Will Santa's Sleigh be Light This Year? (December, 2009)

The stock market opened 2009 very poorly, but the economy has been showing signs of life over the past months. As you can imagine, the retail industry has been holding its breath this Holiday Season. Consumer spending makes up about 70% of the U.S. economy, so December is a particularly informative time about the state of the economy. With only a week to go until Christmas, this year’s numbers have been mixed.

Consumer sentiment has been at record lows throughout the year. With unemployment reading over 10%, Americans have been worrying about their own homes, jobs, and the prospects of a “jobless recovery.” This uncertainty understandably causes people to spend less. When home values and retirement accounts decline, consumers also tend to cut back. A recent CNN poll found that 49% of people will be spending less than last year, and 39% will be spending the same as last year, with the remaining 12% spending more. Charities are also being hit, with 51% of respondents saying that they will be giving less this year, as well. In an effort to save, many families are focusing on spending time together and less on presents this year.

The news might not all be bad, though. The retail numbers in November were better than expected with sales growing by 1.3%. Bargain hunters are pushing sales with 42% of shoppers expecting to buy from discount stores. After holding back for several months, many shoppers are finally releasing some of their pent-up demand. It also seems that this year shoppers are procrastinating more than in the past. According to the National Retail Federation, on average, people had finished 46.7% of their holiday shopping by the second week of December, the lowest since 2004. Retailers are looking forward to a big push by these last minute shoppers this weekend, with December 19^th being the busiest shopping day of the year, traditionally.

The official results will come out at the beginning of next year, and it is too early to tell if shoppers will be keeping a tight grip on their wallets this holiday season. This new era of frugality can be good for consumers if the habits they start this year carry over into the future. One positive is that the number of shoppers buying gifts on credit cards (with money they pontentially don’t have) has gone down slightly since last year. As we all know, overextension of credit is a main contributor to the mess our economy is trying to get out of. Let’s all hope our country as a whole and consumers individually have learned lessons from the past couple of years and that our economy will continue to recover throughout 2010.

Gobble 'til You Wobble

by The Alder Financial Group Staff

Thanksgiving is a wonderful day to spend time with family and friends, relax while watching the Macy's parade or football, and last but not least, enjoy really good food. In light of the holiday season, we would each like to share one of our favorite Thanksgiving recipes. I am sure you all have your own traditions, but if you get the urge to try something new, here are a few Alder suggestions.

Black-Eyed Pea Succotash With Creole Mustard

Shared by: Alan Gaylor

This recipe is for those who like a little something different for Thanksgiving dinner. The vinaigrette gives this vegetable mixture a little spice. It has become one of my favorites over the years. Plus, it is great to save for the next day's meal.

Ingredients:

6 cups water

1 1/3 cups dried black-eyed peas (about 8 ounces)

1 tsp salt

1 bay leaf

1/4 cup unseasoned rice vinegar

1 1/2 tbsp Creole mustard

1 tbsp honey

5 drops hot pepper sauce

6 tbsp extra-virgin olive oil

1 16-ounce package frozen corn kernels, thawed, drained

1/2 cup finely diced red onion

1/2 cup thinly sliced green onions

1/3 cup diced red bell pepper

1/3 cup finely diced green bell pepper

Directions:

Combine 6 cups water, black-eyed peas, salt, and bay leaf in large saucepan. Bring to boil. Reduce heat to medium-low and simmer until peas are just tender, stirring occasionally, about 35 minutes. Drain well; discard bay leaf.

Whisk rice vinegar, Creole mustard, honey, and hot pepper sauce in medium bowl to blend. Gradually whisk in oil. Season vinaigrette to taste with salt and pepper. Mix in black-eyed peas. (Black-eyed pea mixture can be made 1 day ahead. Cover and refrigerate).

Mix corn, red and green onions, and bell peppers into black-eyed pea mixture. Season succotash to taste with salt and pepper. Serve at room temperature or warm over medium heat until heated through if desired.

Yield: 10 servings

-By Alan Gaylor, CFP®

Onion Pie

Shared by: Charles Webb

It clearly isn't a dessert and if I had told my kids what the dish was called when they first tried it, they never would have touched it. They love it though and so do I. This casserole-like dish is something my mom has made for years and is always a hit with anyone who tastes it.

Ingredients:

Crust:

2 tbsp melted butter

1 stack Ritz crackers (crushed)

Filling:

2 large Vidalia onions (thinly sliced)

2 eggs

1 cup milk

3/4 cup sharp cheddar cheese (grated)

2 tbsp butter

1 tsp salt

Pinch of pepper

Directions:

Crust:

Mix butter and cracker crumbs and line in a pie pan.

Filling:

Saute onions in butter and place in pie pan. Mix eggs, milk, salt and pepper and pour over onions. Cover top with cheese. Bake in a preheated oven at 325 degrees for 30 minutes or until custard is set.

Yield: 8

-By Charles Webb

Apple Cranberry Casserole

Shared by: David Chambers

My family first started using this recipe when we discovered it at my 1st grade Thanksgiving Luncheon. It has become a staple of our holiday season, and I hope you enjoy it as much as we have!

Ingredients:

Casserole:

1/4-1/2 cup sugar

2 cups raw cranberries

4-6 apples - peeled, cored and sliced

Pam and 2 qt casserole dish

Topping:

1 cup oatmeal, uncooked

4-6 tbsp butter, melted

1/2 cup brown sugar

1/4-1/2 cup pecan bits

Directions:

Preheat oven to 350 degrees. Lightly spray casserole dish. Make 2 layers of apples, cranberries and sugar in casserole dish. Combine topping ingredients. Sprinkle over fruit. Back 45-60 minutes.

Yield: 8-10

-By David Chambers

Lemon Blossoms

Shared by: Lori Eason

I chose to share one of my favorite dessert recipes. Last holiday season, I discovered Lemon Blossoms and they have been a hit everywhere I've taken them. They are great if you plan on having a party or several people because the recipe makes 5 dozen!

