Life Insurance – What is your Human Life Value?

By | September 12th, 2019|Markets|

September is LIFE INSURANCE AWARENESS MONTH so we are starting a drive to help clients and friends review and shop for the best and most appropriate coverage possible.

DID YOU KNOW…A recent survey found only 32% of Americans have life insurance.

How would you assess the financial loss your family would incur if you were to die today? Are you the sole provider for your family, or at least a significant provider to the family budget? If you had a money making machine in your home, would you insure it? Life insurance is not for you, it’s for your loved ones once you’re gone.

This calculator provides only a rough estimate of your human life value, which can factor into how much insurance you need.

HUMAN LIFE VALUE CALCULATOR

After calculating a typical lifetime income based on your specific circumstances, you’ll see a final number that gives an approximate measure of your net contribution to your family—your human life value. This should not be considered a comprehensive assessment, as it only takes generalities into account. Still, given the limited information you’re providing, we believe it is the best estimate available.

NOT SURE WHERE TO START ASSESSING YOUR NEEDS? START HERE!

Contact us TODAY to get a FREE assessment of your life insurance needs, and a FREE QUOTE!

855-PARKELM OR kward@park-elm.com

A Tale of Two Decades

By | September 9th, 2019|DFA, Dimensional Fund Advisors, Markets|

Looking at the stock market over the past 20 years, you might think of Charles Dickens: It was the best of times—and the worst. But while the 2000s and 2010s have differed starkly in performance, collectively they have reinforced investing lessons on patience and discipline.

This piece from our partner, Dimensional Funds, discusses the well supported thought that maintaining patience and discipline, through the bad times and the good, puts investors in position to increase the likelihood of long‑term success.

Click here to download A Tale of Two Decades!

…or check it out below:

A Tale of Two Decades_ Lessons for Long-Term Investors

August Performance Dashboard

By | September 4th, 2019|Markets|

U.S. equities stumbled in August, buffeted by economic implications of an inverted yield curve and a possible trade war with China. Large-caps declined, with the S&P 500® down 2%, while the S&P MidCap 400® and S&P SmallCap 600® performed even worse, down 4% and 5%, respectively.

International markets also struggled, with the S&P Developed Ex-U.S. and the S&P Emerging BMI down 3% and 4%, respectively. The Far East and Latin America were particularly weak.

Low Volatility triumphed amid the tumult, and was the sole factor index to post gains in August. Utilities and Real Estate were the top sectoral performers, consistent with the month’s defensive theme.
dashboard-us-August

Video Series: Reacting to Markets

By | August 13th, 2019|DFA, Dimensional Fund Advisors, Markets|

This 1 minute video says it all! Nobel laureate Eugene Fama provides perspective for long-term investors on why they shouldn’t pay a lot of attention to short-term results.

“If you have a bad period in the risky part of your portfolio and you get out as a consequence…What that says is you NEVER should have been there!”

The most free way of thinking about investing is understanding what the possibilities are…good or bad.

Retirement Insights Tip #7: Effects of withdrawal rates and portfolio allocation

By | August 8th, 2019|Markets|

ONE SIZE DOES NOT FIT ALL

Higher initial withdrawal rates or overly conservative portfolios can put your retirement at risk. But setting it too low can lead to sacrifices in retirement. You may want to consider a dynamic approach to spending.

Setting an initial withdrawal rate and an appropriate portfolio allocation is necessary to sustain 30+ years of spending in retirement. The chart on the left illustrates the effects of different initial withdrawal rates assuming a 40% equity / 60% bond allocation. The 4% initial withdrawal rate—a general rule of thumb introduced in 1994, which adjusts the initial withdrawal amount for inflation over time to preserve purchasing power—is valid as is 5% but the 6% initial withdrawal rate proves not as successful and may put retirement at risk. The right chart illustrates the 4% withdrawal rate, but assuming various portfolio allocations. The more conservative the investor, the more difficult it may be to sustain the 4% rule over long periods of time. Consider a more dynamic approach to ensure that you efficiently use your savings to support your lifestyle while ensuring that you don’t run out of assets too quickly.

Want to talk about a distribution strategy? Give us a call!

Video series: What’s the upside of risk?

By | August 7th, 2019|DFA, Dimensional Fund Advisors, Markets, Video|

In this short video, Nobel laureate Eugene Fama discusses how financial markets work, what fuels innovation, and the upside and downside of risk.

July Performance Dashboard

By | August 2nd, 2019|Markets|

After a record June, U.S. equities continued to post gains, thanks to strong earnings and economic growth. Dovish sentiment from the Fed was short-circuited on the final trading day of the month. Despite a well-telegraphed 25 bps reduction in the target federal funds rate, the trajectory for future rate cuts remains uncertain. Large, mid and small-caps gained, with the S&P 500®, S&P MidCap 400® and S&P SmallCap 600® all up 1%.

  • Enhanced Value was the top performing factor, and has outperformed the S&P 500 in 6 out of the past 12 months. Across sectors, Communication Services was the top performer, while Energy was the laggard.
  • International markets posted losses, with the S&P Developed Ex-U.S. and the S&P Emerging BMI both down 1%, with headwinds including U.S. dollar strength.
dashboard-us-2019-07

Retirement Insights Tip #6 – Changes in Spending

By | July 29th, 2019|Markets, retirement|

Spending habits change over time. Typically, spending peaks at the age of 45 and starts a slow decline. This is an important piece of the retirement planning puzzle. We often talk about distribution strategies at retirement age. A solid estimate of spending is necessary to strategize for your future.

This chart illustrates what college-educated households spend on major expenditures at specific ages. Most Americans’ peak spending years are between ages 45 and 54, and thereafter spending tends to lower at older ages. Note that the largest expenditure category at all ages is housing, while the category that older people spend significantly more on than younger people is health care.

Video series: Why Should I Invest?

By | July 25th, 2019|Markets|

In this first short video, Nobel laureate Eugene Fama explains two key steps to investing: knowing why you want to invest and understanding your tolerance for risk. Everyone has different reasons for investing and different risk aversions. Stay tuned for  our 3 part series on risk, rewards and markets.

 

Retirement Insights Tip #4 – Retirement Savings Checkpoints!

By | July 15th, 2019|Markets|

2019 Guide to Retirement
Achieving a financially successful retirement requires consistent savings, disciplined investing and a plan, yet too few Americans have calculated what it will take to be able to retire at their current lifestyle.  This chart from JP Morgan Asset Management ( for household incomes of $100,000 or more) helps investors to quickly gauge whether they are “on track” to afford their current lifestyle for 30 years in retirement based on their current age and annual household income.  This analysis uses an appropriate income replacement rate (detailed on slide 15), an estimate of how much Social Security is likely to cover and the rate of return and inflation rate assumptions detailed on the right to determine the amount of investable wealth needed today, assuming a 10% gross annual savings rate until retirement.  It is important to note that this analysis assumes a household with a primary earner who plans to retire at age 65 when the spouse is assumed to be 62.  If an investor’s current retirement savings falls short of the amount for their age and income, developing a written retirement plan tailored to their unique situation with the help of an experienced financial advisor is a recommended next step.

Call our office for a complimentary Retirement Savings and Distribution review.

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