Newsletter Archive

Newsletter Blog and Library

  • May 2012

    Financial Planning in a Complex World -   Money matters can be a significant source of stress for individuals and their families. News of the recent overwhelming trading losses at JPMorgan (a firm that has heretofore been considered an industry icon in risk management) is a tell-tale reminder of the vagaries of the financial markets. Adding additional stress is the European situation which, again, has cast itself into the limelight as Greece contemplates leaving the EuroZone and Spanish banks are struggling.

  • April 2012

    Prediction Addiction - A COSTLY APPROACH Earlier this year, Harry S. Dent Jr., advisor and author of The Great Depression Ahead, predicted stocks would start to plummet in June. He noted that personal spending is 70% of the economy and that, over time, as baby boomers become elderly, their personal spending will dive.

  • March 2012

    The March 14 Op-Ed piece in the New York Times entitled “Why I am Leaving Goldman Sachs” reinforces the bedrock values that Pauley Financial was founded on. In professional circles, we often talk about a "client-first" attitude, which is shorthand for giving your clients the same quality of financial advice that you would give your mother. It's a useful shorthand way to navigate through a financial world that is still beset by incentive payments, expensive rewards for sales production, under-the-table or soft dollar incentives, and a host of other ways that product vendors try to buy their way into your portfolios.
  • February 2012

    Focus on IRAs - Individual Retirement Arrangement is the technical IRS term for what most investors have come to call Individual Retirement Accounts or (“IRAs”). [Note: this article does not address SEP-IRAs – simplified retirement plans for the self-employed.] As the tax deadline of April 17th for 2011’s calendar year contributions approaches, we are writing to ask our clients and friends to focus on this annual opportunity before it passes again.

    Our Fiduciary Standard - Perhaps you missed the announcement, buried on page C7 of the January 24, 2012 issue of the Wall Street Journal, but it caused a stir in the financial planning world. The Securities and Exchange Commission has put off implementing a key part of the Dodd-Frank Act: creating a fiduciary standard for all who give investment advice, whether they are brokers (like Goldman, Merrill , UBS, etc) or SEC-registered registered investment advisors (like PFSI).

  • January 2012

    A Cork on the Sea  We don't subscribe to Money Magazine because it is normally replete with articles prognosticating about the future, the "Best Stocks for 2012", "Secrets of Picking Stocks", etc. Of course, you know by now that we are not market-timers and don't pretend to be able to predict the future. However, since it happened to be at arms-length during breakfast, I flipped through it and was pleasantly surprised to read "My Brilliant Trade".

    Tightwads and Spendthrifts  At Pauley Financial, we have kicked off the new year with a valuable addition to our team. We are honored to welcome Brian Cox to our firm as we continue to challenge ourselves to provide better service to our readers and clients.At Pauley Financial, we have kicked off the new year with a valuable addition to our team. We are honored to welcome Brian Cox to our firm as we continue to challenge ourselves to provide better service to our readers and clients.

  • December 2011

    Retirement 3.0 - Culturally, the very meaning of “retirement” is changing out of necessity and desire, and, I don't think that's a bad thing.  Before 1930, people generally worked until they died - "retirement" per se didn't exist. From 1930 to 1970, retirees began living longer, and the notion of “retiring” became part of our culture. From 1975 to 2010, as more cruise lines and golf courses marketed to them, people came to view “retirement” as an “entitled period of leisure.” Today, life expectancy continues to increase, but many can no longer afford a long, luxurious retirement; and, a large number are re-examining their preconceived notion of “retirement.”

    Wrangling Over a Phantom Stimulus - The headlines are screaming again, this time about the Capitol Hill controversy over payroll tax cuts. And, as usual, there is more to the story than what you're reading.

    "Time-Out" is a method many adults use with children who need a few moments to regain composure before returning to an activity that had been causing them some kind of stress (i.e. toy sharing, not winning, etc). While this may be an effective re-directive "pause" for children, I suggest to you that it is NOT an effective investment strategy.

    Occupy Wall Street - the Big Picture.  My step-son asked last week what this "Occupy Wall Street thing" was all about. He's a Boy Scout so the “tent cities” on the news caught his eye. I mumbled something about it was a grass-roots effort to bring attention and correction to the corruption in many of our financial institutions.

