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Weekly Commentary – September 19, 2010

Posted in Uncategorized, tagged atlanta financial advisor, atlanta wealth manager, Calandra Financial Group, estate planning, Investing Advice, Kennesaw financial planner, Phil Calandra, safe money on September 21, 2011 | Leave a Comment »

Eyes on Europe and the Fed

U.S. stocks posted solid performance Friday to wrap up a five-day winning streak for the first time since July. The Dow and the S&P 500 were each up around 5% for the week, while the NASDAQ climbed 6.3% for the week. The five-day move was the best we’ve seen in two years.[1]

Stocks rallied Thursday after the European Central Bank announced a coordinated action with other central banks and the U.S. Federal Reserve to offer banks easier access to dollar loans. That move, combined with comments from French and German leaders expressing confidence in Greece’s place in the euro-zone, helped propel the market’s performance last week.[2] It is likely that comments from European leaders and bankers will continue to drive investor sentiment as the debt crises in Europe continues.

It is against the backdrop of European woes and a softening U.S. economy that the Fed will hold its policy-setting meeting Tuesday and Wednesday. The Federal Open Market Committee expanded its meeting from one to two days, which some investors have taken as a signal that action will be taken, though what that action will be is not clear.

One suggestion is that the Fed will try to pump money into the economy by purchasing bonds through a third round of quantitative easing, known as QE3. But this modified version of QE3, coined Operation Twist, would involve trying to boost lending by swapping out short-term bonds with long-term ones. The intended outcome of this swap would be to lower long-term interest rates without increasing the size of the Fed’s balance sheet.[3] At this point though, we can only speculate about what the Fed will do.

In the week ahead, eyes will be focused on Europe and the Federal Reserve as they work to keep money flowing around the world.

ECONOMIC CALENDAR:

Monday – Housing Market Index

Tuesday – Housing Starts, FOMC Meeting Announcement

Wednesday – Existing Home Sales, EIA Petroleum Status Report

Thursday – Jobless Claims

Data as of 09/16/2011	1-Week	YTD	1-Year	5-Year	10-Year
Standard & Poor’s 500	5.35	-3.31	8.12	-1.57	1.13
Dow	4.70	-0.59	8.63	-0.09	1.98
NASDAQ	6.25	-1.15	13.9	3.46	5.47
MSCI EAFE	4.41	-10.9	-2.81	-2.50	2.98
10-year Treasury Note (Yield Only)	1.91	N/A	2.76	4.80	4.84

Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. N/A means not available.

HEADLINES:

President Barack Obama said on Saturday that Americans need to be ready to “pay their fair share” to narrow the deficit, previewing his proposals to Congress that are expected to include more taxes on the rich. On Monday, the President will call for a new minimum tax rate for individuals making more than $1 million a year to ensure that they pay at least the same percentage of their earnings as middle-income taxpayers, according to administration officials.[4]

Wall Street was cordoned off for a second consecutive day Sunday as about 300 to 400 people remained near Chase Manhattan Plaza for a protest dubbed “Occupy Wall Street.” A smaller group, followed by a column of police motorcycles, marched uptown on Broadway as people beat drums, strummed guitars, and held up signs reading “end corporate welfare” and “we are too big to fail.”[5]

With Europe’s credit and banking crisis seeming to get worse by the day, there are now several reports that Brazil – as well as Russia, India, and China – may look to buy up a portion of sovereign debt from troubled European nations. The creation of a so-called euro bond, which would act as a common debt instrument much like the euro now acts as a unified currency, has been mentioned by many economists and financial experts as a possible way to help end the crisis.[6]

QUOTE OF THE WEEK:

There isn’t a person anywhere who isn’t capable of doing more than he thinks he can. –Henry Ford
RECIPE OF THE WEEK:

Frozen Crème Brulee

From: Vegetarian Times

These simple crèmes are made of vanilla ice cream topped with a brulee of soft caramel.

Ingredients:

2 cups vanilla ice cream, slightly softened

2/3 cup granulated sugar

1/4 cup evaporated milk

Fresh berries or mint sprigs for garnish, if desired

Directions:

1) Spread 1/2 cup ice cream into 4 oval crème brulee ramekins. Freeze until firm.

2) Meanwhile, combine sugar and 1/3 cup water in saucepan, and bring to a boil over medium-high heat, stirring to make sure sugar dissolves. Using pastry brush dipped in water, wipe down inner sides of saucepan to dissolve any sugar crystals that cling. Cook mixture about 10 minutes, or until it begins to caramelize (swirl pot to brown evenly). Cook 1 to 2 minutes more or until caramel is medium-brown. Remove from heat, and stir in 2 tablespoons water. Let cool 3 minutes, stirring occasionally. Stir in evaporated milk. Cool completely.

3) Spread thin layer of cooled caramel over ice cream in ramekins. Return to freezer until ready to serve. Garnish with fresh berries or mint sprig, if desired.

GOLF TIP OF THE WEEK:

Short Game Swing

It is better to think long, slow, and smooth for the short game. Precision is important around the green, so there isn’t much margin for error. It’s vital that you maintain a steady, smooth rhythm and tempo for every short shot you hit. Forcing yourself to make a short swing because you have to move the ball a short distance throws off your timing.

Instead, try counting through each short shot you hit: “One, two, three.” Count “one” as you start the club away from the ball, “two” when you reach the top of the swing, and “three” as you swing through. From 40-yard pitch shots to delicate chips off the apron, maintain this same count. If you do, you’ll find it much easier to make consistent contact.

HEALTH TIP OF THE WEEK:

Tea Off in the Morning

Hot tea can slash your risk of kidney cancer by 15 %, according to a review in the International Journal of Cancer.

GREEN TIP OF THE WEEK:

Use Cloth Grocery Bags

Paper or plastic? Paper is better, but cloth is even better than that. Try buying a few cloth grocery bags and take them with you to the grocery store. Some stores will even give you a discount for using reusable bags. If expense is an issue, just buy 1-2 at a time, until you eventually are using all cloth bags.

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Investment advisory services offered by Calandra Wealth Management, LLC – A Georgia Registered Investment Advisor.

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.

[1] http://money.cnn.com/2011/09/18/markets/stocks_lookahead/index.htm

[2] http://www.marketwatch.com/story/us-stock-indexes-rise-for-fifth-day-2011-09-16?dist=markets

[3] http://pragcap.com/operation-twist-qe3-style

[4] http://www.msnbc.msn.com/id/44563075/ns/politics-the_new_york_times/t/obama-tax-plan-demand-more-millionaires

[5] http://www.bloomberg.com/news/2011-09-18/wall-street-occupied-by-a-few-hundred-people-as-protesters-ranks-dwindle.html

[6] http://money.cnn.com/2011/09/14/markets/thebuzz/index.htm?iid=SF_E_River

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Special Update – July 18, 2011

Posted in Uncategorized, tagged atlanta financial advisor, atlanta wealth manager, Calandra Financial Group, estate planning, financial advisor, retirement, safe money on July 19, 2011 | Leave a Comment »

THE MARKETS:

Balance the budget; curtail spending; reduce debt – three aspects of simple fiscal management. At one time or another, nearly every American has done these things to keep their financial house in order. Now it’s the government’s turn. Trouble is, the powers that be haven’t agreed on how to do it. Meanwhile, all the posturing in Washington is fueling investor frustrations as experts warn that failing to raise the debt ceiling will have disastrous consequences. Why is this such a complicated issue? And perhaps more importantly, why does immediate action need to be taken?

At a fundamental level, the problem is that the U.S. government spends more money than it takes in (See Chart). In order to cover the bills, it borrows money, thus the national debt. In theory, the debt ceiling is supposed to help Congress control spending, in reality, it isn’t working. Since 1962, the ceiling has been raised 74 times, ten of which have occurred since 2001.[1]

What is the debt ceiling anyway?
It is a limit set by Congress on the amount of debt the federal government can borrow. The limit applies to debt owed to the public (e.g. U.S. bond holders) and debt owed to federal government trust funds such as those for Social Security and Medicare.[2]

How high is the debt ceiling right now? The ceiling is currently set at $14.294 trillion. The country’s accrued debt reached that mark on May 16, 2011. Currently, Treasury Secretary Timothy Geithner is taking various measures to allow the government to continue borrowing until August 2^nd.[3]

What now?
Nobody knows for sure how things are going to play out and the uncertainty is frustrating to say the least. Here are a few of the options that are currently being debated:

1) Do nothing.
This is not an option we want to see elected. If no action is taken, the Treasury will not have authority to borrow any more money. And since the government borrows to make up the difference between what it spends and what it collects, funds would not be available to pay the country’s bills.

