How Secure Is Social Security?
Unless you're close to retirement age, whether
you can count on Social Security benefits to help fund your retirement
is a concern. Currently, the system collects far more
in Social Security taxes than it pays out in benefits, but that
will change drastically as growing numbers of baby boomers retire.
At the end of 2003, the Social Security system had excess assets
of $1.5 trillion, invested in special-issue Treasury bonds. Starting
in 2018, the system will start paying out more in benefits than
it collects in taxes, so it will have to start using interest
and principal from its bond investments. Those assets are expected
to be totally depleted by 2042. At that point, unless changes
are made to the system, benefits need to be reduced by 27% to
equal revenues collected (Source: Social Security Administration,
2004).
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Using Diversification to Control Volatility
The past few years have taught investors
the meaning of volatility in investing. While investors weren't
that concerned about volatility before 2000, when it worked to
their advantage, the negative volatility of the past few years
has been much tougher to deal with. It has pointed out the necessity to look
beyond average rates of return to the volatility of those returns.
Even if your projections for the average rate of return are correct,
the pattern of those returns will affect your ending balance.
It is the compounded annual rate of return over your investment
period that will determine your portfolio's ultimate balance,
not the average rate of return.
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Start the New Year Out Right
A new year is typically viewed as a time
to reflect on the past year and to set new personal goals. But
it is also a good time to review your current financial situation,
resolving to make significant strides toward achieving your long-term
financial goals. Consider some of the following resolutions for
your 2005 list...
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Getting Ready for Tax Time
Although it might seem a bit early to start
thinking about your 2004 tax return, much tax-related information
arrives in January. Organizing this information as it comes in
makes the tax preparation process easier. While organizing your
tax records is not an exciting task, it's not an insurmountable
one either. Follow these tips...
[FULL ARTICLE]
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What Happened to Your Canceled Checks?
On October 28, 2004, the Check Clearing
for the 21st Century Act, called the Check 21 Act, went into effect.
Basically, this law allows banks to process electronic images
of checks instead of handling the actual paper checks. That change
will have a significant impact on your checking account...
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David K. Sebastian, CFP®, and his team of experts at The Physicians Wealth Management Group specialize in working with individual physicians and group medical practices. David is considered to be one of the top financial advisors in the country with more than twenty five years of Wall Street experience as a chief investment officer, portfolio manager, institutional bond trader, and estate planning, benefits planning and retirement consultant.
Commitment to his clients’ financial needs and well being is a primary motivation for David.
The Physicians Wealth Management Group was specifically created to address and manage all of the unique financial challenges that doctors are facing both individually and through their group medical practices.
Feel free to contact me at
www.physicianswealth.com or
dsebastian@sfr1.com
or call me at (973) 285-3600
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