Ingredients:

Cupcakes:

18 1/2-ounce package yellow cake mix

3 1/2-ounce package instant lemon pudding mix

4 large eggs

3/4 cup vegetable oil

Glaze:

4 cups confectioners' sugar

1/3 cup fresh lemon juice

1 lemon, zested

3 tbsp vegetable oil

3 tbsp water

Directions:

Cupcakes:

Preheat oven to 350 degrees. Spray miniature muffin tins with vegetable oil cooking spray. Combine cake mix, pudding mix, eggs and oil and blend well with an electric mixer until smooth, about 2 minutes. Pour a small amount of batter, filling each muffin tin half way. Bake for 12 minutes. Turn out onto a tea towel.

Glaze:

Sift sugar into a mixing bowl. Add the lemon juice, zest, oil, and 3 tbsp water. Mix with a spoon until smooth. With fingers, dip the cupcakes into the glaze while they're still warm, covering as much of the cake as possible, or spoon the glaze over the warm cupcakes, turning them to coat completely. Place on wire racks with waxed paper underneath to catch any drips. Let the glaze set thoroughly, about 1 hour, before storing in containers with tight-fitting lids.

Yield: 5 dozen

Underwater Atlanta (October, 2009)

When meteorologists announced a flood watch in the metro Atlanta area on September 21^st, I don’t think any of us could have imagined the havoc this flood would wreak. Over just a few short days, we received nearly 20 inches of rain. Water reached the roofs of many houses and submerged many neighborhoods in several feet of water. Sweetwater Creek, which runs just west of the city and is a large tributary to the Chattahoochee River, crested over 8 feet higher than the previous record. It was shocking to see that within a couple hours, the flood watch turned into a disaster area with people stranded at home or work, cars washed away, roads and schools closed and houses damaged beyond repair. When I left for work that morning, there was no water in my backyard. By 3:30 in the afternoon, I could only see the tips of my 3 foot picket fence. I was very fortunate that the water never came close to reaching my house. As I sat glued to the TV that Monday worried about all the people affected, one of the first things that came to my mind was “Wow…I bet most of these homeowners don’t have flood insurance.”

Shortly after the major flooding began, the phone lines were jammed with homeowners panicking and inquiring about their homeowner’s coverage. To their dismay, they were told that standard homeowner’s policies will not cover losses from flooding. There are many different forms of homeowners insurance, but the most common form provides Open Perils coverage on the structure and Broad Form coverage on the contents.

Open Perils coverage means all threats are covered unless they are specifically excluded. This is the most comprehensive form of coverage. Broad Form covers a limited list of named threats. Some of the threats specifically excluded are earth movement, war, neglect, nuclear hazard, ordinance of law and perhaps most importantly, water damage caused by any water that enters the home from outside. Not only does this exclude damage from floods but it also excludes coverage for sewer back-ups since the water entered from outside the structure. It makes no difference whether the water entered above or below ground. The exception from this is if the water entered as the result of some other damage. An example of this would be if a tree fell on your house, put a hole in the roof allowing the rain to come in. Homeowners can insure against some of the excluded threats through endorsements or riders that expand the coverage. Flood insurance can be purchased separately for an additional premium.

While flood insurance is definitely a necessity for some homeowners, it does have some limitations. In order for flood losses to be covered, two or more acres of normally dry land or two or more adjacent properties must be partially or completely flooded. The maximum coverage limit for a residential property is $250,000 for the structure and $100,000 for the contents. Basement improvements such as finished walls, floors, ceilings or personal belongings are not covered. The national average premium for flood insurance is $540 but for those who of us who live in a flood zone, the numbers are dramatically higher (mine is $1300) and FEMA has just announced that rates will soon go up between 8-10%. Flood insurance should be considered by every homeowner. For those living in low to moderate flood risk areas, premiums are only a couple hundred dollars a year which would definitely be worth it if a flood ever hits your area. Just like any other insurance, it is a risk tolerance decision.

Only those who live in a flood zone and receive financing from a federally regulated lending institution are required to carry flood insurance. Flood zones are determined by the Federal Emergency Management Agency (FEMA) based on the 100 year flood standard which means that the flood elevation has a 1% chance of being equaled or exceeded each year. Over a 30 year mortgage, the estimated chance of a flood is about 26% in these areas. According to the U.S. Geological Survey, the recent flood in metro Atlanta was a 500 year flood with only a .2% chance of occurrence in any given year. That being said, the majority of homeowners choose to forgo flood insurance under the assumption that flooding will never affect their home. The truth is, about 25% of all flood insurance claims come from low to moderate flood risk areas.

So why do homeowners policies exclude flooding? When a flood occurs, several homes are generally affected and the losses can be too catastrophic for the private insurance industry. Flood insurance is fraught with adverse selection, meaning the majority of those who buy flood insurance do so because they live in areas at high risk for flooding. For this reason, the government has stepped in and since 1968, the National Flood Insurance Program has made federally backed flood insurance available to property owners who live in eligible communities. Eligible communities are those that pledge to adopt and enforce land use control measures that guide development away from flood prone areas. Many people mistakenly believe that only those who live in flood prone areas are eligible for federally backed flood insurance. The truth is that anyone living in an eligible community can purchase flood insurance.

With the estimated damage in the Atlanta area around 500 million dollars, tragically, many homeowners will find that their home will be a total loss. Times like these remind us all why insurance is so important, even if you don’t think a certain situation will ever happen to you. I guarantee most of these homeowners didn’t think so either.

Market Update (September, 2009)

I think we all should take a moment for a collective sigh of relief: We have averted a possible financial catastrophe in 2009. The economy is finally showing signs of improvement while the stock market continues to shrug off less than positive news and climb higher. Though September is typically the worst month of the year for the stock market on a historical basis, there is no denying the many examples of a recovering economy. While many areas of the economy are still hurting, I wanted to take this opportunity to highlight a few areas of business that suggest a rebound may be underway.

