FINANCIAL FOOD FOR THOUGHT JONATHON C. LEISE, CFP®, AWMA® EXECUTIVE VICE PRESIDENT/WEALTH MANAGEMENT WINTER 2014 PRACTICE The Philadelphia 76ers will officially retire Allen Iverson’s number “3” in a special halftime ceremony on March 1st. Iverson’s career included many moments that will stand the test of time. One of his most memorable moments occurred in May 2002 during a post-season interview following media reports that he had missed practice. During that interview he famously said, “We’re talking about practice, not a game, not a game, not a game, but we’re talking about practice. Not the game that I go out there and die for and play every game like it’s my last but we’re talking about practice man.” – Iverson would go on to say “practice” over 20 times in a two-minute period (SI.com, 5/10/2002). Arnold Palmer, considered one of the greatest golfers of all time, won 62 PGA tournaments, including seven championships and four Masters Tournaments. Despite his obvious talents, Palmer never took his game for granted. “It’s a funny thing,” he observed, “the more I practice, the luckier I get” (onwallstreet.com, March 2012). MEMBERS NYSE, FINRA AND SIPC In his bestseller Outliers, author Malcolm Gladwell says that it takes roughly ten thousand hours of practice to achieve mastery in a field. Gladwell studied the lives of extremely successful people to find out how they achieved success and found that the elite don’t just work harder than everybody else. At some point the elites fall in love with practice to the point where they want to do little else. Practice plays a major role in their success. Given the findings from Gladwell’s research, it stands to reason that if we want to be good at something, we should practice. That is why I encourage anyone who has not taken me up on my offer for a retirement “test drive” to call today to set one up. It takes a lot less than 10,000 hours and will provide you with a retirement road map to help you get on the right track – and stay on track – to reach your personal retirement goals. This retirement road map will help you make better decisions regarding your transition into retirement and guide you throughout your lifetime. Your retirement road map can help you to develop a better understanding of your retirement picture by providing answers to these important questions: What sources of income will I rely upon in retirement? Will my income and assets last for my lifetime? What expenses can I expect? What is a sustainable spending level? The 2010 Hartford Investments & Retirement Study found that people who worked with an advisor or financial planner were more likely to say they were on target to retire as planned compared to non-planners. Those who planned were more than twice as confident about their financial knowledge and capabilities compared to those who did not (onwallstreet.com March 2012). Call today to schedule your retirement test drive. I’m talking about practice! MAXIMIZING SOCIAL SECURITY Social Security has features of an ideal pension plan. It covers virtually everyone and is portable between jobs. It provides family life insurance and disability protection. THIS IS A PUBLICATION OF JONATHON C. LEISE. THE OPINIONS EXPRESSED DO NOT NECESSARILY REPRESENT THOSE OF JANNEY MONTGOMERY SCOTT LLC. 1717 ARCH STREET, PHILADELPHIA, PA 19103 Page TWO Furthermore, it has a permanent, strong sponsor in the federal government. As employers move toward defined contribution plans and away from traditional pensions, Social Security remains as the only source of guaranteed benefits for a large number of retirees. Social Security is not simple, and, as a result, many may be leaving significant amounts of money on the table. There are several strategies that could help you potentially add thousands of dollars to your annual income from Social Security. Call us to explore ways to maximize your Social Security payouts. We can help you decide when and how to collect retiree, spousal, survivor, divorcee, parent, and child benefits to achieve the highest lifetime benefits. LIVE LONG AND PROSPER The average life expectancy has increased by ten years between 1950 and 2010. This translates into the need for 120 additional monthly payments to help cover expenses. While Social Security is a significant source of income for many, others need an additional source of guaranteed income that they cannot outlive. Annuities allow individuals to “buy” a stream of income that they cannot outlive by handing over a portion of their retirement savings to an WINTER 2014 insurance company in return for the promise to pay them a monthly benefit for the rest of their life. Some of these annuities are for joint lives and some even have a cost-of-living feature. For an additional cost, variable annuities provide the same guarantees with the possibility of increased income if you achieve favorable investment results. The guarantees of all annuities are subject to the claims-paying ability of the insurance companies that issue them, but can provide comfort that one will not outlive their income. The longevity risk has effectively been transferred to a third party, and one’s cash pile has been turned into a cash flow they cannot outlive. HOPE LIVES HERE – STILL Shortly after her first birthday party a week before Thanksgiving, my granddaughter, Ally, developed a stubborn virus. When she became extremely lethargic, she was taken to Children’s Hospital (CHOP) where she was diagnosed as one of the youngest juvenile diabetics they have ever seen. Once again, I am amazed at the wonderful work being done at CHOP. Ally was sent home for Thanksgiving but returned for a few more days to stabilize her sugar levels and get the virus out of her. She is home now and mommy Cerissa, daddy Brian, and frequent babysitter Mom-Mom Debby are testing her sugar regularly, monitoring her diet and giving her insulin to keep her stable. She is