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Articles of Interest

June 27th 2016

Market News 

Market Volatility Following Britain’s Vote to Exit EU

Despite polls predicting British citizens would vote to remain in the European Union this past Thursday, they voted to end 43 years of EU membership by a narrow margin of 52 to 48 percent.1 Wall Street’s immediate, negative reaction to this historic event wasn’t surprising. Investors typically don’t respond favorably to significant change or uncertainty.

While the long-term effects of the vote remain to be seen, an article in Friday’s New York Times said few expect Britain’s departure to set off a long-term financial crisis like the one that began when investment banking giant Lehman Brothers collapsed in 2008.2 The United Kingdom is still part of the EU. It has two years to negotiate the terms of its exit from the time it notifies the EU it intends to leave. If Britain strongly disapproves of the deal, it could seek a second vote about leaving and potentially reverse its decision. If the deal stands, trade and financial agreements would likely be phased out rather than terminated.

Britain may face a recession. But the effect of such a decline on other nations is difficult to predict. Although Britain’s economy is ranked fifth globally, it accounts for less than 4 percent of total global GDP.3 The impact on international corporations also remains to be seen. To discourage such departures, Continental Europe is warning of ramifications on British exports. But it should be noted Continental companies will still want to trade with Britain’s large, wealthy market.

The referendum’s outcome may reflect a populist movement toward more protectionism and less global integration. How Britain fares in the coming months and years may influence whether this movement grows. On the flip side, Scotland’s leaders have warned of a potential renewed bid for independence so it can remain with the EU.

When the markets react emotionally, it’s imperative to think rationally. It may be a good time to review your portfolio, assess your current situation and evaluate your risk level. As always, I am monitoring the market conditions. Please feel free to contact me if you have concerns you want to discuss.

1USA Today, June 24, 2016, www.usatoday.com/story/news/world/2016/06/24/britainvotesleaveeuropeanunion/86324662/

2New York Times, June 23, 2016, www.nytimes.com/2016/06/25/business/international/brexit-financial-economic-impact-leave.html?_r=1

3The Economist, June 24, 2016, www.economist.com/news/finance-and-economics/21701292-uncertainty-abounds-expect-global-chilling-effect-investment-why-brexit  

In light of the Brexit vote, the article originally scheduled, “Protecting Aging Parents from Fraud,” has been rescheduled to run next week.

FINANCIAL FACTS

Uncle Sam Spending — During fiscal year 2015, mandatory spending by the U.S. government represented 68 percent of total outlays, while discretionary spending was 32 percent of the total. There is no annual spending cap on mandatory spending. Discretionary spending is capped by Congress each year (source: CBO, BTN Research).

Stocks and Bonds — The size of the U.S. bond market (including treasury, municipal, corporate, mortgage and asset-backed debt) was $40.5 trillion as of March 31, 2016, 71 percent larger than the $23.7 trillion U.S. stock market as of the same date (source: Securities Industry and Financial Markets Association, Wilshire, BTN Research).

Is This the New Norm? — Over the 25 years from 1991-2015, the average yield on the 10-year Treasury note was 4.7 percent.  As of the close of trading on Friday, June 17, the yield on the 10-year Treasury note was 1.62 percent (source: Treasury Department, BTN Research).

THE MARKETS

Wall Street saw its worst day in 10 months as investors appeared caught off guard by Britain’s vote to leave the European Union on Thursday. For the week, the Dow fell 1.55 percent to close at 17,399.86. The S&P lost 1.62 percent to finish at 2,037.30, and the NASDAQ dropped 1.92 percent, to end the week at 4,707.98.

Returns Through 06/24/16

1 Week

YTD

1 Year

3 Year

5 Year

Dow Jones Industrials (TR)

-1.55

1.22

-0.54

8.51

10.63

NASDAQ Composite (PR)

-1.92

-5.98

-8.09

12.34

12.16

S&P 500 (TR)

-1.62

0.76

-1.23

11.33

12.34

Barclays US Agg Bond (TR)

0.19

4.74

5.57

4.08

3.46

MSCI EAFE (TR)

-1.73

-6.93

-15.73

2.02

2.05

 

Source: Morningstar.com. *Past performance is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Three- and five-year returns are annualized. The Dow Jones Industrials, MSCI EAFE, Barclays US Agg Bond and S&P, excluding “1 Week” returns, are based on total return, which is a reflection of return to an investor by reinvesting dividends after the deduction of withholding tax. The NASDAQ is based on price return, which is the capital appreciation of the portfolio, excluding income generated by the assets in the portfolio in the form of interest and dividends. (TR) indicates total return. (PR) indicates price return. MSCI EAFE returns stated in U.S. dollars.

* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Morgan Stanley Capital International Europe, Australia and Far East Index (MSCI EAFE Index) is a widely recognized benchmark of non-U.S. stock markets. It is an unmanaged index composed of a sample of companies representative of the market structure of 20 European and Pacific Basin countries and includes reinvestment of all dividends. Barclays Capital Aggregate Bond Index is an unmanaged index comprised of U.S. investment-grade, fixed-rate bond market securities, including government, government agency, corporate and mortgage-backed securities between one and 10 years. Written by Securities America. SAI# 1533915.1

Securities offered through Securities America, Inc. Member FINRA/SIPC.

Advisory Services offered through Securities America Advisors.

Roxanne Waterman, Investment Advisor Representative.

Securities America and its representatives do not provide tax or legal advice.

Please consult the appropriate professional regarding your personal situation.

Waterman & Associates Inc. and the Securities America companies are not affiliated.

 

June 21st 2016

Market News from June 20th 2016

June Is Alzheimer’s & Brain Awareness Month

Alzheimer’s is one of our nation’s costliest diseases. According to the Alzheimer’s Association, total health care, long-term care and hospice payments related to Alzheimer’s disease and other dementias will total $236 billion in 2016. Sadly, afflicted individuals without adequate long-term care insurance frequently lose most, if not all, of their financial assets.

But even dementias’ beginning stages and mild cognitive impairment experienced by healthy seniors can put personal wealth at risk. That’s why it’s important to begin having conversations about your aging family member’s finances well before you see signs of mental decline. Obviously, this has to be done with great sensitivity and respect. Make sure they know you don’t want to take control, but you would like to ensure they are protected and their wishes honored in the years to come.

During ongoing dialogs, try to learn what you’ll need to know if it becomes necessary to manage their finances: the names and contact information of their financial planner, accountant and attorney; financial records and where they are kept; their monthly income and the sources; insurance policies; the location of financial accounts; regular bills and how they are paid; and log-in information for online accounts.

Suggest meeting jointly with their financial advisor and/or other family members. Gain an understanding of their priorities. Ask which assets are most important to them, which causes they want to support and whether their will is up-to-date.

Propose having legal documents created that will allow you or another family member to make decisions if your loved one becomes unable to. This can include: a health care power of attorney (POA) or a more limited living will, either a limited or durable power of attorney for finances, an authorization to disclose account information and a form authorizing a financial institution to contact you if concerns arise about their ability to manage finances. Not having these documents when they’re needed can make helping your elderly relative considerably more difficult. For example, without a POA, you may need to go to court to attain guardianship of your family member to access accounts on their behalf.

Contact our office if you would like more information about protecting your loved one or help creating a plan to care for them. Next week’s newsletter will discuss ways to protect a vulnerable parent from fraud.

FINANCIAL FACT

Double Plus — Government outlays for Medicare have increased 9.8 percent annually over the past 40 fiscal years, rising from $13 billion (1975) to $546 billion (2015). Inflation, as measured by the Consumer Price Index, has increased 3.7 percent annually over the same 40-year period (source: OMB, Department of Labor, BTN Research).

A Decade Away — America’s total public debt is projected to be 85.6 percent of GDP in 2026 or 10 years from now (source: Congressional Budget Office, BTN Research).

Sounds More Like Deflation — The annual inflation target for the 19-nation Eurozone is 2 percent. Actual year-over-year inflation, however, was negative 0.2 percent (i.e., deflation) as of April 30, 2016, and negative 0.1 percent as of May 31, 2016 (source: Eurostat, BTN Research).

THE MARKETS

U.S. stocks dropped Friday. Britain’s upcoming vote on whether to leave the European Union weighed on investors, while Apple’s falling shares dragged the major indexes down. For the week, the Dow fell 1.00 percent to close at 17,675.16. The S&P lost 1.12 percent to finish at 2,071.22, and the NASDAQ dropped 1.92 percent, to end the week at 4,800.34.