Failure to act would create serious economic repercussions. At a minimum, a default would hurt U.S. bonds, the dollar, and investors’ portfolios. And while a total government shutdown is unlikely, many who depend on government checks – from active-duty soldiers, veterans, and federal workers to name a few – could find their mailboxes empty. Which payments would be delayed is not known, but any choice would cripple parts of the economy and anger many groups of Americans.[4]

2) Agree on a plan to reduce the budget deficit and national debt.
A package of $4 trillion in spending cuts and revenue increases is widely considered by fiscal experts to be the only way to start reining in the runaway U.S. debt.[5] In this respect, the key issue is not just that a deal be made, but that it qualifies as a long-term solution.

Two key ratings agencies have said they expect policymakers to agree on a plan to meaningfully reduce the debt. Moody’s Investors Services said Wednesday it would likely change its outlook on U.S. debt from “stable” to “negative” unless “substantial and credible agreement is achieved on a budget that includes long-term deficit reduction.”[6] Standard & Poor’s went farther on Thursday by announcing there is a fifty percent chance it would downgrade the U.S. within 90 days if a credible agreement is not reached.[7]

And while most Americans understand that changes need to be made, the politicians can’t agree on what those changes should be. To quote the president, “The American people are sold” on the idea of balancing spending cuts with tax increases. The problem is members of Congress are dug in ideologically.”[8]

To be fair, deciding where to cut and where to spend is challenging. Take a look at this chart.

Even if the government agreed to cut all discretionary spending it wouldn’t make up for half of the deficit. Even eliminating social security and all defense spending would barely cover the deficit. And of course, that can’t be done. So as you see, policy makers have a serious challenge on their hands.

3) Raise the debt ceiling again.
Most experts agree that policymakers will raise the debt ceiling. If for no other reason, because the consequences of not doing so are too great. If the debt ceiling is breached, interest that the government pays on its debt will rise, pushing the deficit even higher.

Federal Reserve Chairman Ben Bernanke was on Capitol Hill Thursday, warning that failure by Congress to raise the debt ceiling would create “a calamitous outcome.” Global confidence in U.S. Treasuries and the nation’s AAA credit rating are among our nation’s greatest economic assets, and according to Bernanke, “Losing that credit rating would be a self-inflicted wound”.[9] It would also be bad news for the labor market, the Fed chairman explained, which is an area of growing concern since the June jobs report showed hiring slowed to a crawl. In short, failing to raise the debt ceiling would be bad news all around.

It is our hope that a combination of efforts involving raising the debt ceiling and implementing a plan to begin reducing the deficit will be agreed upon promptly.

What are we doing in the meantime?
We have determined that it is too risky to try and predict what the outcome of this situation will be, and if we get a prediction wrong, it could cost our clients money. Overall, we have confidence that some sort of agreement will be reached and we do not think now is the time to take drastic action. We realize it may not be especially reassuring for you to hear this, but we believe it is the best choice.

Rather than reacting too conservatively or aggressively, we continue to maintain that a balanced approach to investing, including diversification and maintaining long-term vision, is the best way to weather storms like this. We will, however, keep a close eye on the situation and monitor how any developments have the potential to affect your portfolio.

If you have any questions or concerns, please don’t hesitate to reach out to us. It is a pleasure serving you.

Data as of 07/15/2011	1-Week	YTD	1-Year	5-Year	10-Year
Standard & Poor’s 500	-2.06	4.65	20.0	1.29	0.83
Dow	-1.40	7.79	20.5	3.24	1.84
NASDAQ	-2.45	5.16	24.0	7.39	3.38
MSCI EAFE	-2.76	1.87	16.9	1.28	NA
10-year Treasury Note (Yield Only)	3.02	NA	2.98	5.06	5.26

QUOTE OF THE WEEK:

“To laugh often and much; to win the respect of intelligent people and the affection of children…to leave the world a better place…to know even one life has breathed easier because you have lived. This is to have succeeded.” – Ralph Waldo Emerson
RECIPE OF THE WEEK:

Cranberry Sorbet

From: Better Homes and Gardens
Simply cook and puree cranberries, strain, then freeze for a frosty and easy dessert.
It also serves as a palate pleaser between courses.

Ingredients:

1-1/2 cups water

3/4 cup sugar

2 cups cranberries

Directions:

1) Line the inside of an 8x4x2-inch loaf pan with plastic wrap; set aside. In a medium saucepan, combine water, sugar, and cranberries. Cook over medium heat until mixture just boils, stirring to dissolve sugar. Remove from heat. Cool slightly. Pour, half at a time, into a blender or food processor. Cover and blend or process until mixture is nearly smooth. Strain through a fine mesh sieve (should have 2 to 2-1/2 cups sieved cranberry mixture).

2) Pour sieved mixture into lined loaf pan. Cover and freeze for 2 hours or until mixture is nearly frozen. Stir well, scraping frozen mixture from sides of pan. Spread mixture evenly. Cover and freeze overnight.

3) To serve, let stand at room temperature for 5 to 10 minutes. Spoon into dessert cups or dishes.

4) Makes 8 to 10 servings.

GOLF TIP OF THE WEEK:

Add Some Power

If you would like more power behind your swing, avoid shifting your weight too much. To make sure you make a full turn with the proper weight shift, take your regular stance, then turn and point your right toe to the left. This will restrict your hip-turn and allow your arms to stay wider at the top of your back swing.

A way to practice this is with a ball under your right heel. This, too, will restrict you from turning too much. Just make sure you are in good shape if you try this and be careful to maintain your balance.

If you would like to opt-out of future emails, please reply to this email with UNSUBSCRIBE in the subject line.

Investment advisory services offered by Calandra Wealth Management, LLC. – A Georgia Registered Investment Advisor.

Opinions, estimates, forecasts and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. We believe the information contained in this commentary has been obtained from sources that are reliable.

This material is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.

Diversification does not guarantee against a loss.

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

[1] http://money.cnn.com/2011/01/03/news/economy/debt_ceiling_faqs/index.htm

[2] http://money.cnn.com/2011/01/03/news/economy/debt_ceiling_faqs/index.htm

[3] http://money.cnn.com/2011/01/03/news/economy/debt_ceiling_faqs/index.htm

[4] http://money.cnn.com/2011/07/13/news/economy/debt_ceiling_fallout/index.htm?iid=EAL

[5] http://money.cnn.com/2011/04/13/news/economy/debt_commission_obama/index.htm?iid=EL

[6] http://www.moodys.com/research/Moodys-Places-US-Aaa-Government-Bond-Rating-and-Related-Ratings?lang=en&cy=global&docid=PR_221800

[7] http://www.standardandpoors.com/ratings/articles/en/us/?assetID=1245302886884

[8] http://www.bloomberg.com/news/2011-07-15/house-to-vote-on-2-4-trillion-debt-increase-spending-cuts.html

[9] http://money.cnn.com/2011/07/14/news/economy/bernanke_testimony/index.htm?iid=EL

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Special Edition – 2nd Quarter Commentary

Posted in Uncategorized, tagged atlanta financial advisor, atlanta wealth manager, Calandra Financial Group, estate planning, financial advisor, Money Advice, Phil Calandra, safe money on July 5, 2011 | Leave a Comment »

THE MARKETS:
Amidst the ups and downs of the past few weeks, our move into a new quarter was barely noticed by national media. Let’s take a brief look back at the second quarter.

April – The quarter opened with government budget deadlines looming and Congress passing a last-minute spending bill that cut $2 billion, allowing agencies to spend money through April 15. By that time, lawmakers expected to determine a budget for the remaining six months of the fiscal year.[1] The initial uncertainty did not sit well with investors, but signs that consumer confidence was rising, job numbers were increasing, unemployment was at a two-year low,[2] and industrial production was growing, helped optimism win out.[3] The month ended with a strong earnings season coupled with increases in personal spending, personal income, and gradual improvement in the nation’s job picture. All in all, the Dow finished 4.3% higher for the month[4] and the S&P 500 hit a three-year high.[5]

May – The month began riding high on a wave of positive news, reinforced by a drop in oil prices,[6] but attention was quickly drawn to the Euro zone situation as Greece’s credit rating continued to fall.[7] U.S. investors closely monitored the situation even as volatility crept back into the markets based on less positive economic reports.[8] Unfortunately the month’s numbers continued to tick downward on a slowed recovery.

