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Navigating Your IRA through an Uncertain Economy

You are cordially invited to attend a complimentary dinner event at Ruth’s Chris Steakhouse in King of Prussia. This informational and entertaining event will be hosted on Monday, January 23, 2012 and Tuesday, January 31, 2012 at 4:30 pm by Jeffrey Bush, an Ed Slott Master Elite IRA Advisor. In addition, Ed Slott, who was named “America’s IRA Expert” by Mutual Funds Magazine, will appear through a series of pre-recorded videos throughout the presentation. Please join Informed Family as we discuss several recent changes in the laws governing IRA contributions, conversions and distributions, and other important information that you need to know about your retirement. Without the right information, you may be paying too much of your IRA, 401(k) and other retirement funds in taxes. This is an informational event only and no financial products will be sold. Please reserve your tickets, as seating is limited. If you wish to attend this special event please send an email to info@informedfamily.com, or call Informed Family at 610-630-4495 stating your name and the names of up to three guests who will be attending, along with the best number we can reach you. We look forward to seeing you there!

If you are retired or soon to be, and have an IRA, 401K and/ or 403b account, you don’t want to miss this event!

Now that you have moved past the initial shock of your quarterly brokerage statements, we would like to just take a brief moment to say: In times like these, no one—not your current financial advisor, your banker, or your hair stylist—has a monopoly on good ideas.

So when you’re considering an investment, or reviewing your current investments, let us give you a second opinion! There’s absolutely no cost or obligation. All you would need to bring is your statement(s) so we can see what we have to work with.

Taking great pride in our work, and keeping our clients’ best interests in mind, is the very foundation of our practice.

If this makes sense, please call us at 610-630-4495.

Knowledge is Power, and Informed Family wants to give you knowledge about proven strategies that may help you protect your assets and potentially save you thousands in needless taxes and missed opportunities. Also, learn the answers to frequently asked questions many retirees have during a market downturn. Come join Informed Family at the phenomenal Ruth’s Chris Steakhouse in King of Prussia for one of our complimentary, informational workshops intended for retirees and those nearing retirement. Informed Family will be hosting two workshops at Ruth’s Chris Steakhouse in October. The first workshop will be held on Tuesday, October 11th at 4:30pm, and the second will be held Thursday, October 20th at 4:30pm. This is an informational event only and no financial products will be sold. Please reserve your seat, because space is limited. If you wish to attend one of these special events please send an email to info@informedfamily.com, or call Informed Family at 610-630-4495 stating your name and the names of up to three guests that will be attending, along with the best number we can reach you. We look forward to seeing you there!

They may well be, and they may be looking for a big-picture view or just some more information to give them confidence in these times of market turbulence. I can be of help.

Throughout my years in the financial services industry, I have seen my share of market corrections and rebounds, and of both bull and bear market cycles. At moments like these, it may be a relief to hear from someone with long-term perspective and years of experience studying the markets.

Part of my mission is to offer guidance and objectivity. So if you, your family or your friends have any questions or concerns about what is going on with the financial markets right now, please feel free to pass along my contact information. They can reach me at (610) 630-4495 or e-mail me at jbush@informedfamily.com. I’m happy to discuss it with them.

Sincerely,

Jeffrey E. Bush, MBA, CLU, ChFC
Managing Partner

10 years have passed since the events of 9/11, and while in some ways it feels like a lifetime ago, the memory remains painfully fresh in my mind.

An attack on U.S. soil. The loss of nearly 3,000 lives. In the wake of these horrific events, we might have recoiled. But the people of this nation rallied - we were all New Yorkers that day. And in the decade that has followed, we’ve proven our strength, our courage and our resilience.

Let us never forget the events of 9/11.

This Patriot Day, let us remember the thousands of precious lives that were lost that fateful day, as well as the lives of those we’ve lost since then - the brave men and women of the armed forces who fight for us each and every day.

9/11 is a wound that may never fully heal - like the wound we sustained at Pearl Harbor.

But those wounds, though deep, make us stronger.

Sincerely,
Jeffrey E. Bush, MBA, CLU, ChFC
Managing Partner

Occasionally, our firm will have existing clients or potential clients ask us for quotes on various financial products. Most commonly, this is for life insurance or annuities. We always strive to provide these quotes in an accurate and thorough manner. However, it’s important for us to ask certain questions of those who request those quotes in order to make sure they get exactly what they want AND what they need.

We were recently interviewed about annuities, and we wanted to share that interview with you below. We discuss some of the items that go into the process of quote requests and understanding the importance of asking the right questions. We sincerely hope you find the audio below helpful.

CLICK HERE TO LISTEN NOW –>

Some bulls see great opportunities in this correction.

Presented by Jeffrey Bush

“The lower things go, the more I buy.” The legendary Warren Buffett said those words on August 9 in a chat with Fortune. Buffett is a buy-and-hold kind of guy, and even if you don’t buy into his approach, you have to admit stocks are cheap in the wake of the recent correction. For some investors, a downturn like this means picking up quality stocks at markdown prices, including dividend-paying stocks.1

Just how cheap are stocks in August? We have some interesting valuations out there. Just to give you some idea of where the broad market is at, the 12-month forward equity earnings yield of the MSCI World Index (according to Reuters) was just above 10% on August 12. This was the highest earnings yield since January 2009 – and more than five times the yield of the 10-year Treasury in mid-August.2

Domestically, Capital IQ data from August 12 shows that stocks in the S&P 500 are trading at a forward price-to-earnings ratio of around 12. Historically, the forward P-E ratio for the S&P 500 has averaged about 16. Judging by that yardstick, we have a buyer’s market right now.3

Returning to Buffett, the “oracle of Omaha” once famously said that you should “only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.” For many, the stock market is a long-term proposition. Taking a long view and sticking it out has had its merits, although the last decade has been challenging.4

When you were in college, where was the Dow trading at? Where is it now? For most people, the answer would be “notably higher”.