Returns Through 06/17/16

1 Week

YTD

1 Year

3 Year

5 Year

Dow Jones Industrials (TR)

-1.00

2.82

1.21

7.82

10.84

NASDAQ Composite (PR)

-1.92

-4.14

-5.22

11.62

12.90

S&P 500 (TR)

-1.12

2.42

0.82

10.42

12.66

Barclays US Agg Bond (TR)

0.05

4.53

5.14

3.34

3.49

MSCI EAFE (TR)

-2.76

-5.29

-11.78

0.39

2.25

Source: Morningstar.com. *Past performance is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Three- and five-year returns are annualized. The Dow Jones Industrials, MSCI EAFE, Barclays US Agg Bond and S&P, excluding “1 Week” returns, are based on total return, which is a reflection of return to an investor by reinvesting dividends after the deduction of withholding tax. The NASDAQ is based on price return, which is the capital appreciation of the portfolio, excluding income generated by the assets in the portfolio in the form of interest and dividends. (TR) indicates total return. (PR) indicates price return. MSCI EAFE returns stated in U.S. dollars.

* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Morgan Stanley Capital International Europe, Australia and Far East Index (MSCI EAFE Index) is a widely recognized benchmark of non-U.S. stock markets. It is an unmanaged index composed of a sample of companies representative of the market structure of 20 European and Pacific Basin countries and includes reinvestment of all dividends. Barclays Capital Aggregate Bond Index is an unmanaged index comprised of U.S. investment-grade, fixed-rate bond market securities, including government, government agency, corporate and mortgage-backed securities between one and 10 years. Written by Securities America. SAI# 1528727.1

Securities offered through Securities America, Inc. Member FINRA/SIPC.

Advisory Services offered through Securities America Advisors.

Roxanne Waterman, Investment Advisor Representative.

Securities America and its representatives do not provide tax or legal advice.

Please consult the appropriate professional regarding your personal situation.

Waterman & Associates Inc. and the Securities America companies are not affiliated.

 

 

June 17th 2016

Market News From May 31st, 2016  

Growing Your Retirement Funds Faster

 

Recent market volatility may have left you staring at your 401(k) in dismay. If you’re not seeing the results you want, there are ways to help grow your 401(k) faster.

Of course, the most obvious solution would be to contribute more. If you get a raise – raise your contribution amount. Hopefully, you’re already taking advantage of “free money” and contributing the full amount your employer matches, but you can always go above that amount as well. Apply any windfall money you come across, including work bonuses, to your retirement accounts. And if you leave your job, don’t leave your 401(k) behind. Rollover your 401(k), and you can avoid many administration fees or other expenses.

Growing your retirement nest egg quickly usually requires much more than just funding your 401(k). Opening a Roth IRA will allow you to build potentially tax-free savings – up to $6,500 annually if you’re 50 or over – in addition to your tax-deferred employer plan.

A Health Savings Account (HSA) is another vehicle that can be used to increase your retirement savings. HSAs offer great tax advantages, with no taxes levied on contributions, earnings and withdrawals for qualified health care purchases. Even if you’re relatively healthy, you’ll still need funding for even basic or preventative health care along the way. And any funds left in your HSA after age 65 can then be used for nonmedical expenses as well.

As with all retirement accounts, it’s best to wait until retirement to tap into your HSA. That way – should you be forced to retire earlier than expected – you’ll still have tax-free funding available to cover health care expenses.

Funding your retirement goes well beyond your employer-sponsored 401(k) account. By looking at other tax-friendly savings vehicles, you can potentially save for retirement quicker and possibly save even more overall. To review your retirement savings plan and ensure you’re taking advantage of all the savings vehicles available to you, contact our office today.

FINANCIAL FACTS

How We Spend — Internet and catalog sales (aka “non-store retailers”) totaled $45.2 billion in April 2016, an increase of 10.2 percent over sales from April 2015. Overall retail sales totaled $453.4 billion in April 2016, an increase of 3 percent over sales from April 2015. Thus, internet sales are growing more than three times as fast as total sales but represent just 10 percent of total retail sales nationwide (source: Commerce Department, BTN Research).

Many Years, No Change — The Social Security payroll tax rate paid by employees has been 6.2 percent since 1990 except for a 2 percent reduction in the rate during the two years of 2011-12 (source: Social Security Administration, BTN Research).

The Last Year — The S&P 500 achieved its all-time closing high on May 21, 2015 (i.e., 1 year ago). In the 12 months since peaking at 2,131, the S&P 500 has fallen 1.6 percent on a total return basis (source: BTN Research).

