I speak only for myself — Shot in the Fannie Mae

I speak only for myself — Shot in the Fannie Mae
The History of a Financial Disaster

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Shot in the Fannie Mae

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Shot in the Fannie Mae

CFO Focus — Roth IRA Conversions in a Down Market

ROTH IRA CONVERSIONS IN A DOWN MARKET
Here’s a year-end move you might want to consider.
By J. Michael Stolp

Is it time for a break – that is, a tax break? With the stock market down 25-40% from its fall 2007 highs, it’s certainly a time to consider converting your traditional IRA to a Roth IRA, especially if you’re not planning on retiring soon. You will pay a one-time tax on the conversion … but with the market down, that tax will be less than you would have paid last year. As a result of the conversion, you will have more flexibility with your money when you are ready to use it.

CFO Perspective — A Super Tuesday renews a lot of hope

IS IT TIME TO MOVE CASH INTO EQUITIES?
Are we looking at a great buying opportunity?
By J. Michael Stolp

A super Tuesday renews a lot of hope. October risked being the worst month for stocks in decades until the amazing rally on October 28. Tuesday, the Dow Jones Industrial Average had its second biggest point gain ever, rising a mindblowing 889.35 (10.88% in a single trading day). The NASDAQ soared 143 points (9.5%).¹ The S&P 500 also notched its second-biggest point gain Tuesday (92 points, or 10.79%).² All this had investors hoping that some kind of bottom had been reached … but history would seem to indicate otherwise.

CFO Perspective — The One Percent Solution

FED CUTS RATES TO 1.0%
Another major cut, and a (mostly) minor market reaction.
By J. Michael Stolp

As expected, a 50 basis point cut. On Wednesday, October 29, the Federal Reserve reduced the benchmark U.S. interest rate half a point to 1.0%, by a unanimous 10-0 vote of the Federal Open Market Committee. The FOMC also voted 10-0 to lower the discount rate half a point to 1.25% (the interest rate banks pay on direct loans from the federal government).¹

CFO Perspective — What is the meaning of Tuesday’s amazing rally?

DOW JUMPS 11%
What is the meaning of Tuesday’s amazing rally?
By J. Michael Stolp

Was it a relief rally, a buyer’s market, or … a turning point? Investors smiled Tuesday as stocks went wild. The Dow Jones Industrial Average gained 10.9% to finish Tuesday at 9,065.12. The S&P 500 climbed 10.8%, finishing at 940.51. The NASDAQ also gained an impressive 9.5%, rising to 1,649.47. The Dow rose 889 points, the second biggest single-day point gain in its history (falling short of only the 936-point leap we saw on October 13).¹

The Safe Money — Asset Protection 101

Advisor Today Magazine
Asset Protection 101
Reprint of article originally published in February 2008 By Ike Devji

Your affluent clients depend on you to be a source of information on a wide variety of complex topics. They assume you are at least informed about every area even marginally related to your core business. One such area is asset protection.

As a financial advisor, you seek to create steady growth of your clients’ assets and help them avoid losses and exposures to things like market risk and income and estate taxes.

Read full article — Asset Protection 101

The Safe Money — Recession Proof Your Assets — Part 2

Recession Proof Your Assets — Part 2
By Ike Devji

Starting early September I had numerous requests to re-send PART 1 of this, which has been posted for your review as well. I’ve expanded it and added some other issues, listed here under PART 2.

The Safe Money — Recession Proof Your Net Worth — Part 1

ISSUE – WHAT CAN BE DONE TO RECESSION PROOF YOUR ASSETS?
By Ike Devji

As times get tough and we endure another economic slowdown, no matter how cyclical in nature, we encourage our friends to be aware of the following issues and how to examine they have “winterized” their net worth. This was originally sent to clients in January – and is even more relevant now. Here are some critical points to be aware of:

CFO Focus — Fixed Indexed Annuities have become popular alternatives to Bonds

FIXED INDEXED ANNUITIES
These conservative investments have become a popular alternative to bonds.
By J. Michael Stolp

Fixed indexed annuities can be very useful investments. As the name implies, FIAs are fixed annuities linked to the performance of a stock market index (often the S&P 500). Because of this stock market exposure, they can sometimes bring conservative investors very nice returns – often, considerably better returns than CDs, bonds, or money market accounts. They really aren’t designed to outperform the stock markets; they are designed to outperform the fixed markets.

CFO Perspective — Self Care in the After Shock

Fear, Caution and Opportunity
Some thoughts about taking personal responsibility for self-care in the after shock
By J. Michael Stolp

First, the bad news. As we put pen to paper on October 28th, the S&P 500 is off approximately 20% so far this month alone. It is down almost 41% from its closing peak on October 9, 2007. Over the past few weeks, equity investments of any kind have been hit, in some cases very hard. Some of the managers with the best long-term records have been hit hardest, down more than 50% since last October’s market peak. When you open your account statements in the coming weeks, it’s not likely to be a pleasant experience.

CFO Commentary — End of the Investment Banking Era

CFO Commentary — End of the Investment Banking Era
Quarterly Economic Update for the 3Q2008
by J. Michael Stolp

Quote for the quarter. “There’s no present. There’s only the immediate future and the recent past.” – George Carlin

The Safe Money — How Do We Plan for the Unimaginable?

PROFESSIONAL EXPOSURE AND UNFORSEEN LIABILITY – HOW DO WE PLAN FOR THE UNIMAGINABLE?

