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Welcome!
to my "Founders Notes", a weekly newsletter filled with tips and updates from me and the latest thoughts from members of the ARD team.
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John R. Deitrick, CFP®
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National Parks & Federal Recreational Lands - Lifetime Senior Pass for only $10 Until the end of August 2017.
On our Vacation last week we were visiting Fort McHenry, a National Park, and became aware of this great offer. Tena found this Government website describing the offer. The details below are from the US Government website. Click Here to be directed to the website.
We are experiencing a major increase in Senior pass sales.
- Until the current backlog of Senior Pass orders are shipped, your order confirmation will be honored for use at agency sites.
- If you need your pass in less than three months, consider purchasing your pass at the first site you visit. Please click here for a list of sites that issue passes. Please Note that USGS field offices DO NOT issue passes.
- Online and Mail in Senior pass applications are currently being processed within twelve weeks
All eligible Senior pass orders postmarked by the USGS before August 28 will be processed at the $10 price. Lifetime Senior pass orders postmarked after August 28 will be processed at the $80 price. Additional processing fees of $10 apply. For more information on the price changes,
Click Here.
Due to the sudden popular demand for Senior Passes, we have partnered with Your Pass Now to simplify the order process for Senior Passes. You will be redirected to their external web site.
- $10 Lifetime pass
- Please note that the price of the lifetime Senior Pass will increase to $80 on August 28, 2017. Also, a new $20 annual Senior Pass will become available at the same time.
- For U.S. citizens or permanent residents age 62 or over.
- May be obtained in person at a federal recreation site or through the mail using the application form.
- Provides entrance or access to pass owner and accompanying passengers in a single, private, non-commercial vehicle at Federal operated recreation sites across the country.
- Photo identification may be required to verify ownership.
- Passes are NON-REFUNDABLE, NON-TRANSFERABLE, and cannot be replaced if lost or stolen.
- The cost of obtaining a Senior Pass through the mail is twenty dollars ($20). Ten ($10) for the Senior Pass and ten ($10) for processing the application. Applicants must provide documentation of age and residency or citizenship. If you cannot order a Senior pass online, you can submit a Paper Application by mail to the USGS using the paper application and enclosing the same documents and $20 fee
- May provide a 50 percent discount on some amenity fees charged for facilities and services such as camping, swimming, boat launch, and specialized interpretive services
- Generally does NOT cover or reduce special recreation permit fees or fees charged by concessioners.
Additional Info
Golden Access and Golden Age Passports are no longer sold. However, these passes will continue to be honored according to the provisions of the pass.
Recreation Fees vary widely across the thousands of Federal Recreation sites. Please contact specific sites directly for information on what is or is not covered by the passes.
For questions about the pass, contact 1-888-ASK-USGS and press 3. (888-275-8747, option 3), or
fedrecpass@usgs.gov
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Global Financial Private Capital, is an SEC registered investment adviser principally located in Sarasota, Florida.
Investment advisory services offered through Global Financial Private Capital, LLC, an SEC Registered Investment Adviser. SEC registration does not imply any level of skill or training.
501 North Cattlemen Road, Suite 106, Sarasota, FL 34232
Tel (866) 641-2186
ARE ROBO-ADVISORS THE WAVE OF THE FUTURE?
Synopsis
- The Rise of "robo-advisors" has created a tremendous amount of buzz throughout the financial community.
- These low- cost allocation tools are mostly geared for younger investors who are willing to stay invested through volatile times.
- Although robo-advisors may be beneficial to some investors, they most certainly are not suited for all.
The Rise of Financial Machines
Technology has a long history of disrupting industries by replacing human labor with machines and software. In most instances, technology can provide scalability, lower costs over time, and productivity gains.
The financial services industry is no different, and improvements in technology have lowered costs for investors over the past two decades. The most recent advent in the investment arena that has gained a tremendous amount of attention from financial advisors and investors alike are robo-advisors.
A robo-advisor (robos) is a web-based wealth management tool that provides automated portfolio management advice with little to no interaction from financial advisors. These online tools use the same software as traditional advisors, and some even offer attractive services such as tax harvesting and reinvesting dividends.
These technologies are typically low cost and require smaller account minimums, which leads many to believe that they could disrupt the financial advisor industry for good, where humans are replaced entirely with machines.
The robos argue that they are superior for three reasons:
- Fees: Advisor fees take away from performance, so the robos argue that they can improve returns by reducing fees paid for money management services.
- Overlap: The algorithms used by robos are based on similar financial concepts and theories that human advisors follow.
- Overkill: Many clients do not need the full suite of services offered by a financial advisor.
Hence, robo-advisors were mostly created to meet the demands for those who have a long runway for their financial future and rather simplistic investment needs.
