What’s Going On…!

Welcome to the new CB3 Financial Group, Inc. monthly newsletter! We are excited that our new format will allow for more frequent updates on economic and market conditions. Beginning this month of July, you will now receive, by e-mail, timely updates and commentary, as well as the closing monthly and year-to-date market performance data for the Dow 30, S&P 500, and NASDAQ 100.

Market Update

With the summer lull comes trading ranges that will likely persist until the 4th quarter begins. Historically, the 3rd quarter has the narrowest trading ranges of the four quarters in the calendar year. Naturally, the stock market is not obligated to follow that traditional pattern. What we are seeing since Memorial Day is narrower top-to-bottom trading ranges in most sessions. Some of that is due to far fewer “surprises” from the economy or corporate earnings reports. The “market jolts” of October/November 2008 and February/March 2009 are in somewhat in remission (for now, anyway).

Retirement Perspectives

As each of you knows, our clients’ retirement security is our highest-level concern at CB3 Financial. With the market crash of 2008-2009, there is some new alarming data from the Employee Benefit Research Institute 2009 Retirement Confidence Survey that concern us:

• 13% -- That’s a survey new low for the percentage of workers that believe they have enough money to comfortably retire.
• 20% -- The percentage of retirees confident about having a financially secure retirement (down from 41% in 2007).
• 28% -- Percentage of workers who state that the age at which they expect to retire has increased.
• 72% -- Percentage of workers who are planning to work after they retire (up from 66% in 2007).

These are sobering numbers. You can see from the above statistics that retirees’ confidence is seriously on the decline. While we at CB3 can’t control the market’s behavior, we can and do work as hard as possible to keep you on track and aware of market and economic conditions that can cause a change in your plans. We understand that our challenge is to help you work out a balance between your dreams and your resources. It’s our mission and privilege to earnestly assist you in that process.

Retirement Bubble?

You have heard about the stock market bubble of 2000 and the real estate bubble of 2006. Both bubbles “burst” after swelling beyond all reasonable proportion. Its aftermath caused havoc with our household assets. People are retiring as early as they can. Yet, they also know they are living longer than any previous generation. This presents ongoing psychological and economic challenges. There are very few events in life that are more emotional than retirement. Statistics show that only marriage and the birth or death of a child can match it in emotional intensity!

We at CB3 want to help you, our clients. To that end, I am coauthoring a book on this very topic with noted psychologist, Dr. David Gursky. Dr. Dave, as he is prefers to be called, is a teaching professor at the National University of Health Sciences located in Lombard, IL, as well as a clinical director at the Village Counseling Centre in South Elgin, IL.

(This is) NOT Your Father’s Retirement

This autumn, we will be publishing a book that will contain several topics on retirement as well as the psychology of retirement. We will include interviews with current retirees. The interviews investigate the retirees’ perspectives on both the financial and emotional “after effects” of their new lives. Our fathers and mothers retired with a secure pension, secure Social Security and secure Medicare. It’s just not the case today. These benefits are not certain, at least to the degree our parents expected them. Therefore, in 2009 and beyond, we believe you will more than likely not have your father’s retirement. Thus the inspiration for our book and its title: Not Your Father’s Retirement. You can down-load a free summary white paper of the book from our home page at www.cb3.com. We highly encourage you to do so.

The Fireside Chats are online!

Once you download our white paper on Not Your Father’s Retirement, you might also want to click to view our most recent Fireside Chat in video format. There have been many requests from clients (especially those living out of state) that we make the Chats accessible to those who cannot attend the presentations. Your wish is our command! Now you can see them online, either for the first time or as a review of the original presentation. Please share this link with your friends and family. If, for any reason you are hesitant about referring us to others, just direct them to our website and video. Let us do the “talking”!

Going forward

I will continue my “market condition updates” via e-mail. If you are not receiving those e-mails, please call our office (or email Lory at lharris [at] weg1 [dot] com) to be added to our distribution list.

Be assured that Chris and I, along with the rest of our team, are watching your accounts daily, as we consistently evaluate how to best serve each of our client’s investment objectives. Please feel free to call or write (cbrown [at] weg1 [dot] com) with either questions or concerns.

Until next time,