The Housing Market: As the original catalyst of this recession, there will be no general recovery without a recovery in the housing market. So it is quite comforting that sales of existing homes in the United States in July rose 3.2%, which was more than forecast. This marked the sixth straight month of increasing home sales, thus reinforcing the view that the housing market is steadying. Compared to July of 2008, sales in the same month this year were up 13%. These are very encouraging statistics that suggest the housing market has bottomed out and is slowly improving. Though August numbers will not come out for a couple of weeks, low borrowing costs and declines in prices will continue to entice buyers into the market.

Manufacturing Sector: Companies in the manufacturing sector are major employers of the middle class, and an economic recovery will hinge on the middle class trusting their job security and therefore spending again. Fortunately, across various areas of manufacturing such as factory expansions and car sales, there have been encouraging signs of a turnaround. Last month, the manufacturing sector grew for the first time in 19 months. As of now, the manufacturing index sits at 52.9, a number which exceeded forecasts and is the highest level since June of 2007. A score of 50 is the dividing line between expansion and contraction, which means that factories have finally crossed into an expansionary phase. The manufacturing sector is the backbone of an economy, so this is certainly uplifting news.

The cash-for-clunkers incentive will not exist to help September’s numbers, and the manufacturing index is likely to show a slight dip this month as a natural reaction. However manufacturing sectors have been improving around the world, not just in this country. China’s factories expanded more in August than in any of the previous 16 months, which means the country expects other large nations such as ours to have the means to import their products. In addition, European manufacturing shrunk by the least amount in over a year, which suggests stabilization as well. In a world with a highly globalized economy, improvements in other countries are likely to positively impact the United States too.

Mergers and Acquisitions: While individual mergers and acquisitions may seem somewhat unimportant to the broader economy, the frequency of these arrangements is actually a great predictor of an economic recovery. There has been a recent flurry of M&A announcements such as the Walt Disney Company purchasing Marvel Entertainment for $4 billion a few days ago. These deals are signs of economic health since they show the purchasing company’s confidence that the investment will prove profitable as the consumer returns to stores. Acquisitions also demonstrate the acquiring company’s ability to pay as well as value in the company being purchased. The M&A market has been barren for almost a year, so these large deals may signal a bottom for this market.

Of course we are all familiar with the bank mergers as well since many of us have witnessed the name of our bank change. While no one likes to see his or her bank fall into the arms of another due to financial woes, the vast majority of the newly formed banks have been steadily paying off TARP money. This week, Bank of America offered to repay part of its bailout money, and Wells Fargo followed a day later to announce that it intends to return $25 billion in federal money. Since the government will only allow banks with improved capital bases to pay back TARP funds, these announcements indicate that banks have become much healthier in the recent months.

Stock Market: The fear and volatility of the spring now seems like a bad nightmare and the stock market has woken up to a nice rebound. The S&P 500 has posted a 48% return since the 12-year low on March 9th. While the recent run-up may have been a bit too much too fast, stock valuations are returning to more normal levels and investors are opening their wallets to buy the stocks of the companies that keep our country running.

Earnings announcements in the past couple months have been encouraging, and more than 74% of companies in the S&P 500 beat 2^nd quarter earnings expectations. Analysts set very low bars for these companies since everyone feared the worst, so beating these expectations was not a difficult feat. However we are all still relieved to see so many companies displaying resilient earnings data. The second quarter’s losses were less than the first quarter of this year and almost every analyst expects the current quarter to extend this trend. In fact, many companies are expected to post a profit (go figure!) As the financial statements start to look healthier, stocks are likely to climb higher.

Labor Market: To envision the coming recovery in the labor market, one only has to look at the trends in the GDP. In the first quarter of this year, the GDP contracted a scary 6.4%, but the second quarter saw a contraction of only 1.0%. The current quarter is expected to post a GDP growth of 1.6%, and with growth comes jobs. But the jobs will not come quickly or soon. The labor market is usually a lagging indicator since companies hesitate to add workers back to the payroll before they are sure that the improvements will endure. However, the labor market is already showing signs of life: The number of people filing for unemployment claims fell last week by 4,000 to 570,000. Though unemployment is likely to remain around 10% for a few more months, strong earnings and a growing economy will begin to bring unemployment down to acceptable levels.

In these markets and others, we are seeing signs that the economy is slowly recovering. I do not suggest that we are completely out of the woods, but it is certainly nice to see an abundance of positive news after months of struggle. It is important to remember that the economy still has many hurdles to clear and problems to solve. But hopefully the widespread fear of early 2009 will become a distant memory and companies will begin to take risks, hire workers, and invest again.

Healthcare Mythbusters (August, 2009)

I'll start by saying that I do believe our current health care system needs reform; specifically, the rules governing health insurance and the link between personal behavior and cost. I strongly think that we are on the wrong path and headed for disaster with the current health care bill proposed by Congress. After reading the first article, you now know a little bit more about this bill, so let's take a look at some of the statements the media and political "talking heads" have been feeding us.

"Over 45 million Americans lack health insurance." This statistic has been cited in many sources over the past few years, including political speeches by Hilary Clinton and President Obama. While this statistic comes from an annual report by the Census Bureau, it is misleading and misunderstood. When you take a closer look at this figure, nearly 10 million of this number are not U.S. citizens. Of the remaining 35 million, more than 17 million make over $50,000 a year, with half of those making $75,000 or more. These people could afford insurance, but choose not to pay for it. About 9 million of the uninsured already qualify for government health insurance programs, but haven't bothered to take the time to enroll. This leaves about 8 million U.S. citizens actually uninsured for reasons out of their control. It is clear that those pushing for a major government intervention in health care have been distorting this 45-million statistic to boost their cause. Why should we uproot our entire system that is functioning for 97% of the American people to benefit 3%?

