert W. Baird & Co. “For higher income individuals and couples, their investments just became more expensive.” That new rate, according to Steffen, will be imposed on…
Do You Have What Baby Boomer Investors Are Looking For?
Reposted with permission from The Trust Advisor. Posted by Joe Murphy, Contributor – on January 30th, 2012 Advisors take note: there are 77.6 million Baby Boomers and another one turns 50 every 8.5 seconds. Clearly, the number of American investors approaching retirement is on the rise — and this is the biggest opportunity of all time for advisors who know how to meet their needs. For today, let’s leave the retirees out of the equation. I want to concentrate on the younger cohort of Baby Boomers who still have some time until retirement and are still very much in the…