Money Matter$

Adam always seems to be tweaking his investment method madness. Recently he decided to simplify his clients’ pie charts to only three slices (asset classes) to allow for increased opportunistic monetary benefits. Say what? Imagine you are a caterer. You provide a menu for a mid-summer event, and dessert is listed as BAKED PIE. How vague, right? How lame, right? Au contraire! At event time, you will choose the very best of the season. Fruits at their peak ripeness! Locavore pies! Wonderful, bursting-with-flavor summer pies! If tree fruits are not in season, then you will go with berries.

The 529 College-Savings Plan is a neat planning vehicle, but I want to highlight another legacy building idea: the Roth IRA for children. We have one business-owner client that has been able to contribute to their son’s Roth IRA since he was born (A young Roth IRA account owner can only contribute up to 100% of ‘earned income’, or $5,000, whichever is less). We are eager to see the value of his account at age 59.5, after which he can take TAX-FREE withdrawals.

Thank Dodd for taxes. And Frank—Barney Frank—the infamous former Chair of the House Financial Services Committee, who so badly wanted every American to own a home that I feel he bears much of the responsibility for the recent housing crisis. In 2003, he said about Fannie Mae and Freddie Mac, now under the stewardship of the government and being fed billions of taxpayer dollars every quarter, "These two entities are not facing any kind of financial crisis.” Frank also stated "I do not want the same kind of focus on safety and soundness [in the regulation of Fannie Mae and Freddie Mac] that we have in the Office of Thrift Supervision. I want to roll the dice a little bit more in this situation towards subsidized housing." In July 2008, Frank said in an CNBC interview, "I think this is a case where Fannie and Freddie are fundamentally sound, that they are not in danger of going under.”

Hey, it’s January and the holiday spending season is over, but let’s talk shopping! And specifically: shopping at home. What fun! Especially for retirees. You are probably visualizing lounging in jammies, bottomless mug of decaf in hand, perusing QVC, Amazon, The Shopping Channel, and eBay, just to name a few. Well, no. Sorry. In true New Year’s Resolution spirit, I say, it is time to get serious, and tighten that money belt!

Most of us have heard the predictions. Crude oil is a finite resource and the world is running out. Oil plays a role in everything we consume, and the price influences the cost of any product. Consider an example of a box of cereal, Corn Flakes. Let’s start at the farm where the corn is grown:

Last month, the North American Securities Administrators Association (NASAA) came out with their annual list of financial products and practices to which unsuspecting investors fall prey. At the risk of losing your interest, I’ll shed light on just a few. On the list, you’ll find various forms of Ponzi schemes.