"Nobody is talking about cutting Medicare benefits." Medicare is already projected to run out of money by 2020. The House bill proposes to reduce projected increases in Medicare payments to providers by more than 500 billion over the next 10 years. This will happen as baby boomers turn 65 and increase Medicare enrollment by 30%. With less money and more patients, the only option will be rationing care. According to the Congressional Budget Office, only an estimated 1% of the cuts will come from eliminating fraud, waste and abuse, leaving 99% for cutting access to care. An advisory committee will be appointed to recommend a benefits package based on standards set in the law. In addition, the bill specifically states that the government plans to eliminate some Medicare Advantage plans as a cost saving measure. 22% of all Medicare patients are currently enrolled in Medicare Advantage plans which allow seniors to buy supplemental Medicare coverage through private insurance companies. President Obama has called Medicare Advantage a wasteful subsidy for the health insurance industry and he has even proposed eliminating the entire program.

"The health care reform will not increase the federal deficit." On June 16th, the Congressional Budget Office determined that the health care reform bill proposed would cost 1.6 trillion over 10 years. This figure took many people aback, including some of Mr. Obama's fellow democrats. The White House quickly responded with a proposal for Medicare cuts. In response to this proposal, the CBO projected that we would possibly see 2 billion in savings in the second decade, a number that pales in comparison to the cost. Supporters of the reform have said that while it will increase costs and deficits in the first decade, it will make up for them in the long run, a process President Obama refers to as "bending the curve downward in coming decades." Last week, the CBO delivered another devastating blow when it stated that it does not believe current bill bends spending down. In fact, they estimate that annual growth in outlays will be 8% while annual growth in revenues will be 5%. Simple math tells us that the deficit will increase.

"Tax increases will only affect the very wealthy." President Obama has vowed to implement this health care plan without raising taxes on the middle class. Just this week, both Treasury Secretary Timothy Geithner and economic adviser Larry Summers stated that they cannot rule out higher taxes on the middle class as part of the health care overhaul. From his presidential campaign up until now, Mr. Obama has vowed to only increase taxes on those making over $250,000. Most people in this country don't realize that a tax increase on the wealthy will affect them negatively. If the government raises taxes on high income individuals, experience shows that an increase from 35-45% would change the behavior of these individuals in ways that lower their taxable income, shifting the tax increases burden to the middle class. Also, many of these "wealthy" individuals are business owners. With an increase in taxes, they will be forced to raise prices, cut jobs, and lower pay, all of which harm everyone. With income taxes aside, President Obama has already broken his pledge not to increase taxes on the middle class by increasing the federal excise tax on cigarettes and by backing the cap and trade legislation which equates to an energy tax on every person in America.

"If you like your current insurance, nothing changes except your costs will go down by as much as $2,500 per year." Rachel touched on the idea that the government can't fairly compete with other insurers. How will the Humana's of the world lower their premiums while hospitals charge them more to compensate for lower government reimbursements? How will an employer be able to walk away from the government's offer if the premiums are artificially lower than what he currently pays to privately insure his employees? As employees lose their jobs and are forced to use the public option, illegal aliens are automatically covered, and the average consumer is forced into the public option by rising prices, we will soon all be covered under one big federally run health care plan with costs out of control and life altering decisions made by the government. Back in August of last year when Mr. Obama was campaigning, he said, "If I were designing a system from scratch, I would probably go ahead with a single payer system." All this talk of a public option among the private insurance plans is just paving the way for a single payer system in the future.

In conclusion, I'm slightly optimistic that Congress has delayed the vote on the bill until after summer recess. Hopefully during these next few weeks, we the public will continue voicing our dismay with the current bill and prove to Congress once and for all that there is no place in the United Sates for socialized health care.

Healthcare Bait and Switch (August, 2009)

Congressional politicians must think we're stupid. This is the only explanation for the new healthcare bill currently being considered on Capitol Hill. It's filled with deceptive and unrealistic assertions that even a child could easily debunk. The legislation attempts to bait us with the offer of a public healthcare insurance option while carefully hiding provision after provision designed to strip our freedom of choice, rob billions from Medicare, and allow the takeover of the healthcare industry. Our Congressional "leaders" hope we won't notice. Well I sat down and read this colossal 1,000 page bill to determine the truth, and what I found is disturbing.

The claims of the public option proponents are quite ambitious: Costs will be significantly reduced! Every American will be insured! If you like your current plan, you can keep it! The quality of your care will not change! This all sounds great, but these will not happen for one simple reason: The government does not compete, it legislates. The government does not have to worry about the bottom line, which is obvious from our trillion dollar deficit. The government can operate at a loss into oblivion, while private insurers cannot. So when a politician goes on TV and claims that the government is just offering another option to "compete" with the hundreds of other private plans, that politician is knowingly lying to you.

The legislation allows the government to mandate any reimbursement rates it wishes and force hospitals to take on these patients, even at a loss, which is already the case with Medicaid. Hospitals can tell a private insurer with such low rates to get lost, but not the government. So guess who pays for these patients? You do, because of cost shifting. This is where the hospital must charge private insurance patients more in order to make up for the low reimbursement rates of government insured patients. Now imagine that millions more people are added to a public option in which the government can mandate reimbursement rates of only 70% of the cost? Your private insurance premiums must go up to compensate. Period.

The government will not compete because it doesn't have to. Maintaining a positive cash flow is not necessary and never has been. They will just keep borrowing to fund the losses. But we cannot run trillion dollar deficits forever, so the government will have to reduce healthcare costs eventually right? Wrong. The Congressional Budget Office (CBO) has already admitted that there will be zero cost savings until 2020, and then only $2 billion. That's only .006% of the cost of this bill! Only a politician would spend $1.5 trillion to claim a savings of $2 billion.

