Monthly Archives: December 2015

Financial Fact | Did You Know?

Published: December 2015

Historically, when the Federal Reserve (FED) has hiked interest rates, the S&P 500 performed quite well over the tightening cycle?

The charts below illustrate this point by showing the last three FED rate hikes.

 

Returns and Yield Changes During Rate Hiking Cycles:

S&P 500 Price Index and 10-Year US Treasury Yield Over the Last Three Rate Hiking Cycles

 

 

rate hike 1

rate hike 2

rate hike 3
Source: FactSet, Standard & Poor’s, J.P. Morgan Asset Management.
Guide to the Markets – U.S. Data are as of September 30, 2015
Past performance does not guarantee future results.  The S&P 500 (Standard & Poors Stock Index) is a stock market index containing the stocks of 500 American corporations with large market capitalization that are considered to be widely held.  The S&P 500 is unmanaged and cannot be invested in directly.

 

 

What’s Nick Reading | December 2015

There is an incisive educational video released by Morningstar, “Pension Lump Sum or Annuity: 5 Swing Factors,” that discusses the factors most individuals overlook in regards to choosing how to receive their benefits. With many individuals in Houston receiving layoffs (and having more rounds to come) it is especially timely to consider all the factors that affect this choice.
 

 

When taking a pension, most people understand that they have an option between a lump sum benefit (that can be rolled to an IRA) and an annuity. They know that an annuity means a guaranteed stream of income for as long as they live, and that a lump sum is a pool of money for them to invest. The dilemma we find is that most people do not realize there are other significant factors to consider when making the decision about how to take their pension.
 

 

Prior to taking an annuity, the pension health and other guaranteed income sources should be evaluated. When determining if a lump sum makes sense, interest rate discounting must be understood; especially since the Federal Reserve has recently raised the federal funds rate. Lastly the video makes a very good point in regards to investing the lump sum.  It warns there is risk involved both from the market and the individual.
Click Here to view the video from Morningstar.

nickNick Johnson, CFA®, CFP®

 

Nick Johnson believes that financial planning is more than numbers on a balance sheet and a standardized process. People are unique and should be treated as such.

 

As Vice President and a Wealth Manager at Willis Johnson & Associates, his goal is to really get to know his clients, all the while providing a proactive approach to comprehensive wealth management.

 


Thoughts From Willis | Our New Look!!

I hope you had a wonderful Thanksgiving with your loved ones and are looking forward to the upcoming holidays. As we head into the last month of 2015, I would like to take the opportunity to update you on what’s been happening behind the scenes at Willis Johnson & Associates. To put it simply, we have a new look: a new logo, a new website and new communications for our clients and prospects.

We are all very excited to announce our updated website. I encourage you to Click Here to experience our fresh new look, user-friendly navigation and a thorough description of our Houston based wealth management firm that specializes in helping corporate professionals with their financial planning needs.

We have worked very hard to ensure that our new site is artistically pleasing, more agile, interactive, and easier to navigate, enabling you to quickly find what you need. Just as important, our key messages and value proposition are evident and clear.

Throughout November and the first quarter of 2016, we are rolling out the following new email communications with the objective of being quick to read and meaningful to you:

-A new and more valuable Market Update with customized information for our clients based on specific positions in their accounts,

-What Nick’s Reading highlights interesting articles or videos with a brief commentary,

-A monthly Financial Fact will include very short “Did You Knows” regarding our thorough understanding of the transitions in your corporate life,

-And lastly, Thoughts from Willis, an email from me sharing my insight on a variety of financial topics.

Although our look has changed, our principles and values remain the same:

“Our mission is to accompany you on your financial journey by continuously planning during the various stages of your corporate life and beyond. Our unique and tailored methodology allows us to craft a financial plan and investment approach to help shape a better future for you and your family.”

We hope you enjoy our new look and find value in our new website and communications. Please do not hesitate to contact me if you have any questions.

Willis

Willis Johnson & Associates…Continuously Planning

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