Market Watch
The last few weeks have been an especially volatile and unnerving ride for the American economy. For many months we have watched as the core components we use to measure the state of the economy twist and turn, bringing discomfort and unease.
So, when will it end?
There is no crystal ball that gives us the insight we need, but with the recent actions taken by the government, it is logical to say that the rampant excess of the last eight years is over.
This period of time continues to remind us of the need for diversification, patience, and staying aware as to the market metrics and your portfolio. If you have questions, or are unsure of what to do next, please call us.
In this months newsletter, we have an article that gives you an overview of the protections available to you at banks, credit unions, and brokerages; a helpful article on a question we get quite often, “How long do I need to keep my financial records?”; and last but not least, an article put out by Fidelity Investments addressing the recent financial crisis.
As a reminder, we are continuously uploading new and informative articles to our website http://www.CCAWealth.com.
We hope that this monthly e-Newsletter will provide you with a consistent reminder to stay vigilant in your retirement planning, and to continue to look for the information you need to avoid mistakes that may affect your future.
As always, we will do our part to make sure we are passing along pertinent news and information.
Please don’t hesitate to call us for any questions or concerns you may have. We’re here for you!
See you next month,
Carpenter Claydon Advisors, Inc.
Latest News
Ensuring Your Financial Future Is Protected
In light of the chaos of the financial markets, people are reviewing the legal protections available to them for assets held by banks, credit unions, and securities dealers. Here are some of the protections available.
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Organizing Your Important Papers
It is wise to periodically review your important papers. Take a fresh look at the types of records and papers you should be keeping at the beginning of each new stage or change in your life. The household might be considered a mini-business since many of the functions of planning, purchasing, and record keeping are the same as they are for any other type of business — large or small.
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U.S. Financial Crisis Enters New, But Perhaps Necessary Phase
by Dirk Hofschire, CFA
Throughout the current credit crisis, the Federal Reserve and the Treasury Department have followed a blueprint that draws from many lessons learned during previous crises, including Japan’s banking crisis in the 1990s and the Great Depression.
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Wine of the Month
Joseph Phelps Vineyards: 2004 Insignia
Napa Valley, California
Construction, not winemaking, was Joseph Phelps’ original choice of careers. Phelps, who grew up on a farm, later helped bring a small construction firm to national prominence. It was not until 1972 that Phelps decided to return to his farming roots by establishing his own winery among the redwoods outside of St. Helena, CA. Joseph Phelps Vineyards’ estates throughout Napa Valley and Sonoma County produce varietals including Cabernet Sauvignon and Sauvignon Blanc.
While their famous Insignia brand, which has been released since 1978, was the first Bordeaux-style blend produced in California without the varietal on the label, the 2004 Insignia is the first of its label to use only estate-grown grapes. This red blend, which consists of 72 percent Cabernet Sauvignon, 14 percent Merlot, 12 percent Petit Verdot and 2 percent Malbec, was aged for two years in new French oak barrels.
With aromas of syrupy blackberry and blueberry greeting the nose, Insignia reveals velvety tannins, a round finish and flavors of cassis, incense, graphite, plums, blackberries and black currants. Enjoy the wine now or put it aside to be sipped sometime in the next several decades.
Did You Know…A New Social Security Calculator is Available Online
People planning for retirement got a new tool recently: an online estimator for their Social Security benefits http://www.ssa.gov/estimator. The Retirement Estimator produces estimates that are based on your actual Social Security earnings record. Retirement estimates are just that, estimates. They will vary slightly from the actual benefit you may receive in the future because:
• Your Social Security earnings record is constantly being updated;
• Our calculators use different parameters and assumptions (e.g. different stop work ages, future earnings projections, etc.); and
• Your actual future benefit will be adjusted for inflation.
Thoughts for the Month
In light of the recent market madness, we thought we would share some advice from a couple renowned financial intellectuals:
"We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful."
-- Warren E. Buffett
"A bull market is born on pessimism, grows on skepticism, matures on optimism, and dies on euphoria"
-- Sir John Templeton