What should we assume?
In modeling cash flows, we typically assume that investment returns during retirement will average about twice the rate of general inflation and be about equal to the rate for healthcare expenses. Of course, specific results will vary based on many factors. It is important that our clients review and adjust their cash flow “pictures” with us during their individual reviews.
The suffering of the fiduciary rule.
We have previously reported (see blog entries on November 2, 2015, and March 29, 2016) on the Department of Labor’s proposed fiduciary requirement for providers of financial advice. The fiduciary relationship requires the highest level of fidelity and accountability, as opposed to the suitability standard generally required of stockbrokers and insurance agents. In the interest of protecting consumers, the Department of Labor issued a ruling that essentially all providers of financial advice adhere to a fiduciary standard. Certain established financial institutions opposed the ruling. As reported recently in FinancialPlanning, the current administration intends to nix a key enforcement provision of the DOL’s rule. Our clients are unaffected by this rule, whether or not it is enforced. We are fiduciaries. Proudly. We are interested in our clients’ success, not sales commissions. Our income comes directly from our clients, and only from our clients.
Our website, fpai.net blocks access from other countries.
Note to clients traveling outside the United States: In an effort to limit possible “interference” from malicious cyber vandals, we have blocked access to our website when initiated from another country. (Note: Since this notice was published, we have implemented a newer, better security arrangement, which allows access from other countries without jeopardizing security.)
More KBS tender offers.
Many of our clients own interests in KBS real estate investment trusts. Recently, again, tender offers have been made to purchase shares at substantial discounts to the REITs’ board of directors estimated values. We recommend that you do NOT tender your shares.
Some stock analysts consider Apple to be a core holding.