That would seem to make sense. But the problem is that many people forget that they've already designated beneficiaries on many of their financial accounts, such as IRAs and on their insurance policies. Or they think that a will overrides those designations. However, the opposite is true.

If there's a discrepancy between beneficiaries named on your financial accounts and those named in your will, your financial accounts will prevail. So while a will is an important part of your estate plan, you also need to update your beneficiary designations to make sure you don't inadvertently leave something to an unintended recipient, such as an ex-spouse.

It really depends on the type of debt you have—"good" debt or "bad" debt. 

Good debt is low interest and tax deductible, such as a mortgage. 

Bad debt is high interest and non-deductible—think credit cards. 

Your personal circumstances and tax situation will help determine how much debt to eliminate and when. Credit card debt should always be the first to go.

Continuing to work, at least part-time, is a great idea for a lot of reasons, but the reality is that while more than one in three workers in our survey (39%) said they expect to get income from a part time job in retirement, only 4% of those who are currently retired actually do. Often, the reason has to do with health issues. Plus, the current job market doesn't make it any easier.

Every adult should have life insurance?

Do you have young children? Are you supporting other dependents? Do you own a small business? Or do you have significant liabilities that will continue after you die? If you answered yes to any of these questions, life insurance may make sense. Otherwise, it could be a waste of money.

You should start taking Social Security as soon as you're eligible? 

If you wait to take your benefits starting at age 70, they will be 76% higher than if you start at age 62. Of course, you also have to factor in your current needs, health, spousal benefits and family history of longevity before you make this important decision. 

You should purchase long-term-care insurance when you're in your 40s or younger?

It sounds right because younger people have a lower premium. But on the other hand, you'll be paying that premium for a longer period of time, increasing the total cost. Bottom line? If you're in good health, the ideal time to consider long-term care insurance is between ages 50 and 65.

Retirees shouldn't have their money in the stock market?

While it's often recommended that you decrease the percentage of stocks in your portfolio as you get older, keeping a certain amount in a combination of stocks, stock mutual funds and exchange-traded funds (ETFs) is good protection against inflation no matter your age. You don't want to risk money that you'll need in the short-term, but there's such a thing as being too conservative—especially if you anticipate a long retirement.

If you need cash while you're still working, a 401k plan is a good place to turn for a loan or a withdrawal?

A 401(k) loan should be a last resort unless it's an emergency. First, you're immediately depleting your retirement savings. Second, you're risking taxes and penalties if for some reason you can't pay it back on time. Third, if you leave your job for any reason, you'll need to pay back the loan ASAP. And finally, regardless of when you pay back the loan, you do so with after-tax dollars, which gets taxed again when you withdraw the money in retirement.

By the time you're 50, it's too late to make a difference in your financial future?

Absolutely not true! You likely have 15-plus years of saving ahead of you. More than a third of working Americans don't plan to retire until 70. If you save diligently and take advantage of catch-up contributions for both 401(k)s and IRAs, those extra years can make a significant difference in your financial future. 

 Monetary policy is the avenue through which governments can control the supply of money in the economy in order to stimulate growth. Expansionary policy is instituted to control unemployment during recessionary periods. The idea is to lower interest rates and make credit available so that businesses will expand.

 Often inflation is described as too much money chasing too few goods. Prices of goods seem to be moving at lightening speed. Some inflation is good, it represents economic growth. When there is too much inflation in the economy, a monetary policy of contraction is established in an attempt to curb the erosion of asset values. Monetary policy differs from fiscal policy. Fiscal policy attempts to stimulate the economy through taxation, government spending and associated borrowing.

 The US economy has been under Quantitative Easing (QE) for the past several years. We have been through QE1, QE2 and QE3 all various forms of the Federal Reserve's attempt to stimulate the economy. Other central banks around the world have implemented various forms of quantitative easing. The idea is to buy a specified amount of financial assets from commercial banks and other private institutions. This increases the monetary base and lowers the yield on those assets.