The two stories below really hit home for us since our clients are primarily successful medical professionals and private business owners.

In the first one the tragic loss of a family member in a car accident illustrates the liability that a business can be imputed with for the actions of its owners and employees. We have talked about this issue for years with our clients and have explained time and time again that they are liable not just for their own actions but also the actions of their employees, no matter how unpredictable or egregious those actions may have been.

CFO Commentary — Four Words You Shouldn’t Believe

FOUR WORDS YOU SHOULDN’T BELIEVE
These are the words that make investors irrational.
By J. Michael Stolp

“This time is different.” Beware those four little words. They are perhaps the most dangerous words an investor can believe in. If you believe “this time is different,” you are mentally positioning yourself to exit the stock market and make impulsive, short-sighted decisions with your money. This is the belief that has made too many investors miss out on the best market days, and scramble to catch up with stock market recoveries.

The Safe Money — Automobile Liability & Insurance Limits

ISSUE: APROPRIATE LEVELS OF LIABILITY COVERAGE FOR AUTO POLICY

This actually comes to me through a relative, who is now in an unfortunate position:

While driving in the middle of the day our friend, “Mr. Good” was struck broadside while crossing an intersection with a green light. The driver of the other car was turning left and failed to yield right of way, striking Mr. Good’s vehicle and injuring himself and causing his own death in the process. The reporting officers at the scene cleared Mr. Good of any wrong-doing and cited the other (deceased) driver noting that he was an elderly man who was driving at a high rate of speed and who had not been wearing his seat belt when he for some reason broadsided Mr. Good in oncoming traffic.

CFO Commentary — Overseas Selloffs Affect U.S.

Weekly Economic Update for the Week of October 27, 2008

Quote of the week. “To measure the man, measure his heart.” – Malcolm Stevenson Forbes

Overseas selloffs affect U.S. Friday, poor earnings reports from Daimler, Toyota and Sony sent European and Asian markets down double digits before a recovery, and a pre-market futures plunge here was deep enough to temporarily halt futures trading.1,2 The Dow dropped 450 points in the first 5 minutes after the opening bell, but gained some of it back, finishing at 8,378.95 for the week.3

Benjamin Renzo — Physicians, Cover Thy Assets

Outpatient Surgery Magazine published an article in their October 2008 issue written by Partner Benjamin Renzo titled “Physicians, Cover Thy Assets”.

“Each year malpractice insurance becomes more expensive and less effective at protecting physicians’ assets, their practices and the surgery centers where they operate. While most physicians carry malpractice liability insurance that covers $1 million per incident and $3 million for multiple claims in the same year…”

Read full article

CFO x-ray$ Announces New Contributing Author — Ike Z. Devji

We are pleased to welcome my good friend and professional colleague Ike Devji as a Contributing Author to the CFO x-ray$ Weblog.  I have been privileged to know and to work with Ike and his colleagues for a number of years.  Ike’s special expertise is Asset Protection.

Ike Z. Devji, J.D.
Executive Vice-President, The Wealthy 100,
Of-Counsel, Lodmell & Lodmell, P.C.

The Financial World — Seismic Change — Exponential Pace

My name is Michael Stolp, and I am the CEO of CFO Solutions Inc.  I want to take a few minutes to to provide you some information on the current market situation, our perspective and what our clients should consider as a result of this information.

CFO Commentary — U.S. tries the European plan

Weekly Economic Update for the Week of October 20, 2008

Quote of the week. “People have this illusion that all over the world, all of the time, all kinds of fantastic things are happening. In fact, over most of the world, nothing is happening.” – David Brinkley

U.S. tries the European plan. As free market diehards reached for their aspirin, other economists praised the Bush administration’s plan to pour cash directly into private banks. In a move akin to the recent actions of European governments, the U.S. Treasury will soon invest $125 billion into 9 major banks to help them rebuild cash reserves and boost lending. Later in 2008, the Treasury will offer up to another $125 billion if other banks need it. In return for the cash injection, the U.S. government gains ownership stakes – shares paying a 5% dividend to taxpayers for the next 5 years.1

Investment News :: Go forth and blog, advisers urged

Go forth and blog, advisers urged
By Jeff Benjamin
October 21, 2008, 10:48 AM EST

Independent financial planners are poised to “own” the personal finance market, but that is partly contingent on advisers getting up to speed and becoming more comfortable with the Internet and blogging technology.

PR Wiz Len Gutman talks Social Networks to Arizona CPA’s

I was pleased to attend a Continuing Education class at the Arizona Society of CPA’s presented by Public Relations Wizard Len Gutman this past Friday morning at the ASCPA Training Center here in Phoenix.

The course was called Blogging 101: Tools for Business in the Age of Social Media.

Bob Veres — Capitulation and Empathy

The following is an e-column by Bob Veres, an industry analyst and author, and the man who Financial Advisor magazine named one of the most influential people in the financial planning profession. This column was part of an overall series that Mr. Veres put together to address the turbulent times we are facing. Anyone who joins Inside Information (www.bobveres.com) can receive the full series, which includes the full text of all the messages that top advisors have sent out to their clients at various points during this meltdown; messages which have help support an advisor’s own communication efforts with their clients.

Capitulation and Empathy
By Bob Veres
October 13, 2008

Good evening. Good news for a change! As I write this, the markets closed up sharply, which may prove to be a temporary relief, but certainly feels better than whatever we were going through last week.