June – Economic reports on the slowdown in jobs and hiring, housing, and consumer spending all contributed to negative media which fed investor fears. But even as economists trimmed their forecast for 2011 GDP growth to 2.7%, they still predicted stronger growth for the second half of the year.[9] Positive growth in manufacturing,[10] particularly suppliers’ rebound from Japan’s March earthquake, led the markets to their best weekly performance since July 2009 last week, ending the quarter with fireworks.[11]

The past three months have been a prime example of the cyclical nature of investing. Undoubtedly, the markets change quickly, but their predictability should not be judged by a deluge of pessimistic (or overly optimistic) media reports. Prudent investors strive to maintain a balanced perspective and ignore fanatical fear-mongering while staying the course to better days.

ECONOMIC CALENDAR: Monday – US Holiday: Independence Day Tuesday – Factory Orders Wednesday –ADP Employment Report, ISM Non-Mfg Index
Thursday – BOE Announcement, ECB Announcement, Jobless Claims, EIA Petroleum Status Report Friday – Employment Situation

Data as of 07/01/2011	3-Month	1-Week	YTD	1-Year	5-Year	10-Year
Standard & Poor’s 500	0.51	5.61	6.52	30.4	1.09	0.94
Dow	1.47	5.43	8.68	29.3	2.57	1.98
NASDAQ	0.96	6.15	6.15	34.0	5.93	3.03
MSCI EAFE	-3.90	6.48	6.46	32.6	1.32	3.13
10-year Treasury Note (Yield Only)	NA	2.87	NA	2.93	5.14	5.39

HEADLINES:

June marked the end of the Federal Reserve’s second round of quantitative easing, also known as QE2, in which it purchased $600 billion worth of treasury bonds to keep interest rates low and help spur lending and economic growth.[12]

On Thursday, the Greek parliament passed a controversial five-year austerity program in an attempt to prevent financial default. The legislation will implement €28 billion Euros ($40.6 billion) in tax hikes, spending cuts and other measures. The vote also allows the release of a delayed €12 billion in aid and renews discussions about a second bailout.[13]

Social gaming company, Zynga Inc., filed for an initial public offering Friday hopes to raise as much as $1 billion from investors. Zynga, which created Facebook games such as “FarmVille” and “CityVille,” reported a net profit of $90.6 million for the year and has over 236 million monthly users.[14]

Fast food restaurants like Burger King, Sonic and coffee company, Starbucks, are experimenting with adding alcohol to their standard menu offerings. Burger King recently opened “Whopper Bars” in six U.S. cities, which sell beer for about $4.25 a bottle. Starbucks has begun selling beer for about $5 a bottle and wine for up to $9 a glass in some Seattle stores in an effort to boost sales.[15]

QUOTE OF THE WEEK:

“Nearly all men can stand adversity, but if you want to test a man’s character, give him power.” – Abraham Lincoln

RECIPE OF THE WEEK:

Lemon-Meringue Beehives

From: Better Homes and Gardens

Servings: 8 servings

Total: 1 hr. and 5 mins

Ingredients:

2 egg whites 1 teaspoon lemon juice 1/ 4 teaspoon cream of tartar 2/ 3 cup of sugar 1/2 cup purchased lemon curd 1 cup fresh loganberries, black berries, or other berriesfind more recipes with this ingredient

Store Brand Cauliflower 2 for $4.00
Regular
Loyalty Card Required
thru 2011-05-31

Winn-Dixie

Directions:

1. Let egg whites stand at room temperature in a large mixing bowl for 30 minutes. Meanwhile, line baking sheet with parchment paper or foil. Using a pencil, draw eight 2-1/4-inch circles and eight 1-3/4-inch circles about 1 inch apart on the paper.* Turn paper pencil-side down on baking sheet; set aside. Preheat oven to 300 degree F.

2. Add lemon juice and cream of tartar to egg whites. Beat with mixer on medium speed until soft peaks form (tips curl). Add sugar, 1 tablespoon at a time, beating on high speed about 7 minutes or until very stiff peaks form (tips stand straight) and sugar is almost dissolved.

3. Using a pastry bag fitted with a medium (1/4-inch) round tip, pipe a flat base of meringue onto all of the circles on the paper. Pipe a ring of meringue onto edges of each of the 8 larger meringue rounds, building the sides 3/4 inch tall by piping a continuous coil of meringue to form a small shell. For tops, pipe a coil of meringue on smaller rounds to make a cone shape that resembles the top of a beehive.

4. Bake in a 300 degree f oven for 30 minutes. Turn off oven. Let meringues dry in oven, with door closed, at least 1 hour. Remove dry meringues from paper. Place in an airtight container. Store in a cool, dry place for up to 1 week.

5. Just before serving, spoon 1 tablespoon of lemon curd into each bottom meringue shell. Place a few berries on lemon curd. Prop top of meringue beehive next to bottom. Makes 8 servings.

GOLF TIP OF THE WEEK:

Less Spin Equals More Distance

The next time you clean your clubs, skip the driver. Let those grooves get a little bit clogged up. The fewer grooves there are the less spin is induced on the ball, thus causing it to fly farther. Sometimes the simplest things can make a difference.

If you would like to opt-out of future emails, please reply to this email with UNSUBSCRIBE in the subject line.

Investment advisory services offered through Calandra Wealth Management, LLC – A Georgia Registered Investment Advisor.

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

[1] http://money.cnn.com/2011/04/08/news/economy/budget_deal/index.htm

[2] http://money.cnn.com/2011/04/15/markets/markets_newyork/index.htm

[3] http://www.msnbc.msn.com/id/42605261/ns/business-eye_on_the_economy/

[4] http://money.cnn.com/2011/04/29/markets/markets_newyork/index.htm

[5] http://www.bloomberg.com/news/2011-06-24/asian-stocks-rise-treasuries-drop-on-eu-support-for-greece-oil-rebounds.html

[6] http://www.marketwatch.com/story/oil-paring-some-losses-in-asian-trading-2011-05-05

[7] http://www.marketwatch.com/story/fitch-cuts-greece-warns-against-re-profiling-2011-05-20

[8] http://www.valueline.com/Markets/Daily_Updates/Stock_Market_Today__Close_-_May_6,_2011.aspx

[9] http://money.cnn.com/2011/06/10/news/economy/recession_economic_survey/index.htm?iid=HP_LN

[10] http://www.ism.ws/ISMReport/nonmfgROB.cfm

[11] http://money.cnn.com/2011/07/01/markets/markets_newyork/index.htm?iid=Lead

[12] http://blogs.wsj.com/marketbeat/2011/06/30/qe2s-winners-and-losers/?mod=google_news_blog

[13] http://www.marketwatch.com/story/greek-austerity-expected-to-clear-final-vote-2011-06-30

[14] http://www.smartmoney.com/invest/stocks/zynga-files-for-1-billion-ipo-1309546448489/?link=SM_hp_featStory

[15] http://www.msnbc.msn.com/id/43608911/ns/business-consumer_news/

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Weekly Commentary – June 13, 2011

Posted in Uncategorized, tagged atlanta financial advisor, atlanta wealth manager, Calandra Financial Group, estate planning, find a financial advisor in atlanta, income planning, Investing Advice, retirement, safe money, Your Financial Life on June 16, 2011 | Leave a Comment »

THE MARKETS:

With hiring at a crawl, home prices at a low, consumer and business spending slowing, and the stock market logging its sixth straight week of losses, headlines continue to declare doom and gloom.[i] As is frequently the case, all this negative press has caused investor sentiment to swing wildly. The latest American Association of Individual Investors (AAII) survey shows that bearish sentiment jumped 14.2% last week alone.[ii] Despite the bearish sentiment though, there are positive markers that bode well for a slow-growth recovery.

