Clark Associates Financial Planning, Inc.---Clark's Corner

Each 4th of July I try to read the Declaration of Independence. Click here to read it!

This is a crazy year. Many new taxes are apparently coming. It is crucial to make decisions now that will impact you for the next 20 years!

Have you finished all your Christmas Shopping? A donation to charity in someone's name is a great gift!

Sleep is a fundamental thing that many of us lack. We are grinding down feeling sleepy. We have an answer and it is a simple as reading this: The Senate's New Health Care Bill. (click on it!)

First game of the world series. The greatest players in the world have coaches. Couldn't you use a financial coach?

Yes, that is Jeter. When you call, give Dan a hard time. He is a life long Yankees fan.

"Always remember, because someone is wealthy does not necessarily mean they have a wealth of knowledge about money!"-John Clark

"Nowadays people know the price of everything, and the value of nothing." -Oscar Wilde-Picture of Dorian Grey

Social Security had a nice Cost of Living Adjustment last year of 5.8%. Sadly, as the law stands now you might have to live with this for the next three years. It's wise to plan for this now.

In this economy, many people want some economical diversions. I recommend you go into the Pinelands and enjoy this South Jersey Treasure.

We hope this letter finds you well. Unfortunately, the news and media would have you believe the sky is falling. This is not to underestimate the atrocious impact of last year. However, daily news bombards us. We see images of executives begging for money, politicians chanting that the US government is the “only” hope, and images of poor souls leaving their homes due to various reasons. To say these images are disturbing is an understatement. We may be asking ourselves many questions. “What should I be doing? Shouldn’t someone fix this? This has got to be the bottom, right?” In fact, the news starts most nights talking about the crisis du jour. Fill in the blank if you will:

Each topic seems worse then the next. Before long, some people are just plain scared of everything flying at them. It is very natural and who could blame them. Someone was in the other day and summed it up perfectly, “I am just sick of being sick.”

This is where investing gets challenging so let us look back. In the beginning of this new century, the market dropped over 47%[1]. In the last few months of 1987, the market declined over 32%[2]. From 1973 -1974, the market lost over 44% its value[3]. If you put $100,000 in that market in 1973, went on vacation for a year, when you came back you would have around $50,000 if you sold. You would also be reading newspaper headlines that talked about unemployment reaching 10%, an unpopular war, an unpopular president, oil problems, and a budding housing market crash. Imagine, if you will, that you said, “I am already sick of this and going back to the Antarctic for another vacation.” It is lovely this time of year. Then you come back a few years later. Assets were back and all the junk in the news fell by the wayside. We invite you to take a well-deserved mental vacation. Just turn it off…. If you see it on TV, change to Turner Classic Movies. If friends or family start talking about it, tell them you are sick of being sick. Tell them one of the preeminent advisors in South Jersey invites them to do the same. Better still, tell them to come in and talk to us.

We hate to break it to the media and politicians; almost every bear market was different. If it were the same, it would have been expected, ergo NOT OCCUR. What is not different is we endured many bear markets and bad times. At least 15 bear markets have occurred since World War II. This is not to say it is not stinky, scary, or gut wrenching.

A little while ago, we got our quarterly statements with more on the way. Some people gasped, some had to take a seat, some did not even want to open them, and a few actually wanted to invest more. We liken quarterly statement to a collection of newspapers over the past 3 months you were on vacation and decided to read all the bad news at once. That is a lot of murders and fires to digest, which by the way already happened and there is NOTHING you can do to stop it.

One of the most powerful things on this planet is a person’s capacity to raise capital and create wondrous things. Guttenberg knew that books were too expensive to make and the only way to get it to the masses was inventing a printing press. Guttenberg is dead and the printed word is being surpassed by digital. Ford did not invent cars, but a better way to make them on an assembly line. Henry Ford is long gone and his company struggles. A nerd sat in a garage and created the Personal Computer. Bill Gates stepped down last year, and we can not wait to see what Microsoft (or someone else) has in store for us. A beautiful forest has risen out of the ashes of a forest fire EVERY single time no matter the severity. Let us try to enjoy this ride into the future from the ashes, not just endure it. Be a part of it and own the future. By the way, American Funds is leading the way in sifting through the ashes and visiting the beautiful sprouts that are popping their heads up already. Just know that these forests can take years to grow.

We know you want us to tell you everything will be great this year. We can’t. You may want us to tell you everything will be back to normal in five years. We can’t. What we can say is, we will work tirelessly to find every opportunity for you and your assets as we ride through together. NO ONE cares more about you or your assets than we do. Our lifeblood is tied to your success. There may have not been many pleasant stories though the year, but Clark Associates is growing in this market. We are actually taking on a limited amount of qualified clients this year. Your referrals as always get priority. People are really hurting out there. People have lost their jobs; it may have been you, a loved one, or a friend. Maybe it is just time to revisit your asset allocation. Remember, it is not what your funds do that is the critical variable, but what YOU do. We can help. Please share what we do and pass on this letter if you want. We thank you for your business and continued trust. God Bless you and America.[i]

[1] (3/24/00 –10/9/02) as measured by the S&P 500-a broad measure of the US stock market. (-47.4%)

[2] (8/25/87 –12/4/87) as measured by the S&P 500-a broad measure of the US stock market. (-32.8%)

[3] (1/11/73 –10/3/74) as measured by the S&P 500-a broad measure of the US stock market. (-44.8%)

[i] The statements included in this letter are the opinions and beliefs of the writers expressed at the time the commentary was written and are not intended to represent those persons’ opinions and beliefs at any other time. Past results are not predictive of results in future periods. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so investors may lose money.

