Retirement Portfolios

THE RETIREMENT ADVISOR

In the fall of 2007, as the stock market was reaching its all-time record high, many individuals approaching retirement were misled on the risks of investing. They were sold a bill of goods that promised double-digit returns. They were told that yields on fixed-income securities would stay high. During that year, we started The Retirement Advisor — a totally unique investment letter that was designed for people approaching or in retirement that wanted a reliable and trustworthy newsletter to help them plan for their retirement.

The Retirement Advisor publishes three conservative model portfolios that were able to weather the bear market by using fundamental investment strategies seeking returns after inflation that enable subscribers to meet their retirement objectives. The Retirement Advisor is different from other newsletters in that it isn’t a vehicle to try and lure investors with claims of outrageous unrealistic returns. Nor is the newsletter used as a front to try and collect assets to manage money for a fee.

People subscribe to The Retirement Advisor because they want to take control of their retirement planning and they want an unbiased opinion from a source that is not trying to sell them products that earn the sellers a commission. They want a source that will educate them on various retirement strategies and help them achieve their financial goals.

We invite you to see just how well The Retirement Advisor has done by examining the newsletter. Visit our web site where you can download a free issue with instructions on how to subscribe. Subscribers are able to obtain all of our back issues at no extra cost.

Click to Subscribe Now

Don't Delay Your Financial Health Any Longer!

CASH FOR APPLIANCES UPDATE

Last month we provided an overview of the Cash for Appliances program. In just the past few weeks, several states have started their programs, including Nebraska, Indiana, Illinois and Pennsylvania. More and more states are going online and starting their programs. By all accounts, it is a hit with consumers who are flocking to replace their old appliances with new energy-efficient ones.

Some states offer rebates that are separate from the Cash for Appliances rebates for recycling old appliances. This means that you can get a rebate when you buy the new appliance and a second rebate if your old appliance is recycled properly.

To find out what your state is offering, check out the Department of Energy’s list of approved programs and details where you can simply click on the state where you live:

http://tinyurl.com/y9qxouw

We covered the Cash for Appliance Program in our January Retirement Advisor Newsletter. To learn how to subscribe to The Retirement Advisor Newsletter, visit our web site where you can download a free issue with instructions on how to subscribe. Subscribers are able to obtain all of our back issues at no extra cost.

Click to Subscribe Now

Don't Delay Your Financial Health Any Longer!

Higher Inflation Ahead According to ECRI

The Economic Cycle Research Institute, ECRI - a New York-based independent forecasting group, in a series of six press releases last night and this morining, updated their outlook for global inflation. (More about ECRI). Below is a summary of ECRI's international Future Inflation Gauges (FIG) for February 5, 2010.

United States: FUTURE INFLATION GAUGE KEEPS CLIMBING

• ECRI’s U.S. Future Inflation Gauge (USFIG) continued to increase in January. The value of the USFIG lies in its ability to measure underlying inflationary pressures and thereby predict turning points in the U.S. inflation cycle.
• The USFIG rose to 102.0 (1992=100) in January from 99.0 in December, as did its smoothed annualized growth rate to 37.6% from 33.8%. The gauge was pushed up in January by inflationary moves in most of its components.
• With the USFIG now advancing for ten straight months, underlying inflation pressures are
  in a sustained cyclical upswing, promising higher inflation in the coming months.
  

Eurozone (Germany, France, Italy & Spain)
EUROZONE FUTURE INFLATION GAUGE SLIPS

• Inflation in the Eurozone has begun to perk up, as anticipated by the upturn in the EZFIG. Clearly, with the EZFIG remaining close to November’s 11-month high, underlying inflationary pressures in the Eurozone have begun to resurface.
  

Germany: GERMAN FUTURE INFLATION GAUGE EDGES DOWN

• German inflationary pressures dipped in December.
• German inflation remains in a cyclical upswing and well above its cycle low, in line with the upturn in the GFIG. With the GFIG staying near November’s nine-month high, German inflationary pressures are still in a cyclical uptrend.
  

France: FRENCH INFLATION PRESSURES MOUNT

• French inflation pressures rose in December.
• The FFIG has risen from the all-time low seen in June 2009 to its highest reading in over a year. Thus, French inflation is likely to rise further in the coming months.
  

