Daily Intent

Gone are the days of retiring at 62.

For those over 40 year old, this may be all too painful of a statement to read.  The retirement accounts that were earning nice returns over the last twenty years have decided to change course.  2010 as a goal for retirement has morphed into 2015 or 2020.  Dreading of the office for 1500 more days of one’s life.  What about the sailing around the world or a  trek to far off lands or Italian adventures?  This will have to wait.

However, tis not why I surface such a topic.  …Yes, I said “tis”.  Just felt right.

The real reason is to wake up Generation X to the reality in which we are living.  It is common for us to hear social security not being a viable retirement option.  Noted.  Pensions?  Tampoco.  Moreover, the stock market’s failings of late has permeated the concern that we’ll attempt to retire at the next stock market mishaps leaving us in the same situation as the aforementioned Baby Boomers.

What we don’t factor in is how science plays into our lives; how regenerative medicine will prolong our days; how cancer and aging will be a thing of the past; how powerful computers are allowing scientists to understand at dramatic rates how our bodies function, recover, and regenerate.  They will soon be able to turn on and off our cells.  Lose a finger?  Not a problem, we’ll grow it back.

My Grandpa Lydon wrote in his autobiography, “I lived my life one day and one season at a time, with long range goals limited to my eighteenth birthday when life in the military would take over.”

We have the opposing dilemma.  We could realistically live until we are 150 years old or even longer. Seriously.

What career path or paths are you going to take on in order to not only afford a life beyond 100, but to also enjoy yourself beyond this age?
 
Buzzword: Market Maven
“Slang used to describe a good investor who is “in-the-know.” It also implies opinion leadership.  In general, the term is used to describe consumers who have up-to-date information about products, places to shop, and different markets. This definition makes sense when talking in the context of the stock market.  “  -Investopedia

Fun fact: Maven is actually derived from Yiddish meaning “he knows”.

  Six Points to Ponder:

   1. Markets react poorly to the Senate’s passing of the Stimulus Bill.  All wait for the final tweaks and a signing by President Obama.
   2. All Markets are down on the week.  The Dow at 7788.  S&P 500 at 818. Nasdaq at 1515.  Oil at $34.
   3. Home prices, on a national level, in the 4th quarter reached 2003 levels.  Details on the exact affects of the Stimulus Bill on housing still vague.
   4. Retail Sales up 1% in January.  Better than expected.
   5. Bank heads speak to Congress.  Receive both praise and angry voices.
   6. The Lakers storm through the East taking down the Celtics and Cavaliers.  US Men’s Soccer took down our friendly neighbors to the South, Mexico, 2 - 0.

Positives:

    * Lowering oil prices will continue to make your travels cheaper freeing up funds for other purchases or even the novel idea, savings.
    * Rates are awesome.  Lowering home prices along with the consistently low interest rates are ever increasing affordability for aspiring home owners.  Plan.  Income Generating Assets are one way you will leverage your ability to live beyond 100.
    * People got outside their homes and made purchases in January.
    * Bank of America was thanked for stepping up, helping the government out, and saving us all from an even heavier market fall in their purchase of Merrill Lynch.
    * Southern Californians get to watch the NBA leading Lakers every night they play.  Exciting games, acrobatic plays.
    * The US Men’s Soccer team is one step closer to earning their right to the next World Cup.

Negatives:

    * Foreclosures and short sales are deteriorating equity for long time homeowners.
    * Lack of confidence is deteriorating stock portfolios.  Low rates are limiting our ability to earn strong, safe returns in CD and Money Market accounts.
    * The Stimulus Bill doesn’t have focus.  There are too many hands in the pot.  The reality of its effectiveness is waning.  I hope to have details for you at next week’s publishing.

Services: Financial Planning

I have contacts with trusted advisers.  Is now the time for you to get on a budget?  Call me and we’ll align you with a great adviser.

Local:

Romeo’s Run and Relay
Where: UCSB
When: 9am, Saturday, February 14th
Cost: $15 - $25
Why: Fun the 4 mile relay with your sweetheart or the best runner you know.

Live and Be Well,

Jeff Bochsler