While leading economists have trimmed their forecast for 2011 GDP growth to 2.7% from 3% a month ago, they are still predicting stronger growth for the second half of the year. 2.7% isn’t that far off the 2.9% growth we saw in 2010.[iii] Additionally, manufacturing continues to expand and the ISM Non-Manufacturing Index for May reported that economic activity grew in May for the 18th consecutive month, providing a pleasant surprise last Friday.[iv] And while U.S. supply was significantly reduced in the auto and technology sector as a result of the earthquake in Japan, the problems are being steadily resolved.[v]

Lower commodity prices are also a positive side effect of slowed growth. All things being equal, as commodity prices fall, growth prospects improve. In fact, Goldman Sachs Group recently turned bullish on commodities, making the case that dropping prices will stimulate growth and send commodity prices rising again.[vi] This aptly illustrates the cyclical nature of our economy.

Strong corporate earnings have allowed for cheaper stocks. Interest rates remain extremely low and aren’t expected to start rising until at least a year from now. [vii] U.S. exports climbed to an all-time high on Thursday, increasing to $175.6 billion in April,[viii] and now comprise 13% of the GDP.[ix] As you can see, there is still a lot of positive information out there.

Market sentiment and media reports often go hand-in-hand. When circumstances seem glum, the good news tends to get buried behind fearful forecasts. And while it can be tempting to go with the flow and join the ranks of anxious investors, we urge you to examine every part of the economic picture before drawing conclusions.

ECONOMIC CALENDAR: Tuesday – Producer Price Index, Retail Sales, Business Inventories Wednesday – Consumer Price Index, Empire State Mfg Survey, Industrial Production, Housing Market Index, EIA Petroleum Status Report
Thursday – Housing Starts, Jobless Claims, Philadelphia Fed Survey Friday – Consumer Sentiment

Data as of 06/10/2011	1-Week	YTD	1-Year	5-Year	10-Year
Standard & Poor’s 500	-2.24	1.06	16.9	0.30	0.05
Dow	-1.64	3.23	17.5	1.95	0.89
NASDAQ	-3.26	-0.34	19.2	4.76	1.94
MSCI EAFE	-2.95	1.56	24.6	1.48	2.36
10-year Treasury Note (Yield Only)	3.00	NA	3.32	4.98	5.33

HEADLINES:

Oil prices fell 2.5% Friday on reports that Saudi Arabia plans to increase production 13% to 10 million barrels per day. The increased production is expected to slow this year’s 26% rise in oil prices and the 2% increase in gasoline.[x]

The Fed will buy $50 billion of Treasury’s in the final series of government bond purchases that marks the last phase of QE2. Launched in November 2010, the purchases will end June 30, though the stimulus will continue with the Fed reinvesting maturing securities.[xi]

The White House confirmed that it is considering cutting the payroll taxes that businesses pay. In December employees began paying 4.2% of their wages, two percentage points less than usual, while employers continue to pay the standard 6.2%. The potential policy change hopes to improve employment numbers by promoting hiring.[xii]

Paying a total of $2,626,411, an anonymous donor has won lunch with Warren Buffett. Already winning the eBay auction, the bidder topped their previous offer by $100. Proceeds from the auction benefit Glide, an organization that benefits poverty-stricken residents of the San Francisco Bay area.[xiii]

QUOTE OF THE WEEK:

Nothing can stop the man with the right mental attitude from achieving his goal; nothing on earth can help the man with the wrong mental attitude. – Thomas Jefferson
RECIPE OF THE WEEK:

Strawberry Bruschetta

From: Better Homes and Gardens
Makes 24 servings.

Ingredients:
1 8-ounce loaf baguette-style French bread

1 8-ounce tub cream cheese

1 tablespoon honey

2 cups strawberries, sliced

1/4 cup strawberry jelly

Directions:

1. Heat oven to 375 degree F. Cut bread into 24 slices about 1/4-inch thick. Place in a single layer on an ungreased cookie sheet. Bake about 10 minutes or until lightly brown, turning once.

2. Stir together cream cheese and honey; spread on one side of each bread slice. Arrange strawberry slices on the cheese. Heat jelly in a custard cup in a microwave oven on high power for 30 seconds; stir (or heat and stir in a small saucepan until melted). Brush jelly over strawberries. Makes 24 servings.

Make-Ahead Tip:

Toast the bread and store in a covered container at room temperature up to 2 days or freeze up to 1 month. Stir together the cream cheese and honey; cover and refrigerate up to 2 days.

GOLF TIP OF THE WEEK:

Focus on the Finish

A good finish is the bookend to a good swing. While practicing, one of the best ways to develop a proper finish is to start at the address position and slowly take your club to the finished position with no back swing. Pose in a perfect follow-through, hold the pose, and feel it. Once you sense what a good finish position feels like, make a slow, short swing such as a chip or pitch that concludes in that exact position and pay no attention to your back swing for the moment. Just make a swing that finishes in this balanced follow-through position. Repeat the drill several times, and slowly work your way back up to a full swing.

If you would like to opt-out of future emails, please reply to this email with UNSUBSCRIBE in the subject line.

Investment advisory services offered through Calandra Wealth Management, LLC. – A Georgia Registered Investment Advisor.

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

[i] http://money.cnn.com/2011/06/10/news/economy/recession_economic_survey/index.htm?iid=EL

[ii] http://www.aaii.com/sentimentsurvey

[iii] http://money.cnn.com/2011/06/10/news/economy/recession_economic_survey/index.htm?iid=HP_LN

[iv] http://www.ism.ws/ISMReport/nonmfgROB.cfm

[v] http://www.smartmoney.com/invest/stocks/why-the-market-worrywarts-are-wrong-1307117379674/

[vi] http://www.smartmoney.com/invest/stocks/why-the-market-worrywarts-are-wrong-1307117379674/

[vii] http://www.smartmoney.com/invest/stocks/why-the-market-worrywarts-are-wrong-1307117379674/

[viii] http://www.nytimes.com/2011/06/10/business/10markets.html

[ix] http://online.wsj.com/article/BT-CO-20110609-708605.html

[x] http://www.businessweek.com/ap/financialnews/D9NP4RCG1.htm

[xi] http://www.cnbc.com/id/43356436

[xii] http://blogs.marketwatch.com/election/2011/06/10/employer-payroll-tax-proposal-panned/

[xiii] http://money.cnn.com/2011/06/10/news/companies/buffett_lunch/index.htm?iid=HP_LN

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Weekly Commentary – June 6, 2011

Posted in Uncategorized, tagged atlanta financial advisor, atlanta wealth manager, Calandra Financial Group, estate planning, find a financial advisor in atlanta, income for life, income planning, Kennesaw financial planner, safe money, Wealth Management on June 7, 2011 | Leave a Comment »

THE MARKETS:

U.S. Stocks fell for the fifth straight week after disappointing reports on jobs and manufacturing fueled concerns that economic growth is slowing. The S&P 500 slid 2.3% to 1,300, its lowest level since March, while the Dow fell 290.32 points, or 2.3%, to 12,151.[1] Should this be cause for alarm? This week, we would like to share what some industry insiders have recently said about the matter.

“Our view is that we’re clearly seeing a slowdown, but you’d need a shock to the system to see things get much worse from here. There’s little room for error, but there are reasons to expect growth, and we don’t see a whole heck of a lot more downside.”[2]
- Andrew Goldberg, market strategist at J.P. Morgan Funds in New York

“We don’t see material downside from here. A five percent correction is appropriate for the slowdown we’re experiencing, and over the intermediate term, our expectation is that we’ll regain some momentum.”[3]
- Jim McDonald, chief investment strategist at Northern Trust Global Investments

“Investors should be looking for buying opportunities. The economy is not as bad as it looks right now.[4]
- Byron Wien, vice chairman of Blackstone Advisory Partners

From experience we know that the “experts” aren’t always right. In this case, we agree things are not as bad as some of the headlines make them out to be. The recovery is progressing slower than we would like, but it is still progressing. Until employers start persistently hiring again, the housing market gets straightened out, and Washington figures out what to do about the deficit, the recovery is going to ebb and flow.

The events that ultimately led up to the so-called Great Recession took years, even decades to unfold. In a similar way, the economy will take years to recover, not weeks or months. It is good to keep this fact in mind when we pick up the newspaper, turn on the television, or visit our favorite news website.

