Banach Wealth Management

• 2010 Year to date Returns
  S&P 500 (1084)                               -3%
  US 10 Yr Bond (3.65%)                   +2%
  NASDAQ (2179)                              -4%
  Foreign (EAFE) Stocks                     -4%
• U.S. GDP expected expansion      = 2.9%
• 2010 earnings expected increase =  31%
• Stock markets advanced for 10 months
• Economic upturn strength approaching peak

Link to full version BWM Letter

• 2009 Total Returns
  S&P 500 (1115) 28%
  U.S 10 Yr Bond (3.85%) -11%
  NASDAQ (2269) 44%
  Foreign (EAFE) Stocks 24%
• U.S. GDP likely contraction -2.3%
• 2009 earnings expected decline -5.6%
• Stock markets hit bottom in March
• Economic recovery in process

Link to full version BWM Letter

• A Wealth Blueprint documents the plan
• Risk Tolerances shape wealth strategies
• Ultimately cash flows must be matched

Link to full version BWM Letter

• 2009 Year to Date Total Returns
  S&P 500 (1036)                      17%
  U.S. 10 Yr. Bond (3.38%)      -18%
  NASDAQ (2045)                     29%
  Foreign (EAFE) Stocks            19%
• U.S. GDP expected contraction  = -2.3%
• 2009 earnings expected decline = -7.1%
• Stock markets hit bottom in March
• Economic recovery in process

Link to full version BWM Letter

• Tactics smooth out strategic portfolio return changes
• Tactics change with time horizons and risk tolerances
• Satellite asset tactics must often be more complex
  than core asset tactics
• Tactics include both change from and return to
  strategic wealth allocations and cash flows
• Tax management tactics smooth out returns

Link to full version BWM Letter

• 2009 Year to Date Total Returns
  S&P 500 (1057)                         19%
  US 10 Yr Bond (3.31%)            -17%
  NASDAQ (2122)                         34%
  Foreign (EAFE) Stocks                22%
• U.S. GDP expected contraction   -2.3%
• 2009 earnings expected decline -11.7%
• Stock markets hit bottom in March
• Economic recovery started

Link to full version BWM Letter

• Risk Awareness (self/asset/markets) is vital
• Resource capital (human/financial) shapes
  wealth (accumulation/distribution) cycle
• Wealth process counts in long time horizon
• Objectives lead to strategies, which should
  be tested with scenario analysis

• Decide on wealth strategy accumulation and
  distribution time horizons carefully
• Select investment portfolios, pensions, and
  annuity weights based on personal risk
  tolerances and risk boundary stress
  reduction points
• Input your investment and annuity portfolio
  at your age into a wealth cycle spreadsheet
  by requesting it at jabanach@gmail.com
  Play with it.  Does your strategy achieve
  your wealth objectives?

Link to full version BWM Letter

• 2009 Year to Date Total Returns
  S&P 500 (1020)                     15%
  US 10 Yr Bond (3.40%)         -19%
  NASDAQ (2009)                     27%
  Foreign (EAFE) Stocks            16%
• U.S. GDP expected contraction = -2.4%
• 2009 earnings expected decline = -12%
• Stock markets hit bottom in March
• Recession at statistical end

Link to full version BWM Letter

• Tactics should adjust strategic risks
• Riskier investment portfolio strategies
  require more sensitive tactical controls
• Set tactical risk control boundaries within
  emotional and financial tolerances
• Recognize the risks that specific tactics
  add to strategies

Link to full version BWM Letter

• Design strategy for your personal needs
• Study matrix of asset attributes
• Keep it simple; strive for market returns
• Implement diversification; consider asset
  classes and scenarios
• Strategies determine primary cash flows;
  (Chapter 14 tactics fine tune to specific needs)

Link to full version BWM Letter