Moment on Money

Letter to Clients: 1st Quarter 2013

Dear Clients & Friends,

Are you taking advantage of all the free additional services you can access as a client of DV Financial? Before we dive into a summary of 2012 and an outlook for 2013, I thought I would provide a quick overview of the value added services at your disposal:

• Shredding - we shred documents to protect your identity, and we recommend that you do as well. The New Year is a great time to go through old records and get rid of outdated files and clutter. But be certain that you are not inadvertently putting sensitive information in the trash. Bring in your documents for shredding. We will be happy to add them to our locked container and supervise their destruction to government specifications with our shredding service.
• Notary Public – every once in a while you need to have a notary public witness a signature. Our wonderful assistant, Sue, is a notary public and will gladly notarize your documents at no charge.
• Client Portal – last year we launched a new website, www.dvfin.com, which includes a Client Portal. From there you can monitor all your financial data, not just the accounts you have with us. To get started, just let us know your preferred username. We will establish your Client Portal, link the accounts we handle for you, and walk you through all the functions at your fingertips.
• Economic Updates Email – and while you are at the website, be sure to click on the Free Economic Updates tab. If you like the summary, you can subscribe to a once-a-quarter email to ensure you are always educated about what is going on in the economy.
• Facebook – And for more financial information be sure to like our Facebook page, www.facebook.com/dvfin. Don't worry; we won't clog up your feed. But we try to post financially relevant articles a couple times a month.

2012 in Review

The volatility which has characterized markets since the global financial crisis, nearly five years ago, continued throughout 2012. At the same time, the U.S., Europe, and emerging markets all showed strong gains, despite concerns about Europe's finances and worries that the U.S. would fall off the "fiscal cliff" and go back into recession.

Much of 2012's volatility was driven by the ebb and flow of good and bad news about Europe. Positive indications for Europe's economy in the first quarter led to the strongest start for markets in recent memory, which was promptly given back as concerns rose in the second quarter. Markets then rallied in the second half of the year when the European Central Bank announced that it would provide liquidity to governments and financial institutions—to the point that for 2012 as a whole, Europe's stock market actually outperformed the U.S.'s.

When dividends are included, the United States and emerging markets ended 2012 above their point five years ago, shortly after global markets hit all-time highs in the fall of 2007.

Putting big-picture problems in perspective

It's easy to feel discouraged by all the bad news and problems facing the world. December 1990 is a particularly relevant reference point for me since 1990 was my first full calendar year in this business. Looking back to that time provides some interesting perspective on today's issues.

Here is what was going on at the end of 1990:

• In August of that year, Iraq invaded Kuwait. It was not until January of 1991 that a coalition of Western and Arab nations led by the United States responded. In the meantime, there was huge uncertainty about what would happen, and oil prices doubled as a result.
• Starting early that year, Western economies went into a significant recession, which hit its peak in the fourth quarter of 1990. In the four months from July to October, the stock market was off 15%—for the year as a whole, the market was down almost 7%.
• In the aftermath of $500 billion in write-offs in the savings-and-loan sector, there was a widespread view that the U.S. was on the threshold of a full-fledged banking crisis. Loan defaults were up and bank profits were down. Some 900 U.S. banks had failed in the past five years, and another 1,000 were on the problem list. In response, banks were cutting back on loans—even to creditworthy borrowers.
• Prices of bank stocks such as Citibank and Chase Manhattan Bank dropped by half from July to December. An editorial in Business Week had a typical view: "The banking sector is under enormous strain. Should it begin to unravel, recession could become an economic disaster."

Of course, with hindsight we now know that the period that followed saw strong growth in the economy and a buoyant stock market. This is not to suggest that the same will happen today, but we have worked through significant problems before, including the issues in the early 1990s, the shock in oil prices that led to a global recession in the 1970s, and numerous other big-picture challenges.

We are resilient. I have confidence that we can work though our issues of today as well as the issues which will arise tomorrow.

The outlook for 2013

Even in the face of all the global problems, many analysts begin 2013 cautiously optimistic about the outlook for stocks. The reason is not that there is any expectation of an easy resolution to the developed world's debt woes, unemployment, or slow economic growth; on the contrary, there is universal agreement that it will take years to work through these issues.    