As always, we are vigilantly monitoring the situation and pledge to keep you informed about key issues. If you have any questions or concerns about how recent events could affect your financial future, please don’t hesitate to reach out to us. It is our pleasure to serve you!

ECONOMIC CALENDAR:
Monday: Ben Bernanke Speaks
Tuesday: Consumer Credit
Wednesday: EIA Petroleum Status Report, Beige Book
Thursday: International Trade, Jobless Claims
Friday: Import and Export Prices, Treasury Budget

Data as of 06/03/2011	1-Week	YTD	1-Year	5-Year	10-Year
Standard & Poor’s 500	-2.32	-3.38	17.9	0.19	0.31
Dow	-2.33	4.96	18.5	1.61	1.06
NASDAQ	-2.29	3.01	18.6	4.63	2.71
MSCI EAFE	0.21	4.65	25.6	0.22	2.64
10-year Treasury Note (Yield Only)	3.06	NA	3.38	4.99	5.35

HEADLINES:

Greece has agreed to speed its sale of state-owned property and cut billions of dollars more from its budget to satisfy requirements for promised loans from the International Monetary Fund and other European countries.[5]

The president of Toyota Motors said on Saturday he expects the automaker to resume full production globally in November and its Japanese output is expected this month to recover to 90% of levels seen before the March earthquake.[6]

Two bottles of the world’s oldest Champagne, which spent about 170 years at the bottom of the ocean, sold for 54,000 euros ($78,400) at an auction in Finland today.[7]

The computer phishing attack that Google says originated in China was directed, somewhat indiscriminately, at an unknown number of White House staff officials, setting off the Federal Bureau of Investigation inquiry that began this week, according to several administration officials.[8]

QUOTE OF THE WEEK:

“Intellectual growth should commence at birth and cease only at death.” – Albert Einstein
RECIPE OF THE WEEK:

Hickory Nut Macaroons

From: Better Homes and Gardens

Servings: 36 cookies

Total: 30 minutes

Ingredients:

4 egg whites

4 cups sifted powdered sugar

2 cups chopped hickory nuts, black walnuts, or toasted pecans

Directions:

1. In a large mixing bowl beat egg whites with an electric mixer on high speed until stiff, but not dry, peaks form. Gradually add powdered sugar, about 1/4 cup at a time, beating at medium speed just until combined. Then beat 1 to 2 minutes more or until well combined. Fold in the nuts by hand.

2. Drop mixture by rounded teaspoons 2 inches apart onto parchment-lined or foil-lined cookie sheets (grease foil).

3. Bake in a 325 degree F oven about 15 minutes or until edges are very light brown.* Transfer cookies to wire racks and let cool. Store in a tightly covered container at room temperature for up to 3 days or in the freezer for up to 3 months.

Note: It is normal for these cookies to split around the edges as they bake.

GOLF TIP OF THE WEEK:

Hitting From a Bald Spot

Lies without much grass under the ball can be a problem, but there are specific things you can do to increase your chances of nailing your shot.

To guard against hitting fat, place your weight on your front hip and stand closer to the ball so your club shaft is more vertical and your club head is on its toe. This will reduce the bounce of the club, and decrease your chance of snagging your club head because less of its surface is exposed to the ground. Your upright posture also causes you to raise your hands at address, protecting your wrists from over cocking. Since the heel of your club is slightly off the ground, position the ball toward the toe of your club where you need to make contact. A slightly off-center hit produces a much softer shot that will allow for a full swing.

If you would like to opt-out of future emails, please reply to this email with UNSUBSCRIBE in the subject line.

Investment advisory services offered through Calandra Wealth Management, LLC – A Georgia Registered Investment Advisor.

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

[1] http://www.bloomberg.com/news/2011-06-04/dow-falls-in-longest-slump-since-2004-amid-concern-about-economy.html

[2] http://www.reuters.com/article/2011/06/03/markets-stocks-idUSN0317002220110603

[3] http://www.reuters.com/article/2011/06/03/markets-stocks-idUSN0317002220110603

[4] http://www.bloomberg.com/news/2011-06-04/dow-falls-in-longest-slump-since-2004-amid-concern-about-economy.html

[5] http://www.washingtonpost.com/business/economy/greek-european-officials-agree-on-additional-cuts/2011/06/03/AG1BXKIH_story.html

[6] http://www.reuters.com/article/2011/06/04/us-toyota-president-idUSTRE7530PF20110604

[7] http://www.bloomberg.com/news/2011-06-02/world-s-oldest-champagne-from-shipwreck-may-sell-for-145-million-a-bottle.html

[8] http://www.nytimes.com/2011/06/04/technology/04hack.html

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Weekly Commentary – May 23, 2011

Posted in Uncategorized, tagged atlanta financial advisor, atlanta wealth manager, Calandra Financial Group, estate planning, financial advisor, Investing Advice, safe money, Your Financial Life on May 23, 2011 | Leave a Comment »

THE MARKETS:

The sovereign debt situation in Europe and particularly in the PIIGS (Portugal, Italy, Ireland, Greece, and Spain) has been a feature in the news since early last year. In recent days though, additional attention has been drawn to this issue as international ratings agency, Fitch, lowered Greece’s credit rating further into junk status Friday. They also warned that any attempt to extend the maturities of Greek sovereign debt would be treated as a default.[i]

Likewise illuminating the significance of this problem, eighty-five percent of international investors surveyed by Bloomberg last week said Greece will probably default on its debt, with majorities predicting the same fate for Ireland and Portugal. The European Commission said on May 13 that Greece’s debt will reach 166 percent of gross domestic product next year, the highest for any country in the euro’s history.[ii]

Perhaps you are wondering why debt problems on the other side of the world matter here in the U.S. Admittedly, Greece’s annual output is only about one-half of one percent of the world’s output and less than three percent of Europe’s GDP[iii]. But if the problems extend into other Eurozone countries, triggering additional defaults, a slowdown in European growth could occur, creating further drag on the world economy.

To bring matters closer to home, with U.S. debt projected to grow more than 275 percent by 2035[iv], the U.S. has financial problems too. American political leaders disagree on how to solve these problems just as Greece’s leaders do. This is another reason why many people are watching Europe so closely – they recognize that important lessons can be learned by evaluating how debt problems abroad are resolved.

No one can say with certainty how the sovereign debt crisis will be resolved. Regardless of what happens though, rest assured that we will continue to monitor the situation both domestically and abroad, and will keep you informed about anything with the potential to affect your finances.

ECONOMIC CALENDAR:
Tuesday: New Home Sales
Wednesday: Durable Goods Orders, EIA Petroleum Status Report
Thursday: GDP, Jobless Claims, Corporate Profits
Friday: Personal Income and Outlays, Consumer Sentiment, Pending Home Sales Index

Data as of 05/20/2011	1-Week	YTD	1-Year	5-Year	10-Year
Standard & Poor’s 500	-0.34	6.01	24.4	1.05	0.32
Dow	-0.66	8.07	24.3	2.46	1.07
NASDAQ	-0.89	5.67	27.2	5.56	2.75
MSCI EAFE	-0.21	3.88	28.6	0.21	2.25
10-year Treasury Note (Yield Only)	3.19	NA	3.26	5.05	5.39

HEADLINES:

The average U.S. price of a gallon of gasoline has dropped about 9 cents over the past two weeks bringing the national average for a gallon of mid-grade to $4.05. For premium it’s $4.16 a gallon.[v]

With the effects of the earthquake in Japan rippling through the auto industry and causing shortages, prices are rising for both new and used cars. It is also anticipated that fewer models and options will be available come summer, especially for the hybrids and fuel-efficient vehicles that Japan produces.[vi]

Oil slid to its lowest price in almost three months last week as a stronger dollar, increasing crude-oil stockpiles, and decreasing demand all took a toll on prices. Crude oil for June delivery dropped 46 cents to $96.91 a barrel on the New York Mercantile Exchange, the lowest settlement since Feb. 22.[vii]

The number of American households behind on mortgage payments hovered at its lowest level in nearly two years during the first quarter, but the number of borrowers in foreclosure stayed near record high levels, the Mortgage Bankers Association said on Thursday.[viii]

QUOTE OF THE WEEK:

“Don’t find fault, find a remedy.” – Henry Ford

RECIPE OF THE WEEK:

Berry-Lemon Trifle

From: Better Homes and Gardens

Ingredients:

2 cups cubed angel food cake

1 8-ounce carton lemon low-fat yogurt

1/4 of an 8-ounce container frozen light whipped dessert topping, thawed

1 cup mixed berries

Fresh mint (optional)

Directions:

Divide angel food cake cubes among 4 dessert dishes. In a small mixing bowl fold together the yogurt and whipped topping. Dollop yogurt mixture atop cake cubes. Sprinkle with berries. If desired, garnish with fresh mint. Makes 4 servings. Total preparation time is 15 minutes.

