This is a harsh assessment, but it's not our opinion. It is the description that the National Fixed Annuity Association used to describe the annuity sales people that they represent. NAFA is a lobbying group that is desperate to exclude fixed annuities from the oversight of the Department of Labor's Fiduciary Rules. In November, NAFA filed a lawsuit to halt enforcement of fiduciary regulations. The suit complains that the fiduciary rule is expensive for annuity companies to enforce. They sell expensive, illiquid policies to consumers and are complaining about costs? They also complain that fiduciary rule favor investment firms.
Wrong. The fiduciary rule FAVORS CONSUMERS.
The words that NAFA uses to describe annuity salespeople are embarrassingly frank. NAFA says that their salespeople lack trust and confidence. They insist that the public implicitly understands that annuity sales agents can't be trusted to give advice and that they only sell products. They are relying on this admission of inadequacy to win their lawsuit against the Department of Labor.
We have friends that work in the insurance industry. They are hard-working members of our industry. This isn't an indictment of any salesperson's character or honesty. They sell what they are paid to sell, which isn't illegal. NAFA admits to the limitations that financial product sales people face. They cannot provide in-depth, meaningful advice to investors and savers. They provide products. That's it.
NAFA contrasts the inability of annuity salespeople to give advice with fiduciary advisors who, "have a relationship of trust and confidence with their clients." If you bought an annuity in the last few years, did you know that you were dealing with someone that even their own national organization calls untrustworthy at providing advice? It's there in black and white (and orange). If you are seeking advice from a firm that will act in your best interest, in all matters, at all times, call LeConte. We proudly proclaim our fiduciary standard of care.
After Trump's victory you can see that rates jumped another 40 basis points (.40%) in a matter of days. The Federal Reserve Open Market Committee has markets anticipating a quarter point rate increase in December. The huge post-election rate increase effectively stole the Fed's thunder. When the market speaks this emphatically, investors should pay serious attention. Here is the question this rate/price action raises, "Where is this inflation worry coming from?" Former Dallas Fed Senior Financial Analyst, Danielle DiMartino Booth digs into monthly CPI statistics to reveal two areas of concern.
“It comes down to the services side of the equation, which has been fueled by the Affordable Care Act and rental inflation that’s risen into the stratosphere care of the low interest rates that have encouraged luxury unit construction. To be precise, the CPI tells us rents are up by 3.7 percent in the last year, which is apt to be understated for reasons you need not be bored with, while medical care prices are up by 4.9 percent over 2015. So it’s safe to say services inflation has been driving the train.”
DiMartino Booth - Money Strong
We prepared two visuals for the data that she highlights: The first is a comparison of rent inflation to broad CPI. We can thank Millennials who prefer luxury apartments over buying their own homes for this inflation bump.
The Affordable Care Act (aka Obamacare) has started to exert huge inflationary pressures on consumer wallets. This chart displays medical inflation through the latest data from September. Once the October numbers are reported this is sure to escalate even further.
In October, Fed Chair Janet Yellen signaled her willingness for our economy to "run hot". We are there and the bond market sniffed this out in the summer. Investors should watch inflation in these spending categories going forward to see if the problem gets worse. If so, you may want to join the ranks of the #InflationPreppers.
Our bigger concern is that this (contained) inflation won't be offset by growth in other parts of the economy and we will have to revisit the 70's and educate investors on the perils of Stagflation.
Start by focusing on the things that you can control. You may feel downtrodden after the election result, but that doesn’t change your financial goals. In 48 months, we all will be older and hopefully nearer to achieving financial freedom. Your children or grandchildren will be that much closer to going to college. Developing a sound financial plan, reducing debt, living within an established budget and investing wisely are key components of financial independence. It’s imperative that you begin with the end in mind. If you haven’t thought about what to do, find an independent financial firm that can help you get organized and take the first steps.
Our republic has lasted for 240 years. We have elected both good leaders and poor executives. The country will live on today and hopefully for another 24 decades. As individuals, we aren’t that lucky. With limited time on the earth, it’s important to make sound choices on the things we can control. Rather than gloating or sulking about the election result, use this time to begin planning and dreaming for what your life will look like in 2020.
Besides Logging and Mining no other industry grew wages more than 1.2%.
Higher wages are part of the answer to our ongoing quest for consumer demand. With wage growth flat across most other industries, we will need to wait a bit longer to find out what's really happening to wages.
LeConte Wealth Management, LLC is looking for a tax intern to join our team for the upcoming tax season. The intern will work closely with our Director of Financial Planning and CPA and assist with federal and state income tax accounting and compliance. This will be a paid internship with an expected start date of November 15, 2016 and an expected end date of April 30, 2017.
- Prepare individual, corporate, partnership and not-for-profit tax returns to meet government requirements and deadlines and client expectations
- Prepare payroll tax reports and property tax reports to ensure compliance Develop a working knowledge of individual and corporate tax laws
- Respond orally and in writing to various tax inquiries from internal and external clients and from government notices
- Achieve a working knowledge of tax preparation software used in the office
- Outstanding academic performance in an Accounting or business major
- Proficient in Microsoft Excel
- Relevant work experience (e.g. internships, summer positions, school jobs)
- Demonstrated leadership, problem solving, and strong verbal and written communication skills
- Ability to prioritize tasks and work on multiple assignments
- Available to work extended hours during peak tax season
- Communicates effectively with clients and fellow staff members
Benefits of Internship
- Gain knowledge of industry and LeConte Wealth Management's operations
- Make professional contacts that may lead to full-time employment