  • November 2011

    Last week, while many of us were eating turkey, our country's elected representatives were busy disagreeing on the shared bounty (tax money) resulting in a complete failure of the "Super Committee" to reach a meaningful deficit reduction plan. (Raise your hand if you are surprised!)

    Kimberly and I continue to evolve our conversations on the family’s estate planning with our children and our parents with age-appropriate provisions taken into consideration. I encourage you to do the same.

    Most of us know someone who is (or will be) going to college. This newly released information from the College Board helps us better understand the current costs of a college education.

    Yes, you’ve heard us say these things before, but days like today make them seem to be worth repeating.  See the statements and the supporting charts.

  • October 2011

    Do you really understand hedge funds?  If think you'd find yourself mumbling an answer to this question, take comfort in knowing that you are not alone.

    We are pleased to release the annual PFSI Year-End Planning Checklist! We have approximately 2 1/2 months to take advantage of planning opportunities to assist you in achieving your overall financial goals.

  • September 2011

    The RetireMentality - A "Research from Rand" report, two years old now, says that 44% of retirees worked for pay at some point after retirement, that 83% of baby boomers intend to keep working after retirement, and 14% of those currently working say they'll never retire. Fifty percent of retirees will follow a “nontraditional” retirement path that will involve partial retirement or no retirement at all. Mitch Anthony calls this an "un-retirement trend."

    The Roller Coaster - Market volatility continues to dominate our financial news and media offers us endless reasoning and prognosticating about the market movements - in both directions.

    Five Star Wealth Manager - We are pleased to announce that Doug was once again honored with the FIVE STAR Wealth Manager award by Texas Monthly. This marks the third year in a row for Doug! Thank you to all who nominate and vote to make this a reality!  Also, market volatility continues to make headlines.

  • August 2011

    Bi-Polar Investing and Twitchy Traders - It seems that virtually everybody agrees that - during the last few weeks - the investment markets have been ruled more by emotions than logic. But, as we watch the markets rise and fall like giant ocean swells, it's fair to ask: how, exactly, does this happen?

    Maintaining perspective - The “drama” of last week is still fresh in our minds leaving emotionally-based investors very jumpy. We hope the informational emails we send out during times of high market volatility provide some rational thoughts and perspective to counter the hyped-up media sensationalism that is applied to a passing moment in time.

    Questions and Answers Regarding Today's Market - As you no doubt heard in the media echo chamber, the U.S. markets recovered in dramatic fashion on Tuesday after the Monday free-fall. By the end of the trading day, the S&P 500 index was up 4.74%, and the technology-heavy Nasdaq index was up 5.29%. This helps to offset the roughly 16% drop over the past 11 trading days.

    America's Tarnished Credit Rating -  By now, you've probably heard that the Standard & Poor's debt rating agency has downgraded all U.S. government debt with more than a year of maturity, from the top AAA rating down to AA+.

    You CAN be prepared! Over the last two weeks, the markets have prepared for and reacted to US debt “deal.” Obviously, it is fooling no one as the markets have shed all the gains made this year during that time period. It’s short on substance and doesn’t address the “big” problems.

  • July 2011

    July Newsletter:  we look at concerns over the conflict of interest politicians have in addressing the debt ceiling issue and ideas for keeping Social Security solvent.

    Playing Chicken With the Debt Ceiling - As August 2 approaches, you'll likely hear increasingly urgent debate over the nation's debt ceiling – the folks in D.C. love a deadline (and coming up with shortsighted 11th hour solutions!).

    Deciphering Health Savings Vehicles - Health savings accounts (HSAs), Archer medical savings accounts (MSAs), health reimbursement arrangements (HRAs), and flexible spending arrangements (FSAs) are all personal health accounts that may help you control your health-care costs. But trying to figure out what's what can be confusing. Here's a brief description of each type of account, including some of their major features and benefits.

  • June 2011

    Our June Newsletter provides insights on the positive financial impacts of delaying retirement.

    "It’s different…but still the same": an adaptation of a blog post from Eleanor Blayney reminding us of three basic financial rules for folks of any generation.