The reason for optimism arises from the fact that, around the world, companies are generally in very good condition with strong operating margins and solid balance sheets. The October interview "Wall Street Sage Sees Reasons for Cheer" in Barron's magazine gave a good example of the positive mood on stocks as 45-year industry veteran and former Morgan Stanley strategist Byron Wien his positive forecast for the U.S. He believes:

• The U.S. housing market has hit bottom and will be a positive force in 2013.
• The growing middle class in emerging markets will continue to provide opportunities for investors and for companies selling into those markets. (Wien is especially positive about agricultural commodities.)
• Dramatic new domestic oil discoveries will put a cap on the price of oil and help buoy the U.S. economy.
• Large multinational stocks offer predictable growth, solid balance sheets, and attractive yields at reasonable valuations.
• Even in the face of challenges on budget deficits and debt levels, Wien points to the resilience of the U.S. and its history of repeatedly working through what he refers to as "disasters."

The other hot topic in markets is the direction for bond prices. There is growing concern among many leading strategists about the future for bond portfolios based on current record-low interest rates, despite their "flight to safety" appeal. A recent New York Times article, "Bond Craze Could Run Its Course in New Year," pointed to research from Morningstar that bonds have grown from 14% of U.S. investor portfolios five years ago to 26% today. In his annual letter to investors last spring Warren Buffett said that due to today's low rates and inflation, "bonds are among the most dangerous of assets."

What this means for you

What should you be doing given the current situation?

• Take the right level of risk. Is your portfolio a balance of risks you are comfortable with and enough potential return to meet your needs and goals? The starting point is to identify and analyze your retirement goals and then to construct a portfolio based on that objective. Our approach is to take the right level of risk for each client—enough that we can achieve your objectives, without taking more risk than is necessary. For retired clients, the focus needs to be maintaining secure, liquid funds to cover expenses. Having that buffer reduces the risk of having to sell investments when prices are down.
• Adhering to your plan. Regardless of what happens to markets in the short term, unless there is a significant change in your circumstances, you should stick to your investment plan. In early 2009, as we faced what appeared to be an end-of-the-world scenario and some stocks hit lows they hadn't seen in 20 years, we urged clients to maintain a core level of equity exposure. The markets have more than doubled since hitting their lows. With current stock valuations and the risks inherent in bonds, we have been increasing equity weights but staying within client tolerances. Of course short term market predictions are notoriously inaccurate; however, long term there is a strong case for stocks over bonds.
• Diversify your portfolios. The U.S. represents less than half of investing opportunities around the world and we need to stay geographically diversified as a result. This is not because we believe the dollar and the domestic market will do better or worse than global markets, but in an increasingly global economy it would be foolish not to consider a global investment portfolio.
• Focus on cash flow. In an uncertain environment for immediate economic growth and equity returns, we continue to value cash yield from investments. Currently, the returns on some REITs, master limited partnerships, selective high-yield bonds, and dividend stocks continue to be attractive. When it comes to dividend stocks, we do have to be increasingly selective as some steady dividend equities now look expensive by historical standards and show signs of stretched valuations because investor appetite for yield has bid up their prices.

In summary we enter 2013 excited. In many ways it feels like the economy is ready run held back only by confidence. As evidence of a stronger economy presents during the first half of the year, we expect momentum to build in the second half of the year.

We appreciate the trust and confidence you have placed in us and are honored to serve as your financial advisor. If you want to discuss any part of this letter or focus in on your specific situation, we will be happy to meet with you. We look forward to a productive 2013 working together.

Sincerely,

Art Dinkin, CFP®

Office Hours for Thanksgiving 2012

In observation of the Thanksgiving holiday our office will close on Wednesday November 21^st at noon and will reopen on Monday November 26^th.

We hope you enjoy a safe and wonderful holiday.

Tax Harvesting: Wash Sale Rules Can Be Used To Your Advantage

Almost every culture has some kind of harvest celebration. Some of the traditions have been practiced for thousands of years. Here in the U.S, we celebrate Thanksgiving.

