Moment on Money

What Financial Advisors Think

Brinker Capital conducted a survey in June to gauge financial advisor confidence and sentiment about the economy, retirement savings, investing, and market performance. 380 advisors responded and some of the responses are quite interesting.

What should be the priorities of the next administration and new Congress during the first hundred days?

• 48% - Addressing the immediate energy needs of the country
• 20% - Create economic stimulus and tax incentives to bolster consumer/business spending
• 14% - Resolve the Iraq crisis
• 14% - Reduce the budget to combat inflation
• 3% - Improving U.S. ties with our allies

Almost 1 of 2 financial advisors feel that energy is the highest priority issue while less than 1.5 in 10 believe Iraq should be the top priority.

When do you think the U.S. Economy will rebound?

• 17% - By the end of 2008 
• 27% - First Quarter 2009 
• 40% - Mid 2009 
• 16% - Not until 2010 

The good news – 84% believe the rebound will happen before 2010. The bad news – most believe there are 6 to 9 more months to wait.

What are the major obstacles to your clients' retirement savings?

1. 29% - Procrastination
2. 17% - Health Care costs
3. 15% - Excessive lifestyle
4. 11% - Lack of concern
5. 10% - Children's college education
6. 7% - Mortgage
7. 6% - Caring for the elderly
8. 5% - Support for adult children

Keep in mind that this is financial advisors perceptions about their clients' retirements. I wonder if clients see it the same way. Interestingly, back in May of 2007 I wrote about the common causes of financial failure and two of my four reasons are in the top three listed here.

Of course you always have to consider the source. Not surprisingly, 77% believe John McCain is more likely to solve the energy crisis than Barack Obama (do you think most financial advisors lean a little to the right?) and 65% believe that raising the capital gains tax would have the most adverse effect on the economy (the runner up was 15% believe that repealing the Bush estate tax cuts would be the most adverse).

A Billion Here, and A Billion There

Do you know who Donald & Samuel Newhouse Jr. are? Forbes has them tied in 100^th place on the Forbes billionaire list each with a net worth of $7.3 billion. The brothers are on the same list which includes 891 individuals from all over the world with a net worth of at least $1 billion. That is a lot of people with a lot of money.

Even though I deal with fairly large sums of money on a regular basis, I still have difficulty putting one billion into perspective. After all, a billion is just a thousand millions.

I was sent this email and it helps understand just how large a billion of anything is:

• A billion seconds ago was 1959
• A billion minutes ago Jesus was alive
• A billion hours ago was the stone age
• A billion days ago no one walked the earth on two feet

The same email said the US Government spends $1 billion in 8 hours and 20 minutes.

Anyone care to check the math?

Peek-A-Boo, I see you?

Television Sighting?

Did you happen to watch WHO-TV's local news on Friday May 2^nd at 10:00 p.m? I did not but my friend Tom from Runners Lounge has tipped me off that Moment on Money was included in a piece they aired about "great local blogs". Someone else called and asked why I was on the news. I've emailed the news room but no one has been in touch with me. I would really like to see the segment and if anyone could help, please let me know.

151^st Carnival of Personal Finance

Thanks to the Alpha Consumer, Kimberly Palmer who hosted the 151^st Carnival of Personal Finance. My post about The Importance of Record Keeping was included among many diverse and interesting posts from blogs about personal finance. My personal favorites are from InsureBlog who writes about the perils of buying cheap health insurance and FatherSez who shares his regrets about a timeshare purchase.

peek-a-boo by Liquid Paper

MDA Lock Up 2008

I've agreed to be "locked up" to help the Muscular Dystrophy Association raise money. On April 10^th I will be whisked away to a maximum security restaurant and held until I can raise enough "bail" to be released. The last time I did this I was able to raise over $1200. This time I am setting my goal at $1600. Would you be willing to help? You can even bail me out on-line.

76% of every dollar MDA raises goes directly to research, health care services and education.

• $25 pays for a flu shot for someone for whom respiratory disease could be very dangerous
• $100 covers a vital support group meeting
• $150 provides for an expert consultation in physical, occupational or respiratory therapy
• $200 covers a diagnostic workup at one of MDA's 235 clinics
• $650 sends a kid to one of MDA's 90 summer camp sessions
• $1,200 pays for 12 months of support group meetings helping families cope with the challenges of neuromuscular disease
• $2,000 assists someone with the purchase of a wheelchair, leg braces or communication device
• $3,900 pays of an hour of MDA's research seeking treatments and cures for more than 40 neuromuscular diseases
• $6500 would send 10 of "Jerry's kids" to MDA summer camp for a week of fun and recreation geared to their abilities

I am grateful that this blog reaches such a large and diverse audience. If you find it in your heart, could you please help me help the Muscular Dystrophy Association? Thank you.

