Cedar Financial Advisors-News and Views

Skip the safe and consider an online bank savings account

By Brent Hunsberger

…Regardless of all the bad headlines about our financial system and talk of deflation, you’ll do better for yourself keeping your money in an interest-bearing, federally insured account. One of the best places to do that these days is in an online savings account.

…What’s more, financial planners recommend them as a good way to help you start saving or to grow an emergency fund. They’re more out-of-sight, out-of-mind than the accounts at your local bank, though some providers do offer checking and ATM cards.

“For clients that are comfortable with an online banking experience versus a bricks and mortar experience,” said Tim Kober of Cedar Financial Advisors in Portland, “it’s an attractive and legitimate option.”

Read the entire article at OregonLive.com

The 2008 Callan Periodic Table of Investment Returns was recently published, and I have updated the website to include it.  The link to the Periodic Table is here.  It’s not a pretty picture.

All of the equity asset classes had significant negative returns.    The S&P 500 lost 37%; the worst year since its creation in 1957.  Prior to 2008 the biggest annual loss was 30% in 1974.  The only asset class with a positive return was the Barclays Capital Aggregate Bond Index.  The bond index name itself was a casualty – formerly known as the Lehman Brothers Aggregate Bond Index. The table is a useful tool to illustrate the benefit of diversification.  However, the 2008 column shows the limits of diversification when the global financial system is in crisis mode.

Tags: Asset Classes

Brent Hunsberger will be publishing a new column titled It’s only money in the Sunday business section. He also has a blog at http://blog.oregonlive.com/finance/  I plan to be a regular reader and blog contributor.  I’m glad to see that the Oregonian found the budget to replace Julie Tripp, especially since they have been cutting back staff in other areas.

Tags: Oregonian

I’m featured on the National Association of Personal Financial Advisors (NAPFA) website, with a Tips from the Top message about Medicare open enrollment.  Check it out at www.napfa.org

Tags: NAPFA

Plans Change. People Change. Shop and Compare.

All people with Medicare should:

· Review the 2009 costs for their current drug and health plan. Look at premium, co-pays and deductibles.
· Compare the cost and coverage to other plans in their area. Check to see if the plan covers their medicines, works with their pharmacy and doctors and covers the services they need)
· Choose a plan that meets their needs.

You can compare plans yourself by going to http://www.medicare.gov and selecting the option “compare plans”. You will need the complete name and dosage of each of your prescription drugs.

People with Medicare should review changes being made by their current plan and compare it to others to make sure it still meets their needs. Those who don’t have prescription drug coverage can also enroll in a drug plan through the end of the year.

Tags: Health Insurnace, Medicare