GOLF TIP OF THE WEEK:

Take a Deep Breath

Taking a deep breath before you swing will help put oxygen in your system and keep your head clear. It gives your cells energy to allow your muscles to perform their best. Put simply, deep breathing helps you hit better shots. Why do you think most basketball players precede their free throws by taking a few good, deep breaths? Many bad swings are made during moments when we are short of breath. Why do you think they call it choking? So take a deep, relaxed breath before you swing.

Insert your broker/dealer disclosures here. i.e. Securities offered through “Your B/D Name Here,” Member FINRA/SIPC.

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

[i] http://www.marketwatch.com/story/fitch-cuts-greece-warns-against-re-profiling-2011-05-20

[ii] http://www.bloomberg.com/apps/news?pid=20601087%20&sid=aV6fzL4vHVrQ

[iii] https://www.cia.gov/library/publications/the-world-factbook/geos/gr.html

[iv] http://www.cbo.gov/ftpdocs/108xx/doc10871/frontmatter.shtml

[v] http://www.chicagotribune.com/news/local/chi-ap-us-gasprices,0,2189289.story

[vi] http://www.latimes.com/business/autos/la-fi-autos-buying-20110522,0,5320016.story?track=rss

[vii] http://www.bloomberg.com/news/2011-05-17/oil-falls-as-u-s-housing-starts-decline-damping-economic-growth-optimism.html

[viii] http://online.wsj.com/article/SB10001424052748704816604576333222700445278.html?mod=googlenews_wsj

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Weekly Commentary – May 16, 2011

Posted in Uncategorized, tagged annuity, atlanta financial advisor, atlanta wealth manager, Calandra Financial Group, financial advisor, Financial Planner, find a financial advisor in atlanta, income planning, Investing Advice, Kennesaw financial planner, Phil Calandra, safe money, Wealth Management on May 16, 2011 | Leave a Comment »

SPECIAL EDITION: Annual Report on the financial health of Medicare and Social Security

Each year the Trustees of the Social Security and Medicare trust funds report on the current and projected financial status of the two programs. This year’s report was released on Friday, and we thought you might like to know about the key findings.

According to government predictions, Medicare’s largest trust fund will run out of money in 2024, five years earlier than projected last year. The program’s faulty finances are, in part, a symptom of the sluggish economy. Higher projected health-care costs and lower payroll taxes are being blamed for the shortfall. Pressure will doubtless intensify in Washington as a bipartisan effort is made to shore up the 46-year-old healthcare plan that covers more than 47 million elderly and disabled Americans.

Regarding Social Security, the report showed that expenditures exceeded the program’s non-interest income in 2010 for the first time since 1983, and that the program faces a $46 billion deficit for 2011. The projected point at which the combined Trust Funds will be exhausted comes in 2036 – one year sooner than projected last year. At that time, there will be sufficient income to pay only 77% of scheduled benefits.

The report concluded by saying that, “projected long-run program costs for both Medicare and Social Security are not sustainable under currently scheduled financing, and will require legislative corrections if disruptive consequences for beneficiaries and taxpayers are to be avoided. The financial challenges facing Social Security and Medicare should be addressed soon. If action is taken sooner rather than later, more options and more time will be available to phase in changes so that those affected can adequately prepare.”[1]

While it is impossible for us to address all the nuances of Medicare and Social Security in this brief communication, let alone all the proposed solutions, we wish to draw your attention to the two italicized words at the end of the previous paragraph: adequately prepare. Of all the information we found in the eye-crossing 244 page report (you can read it here: http://www.socialsecurity.gov/OACT/TR/2011/tr2011.pdf), these two words strike us as most significant.

No one can predict with certainty what the future of Medicare and Social Security will be. Most people agree that reforms are needed and that changes will be made, but what those changes will be and how they will affect beneficiaries, remains to be seen. What we do know, is that we must adequately prepare in every way possible.

Adequate preparation requires a number of things. It involves taking your life expectancy into consideration when deciding what withdrawal rates are sustainable in your portfolio. It includes choosing an asset allocation that is likely to keep pace with inflating healthcare costs. It means considering whether long-term-care or other insurance coverage is right for you. It dictates determining the best time to start collecting benefits. Many important decisions must be made when preparing for the future and it is unwise to rely too heavily on government programs for support. Although making the right decisions can be challenging, we are here to guide you through the process.

If you have questions about how anything in this report could affect you or your loved ones, please don’t hesitate to reach out to us. We are here to serve you.

ECONOMIC CALENDAR:
Monday – Empire State Manufacturing Survey, Treasury International Capital, Housing Market Index
Tuesday – Housing Starts, Redbook, Industrial Production
Wednesday – FOMC Minutes
Thursday – Jobless Claims, Existing Home Sales, Philadelphia Fed Survey, Leading Indicators

Data as of 05/13/2011	1-Week	YTD	1-Year	5-Year	10-Year
Standard & Poor’s 500	-0.18	6.37	15.6	0.72	0.74
Dow	-0.34	8.79	16.8	2.13	1.64
NASDAQ	0.03	6.62	18.1	5.21	3.42
MSCI EAFE	-1.61	4.11	18.9	-0.55	2.37
10-year Treasury Note (Yield Only)	3.16	NA	3.56	5.19	5.48

HEADLINES:

The average 401(k) balance rose to $74,900 at the end of March, Fidelity said, the highest since the firm began tracking the data in 1998 and a 12% jump from a year ago. Nearly 10% of participants raised their contribution rate during the first quarter, also a record.[2]

Consumers continued to feel the pinch at grocery stores and gasoline stations in April as higher prices pushed up a widely used index of inflation to the fastest 12-month pace since the later part of 2008, according to government figures released Friday. The Labor Department said the consumer price index, the most widely used measure of inflation, was up 0.4 percent in April from March, and up 3.2 % from a year earlier.[3]

US oil drilling activity slipped this week, down by 6 rotary rigs compared with a year ago, Baker Hughes Inc., an oilfield services company, reported. Land operations had the biggest loss, down 7 units, and inland waters activity decreased by 2 rigs. In what has become an unusual situation, offshore drilling registered the only increases, up by 3 rigs to a total of 33 rigs drilling in US waters.[4]

The euro fell against all but two of its 16 most-traded counterparts, reaching a six-week low against the dollar, on concern Greece may have to restructure its debt and the nation’s problems may spread in the region.[5]

QUOTE OF THE WEEK:

The strongest oak of the forest is not the one that is protected from the storm and hidden from the sun. It’s the one that stands in the open where it is compelled to struggle for its existence against the winds and rains and the scorching sun. – Napoleon Hill

RECIPE OF THE WEEK:

Garden Risotto

From: Better Homes and Gardens
Slow cooking, with stirring and watching, ensures success in producing the creamy results for this classic Italian side dish.

Servings: 4 side-dish servings

Total Time: 30 mins

Ingredients:

1 cup arborio rice or medium-grain white rice

2 tablespoons olive or cooking oil

2 cloves garlic, minced

3-1/4 to 3-1/2 cups reduced-sodium chicken broth or vegetable broth

1 cup shredded carrot

1/4 cup thinly sliced green onion

¼ to ½ cup shredded Parmesan or Romano cheese

2 tablespoons snipped fresh basil

Thin carrot curls (optional)

Basil leaves (optional)

Directions:

1. In a large saucepan cook and stir uncooked rice in hot oil over medium heat for 5 minutes. Add garlic; cook and stir 1 minute more.

2. Meanwhile, in a medium saucepan, bring broth to boiling; reduce heat and simmer.

3. Slowly add 1 cup of the broth to rice mixture (be careful of spattering, because broth will steam up when it hits the hot pan); stir constantly. Cook and stir over medium heat until broth is absorbed (about 5 minutes).

