Our investment strategy continues to serve us well. It has protected us from the major market swings and allows us to earn a fair return. That is what we are doing again this year. Through the first quarter, our accounts are up…, beating our target of 1 percent per month. The covered call strategy that helps us in times of market turbulence, also slows us down during market upswings. It hedges our returns whichever way the market moves while allowing us to collect the dividends and reap the option premiums that generate a portion of our returns.

Many market pundits have been calling for a correction for the past month or so. They haven’t gotten one. Market corrections are good for the health of the overall market. They punish stocks that are overvalued as well as drive out people who are fearful of the market. Because the market has run up so quickly this year, we are keeping a somewhat conservative posture with our covered call strategy. We will be working to earn our 1 percent per month, but we are not taking aggressive bullish positions in case the market does decide to pull back.

We would like to remind everyone about our FINANCIAL AMNESTY program for current clients who have substantial ($100K and up) monies invested elsewhere. We welcome transfers to our care with no fees on that money throughout 2013. This is a one- time event which will not be repeated.

If you ever have any questions that are financial in nature, do not hesitate to call. We are here to help you.

Very Truly Yours,

Michael F. Cantlon

Thomas E. Guyett

You can find out more detail in this article.

How does it look? We used to think that a married couple aged 65 with a $1 Million each of investable assets, a mortgage-free home and Social Security had it made. Because of longevity, I’m not so sure anymore.

Perhaps it’s just me, but I seem to see lots of folks my age working in grocery stores and restaurants. Longevity and the price inflation that goes with it threatens our financial security. What to do?

We manage at least some of your assets. Do you have other assets that should come to us? We have a proven record of growing your assets. Can you add to your assets by decreasing your spending or increasing your income? Should you stay in your job longer? At what age should you take Social Security?

FINANCIAL AMNESTY for current clients who have substantial ($100K and up) monies invested elsewhere, we welcome transfers to our care with no fees on that money throughout 2013. This is a one- time event which will not be repeated.

Increasingly, I hear from clients and others who seek ‘safer’ investments even at the cost of lower returns. I don’t want to preach, but if you have a doubt, call us now to discuss and determine if you are on your way to a personal ‘fiscal cliff’.

It looks like 2012 will end up as an ‘average’ year as far as our total return is concerned. Average return is akin to ‘normal rainfall’ or average temperature. It didn’t seem like an average year as it unfolded. It was a very unpleasant year as we had numerous setbacks. Now we must endure the political process ad nauseam before we know what the new ground rules will be. Our job will be to make any necessary adjustments to continue to bring you a fair return with reasonable safety.

A reminder to all tax clients that Mr. Rick Carlson will once again be preparing returns for you. We will assist Rick and review the completed calculations but he will sign them. If you are a tax client, it’s time to start accumulating your documents for submission in February.

Very Truly Yours,

Michael F. Cantlon

We face the obvious distraction of the presidential election and attendant economic and tax threats. Europe is still in crisis and now China is slowing down.

We will keep you invested in a diversified portfolio of dividend paying value stocks and will take in call option premiums as we see the opportunity. We will let the whirling dervishes whirl.

We see some of our clients and friends moving closer to retirement with assets that we consider marginal or inadequate. If your plan is to win the lottery, we encourage you to have a sit down with us to improve your chances for a comfortable retirement. Please call to schedule an appointment, there is no cost.

Our own finances have been somewhat skewed of late as payments for our quarterly invoices have come in at a slow pace. We are instituting a charge of 2% for payment beyond 30 days. This is necessary as all three of us like to pay our own bills on time and expect timely payments from you.

Very truly yours,

Michael F. Cantlon 

Statistically, the stock market is cheap, but the economy and politics continue to cause big fluctuations in prices. Daily and weekly swings provide us with much frustration as well as opportunity. Weakness in the Chinese economy along with the continuing saga in Europe and our own political stalemate suggest little relief in the near term. That being said, our dividend and option income should continue to show positive returns – over time.

We are investigating ways to provide our prospective and future retirees with assurance that they will receive stable income over their lifetimes. Low interest rates make this difficult, but not impossible. We hope to have more to report in the near future.

Whenever you are offered an investment vehicle that sounds too good to be true, please give us a call. Some of these “can’t miss” insurance products are costly and difficult to get out of once you are in them. Let us review the product and give you an impartial second opinion on their suitability for your financial portfolio. Don’t forget to visit our website at www.cantlonfinancial.com and click the “Like us on Facebook” button on the right side of the screen. When you Like Us on Facebook, articles that we find interesting will show up in your Facebook Newsfeed. This is just one more way for us to keep you informed and educated about your financial well-being.

Very truly yours,

Michael F. Cantlon 

As always, please call us if you have any questions.

If you have any questions as to how to rollover a 401k or how to invest your funds, we are always here to help. Give us a call. It will cost you nothing and who knows, you may even learn something.

http://eba.benefitnews.com/news/financial-principal-workers-retirement-decisions-2723436-1.html

What is even more encouraging is the anecdotal information that we continue to see around us. Unemployment has fallen. Businesses are reporting increasing orders and profits. Companies are raising their dividends. While Europe seems to be dipping back into recession and China has slowed down, the United States is getting back on its feet and expanding.

There is still some concern that Europe and or China will drag on our economic growth this year. The U.S. presidential election this fall could create some political turmoil as well. That being said, we are investing in solid companies that we feel will provide above average returns going forward.

As we continue to move our firm into the 21st century, Cantlon Financial Planning is now on Facebook. Visit our website at www.cantlonfinancial.com and click the “Like us on Facebook” button on the right side of the screen. When you Like Us on Facebook, articles that we find interesting will show up in your Facebook Newsfeed. Our plan is to find one newsworthy article each week to highlight for you. This is just one more way for us to keep you informed and educated about your financial well-being.

Very truly yours,

Michael F. Cantlon