An expression people repeat over and over is “the one constant is change”. In our business, we are often consulted as a result of changes such as a new job, marriage, divorce, death, and relocation. In the past few months, I have seen several cases in which, amidst these changes, beneficiaries were not updated or changed on accounts, and the result was detrimental.

The first quarter of 2015 is over. The stock market went up, the stock market went down. It kept doing this all during the quarter. At the end of the quarter, the Dow Jones Industrial Average, an index of 30 blue chip stocks, had dropped 0.3%. The S&P 500, a much broader index of the market, was up 0.4%. In summary, not much change to either of the indexes.  What was more apparent was that other asset classes did better than the U.S. stock market during the first quarter. I am always emphasizing diversification and this quarter was an excellent example of why it is so important.

Anyone who earns income through employment or has a spouse with earned income may be eligible to contribute to an Individual Retirement Account (IRA).  The common question is which IRA, Traditional or Roth IRA, is best for you? 

Several weeks ago, the media was reporting that economists didn’t think that the economy did well in the 4th quarter of 2014. Despite resistance to the idea, however, the U.S. economy is growing while creating new jobs and higher wages.

One of the most popular topics clients often wish to discuss is whether to pay extra on a home mortgage or to invest those extra funds in another kind of asset. For some, the idea of having debt of any kind is stressful, and they feel compelled to pay down the debt at all costs. For others, the idea of having some liquidity built up while continuing to make regular mortgage payments contributes to their peace of mind. While there is not a right or wrong answer, you can do both: build assets while systematically reducing debt.

The price of oil has dropped by about 55% in the past year, causing a great deal of disruption. The economies of many oil producing countries are being devastated by the drop. The cost to produce the product has become greater than the selling price in many places, resulting in an economic imbalance. To mitigate this price drop, a reduction in staffing and production by oil companies might help, but in third world countries, a significant reduction in employment could result in some form of uprising.

For some it was a good year, for others not so much. For investments, it was mostly a good year, with both stocks and bonds benefiting from the growth of the U.S. economy. Foreign investments did not fare very well, as currency values shrank relative to the dollar, and foreign economies were stagnant. Commodities were mixed, with oil being the major game changer, as the price fell by more than 30%. What will 2015 bring? Will we see oil rebound, the U.S.

At this time of year, I like to look back to a year ago and see if we are better off now than we were then. On balance, it appears that, both economically and financially, we are better off this December than we were a year ago. Many jobs have been created, unemployment is lower, consumer confidence is greater, factory production is higher, and all of this is happening as the Federal Reserve withdrew its economic stimulus. Not bad! If I were looking at Europe, China, Japan, Russia, or most of the rest of the world, I could not say the same.

At this time of the year we get an opportunity to take some quiet time and count our blessings. As for myself, I have many blessings to be thankful for this year. Above all others is my oldest daughter’s most recent MRI, showing her to be cancer free. I have many other things for which I am grateful, such as living in this country, having a caring and loving family and fellow workers, whom I enjoy being with each day. Much of what I am grateful for would not be possible without the support of you, my clients and friends.

A great deal of economic data has been released in the past couple of weeks. The most important news was a report from the Commerce Department indicating that the GDP of the U.S. grew at a rate of 3.5% during the third quarter of this year. Thus far in 2014, the growth rate for the three quarters has now averaged 3.5%.