THE MARKETS

Stocks rose Friday after the U.S. Federal Reserve suggested an upcoming interest-rate hike, closing Wall Street at its strongest week since March. Markets were closed Monday in observation of Memorial Day. For the week, the Dow rose 2.15 percent to close at 17,873.22. The S&P gained 2.32 percent to finish at 2,099.06, and the NASDAQ climbed 3.44 percent to end the week at 4,933.50.

Returns Through 05/27/16

1 Week

YTD

1 Year

3 Year

5 Year

Dow Jones Industrials (TR)

2.15

3.81

1.06

7.93

10.29

NASDAQ Composite (PR)

3.44

-1.48

-3.39

12.56

12.02

S&P 500 (TR)

2.32

3.67

1.06

10.68

11.92

Barclays US Agg Bond (TR)

0.15

3.40

3.14

2.66

3.35

MSCI EAFE (TR)

2.21

-1.06

-10.40

1.59

2.42

 

Source: Morningstar.com. *Past performance is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Three- and five-year returns are annualized. The Dow Jones Industrials, MSCI EAFE, Barclays US Agg Bond and S&P, excluding “1 Week” returns, are based on total return, which is a reflection of return to an investor by reinvesting dividends after the deduction of withholding tax. The NASDAQ is based on price return, which is the capital appreciation of the portfolio, excluding income generated by the assets in the portfolio in the form of interest and dividends. (TR) indicates total return. (PR) indicates price return. MSCI EAFE returns stated in U.S. dollars.

* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Morgan Stanley Capital International Europe, Australia and Far East Index (MSCI EAFE Index) is a widely recognized benchmark of non-U.S. stock markets. It is an unmanaged index composed of a sample of companies representative of the market structure of 20 European and Pacific Basin countries and includes reinvestment of all dividends. Barclays Capital Aggregate Bond Index is an unmanaged index comprised of U.S. investment-grade, fixed-rate bond market securities, including government, government agency, corporate and mortgage-backed securities between one and 10 years. Written by Securities America. SAI#1513419.1

Securities offered through Securities America, Inc. Member FINRA/SIPC.

Advisory Services offered through Securities America Advisors.

Roxanne Waterman, Investment Advisor Representative.

Securities America and its representatives do not provide tax or legal advice.

Please consult the appropriate professional regarding your personal situation.

Waterman & Associates Inc. and the Securities America companies are not affiliated.

 

 

 

April 5th 2016 Market News! 

 

The Markets

Trading volume was light leading into the holiday weekend. Stocks ended five weeks of gains Thursday after the Federal Reserve raised expectations of additional rate hikes, but the three major indexes pared losses by the end of the session to close fairly flat. For the week, the Dow rose 0.20 percent to close at 17,515.73. The S&P fell 0.21 percent to finish at 2,035.94, and the NASDAQ lost 0.03 percent to end the week at 4,773.50.

 

Returns Through 03/24/16

1 Week

YTD

1 Year

3 Year

5 Year

Dow Jones Industrials (TR)

0.20

1.22

-0.20

9.11

10.33

NASDAQ Composite (PR)

-0.03

-4.67

-4.43

13.73

11.77

S&P 500 (TR)

-0.21

0.14

-0.52

11.68

11.59

Barclays US Agg Bond (TR)

0.14

2.39

1.20

2.34

3.62

MSCI EAFE (TR)

-2.57

-5.02

-12.15

1.94

2.12

 

Source: Morningstar.com. *Past performance is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Three- and five-year returns are annualized. The Dow Jones Industrials, MSCI EAFE, Barclays US Agg Bond and S&P, excluding “1 Week” returns, are based on total return, which is a reflection of return to an investor by reinvesting dividends after the deduction of withholding tax. The NASDAQ is based on price return, which is the capital appreciation of the portfolio, excluding income generated by the assets in the portfolio in the form of interest and dividends. (TR) indicates total return. (PR) indicates price return. MSCI EAFE returns stated in U.S. dollars.

 

The National Debt — The total debt of the U.S. government as of March 15 was $19.16 trillion, consisting of $13.84 trillion of debt held by the public and another $5.32 trillion of intergovernmental debt (source: Treasury Department, BTN Research).

 

Few Receive a Pension — Only 29 percent of American seniors (defined as people at least age 65) are receiving a monthly pension benefit from a career in either the public or private sector. The pension benefits counted in this survey are separate from Social Security retirement benefits (source: Economic Policy Institute, BTN Research).