From a financial perspective, Thanksgiving starts many end-of-the-year activities. Now is the time to consider the tax consequences of the current year and implement any tax saving strategies. In 2007, I wrote about one one particular strategy known as tax loss harvesting. Over the last couple months I have been writing and talking about the fiscal cliff which is now the buzz in mainstream media.

But there is an interesting intersection between tax harvesting and the fiscal cliff which many people have overlooked.

The essentials of tax loss harvesting is to take investment positions which are currently worth less than you paid for them and sell them at a loss to offset other investment gains to reduce your taxable income. For example, if you have already recognized $10,000 in investment gains during the tax year you might consider selling other investments at a loss so your net income goes down, thus reducing your tax bill.

The "catch" in doing a tax loss harvest is known as the wash sale rules. The IRS says that if you sell an investment and repurchase a "substantially identical" investment within 30 days, they will disallow the tax loss.

There is a strong consensus that tax rates will be going up very soon. No one, as of yet, knows exactly how much or when, but many tax professionals are taking a different approach in 2012 and telling clients to increase their taxable income as much as possible this year as opposed to pushing it forward. The goal of this advice is to pay the lower tax rate now rather than a higher tax rate later.

The opportunity lies in the fact that the wash sale rules apply only to losses, not to gains. Suppose you own 100 shares of XYZ stock which you purchased at $20 per share and are now worth $35 per share. If you sell the stock now, you have to pay income taxes on the $15 per share gain with your 2012 tax return. If you owned the shares for more than a year it would be at long term capital gain rates, currently capped at 15%. So the strategy is to do just that, sell the stock but immediately repurchase the same shares at about the same price. You pay the tax on the $15 per share now, and going forward your taxes are based on your new $35 cost basis in the stock.

Taxes aren't always bad. Paying taxes means we have made a gain, but we may as well minimize the amount of taxes due on that gain. We would be happy to discuss this, or any other, tax or investment strategies with you.

On behalf of the entire DV Financial team, we wish you a very safe and happy Thanksgiving.

Tax strategies discussed are general in nature and not directed at any particular individual or situation. Please consult with a CPA or tax planning specialist before implementing any tax reduction or planning strategy.

Photo Harvesting by wattpublishing; used by under their requirement to link back to http://www.WATTAgNet.com

Letter to Clients: 4th Quarter 2012

Dear Clients & Friends,

As we enter October, we are now three quarters through a very eventful 2012 both in the marketplace, and here at DV Financial.

Over the past quarter, we released our new website www.dvfin.com along with a few new services.

• Live client portal – our secure client website has been a huge success. It provides a place for you to collect all your financial data; not just the assets we manage for you. The real value to you is the collaboration this supports since we are both seeing the exact same information. Behind the scenes is some powerful financial planning software so we are prepared to quickly answer any financial questions you may have, and the data we use will always be up to date! We have been adding a few clients every week into the system, but only for those who want to use it. DV Financial pays for the system. There is no cost to you. Please let us know if this is something you would like to enjoy.
• Quarterly Economic Updates – In the past I had posted quarterly economic commentary to our blog. With our website upgrade this is now available in an email format. It is free and easy, just go to the website and sign up under "Free Economic Update". This is not a marketing campaign and you do not even be asked for anything except your email address (which will not be used for any other purposes than to send you four emails a year). The most recent update went live on October 10^th. Look it over and if you like what you see, sign up for the next update in January.

In the markets, this year has been a tale of three distinct quarters. In the first quarter we saw the strongest start for the stock market since 1988, driven by a reduction in fears about Europe and stronger economic data in the U.S.

The second quarter gave many of those gains back, due to escalating concerns about the European currency union and slowing global growth, accompanied by discouraging data on employment. We also saw a slowdown in China and India, putting downward pressure on the prices of oil, other commodities, and stocks in general.

This past quarter we saw markets bounce back, as the U.S. Federal Reserve Board and the European Central Bank (ECB) put measures in place to stabilize economies and to boost growth prospects. In particular, European confidence was boosted by the ECB's announcement that it would backstop Greece, Spain, and other countries whose economies are struggling.

Here is a summary of global market performance in 2012 to date, all in U.S. dollars. It's of note that the global "flight to safety" over the past 12 months has led to a stronger dollar, depressing returns outside the U.S. when denominated in the dollar. It is now hard to recall that when we suffered our own fiscal crisis just a few short years ago, some pundits wondered if the U.S. dollar would be replaced as the global currency standard.