    "The Taskmaster Premium": an adaptation of a blog post by Seth Godin provides food for thought on "working for someone else" versus "working for yourself".

  • May 2011

    Boomerang kids? They are growing in number! See our newsletter about what is happening among adult children, along with a note on our government's game of Playing Chicken with the Debt Ceiling.

    Welcome to May – the Month of the Graduates!  Know a graduate in your life?  Odds are good you do. 

  • April 2011

    Our April Newsletter reviews the discussion swirling around a possible downgrade in the rating of U.S. Treasury bonds.  We also present a comparison of our national debt to China's surplus.

    The ABC’s of A/B and A/B/C Trusts…What’s Right for You? If you're married, a combination of trusts, often referred to as A/B, A/B/C, or A/B/Q trusts, may be useful for estate planning purposes. The combination of trusts can sometimes be used to minimize total estate tax for two spouses, and can provide nontax benefits as well.

  • March 2011

    Recovery:  Two weeks ago, the world celebrated an unusual two-year anniversary: 24 months from the low point in the global markets, the point of maximum pain and panic following the 2008 economic meltdown and so-called Great Recession.

    "The 10 Secrets of Success" - These were taken from an Investor’s Business Daily article years ago. “Investor’s Business Daily has spent years analyzing leaders and successful people in all walks of life. Most have 10 traits that, when combined, can turn dreams into reality.”

    Also, in "What Do You Tell the Kids?", if you're lucky enough to have “grown smarter” as your children (or any young adults) have moved beyond their teen years and through their twenties, you might be lucky enough to be asked this question: "Should I save money for retirement, a down payment on a house, or for my kid's college education?"

     

  • February 2011

    "Have You Thought About It?Ten questions to ask yourself and your loved ones regarding life during retirement.  Adapted from an article that appeared in February 17th edition of Financial Advisor Magazine authored by Robert Laura.

    "Popular indexed annuities called 'terrible ideas' for seniors.  High hidden fees, long surrender periods just some of the pitfalls."  By Bloomberg News January 30, 2011

    Our February newsletter gives a graphical explanation for why we DON'T try to time the markets.  Also, a reminder about the slightly later-than-usual date for filing of federal tax returns, and we're proud to announce that Doug is discussing ethical wills with another professional organization.

  • January 2011

    If you need to know a financial or tax number for 2011, we think it highly likely you'll find it in this attachment! If you don't let us know, and we'll find it for you.

    Should we listen to the "permabears"?  Our newsletter gives a reality check on those who constantly cry wolf.  We also are introducing a new service called Capital Advisory Service which may be a great fit for you or a loved one.

  • December 2010

    It's that time of year again when students are working hard on college applications and are facing decisions, decisions, decisions!  Parents are working hard, too, on how to pay for the ever-increasing cost of higher education.  Chances are, you or someone you know is or will be attending college soon.  Feel free to share this article with anyone you feel might benefit. 

  • November 2010

    The College Board has released new college cost figures.  Read about this and find links to year-end planning documents in our November newsletter.

  • October 2010

    Have a family business you'd like to transfer to your children?  Managing relationships, financing and taxes all come into play. See the article inside this month's newsletter to learn more. Our October newsletter contains current financial and market news, as well as an article about the views and expectations on the economy from a former White House director of economic policy.

  • September 2010

    Our September Newsletter is now available featuring updates on FDIC Insurance - an easy way to further protect your assets. Have you done all that you can to take advantage of year-end tax planning moves?  See our annual "Year-End Planning Checklist" inside for reminders of things you can do now to ensure you have maximized your planning strategies before December 31, 2010.

  • August 2010

    Think you know the Top 10 Retirement Tips?  Some, I'm sure you do.  Others you might be surprised.  Check out these quick and sensible tips from Paul Merriman. Which of your brains controls your thinking?  Do you have a "strong stomach" for the ride?  Consider this month's feature article explaining that we each have TWO brains that process the ups and downs of the markets.  Kimberly and I call these brains your 'emotional' brain and your 'logical' brain, and they each get a voice in every financial decision we make.  The author of this month's feature article, Understanding Both of Your Brains, does a better job of explaining how these "brains" affect your risk tolerance and how you make decisions about money and your resources. Best wishes to all those headed back to school from Kindergarteners to college students!  Enjoy the journey!