doing well so far and is a happy baby. Pop-Pop loves when she gives him kisses. Please keep her in your thoughts and prayers. Ally’s brother Noah wrapped up a successful soccer season by helping his team win the West Deptford Thanksgiving Tournament. Of course I think he is the best player on the team! Landon’s Fall Baseball team also reached the playoffs and he did really well. Even though Jon, Jr. and Jake were star athletes in high school, it was Cerissa who was recently inducted into the West Deptford High School Athletic Hall of Fame as the manager for the 1998 wrestling team! Jenna’s daughter Amelia finally kicked the ball and scored in soccer, while Liam has developed into quite a handful. I am pleased to announce that my baby girl, Jael, became engaged right before Christmas! So another wedding is right around the corner! Beginning this year Jake, whose middle name is Conrad after my father, will be contributing to the quarterly newsletter. His contribution will be called “Conrad’s Corner.” The above material has been prepared from sources believed to be reliable, but we assume no responsibility for omission, errors or misstatements. Necessarily, the information is general and when any legal or tax questions arise in connection with these materials, you should consult with your attorney and tax advisor. The material is not intended to be an offer to buy or sell, or a solicitation of any offer to buy or sell the securities, if any, referred to herein. Janney or a member of the firm may hold a position in a security mentioned in this publication and may make purchases or sales from time to time in the open market or otherwise. Past performance is no indication of future results. Page Three CONRAD’S CORNER “Our youth now love luxury. They have bad manners, contempt for authority; they show disrespect for their elders and love chatter in place of exercise; they no longer rise when elders enter the room; they contradict their parents, chatter before company; gobble up their food and tyrannize their teachers.” That quote comes to us from the renowned Greek philosopher Socrates from sometime in the 5th century B.C. In lamenting the terror of the youth of his day, Socrates was highlighting a problem every generation has had to face since the dawn of man; that is the generation after them, the crop of “youths” that they created and are now entrusting the world to, a frustration often expressed in the commonly heard phrase, “kids these days.” To me, that is a dangerous expression, and I always cringe when I hear it. The thing about today’s kids is they are tomorrow’s adults; and the thing about today’s adults is that they were yesterday’s kids. There is a strange duality in the way today’s young professionals are treated and spoken to. On one hand they are berated with the sobering news of today’s world: crushing student debt, turmoil in the Middle East, bleak job opportunities, and a failing WINTER 2014 financial system. On more than one occasion I have heard, “I’m glad I’m not in your shoes, I don’t know how you kids are gonna make it out there.” And yet the same people who pity us for the tough world we have inherited will scold us for being a generation of wimps, who are used to getting our way and have never experienced any true trials and tribulations like they have! There is a gap between generations; a distancing between the young and the old, but what younger generations are often too embarrassed to say is they need the advice of their elders. Likewise, older generations are too proud to admit that they too can learn from the younger generations. Nowhere is this truer than when it comes to one’s finances, which is why it is important that parents and guardians talk with their children about their financial health. According to a new Bank of America Merrill Lynch study entitled, “Family and Retirement: The Elephant in the Room,” many adults simply do not discuss the most important financial planning concerns with their families. More than half had not discussed issues such as wills or health directives with their children (source: onwallstreet January, 2014). When parents talk to their children, no matter their age, about such important things as personal finance and investing, it requires both parties to take an introspective look at their own goals and objectives and leads to both sides learning something about themselves and each other. What you each might learn will help inform you about what steps are needed to help protect and grow your wealth. The Leise Wealth Management Group can help you and your heirs avoid making financial mistakes by facilitating a conversation and helping to educate your eventual heirs. Call today to talk about it or request the Handbook for Beneficiaries. THE YEAR AHEAD My family and I wish you the best for a happy, healthy, and prosperous 2014. I continue to value the trust and confidence you place in me and my team. Please contact me (215665-6658 or 800-526-6397 or email me at [email protected]) if you have any questions, comments, or suggestions or if you know of someone who could benefit from our services. You can also visit us at www.leisewmg.com. The above material has been prepared from sources believed to be reliable, but we assume no responsibility for omission, errors or misstatements. Necessarily, the information is general and when any legal or tax questions arise in connection with these materials, you should consult with your attorney and tax advisor. The material is not intended to be an offer to buy or sell, or a solicitation of any offer to buy or sell the securities, if any, referred to herein. Janney or a member of the firm may hold a position in a security mentioned in this publication and may make purchases or sales from time to time in the open market or otherwise. Past performance is no indication of future results.
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