•  According to Lipper's U.S. fund flows database, which tracks the movement of cash in over 21,000 funds, year-to-date the assets under management in the equity income category are up 26 percent to over $104 billion.  The question is whether that strategy is overdone? 
• "Probably for the first time in 5- years we are actually underweight higher dividend stocks because we think there is a little bit of a bubble in utilities, and telecoms, mid-cap consumer staples, where the market is putting much too high of a value in that dividend," said David Giroux, co-manager of T. Rowe Price's large-cap value strategy. 
• Robert Auwaerter, head of the fixed income group at Vanguard noted it’s easy to talk about the break-up of the euro, but to avoid damage to economies, he thinks they will do anything to stop it.
• Christine Thompson, chief investment officer of Fidelity Investments bond group predicts a two steps forward, one step backward kind of pattern in the market. She based that on human nature. "People (are) looking at the severity of any policy statement that comes out and they view it very skeptically.” This is what leads to some volatility.    
•  Municipal bonds are also an attractive area said Fidelity's Thompson and Vanguard's Auwaerter. 
• Don't count European assets out just yet, said Colin Moore, chief investment officer of Columbia Management Investment Advisors.

• The average lifespan is increasing due to medical inroads. 
• Medical costs are rising faster than general inflation. 
• Private employers are offering less coverage to retirees than in the past. 
• Possible shortfalls may be on the horizon for Medicare and Medicaid coverage (stay tuned on this one).

As politics and the world continue hurling toward the future, the money you made yesterday must be protected. There are a few trends in our current society that we at Pension Parameters like to look at when helping you carve out an ironclad plan to continue growing your nest egg.

1.    Age- People tend to live longer. While the original age to collect Social Security has edged past 65, consider that many people live longer than ever before. That even includes men – who live longer. We can thank medical science for this leap forward, and we want to be sure to be able to support ourselves without totally relying on Social Security.

2.    Medical Science. Age and medicine go hand in hand, and with new reforms in healthcare, and the wobbly cost of health insurance, you will need to consider that you will be paying more for your medical care than your parents did. We do not know what lies ahead in this area, but we do know that right now we’re all paying higher prices than we did previously. Certainly Medicare offsets some of this cost for those “of age,” but not totally, and long-term care has become a financial crisis for so many American families.

3.    Inflation. Economics experts define inflation as the rise in prices (general level) of services and goods in an economy over a certain period of time. In earlier times, the term inflation was used to refer the increases in supply of money, but these days the “inflation” is purely used to refer the increase in levels of prices. One could refer to inflation as the decrease in the value of money (or loss of the purchasing power in some medium of the commodity exchange). We have seen this beginning in recent years – and all signs point to inflation rising. Most accurate measure of the inflation is known as “inflation rate”. Inflation rate is defined as percentage change in the price index over a certain period of time.

4.   Investment Power. A hedge against inflation is smart investing. While we’re more conscious of the global economy than in the past, it’s always been there. Your retirement plan advisor’s job is to address how your plan is affected by world economics and what trends can be expected.

5.   Savings. While some folks really guard their savings very carefully, many Americans have had a harder time doing so in recent times.

The next few columns will address each of these BIG FIVE FACTORS: Age, Medical Costs, Inflation and the cost of money, the value of good investments, and savings. We think it’s a good idea to “break it down” so you can see just how each factor will contribute to your future –post retirement.

Just as twenty-somethings do not think they will ever turn forty, we know they will. And just like them, many of us cannot imagine life after seventy. Better to plan for a long life and in doing so, protect our retirement assets.

Says Recent Disturbing Article in Wall Street Journal:

1. You are concerned about today’s volatile market- yet you don’t feel that you understand the choices that are available to you.

2. You initiated your pension plan over ten years ago.

3. You were referred by an accounting or legal professional, yet you have not consulted as to whether your performance could have been better or whether the plan should have changed.

4. You have added staff, lost staff, or had other growth or shrinkage issues in your business.

5. You do not have a personal relationship with your account manager.

6. You work with a large money management company and your account manager changes all the time, but things seem to just be going “according to the way the market is going” and you think there may be no proactive moves you can make.

7. You are generally taking a passive position in your retirement planning, despite personal changes that should be addressed in your own family life.

8. You just don’t want someone trying to sell you a plan – you are sick of salespeople --and just want to discuss without expectations. You want to learn without being sent slick brochures, and you don’t understand why companies think that you will understand them.

9. You don’t know what questions to ask.

10. You don’t think you can ever afford to retire so what’s the difference.

1. You need to build your own nest egg…when you have a small business; ultimately you’re the one at the helm who is taking care of yourself and your employees.
2. In many cases, small business owners do not realize just how much their incomes will shrink when they retire and begin collecting Social Security, which can start at age 62. A retirement plan, will, of course, bolster and supplement this income so that business owners will have the satisfaction of creating extra income for those years.   
3. Speaking of Social Security, there is nothing ABSOLUTE right now, given the new discussions that have arisen in Washington. You may not collect at age 65; perhaps you will begin collecting at 67. Are you certain you will be able to work until then? The nest egg takes on new importance.
4. Because of the stock market today, small business owners have the chance to “buy low, sell high!” This year offers numerous unique opportunities for fund growth and long-term asset building.  
5. Some people say compound interest is one of the wonders of the world. Compounding $1 today could mean $100 in years to come. 
6. Dollar Cost Averaging is a strategy in which an investor places a fixed dollar amount into a given investment on a regular basis. An investor's returns will be determined more by the overall trend in a given stock as opposed to the investor's specific purchase price. It helps investors reduce their cost basis on securities that decline in value.

• Consider your mix of Treasuries or other government bonds. If you are considering diversifying your bond holdings, think about investment grade bonds from corporations, many of which may be flush with cash now. If Treasury bond prices move lower, corporate bond prices could follow. However, they may decline less. Also think globally, as there are many interesting opportunities in foreign investment grade and high yield corporate or sovereign debt to consider. But be aware that high yield credit and foreign securities can carry significant risk.
• Check your liquidity. As always you want to have enough cash on hand, so you don’t need to tap your investment portfolio if the markets hit a rough patch. Having an adequate emergency fund is important. And if you are retired, you may want to check your income plan to help ensure that you don’t have to tap your portfolio too heavily in a market downturn.

• The Obama Administration has expressed interest in the idea of offering employers some kind of 'safe harbor' for agreeing to keep retirees' money in their 401(k) accounts.  Though many experts predict a federal program governing 401 (k) withdrawals is far in the distant future.
• A recent survey showed most workers wanted to retain control over their retirement money, but older workers are more willing to use more from each paycheck for a guaranteed lifetime benefit. Starting in 2012, Labor Department rules will require the clear disclosure of all 401(k) fees.