Have you noticed how oil prices have fallen? The ripple effect of this development also bodes well for equities. Oil settled at $85.38 a barrel on the NYMEX August 12. Compare that to the $100 oil of February. Oil price cuts imply a stronger U.S. economy – with better corporate profits, lower energy costs, and improved tax receipts.5

Could a QE3 come along? The Federal Reserve hasn’t indicated this, but don’t rule it out. Another monetary stimulus from the Fed would mean more cash, which could potentially mean more money directed into gold or equities.

Fed policy could be a factor in the market’s direction. On August 9, the Fed issued a statement pledging to keep the federal funds rate at near-zero levels through mid-2013.

Is the glass half-full or half-empty? Bears are arguing that we don’t have enough job creation in the economy (or buying pressure in the stock market) to drive stocks up. They also point out that the Dow dipped beneath its 50-day moving average and 200-day moving average during the choppy trading week of August 8-12.7

Bulls are countering these arguments by pointing to the relative strength index of the DJIA. On August 11, for example, the Dow’s RSI was at 26.6. A reading below 30 is interpreted as a signal that the market is oversold. The S&P 500’s RSI hit 16.5 on August 8, which was a 10-year low. They also think that Ben Bernanke’s approach will succeed – that is, that these sustained low interest rates will encourage businesses to borrow and expand, with gains in consumer income and consumer spending as byproducts. On top of that, many corporations are generating decent or better profits, and carrying much less debt than they did two or three years ago.7,8

Historically, markets have eventually rebounded – so these prices won’t last forever. Falling share prices could potentially translate to some long-term opportunities. Whether you simply practice dollar-cost averaging or something more hands-on, persistence and longevity can be good friends.

In recent weeks, Chicago Tribune columnist Gail MarksJarvis noted how quickly we came back from the 2007-09 bear market. A hypothetical investor with $10,000 in assets divided evenly among long-term Treasuries and an index fund mirroring the S&P 500 would have had but $7,700 by April 2009. By October 2010, the value of that portfolio would have grown 46.8% in 18 months to around $11,300. This shows that Wall Street has been capable of making rebounds in the recent past.9

This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.

Citations.
1 - finance.fortune.cnn.com/2011/08/11/warren-buffett-buy-stocks/ [8/11/11]
2 - reuters.com/article/2011/08/12/us-markets-global-weekahead-idUSTRE77B39D20110812 [8/12/09]
3 - google.com/hostednews/ap/article/ALeqM5jzRK3TF86yN06W1SofDFjPh8eudg?docId=77bfe0d2fbf547498af426d607e98515 [8/12/09]
4 - billionaires.forbes.com/quote/06lobtIfiO10y?q=Warren+Buffett [8/12/11]
5 - blogs.wsj.com/marketbeat/2011/08/12/data-points-energy-metals-511/ [8/12/11]
6 - online.wsj.com/article/BT-CO-20110809-716770.html [8/9/11]
7 - ibtimes.com/articles/196193/20110811/dow-jones-industrial-average-dow-djia-stocks-market-banks-financical-crisis.htm [8/11/11]
8 - bloomberg.com/news/2011-08-09/s-p-500-relative-strength-lowest-since-2001-technical-analysis.html [8/9/11]
9 - chicagotribune.com/business/yourmoney/ct-biz-0812-gail-20110812,0,2500613.column [8/12/11]
10 - montoyaregistry.com/Financial-Market.aspx?financial-market=an-introduction-to-the-stock-market&category=29 [8/14/11]

Meet Jeffrey Bush and Barry Waronker in this candid interview and find out what makes Informed Family Financial Services different from other financial services companies.

Click Here to listen to this personal interview now!

An estate plan changes as your life changes. While every change in your life does not require you to update your estate plan, it is important to think through the past year’s events and experiences to make sure that your estate plan will still take care of your family just as you planned.

Here is a checklist to get started:

1. Locate Your Estate Planning Documents. Check your fireproof safe, safety deposit box, or other location where you store valuable documents. Additionally, make sure that your Executor and Trustee know where your important legal documents are located.

2. Check Your Life Insurance, Homeowner and Umbrella Policies. Does your insurance coverage still reflect an amount that would be needed to support your family if something happens to you? Has any event occurred in the past year that would require you to modify your existing insurance coverage amounts?

3. Update the “Intangible” Legacy You Plan to Leave Your Family. Each year you should update your “intangible” legacy. Be sure to note family member milestones, words of wisdom you would like to pass along to your children and other family members, along with significant accomplishments. Many clients feel this is the most valuable part of their estate plan….so be sure to spend time on creating or updating your “intangible” legacy.

Call Informed Family today to schedule an appointment to discuss your estate planning.

Knowledge is Power, and Informed Family wants to give you knowledge about proven strategies that may help you protect your assets and potentially save you thousands in needless taxes and missed opportunities. Come join Informed Family at the phenomenal Ruth’s Chris Steakhouse in King of Prussia for one of our complimentary, informational workshops intended for retirees and those nearing retirement. Informed Family will be hosting two workshops at Ruth’s Chris Steakhouse in February. The first workshop will be held on Wednesday, February 9th at 4:30pm, and the second will be held Tuesday, February 22nd at 4:30pm. Reserve your seat fast because space is limited. If you wish to attend one of these events please send an email to info@informedfamily.com stating which night you wish to attend, the names of the guests that will be attending, along with the best number we can reach you. We look forward to seeing you there.