facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause

The Northern Star Newsletter Boilermaker Retirement Report

The Northern Star Newsletter Boilermaker Retirement Report

Message from Jon

Fed to raise interest rates, now what?

In our private client newsletter, I had included an excellent article from Durand Capital that demonstrated the historical reactions in the markets to a rate hike dating back to the early 80's. What was demonstrated was quite contrarian to many media pundits who have suggested that as interest rates begin to rise, the markets will begin to fall.

As a matter of fact, just the opposite happens. Rising interest rates indicate a strengthening economy which is rewarding for a great many of the public companies who are traded on the exchanges. As the economy strengthens, the bottom line also strengthens as seen by way of healthier earnings reports and jobs data. This in turn promotes confidence and in turn entices investors to make investment.

As a result, we historically have seen an average rate of return of over 7% return in the S&P 500 following a rate increase. As you know though, the markets do not go straight up or straight down so this historical return is over at 12-18 month period. We are still long-term focused for clients. Seeing this happen historically, we have begun to realign client portfolios to take advantage of just such an action.

New Tool:

We are always striving to bring the best and brightest tools to bear for the benefit of our clientele. in Sept of 2014, we beta tested the risk analysis tool named Riskalyze. This tool was without doubt one of the best client friendly tool we have invested in for quite some time.

A new enhancement now allows us to management investments on behalf of clients in such a manner as to exactly tailor their investment portfolios to match their baseline level of risk which is measured by the client using mathematical algorithms. In laymens terms, we can tailor fit your investments to exactly match your risk in a manner to maximize your risk vs return ratio.
Unlike any other method of investing, this one offers clients a completely customized portfolio and the managers to maintain this experience on a consistent basis on their behalf.

As you might guess, we are super excited about what this means for our clients and prospective clients going forward.

Till we speak again in the new year, our hope is that each and everyone of you are able to spent the holiday season with friends, family and loved ones!


sources: Durandcapital 

The Language Barrier

The biggest issue of investing is the language for most people. In this section, we will be striving to improve this for our readers by doing investing/economic terms per issue.

1) Tax Loss Selling:
A type of sale whereby an investor sells an asset with a capital loss in order to lower or eliminate the capital gain realized by other investments. Tax selling allows the investor to avoid paying capital gains tax on recently sold or appreciated assets.

2) Estate Planning:
The collection of preparation tasks that serve to manage an individual's asset base in the event of their incapacitation or death, including the bequest of assets to heirs and the settlement of estate taxes. Most estate plans are set up with the help of an attorney experienced in estate law.

3) Donor Advised Funds:
A program of a public charity that allows you to make an irrevocable contribution and then recommend grants to qualified nonprofit organizations on your own timetable, often with the ability to remain anonymous.

1) http://www.investopedia.com/terms/t/tax_selling.asp
2) http://www.investopedia.com/terms/e/estateplanning.asp
3) http://www.fidelitycharitable.org/giving-strategies/give/donor-advised.shtml

Fidelity News! 

Social Security strategies for couples:

The new rulebook

How spouses can maximize their benefits as some popular claiming tactics are eliminated.

  • By Anne Tergesen,
  • The Wall Street Journal
  • - 11/19/2015

Congress recently put an end to a pair of Social Security-claiming strategies that couples have used to add tens of thousands of dollars to their lifetime retirement incomes. Now, spouses who want to maximize their benefits will need to become familiar with the next-best claiming strategies.
For spouses who both have significant earnings, it will generally make sense for the higher earner to...

Click Here to Read the Whole Article



Retiring at different times?

How couples can manage the emotional and financial aspects

Retirement planning can be challenging for anyone, but when you're part of a couple, every decision has an extra dimension. This is particularly true if you and your spouse or partner want to retire at different times.


Summit Financial Group of Indiana is an independent financial planning firm located in Lafayette Indiana.  We are a firm that is operational with TIAA-CREF and Fidelity allowing for the creation and implementation of a customized financial plan for Purdue Faculty & Staff regardless of which platform you are using.

Check the background of this firm/advisor on FINRA’s BrokerCheck.