Guidance from a Wall Street Legend

Of course, looking back is always the easy part of investing – looking forward is more challenging. Barton Biggs entered the investment industry in 1961 and in 1973 joined Morgan Stanley, where he served as chief global strategist from 1985 until his retirement in 2003. He was named 10 times to the All-America research team and was voted Wall Street's top global strategist each year from 1996 to 2000. Among his claims to fame:

• He predicted the bull market that began in 1982 and warned investors about Japanese stocks prior to their collapse in 1989.
• In an interview in July 1999, he identified a bubble in the U.S. market and advised investors to sell tech stocks.
• He correctly called the bottom in U.S. stocks in March 2009.

Biggs wrote extensively on how investors can prosper in volatile markets. Three of his themes are especially relevant today:

• Why owning stocks is essential for most investors
• The challenges of investing rationally in an irrational world
• The psychological makeup of successful investors

Why owning stocks is essential

One insight from Biggs relates to why almost all investors need to own equities at some point in their investing lives:

The history of the world is one of progress and as a congenital optimist, I believe in equities. Fundamentally, in the long run you want to be an owner, not a lender.

Biggs also discussed the trap of making short-term safety your only investment consideration and sacrificing higher returns for lower volatility:

Warren Buffet said it best when he said he would always pick an investment strategy that over five years would give him a 12% compounded annual return, but that was volatile, over one that promised him a stable 8% return.

Rational investing in an irrational world

Biggs also wrote widely on the challenges of being caught up in the emotions of the market and the tendency to root our investment outlook in the immediate past rather than what is happening today and what may happen tomorrow.

This is no different from military officers who attempt to prepare for the next war by applying the lessons learned from the last one, without recognizing that the context has become entirely different. Biggs' comment helps explain peculiarities such as massive inflows into government bonds during a period of all-time low rates, leading to a virtual certainty of capital losses when interest rates rise.

As investors, we always have to be aware of our innate and very human tendency to be fighting the last war. We forget the Mr. Market is an ingenious sadist and the he delights in torturing us in different ways… Mr. Market is a manic depressive with huge mood swings and you should bet against him, not with him, particularly when he is raving.

Biggs went on to refer to a comment by Warren Buffet about investing – that it is like being in business with a partner who has a bipolar disorder:

When your partner (with a bipolar personality) is deeply distressed, depressed, and in a dark mood and offers to sell his share of the business to you at a huge discount, you should buy it. When he is ebullient and optimistic and want to buy your share from you at an exorbitant premium, you should oblige him. As usual, Buffet makes it sound easier than it is because measuring the level of intensity of the mood swings of your bipolar partner is far from an exact science.

The psychological makeup of successful investors

As a result of the strong emotions at play, many money managers find it hard to stick to their strategies. Here is what Biggs had to say about the importance of immunizing yourself from the psychological effects of the swings of the market:

The investment process is only half the battle. The other weighty component is struggling with yourself and immunizing yourself from the psychological effects of the swings of the market, career risk, the pressure of benchmarks, competition, and the loneliness of the long distance runner.

And Biggs offered one final piece of advice about knowing yourself and your foibles that will particularly resonate with those of you who remember the tech boom of the late 1990's. While this advice is oriented to investment professionals, it applies to individual investors as well:

At the extreme moments of fear and greed, the power of the daily price momentum and the mood and passions of "the crowd" are tremendously important psychological influences on you. It takes a strong, self-confident, emotionally mature person to stand firm against disdain, mockery, and repudiation when the market itself seems to be absolutely confirming that you are both mad and wrong.

What this means for your portfolio

We face two major events as we bring 2012 to a close. The first is the obvious Presidential election. The second is the upcoming Fiscal Cliff; the expiration and effect of the Bush era tax cuts. As we sit here in October, weeks away from the election, most of the attention is directed there. But I believe the Fiscal Cliff has far more short-term significance to investment portfolios than deciding who will occupy the White House.

