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Political Insights: Carville's Secret to Marriage to Mary Matalin

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 The FPA National Conference welcomed key note speakers Mary Matalin and James "the ragin cagin" Carville to share their personal story and political insights.  One a deep rooted Democrat, one a staunch Republican. As you may expect, their personal opinions and political values could not be farther apart.  

Matalin and Carville shared humorous encounters while contributing to the Clinton and Bush presidential campaigns. Individually they addressed our current political landscape and presidential election while lobbying for their respective parties. As their speaking session ended, I felt inspired by the possibility that, regardless of our political affiliation, some day we all may just get a long!

Today they are happily married with two daughters and reside in New Orleans.  I believe the lives of Matalin and Carville provide a strong example that we may prosper together regardless of our political affiliations and beliefs.

Matalin and Carville affirm that both parties - Republicans and Democrats - share an intense desire in serving the needs of the American people. It’s clear the HOW may differ, but at the end of the day, they continue to love, care, and respect each other.A lesson we may all benefit from as the Presidential race continues to intensify!

James "The Ragin' Cajun" Carville is America’s best-known political consultant. His long list of electoral successes includes leading Ehud Barak to victory to become Prime Minister of Israel in 1999 and most notably helping to secure William Jefferson Clinton as President of the United States in 1992.

 

  

Mary Matalin is a prominent political figure who has made frequent television and radio appearances and is a New York Times bestselling author. Her political successes include serving under President Ronald Reagan, George H. W. Bush, and George W. Bush. She lives in New Orleans with her husband, James Carville, and their two daughters.

Are Democrats or Republicans Better for the Markets?

 Well, since I believe that 96% of statistics are made up, and most political stats are probably the worst offenders, I’m going to stick to the facts. People often ask me, “What is better for the markets, a Democrat or a Republican president?” I wanted to be sure to be as non-partisan a possible and give you just the facts.  If we measure presidential returns since 1900 (where we have meaningful market data) the performance of the markets stacks up like this:  

Looking at the chart above, you see that the Dems have the advantage when it comes to the median.  The best returns came during the administrations of Democrats Bill Clinton and then Franklin Roosevelt. The period from 1913 – 1920 was difficult, but markets in the 1920s were great. The so-called roaring ‘20’s under Calvin Coolidge, a Republican president, was the era when the market boomed on easy money and no bank controls.  Obama's performance, using this yardstick of economic health, has been above average – only slightly below that of Republicans Dwight Eisenhower in the 1950s and Ronald Reagan in the 1980s.

Also, I might add, since Congress holds the purse strings and writes the checks, it might not be the president that we should be measuring.  However, that is what people want to know.  No one has ever asked me what party holding the majority in Congress provides for better stock market returns. The question from people has always been: “What president is better for the market?”

The current sitting president would like this news because strong stock markets usually get presidents reelected.  And the reelection is usually a good indicator of a good stock market going forward, especially if we see a Democrat in the Oval Office and a Republican-controlled Congress, which has been the best combination in politics for market returns. 

Courtesy of Stock trader’s almanac

So this is all very exciting news for Democrats, but consider that any statistician would say we have a few thousand years to go before we have a fair sample set; 17 presidents doesn’t prove much.  With that said, I’m sure that I will be asked this question many more times in my career.

The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material.  The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.  Any opinions are those of Center for Financial Planning, Inc., and not necessarily those of RJFS or Raymond James.  Past performance may not be indicative of future results.  The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U. S. stock market.  Dow Jones Industrial Average (DJIA), commonly known as “The Dow” is an index representing 30 stocks of companies maintained and reviewed by the editors of the Wall Street Journal.  You cannot invest directly in an index.

Center Kids Trick or Treat!

Witches and goblins and ghosts oh my! It's the time of year when Halloween costumes take over and kids of all ages dig in for some serious trick or treating time. Don't be spooked as you check out some of our own Center family kids wearing their Halloween best. If you look closely there is a four legged masked crusader who thinks she is a kid, too. Happy Halloween to all!

Check Out My New Stand Up Desk!

I recently discovered that using a stand up desk option periodically throughout the day is just what I needed to stay productive and reduce my sitting time during the workday.   Wow, why didn’t I think of this sooner!

Things I like about having a standing desk

  • The option to stand up without disrupting productivity or thought process
  • Increased alertness and focus; especially during longer duration projects
  • More focus on posture and core strength while standing v. sitting
  • The opportunity to burn more calories than sitting – definite plus!
  • Medical research suggests that getting up from your desk chair and standing for a period     of time is beneficial for overall health – another check in the plus column!

