Amy Buttell, a freelance writer and editor, tackled the complex issue of when to claim Social Security Benefits in an article for Bankrate.com. I provided background information and am quoted in the article.

“Retirement planning is complicated, beginning with the decision about when to begin taking your Social Security benefits. On one hand, if you need the money and don’t expect to live into your 80s, it is tempting to take Social Security as early as possible — at age 62 — to benefit from the income stream. On the other hand, you can increase your monthly payment considerably by waiting until age 70. Most people underestimate how long they are going to live.

“I like to frame the Social Security benefits issue discussion with my clients by offering a definition of it as an inflation-protected joint and survivor annuity backed by the U.S. government,” says Tim Kober, a Certified Financial Planner with Cedar Financial Advisors in Portland, Ore.

“This provides context for the ‘when to claim’ question,” he says. “The present value of Social Security payments is equal over your expected lifetime, regardless of when you claim it. If, as Clint Eastwood would say, ‘You’re feeling lucky,’ claiming late makes sense.”

You can read the full article here When should you apply for Social Security? – Bankrate.com

The article was syndicated at Yahoo! Finance. Given that it is election season, there are plenty of comments on the health of the Social Security system and the wisdom of the Government continuing the program. You can read the full article and comments here When should you apply for Social Security? – Yahoo! Finance

January 2010: Tim helped the Ebers family with a Portfolio makeover, published in Money Magazine. You can read about the Ebers family and the advice I provided here.

Brent Hunsberger, the personal finance columnist for The Oregonian, tackled the often complex topic of annuities in his Sunday column. My take: immediate annuities have a role in retirement income planning. However, it’s important to understand the embedded costs and “apples to apples” cash-equivalent yield of a variable annuity with a Guaranteed Lifetime Income Benefit before making a purchase decision.

By Brent Hunsberger, The Oregonian August 22, 2009

…It’s apparent why they’re popular and being hawked aggressively by agents. Last year’s stock market dive sent investors scurrying for cover. Still others grappled with the (real) risk that they might outlive the money they set aside for retirement.

One of their refuges: Fixed annuities. Sales of individual fixed annuities increased by 39 percent in the first half of 2009, according to LIMRA. Variable annuity sales dropped 26 percent.

This is good news in a sense. Fixed annuities pay you a rate that won’t change in the future, no matter how the insurance company invests it. Variable annuities had been all the rage, but they often weren’t the financial deal that owners thought they were getting.

“The guaranteed income is compelling to a lot of people, especially in this environment where people are looking for safety and predictability,” said Tim Kober, a fee-only financial planner at Cedar Financial Advisors in Portland. “The question becomes, at what cost.” …

Read the entire article at OregonLive.com

June 2009: Tim is quoted at Kiplinger.com in an article entitled “7 Ways Your Money Will Never Be the Same” An article about the changing investment landscape.

Read the full article

Update: Jeffery Kosnett, Senior Editor, discusses his article on ABC news

7 Ways your money will never be the same

Brent Hunsberger at the Oregonian wrote today on the ongoing process to select a new manager for the Oregon College Savings Plan. You can read the article here.

Now that the plan is open for a new manager, we have the opportunity to make the Oregon Plan “Best in Class”. A model Plan is the Ohio CollegeAdvantage 529 Savings Plan. I commented on the article with a description of key features, and a request for Oregonians to get engaged by providing comments to the Oregon College Savings Network Board. You can read my feedback here.

Standard & Poor’s Indices Versus Active Funds Scorecard, Year End 2008

Standard & Poor’s Index Services released today the year-end 2008 results for its Standard & Poor’s Index Versus Active Fund Scorecard (SPIVA). The key findings are summarized below. SPIVA draws its underlying data from University of Chicago’s CRSP Survivor-Bias-Free U.S. Mutual Fund Database.

· Over the five year market cycle from 2004 to 2008, S&P 500 outperformed 71.9% of actively managed large cap funds, S&P MidCap 400 outperformed 79.1% of mid cap funds and S&P SmallCap 600 outperformed 85.5% of small cap funds. These results are similar to that of the previous five year cycle from 1999 to 2003.

· The belief that bear markets favor active management is a myth. A majority of active funds in eight of the nine domestic equity style boxes were outperformed by indices in the negative markets of 2008. The bear market of 2000 to 2002 showed similar outcomes. [emphasis added]

· Benchmark indices outperformed a majority of actively managed fixed income funds in all categories over a five-year horizon. Five year benchmark shortfall ranges from 2-3% per annum for municipal bond funds to 1-5% per annum for investment grade bond funds.

· The script was similar for non-U.S. equity funds, with indices outperforming a majority of actively managed non-U.S. equity funds over the past five years.

A brutal bear market is tough enough, but there’s no reason to underperform the target index and pay more taxes due to high turnover. Index mutual funds and ETFs have shown once again that costs matter and that “winning by not losing” is an effective strategy.

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

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