Left to its own, the Fiscal Cliff represents the single largest tax increase in history. All aspects of our tax code will be effected… ordinary income tax rates, capital gains, dividends, capital gains, payroll taxes, estate taxes, and even some new taxes courtesy of the law commonly referred to as ObamaCare.

No rational, patriotic citizen disputes that we need to make some changes. Even Congress agrees that change is necessary. They just can't seem to agree on what needs changed and who should foot the bill. None of this is a surprise. I am not revealing any privileged information. All of this is well known, but I do not believe the fiscal cliff is fully priced into the markets. I believe the market expects that after the election some kind of compromise decision will be reached, most likely in the 11^th hour. Remember how well that worked when the government almost shut down over increasing the debt ceiling in 2011? Who knows? It may happen if all the political dots line up just right.

While I do ultimately believe a compromise will be reached, I do not know if it can be done during a lame duck session of Congress. If we fall off the fiscal cliff, the market may not react well. So what are your choices?

If you are a long term investor and you have time on your side, why should you change anything? You may see a sharp decrease in your portfolio values, but since you understand the cause it should be palatable. Once compromise is achieved, the market should soon restore that value which was "misplaced".

If you do not have a long term investment horizon and you are concerned about a significant decline in your portfolio, perhaps you need to reconsider your asset allocation. The 21^st century has taught us a lot about risk tolerance, or perhaps more accurately our lack of risk tolerance. Removing volatility is a legitimate investment goal as your timeline grows shorter, but understand that "price" of safety is diminished returns.

Yet others will choose to take this insight and become aggressive by increasing their cash position before the market reacts, and then attempting to buy back in once prices have fallen. While this sounds perfect in theory, there are a couple obstacles to making it work in reality. First, how will you know when the prices are done falling? Or will you set a point which is "low enough" to buy back in? How will you feel if a compromise is reached before prices fall and the market reacts by shooting straight up? Now you will be sitting in cash and forced to buy back in at higher levels than when you sold? Finally, remember the Biggs quote. Are you a "strong, self-confident, emotionally mature person to stand firm against disdain, mockery, and repudiation when the market itself seems to be absolutely confirming that you are both mad and wrong"?

Only time and history will prove one course of action to be better than any other. More important than choosing the "best" option, is choosing the one which fits you regardless of the result.

At the beginning of the month I published a list of year end considerations on our facebook page and blog which I encourage you to review.

If that list, anything in this note, our new client portal, or any other issue is of concern or raises questions for you about your financial plans, please give me a call. I am honored to serve as your financial advisor and appreciate your trust and confidence. My staff and I look forward to continued service for you.

Sincerely,

Art Dinkin, CFP®

Did you hear the latest?

Our Fourth Quarter Economic Update was released yesterday. Did you get your email?

If not, why not sign up at our new website? It's free. It's easy. Your privacy will be respected; we don't even ask for your name.

You will simply get four emails a year with valuable economic perspective.

All part of our mission; to make you comfortable within your own finances.

Washington’s Thelma & Louise: The Political Cliff

Remember the ending to the 1991 film Thelma & Louise? In a commentary commemorating the films 20^th anniversary, NPR's All Things Considered said

"The movie became famous as much for its ending as its cliche-busting. In the closing scene, the women decide not to face justice, but to "just keep going," gunning the green T-bird over the edge of the Grand Canyon, into a soaring freeze frame."

In case it's been a while, re-watch that final scene

The Political Season is now open and everyone is abuzz with predictions and concern over the Presidential race. This week we had the first Presidential Debates, but last week I had the good fortune of hearing Andy Friedman of The Washington Update provide his political insight, predictions, and analysis. Yes, he did make predictions on the election and then spoke about the impact his predictions for both the White House and Congress, but I was more interested in hearing his views on the so-called Political Cliff; our present day Washington version of the ending to Thelma and Louise.

As tax issues have presented and Congress sought legislative compromise, our politicians have settled for short term solutions to long term problems and have metaphorically kept kicking the can into the future. Well, unless the Mayan's are correct, the future is almost here and according to White House Chief of Staff Jacob Lew, this sets up a "perfect storm for December 2012." The term Political Cliff refers to the expiration of the Bush era tax cuts. Unless Congress acts, the top income tax rates will rise from 35% to 44% for ordinary income, from 15% to 24% for capital gains, and from 15% to a whopping 44% for dividends. Additionally, the estate tax which is currently sheltered for estates under $5 million will see the exemption decrease down to $1 million while the top estate tax rate will simultaneously increase from 35% to 55%.

