Newsletters Archives - FP, Inc®

Spring 2017 – Is Economic Growth a Reliable Indicator of Future Equity Returns?

We recently learned that the US economy has grown at a 2.1% annual rate since the recovery began in 2009. This pace of expansion has been the weakest of any in modern times: It seems to make sense to treat economic growth as an indicator of future equity returns. However, the relationship between economic growth more »

Online Sites at Financial Plan, Inc. – Winter 2017

After inquiring with our clients,  it seems that many are not particularly active in logging on to our various online sites.  Most are not interested in following their investments on a frequent basis; rather, they use our annual review meeting as a “deep dive” into their portfolio and their financial plan.  Others are concerned about more »

Please Welcome The Newest Addition To Our Company: Justin Gross

The history of our firm and our clients has been one of success, and as a result we have experienced a gradual growth in clients and employees.  In recent years we have been on a pace to add one employee per year. We understand that in order to provide world-class service, we must not allow more »

Trailing by One Point. No Time on the Clock. Two Free Throws. – Summer 2016

The market decline of early 2016 was not anywhere near the magnitude of a bear market such as we experienced in the year 2000 or in 2008.  Yet it had some of the same feel as past events.  Times like that are never easy for investors, who must confront their concern that maybe this time more »

Negative Interest Rates: Coming to a Bank Near You? – Spring 2016

In recent months, several of the world’s central banks have conducted a highly risky experiment with negative interest rates.   For example, the Bank of Japan has a rate of minus 0.1%, the European Central Bank has a deposit rate of minus 0.4%,  and Switzerland’s bank rate is a minus 0.75%.  German government bonds with maturities as long more »

Performance and the Weather – Winter 2016

Belling-hamsters know what it is like to wait out a long winter.  A down market can be like that;  gloomy, day after day.  It’s not pleasant, and there is nothing we can do about it. (Well, OK…I like rain and down markets, because both are necessary for growth,  but I’m odd that way).  Our dislike more »

Withdrawal Rates – Autumn 2015

In the latest edition of The Plan, Jamie mentioned the 4% rule of thumb for withdrawal rates. To delve a bit deeper, the 4% rule hails from the 1994 Trinity Study which looked at past returns for a “moderate” investment portfolio. This study determined that an initial withdrawal rate of 4%, annually adjusted for inflation, more »

Savings Rates – Summer 2015

Many years ago when I was just beginning my budding career,  an older and wiser financial advisor told me that “the only rule of thumb is that there is no rule of thumb”.  My experience has taught me to believe it.  Take savings rates for instance.  Many have heard the rule of thumb:  “Save 10% of more »

Welcome Gabriel Twining – Spring 2015

In February, my youngest son Gabriel graduated from Saybrook University in Seattle with a Master’s Degree in Industrial Psychology with a focus on Organizational Systems. In March, he and his wife Jaimee  (who has trouble spelling her name correctly)  moved to Bellingham to escape the big city and be closer to family. Gabe’s extensive and more »

Home Bias – Winter 2015

If you’ve been with us long enough, you know that we value efficient diversification on a very large scale. True diversification decreases your risk without decreasing your expected return over long periods of time; an invaluable component of a robust financial plan. Not only do we invest in thousands of different securities, but we also invest across more »