Two tips I learned from experience

  • Invest in an anti-fatigue mat to cushion your feet and make standing easier on your body
  • Ask an ergonomics expert to help you get set up correctly

Incorporating a stand up desk option into my office space has been a welcome addition - one which I am sure to enjoy for many years to come!

Timely Tips to Help Protect Against Identity Theft and Cyber Fraud

 Besides being the gateway to the Thanksgiving season, October is National Cyber Security Awareness Month.  At home and at work our growing dependence on technology requires greater awareness and action plans to protect against online risks.

I distinctly remember the sinking feeling in my stomach when I was recently discovered a thief had obtained personal information and made purchases on my credit card.  I was routinely reviewing the statement and I did not expect to see anything out of the ordinary and then boom – there it was.  Several unidentifiable transactions right in front of my eyes.  

Identity theft can occur anywhere and anytime.  

Here are some practical suggestions to help you keep cyber security top of mind:

  • Review your credit report periodically to be on the lookout for fraudulent activity.  Free credit reports from each of the three major bureaus (staggered quarterly for year-round monitoring) are available annually at www.annualcreditreport.com
  • Fee-based services are available for a cost to provide convenience for those who don’t want to personally monitor their information. 
  • Monitor bank and credit card accounts at least weekly.
  • Be vigilant about keeping sensitive information from prying eyes in public places.
  • If you file taxes electronically – review the security policy with your tax preparer.
  • Stop hackers by using strong passwords. 

Here are some additional resources to help protect you against identity theft:

Spending a little time to protect your information can help you avoid all of the hassle of being a victim. If you’d like more help, feel free to contact your Center Planner. 

Any opinions are those of Center for Financial Planning, Inc., and not necessarily those of RJFS or Raymond James.  Links are being provided for information purposes only.  Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors.  Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members.

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A GIFT FOR A LIFETIME: Grandparent Giving for Education

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 We all know grandparents and grandchildren have a special bond. If you are a grandparent of college age children, or those attending private schools in some cases, you have to be alarmed about the amount of debt students are racking up. Economists are estimating students will be paying loans for as long as 20 years, affecting their ability to get homes and cars.*

Grandparents have a special tax saving measure that will be a wonderful gift to their favorite student.  They can make direct payments of tuition to a school free of gift tax.  So what does that mean to the grandparent?  It means that even if you have contributed to 529 plans or given to your student directly, you can exceed the $13,000 annual gift tax exclusion by writing the check directly to the educational institution for tuition payments.  The grandparent is giving now and also reducing their future taxable estate.

What does it mean to your grandchild?  It could mean less debt and the ability to start their professional career on a more solid financial basis.   With the giving season right around the corner, this may be a strategy you want to consider. To learn more, contact your financial planner at the Center.

Source: Huffington Report, 7/20/2012

The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.  Any opinions are those of Center for Financial Planning, Inc., and not necessarily those of RJFS or Raymond James.  You should discuss any tax or legal matters with the appropriate professional.

6 Steps to Protect Yourself Against Identity Theft and Cyber Fraud

 Besides being the gateway to the Thanksgiving season October is National Cyber Security Awareness Month.  At home and at work, our growing dependence on technology requires greater awareness and action plans to protect against online risks.

I distinctly remember the sinking feeling in my stomach when I recently discovered a thief had obtained personal information and made online purchases on my credit card.  I was routinely reviewing the statement and I did not expect to see anything out of the ordinary and then boom – there it was.  Several unidentifiable transactions right in front of my eyes.  

Identity theft can occur anywhere and anytime.  

Here are some practical suggestions to help you keep cyber security top of mind:

  • Review your credit report periodically to be on the lookout for fraudulent activity.  Free credit reports from each of the three major bureaus (staggered quarterly for year-round monitoring) are available annually at www.annualcreditreport.com
  • Optional fee-based services are available for a cost to provide convenience for those who don’t want to personally monitor their information. 
  • Monitor bank and credit card accounts at least weekly
  • Be vigilant about keeping sensitive information from prying eyes in public places
  • If you file taxes electronically – review the security policy with your tax preparer
  • Stop hackers by using strong passwords. 

Spending a little time to protect your information can help you avoid all of the hassle of being a victim. Feel free to contact your Center Planner with follow up questions.

Any opinions are those of Laurie Renchik and not necessarily those of RJFS or Raymond James.  Links are provided for information purposes only.  Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors.  Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.

Euro 101: Will the Euro Survive?

 This is the million-dollar question of recent history.  There is no clear-cut answer but William James Adams PhD, professor and expert on the European economy, thinks the Euro may survive.  There are two major opposing viewpoints to this question.  The first is the “Anglo-Saxon View” and second is the Continental Theory.