At the first debate, moderator Jim Lehrer announced his intent for the candidates to point out their differences. In the process, some similarities were discovered. Neither candidate nor our officials in Congress deny that there needs to be an increase in revenue. The disagreement is on how to get it. The majority consensus is to let the Bush era tax cuts expire on the "wealthy" but no one can seem to agree on who is wealthy. Additionally, the Republicans are bound by their pledge to "never raise taxes". If they were to agree to legislation which extended the Bush era tax cuts for some, but not all, that would violate their pledge. Instead, Andy Friedman predicts that the Republicans would rather let the tax rates increase through the expiration of the Bush era tax cuts and then, in early 2013, they can ride in like a knight in shining armor and lower taxes for the majority of taxpayers. Keep in mind the net effect is the same, but through Washington colored glasses dealing with the issue in 2012 is a tax increase, and waiting to 2013 to do the same thing is a tax decrease.

I, personally, am not too concerned about the economic effects of the fiscal cliff. It would be a burden to the economy; tax increases always are. I do worry that our economy is growing so slowly right now that any additional slowdown could result in a mild recession, but it would not be systemic and would likely recover as fast as Congress could act. I am concerned over the market's reaction to a fiscal cliff. I fear that the market may correct in a panic. It would be an over-reaction and I believe the market would likely recovery quickly, but the wounds of the 2008 financial crisis are not fully healed and one over-reaction could lead to others.

The news is not all bad. Once the election is over and the tax environment is no longer uncertain, I think the economy will finally break free of the bonds holding it back.

You need to understand the risks and volatility of your investments. Know that anytime you have concerns, we are here for you. If you want to discuss your investments, your needs, and your risks, give us a call for a complementary consultation.

2012: The Beginning of the End

It is October, fourth quarter, the beginning of the end of the year. Are you ready?

Here is what you should consider:

Investments

• Clarify your investment goals and expectations
• Revisit income and savings objectives
• Review asset allocation

Taxes

• Review sales of appreciated property including real estate, a business, or artwork
• Collect cost-basis information on securities sold
• Tax harvesting: maximize tax advantages by reviewing realized and unrealized gains and losses
• Plan charitable contributions
• Check loss carry-forwards from 2011
• Identify transactions that could improve your tax position
• Maximize income in 2012; unless Congress acts tax rates may be significantly higher in 2013
• Project year-end tax refund or payments due
• Claim potential tax deductions or credits before year-end

Retirement

• Analyze potential Roth IRA conversion scenarios
• Maximize IRA / 401(k) contributions including catch-up provisions
• Explore self-employed retirement plan options
• Take required minimum distributions from IRA's
• Plan overall retirement income strategy

Insurance

• Identify material changes in life, business, or financial circumstances that might require adjustments in coverage
• Shop life insurance, health insurance, and property & casualty coverage to see if current plans are cost competitive

Health

• Maximize contributions to Health Savings Account (HSA)
• Review medical insurance deductible. If not met, consider postponing non-essential medical care until 2013. If met, consider the opposite
• Spend remaining amounts in Flexible Spending Accounts (FSA)
• Take advantage of the Medicare Supplement open enrollment period

Milestone Ages

• Age 50: Now you can make catch-up contributions to IRA's and some qualified retirement plans
• Age 55: If retired, you may be able to take distributions from 401(k) plans without penalty
• Age 59 ½: You can take distributions from retirement plans without penalty
• Ages 62 – 70: You can apply for Social Security benefits
• Age 65: You can apply for Medicare
• Age 70 ½: You must begin taking Required Minimum Distributions (RMD's) from IRA's

Family

• Consider contributions to education accounts
• Reduce estate value by making tax-free gifts to family members
• Review and fund trusts

Significant Changes

• Did you move?
• Did you transfer any financial assets?
• Did you refinance a mortgage?
• Did your employment or income change?
• Has there been a change in marital status?
• Did your family grow through birth or adoption?
• Was there a death in the family?
• Do you have a parent or other family member in need of assisted living?
• Is there a severe illness in the family?
• Did you receive a gift or inheritance?