4. Add 2 more cups of broth, 1/2 cup at a time, stirring constantly until broth is absorbed. Stir in remaining broth, shredded carrot, and green onion. Cook and stir until rice is creamy and just tender. Stir in cheese and snipped basil.

5. If desired, garnish with the carrot curls and basil leaves. Makes 4 side-dish servings.

GOLF TIP OF THE WEEK:

Keep Your Emotions in Check

To get yourself back on track after a poor shot, ask yourself these four questions:

1) How was my tempo or rhythm?

2) Was I fully committed to the club, target, and type of shot?

3) How well did I visualize the shot in advance?

4) How did that shot “feel”?

By running through this checklist to determine the reason behind a bad shot, you’ll keep your tension level low and your emotions in check.

Insert your broker/dealer disclosures here. i.e. Securities offered through “Your B/D Name Here,” Member FINRA/SIPC.

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

[1]All information in this commentary is taken from: http://www.socialsecurity.gov/OACT/TR/2011/tr2011.pdf

[2] http://online.wsj.com/article/SB10001424052748703730804576313682030967852.html

[3] http://www.bls.gov/news.release/cpi.nr0.htm

[4] http://www.ogj.com/index/article-display/6817829475/articles/oil-gas-journal/drilling-production-2/drilling-operations/20100/may-2011/us-drilling_decreases.html

[5] http://www.bloomberg.com/news/2011-05-14/euro-drops-to-six-week-low-versus-dollar-before-ministers-meet-on-greece.html

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The 4 Pillars of Perpetual Portfolio Planning

Posted in Uncategorized, tagged Atlanta, atlanta financial advisor, atlanta wealth manager, Calandra Financial Group, Financial, financial advisor, find a financial advisor in atlanta, investing, newstalk 1160 am, safe money, Wealth Management on May 15, 2011 | Leave a Comment »

A strategic approach to building financial security in any economy, during any economic cycle.

Click Here to Download!

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Weekly Commentary – May 9, 2011

Posted in Uncategorized, tagged Atlanta, atlanta financial advisor, atlanta wealth manager, Calandra Financial Group, financial advisor, find a financial advisor in atlanta, income for life, retirement, safe money, senior annuity, Wealth Management on May 9, 2011 | Leave a Comment »

THE MARKETS:

More jobs and more oil – two things we have to be thankful for. When Americans are gainfully employed, they spend more and the economy grows. When there’s extra oil supply, its value drops and gas prices usually follow.

The employment picture has been improving since the beginning of the year, with a total of 768,000 jobs added since January. This momentum was carried through the month of April with the economy adding 244,000 jobs, the Labor Department reported Friday.[i] April was the strongest month for business hiring since February 2006, and the job gains were distributed across multiple business sectors. In fact, 73% of the nation’s industries have added jobs in the last six months alone. That’s the most broad-based job gain on record since 1998.[ii]

Last week finally gave us a break from the recent run-up in oil prices as crude tumbled 15% to its biggest weekly decline in more than two years.[iii] In just one week, light, sweet crude fell from a close of $113.93 to a close of $97.18 a barrel on the New York Mercantile Exchange.[iv] After nearing $114 a barrel as fears about supplies took hold following escalating violence in Libya, a close below $100 is more than welcome.

The 15% drop in oil prices revives hope that lower gas prices will follow. And while oil usually needs to hover in this price range for a couple weeks before gas prices will fall, some analysts are predicting that prices will drop to an average of $3.75 per gallon by Memorial Day, and $3.50 by mid-summer.[v] Some areas of the country have already seen a decrease in prices. Nigel Gault, chief economist for IHS Global Insight was quoted by USA Today as saying that “If this sticks, it’s worth about 20 cents off the price at the pump.”[vi]

These are two areas of the economy that we have been watching closely, and it is nice to see these positive trends. If things continue moving in this direction, it will probably have a positive impact on the American financial system.

ECONOMIC CALENDAR:
Tuesday – Import and Export Prices, Redbook
Wednesday – International Trade, Treasury Budget
Thursday – Producer Price Index, Retail Sales, Jobless Claims, Business Inventories
Friday – Consumer Price Index, Consumer Sentiment

Data as of 05/06/2011	1-Week	YTD	1-Year	5-Year	10-Year
Standard & Poor’s 500	-1.72	6.56	18.8	0.22	0.58
Dow	-1.34	9.17	20.1	1.83	1.54
NASDAQ	-1.60	6.58	21.9	4.14	2.90
MSCI EAFE	-2.93	5.81	26.0	-0.64	2.45
10-year Treasury Note (Yield Only)	3.30	N/A	3.40	5.11	5.18

HEADLINES:

News of Bin Laden’s death led U.S. stocks to trade higher on Monday morning, but the so-called “Bin Laden Rally” quickly fizzled after investors concluded his death does little to ease global economic and political risks.[vii]

G.M. Reported that their earnings tripled in the first quarter, as revenue jumped 15%. The company’s profit was more than triple what it achieved in the same period a year ago, and its fifth consecutive profitable quarter.[viii]

U.S. born radical Anwar al-Awlaki is expected to become Al Qaeda leader Bin Laden’s successor. It’s understood that he survived a U.S. drone attack on a car in Yemen on Thursday. U.S. born radical al-Awlaki is widely believed to be the mastermind behind a number of terror atrocities and the leader of Al Qaeda in the Arabian Peninsula.[ix]

Fannie Mae reported a net loss of $6.5 billion for the first quarter as a weakening housing market dashed hopes that the company had stabilized. Fannie said Friday it would ask the government for a fresh taxpayer infusion of $6.2 billion after paying dividends to the Treasury. The loss follows net income of $73 million during the previous quarter. [x]

Eurozone members are debating milder recovery terms for debt-hit Greece as it struggles to stick to a harsh austerity plan, Greek media said Saturday after emergency talks in Luxembourg. The reports said Finance Minister George Papaconstantinou had flown to a “secret” meeting among G20 eurozone states that debated giving Athens more time to repay a 110-billion-euro ($157 billion) EU-IMF loan and easier deficit reduction targets.[xi]

QUOTE OF THE WEEK:

“A mind that is stretched by a new experience can never go back to its old dimensions.” – Oliver Wendell Holmes, Jr.

RECIPE OF THE WEEK:

Coffee and Cookies Brownies

From: Better Homes and Gardens
Use refrigerated sugar cookie dough to create the crust for this simple coffee-flavored brownie dessert.

Ingredients:

1 16.5 to 18-oz pkg. refrigerated sugar cookie dough

2 eggs, lightly beaten

1 19.5 oz. pkg. milk chocolate brownie mix

1/2 cup cooking oil

1/3 cup coffee liqueur or cooled strong coffee

1 cup semisweet or bittersweet chocolate pieces

Directions:

1. Preheat oven to 350 degrees F. Press sugar cookie dough into bottom of a 13x9x2-inch baking pan; set aside.

2. In a large bowl combine the eggs, brownie mix, cooking oil, and coffee liqueur until just combined. Spread batter over sugar cookie dough. Sprinkle with chocolate pieces.

3. Bake for 40 minutes or until edges are set. Cool in pan on a wire rack. To serve, cut into bars. Makes 24 brownies.

GOLF TIP OF THE WEEK:

Hooking problem? Maybe it’s your grip.

A hook occurs when the club face is closed in relation to your swing path, causing counterclockwise side spin and resulting in a hook to the left or right depending on whether you are left or right handed.

It could be that a simple repositioning of your hands on the club could help. When you hold your club, your non dominant hand should show the thumb and index knuckles. If you start seeing the back of your hand angling up, and/or you see the fingers of your dominant hand, your grip is too strong. To fix this, roll your hands forward towards the target so that the back of your hand faces the hole.