For example, a 25-year-old earning enough to put away a few thousand dollars each year into a retirement fund may benefit from a robo-advisor. This investor is a long way away from retirement, so if his portfolio dropped 30% in a year, there's plenty of time to recover any losses.
Right Shoe, Left Foot
Although some may enjoy the idea of paying a fraction of the cost for a fraction of the service, robos are most certainly not suited for all investors.
For example, a retiree who requires income to pay bills, needs help through volatile times, and/or is afraid of outliving a nest egg has a much harder time handing control over to a computer.
Those who have complex financial needs will also find little value in these automated solutions. No website will ever truly know an investor as well as another human who has spent time learning about the intricacies of an investor's personality and financial needs.
Recognizing their limitations, robos have become more competitive over the years. Many have recently announced the option to speak to a "representative" a few times each year for a nominal fee, but how many retirees want to speak to a stranger about the safety of their nest egg the next time it feels like the world is ending?
Simply put, while robo-advisors may make sense for Millenials because of their time-horizon and basic investment needs, these tools are putting a right shoe on a left foot for most other investors.
Implications for Investors
The single most important service that a financial advisor performs is managing investor emotions. Keep an investor from selling into panic just one time, and that advisor can change the future for her client.
The chart below shows the number of big dips in the S&P 500 since 1950, along with the average size of the drop and frequency of big dips (crashes).
These numbers may appear frightening, but consider the following three key conclusions:
- Big Dips Happen: The S&P 500 experienced 28 dips greater than 10% (also known as a "correction") since 1950, so these dips are to be expected from time to time.
- Losses Don't Last: The average recovery time from a correction was less than eight months. Hence, paper losses rarely persist for more than a year and highlight the inherent dangers within panic selling.
- Large Losses are the Exception: The S&P 500 only saw five drops greater than 30% in 65 years, or roughly once every 13 years. Furthermore, more than two-thirds of corrections failed to develop into a 20% or more loss.
The net result of this analysis is that investors lose money when they assume that the market is crashing every time it falls. The reality is that crashes are very rare, and when they do occur they usually persist for a short period of time.
If panic selling, not volatility, is the reason why investors lose money when the market dips, then I find it very hard to believe that a computer program that has no ability to create a personal connection will prevent an investor from panic selling.
The bottom line is that robo-advisors have their place in the investment community but for specific investors. Financial advisors offer far more than just financial advice, and their true value cannot be replicated with software.
This commentary is not intended as investment advice or an investment recommendation. It is solely the opinion or our investment managers at the time of writing. Nothing in the commentary should be construed as a solicitation to buy or sell securities. Past performance is no indication of future performance. Liquid securities, such as those held within DIAS portfolios, can fall in value. Global Financial Private Capital is an SEC Registered Investment Adviser.
Global Financial Private Capital, is an SEC registered investment adviser principally located in Sarasota, Florida.
Investment advisory services offered through Global Financial Private Capital, LLC, an SEC Registered Investment Adviser. SEC registration does not imply any level of skill or training.
501 North Cattlemen Road, Suite 106, Sarasota, FL 34232
Tel (866) 641-2186
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I hope you find this information adds value. If you would like to talk to John regarding these, or any other financial concerns, please feel free to call us at (614) 602-6506 and we will be happy to schedule a visit.
If for whatever reason you no longer wish to receive this newsletter, it's very simple to unsubscribe at the bottom of the page.
Make it a Great Week!
Enjoy His gift of today!
Investment advisory services offered through Global Financial Private Capital, LLC, an SEC Registered Investment Adviser. SEC registration does not imply any level of skill or training. Past performance is not indicative of future results. This commentary is not intended as investment advice or an investment recommendation it is solely the opinion of our investment managers at the time of writing. Nothing in this commentary should be considered as a solicitation to buy or sell securities. Insurance and Annuity product guarantees are subject to the claims-paying ability of the issuing company, and are not offered through Global Financial Private Capital.
Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and the federally registered CFP (with flame design) in the US., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.
AssetLock® is tracking software used to monitor the performance of a client's portfolio, and to predetermine the amount of downside the client is willing to tolerate. It is NOT an actual stop order and will NOT automatically sell the individual securities in the portfolio. Therefore, the AssetLock® value is a reference point to encourage a conversation between the advisor/firm and the client to determine if the client's portfolio should remain unchanged, reset the AssetLock® percentage by reallocating to a different risk profile, liquidate part or all of their portfolio or opt out of AssetLock®.
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John R. Deitrick
CFP®
Advanced Retirement Design LLC.
7263 Sawmill Rd.
Suite 150
Dublin, OH 43016
Office: 614.602.6506
Fax: 614.259.6094
Email: jdeitrick@advancedretirementdesign.com
advancedretirementdesign.com
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