With so much bad news spewing out, sometimes you just have to sit back and laugh. I saw this bumper sticker and just had to share it.

Depression Bowl. Fox News announced today that in order to save money, avoid layoffs, and meet its numbers, it would broadcast only the second half of the Super Bowl. (Just kidding.)

As many of you know, I enjoy taking pictures. I love to look back at all the good times with family and friends. A snapshot can bring about all those warm feeling on those good days, like laughing by the Christmas tree or the shot of your friends around the dinner table. We disregard the pictures that do not show the whole story or are out of focus. We would never judge someone by a single snapshot. This year is full of those single snapshots about the world and your assets. It is so important to keep perspective. We would never get a complete representation of our little Joey just by the picture of him with mash potatoes on his head.

We want to thank everyone of you this year. We appreciate your faith and business. You were hit over the head with bad news and hysteria all year, and may be understandably shaken up a bit. Thanks for sticking with it. Although everything else is fluctuating, Clark Associates is pleased to announce this year that we are keeping our fees the same.

Also, thank you for all the wonderful words of encouragement for my first year home with our son that my wife, LeeAnne, and I adopted from Guatemala. Howard and Betsy are enjoying their grandchildren and children, I hope, as well. Dianne warmly welcomed the birth of her second grandchild. Lew and Kathy also embraced the birth of a new grandchild. And, Dan has been training for running races all year, in fact becoming somewhat of a local celebrity in Williamstown!

Take the snapshots that mean a lot to you this Christmas season and enjoy those from the past. Turn off the TV and hug your family and friends. Try to put the snapshots of quarterly statements, nightly news, and market reports away and enjoy this Holiday season. Look forward to the future. We wish you and your family a Merry Christmas, a blessed New Year, and look for good things to come.

As many of you know I am a huge fan of the Phillies. Please take these next few days and just enjoy the moment.

H.L. Mencken once said, “The whole aim of practical politics is to keep the populace alarmed, and hence clamorous to be led to safety, by menacing it with an endless series of hobgoblins, all of them imaginary."

Some argue that “The Bailout” of 2008 will save us all. Some say, “Did we need saving?” Many say, “What the heck is this bailout anyway!” We would love to give you an answer that puts everyone’s mind at ease. The fact remains, we can not. You should be glad that we stick to our guns and advise you through these ups and downs with out changing what we do day to day. You turn to us in these extraordinary times not to do something out of the ordinary. Remember, you will always need: food, water, housing, clothing, hospitals, and fun stuff. There has to be companies to provide these. Oh and by the way, my father says, “You will learn more about life watching God’s green grass grow, then the sound and the fury of the market signifying nothing.” God Bless

They say the world is in fantastic turmoil. Gas is up. It is easy to get caught up in the news of the day. Yet we must remember a few things. Prayers are more powerful than worry. Hope eternal, fear passes. And making the world a safer, more peaceful place starts in your home and community. Many people recall the powerful trickle down theory introduced in the 1980’s that has lead to over 25 years of economic prosperity in our country. Making peace in your home and community will have a trickle up theory.

The news also loves to flaunt the bad things in life. They use words such as tumultuous, fear, destruction, savagery, and risk. I have brought this up to many clients. I would like to share a simple thought here with all. It has to do with the Chinese. Look at this lettering.

This is the Chinese character for RISK. It is made up of the words danger and opportunity. There is always a risk reward relationship. And in many risks there are opportunities. As you sit in front of the news and absorb the horror they love to show, realize it takes risk in order to ensure our freedom and prosperity. As wars continue, weather rolls in, and markets go up and down may, we endure risk and look forward to peace prosperous opportunities. God Bless America.

June 12, 2008

With great joy, we anticipate summer. Some complain about the heat,
but down deep we are just glad is not snowing. The last of the spring
flowers are fading and the summer veggies are starting to poke
through. The local farm down the street from my house dropped in
those tomato plants my family loves. There is something about
summer in the Delaware Valley. New Jersey turns into that garden
state we all know and love. In addition, the flowers around the shore
homes come into there own. I suggest you take your time and look
around. When you head down the shore, perhaps take a back road.
Buy some local produce from an “On Your Honor Stand.” Show your
appreciation for the local farmer and give them a little extra. Perhaps
bring a picnic lunch and stop at one of New Jersey’s family owned
vineyards. This is how you keep the local farmer going.

It seems part of the inevitable ebb and flow of the seasons that people
get savings lazy in the summer. The cost of a vacation weighs heavily
on some minds. Think how long you spent planning your vacation.
Start adding up all the time that it takes to get down and back from
the shore. How about picking out the perfect house rental? Now,
think how long you took planning the next 20, 30, even 40 years of
your life. If you are 30 years old, you should not “wait until next
year,” or “wait until I get that big raise.” Those that are 67 and think
your planning days are over, you are wrong. Are 20 or 30 years not
worth planning? Are a few hours not worth the Peace of Mind they
can bring? God Bless and have a safe summer.
John Clark

As many of you know, my wife and I were in the process of adopting a little boy from Guatemala for over a year. It seemed as if the process would never end, but finally has! Last week my wife, Lee Anne, and I went down to Guatemala to pick up our son Joey. He is a healthy and happy 14 month old boy. We wish to thank you all for your prayers and kind words of support through this crazy time. If you would like an insider’s view of adoption, my wife kept a BLOG of everything. CLICK HERE to see it. Looks like Clark Associates is building the next generation to serve your needs from the ground up! Again, thank you and God Bless!