 One of the big trends we expect in 2014 is the divergence in monetary policy among the major central banks. The UK, Canada and Australia all have an easy stance. Japan is super easy, and the Fed is becoming less easy. But Europe still has a tight monetary policy even though policymakers there continue to talk about doing "whatever it takes." Consensus is that the European Central Bank (ECB) will need to relent and embrace quantitative easing because the credit crunch is worsening.

 If monetary policy divergences continue, the euro could fall, and combined with a downtrend in the Japanese yen, on a trade-weighted basis, that would push the U.S. dollar higher. A stronger dollar typically makes exports less competitive, leads to lower inflation and attracts foreign capital to the bond market, helping to hold down interest rates. The euro came into 2014 on a firm note, indicating that the foreign exchange market is not convinced the ECB will change its policies. A reversal could signal perceptions that policies have changed. Do you favor a strong dollar? Sua Sponte

Bradford C. Bruner for Sua Sponte Wealth Management

 The Federal Reserve has their eye on Long-term Unemployment. This is the number of individuals who have been out of work for 27 weeks or longer.

 Federal Reserve Chair, Janet Yellen, is focused on the problem of long-term unemployment. Her research suggests that the longer someone is unemployed, the more that person falls behind on the skills needed to find and hold a job. Therefore long-term unemployment raises the risk of falling permanently out of the work force. When the size of the labor force declines, the unemployment rate also falls. But a smaller work force also slows productivity growth, causing economic growth to slow down.

 Some analysts may say that the remaining workers get more bargaining power and drive up wages. That could mean rising inflation and weak productivity growth—not a good outcome. We tend to feel that the current work force is doing more for less. Currently about four million people have been out of work for more than six months, representing about 38% of the total unemployed. That's down from the peak of almost 50%, but still higher than every other postwar recession. And we've been out of a recession for more than four years. Watch for the Fed to key in here as they step through their playbook.

 Recent information from the Bureau of Labor Statistics shows the number of long-term unemployed (those jobless for 27 weeks or more) increased by 203,000 in February 2014 to 3.8 million; these individuals accounted for 37.0 percent of the unemployed. The number of long-term unemployed was down by 901,000 over the year. Our graphic shows a downward trend. Map below shows unemployment by state. How are you trending? Sua Sponte.

Bradford C. Bruner for Sua Sponte Wealth Management

 You'll notice that economic growth (GDP) is in lock step with credit expansion (Bank Credit). Banks have plenty of money to lend, but loans have slowed down in the past year. The slow down is not the result of a credit crunch, but probably more of a reflection of slowing demand due to caution exercised by businesses and consumers. So, for the economy to accelerate, lending really needs to pick up.

  It could also indicate that not all banks have finished cleaning up their balance sheets. Ever since provisions requiring banks to mark their assets to market values were suspended, the assumption has been that banks have been getting rid of bad assets and that the buildup in reserves is due to caution about lending. It may also be that the slow pace of lending and build up in reserves is partly due to the need to put capital against legacy bad assets. The implementation of the Volcker rule, which bans banks from proprietary trading, may mean we will see more of this—and not just from small banks, as it is assumed. Whatever the explanation for weakness in bank credit expansion, this is an indicator worth watching. Sua Sponte.

Bradford C. Bruner for Sua Sponte Wealth Management

 Rising real (inflation-adjusted) interest rates are a key factor driving investment decisions. Businesses want to invest when they expect that the return on investment will exceed the real cost of money. Since the last recession, the pace of business investment has lagged what we would normally see in a recovery, even though real interest rates have been low or even negative. 

 But since last summer, the rise in long-term interest rates combined with falling inflation lifted real rates from negative to positive. In our opinion, rates aren't high enough to inhibit business investment, but the pace of increase should be watched.

 Depending on which inflation measure you choose, real rates are within about 50 basis points of the long-term average. A basis point is one-hundredth of a percentage point. From 2003-2006, when the economy and markets appeared to have found an equilibrium, the average was about 2% using the core Consumer Price Index (which excludes food and energy prices), so there is still some room to run.