This bill has no suggestions for reducing the actual cost of providing quality care. So on page 29 of the bill, Congress admits that healthcare will be rationed instead, especially for seniors. The bill mentions Medicare 439 times, but is careful to never say exactly what changes will take place. To avoid having to give specifics, it simply establishes a new committee that will have one year to unilaterally dictate how Medicare will be altered indefinitely to fund this new public option. So our politicians are voting for Medicare modifications that aren't even clearly defined.

As an added bonus to help curb the massive costs of this legislation, the bill includes a provision to control doctor's wages. Specialists will be particularly affected. I believe that a person who sacrifices his or her entire twenties to attend medical school while incurring hundreds of thousands of dollars in student loans deserves to be well compensated. The government apparently does not agree, and as a result, fewer qualified individuals will pick this important profession.

Another worrisome point in this bill is that insurance companies will no longer be allowed to write new individual policies or change existing ones. We are constantly being told that the government plan is just another "option", so there is no real worry! This is only half true, and the proof is in section 102 of the bill. Let's say you have Plan A with insurance company X. If the government does not approve of Plan A, you must get supplemental insurance immediately. If Plan A is acceptable, you may keep this coverage as long as the insurance company still offers it. The catch is that no insurance company may offer you a new private policy or sign you onto any existing plan that you were not already subscribed to when this bill was enacted. You may not pick private plan B, C, or D to replace your original plan A, ever. Therefore if your plan is dropped, you don't have insurance, you want a different plan, or your employer (current or new) doesn't offer insurance, you have no choice about your coverage. You must accept the government plan. Insurers are only allowed to offer government-participating individual plans from this point forward, so the result will be a new market place with only employer plans and the government plan. Yes, you may keep your current insurance, but hopefully you really like it because you may never choose any other private plan.

Since the goal of this legislation is to ensure that every person in the country obtains healthcare insurance, the bill provides for a 2.5% income tax on any individual who does not have insurance as a way to encourage the uninsured to seek coverage. How will the government know exactly who these people are? Congress answered this problem by adding a provision that requires every person in America to carry a National Healthcare Insurance ID card. If a person arrives in a hospital but does not have a National Insurance ID, the hospital must report this person to the IRS so the tax may be applied. Healthcare will now be married to the IRS, and you will have to prove to the IRS that you have sufficient insurance every year to avoid the punitive tax. Of course illegal aliens and people reporting low incomes, even those who make plenty of unreported income in tips or cash wages, are exempt from the tax but enjoy a specific provision in the bill granting them free healthcare.

I could go on for hours about all of the hidden provisions in this monstrous bill. Instead, I will offer a few suggestions in lieu of the public option: Allow people to purchase insurance across state lines so they may find the best plan available, thus increasing competition and spreading risk. Allow small businesses to join together to create larger employee pools and thus lower the premiums for each person. Or when a person is laid off or fired, give that person the option to keep the same plan that he had with the employer and just pay the premiums himself. Let individuals shop for health insurance like they shop for car insurance, choosing options they need and excluding those that will never matter to them. Allow insurance companies to fully penalize those who make bad lifestyle choices, such as smokers and the obese, instead of splitting the high costs between these people and those who make positive choices. Actually having to pay for the high costs of bad lifestyle choices may encourage more people to kick bad habits and become healthier.

All of these reforms would improve the healthcare industry in a positive manner. A public option is not the answer to our healthcare problems. Costs will continue to rise while our access to quality care may be irreversibly changed. With my healthcare, I'm not willing to take that chance.

Support our Troops (July, 2009)

With the 4th of July near, I felt it would be a good time to pay tribute to the many soldiers that defend our country every day. War is a hot topic these days, but as we all know, freedom does not come free. Whether or not you agree with the current foreign policy, it is important that we all support our soldiers. I've always been grateful for the brave men and women who serve to protect our country. However, "Support Our Troops" took on an even stronger meaning for me when my 19 year old brother shipped off to Parris Island for Marine Boot Camp this past February. He graduated in May, and seeing all those young men in uniform at the graduation committing to protect our country was an amazing experience. I couldn't be more proud of my brother.

Almost everybody knows of somebody who is serving overseas. All too often, we want to help but we're not sure what to do or how we can make a difference. Even something as simple as walking up to a military uniformed person to shake his or her hand and say "Thank you for serving our country" goes a long way. Here are some others ways you can show your support to our troops and their families:

Cell Phones for Soldiers: This is a really neat program started by a couple of kids in Massachusetts. How many of you have old cell phones lying around that you will never use again? A company called ReCellular will take your unwanted phone and turn it into a prepaid phone card with 1 hour of use for soldiers serving abroad. They have drop-off locations all over the U.S. Visit http://www.cellphonesforsoldiers.com/locateDropoff.asp to find one near you.

Letters: This is no new concept, but I don't think we fully comprehend how much letters mean to soldiers. They need to know that we are thinking of them and proud of them. If you know somebody overseas, take a few minutes to tell them how much you appreciate what they are doing. If you don't know anybody currently deployed, there are programs that send your letter to a deserving soldier. Two such programs are www.amillionthanks.org and www.anysoldier.com. If you really want to make them smile, include some funny jokes or comics or a newspaper clipping of positive things they are doing overseas. You can even send emails at www.amillionthanks.org.

Operation Baghdad Pups: This organization's quote "No Buddy gets Left Behind" is a good summary of their mission. While serving overseas, some soldiers come across abandoned dogs with a low chance of survival and decide to raise them. As the soldiers care for the dogs during their stay, a strong bond forms and they can't bear the idea of leaving the dog behind when they return home. If you are a dog lover, it's not hard to understand how comforting the companionship of a dog would be while living in a war zone. To find out how you can help, visit http://www.baghdadpups.com/.

