What Goes Up – Usually Goes Down

 Investing, Wealth Management  Comments Off on What Goes Up – Usually Goes Down
Dec 302016













It’s interesting to see the changes since the election.

The last few days have seen a bit of a reversal, but the last few days of the year are typically a little erratic. The proof will be in the pudding as we move through January.

The run-up in interest rates seems pretty dramatic, but they are actually not much different than what they were at the start of the year.

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The Election and Markets

 Investing, Wealth Management  Comments Off on The Election and Markets
Nov 142016

This is the Chart of the Day from the Wall Street Journal. It has quite a story to tell.


Of course the question is whether or not this will be the start of a new trend or a blip!


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 Investing, Retirement Planning, Wealth Management  Comments Off on Interesting!
Nov 142016

Number of the Day  –    2.301%
The yield on the benchmark 10-year Treasury note Monday. Treasury yields, which rise as prices fall, are hovering around their highest level since last December after recording their largest one-week gain in more than three years following Mr. Trump’s victory.

From today’s Wall Street Journal – This is quite the move – around a half a point.


Stock Market Returns by Presidential Term

 Investing  Comments Off on Stock Market Returns by Presidential Term
Nov 102016

I don’t put much “stock” in this type of information, but everyone looks for a trend or some miscellaneous piece of information to make their prediction.


In reality it has more to do with the economic climate they inherit from their predecessor, but it does make interesting water cooler conversation.

Low / Lowered Expectations

 Investing, Wealth Management  Comments Off on Low / Lowered Expectations
Sep 262016

This is not a good looking chart!

I’m not sure this is necessarily a bad thing, but it should almost certainly temper future expectations for stock prices.



The good news might be that the expectations are so low, it wouldn’t take much for this to be positive.

Negative Yields!

 Investing, Retirement Planning  Comments Off on Negative Yields!
Jul 112016

A few years ago it would have been unthinkable to even consider the possibility of negative yields.

It now appears that they make up about $10 trillion of $50 trillion in outstanding debt.

The ideal investment portfolio for a retiree is supposed to include a healthy dose of fixed income securities, but is that even a feasible concept given the current level of extraordinarily low interest rates?

How do you cope with “negative” interest rates?


Obviously no matter what course you choose you will take on more risk than you expected.

Managing your Social Security Benefits strategy is one way to reduce this risk as opposed to being totally dependent on equity investments.

But the bottom line is, a Five Percent Five Year certificate of deposit is not in anyone’s future. That conservative low risk reasonable income option is not out there and won’t be for quite some time.

If you have questions out the status of your retirement plans, please consider contacting Don Wettstein @don.dlwplanning.com.

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Building your Retirement Savings

 Investing, Retirement Planning  Comments Off on Building your Retirement Savings
Jun 292016

In relatively simplistic terms accumulating funds for retirement is conceptually quite simple:

  • Spend Less than you Make
  • Automate your Saving
  • Create a Diversified Portfolio
  • Have a Long Term View

With a reasonable amount saved on a regular basis appropriately invested, will get you to a comfortable retirement next egg.

Of course the sooner you start the better! With compounding of returns, time and money can work wonders even with today’s relative modest returns and volatility.

If we could all start saving with our first job, this would be a relatively easy task.

Unfortunately the real world isn’t necessarily that easy.

Therefore the first step is to actually earn enough to be able to save after covering the basic necessities.

If you have the basics covered, the next step is to manage your spending plan to be sure that long-term saving are part of that plan. Basically be sure you are paying yourself. This is where the automatic investment plans come in to plan.

Initially the growth of your retirement plan is going to primarily come from you periodic contributions. The annual earning will seem quite trivial, but after a few years the earning will become a significant element of your retirement account. At this step, it is very important that you have managed your account to minimize investment cost and invested in a manner that will let grow at a pace that is consistent with your risk comfort level.

Finally as you near retirement, you will want to review your investment options and consider what risks you are willing to accept with these funds. This doesn’t mean that you become ultra conservative your account as you, especially if you have a spouse, are likely to have a couple of decades of retirement living expenses to fund.

Michael Kitces in his blog on this topic describes these steps as: Earn, Save, Grow, Preserve.

If you have any questions or concerns about the status of your retirement plans, let’s get together.





 Investing, Wealth Management  Comments Off on Brexit
Jun 252016

Well the conventional wisdom was that United Kingdom would remain part of the European Union.
The “markets” don’t like uncertainty and they definitely don’t like surprises.
Friday was the reaction to the surprise.
Over the next few days / weeks we will see how the market reacts to the uncertainty.
In and of itself, not being in the European Union is not a disaster, but it will be unsettling at least until everyone figures out what’s really going to happen.
The real challenge may be to figure out the unintended consequences!