 A return to "normal" would probably be in the 2% to 2.5% region since that was the average for years prior to the financial crisis when the economy and markets seemed to reach equilibrium. If that is hit or exceeded early in the year, it would probably be a signal that long-term rates have peaked for the time being, and the curve would flatten. At some point, when Fed policy shifts, short-term rates will need to rise, but that will probably be a 2015 event. Sua Sponte

Bradford C. Bruner for Sua Sponte Wealth Management

 Technical analysis is a methodology for forecasting future movements of price based on past information, most notably price and volume.

 Price is probably the single most important technical tool. When a stock reaches a new high, or endures a dramatic sell-off, the market is reacting to intelligence in the market. Somebody knows something and is willing to take a transactional risk. The current price is the fair market value of that stock, or market, at that particular period in time. Price Trend is the view of price direction. Is the price moving up, down or sideways. A trend in price simply measures the urgency of the current trades. Are buyers being more aggressive at higher prices, signaling a run higher, or are sellers becoming more aggressive at lower prices, signaling a possible correction. Time is key in evaluating price. You can look at up to the minute real time trends, but one should look at a period of time equal to the desired holding period. If you are looking to hold a security for 6 months, look at the current six month trend. Look at trends in blocks. What looks like an uptrend in the short run, could signal a blip up in an increasingly downward trend over the long term.

 Volume is how many units are traded in a period of time. For a confirmation of activity, volume is a critical indicator. We would like to see higher volume as prices rise and lower volume as prices fall. Large volume on falling prices would not be a good thing. See the chart to the right for a depiction of price, trend and volume relationship.

 Our chart shows five trends higher and five trends lower. In this depiction, as price declines, volume rises and as price rises, volume declines. This is typical of a falling (bear) market and not what an investor/trader would want to see in a rising (bull) market.

  At point A, price has risen in the short term to $131.42. The fact that price has risen to $131.42 is the most important, as it helps to define the short-term trend (second most important) which at that moment in time has turned higher, within a longer-term downtrend. The fact that the short-term trend has turned higher is more important than the fact that the move up has been on lower and decreasing volume. Because the move up is on lower and declining volume, you'll want to be cautious. Our Schwab analysts suggest considering using tighter-than-normal stop-loss orders to protect capital and/or profits against the possible resumption of the longer-term downtrend, which in this case is exactly what transpired.

 We at SSWM believe that everything in nature can be depicted in data and when you map that data, trends and patterns develop. These trends can be plotted in graphs. Pattern recognition attempts to predict the future behavior of market participants by identifying patterns of price, trend and volume.

 Are buyers or sellers becoming more anxious and impatient to get in or out? Pattern recognition tools include reversal patterns such as double tops and bottoms, head-and-shoulders tops or bottoms, and continuation patterns such as flags, pennants and wedges.

 The chart above provides an example of one such trend-reversal pattern, a head-and-shoulders bottom. In this example, this stock trends sharply lower, then changes direction, "reversing" its trend from down to up and then advances sharply higher, which is considered to be a bullish signal.

There are two primary trend-following tools:

• A trendline is a sloped line drawn through two or more low points in an uptrend (or high points in a downtrend). 
• Moving averages are simply the average closing price of a stock or index for a certain period of time. The more commonly used moving averages are 20-day for the short-term trend, 50-day for the intermediate-term trend and 200-day for the longer term trend. For example, the 20-day moving average is simply the average closing price for the last 20 days. It "moves" through time because at today's close, today's price is added to the average and the price that is now 21 days old is dropped from the average. The slope of a moving average follows behind the trend of price action, confirming the trend and identifying when a trend changes by changing its slope, following the trend in price.

 These tools can help you to identify and confirm trends in price. However, remember that these are lagging indicators.

Trading-range - Range-bound markets by definition oscillate, or trade up and down between fairly well-defined lows and highs, known as support and resistance levels. Oscillators are the primary tools for these range-bound markets.  Examples of oscillators include stochastics (shown above), the Relative Strength Index and Moving Average Convergence/Divergence (MACD).

