How people get as much as 88% more from Social Security!

December 30, 2016 | posted in: Blog, Financial Insights | by

Many people may be unaware of the impact various decisions can have on their ultimate social security benefit amount. Timing of election, work income, taxes, spousal benefits, etc., must all be considered in effective social security benefit planning. Regarding the timing of elections, for example, according to a recent study covered by CNBC, someone who retires and begins claiming Social Security at age 70 would receive a benefit that’s 76 percent higher than the one he or she would receive at age 62. The CNBC piece points out that if you factor in late-career earnings replacing a zero-income year, the increase can become as much as 88 percent for women and 82 percent for men. For the full CNBC piece click how to get 88% more from social security.

The Rate Hike Is A Good Sign

December 22, 2016 | posted in: Blog, Financial Insights | by

Last week’s rate hike had been well telegraphed, with the federal funds futures market pricing reflecting a nearly 100% chance of a hike for some time. Though the potential for some bond market volatility in the short term exists, we don’t expect another broad-based bond sell-off (or a corresponding quick rise in rates) given that markets have had plenty of time to digest the possibility of a rate hike. Regarding equities, rising interest rates tend to be accompanied by expectations for economic growth and stocks have done well, historically, during periods of rising but low interest rates. We are encouraged by LPL Research’s recent review of 23 periods of rising rates, during which the S&P 500 rose 83% of the time. Yet, rate hikes also reaffirm that we are in the mid-to-late stage of the economic cycle. In this part of the cycle, we can expect additional equity market volatility. Managing Portfolios For Rising Interest Rates Overall, the rate increase reaffirms that we are returning to a more typical economic environment, which is a welcome change from the environment we have lived in since the Great Recession. And although we have seen a change in Fed policy, what shouldn’t change is our commitment to working toward our long-term investment goals, while monitoring short-term trends. The following are among short-term tactics that can be pursued to help mitigate against the risk of rising interest rates: Reducing fixed income holdings’ durations Reducing bond holdings, while being careful to avoid under-investing in this key allocation Reevaluating the mix/types of bonds being used For equities: the opportunities that growth sectors present in this business cycle stage should be considered.   IMPORTANT DISCLOSURES The economic forecasts set forth in the presentation may not develop as predicted. The opinions voiced in this material are for general information only and are not intended to provide or be construed as providing specific investment advice or recommendations for any individual security. The Federal Open Market Committee (FOMC) is the branch of the Federal Reserve Board that determines the direction of monetary policy. The eleven-person FOMC is composed of the seven-member board of governors, and the five Federal Reserve Bank presidents. The president of the Federal Reserve Bank of New York serves continuously, while the presidents of the other regional Federal Reserve Banks rotate their service in one-year terms. This research material has been prepared by LPL Financial LLC. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance reference is historical and is no guarantee of future results. Investing in stock includes numerous specific risks including: the fluctuation of dividend, loss of principal, and potential liquidity of the investment in a falling market. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not ensure against market risk. Because of its narrow focus, sector investing will be subject to greater volatility than investing more broadly across many sectors and companies. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond and bond mutual fund values and yields will decline as interest rates rise and bonds are subject to availability and change in price. High-yield/junk bonds are not investment-grade securities, involve substantial risks, and generally should be part of the diversified portfolio of sophisticated investors. Bank loans are loans issued by below investment-grade companies for short-term funding purposes with higher yield than short-term debt and involve risk.

Time for a replay!

December 9, 2016 | posted in: Blog, Financial Insights | by

Austin Frye’s take on football & investing in gets picked up by! It’s football season, people, and that translates to millions of eyeballs fixated on the gridiron. “After watching football over so many years, I have actually found there are many important commonalities between achieving success on the field and working towards achieving success with financial goals. Here are eight key investment and financial lessons I’ve learned from watching football that you can use to work towards financial independence: 8 strategies for success that football shares with Investing!

Special Market Commentary: Presidential Election 2016

November 4, 2016 | posted in: Financial Insights | by

2016 Election Playbook Our clients are a very diverse group of people representing the melting pot of cultures that make life in South Florida so rewarding and enjoyable for me. Yes, that means different religions, colors, sexual orientations and income levels. As one would expect, when I take your phone calls, read your emails and participate in face to face meetings, I hear many differing views regarding the presidential election and who is the appropriate candidate to lead this nation forward. As an example, yesterday, after completing a call with a Trump supporter who was literally yelling on the phone about how America needs to “drain the swamp”, I immediately took another call from a frantic, crying Clinton supporter who just could not understand how the recent polls were showing a narrowing gap between the 2 candidates. I know that many of you are glued to CNN, Fox News and MSNBC, because you are sending me links and videos from the aforementioned networks with accompanying comments such as, “Can you believe this?” or, “Read this for the real truth.” As a result, I am being exposed to a vast amount of political information from you, my clients and friends, through what I now call the Frye Financial Network or FFN. The FNN tells me that there is a lot of anxiety and a lot of anger about the candidates. Many of you on the FFN have deep concerns about the direction of the country and how it will affect you financially. Accordingly, as the CEO of the FFN, I feel it behooves me to provide some analysis about how the new President will affect your portfolios and financial security. Regarding issues other than financial ones, I will leave that to others. The most recent LPL market research commentary, compiled by their chief investment advisor and chief market strategist , provides a point by point election playbook for the upcoming change in power in Washington and what it might mean for clients’ portfolios. It also includes some potential investments that could possibly receive an election boost. Read on..ELECTION PLAYBOOK