If you have any questions or concerns, we would be happy to discuss possible outcomes for 2012 and 2013. Call 515-255-3354 or send an email to schedule a review.

Photo New Years Eve by conwil

Take it for a Test Drive

The feedback from the early adopters of our new web-based client portal is extremely positive and constantly getting better as clients dig deeper into the site's features. The hardest part of the whole process is getting an understanding of exactly what the system is and what it does. So we have created a sample set of data you can use to log in and experience the portal first hand.

Here are the instructions to take our site for a test drive:

1. Go to www.dvfin.com
2. Click red Client Login button in the upper right hand corner

1. From the login screen enter username DVsample and the password Just2Look (case sensitive)

1. This brings you to the Client Home page

Now you can go ahead and just look around and play!

Since this is a sample set, there are two key functions which are not enabled. First, there are no live data feeds (funny, we couldn't get any outside companies to give us "sample" accounts to draw a live feed from). Because there is no live feed from a bank account or a credit card, there is nothing the system can draw from to analyze spending or budgeting so those functions are also disabled.

If you would like to do a telephone walk through of the sample data, just let us know. We would be happy to show you the entire portal.

The Game of Politics and Your Money

In some ways, the political season is very much like football season. The press peppers key players with questions in the hopes of getting a few moments of sound bites around which they can construct a story. As the temperature drops the heat steadily increases until a victor ultimately emerges. But in some ways politics can be even more exciting than football. After all, if your favorite team wins or loses how are you affected? Maybe pride or bragging rights but those things are relatively unimportant in the grand scheme of things. The issues currently facing us on the national political landscape will affect everyone and there is much discourse from both sides why their candidate is the better choice.

While I try to maintain a professional, apolitical neutrality, I have heard from many clients (both Republican and Democrat) why they fear the opposition. Most of these discussions are financially relevant as the client wants to position themselves (and their investment portfolios) to be protected against a political "loss" and to benefit from a political "win".

A recent article by Knowledge@Warton, Back to the Future: What's at Stake for the Economy in the Obama-Romney Contest provides a well-constructed perspective by three Wharton School of Business professors that it does not matter who wins. Whoever occupies the White House for the next four years has a number of challenges to face; many of which are more influenced by a divided government in Congress than the leader of the Executive Branch.

The moral of the story is one we have professed for decades; your investment allocation should be based on your needs, goals, and risk tolerance. Everyone can make a good prediction occasionally. No one can make an accurate prediction every time. Portfolios which are driven by short term market timing often perform poorly in the long run.

DSCF0048BYU vs. Notre Dame Football Game at Notre Dame photo by bterrycompton

Barack Obama vs. Mitt Romney 2012 photo by DonkeyHotey

It’s Alive!

No, I have not fallen off the face of the planet. I have been hard at work on two projects.

The first is our new website, www.dvfin.com. It very recently went live and we are proud of the result. The home page features a feed from this blog, a sign up for free quarterly economic updates by email, and access to our new web-based client platform (more on that later, that is project #2).

Explore the site. You can find information about our financial planning, investment management, retirement income planning, estate planning, education planning, life insurance, disability insurance, and health insurance services for individuals as well as how we do 401(k)'s, exit planning, and group benefits for business.

We would love to hear your feed back. Let us know what you like about the site by using the Contact Us feature or by posting a comment below.

The second project has been our new client portal. For a brief overview, play the movie which is part of the slideshow on our homepage. The feedback we have received on it has been terrific. One client emailed:

I like the software more and more.  It is similar to Mint, but is a bit easier to use.  But the real differentiator to the software is the advisor behind it.  And I'm not saying that to be cute....really, it makes a difference if you have experience to guide you through what the numbers mean.   It feels good to know that even if I blow off my finances for the next 30 days that you are there to get my back.

And another emailed me on a Sunday evening:

Sitting here with a glass of wine tonight and finally logged in...love the website!!!

When a client spends Sunday evening relaxing with a glass of wine and reviewing their finances, I know we have done our job well.

Now that these projects are live, it will be back to our regularly scheduled writing. Enjoy the long weekend.