Archive for the ‘In The Media’ Category

Dennis K. O’Brien comments on the latest study from EBRI on the limited level of savings Americans have for retirement.  The study shows Americans continue to spend and are not saving enough for retirement. 

http://www.nj.com/news/index.ssf/2010/03/study_shows_americans_with_lit.html

Dennis K. O’Brien named 2009 Best Business Leader by Irish Voice Newspaper

Dennis K. O’Brien, President of Coastal Financial Advisors, Inc. was named Best Business Leader of 2009 by the Irish Voice Newspaper.  “Regardless of doom or gloom, our 31 leaders for 2009 found ways to survive and prosper,” said Niall O’Dowd, president and publisher of the Irish Voice.

It’s always a pleasure to single out the Irish who bring honor to themselves, their families and their heritage by their success in the U.S.  Their triumphs stretch across all different fields – everything from the traditional Irish areas of hospitality and construction to financial advising, medical and corporate. 

Profiles of the award recipients were reported in the December 16^th edition of the Irish Voice. 

An awards ceremony and cocktail reception was held at the Irish American Historical Society at 991 Fifth Ave New York on December 16, 2009 to honor our nominees. 

 About Coastal Financial Advisors, Inc.

Coastal Financial Advisors, Inc. is a fee-only financial advisory firm practicing comprehensive financial advising.  Services provided include retirement plan advising on 401(k) for business.  Individual services range from investment management and tax prep to planning for education and retirement.

About Irish Voice

The Irish Voice newspaper, Irish America Magazine and Irishcentral.com are publications and communications for the Irish community in the United States.  Niall O’Dowd is the founder and president of the communications company.

Well today it was announced that Social Security will not provide any increases for the next two years.  This coupled with increases in Medicare means that seniors will have to dig deeper for savings to met their bills while for others, they will look for ways to decrease monthly bills.  We always have promoted saving while your younger.  Our retirement plans such as 401(k) and 403(b) that we provide have the best investments and lowest costs.  In that regards, we were contacted by the Star Ledger to comment on the needs of those on Social Security and how to address the frozen increases. 

The link to the Star Ledger page is:

http://www.nj.com/business/index.ssf/2009/08/surviving_shrinking_social_sec.html

This article by Leslie Kwoh provides suggestions on cutting back your bills.

Dennis O’Brien explains the benefits of a good financial advisor in challenging economic and financial times, and how it’s important to look at individual circumstances when putting together a financial program.

Article can be found on-line at www.njsavvyliving.com.  June/July 2009 issue.

Dennis O’Brien comments on the outlook for the financial markets and economy for the second half of 2009 in a roundup story on the market’s performance.

http://www.app.com/article/20090705/BUSINESS/907050324/1003/Looking%20for%20direction?GID=FTtGlTNQ5sehB1LL8l417tSRECF+9uW49Est1xyMhmY%3D

Dennis O’Brien discusses the risk of investing in target-date funds in a story examining the hearings being conducted by the Securities and Exchange Commission and the Department of Labor on these investment vehicles.

 What’s Up With Target-Date Funds?

By PAUL KATZEFF, INVESTOR’S BUSINESS DAILY

Posted 06/23/2009 05:10 PM ET

 The latest financial scapegoat? Target-date funds. At a joint hearing by the Securities and Exchange Commission and Department of Labor last week, critics beat up on the increasingly popular mutual funds.

 The catalyst was that most target-date funds — like much of the fund industry — lost ground last year.  The problem was that some people were shocked by that.

 “Some people think these funds are risk-free,” said Dennis O’Brien, president of Coastal Financial Advisers, of Farmingdale, N.J. “They don’t understand that these are investments. They can lose ground, especially during short periods.”

 In the worst-case scenario, the SEC and DOL could restrict how target-date funds invest. The DOL will take public comments until July 18. After that it will indicate what action, if any, it plans.

 “There is no denying that 2008 was the second-worst market ever for equities,” Francis Kinniry, a principal in Vanguard’s Investment Strategy Group, told IBD before the hearings. “Everyone should take a deep break and use a much longer lens than one year. The market has rebounded (about 34% off its March 6 intraday) low. That should influence the eventual outcome here.”

 A bigger problem for target-date funds is how fund families market them, said O’Brien, who is a financial adviser to individual clients and consultant who helps corporate clients set up and run 401(k) plans.

 “Not enough fund groups clearly explain how these funds are run and how they differ from each other,” O’Brien said. “Not enough of them explain their risks or their costs.”

 The stakes are rising. Target-date funds have grown a lot. As of May 31 they held $181.8 billion in assets. That was 3.06% of all fund assets and up from $152.8 billion on Dec. 31. It was also well up from $7.2 billion at the end of 1999, or 0.16% percent of all fund assets.

 The funds have become a staple of 401(k) plans, especially since 2007. Late that year the DOL gave incentives to plans that use them as default investment options for workers who are automatically enrolled.