Care Packages: There are a couple of ways to go about sending a care package. United Service Organizations (USO) allows you to sponsor a care package for as low as $25, while each package contains both needed and requested items valued at $75. You can learn more at https://www.uso.org/donate/custom.aspx?id=565&. If you would like to make your own care package, here are some good items to include:
- Beef jerky
- Power Bars (one of my brother's favorites...they get very tired of military MREs!)

- Prepaid phone card
- Instant drink mix
- Lip balm
- Mini games
If you don't have someone in particular to send one too, there are several organizations that will forward your package on to a soldier such as http://www.give2thetroops.org/.

Operation Homefront: While all of the other suggestions have been for the soldiers themselves, they all have families they have left at home. Many of them have gone abroad because it was the best way they knew to care for their spouse and children. Operation Homefront has chapters all over the United States that help military families in need. Please visit http://www.operationhomefront.net/ to find out ways you can help.

I hope everyone has a wonderful, fun-filled 4th of July holiday, but that we also take a moment to honor those protecting us. For the time being, my brother is in San Diego at the School of Infantry and out of harms way, but I know there will be a time when he will be one of the brave men serving overseas. I hope there never comes a day that he asks himself if what he is doing is appreciated.

Iran and Iraq: A Tale of Two Economies (July, 2009)

For the past couple weeks, we have all been captivated by the protests occurring in Iran. It has been difficult to turn our eyes from videos of brave men and women risking their lives to insist that their voices are heard, even as the regime releases violence on its own people. While some people understandably find the news of these peaceful protests and the ensuing government crackdown difficult to observe, I personally find great hope in the displays of bravery, compassion, and determination among the protesters. As the people of Iran finally stand up against one of the most suppressive governments in the world, the rest of the Middle East has been making economic strides, particularly in Iraq. Even though the Iranian protests may not result in any change in the regime in the near future, the government of Iran is on precarious ground versus other Middle Eastern countries making economic progress.

The Iranian government under President Ahmadinejad has grossly mismanaged the Iranian economy. Iran’s Central Bank recently reported the projected rate of inflation to be 23.6% in the next year while economic growth has slowed consistently for the last four years. With a disproportionately young population, the unemployment rate has climbed from 10.5% four years ago to 17% now. The Iranian economy was booming a decade ago, so why are these numbers unexpectedly getting worse, even after the surging oil prices of 2008? The answer may be found in this interesting fact that the United States government may also want to examine before it heads down a socialist path… Ahmadinejad is a pure populist with a policy of spreading wealth as much as possible. His staunchest supporters are the poor since the President has consistently increased government handouts. So as you watch the protests raging in the streets, remember that these protesters are generally the more educated members of Iranian society and the future of that country. Without these people creating wealth instead of Ahmadinejad simply spreading the current wealth around, the country will continue to deteriorate economically and soon there will be very little wealth left to spread to the poor.

The population of Iran has become disenchanted with their government for many reasons, but one major reason may be the Iranian people looking next door to Iraq. As they watch their neighbors have honest elections, reduced violence, and an improving economy, many Iranians may be questioning why they are denied such progressions. The Iraq National Investment Commission announced on May 31 that it expects the country’s gross domestic product to grow by 7% this year, even during a global recession. This positive number is the result of the Iraqi government performing an about-face on many economic issues. For example, the government has opened its six super-giant oilfields for the first time in 30 years, and at the end of June it will auction off foreign contracts to produce crude oil for the next 20 to 25 years from Iraqi wells. For the first time in decades, the government is welcoming foreign investment in its energy industry, and oil companies are clamoring for the opportunity. Also, Iraq has turned its focus to improving infrastructure by approving bigger budgets, but has found that the country lacks engineers to carry the projects out. So on Monday, Iraq urged scientists and engineers who fled the country amidst violence in the last six years to return home to help rebuild the economy. Across the border, engineers and scientists in Iran have already begun wondering why their country does not value them so highly and may start to leave. Unlike Iran, Iraq has finally realized that to keep these entrepreneurs and educated citizens, the economy must function properly. Last year, Iraq’s Finance Ministry began drafting law necessary for Iraq to join the World Trade Organization. The idea that Iraq may join any civilized world-wide organization is a gigantic step forward. With economic recovery and growth, foreign and domestic investment will increase. This was already seen in May of this year as a total of 745 Iraqi companies registered with the Ministry of Trade, which resulted in a 62% increase in the total number of registered firms in the country in only one year. Iraq certainly has its domestic problems, such as a dwindling water supply, but an increase in business is likely to help find solutions to these problems.

While much of Iraq is still in a dire economic situation, investment should help Iraq’s economy find new footing and spur growth. This is in stark contrast to an Iranian economy that continues to slide. This is certainly the tale of two economies, seemingly headed in completely opposite directions. And no one is watching this tale more closely than the protestors in Iran.

CFA and CFP (June, 2009)

The monthly memo was designed not only to share our thoughts on certain issues but also to keep you informed of new developments within our company. In that light, we wanted to share some important things going on at The Alder Financial Group this spring.

All of us here feel it is very valuable to continually increase our industry knowledge. Besides industry seminars, conferences and continuing education workshops, we also strive to obtain specialized credentials. While there are many available designations, this month’s article focuses on the two we feel are the most prestigious: CFP® (Certified Financial Planner) and CFA (Certified Financial Analyst.) These are highly sought after designations requiring substantial dedication to acquire either of them. One of our principals, Alan Gaylor, has held the CFP® designation for many years, and Lori also took the CFP® exam in March. Rachel just took the Level I CFA exam this past Saturday. Studying for these exams has been a very important part of our lives in the past year, so we hope this Monthly Memo gives you some insight into these two important designations that we have been pursuing.

As some of you already knew, I have been studying for the CERTIFIED FINANCIAL PLANNER™ Two weeks ago I received the highly-anticipated letter in the mail informing me of my score. Words can not express the feeling I had when I read the first line: “Congratulations, you have passed the CFP® exam.” All my hard work and long hours of studying definitely paid off! exam which I took in March.