Once a range-bound market has been identified, oscillators can help identify possible turning points as the price "bounces off of" the lower end of the range, called a "support" level, or as the price "bounces off of" the higher end of the range, called a "resistance" level.

In the above example, we see examples of trendlines, 50-day (red) and 200-day (blue) moving averages and the stochastic oscillator:

• Notice that the trendlines are somewhat of a "connect the dots" indicator, drawn by literally connecting the lower highs in a downtrend and the higher lows in an uptrend. 
• Also see that the moving averages, especially the 200-day, lag behind the trend in price and do not change slope until well after price has changed its trend. 
• Finally, notice that in a strong downtrend or uptrend, the stochastic oscillator doesn't oscillate very much.

This illustrates that oscillators generally only add value in a sideways trend, or trading range type of market.

Momentum - How rapidly is the market changing? This is the question that momentum tools seek to answer. Price momentum, or rate of change (ROC), and the oscillators mentioned above, are the primary tools for determining market momentum. The Average Directional Movement Index (ADX) developed by Welles Wilder is another tool that seeks to measure how strongly a market is trending and whether its momentum is increasing or falling.

By recognizing when market momentum has been strong and is beginning to weaken, traders may gain an early warning that the trend may be weakening. We emphasize "may" because the trend does not actually change until it actually does.

Specialty - Consider specialty tools to be those that do not fit into any other category and may provide a different type of insight into the overall technical picture. One notable specialty tool would be "Bollinger Bands®," which may help users identify extreme short-term price moves. Other specialty tools might include Fibonacci percent retracements and Elliott Wave Theory.

Appreciate Charles Schwab working with us, who's working with you? Sua Sponte.

Bradford C. Bruner for Sua Sponte Wealth Management

 2013 looks like it will be a record year for markets. The S&P appears to be on track for a 30% gain (click chart below). The best year since 1997. The momentum has continued, in the final weeks of the year, based on improved numbers on GDP. It was as if, overnight, the financial markets realized that things may indeed be improving. We were surprised by the revision to Q3 GDP from 2% to 3.6%. A month ago we would have thought the growth would have been 1% at best.

 It just goes to show how fickle this economy is. The adjustment to GDP pushed the 10-year Treasury over the psychological 3% mark (click chart below). Jobless claims fell, personal spending and durable goods orders were up. While the world revels in New Year's festivities, keep an eye on the final portion of December. Consumer confidence (Tuesday) will be a key gauge of how we feel about Q4 and an indicator of optimism going into 2014. ISM manufacturing data and weekly jobless claims (Thursday) will be key points to watch. Watch the ISM at around 57, same as it was in November (click chart below). This will be a strong signal of economic expansion. Bernanke will be in front of the American Educational Association, in Philadelphia, where he should make himself available to answer questions from economists. We do feel the Fed has done as much as it can, we did avoid the possibility of a 1930s style economic fiasco that could have made the worldwide economic meltdown much worse. It all depends on fiscal policy now. Corporations are expecting more cooperation from the Government before their confidence improves (click chart below).

 The market has had a mind of its own. When the Fed announced that it was going to ease on its bond buying the market continued its historic rise. As we continue to pull the life support tubes off our patient, we will see if it has legs of its own. Expect some wild swings that will come with additional anticipated easing. It's critical that we see a transition from stabilization to sustainable recovery.

 It is still a very fragile recovery. The Fed appears ready to plug us back in at any time. Corporations will continue to exploit human capital and push productivity to the maximum. If the dam breaks, and companies start to hire out of necessity, we hope that it becomes more of an employee's market with companies battling for quality labor putting those hoards of cash to use. Hiring, stable to increased wages, consumer confidence (click chart below), spending, this is what will encourage the growth engine. Fear and greed will be the brakes.

 The SSWM crystal ball shows:

  Unemployment improving to finish at 6.5%. Mostly a psychological benchmark that is more a result of the number leveling out by itself. Long term unemployment, wage freezes, and participation will continue to plague us. Still much pain in the job market. Our concern is that the participation rate and job quality will not see a significant improvement. Companies will continue with technological improvements and cost cutting efforts well into the second half of 2014.