Anglo-Saxon View

This view is based on optimal currency area theory and examines whether or not an area would benefit from a common currency.  In order for a common currency to work, there must be at least one of the following tools available to the people:

  1. Labor mobility – Since there are major cultural differences and language barriers mobility, or the opportunity to move where the jobs are, between European countries is severely lacking for employees.
  2. Price and wage flexibility – Prices are very sticky, for example companies can’t just double the price of pasta because customers will simply buy something else instead.
  3. Transfer of tax revenues from one region to the other – This works in the U.S because the Federal government takes in $162 of tax revenue of every $100 in state tax revenue, so there is a lot to spread around as they see fit. In contrast, in Europe, the European Union only has $3 in revenue for every $100 of country revenue.

Supporters of the Anglo-Saxon view, feel that the currency has been doomed from the start. 

The Continental View

When the U.S. dollar came about, none of the above scenarios were in place for almost 150 years and yet the dollar survived.  This is the argument that proponents of the Continental View take.

These days, countries making a trade across borders of member nations, say from Germany to Spain, benefit greatly from the elimination of transaction costs and hedging of currency conversions that previously occurred.  Also, if the Euro didn’t exist, a deflationary bias could occur, which would hurt the sale of goods.  This happens when member nations start to adjust their interest rates to be more competitive and attract more investment money.

Ultimately, it is not in any country’s best interest to let the Euro collapse since they depend on exports to other European Union countries for their livelihoods.  As there is no clear cut answer, it will be interesting to continue to follow the developments across the Atlantic Ocean.  We are continually monitoring the situation in light of how this may impact our client’s portfolio. For more detailed information on how the Euro Zone crisis began, take a look at the other blogs in our Euro 101 series.

Please see the rest of the posts in our Euro 101 Series:

Lesson 1: A Little History Behind the Euro Zone Crisis

Lesson 2: Who’s in the Euro Zone and Why Was It Established?

Lesson 3: The Beginning of the End

Lesson 4:  Scandals

The information contained in this report does not purport to be a complete description of the securities, markets or developments referred to in this material.  The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.  Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation.  Any opinions are those of Center for Financial Planning, Inc., and not necessarily those of RJFS or Raymond James.  Expressions of opinion are as of this date and are subject to change without notice.

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5 Years and Running! The Center Remains Fit-Friendly

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 The Center has recently been recognized for the 5th consecutive year by the American Heart Association as a Fit-Friendly Worksite.  The credit for the award and recognition goes to Center team members who routinely make health and wellness a priority in their lives. Kudos and Congrats to all!   

Leading balanced lives is a core value Center team members aspire to and health and wellness is an important aspect of balance in life.  Health & Wellness Committee member and Client Service Manager Jennie Bauder said, “the AHA Platinum Award is displayed in a common area of The Center and it symbolizes our commitment to everyday healthy habits.” Here are some of the healthy habits practiced in our workplace that helped achieve American Heart Association recognition: 

  • Physical activity options are available during the workday
  • Healthy eating options are provided in the office lunch area
  • Intentional focus on wellness as part of our culture

Gerri Harmer, Client Service Assistant, has been a Health & Wellness Committee member since day one.  She added, “ I am energized by the positive impact our program has on my colleagues and look forward to bringing new ideas to the group for 2013.”

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Medicare Open Enrollment

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 For a retired couple*, healthcare costs can exceed $10,000 per year and over $250,000 for a lifetime. It’s pretty obvious, given those totals, why making the right Medicare choices is critical. In addition to ever-increasing health care costs, Medicare premiums are projected to go up at a rate that is higher than the 1.7% Social Security cost of living increase for 2013. So, even if you dread digging into your Medicare options, there is no time like the present. It is officially Medicare Open Enrollment (October 15-December 7, 2012) which means it is time to review your A’s, B’s, C’s and D’s. If you are age 65 or older and are enrolled in Medicare, during Open Enrollment, you can make changes to:  

  • Medicare Part D plans
  • Medicare Advantage *
  • Medigap Plans

*Medicare Advantage plans can also be changed from January 1 to February 12, 2012.

It is just a short window so it is important that you carefully evaluate your needs and the available plans to make sure that you are in the most appropriate and cost-effective plan for your situation. You can do your own analysis by using the online tools provided by or look for the help provided by local senior organizations or independent Medicare consultants. Taking the time to find the best plan for you can be financially life changing. Contact your financial planner for resources in your area.

Live YOUR Plan™

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