Financial Perspectives – Summer 2011
A Message for Investors from Chairman Tom James
Raymond James Chairman Tom James is a financial services veteran with an impressive list of achievements – not the least of which was helping to build this firm from the ground up. With more than four decades of experience, he is routinely sought out to participate in financial services organizations and industry panels.
Having been through multiple business cycles, Tom always has insight into both the economy and investor behavioral patterns. That’s why it’s a big advantage for us to be able to draw on his expert analysis and opinion. With that in mind, here are some key points he recently shared with Raymond James financial advisors on the current investing environment. We think they are topics you too might want to review, then discuss in greater depth with your advisor.
Review fixed income positions for safety
In the current environment of historically low yields, it’s important that you step back and review your bond positions. Together with your advisor, you can determine if your bonds are really as low risk as you believe, and how they might perform going forward in a rising interest rate environment.
Focus on retirement planning
Although the United States has a Social Security safety net, it’s important that we all take responsibility for our own financial futures. Consider scheduling a comprehensive retirement planning checkup with your advisor, even if your post-work years are still far away. The more you understand your options and opportunities, the easier it will be to achieve your goals.
Understand true risks
The financial industry is continually developing innovative new products, but you cannot count entirely on others to ensure a particular investment is right for you. It’s important to develop a strong relationship with your advisor so you can carefully evaluate investment alternatives and together make sound decisions.
Conduct regular asset allocation checkups
Determining your portfolio’s mix of stocks, bonds and cash should not be a one-time decision. This is especially important as you get older and your investment mix may need to become more conservative. Your advisor is available to help you periodically review your portfolio and determine the best asset mix for your situation.
Tax planning is not only for April
People avoid simple tax planning because it can be tedious and involves potentially unpleasant news. As a result, April 15 catches many of us by surprise. Summer is a great time to sit down with your advisor and learn about recent and pending tax law changes and their potential impact. The more proactive you are with tax planning, the less painful April 15 is likely to be.
Asset allocation does not guarantee a profit nor protect against loss.
Raymond James & Associates, Inc. and Raymond James Financial Services, Inc. are wholly owned subsidiaries of Raymond James Financial, Inc. (NYSE-RJF).
The information contained in this newsletter has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. We may, from time to time, have a position in the securities mentioned and may buy or sell such securities in the course of regular business.