 GDP will be just under 3%. Lower oil prices, increased net worth (wealth effect) and an improving international economy will all contribute to more sustainable growth. The Fed has done their part and it will be up to fiscal policy now. We just hope the Government doesn't screw it up. The key will be our ability to judge the economy based on core indicators and less on 'puppet hands'.

 Housing will continue to slug its way forward (click chart below). Expect the 30-year rate to rise to 5%. Prices and sales will continue to rise. We do see the divide between those who should take advantage of continued low rates, and those who can, to widen because of tighter credit restrictions and prequalification requirements. Starts and sales will be at the higher end of the market.

 Inflation will be 1.9% driven by lower oil and energy prices.

 S&P will finish 2014 at just over 2,000, an increase of 9%. Expect multiple corrections, along the way, that will erode by 7%, but still a strong finish. Corporations will need to prove that they are worth the current 20 PE multiple. SSWM is more comfortable at 12 to 14. 20 presents a fair amount of risk for correction if earnings disappoint. Quarterly earnings, and guidance, will be met with much anxiety and trepidation.

 Expect at least one catastrophic event in 2014 that will rock the markets. Flash crash/technological espionage, terrorist event, or political stalemate is sure to occur. Timing is unknown. We will recover and forge ahead.

What is your prediction? Sua Sponte.

Bradford C. Bruner for Sua Sponte Wealth Management

 US investors have missed the post economic meltdown bull market. 50% of investors are holding their investments in no, or low, return cash type investments. It is a delicate situation. Many, too late to get on the train, remain in the station in an effort to avoid a potential catastrophic correction similar to 2008. The majority of investors say the will remain in cash for the next 12 months. We anticipate this bull market has at least 3 more years, if not 5, to run.  If inflation increases and/or interest rates rise, you could be going backwards. Why are investors so skeptical?

 Consumers are scared. Incomes are flat or down. Those that do have jobs, are not feeling secure. Raises are nonexistent. Those that are unemployed are losing faith that sustainable employment is available. The graphic to the right would suggest that 16% of take home pay is invested. The SSWM, informal survey , indicates that savings is not an option for most individuals. Income is equal to expenses and 401(K) salary deductions have been taken to 0% participation, even when there is an employee match. Folks need all the income they can muster, and any extra is not going into equity investments. Appears we are keeping what we have and putting it into the mattress.

 With no confidence in the economy, our legislators, the financial markets, and employers, investors are not feeling good about their futures. 50% of investors are not confident that they are making the right investing decisions. These are challenging times. Individuals we talk to appear as if they are adrift at sea with no course of action and no way to get back to port. When there is so much day to day anxiety in life it is difficult to calm down, take a step back and re-engage your investment professional. Better to do something, than to do nothing.

 The demographic range of Americans in the 55-to-64 age range have accumulated retirement assets of only $120,000. That small amount will produce about $400 to $500 of income per month.

 It's not too late for those over 50. The key, limit consumption. If you can't find extra cash to save or invest, reduce the amount of expenses and invest the balance.

Some other ideas:

Don't plan for retirement, plan to keep working.

• add to your savings, less time to depend on savings.

• burnt out - plan now for a middle of the road second career. One more rewarding and enjoyable.
  

• delay your retirement and social security will be worth more.

Consider staying in equities longer

• If you push out your retirement calendar, consider staying in equities longer.
• Interest rates appear to be low for the foreseeable future, could be risky long term.
  

• In the post–World War II era, when interest rates rose after a long period of artificially low rates, bondholders lost money.
• Forecast to live to about 85, hold of going into bonds until you are about 70, enter gradually.

Carefully time the equity in your house

• Sell your house and downsize, you'll be able to use the proceeds to add to your retirement savings, tax rules permitting.

• Enables reduction of monthly expenses.
  
• Emotion aside, the sooner you can practically make the move, the better off you will be.

 How are you feeling? Share your strategy. Sua Sponte.