Investment advisory services offered through Calandra Wealth Management, LLC – A Registered Investment Advisor

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

[i] http://www.bls.gov/news.release/pdf/empsit.pdf

[ii] http://money.cnn.com/2011/05/06/news/economy/april_jobs_report_unemployment/index.htm

[iii] http://www.marketwatch.com/story/oil-paring-some-losses-in-asian-trading-2011-05-05

[iv] http://www.marketwatch.com/story/oil-paring-some-losses-in-asian-trading-2011-05-05

[v] http://autos.aol.com/article/oil-prices-gas-prices-down/

[vi] http://www.usatoday.com/money/industries/energy/2011-05-06-average-gas-prices-peak-4_n.htm

[vii] http://www.reuters.com/article/2011/05/02/markets-global-idUSN0220536420110502

[viii] http://www.nytimes.com/2011/05/06/business/06motors.html

[ix] http://www.dailymail.co.uk/news/article-1384550/Man-tipped-bin-Ladens-successor-survived-U-S-drone-attack-Yemen.html

[x] http://online.wsj.com/article/SB10001424052748704810504576307551540613850.html

[xi] http://www.google.com/hostednews/afp/article/ALeqM5i0DDiSRNfU8-kVTjWZDX90zQsmOA?docId=CNG.a3c776d3b8de46644e7c5f74ac90dcfd.561

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Weekly Commentary – May 2, 2011

Posted in Uncategorized, tagged atlanta financial advisor, atlanta wealth manager, Calandra, Calandra Financial Group, estate planning, financial advisor, Financial Planner, find a financial advisor in atlanta, income for life, income planning, Investing Advice, Money, Phil Calandra, retirement, safe money, senior annuity, Wealth Management on May 2, 2011 | Leave a Comment »

THE MARKETS:

Stocks finished sharply higher last week, leading major indexes to their best month so far this year.[i] A strong earnings season coupled with increases in personal spending, personal income, and gradual improvement in the nation’s job picture helped the Dow finish 4.3% higher for the month.[ii]

Also last week, Fed Chairman Ben Bernanke held his first-ever press conference to answer reporters’ questions in a televised setting. A clear effort was made to reassure a skeptical public that the central bank is doing everything it can to control inflation and expand the recovery. “It is very hard to blame the American public for being impatient,” the Fed Chairman told about 60 reporters at Wednesday’s news conference. Citing high unemployment and rising gas prices, Bernanke acknowledged that, “Conditions are far from where we would like them to be.”[iii]

Commenting on the Fed’s commitment to help curb excessive inflation, the Fed Chairman added, “If inflation persists or inflation expectations begin to move, then there is no substitution for action. We would have to respond… I think every central banker understands that keeping inflation low and stable is absolutely essential to a successful economy. And we will do what is necessary to ensure that that happens.”[iv] At a time when food and gas prices are on the rise, these words were comforting for many Americans to hear. And while stating that the recovery has been merely “moderate”, Bernanke also stressed the Fed’s belief that it is “sustainable”.

In spite of Mr. Bernanke’s constructive tone, we must reasonably acknowledge that the economic picture is not entirely rosy. Government data released Thursday showed that U.S. GDP slowed in the first quarter to 1.8% from 3.1% in the previous quarter, reflecting a spike in gasoline, higher overall inflation, and continued weakness in the housing market.[v]

Much like a ship captain monitors his navigational instruments, we will continue to monitor both the policy makers and the economic indicators that help us navigate the vast sea of investment options. Commentaries like this are our way keeping you informed of the course we are charting.

ECONOMIC CALENDAR:
Tuesday – Redbook, New Home Sales
Wednesday – Durable Goods Orders
Thursday – GDP, Jobless Claims , Corporate Profits
Friday – Personal Income and Outlays, Consumer Sentiment

Data as of 04/29/2011	1-Week	YTD	1-Year	5-Year	10-Year
Standard & Poor’s 500	1.96	8.43	13.0	0.81	0.88
Dow	2.44	10.7	14.7	2.54	1.85
NASDAQ	1.89	8.32	14.4	4.74	3.84
MSCI EAFE	2.24	9.00	16.3	0.58	2.76
10-year Treasury Note (Yield Only)	3.40	N/A	3.73	5.07	5.31

HEADLINES:

The death toll from this week’s storms rose to 343 Saturday, according to an NBC News count, making the tornado outbreak the second deadliest in U.S. history. Catastrophe risk modeling company EQECAT said that with initial reports of nearly 10,000 destroyed buildings, property insurance losses were expected to range from $2 to $5 Billion.[vi]

President Barack Obama used his weekly address to the nation to reiterate his call on Congress to stop granting tax subsidies to oil and gas companies. Despite recent signs of economic recovery, families across the country are experiencing “real pain” from soaring gas prices, Obama said.[vii]

Prince William and Kate Middleton have been pronounced husband and wife at Westminster Abbey in London. The Duke and Duchess of Cambridge, as they will now be known, made their vows in front of 1,900 guests and the eyes of the world.[viii]

The U.S. Federal Trade Commission is preparing an investigation of Google Inc.’s dominance of the Internet search industry by alerting high-tech companies to gather information for the probe, three people familiar with the matter said. The probe is examining whether Google discriminated against other services in search results and stopped websites from accepting rival ads.[ix]

Al Qaeda leader Osama bin Laden, a mastermind of the largest terrorist attack in American history, was killed Sunday in Pakistan in a military operation after the U.S. learned of his location.[x]

QUOTE OF THE WEEK:

Happiness is not something you postpone for the future; it is something you design for the present. – Jim Rohn

RECIPE OF THE WEEK:

Roasted Red Pepper and Artichoke Dip

From: Betty Crocker
Roasted red peppers add color to a one-dish dip requiring 10 minutes of prep time.

Ingredients:

1 jar marinated artichoke hearts, drained (6 to 7 ounces)

½ cup drained roasted red bell peppers (from 7-ounce jar)

1 package cream cheese, softened (3 ounces) find more recipes with this ingredient Philadelphia Cream Cheese Spread with Blueberry Fruit Spread 2 for $3.00
Cream Cheese Spread with Blueberry Fruit Spread
Assorted Varieties, 8-oz pkg. SAVE UP TO $1.58 ON 2
thru 2011-04-2

Publix

½ cup sour cream

¼ cup chopped fresh parsley

Assorted crackers or veggie crisps

Directions:

1. In food processor, place artichoke hearts and bell peppers. Cover and process until coarsely chopped. Add cream cheese, sour cream and parsley. Cover and process just until blended.

2. Garnish dip with additional chopped fresh parsley if desired. Serve with crackers.

GOLF TIP OF THE WEEK:

What’s In Your Bag?

What is the best set makeup for an average player? Assuming that you’re going to adhere to the 14-club limit, you’ll want to assemble a set with which you use all the clubs and have no distance gaps. To show how to pick the set that suits you best, here is an average list of clubs and yardages. These yardages may not apply to your game, but you should be able to apply the same principle.

Woods:
Driver – 200 yards
3-Wood – 190 yards
5-Wood -180 yards
7-Wood – 170 yards
9-Wood – 160 yards
11-Wood – 150 yards
13-Wood – 140 yards
15-Wood – 130 yards

Irons:
2-Iron – 190 yards
3-Iron – 180 yards
4-Iron – 170 yards
5-Iron – 160 yards
6-Iron – 150 yards
7-Iron – 140 yards
8-Iron – 130 yards
9-iron – 120 yards
P. W. – 110 yards
S. W. – 90 yards

The idea is to pick a set that gives you a consistent distance spread from club to club. If you do not hit your 3 and 4 irons well, then take them out of your bag and replace them with a 5 and 7 wood. This will at least close any distance gaps created because of the unused clubs. As you can see, there is an overlap between the woods and irons all the way from 130 to 190 yards. If you’re not comfortable hitting a certain iron, simply replace it with the corresponding wood, and vice versa.

Insert your broker/dealer disclosures here. i.e. Securities offered through “Your B/D Name Here,” Member FINRA/SIPC.

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

[i] http://money.cnn.com/2011/04/29/markets/markets_newyork/index.htm

[ii] http://money.cnn.com/2011/04/29/markets/markets_newyork/index.htm

[iii] http://transcripts.cnn.com/TRANSCRIPTS/1104/27/qmb.01.html

[iv] http://transcripts.cnn.com/TRANSCRIPTS/1104/27/qmb.01.html

[v] http://money.cnn.com/2011/04/28/news/economy/1q_gdp_report/index.htm?iid=EL

[vi] http://www.msnbc.msn.com/id/42834400/ns/weather/

[vii] http://www.politico.com/news/stories/0411/53977.html