 

Lay Down Rigs — The total oil and gas rig count in the United States (both offshore and on land) was 480 as of Friday, March 11, down 31 percent YTD (from 698 as of Dec. 31, 2015). The 480 operating rigs is the lowest number recorded in the 21st century in the United States (i.e., since Jan. 1, 2001) (source: Baker Hughes, BTN Research).

WEEKLY FOCUS – Avoid These Medicare Mistakes

If you’re a newcomer to the complex Medicare system, or will be soon, it’s wise to research potential options and pitfalls to prevent future regrets. As a starting point, here are a few mistakes to avoid: 

Missing Part B deadlines. If you’re already receiving Social Security benefits at 65, you’ll automatically be enrolled in Part A (hospital insurance) and Part B (doctors’ services, outpatient care and medical equipment). Otherwise, you must apply. Fail to sign up for Part B during the seven months surrounding your birthday, and you risk incurring a late penalty surcharge on all your future premiums. You can delay enrolling only if you have health coverage from your or your spouse’s employer, and the company employs 20 or more workers. But if you do, make sure you enroll in Part B within eight months of leaving the company.

Not enrolling in Medigap promptly. It’s also wise to purchase a Medigap supplemental policy within six months of enrolling in Part B. Medigap includes 10 standardized, private insurance plans that cover some or most out-of-pocket expenses. Enrolling within that window restricts Medigap insurers from denying coverage or charging higher premiums due to current health or pre-existing medical conditions. Choose your plan carefully because those protections are not extended if you try to switch later.

Not signing up for Part D. If you aren’t on any medications, it may be tempting not to pay monthly premiums for this prescription plan. But developing one health problem could cause you to regret that decision. Once your initial enrollment period has passed, you can sign up only during the annual open enrollment for Part D, which runs from Oct. 15 to Dec. 7.

Not comparing Part D plans annually. Part D plans vary in the drugs they cover and the copays they charge. Use the Plan Finder program on Medicare’s website to compare plans. And once you’ve signed up, don’t put your Part D on autopilot. Watch for premium increases and changes in coverage.

Not understanding Medicare Advantage plans. If you’re considering a Medicare Advantage plan in lieu of Medicare Parts A, B and D, look beyond lower premiums and compare deductibles, copayments and out-of-pocket costs. Bear in mind these plans may have more restrictions. And be sure to compare star ratings provided at Medicare.gov.

If you need help determining how health care costs may impact your retirement, please call our office.

* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Morgan Stanley Capital International Europe, Australia and Far East Index (MSCI EAFE Index) is a widely recognized benchmark of non-U.S. stock markets. It is an unmanaged index composed of a sample of companies representative of the market structure of 20 European and Pacific Basin countries and includes reinvestment of all dividends. Barclays Capital Aggregate Bond Index is an unmanaged index comprised of U.S. investment-grade, fixed-rate bond market securities, including government, government agency, corporate and mortgage-backed securities.  between one and 10 years. Written by Securities America SAI# 1454641.1

A Few Steps Behind – A recent survey by MetLife called the “Retirement Readiness Index” found that more than half of respondents (age 55-64) are behind in taking recommended steps toward retirement, and one-quarter said they were “significantly behind.” Thirteen percent said they had no retirement goals and 7 percent admitted they haven't started saving (Source: MetLife, Boomer Market Advisor).

Slower Rise – The cost of in-home care is rising at a slower pace than the cost of care provided in a nursing home or assisted living facility, according to a Genworth Financial study. In-home care expenses have increased 1.7 percent in the past five years, while assisted living costs have risen 6.7 percent and nursing home private rooms have risen 4.5 percent (Source: Genworth, Boomer Market Advisor).

Anti-Scam Tips for Surviving Spouses -- Portland, West Linn, Oregon City, Clackamas, Beaverton and other local newspaper obituaries provide a service in notifying a large number of people in a short period of time about the death of a community member. Unfortunately, they also provide a list of potential victims to scam artists and thieves looking for emotionally vulnerable and, during memorial services, physically absent targets. A few simple guidelines can help you or your loved one avoid most of the common scams.

The most immediate vulnerability will be an empty house. Through an obituary, a thief can ascertain when the family will be away, and with friends and relatives coming and going, neighbors may assume the person going in while the family is gone has permission to do so. Ask a friend or neighbor to house sit – not just watch from next door – during visitations and services. (This rule also works well for weddings and anniversary parties that have been announced in the newspaper.)