Back to financial planning in my next post.

145th Carnival of Personal Finance

This week's carnival is hosted at Million Dollar Journey. Thanks to the host for including my commentary on market volatility and perspective (based on the market since, I think I was quite prophetic) and here are some other posts I think you should read for yourself:

• When I scope through the posts, I try and find a variety of blogs which I believe deliver a great message. Rarely do I think the same author hits a home run twice in a row but that is exactly what has happened here. Veteran Military Wife's contributed Money for the Long Haul and offers seven tips to keep a long timeframe in mind.
• Smart Easy Money offers a thought provoking post Retirement: How will you live? which recognizes that a key to successful retirement planning is not just to horde money, it is to know what you want to do with the money you accumulate.
• Remember the good old days… when you used to pay for things with money? I hardly ever carry cash any more. Now I pay for just about everything (large and small) with my debit card. That is why I've Paid For This Twice Already's post How Small a Transaction Before Plastic Seems Absurd caught my eye. For me, the answer is $1.00.

At the Carnival by Joe Hastings

142nd Carnival of Personal Finance

It has been five weeks since I participated in a carnival. That is too long. But I jumped back on board with last week's carnival hosted by the Bag Lady. Carnivals are a great way to see what has been interesting in blogs. I contributed my post about the interesting oddities of the economic stimulus package. Here are some other posts I think you should read for yourself:

• Don't be fooled by the title. Veteran Military Wife's posy Investing my Muffin and a Cup of Coffee With Their Help is an excellent primer on why she works with a financial planner as well as her guide to selecting a planner for yourself. The only thing I would suggest differently is to start with the Certified Financial Planner Board of Standards to find local CFP practitioners. She suggests Dave Ramsey but I would imagine that the CFP Board has done more due diligence.
• In The Sad Truth About Investing The Financial Blogger comes to the conclusion that small investors can not expect double digit average returns.
• The Dividend Guy offers 3 Things That Will Make You A Better Investor. When I read it I thought it was nothing new but then again, it is always good to be reminded of the basics.
• If I gave an award for the blog post that made me think, this week's award would go to Funny about Money's Checkbook Security: Privacy, your pocketbook, and why it matters.
• I am always on the lookout for fellow Iowa bloggers. Too bad I had to read my first post from Iowahippiechick when she wrote about the sudden passing of her mother and asks Are You Prepared For an Unexpected Death? After reading the post, all I know about the author is her name is Dawn and she lives in Iowa. I left a comment of condolence on her blog. Wouldn't it be a nice act of kindness if a bunch of strangers offered their thoughts and prayers for Dawn and her family?
• And finally, it has been a while since I have provided a link to Pinyo at Moolanomy. He and his wife recently reviewed their life insurance needs and he writes a good piece (it appears to be the start of a short series) How Much Life Insurance Do I Need?

At the Carnival by Joe Hastings

137th Carnival of Personal Finance

The Dividend Guy brings us the 137^th Carnival of Personal Finance. My submission on the Tax Effect of Return of Premium Life Insurance was included.

My favorites from this week's carnival:

• Four Pillars writes about the 4% Withdrawal Rule for Retirement. You may read it and think that the rule does not apply to you. If you can earn 8% or more in your portfolio, why must you limit your withdrawals? For more information on this meaningful topic, see what I wrote about it.
• It is interesting to see how different families handle money. Plan Your Escape gives us an intimate look at how they handle their money in Finances For Couples. We do it differently in my family but in both cases there is a system.
• I've Paid For This Twice Already shares a story of medical expenses piling on top of the expenses of an automobile accident in There's No Shame In Not Being Able To Afford It. This story puts the spotlight on cash management. Remember, it's not how much you make or how much you spend; it's all about the relationship between the two.
• I really enjoyed 15 Historical & Interesting Bank Checks from Smart Money Daily. It is fun to see some of the old checks but my favorite is John Lennon's utility bill.
• One of my favorite parts of carnivals is discovering new blogs. Early Retirement Extreme caught my eye this week with Cash flow diagrams for the poor, middle class, and investor class. Simple and effective, this makes you stop and think.
• It is no secret that I am not living in an economic panic. I think the news of a recession is premature. No wonder I really liked What Recession? I'm Going Shopping by Money Under 30.