Italy: ITALIAN INFLATION PRESSURES DIP

• Italian inflation pressures eased in December.
• Italian inflation rose further from its mid-2009 low, as anticipated by the upturn in the IFIG. Meanwhile, despite its latest down tick, the IFIG remains near earlier highs. Thus, Italian inflation is likely to remain in an uptrend.
  

Spain: SPANISH INFLATIONARY PRESSURES INCREASE A BIT

• Spanish inflationary pressures edged up in December.
• Despite its recent dip, the ESFIG remains in a cyclical upturn and well above its cycle low. Thus, Spanish inflation is likely to increase in the months ahead.
  

Japan: JAPANESE FUTURE INFLATION GAUGE RISES AGAIN

• ECRI’s Japanese Future Inflation Gauge (JFIG) advanced further in December.
• Japanese consumer prices have begun to stabilize following their deflationary decline.
  
• This was anticipated by the earlier upturn in the JFIG, which has now risen for five consecutive months to a 13-month high. Thus, the threat of persistent Japanese deflation continues to recede.
  

Korea: SLIGHT RISE IN KOREAN INFLATIONARY PRESSURES

• Korean inflationary pressures increased marginally in December.
• With the KFIG rising to a 14-month high in its latest reading, Korean inflation will increase in the months ahead.

Canada: DOWNTICK IN CANADIAN INFLATION PRESSURES

• ECRI’s Canadian Future Inflation Gauge (CFIG) edged down in December.
• Despite its latest dip, the CFIG remains well above March’s 26-year low, and close to October’s 15-month high. Thus, Canadian inflation pressures remain in a cyclical uptrend.

United Kingdom: U.K. FUTURE INFLATION GAUGE UNCHANGED

• U.K. inflation pressures were unchanged in December, according to ECRI’s United Kingdom Future Inflation Gauge (UKFIG).
• Despite its recent downtick, the UKFIG remains well above June’s all-time low and close to October’s one-year high. Thus, U.K. inflation pressures continue to be in a mild uptrend.

Disclosure: I own TIPS, TIPS mutual funds and Series I-Bonds. I also own and cover them in my newsletters.

More information:

• I Bond Rates
  
• Expected Inflation - TIPS Spread

• More about ECRI
  
  
• July 31, 2009: ECRI Predicts End of Home Price Downturn
  
  
• July 21, 2009: ECRI Predicts The End of the Recession is Imminent
  
  
• April 3, 2009: Upturn in ECRI's WLI Growth Rate Says US Business Cycle Recovery Ahead

Best CD Rate Survey by Term

The top rate for a certificate of deposit (CD) this week is at Pentagon Federal Credit Union (fondly known as PenFed CU) where you can get a 7-year certificate that currently pays 3.75% APY.

For shorter terms, State Bank of India has a 1-year CD with a 1.76% annual percentage rate.

The one year US Treasury rate is currently 0.30%.

With rates so low, banks will try to sell you their annuity products. Make sure you read our article: Beware of Annuities

The table below shows the best CD rates for other terms. If that table is hard to read, then try Very Best CD Rates.

"Highest CD Rates Survey - Current US Treasury Rates
(All rates here current as of 2/1/10)

Term	Highest Rate (APY)	Where? (Click link for Full Rate Sheets)
Vanguard Daily	0.03%	Vanguard Prime Money Market Fund
Vanguard Tax Exempt	0.10%	Vanguard Tax Exempt Money Market Fund
6 Month CD	1.36%	Ascencia Internet Bank
1 Year CD	1.76%	State Bank of India
18 - Month CD	1.86%	Aurora Bank
2 Year CD	2.20%	Discover Bank
3 Year CD	2.60%	Nationwide Bank
4 Year CD	3.03%	National Bank of Kansas City
5 Year CD	3.35%	iGObanking.com
7 Year CD	3.75%	Pentagon Federal CU
10 Year CD	3.70%	Discover Bank

Vanguard Money Market Rates shown for Reference

• Easy to Read Best CD Rate Survey
  
  
• US Treasury Rates at a Glance
  
  
• World Stock Markets at a Glance

With rates so low, banks will try to sell you their annuity products. Make sure you read the article: Beware of Annuities.