Archive for December, 2008

Last week was the “new hope for the new year” Holiday Open House for New Hope Center for Grief Support, a charity our Invest in Others Program contributes to.  Over 150 people attended the open house, hosted by Toll Brothers in Novi. This is one of the big fundraisers of the year for New Hope. Provided was great food and libations, my favorite being the chocolate fountain!

The holidays are often tough for folks who have lost a loved one and their goal is to offer HOPE and healing. 

New Hope Center for Grief Support is a tax exempt, approved 501(c)(3) organization and is funded primarily through private donations and fundraising events.  New Hope receives no state or federal funding and does not charge a fee for any of its services to individuals. 

Lincoln Anderson offered his views on the economy this morning on CNBC. Click here to watch.

What do I do now if I have cash?

Maybe you just received a windfall, or maybe you got nervous recently with the markets and decided to be safe and move all your funds to the money market. The next question is what now?

The first thing we recommend is to update your financial plan/retirement analysis. Are you on track to reach your goals? If you have been a diligent saver and don’t spend out of control, you may be able to reach your goals with a fixed rate of return on your money. If this is the case, there are many options available today which will pay a flat return.  These choices may be suitable for you.

Or maybe that is not enough for your plan or not enough for your expectations, so you eventually want to get back into the equity markets, but you’re not exactly sure how or when the right time is. I believe you have 2 options:

1.    Traditional Buy and Hold - dollar cost averaging. Buy on the dips. History tells us these levels may be attractive entry points. You are trying to get in low, maybe not “the” low. The risk here is that you may be catching a falling knife, which can be very painful. Such a plan involves continuous investment in securities regardless of fluctuation in price levels of such securities. An investor should consider their ability to continue purchasing through periods of low price levels. Such a plan does not assure a profit and does not protect against loss in declining markets.

2.    A strict Buy Discipline – using technical/quantitative analysis, wait in cash until we begin receiving buy indicators, which should occur as the market begins to turn up. If the trend is down and the train is coming down the tracks, step of the tracks and wait for the train to pass before stepping back on. Such analysis only provides buy/sell indicators based on market patterns. There is no guaranteed strategy to accurately time the market.

Securities Offered Through LPL Financial Member FINRA/SIPC

Many people have overlooked the prospect of purchasing long term care insurance because at first glance it looks too expensive,  it is viewed as a “use it or lose it” type of insurance, or it is viewed as unnattainable due to existing health issues. In today’s LTC market we’re seeing very innovative and inexpensive ways to protect your wealth from the costs of nursing home expenses. Call the office at 734-432-1966 to find out if some of the exciting changes in the industry may fit in your wealth plan.

Have you always wanted your own stock portfolio?

Park Avenue Wealth is pleased to announce we are now managing equity portfolios in addition to our traditional mutal fund portflios. The philosophy differs from our traditional asset-allocation “pie-chart” models using mutual funds. Our system relies on our disciplined buy and sell signals for individual stocks, taking emotions out of the process. If you are interested in speaking further about moving a portion of your portfolio into our actively managed stock model, please call the office at 734-432-1966 to set up a meeting.