At the Carnival by Joe Hastings

136th Carnival of Personal Finance

Last week's carnival takes us to a blog I had never visited before, Green Panda Treehouse. My post about the effect of the Countrywide Financial buyout to a customer was one of several great posts included.

Other posts I enjoyed:

• I have been on a quest to find other financial professionals who blog. LWM Blog is written by a couple CFP®'s. This week they tell us their thoughts about Fidelity Magellan Opening to New Investors.
• Family and Finance explains why you should not hold stocks in certificate form.
• Father Sez tells us how he tracks his financial progress using his net worth and income statement.

At the Carnival by Joe Hastings

134th Carnival of Personal Finance

From across the pond Plonkee Monkey brings us the 135^th Carnival of Personal Finance. Thanks Plonkee for including my submission.

Here are some good posts I never would have found if I did not read the carnival:

• For the second week in a row I want to highlight The Financial Philosopher. This week's carnival piece may be more philosophy than finance but it is well worth the read.
• Is it too good to be true? Ask Kimberly Palmer who writes Alpha Consumer as she tells us about Paying for Free Money.
• Over at Two Nickles there is a good post about The one good thing about the falling stock market.
• Nigel from Salt Lake Real Estate Blog suggests Starbucks as a Leading Indicator of the housing market. Hmmm.
• Bob Vineyard, CLU from Insure Blog offers something to think about in Phantom Insurance and Other Ways to Waste Dollars.
• And after reading Bob's post you should also read what Curtis wrote at Real World Finance$, The US Health Care Crisis which does an economic analysis of the potential effects of various political intervention.

At the Carnival by Joe Hastings

Things you’ll wish you never knew about me

First Angela tagged me, then Michael, and most recently Andy. At the risk of letting Andy believe he goaded me into a response, I am finally getting around to participating in this meme.

Writing this blog gives potential clients an opportunity to get to know me professionally, and this exercise offers the opportunity to get to know me personally.

The rules are simple:

• Link to the person (or persons?) that tagged you and post the rules on your blog.
• Share 7 random and/or weird things about yourself.
• Tag 7 random people at the end of your post and include links to their blogs.

So without any additional fanfare, here are seven things you may wish you never knew about Art Dinkin:

1. Ever see the movie Jaws? Remember when the shark swims under a bridge to attack a kid on a raft? The movie was filmed on Martha's Vineyard, a place very dear to me. My first visit to the island was in April of 1982. I decided to jump off that bridge into the water. Don't do that. The Atlantic Ocean is very cold in April. I was so cold my skin was bright red after my short swim to shore.
2. My military occupational specialty (MOS) in the Army was 91S, preventive medicine technician. Part of our job included military entomology (the study of bugs). I think I was in the only platoon in the entire Army which could be seen marching with butterfly nets on our shoulders.
3. I moved to Des Moines in March of 1999. This was supposed to be a temporary stop in my effort to move back to the east coast. Now I do not want to move and in a few months I will have lived in Des Moines longer than I have lived in any other community (9 years).
4. I never hunted before I moved to Iowa. Today I hunt pheasant, deer, and turkey but my favorite is waterfowl. One of my hunting buddies needs only to call my house and say "Quack!" It is understood that he is asking if I am available to go hunting with him.
5. I am fascinated with aviation. My addiction started as a young boy and has never left. I took hang gliding lessons, built and flew remote control airplanes, and now I am a pilot with an instrument rating. Most of the flying I do these days is for the Des Moines Skydivers.
6. I have willingly jumped out of an airplane six times (reference #5). When you hang out with skydivers, six jumps is not that many. By mutual agreement my wife and I decided that six jumps were plenty for a man who wanted to start a family.
7. My favorite sport to play was football. The last time I played football was my freshman year of high school when I never made if off the bench. I was a defensive lineman. Immediately after what turned out to be my last season, I was on the wrestling team. I wrestled that year at 98 pounds.

Now, who to tag? Amy, Drew, Larry, Rush, and Adam would be likely candidates, but they have already been tagged. So I'll tag:

• Sherry @ DSM Buzz
• Carl @ Employer Ease
• Brett @ Blawg IT
• Jeff @ The Buckeye Battle Cry (you did not really think I would get through this without an Ohio State reference, did you?)
• Cory (or Mark if Cory has forgotten how to blog) @ Stories by REL
• Mark @ Vario Creative Blog
• Hal @ Common Culinarian

playing tag, hair aflutter by gisarah