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July 2008 |
Capital Retirement Strategies, Inc.
Specializing in retirement plans
and personal investment management
In This Issue
The so-called "dog days of summer" are upon us and for many people on or returning from vacations, the last thing they feel like doing is reading a financial newsletter. Before you hit "delete," consider 2 quick tips listed here... 1. Check the beneficiary on your insurance policies and retirement accounts, and 2. Consider getting your account statements online. (And if it's a rainy, cloudy day, check out the article on a different type of investment- equipment leasing...) I hope you are all enjoying the summer! If you read something here you like, please consider forwarding my newsletter to someone who may also find it of value. Thanks for reading! Best regards,
Do You Know Who Your Beneficiary Is? Sometimes the smallest of details can make a big difference. When you name a beneficiary on your life insurance policy or retirement account, you select a loved one who will receive the proceeds of your account if you pass away. Over time our circumstances change and, hopefully, our accounts are updated appropriately. If your life is as hectic as mine then you know how easy it would be to forget to change a beneficiary when you marry, divorce or go through some other life change. I would like to take this opportunity to ask you, "Do you know who your beneficiary is?" And, "Do I need to update my beneficiary designation?" "Have I added a 2nd, or contingent, beneficiary to my account?" Whether I manage your accounts or not, please take a few minutes to think about these questions. If you have any concerns or just want to check who you have named on your accounts, please give me a call. As always, if I can be of assistance to you or someone you know, it would be my pleasure to speak with you.
Alternative Investment Idea: Equipment Leasing Over the last few years, alternative investments have surged in popularity. So called because they are not considered one of the three traditional investment asset classes: stocks, bonds and cash. Alternative investments include non-traded real estate (REITs), land banking, gas and oil partnerships and equipment leasing programs, among others. The main advantage to these investments is their low or negative correlation with the stock market. In other words, their performance has little or no relation to how stocks are performing. In some cases, they may even increase when stocks are down. As the US stock market reached new heights last year- and subsequently fell abruptly- investors looked for ways to reduce the volatility in their portfolios while still getting decent returns. While non-traded real estate investment trusts have received the lion's share of new investments and get the most publicity, another asset class has quietly been gaining in popularity as well. Equipment leasing programs buy and own equipment that corporations use for the day to day operations of their businesses. This equipment can range from smaller items like computers and phone systems to really big things like aircraft and ocean vessels. Commonly leased business equipment also includes items such as forklifts, furniture, tractors, MRI and x-ray machines, copiers and trucks. Many corporations either cannot afford to buy these items or find it more advantageous from an accounting standpoint to lease them. Investors in equipment leasing programs benefit from the interest charged to the lessee and by having their leases backed by the collateral of a hard asset. Investors looking for regular monthly income may benefit from leasing programs, some of which are yielding between 8 and 9% currently. The main disadvantage to these types of investments- and many alternative asset classes in general- is lack of liquidity. Investors should be prepared to keep their funds tied up for up to ten years. Although these types of alternative investments are not for everyone, they could be a good compliment for a larger portfolio seeking current income and lower volatility.
Save a Tree, Get Paperless Statements! Many clients have asked me lately, "Can I get my investment statements online instead of through the mail?" The answer is "YES!" How you go about doing this depends on what type of account you have and what companies your investments are with. If you are interested in getting statements online, please email me and I will either take care of it for you myself or tell you how to set it up.
If you've recently had something great happen in your life or in your career, I'd love to recognize you for it! Send an email to dave@capretirement.com and I'll try to get it in an upcoming issue of Capital Concepts.
Securities offered through Investors Capital Corporation- Member FINRA SIPC |
