Banach Wealth Management

• 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

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• 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

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• 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

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• 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)

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• 10 Setting and Forgeting the Plan
• 9 Emotional Triggers
• 8 Unlimited Piggy Bank
• 7 Counting on the kids
• 6 I don’t know and
  am afraid to find out
• 5 Taking the wrong path
• 4 The Broken Funnel
• 3 Great Grandma’s Misfortune
• 2 Give me what I want now
• 1 There’s always tomorrow

Link to full version BWM Letter