  • July 2010

    Are you ready to retire?  Your 15-Point Retirement Checklist is our feature article this month.  See our July Newsletter for this article and more. Looking for ways to protect the "dream under siege," otherwise known as attending college?  There are MANY ways to be creative about how to curb the cost of attending post-secondary education without succumbing to the "extreme borrowing phenomon" that is all too common of a way to fix this problem. We've included a few ideas to get you thinking...

  • June 2010

    Are YOU checking the stock market weekly/daily/hourly?  Is it meaningful?  A great article on the Hidden Source of Returns can be found in this month's newsletter. Our June newsletter has arrived with feature article: What have we (re)learned in the last three years? Ever wonder about those large wirehouse advisory firms vs. the custom, personal and objective service you receive at smaller, more elite financial advisory firms?  We've also included a summary of what Michael Patton writing for Investment Advisor magazine had to say in article "Four Keys". 

  • May 2010 - Roth IRAs, Portfolio Diversification

    In this month's Newsletter, we have featured an article by Ed Slott, one of the preeminent IRA experts in America - "12 Roth IRA conversion traps to avoid." Also, we answer the question: "Does Diversification Still Work?" Given the losses of 2008, some have begun to question it as a strategy...

  • April 2010

    Here in Texas the bluebonnets are out and they are resplendent this year! On April 2nd, I began my 15th year of helping people make important life choices. Truly, I am blessed to be working in a profession which enables me to help people, because that’s what I’m passionate about. So, thank you for providing me that opportunity. I am very grateful.... READ MORE

  • March 2010

    Ah – signs of spring (at least, in Texas)! Warmer temps, birds chirping and the sight/sounds of golfers back on the links! Markets have been more volatile over the last month or so, but that provides opportunities to rebalance with our disciplined, “buy low, sell high” strategy... READ MORE

  • February 2010

    This week’s winter storm has reminded us of how much we enjoy the heat during the summertime! Our Midwest and East Coast clients are digging out (or, just hunkering down), while the rest of us are listening to our teeth chatter. Hey, it’s cold for Texas! And, yes, it has even snowed here! READ MORE

  • January 2010

    All of a sudden, it seems like everybody in is talking about Roth IRAs and Roth conversions. What's the big deal? With traditional IRAs (and qualified plans like 401(k)s), the money goes in untaxed, and you pay ordinary income taxes whenever you take money out of the account... READ MORE

  • December 2009

    Alpha and omega… the beginning and the end… as 2009 draws to a close, 2010 is upon us. Of course, each day is a new day and we get to make choices about how we spend our gifts, graces, and resources (primarily time and money)... READ MORE

  • November 2009

    Happy Thanksgiving! The holiday season is upon us! Personally, Thanksgiving is my favorite holiday of the entire year – family, friends, food, football, and fun! In addition, it is an opportune time to give thanks to those who are important in our lives and to reflect upon our many blessings... READ MORE

  • October 2009

    Happy Halloween! (well, almost!) I am very excited about this newsletter - lots to share which we hope you will find valuable to you and your family. In this edition, we’ll look at market conditions and let you know how you can access our recently updated... READ MORE

  • September 2009

    Labor Day weekend for many marks the change from the summer to the fall season. For me, it marked something entirely different, but you’ll have to read more below to find out about that! This newsletter will introduce a series of upcoming newsletters describing a variety of ways to... READ MORE

  • August 2009

    As your summer winds down, I thought I’d take the opportunity to preview some tax information, some of which could affect decisions you make now and into next year. Additionally, I’ve provided a quick perspective on the recent upturn in the equity markets... READ MORE

  • July 2009

    Having been a member of NAPFA since I began practicing more than 13 years ago, I thought you’d find this education series of interest; so, I am passing along to add to your financial education… READ MORE

  • June 2009

    Do you remember when Alan Greenspan (former Federal Reserve Board Chairman) termed a recent market cycle as ‘irrational exuberance?’ Well, a relatively new field of economics – behavioral economics - has developed around this question, i.e. “ Why do investors sometimes act irrationally?” READ MORE

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