Treat anything from an unknown party with suspicion. Invoices, calls regarding orders for products or services, investment opportunities and claims for money owed can all be scams looking to part distracted grieving survivors with their money. Pay those bills you know to be legitimate – mortgage, utilities, credit cards, car payments. Set everything else aside. If you don't have caller ID on your phone, consider getting it so you know before you answer who is on the line. And remember that companies that pressure you to make decisions or send money during a difficult time probably don't have good reasons for doing so.

Consider a checks-and-balances approach to decision making, especially regarding finances. Ask a family member, friend or trusted advisor such as an accountant, attorney or financial professional to review invoices and other claims before you send money. You will still have control of your money, and you'll have a second opinion from someone you trust.

Surviving spouses generally fall into two groups – those who believe they have plenty of money and those afraid they don't have enough. Waterman & Associates Inc/Securities America can work with attorneys and accountants to help review the surviving spouse's finances, including any lump sum payments from life insurance or a 401(k). Please contact our office if you or a loved one needs financial assistance during your bereavement. 

 The Markets -- update coming...
 

NEED CASH FLOW?

Distributions taken from IRAs before age 59 1/2 are generally subject to a 10% early withdrawal penalty tax in addition to regular income tax. Exceptions to this penalty tax include distributions due to disability, death, certain medical expenses, and certain other specified events. Another exception to the 10% penalty tax includes taking distributions in the form of Substantially Equal Periodic Payments (SEPPs).To take a series of SEPPs from an IRA without penalty, distributions must be taken each year for at least five years or until age 59 1/2, whichever is longer.  Section 72(t) of the Internal Revenue Code allows for a client to receive Substantially Equal Periodic Payments ("SEPP") also referred to as 72(t) Distributions based on their life expectancy in order to avoid a 10% penalty tax on amounts withdrawn before age 59 1/2.  
 

 

DEFINITIONS in POWER OF ATTORNEY
Power of Attorney (“POA”):
A legal document describing an agreement whereby an individual, referred to as principal, appoints another individual as agent and confers authority to perform certain acts on behalf of the principal. The agent is also referred to as “Attorney in Fact.” The document establishing the Power of Attorney is also referred to as a POA. It is important to note that, by operation of law, the authority of an Attorney in Fact pursuant to a Power of Attorney terminates upon the death of the principal.
Principal:
A natural person who designates, in writing, another person as his/her Attorney in Fact. The principal is the account owner (and should not be confused with the Securities America Supervisory Principal). 
Attorney in Fact:
A person authorized by a principal to act as his/her agent either for some particular purpose (or to undertake a specific act) for the transaction of business in general or to conduct legal and financial affairs on behalf of the principal.
Alternate (or Successor) Attorney in Fact:
The individual designated as the principal's agent pursuant to a Power of Attorney document in the event another Attorney in Fact is unable or unwilling to act as Attorney in Fact.
Durable Power of Attorney:
Durable power of attorney is one that remains effective in the event the principal has become mentally incapacitated or disabled.
Springing (or Conditional) Power of Attorney:
A Power of Attorney that becomes effective upon the occurrence of an event or condition, typically the incapacity or disability of the principal. A springing Power of Attorney will usually require some supplemental documentation to evidence that the occurrence or condition has been satisfied and the document has become effective.
 
WHAT WILL BE YOUR CHILD'S ADVANTAGE?

“Education…is the great equalizer of the conditions of men, the balance wheel of society.” – Horace Mann, in his report as Secretary of the Massachusetts Board of Education in 1848
In 2005, the average full-time worker in the U.S. with a 4-year college degree earned $50,900 per year, 62 percent more than the average full-time worker with only a high school diploma.* If you would like more information about funding your child's or grandchild's college education, call <> today. Our team of financial professionals can help you with college funding strategies that will still enable you to save for your retirement.
*Source: Education Pays 2007. CollegeBoard


 

PROVISION
 
Some people will spend about a third or more of their lifetime in retirement. More and more people are living well into their eighties or longer. We are a “solution” based company that can add financial value to your life. We want to make sure you never run out of money.
 
Fortunately, today's tax-advantaged retirement
accounts could help you build the wealth you'll need
to meet key financial needs in retirement.
Some of the provisions are the following:
 
receive a regular stream of income during retirement
keep your retirement savings potentially growing tax deferred
minimize taxes on your retirement savings
create a legacy for your heirs

 

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