Midyear Outlook 2016: A Vote of Confidence

July 22, 2016 | posted in: Blog, Financial Insights | by

As we embark on the second half of 2016, the headlines and much of our attention will be focused on the 2016 presidential election, which can distract us with the barrage of promises and heightened political drama. Against that backdrop, however, we continue to encourage investors to remain focused on their long-term investment plans. LPL Research proposes a vote of confidence in the economy, the market, and most importantly, in our ability as investors to remain focused on our long-term goals. This is not always easy; but a vote of confidence means having the belief that someone or something has the ability to succeed. It is more than being positive or negative, a bull or a bear. It is about trusting our assessments of the opportunities—and risks—that may lie ahead, formulating a solid investment plan, and sticking with it through the ups and downs we may face in the coming months and beyond. Looking ahead to the rest of 2016, LPL Research maintains confidence in its existing forecasts, with some minor adjustments. Periods of volatility are also anticipated throughout the rest of this year, but the expectation remains that we will not enter a bear market or economic recession. Here are some of the key influential factors to be watching for: • Federal Reserve (Fed) rate hikes. The forecast for Fed rate hikes in 2016 has been reduced from two to one, with additional rate increases next year. • International growth uncertainty. Looking for clarity around future global growth, due to Brexit, the impact of the U.S. dollar, China’s debt problem, and earnings growth in Europe and Japan. 7 • Corporate America investments. A pickup in economic growth and an energy sector turnaround may boost companies’ investments in their future growth, an element that has been lacking recently. • Second half turnarounds: oil, dollar, earnings. These three turnaround stories are key for the rest of 2016. Should the drags from oil prices and the U.S. dollar continue to ease, an earnings rebound may occur in the second half of the year. The LPL Research Midyear Outlook 2016 provides the “vote of confidence” that the current economic recovery and bull market may continue through 2016 and beyond,with the investment insights and market guidance for what may lie ahead for the rest of this year. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Economic forecasts set forth may not develop as predicted. Investing in stock includes numerous specific risks including: the fluctuation of dividend, loss of principal and potential illiquidity of the investment in a falling market. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond and bond mutual fund values and yields will decline as interest rates rise and bonds are subject to availability and change in price. The S&P 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. This research material has been prepared by LPL Financial LLC. Securities offered through LPL Financial LLC. Member FINRA/SIPC.

Mother’s Day Rescue at Sea

May 17, 2016 | posted in: Blog, Frye Happenings | by

Policemen and Firemen face mortal danger on a regular basis, and Doctors and EMS technicians routinely save lives. Financial Planners on the other hand don’t usually save actual lives. While we may be first responders in times of financial or family crises, risking life and limb is, generally, not part of our job description. No, there is not much of an adrenaline rush in helping Americans save for their futures and in making sure they don’t run out of retirement funds, though we do get involved in our fair share of urgent client issues – many more than you might expect. Clients call me to discuss problems in their marriages. They call me when their high school kid gets kicked out of school for smoking marijuana (OK — I practice law too, but mostly Trusts and Estates). They call when family members are sick or hospitalized. They call when the sale of their business might be about to fall through, and when they find out a long term employee has embezzled from them. They call for my thoughts on how a potential Donald Trump presidency would affect their stock portfolios. They want to know whether they should buy a home or rent a home and whether they should purchase a car or lease their transportation. They call me to find the best doctors and the best restaurants. Take that Mr. 1-800-Vanguard or Fidelity!! Clients call me for just about everything. As an LPL Financial Planner and lawyer, I feel gratified that I can help improve the lives of my clients, in more varied ways than I can list here. But up until yesterday, I could not say, other than metaphorically, that I, in fact, save lives. On Mother’s Day, May 8, 2016, that narrative changed for me, permanently. Late that afternoon, on a spectacular day, I decided to take my wife, Heidi, for a ride on our paddleboards around North Lake in Hollywood, Florida. Heidi was happy to go, but had trepidation about our launch site on the Stranahan Lake off Holland Park. The problem being that in order to get to North Lake we would first have to transverse a short but somewhat turbulent section of the Intercoastal waterway between Holland Park on one side and the bars and restaurants of North Ocean Drive on the other. As we entered the rough waters of the Intercoastal on our boards, I was surprised to spot two swimmers in the middle of the waterway’s boat traffic, attempting to cross the channel. My immediate thoughts as they passed beyond my field of vision was that were probably both very strong swimmers, though severely lacking in judgment. As Heidi and I safely navigated a path close to the shoreline, a fisherman yelled out, “Look at those two idiots trying to swim across the channel!” Seconds later, another person on the shore started screaming for someone to,” Call 911! Those guys are drowning!” And then the swimmers chilling pleas, “Help, help we’re drowning” left no doubt as to the urgency of the situation we were suddenly in the midst of. I immediately performed a 180 turn on my board and headed back a hundred yards to the struggling, desperate swimmers. By the time I reached them they were completely exhausted, fighting the currents to no avail. I first dragged the weakest swimmer on to my board and then the next. Fortunately, for all of us, I had chosen that day to use a racing paddleboard that had a very thick hull and could handle a lot of extra weight. I dropped to my knees and paddled my board like a kayak, struggling to keep from tipping over. We all made it safely to shore and the dazed and relieved swimmers were delivered to terra firma. Things happened so quickly that I never got the swimmers names and they didn’t get mine. They thanked me profusely, as did the swelling crowds along the shoreline. Now I am left with so many questions swirling around in my head. Were the two men drunk and showing off to their friends? Did they learn a lesson? Will these two “20 somethings” lead productive lives? I will never know the answers to these questions. What I do know is that in what seemed like seconds, two lives were saved, and just as quickly, Heidi and I were off paddling the more gentle waters of North Lake. Yes my friends, financial advisors do help improve the lives of their clients, and maybe, once in a lifetime, they actually save a couple of lives!