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| Shoreline Wealth & Investment Management |
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Newsletter
October 2005 |
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The Stock & Bond Markets -
The head winds continue, both natural (Katrina & Rita) and economic with consumer confidence falling 18.9%, the biggest monthly decline since 1980. It's been tough to make a buck with the S&P 500 flat and the NASDAQ down for the year (we're up 2-5%). There continues to be lots of conflicting data but rising interest rates, rising gas prices, rising heating costs as we enter the winter months, uncertainty and low confidence would caution even the most optimistic among us. While we alway preach diversification, this seems to be an especially appropriate time to put the advice into practice (or contact us and we can assist in the process).
CELEBRATING 25 YEARS
Since 1980, I have been providing financial advice to investors and I'm proud to say that our service and performance (see "Bottom Line" section on the right) continue to be superior to the market and our peers. Thanks for your support.
Real Estate Bubble? -
While construction on and building permits for new homes slowed this past month and new home sales plunged 9.9% (the biggest monthly decline in 9 months), both are still on pace to set new records. The implication is that while the market has slowed, it has leveled off (for the time being) at a high level. Demand remains high due to job growth and long-term mortgage rates still within 1 percentage point of their 40-year low of 5.21% reached in July 2003.
The only area in which there might be some "signs" of a slow down (as opposed to a leveling off) is in the available supply of homes for sale which are at their highest level since 1988. Those who owned home between 1989 and 1994 know that prices can also go down and do so for a long time which can cause pain, particularly if that happens while their adjustable rate mortgage rates are increasing.
| Selecting an Advisor |
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 Warren Buffet, the most successful investor of the 20th century learned his craft from Benjamin Graham, author of several books including the legendary "Intelligent Investor." This has been recently updated by Jason Zweig who includes 16 key questions to ask your advisor and 11 an advisor might ask...
Read on... »
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| Private Investments vs. Publicly-Traded Investments |
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 Alternative investment vehicles such as hedge funds and private equity are often offered exclusively to high- net-worth individuals. In fact, it is the high-net-worth investor for whom this type of investment is best suited. Most alternative investments are structured as private limited partnerships open to no more than 100 accredited investors but the financial services industry has attempted to further democratize this type of investing ...
Full Story »
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| Business Transfer: Disinheriting Uncle Sam |
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 Federal and state estate and gift taxes (55% maximum), together with the generation-skipping transfer tax (GSTT) on transfers to persons two or more generations younger at a flat rate of 55%, combined with income taxes imposed over the years, can reduce the value of the business that a family can retain through the generations to an amount as low as 12 percent of the initial value. However, strategies to avoid this include ...
Learn More »
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| Looking for a Speaker for Your Event? |
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 Shoreline Wealth & Investment Management has given presentations to Fortune 500 companies as well as many local groups and organizations. If you are looking for a professional presentation on topics ranging from investments to estate taxes to business or tax law, please contact us
Click here for more details »
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| The Bottom Line |
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| This is where we provide the performance of our conservative, moderate and aggressive portfolios and compare these to the S&P 500 and NASDAQ Indexes. While they are an important consideration, performance is only a portion of the evaluation investors should consider when evaluating investment management. Other considerations include the risk taken to generate the returns, the quality of the service, the reasonableness of the fees and, more important now than ever, the integrity of the investment manager.
Find out more.... |
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email: cbloom@cfiemail.com
voice: 805.886.3624
web: http://www.swimllc.com/
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Shoreline Wealth & Investment Management · 3905 State Street Suite 7173 · Santa Barbara · CA · 93105 |
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