An Inverted Yield Curve and You

By Jay Pluimer, AIF® CIMA®

Friday, 16 August 2019

The big news on August 15th announced an impending recession due to an inverted yield curve. Some clients may have been surprised to see that as a major headline since there have been other headlines over the past few months saying the exact same thing, just without an 800-point drop in the market. The goal of this update is to explain what an inverted yield curve is and what it means for your investments.

What is an Inverted Yield Curve?

It’s important to start by differentiating the stock and bond markets from the economy. The markets react to what is happening in the economy and then try to predict what will happen next. In this case, the bond market has been reacting to slower global growth by paying less interest for long-term bonds. Usually, an investor expects to get paid more (higher yield) for buying a long-term bond because there is more risk and uncertainty than with a short-term bond. The headlines on August 15th reflect that 10-year Treasury bonds are paying less interest than 2-year bonds (which, for perspective, was accurate by 0.022% and lasted for less than a day). However, the yield curve isn’t 100% accurate in predicting a recession, nor can it predict when the recession will start or how long it will last. The yield curve inverted in late 1966 right before an extended period of economic growth and there was also a brief inversion in 1998 when the yield curve was very flat, similar to our current environment, which also didn’t accurately predict a recession.

When an Elderly Parent is Being Taken Advantage Of

By Kathy Longo, CFP®, CAP®, CDFA

Friday, 09 August 2019

When an Elderly Parent is Being Taken Advantage Of
A note from Kathy:

This is a hard topic. No one wants to think that a family member could take advantage--perhaps even steal from or willfully mislead--their parents. This article will help you wade through this challenging time. Rest assured, you aren’t alone. I was motivated to focus on elder financial abuse because so many of my clients have dealt with it.

Talking to a sibling or relative about the abuse will no doubt be very hard. But, in some cases, open communication and transparency may be enough to fix it. It may be as simple as putting limits in place and creating boundaries. Even in the simplest situations, people will get defensive and people will choose sides. You may need to take legal action, or even involve the police. This won’t be easy, but it’s the right thing to do. Follow the important public safety slogan: If you see something, say something. 


 

An Aging Population 

Two things are happening at once: people are living longer and more of that population suffers from a mental impairment. In fact, 1 in 3 seniors dies with Alzheimer’s or another dementia and between 2000 and 2017 Alzheimer’s deaths increased 145%. Over 5.8 million Americans are living with Alzheimer’s in America and by 2033 it’s estimated that an additional 3 million will be diagnosed. What that means is we have a large pool of Americans who are impaired and need help to manage themselves. Unfortunately, like all vulnerable populations, that opens them up to abuse.

Elder abuse, especially to those with a mental impairment, can be hard to police because this is often an isolated population. Even more challenging is that 60% of elder abuse is committed by a loved one or caregiver. Elder financial abuse and fraud loss can range from $2.9 billion to $36.5 billion annually, and considering that it tends to be self-reported, the numbers are most likely higher. 

How to Have an Amicable Divorce

Divorce. No one plans for it, no one marches down the aisle with it in the back of their head, but it happens.
By Kathy Longo, CFP®, CAP®, CDFA
Tuesday, 30 July 2019

How to Have an Amicable Divorce

If you are in the process of getting a divorce, you aren’t alone. In fact, while the rate of divorce has dropped, 39% of marriages still end in a divorce based on data from 2019.[i] The chances of divorce have doubled since 1990 for those over 50, in what is often called “gray divorce”.[ii] No matter your age, divorce is hard and considered one of the 7 most stressful life changes a person experiences.[iii] But that doesn’t mean that it has to be some knockdown, drag-out battle. It is possible, believe it or not, to have an amicable divorce.

You may think an amicable divorce is a fictional thing, sort of like staying friends with exes or Santa Claus. However, the truth is that two people can divorce amicably and civilly if they are willing to put in a little work and genuinely commit to ending the relationship on good terms. In this article, we will go over some steps on how to do that.

The Challenges Faced by Women in Transition

After many years in the financial industry, I have met countless women (and men) who have come to me in crisis. Whether it is divorce, loss of a spouse or loss of a career, these transitions can rattle you to your core.
By Kathy Longo, CFP®, CAP®, CDFA
Wednesday, 17 July 2019

The Challenges Faced by Women in Transition

In a marriage, you have spent most of your adult life dedicating your time to your family – your spouse. When that is pulled out from under you it can be hard to navigate your own emotions, let alone the practical administration of what you should be doing for your financial security.

There comes a time in our lives when things have maintained a status quo of sorts for so long that it can be hard to picture a life without what you once had. You have a new life that doesn’t look at all like what you thought it would and sometimes it can be hard to recognize – your life and yourself in it.

According to AARP, almost two-thirds of women in middle and older age have experienced some type of major financial transition.[1] While the transitions can vary from marriage to divorce to retirement or even losing a job later in life, the outcome can often be the same—you end up in a place where you may not know what to do about your finances or how to take the first steps.

When You Can No Longer Be The Family Caretaker: 5 Steps

By Kathy Longo, CFP®, CAP®, CDFA

Tuesday, 25 June 2019

When You Can No Longer Be The Family Caretaker: 5 Steps

When we are young, it seems we and our parents will live forever. We don’t tend to spend much time on the harsh realities of what living a long life entails. Now, a lot of people are getting firsthand experience with the challenges of caring for elderly parents. 

10% of adults aged 60-70 are caretakers to an elderly parent and the number jumps to 12% for adults over 70.1  

Caring for a parent is straining both emotionally and financially for a lot of people. There will often be a breaking point where the current arrangement is no longer tenable and the parent may need more care than the children can provide, perhaps forcing a move to a long-term care facility or hospital. This can be a difficult and challenging conversation for family members to have, especially dealing with siblings who all have different ideas of what is best. This article will cover 5 tips to foster positive conversations and hopefully leave everyone walking away feeling like they’ve made the best choice possible. 

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