Category Archives: Business Reports

By Jim Amell

After a decade of extremely low inflation, the rapid increase in costs of living we are experiencing has been difficult for most households, particularly retirees on a fixed income. 

Many retirees are facing declining income along with increased expenses. Our current economic environment also provides lessons for everyone on how to position their personal finances for their retirement. 

How should retirees respond so as not to be overwhelmed by increased cost of living? First, determine your monthly income. Social Security benefits have and will continue to increase at a rate roughly equal to the core inflation rate. Unfortunately, Medicare premiums withheld may also increase, leaving beneficiaries with only a slight increase in net social security benefits. 

Revisit your sources of income other than social security. The stock market has declined significantly this year, and whether your retirement savings are in a 401k/IRA/Roth IRA,  taxable investments, cash savings, or a combination of  the amount you can comfortably withdraw depends on the nature of your investments and income generated by those investments. If you withdraw from investments based on a fixed percentage of invested assets you will most likely be withdrawing less than in recent years. 

By Meghan Murray

If you’re like most people, your work has been a central part of your life. So, wouldn’t it be nice to have the flexibility to decide when you no longer want to work?

Many people of retirement age have achieved this type of control. In fact, two-thirds of workers ages 65 and older say they work primarily because they want to, not because they have to, according to a 2021 study by Edward Jones and Age Wave. 

But that means that one-third of workers in this age group feel financially compelled to work. This doesn’t necessarily mean they dislike the work they do — but it’s probably fair to say they would have liked the option of not working. How can you give yourself this choice?

You can start by asking yourself these questions: 

• When do I want to retire? You’ll want to identify the age at which you wish to retire. You may change your mind later and move this date up or back, but it’s a good idea to have a target in mind. 

• What sort of retirement lifestyle do I want? When you retire, do you anticipate staying close to home and pursuing your hobbies, or do you hope to travel the world? Would you like to spend your time volunteering? 

By Christy Alexander

Small businesses are key contributors to the vibrant communities that people want to call home. 

Fortunately, entrepreneurship in the U.S. is on the rise. But for these new businesses to have an impact, they must survive, and by focusing on some key areas, entrepreneurs can have the best possible chance to reach their goals and build thriving, sustainable businesses.

Entrepreneurship can be rewarding, and thoughts of independence are exciting, but the life of an entrepreneur isn’t a good fit for everyone. The truth is that running your own business is hard. It can mean long days of solving problems and taking responsibility for endless decisions. Conquering these obstacles requires passion and relentlessness. The first thing you can do to set yourself up for success as a hopeful entrepreneur is to carefully decide whether you’re ready, willing, and able to accept the challenges of entrepreneurship.

With so many challenges to manage, it’s easy to go adrift, so having a clear vision to guide you is critical. You need to develop a clear image of what you want for your business and your life. It is this clarity that will help you stay on track when you must make tough decisions, and a compelling vision that will inspire others to join you in pursuit of your goals.

Even with a clear vision, you’ll be required to wear many hats in your business. It can be draining, and you will be better off playing to your strengths than trying to work on your weaknesses. Assess your abilities and identify the tools you will need for success. 

by Kenneth J. Entenmann

As the world watches the events unfold in Ukraine, it goes without saying that what we are witnessing is tragic and the human toll is something that cannot be understated. Military action always brings uncertainty, and it is difficult to assess the full extent of the situation while it is unfolding. The Russia-Ukraine conflict is no exception, and it has resulted in stunning market volatility.

However, strictly from an investment and economic perspective, geopolitical events rarely cause major bear markets or recessions. The markets tend to view them like natural disasters. That is, they are highly regionalized, they cause significant loss of property and life, but tend to be short-lived. 

Historically, dating back to the Iraq invasion of Kuwait in 1990, there have been nine global military “interventions.” The time period from the onset of the event and the market bottom ranges from 0 days to 70 days. For example, the market bottomed out 10 days after the 9/11 attack in 2001. The average decline in the S&P 500 is -6.9 percent. Importantly, the markets tend to recover quickly. 

The average one-month return after the bottom is 2.2 percent, the three-month return is 5.4 percent and the one-year return is 13.5 percent. Like all geopolitical events, the Russia-Ukraine conflict is impossible to predict. That said, it is likely to follow history’s pattern for a few reasons.

By John Gable

It’s unfortunate but true: If you’re a woman, you face more obstacles than men in achieving financial security. And that means you may well need to put in some extra effort.

Just how serious is your challenge? For one thing, women still face a gender pay gap – based on median incomes, women earn about 82 cents for every dollar a man makes, according to the Census Bureau. 

This pay gap amounts to a nearly $470,000 difference in lifetime earnings, according to an Edward Jones/Age Wave study. Furthermore, when factoring in the career disruptions women face because of caring for children and elderly parents, that $470,000 becomes a $1.1 million lifetime earnings gap, according to the study. Finally, women tend to live longer than men, meaning their lifetime earnings must last longer.

Everyone’s situation is different, but these figures at least point to the challenges many women encounter. To help yourself, consider these moves:

• Pay yourself first. You always have to pay your bills – but, at the same time, pay yourself by moving money automatically from your checking account each month into a low-risk, liquid vehicle, such as a money market account or some type of cash management account connected with your investment portfolio. This move can help give you a “bucket” of money to use for any reason, such as the need to step away from your job to care for children or aging parents.

11/15/2021 Update
November print edition headline Dow 3,600 corrected to Dow 36,000 in online and virtual editions.

by Kenneth J. Entenmann, CFA

Well, we finally made it. The long-ridiculed prediction by James Glassman and Kevin Hassert in their 1999 book titled “Dow 36,000: The New Strategy for Profiting from the Coming Rise in the Stock Market,” has arrived.

It took a lot longer to get here than predicted, but we made it. The market has a habit of humiliating the great prognosticators of the world. But the central premise of the book remains based in the simple math of compounding. According to Wharton Finance professor, Jeremy Siegel, since 1802, equities have produced annual average total returns (including price changes and dividends) of 6.5 percent to 7 percent after inflation. In a recent Wall Street Journal article today, Mr. Glassman does the math, and it suggests we will have a Dow 1,000,000—in 50 years.

Unfortunately for market forecasters, the market never moves in a linear fashion and major disruptions can knock the markets off track, often for prolonged periods. In defense of Glassman and Hassert, few investors predicted the dot.com bubble, the Financial Crisis of 2008 and COVID. Yet here we are—Dow 36,000. The record is clear, there are no 20-year periods where equities posted a negative total return. It is a testament to the power of long-term, discipline investing.

Today, the equity markets have risen to record levels once again. As discussed on my Market Insights blog, these record levels have been achieved by incredible earnings growth, very benign interest rates and massive liquidity. The market is here despite a host of worries; COVID, dysfunctional government and the looming threat of inflation.

By Rose Miller

We found a cool place to vacation in Rhode Island this year. The owner calls it Goatopia. She has created a little slice of heaven beside the Sakonnet River.

She is a former dancer who took her dance studio and her artistic style to create a unique and comfortable guest house for visitors.

The house is surrounded by beautiful gardens where she also tends to chickens and goats daily. The goats have names and you can tell the Billy because he stands proudly on the tallest stump in the pen.

This place got me thinking about how employers tend to their flocks. As employers, we have a responsibility to understand who works for us and what we want people to do for us. Results can be achieved when understanding how employee traits translate into achieving goals.

But here’s the thing. Do you need a herd of goats or do you need a flock of sheep? They may look all the same but there is big difference.

The owner of the house likes goats because they are independent thinkers just like her. There is nothing ordinary about her place and it’s as colorful and whimsical as she is.