Rachel has also been diligently studying for a difficult exam, the Level I CFA test, which she took on Saturday. There are three levels of exams that must be passed to acquire the CFA designation, so Rachel has a few more years of studying in her future! Since we’ve both been consumed with studying this year, we figured it would be a good time to shed some light on these two designations, what they mean, and their importance in the industry.

CFP®

I’ll start by giving you the basics on what it takes to become a CFP® Certificant. There are six prerequisite courses you must pass to be eligible to sit for the exam. These include Financial Planning, Insurance and Employee Benefits, Investment Planning, Income Tax Planning, Retirement Planning and Estate Planning. It generally takes an individual a year and a half to complete all six. The exam itself is a rigorous 10 hour exam taken over two days. The exam seeks to assure the public that the CFP® Certificant is able to apply financial planning knowledge to real-life situations. Upon passing the exam, you must prove that you have a Bachelor’s degree and 3 years of full-time, relevant financial planning work experience. Every two years you must renew your certification which requires 30 hours of Continuing Education. This assures that CFP® designees are continuously educating themselves in the area of financial planning.

So what is the importance of obtaining the CFP® designation? The key point of the CFP® The amount of time and effort required to achieve the designation ensures that all holders have demonstrated a high level of commitment, ethics, and professionalism. Certification prepares financial planners to meet the ever-changing needs of their clients and focus on long-term relationships. The term “Financial Planner” has recently become very widely and loosely used, but when you see the designation CERTIFIED FINANCIAL PLANNER™, you now know this person is subjected to the standards of the most recognized and respected financial planning organization in the world. designation is to further the knowledge and study of comprehensive financial planning.

I’ll now turn it over to Rachel to describe the CFA designation.

CFA

The Certified Financial Analyst designation is possibly the most difficult certification to acquire in the finance world with at least three years of exams and a passing rate of only 35% for the first level. More than 50,000 financial analysts around the world took the Level I exam this past weekend. When I took the test on Saturday with 700 other candidates, it was definitely nerve-wracking to look around and realize that only about 245 of us would pass! However, after studying for eight months, I felt well-prepared. I am very proud of both Lori and myself for dedicating ourselves so fully to studying, and I know it made all the difference for both of us. The CFA Institute will not release my score until the end of July, so I am beginning the long and anxious wait to find out if I passed!

There are a total of three levels of exams that must be passed to be awarded the CFA designation. For the first CFA exam, there are eighteen subjects that most be known in acute detail. These subjects include Financial Statements, Portfolio Management, Ethics, Fixed Income Investments, Equity Investments, Derivatives, and Economics, just to name a few. The Level I exam is offered twice a year, in June and December. The Level II and Level III tests are only offered once a year, in June, and these tests cover those eighteen subjects and others in even more detail. Since the pass rates for Level II and Level III are also very low, it is rare for a candidate to pass each test on the first try and it is very common for a candidate to need four to five years to pass all three exams. This requirement of constant dedication for numerous years is one major reason for the difficulty of these exams. Candidates must keep their eyes on the prize, even if the prize is many years away!

The CFA Institute maintains a high focus on ethics at each level, and being awarded the CFA Charter means the charterholder is committed to the highest ethical and professional ideals. While the curriculum at each level ensures that the candidate understands complex financial computations, the CFA Institute is more concerned with determining that each CFA Charterholder understands the deeper interpretation of these computations within the context of the individual portfolio, the industry, and the world economy. The CFA exams are comprehensive in scope, and the CFA Institute hopes to assure clients and prospective clients that a CFA Charterholder has committed him or herself to thorough and extensive knowledge of all pertinent financial subjects.

Since acquiring the CFA designation requires years of effort, it will be quite a while before I may join Lori in saying that I achieved my goal. However, I will not let this deter me and I hope to report in two months that I get to move on to Level II! In the mean time, I want to congratulate Lori on her achievement… she showed an uncommon commitment to studying for the CFP® test and all of us at The Alder Financial Group are proud of her for achieving her goal!

Get Away (May, 2009)

The warm weather we have had lately has been a reminder that summer is near! I’ve decided to share some ideas for weekend getaways in the southeast. Everyone here at The Alder Financial Group has contributed to share personal experiences of places we have been and would recommend to you. Here they are in no particular order:

St. Simons Island, GA

http://www.explorestsimonsisland.com/

St. Simons Island is a seaside community located on the Georgia Coast. Of course the beach is the biggest attraction, but the pier is also a great place to spend the day. Many locals fish for shark on the pier and there is a lighthouse and a playground nearby as well. There are several fun shops and restaurants. One of my favorite places to eat is Mullet Bay, but to be honest, I haven’t found one restaurant that I don’t like! For some good southern cooking you can check out Barbara Jean’s, and for quality seafood in a unique atmosphere, make a reservation for the Blackwater Grill. Bennie’s Red Barn is another popular restaurant and has been serving since 1954, making it the oldest privately owned restaurant on the island. After eating, you should stop by Sweet Mama’s candy shop. If gambling is your thing, the Emerald Princess is a casino cruise that goes out into international waters for about 5 hours daily. Lastly, if you like to golf, the island is famous for its beautiful courses run by the Sea Island company, which also runs The Cloister on St. Simon’s sister island right next door.

Fairhope AL

http://www.cofairhope.com/index.php

Fairhope is a city located along the cliffs and shoreline of the Mobile Bay in southern Alabama. It is known as a romantic small town with storybook charm. Downtown you will find many shops, boutiques, cafes and art galleries, and Fairhope is a great place to walk around and shop for antiques. The Fairhope Municipal Pier is a beautiful place to visit and features restaurants, duck ponds and an award-winning rose garden. As far as accommodations go, there are several cottages and guest houses, some on the bay with private piers. If you really want to pamper yourself, the Grand Hotel Marriott Resort, Golf Club & Spa is picturesque and would be a great escape. And very close to the Grand, you will find the Wash House Restaurant, which is in an old wash house building adjacent to a plantation house for a true southern experience. Beyond the experience, the Wash House’s fresh seafood is also outstanding.