Bradford C. Bruner for Sua Sponte Wealth Management

    How nice would it be to have the peace of mind that would come with 100% ownership of your home? We are not talking about ownership where the bank still has your mortgage, but true ownership. No more monthly budget line item for House Payment. Let's take a look at the Pros and Cons of paying off your loan early.

Pros:
Income Stream - does it make more sense for you to have that additional income stream and spend it on other expense requirements. What is the benefit for you eliminating the payment? Or, just cut that particulate expense item and save or invest that additional income. It is also a possibility that a highly stressful job could be eliminated for a lower income, pleasurable pursuit, position that provides greater satisfaction and enjoyment. What percentage of your current salary is necessary to make the house payment.

Interest Rate Risk - if you take the money that you would have spent on paying your mortgage, and invest it elsewhere, can you make the same amount or greater. If your mortgage is 4.5%, is the return on the investment you make with the money you no longer pay for that expense, a better investment than the one you are paying off. What are the inherent risks of fluctuations for that alternative investment. So, if you pay off the mortgage, you essentially have a return of 4.5%.

Interest Savings - interest payments on a mortgage can equate to tens of thousands of dollars. Paying off your mortgage will free up the money that would have gone to pay the interest alone. You are freeing up future cash flows to be spent elsewhere. Lost will be the mortgage interest tax deduction, but the after-tax cost savings of the debt may still be substantial. Also, the closer you get to paying of the debt, more of the payment goes to principal and the tax benefits diminish over time.

Peace of Mind - do it and get it over with. No more worries about this portion of your debt load. We suggest you use funds from taxable accounts. Avoid using funds from IRAs or 401Ks. These will be taxable as income in the year they are withdrawn reducing any savings rate you may have realized on interest. Using taxable account withdrawals could lower your total tax bill assuming that you do not have to pay significant capital gains related to the assets you utilized.

Cons:
Underfunded Retirement - focus on funding your retirement first. If you have not contributed the maximum allowable, do that first. Is your retirement fully funded.

Analyze Your Debt Structure - if you do have the extra cash, focus on the debt structure of the other obligations you have. Pay off the higher interest rates first. Concentrate your efforts on the non-deductible debt such as credit-card debt first.

Available Reserves - if you do pay of your mortgage, your strategy must include analysis of required cash reserves. Ensure you have accounted for money needed to fund emergencies, general expenses and all discretionary spending. You will still be required to pay property taxes, insurance and those unknown monthly maintenance items. Make sure you have adequate cash reserves in your strategy.

Opportunity Costs - While paying off the mortgage is risk-free in the sense that there's no volatility in this investment, you do risk losing out on potential gains you might have made by investing the money elsewhere. Compare the mortgage interest rate to the after-tax rate of return on an investment such as a high-quality, tax-free municipal bond with a similar term to determine whether investing the funds makes better sense than paying off the mortgage.

Diversification of Investments - If you do pay off your home, that could represent a substantial amount of your total portfolio in one area.  One of the best ways to try and increase opportunities for growth is to hold a variety of investments in different asset classes. Tying up significant funds in your home equity reduces those opportunities—and even if your house appreciates in value, you would have to either sell it or refinance it to tap into that equity.

Contemplating a Possible Move - If you are thinking about moving, you might as well carry the existing mortgage until then.

Other Options and Considerations - If your mortgage has no prepayment penalty, an alternative to paying it off entirely before you retire is paying down the principal. You can do this by making an extra principal payment each month or by sending in a partial lump sum. Interest is a killer, this approach can save a significant amount of interest and pay off the loan much quicker while preserving liquidity and diversification. Are you getting the best rate available? Keep an eye on interest rates, refinancing with a lower interest rate may work nicely into your strategy.

The strategy that is best for you will depend on your goals and financial plan, preferences and your individual circumstances. Do watch, and beware of developments in the economy. Keep an eye on interest rates monthly, if not daily. What would you do, if you could? Sua Sponte.

Bradford C. Bruner for Sua Sponte Wealth Management