Eat Wisely: Skip the Marketing Claims

Eating well used to be pretty easy; just eat lots of fruits and vegetables. But today’s on-the-go lifestyle has resulted in a plethora of processed and packaged food – with huge opportunities for on-package marketing.

Food producers know that consumers regularly scan packaging to find out what’s inside – so they litter it with phrases like “fat free” and “high source of fiber.” Yet fat free products may be packed with sugar, and fiber sources may be heavy on salt and other nutritional no-no’s.

To avoid being a victim of on-package marketing, skip the claims and go straight for the Nutrition Facts section, which includes not only the calories and vitamins contained in the product but also the sodium and sugar content and the percentage of daily value. Sodium should be less than 500 milligrams per 250 ml serving, and sugar (in any form) should never be listed as one of the first four ingredients.

While it’s best to stay away from processed foods altogether, if that doesn’t work for you, ensure that you know what you’re buying. Read the labels.

Annuities May Help Skirt Retirement Risks

The purchase of a fixed annuity may be a hard sell, given today’s ultralow interest rates. But that doesn’t mean investors who are worried about the negative effect of a volatile market on their savings shouldn’t consider these investment vehicles.

When you buy an immediate income annuity, you essentially skirt two big retirement risks: first, that a market crash will destroy your savings, and second, that you'll outlive your money.

The problem is that insurers base monthly payments on current interest rates. If you buy now, when rates are low, you lock in a lower payout than you would if you bought when rates were higher. So the question is: will a fixed annuity pay you enough?

The answer depends on how much you've saved. While an annuity can protect you from running out of money, it isn't a solution if you haven’t saved enough.

If you are concerned about a market crash or fear you may outlive your money, one strategy is to use a portion of your retirement savings to purchase a fixed annuity that will generate sufficient income to cover your fixed monthly costs – such as housing and utilities.

It’s likely that annuities may soon become more available, thanks to rules proposed by the U.S. Treasury and Labor departments that encourage more employers to offer annuity options in retirement plans. So you may want to give them a second thought.

I or your advisor can help you determine if annuities are right for your and can explain your investment options.

Have You Heard of Pinterest?

If you've picked up a newspaper, surfed or watched TV recently, you've probably heard about Pinterest  -- the on-line photo pinboard and community.

The new social media kid on the block is growing so quickly that its popularity has been touted as "Pinsanity.”

The moniker for its success is well deserved; the site has more than 11 million unique visitors, and it's growing. It gets more referral traffic than YouTube, Linkedin and Google+. The demographics of the site are interesting too. Most of its users are young women.

But what's the appeal? Think of it as an online scrapbook or inspiration board – minus time spent rifling through magazines and newspapers and cutting and pasting. You can share pins, re-pin from others and organize your boards by themes such as food, travel, home decor and personal style. Users can pin items from websites they like using “Pin It” buttons on their browsers.

In the wake of Pinterest’s success, many large corporations are developing their own Pinterest presence. Nordstrom, HGTV, ModCloth, General Electric and Whole Foods Market are among the brands currently using the site. Small businesses also can make use of it to unveil new items or advertise a service.

There may be a fly in the ointment, however. Some web watchers have concerns over copyright violations, although the legal community believes Pinterest, like YouTube and Facebook, is protected by U.S. legislation, as long as it responds quickly to copyright complaints.

Is the Boom off U.S. Treasury Bonds?

U.S. Treasury bonds rallied in 2011, as a number of macroeconomic woes, including the European debt crisis, incited worries of a global market meltdown. Does that mean you should consider investing in them?  Yes, U.S. Treasuries are appealing. A portfolio of U.S. Treasuries with an average maturity of 20 years rose 28% in 2011, even better than its 26% jump in 2008, when we were in the midst of a financial crisis. The government securities haven’t seen a better year since 1995, according to Morningstar.

That doesn’t mean U.S. Treasuries are a sure thing.

No investment is.

The U.S. Treasury rally could wind down at any moment. In order to match the 2011 price rally, the 10-year U.S. Treasury yield would have to drop to about 1.05%, far below its record low of 1.72% in September 2011.

Are You Managing Your Finances Wisely?

Is your money being invested wisely? Are you nervous about the stock market right now?

If you are curious about how you could invest profitably right now, why not see if I can help you?

I will not try to push you into making any quick decisions and I will not waste your time.  I will just give you the honest facts about your financial situation.  And maybe I will help you earn a few dollars along the way! 

Just give my office a call at 804-897-3919 (Richmond area) or 757-223-0790 (Tidewater area) to arrange an appointment.