This week we have four topics to help keep you informed about the markets and financial planning. You’ll find articles on retirement distributions, an ECRI Recession Update, an editorial on what Germany may do next in the Euro Crisis, plus PIMCO’s outlook for the next 3 to 5 years.
Retirement Distributions – This is an excellent article in Financial Advisor magazine. The distribution phase of retirement planning is more important than the accumulation phase, but many financial advisors never get around to talking about it. What struck us about this article is its acknowledgement that many “financial advisors” are selling products without doing the necessary financial planning work. At Day & Ennis we believe that financial planning is an on-going process. It includes both investment planning as well as withdrawal planning and needs to be kept up to date. Each plan reflects the client’s present situation and will adapt as as major considerations, such as taxes, change in the future. http://www.fa-mag.com/fa-news/10884-advisors-should-talk-sooner-with-clients-about-retirement-distributions.html
ECRI Recession Update – We follow the Economic Cycle Research Institute’s (ECRI) weekly leading index for signs of a recession. The founder of ECRI, Lakshman Achuthan, appeared on Bloomberg television on May 9th. He explains why he believes we may already be in a recession now. The video is worth watching. http://www.businesscycle.com/#
What Germany May Do Next In The Euro Crisis – John Mauldin does a great job keeping up with the debt crisis in Europe. He now believes that Germany may wave the white flag and give in to more quantitative easing (printing of Euros) by the European Central Bank. http://advisorperspectives.com/commentaries/millenium_051212.php
PIMCO’s Outlook For The Next 3 to 5 Years – PIMCO just finished its annual forum, which is where they discuss and develop their views on the world economy and markets for the next 3 to 5 years. This is always informative. http://www.pimco.com/EN/Insights/Pages/Policy-Confusions-and-Inflection-Points.aspx