 Proliferating Portfolios

Target date funds are in more than 33% of all 401(k) plans, says the Profit Sharing/401(k) Council of America. That’s up from 25% in 2005.  The funds generally invest in other mutual funds. A parent fund’s ratio of bonds and cash to stock typically grows as the target date nears.  That’s meant to better preserve the fund’s principal. The target date is usually near a shareholder’s intended retirement. Target-date funds overall averaged a 32.96% loss in 2008, according to Morningstar. The S&P 500 lost 37%. U.S. diversified stock funds averaged a nearly 39% loss.

 As might be expected, target-date funds with the longest investment horizons generally did worse. Last year funds with a target date of 2050 or later averaged a 39% loss. The $10 million JPMorgan SmartRetirement 2050 fell 33.53%, marking the best of the long-range funds.

 Funds with target dates from 2000 through 2010 fared best, averaging a setback of 22.46%.

 Among funds with the shortest views, $32 million DWS Target 2010 took top performance honors with a 3.61% loss. The $20 million Oppenheimer Transition 2010 was the cellar dweller with a 41.84% plunge.

 Too many shareholders do not understand how target-date funds differ, O’Brien says. First, there are two broad varieties.

 In addition to the type known as target-date funds, there are lifecycle funds. These portfolios do not shift their asset mix over time.  Instead, as he ages a shareholder is supposed to hop from one with an aggressive investment strategy — usually with more stocks — to one with a moderate strategy. As he nears retirement, he shifts to one with a conservative tack, with more bonds and cash.

 Different Approach

Second, many shareholders do not realize that funds with the same target date or in the same lifecycle category often invest differently.

 They can have different ratios of stocks, bonds and cash. Drilling down, they can also have different types of stocks and bonds.

 “A fund with all blue chips tends to perform differently from one with a mix of large caps, small caps and emerging markets,” O’Brien said.

 Also, only some funds stop making strategic moves when they reach their target date. Some shareholders cash out. Others want ongoing growth or income.

 “Some fund families do a better job than others of explaining things,” O’Brien said. “Shareholders can look up information at fund Web sites. They can also check through their 401(k) plans.”

 © 2009 Investor’s Business Daily, Inc. All rights reserved. Investor’s Business Daily, IBD and CAN SLIM and their corresponding logos are registered trademarks of Data Analysis Inc.

Dennis O’Brien offers career management tips and advice in this article that examines the importance of time management and delegating.

http://news.efinancialcareers.com/newsandviews_item/newsItemId-19412

Dennis O’Brien provides perspective on the challenges facing family foundations in a tough economy.

http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20090510/REG/305109989/1009/TOC&fromRSS=true&template=printart

Dennis O’Brien offers career management tips and advice in this article that examines what individuals can do to help stay ahead in today’s tough job environment.

http://news.efinancialcareers.com/newsandviews_item/newsItemId-18544

The following article by Lynn O’Shaughnessy was published in Bottom Line Secrets, a newsletter with an audience of 600,000 or so. 

Munis Get Scary

In recent months, many advisors have pointed to tax-free municipal bonds — issued by state and local governments and agencies — not only for their favorable tax status, but because their yields have been much higher than those of Treasury securities. But while today’s muni bond yields are tantalizing, financial adviser Dennis O’Brien believes that the bonds have now become too risky. It is abundantly clear that the national and global fiscal crises are going to be deep and protracted — and muni bond issuers around the country are sinking deeply into debt. California, with its catastrophic $60 billion deficit, still grabs most of the headlines, but, in fact, at least 46 states are facing budget shortfalls this year and next year.

Instead of munis, says O’Brien, now is the time to look to Treasuries once again for their low “credit risk” — the risk that the issuer will default on payments. But what about Treasuries’ low yields? A smart way to protect yourself is to establish a “ladder” of individual US Treasuries, from short-term to long-term, that will mature in staggered years. This way, you will not have much of your money locked into low yields for long. If you don’t want to bother with individual bonds, another alternative to munis is to spread your fixed-income assets among these three low-cost exchange-traded funds (ETFs)…

iShares Barclays 3-7 Treasury Bond (IEI). This intermediate-term bond fund invests almost exclusively in Treasuries. Recent price: $113.39.

iShares Barclays TIPS Bond (TIP). This ETF buys Treasury Inflation Protected Securities, which can shelter a portfolio against the ravages of inflation. Recent price: $97.47.

iShares Barclays Aggregate Bond (AGG). About 80% of the portfolio is made up of the highest-rated (AAA) corporate debt and US government and agency bonds. Recent price: $100.15.

Bottom Line interviewed Dennis O’Brien, president of Coastal Financial Advisors, a fee-only investment advisory firm in Farmingdale, New Jersey. His firm manages money for individuals, corporate retirement plans and non-profit organizations. www.coastalfa.com.

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