Friday Financial Five – November 13th, 2015

Friday, November 13, 2015

Daniel P. Forbes GoLocalWorcester MINDSETTER™

Gundlach still opposes a rate hike

Doubleline Capital’s Jeff Gundlach, considered by many to have assumed Bill Gross’ mantle as the leader in fixed income investment, doesn’t believe in a December rate hike. Aside from assessing that most bond managers aren’t ready for rise in rates, he made several other points against the Fed taking action. There is the absence of meaningful inflation, especially with the continuation of low oil prices. While the European Union continues economic stimulus, the U.S. would be cutting rates, a drastic disconnect between two regions with similar growth. Most important to Gundlach is the drop in the junk bond index, which is at four-year low.

Lew advocates for myRA

Jacob Lew, the Treasury Secretary, released a statement this week promoting the use of https://myra.gov/)" target="_blank">myRA as the “stepping stone” to greater savings. Workers may not have experience or options in terms of saving for retirement and some aren’t comfortable with investment markets they don’t understand. myRA provides a beginner’s experience for tax deferred savings for those that don’t have a retirement plan at work. As Lew points out, it’s a simple and safe way to begin the process of saving for retirement. It’s no longer feasible to think of Social Security as the sole source of retirement income.

House pushing a replacement fiduciary bill

Raising fiduciary responsibility for retirement account advisers remains a priority and the House of Representatives is working on a bill separate from the Department of Labor’s. While the House bill also requires advisers to work in the client’s best interest and disclose compensation and fees, it’s an effort to reduce the DOL bill’s negative consequences on low and middle income families. The fight will continue between those that want complete fiduciary responsibility and an industry that simply wants full disclosure.

Short window to file and suspend

‘File and suspend’ is the strategy for taking Social Security benefits where a higher earning spouse would file for benefits at full retirement age (FRA) and then suspend benefits to accrue retirement credits. The lower earning spouse subsequently claimed spousal benefits. This option is going away effective April 30, 2016 but remains an option to consider until then. Single people who are or will turn 66 within six months of November 2nd can also file and suspend at any point within that timeframe, once reaching full retirement age. This allows the banking of those benefits while earning roughly 8 percent annually until age 70, along with the option to request suspended benefits in a lump sum.

Fantasy sports companies on the ropes

Daily fantasy sports companies are in the New York Attorney General’s crosshairs, with Draftkings and FanDuel receiving a cease-and-desist order to halt operations in the state. Furthermore, Marketwatch reports major financial institutions may wash their hands of the companies altogether. Citigroup, Wells Fargo, Visa, PayPal and MasterCard are all reviewing the ramifications of processing financial transactions that may be deemed illegal.

Dan Forbes, a CFP Board Ambassador, is a regular contributor on financial issues. He leads the firm Forbes Financial Planning, Inc in East Greenwich, RI and can be reached at [email protected].

Related Slideshow: 2015 Worcester Business Award Winners

The Worcester Regional Chamber of Commerce has announced the winners of the 2015 Worcester Business Awards.

Here are the Winners:

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Richard B Kennedy Business of the Year

Imperial Distributors

"For its outstanding commitment and dedication to the Chamber’s mission, vision, and values. Founded in 1939, the company will celebrate its 75th anniversary as the performance leader in supermarket non-foods distribution and merchandising services. Under President and CEO Michael Sleeper’s leadership, Imperial has made substantial contributions to the continued economic vitality of the region through community investment and service." - WRCC

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The Small Business of the Year

West Side Steak & BBQ

"As a small eatery, Westside Steak & BBQ continues to demonstrate that excellent customer service and high quality food are part of the recipe for a great business model! " - WRCC

Address: 2A Richmond Ave, Worcester

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The Entrepreneur of the Year

Skyscope Creative

"Founded in 2012, the eight-person operation is an eclectic mix of filmmakers, marketers, designers, and motion graphics artists producing high quality, award-winning videos. The company believes that the right video in the right place can deliver massive impact." - WRCC

Address: 40 Jackson Street, Suite 1120, Worcester

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The Family-Owned Business of the Year

Percy's TV and Appliance

"As a member of the Worcester business community for more than 80 years, the Lavine family has carried on a rich tradition of providing stellar customer service and exceptional products, and has demonstrated a commitment to the community. "- WRCC

Address: 19 Glennie Street, Worcester

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The Chamber Advocate of the Year

Jim Donoghue, Owner of Tweed's Pub

"A member of the Worcester Regional Chamber of Commerce’s Board of Directors. Mr. Donoghue during his time on the Board has helped to govern the Chamber in its mission to support the region’s business community, specifically the small business owner." -WRCC

Address: 229 Grove Street, Worcester

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The Chamber’s Silver Hammer Awards

"The awards are given yearly by the Chamber to acknowledge construction or rehabilitation projects that have an extraordinary visual and aesthetic impact on our physical landscape and that have brought new life to some of the region’s most historic assets." - WRCC

Spencer Bank - " For its rehabilitation of the former Fire & Telegraph Building on Park Avenue into a branch and a community room for public use" - WRCC

Winn Companies - " For its restoration of the former Worcester Technical High School into market-rate housing known as the Voke Lofts." - WRCC

Commerce Bank - "For its restoration of The Slater Building on Main Street." - WRCC

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The Joe Cohen Retailer of the Year Award

Crompton Collective

"For growing business through innovative ideas, such as the addition of a farmer’s market and most recently, the addition of a unique event venue." - WRCC

Address: 138 Green Street, Worcester

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Ambassador of the Year Award

Maureen Raillo, President and CEO, WLimo

"For her continued support over the years—whether at golf tournaments, committee meetings, after-work events—to advance the mission of the Chamber." - WRCC

Address: 219 West Boylston Street, West Boylston