The Telegraph has a great article the other day about the Bear Stearns bailout.

“If the Fed had not stepped in, we would have had pandemonium,” said James Melcher, president of the New York hedge fund Balestra Capital. There was the risk of a total meltdown at the beginning of last week. I don’t think most people have any idea how bad this chain could have been, and I am still not sure the Fed can maintain the solvency of the US banking system.”   

Fed’s rescue of Bear halted derivatives of Chernobyl

It is not my job to make you a better saver. Only you can do that. I have read many books on budgets, economizing, and the like. In summary, they all state the same concept. Spend less than you make! Watch the dimes and the dollars will take care of themselves. I feel all this is true but just as important, you must live within your means. Don’t buy things you don’t really need!
continue reading "How Much Should You Set Aside?"

So many of today’s top performing corporations have a well thought out mission statement. The effect of this mission statement on the corporation and its employees is enormous. Consider the alternative? Imagine expecting your employees to do a good job when they are unsure of what their job is. That is the purpose of a good mission statement. It helps get everybody on the same page and keeps them there! 

Take time and think out what you really wish to accomplish. Think and breathe it. Go to a place within you and dare to dream. Feel with emotion and think with logic on what you really hope to accomplish in this life. Then dare to write out that dream on paper.
continue reading "Developing Your Own Personal Mission Statement"

In our June newsletter (Heads or Tails) I mentioned that I was nervous about the Federal Reserve not dropping interest rates. Well, they have. At first it seemed that the new Fed Chairman was going to play a game of chicken between his views and the U.S. Economy. Well, that scenario never did fully play out, thank God. As I see it, the Federal Reserve had to drop interest rates to spur on the current economy at a time when everybody doubted themselves. They could lower rates and restore confidence or wait and create a large ugly mess. Also, by waiting they would have allowed the economy to slip into a recession just as inflation was picking up. That, if you recall, is called stagflation and it isn’t pretty. Now, by lowering rates they will spare themselves the punishment of having to lower interest rates 2 to 3 points later.
continue reading "The Markets Keep Moving"

The question lately is which way is the stock market moving? Well, first off, we need to determine which way the economy is moving. Usually, I am not at such a loss for sensing which way the economy is going. However, on one hand there are many positive indicators and on the other hand there are many negative factors. I understand the frustration of an economist in the sense that they spend their entire life studying the markets and even then they are usually only half right. If you had that kind of track record in most businesses you would be sitting in the unemployment office.
continue reading "Heads or Tails - Special Economic Report"

Great news! The hot weather is upon us. My wife says it is hotter here in the summer than in her home country in South America which sits on the equator. How is that possible? The hours of sunshine we have here in the summer really heats us up!

Here in Michigan we go from cold to hot. A few weeks of more temperate weather thrown in just to increase the cost of our wardrobe. The reality here is that you need two or three different wardrobes just to get by. You need thick warm winter clothing to survive our long winters, fashionable summer wear such as shorts and sandals to survive our hot summers, and then, of course, nice stuff for in between. So my wife is correct, there is always more shopping to do!
continue reading "It’s Hot Out There!"

The words “lifetime guarantee” or money-back guarantee” are on many products we buy. But when was the last time you based your decision to buy on the type of guarantee a product offered?

In recent years, many variable annuity contracts have begun to offer certain “living benefit” guarantees. In fact, more than 85 percent of variable annuity contracts sold today offer one or more living benefit guarantees.

If you are concerned about market volatility or running out of money in retirement, you might want to learn more about the guarantees available with some variable annuities for an additional cost.
continue reading "Guarantees you can Live with"

Getting people to make a decision is the number-one problem financial professionals face when working with their clients, according to a recent poll.

Of the three main barriers that most people face when trying to reach their financial goals - taxes, inflation, and procrastination- the first two are practically guaranteed to occur, but the latter has the potential to be the most costly, yet is the easiest to overcome.

Why do people procrastinate when preparing for their financial future? Here’s a look at some common reasons.
continue reading "Procrastination: Your Costly Foe"

Mark your calendars for our fourth Annual Open House and Wine Tasting Event. It will be held on May 3, 2007 at our Livonia Office. We will start off with healthy appetizers and such then some decadent desserts from my favorite bakery Elite Sweets at 4:30 and then start our wine tasting in earnest at 6:00. Please feel free to invite a friend or two, especially that rich uncle of yours that is looking for a good financial advisor! Many smiles.
continue reading "Seasons Change"

In May 2006, a new tax law passed that has the potential to affect investors of all stripes. Because the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) received only brief attention from the news media, you may have overlooked some of the changes. It’s important to understand how this new tax law applies to your situation. The fact that you are reading this means you will almost certainly be affected by some of the major provisions.
continue reading "Did you Miss the News?"