Nashville, TN

http://www.visitmusiccity.com/

If you like country music even a little bit, you will love visiting Nashville, TN. Music Row is a street on which you can listen to talented live musicians any time of day. Many country stars began at bars on Music Row, so you may be one of the first to hear a soon-to-be celebrity! The historic Ryman Auditorium, built in 1892, offers interesting tours. The Wildhorse Saloon is a popular spot to stop in for lunch or dinner and maybe stay for a concert. A few minutes away from downtown, you will find Opryland, which is a must-see. The Gaylord Opryland Hotel and Convention Center is more than a hotel, it is a beautiful dome with indoor gardens, shopping and restaurants. There is much more to see in Nashville such as the Country Music Hall of Fame and the General Jackson Showboat, making it impossible to see it all in one weekend. Just pick a couple things that sound good to you and don’t forget to relax at least for a little while!

Gatlinburg / Pigeon Forge, TN

http://www.gatlinburg.com/default.asp

http://www.mypigeonforge.com/

You can rent an amazing cabin secluded in the beautiful Smokey Mountains for a reasonable rate, and many come equipped with Jacuzzis, pool tables and other features you can choose from. There’s nothing like sleeping in and then heading to town for a big pancake breakfast at one of the many pancake houses around town. If you like trout fishing, or would like to try it for the first time, you can fish in the Great Smoky Mountains National Park. In Gatlinburg, there are several distinctive shops, original restaurants and museums on the main strip in the downtown area. Just 15 minutes away, Pigeon Forge is full of fun attractions, especially for kids. If you have kids or enjoy amusement parks yourself, Dollywood features rides, a water park, shows and much more. The Dixie Stampede is a one-of-a-kind dinner attraction that is enjoyable for all ages, complete with special effects and stunts performed with cattle and horses.

Lake Guntersville, AL

http://www.alapark.com/lakeguntersville/

If you enjoy the outdoors, Lake Guntersville State Park, located on the banks of the Tennessee River in Northeast Alabama, would make for a great mini-vacation. Lake Guntersville is the largest lake in Alabama and fishing, boating and eagle watching are all popular sports there. For lodging they have something for everyone: a nice resort, rustic cabins or a scenic campground. If you live in the Atlanta area, stop on the way to Lake Guntersville for an afternoon in Mentone, a small town situated on Lookout Mountain in Alabama. It is a quaint town with bed and breakfast inns, cabins, campgrounds, and breathtaking waterfalls and trails. If you like horseback riding, the Shady Grove Dude Ranch offers a waterfall trail.

Charleston, SC

http://www.charleston.com/

http://www.patriotspoint.org/

For you history buffs, Charleston is right up your alley. As many of you may already know, Charleston is home to the USS Yorktown and other military ships that are now open for tours. The ships are located in an area called Patriots Point. Here you will also find war planes and museums. You can also take a tour of Fort Sumter which is the island fort where the Civil War began, and the ferry ride to get to the fort is also a treat. Charleston is not only a historical town… It’s a great city to walk around, marvel at the beautiful houses and shop. At the beginning of Market Street there is a huge open air market surrounded by great restaurants and shops. Last but not least, there are several spacious beaches characterized by white sand and clean water.

Asheville, NC

http://www.biltmore.com/

By far the most popular site to see in Asheville is the Biltmore Estate, which was built around 1895. Along with the astonishing house, the estate features gardens, a winery, a farm and much more. May is famous for the Festival of Flowers which includes live music, springtime dining specials and shopping. If you can’t make it till July, the Bele Chere festival is one of the biggest outdoor festivals in the Southeast. If you plan your trip in the fall, the Grove Park Inn hosts a gingerbread contest every year, and the winner is flown to New York City and featured on Good Morning America! Asheville has events and festivals planned year-round, so choose one that suits your interests.

Marriott Shoals Hotel & Spa, AL

http://www.rtjgolf.com/resorts/shoals/

If you are a golfer, The Robert Trent Jones Golf Trail in Alabama offers some of the finest public facilities in the South East. The one we want to highlight today is one of Alan’s favorite getaway ideas. Tucked in the northwest corner of the state lies the RTJ course on the banks’ of the Tennessee River in Muscle Shoals. It comes complete with two courses, the Fighting Joe and the Schoolmaster, that are highly ranked by Golf Magazine. The picturesque facility seems like it is in the middle of nowhere, but it is really not that far from Birmingham or Memphis. After a long day of golf, The Marriott Shoals Hotel & Spa complex is just a short drive across the river. One of the resort’s best features is Alabama’s one and only revolving restaurant, the 360 Grille, which offers beautiful views of the Tennessee River and Florence. The resort has two saltwater pools, the outdoor one featuring a cave and water slide for kids. If you still have some free time, the Tennessee River is famous for small mouth bass fishing.

Madison, GA

http://www.madisonga.org/

This historical area is located 1 ½ hours southeast of Atlanta and is the largest historic district in Georgia. It was spared by Sherman’s Army during the civil war because it was the hometown of a pro-Union Senator. There are several unique restaurants downtown along with many shops. Madison is known for its Bed and Breakfast inns that were converted from homes built in the 1800s. There are also some 17^th century homes you can tour such as Heritage Hall. If you like the outdoors, Hard Labor Creek State Park is nearby and offers many trails and a lakeside beach with swimming from May to September.

These are just a few ideas of many for you to consider. I could have gone on for pages on some of these cities, so I encourage you to do your own research as well! And if you decide to check out any of these places, be sure to let us know…. We have many more suggestions for things to do in each town! No matter how busy you may be, I hope everyone can find the time for a vacation this summer, even if it is just a weekend getaway. Bon Voyage!