Welcome to the Mid-year

Economic Outlook

Your Host: CHRISTOPHER CALANDRA

CERTIFIED FINANCIAL PLANNER™

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Tonight’s Agenda Economic Review Strategies to Consider Suggestions & Ideas Questions & Answers

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Five Key Areas of Financial Planning

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Protection Retirement Plan Investments Tax Planning Estate Planning

2016 has been a confusing year for investors

4www.bigcharts.com

What is contributing to this ?

Equity investors

dislike uncertainty!

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Several major issues that are creating uncertainty & volatility in 2016 include:

U.S. Interest Rates Corporate Earnings Oil Prices Foreign Interest Rates China The Upcoming Presidential

Election7

The Federal Open Market Committee, which determines interest rates is

headed by Federal Reserve

Chairwoman Janet Yellen. On May 27th

at an appearance at Harvard University,

she said an interest-rate rise

may be coming in a matter of “months.”

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In late 2015, Fed Chairperson Janet Yellen raised rate for the first time in

over 7 years to 0.25 - 0.50%

What is the Federal Funds Rate

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The Federal Funds Rate is the interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution overnight. The Federal Funds Rate is generally only applicable to the most creditworthy institutions when they borrow and lend overnight funds to each other.

Where are interest rates headed and when?

How do interest rates affect bonds ?

How do interest rates affect bonds ?

Source: Principal.com

How have interest rates affected equities ?

What is happening with corporate earnings?

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Corporate Earnings The first quarter of 2016 marked the sixth period in a row of

quarterly declines — the longest period of consecutive drops outside of a recession, according to Goldman Sachs.

Although the tone of quarterly earnings this season was distinctly negative, that doesn’t mean we’re heading into recession.

Analysts are optimistic that earnings will recover to their previous levels throughout 2016 as pressures from energy prices and exchange rates subside.

Corporate earnings need to be monitored.

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Why are Corporate Earnings important

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Historic Oil Prices Oil prices in 2016

returned to 2004 levels

Energy related companies make up over 15% of S&P 500

Many company earnings are impacted by oil prices

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Oil Prices

Oil prices have continued to be volatile in 2016

Oil Prices should be monitored by investors

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Negative Interest RatesMany Central Banks worldwide are currently

offering NEGATIVE rates to investors

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China

China was once forecasted to grow at robust rates

In June of 2016 China’s central bank warned of slower growth forecasts

2016 is a Presidential Election Year

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Are Equities Relatively Inexpensive or Overvalued ?

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U.S. Interest Rates Corporate Earnings Oil Foreign Interest Rates China

Uncertainty can create problems or opportunities!

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Investors Need to Prepare for any Environment!

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Emotions can often play a large role in how people manage their money.

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The Stock Market vs. Your Portfolio

An index, whether S&P 500 or the Dow Jones, isn’t a measure of your portfolio.

It’s what your portfolio is doing, not what “the market” is doing, that is important.

Your portfolio doesn’t always move in lock step with any single market or index.

Indexes cannot be invested in directly, are unmanaged and do not incur management fees, costs and expenses. 27

What Has History Taught Us ?

It’s near impossible to consistently predict market declines or increases.

It’s equally as hard to predict how long a market decline or increase will last.

It’s almost impossible to consistently predict the absolute best time to get in or out of the market!

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Our GOAL is to Monitor the Situation

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What will the future bring?

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What Can You Do?

Re-evaluate your investment goals and objectives

Confirm your investment timelines Short Term Longer Term

Re-evaluate your risk tolerance Conservative… Moderate….Aggressive Make sure your investments match your risk tolerance level

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What Can You Do?

Analyze your true cash flow requirements.

Review your emergency fund needs – keep enough liquid for 6-12 months of living expenses plus planned expenditures.

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What Can We Do Now?

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Meet With You! Confirm your risk tolerance is where it should be for your situation.

Rebalance – Where appropriate

Capital Gains & Loss Tax Harvesting

Review Your Retirement Plans

What Else Can Be Done?

Analyze your sources of income and true cash flow requirements

Review your overall tax planning strategies

Review your emergency fund needs

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Investors need to prepare for any environment!

We review changes

for our clients regularly!

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Investors need to prepare for any environment!

What can you expect from us?

Constant communication More frequent discussions We are constantly reviewing

economic, tax, estate and investment issues for our clients

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Investors need to prepare for any environment!

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Our Role as Your Advisor

We will maintain a non-emotional objective

We will avoid knee-jerk reactions We will assist you in making decisions

that are always in your best interest! - and

WE WILL BE HERE FOR YOU!40

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Portfolio Rebalancing in Today’s Market:Consider More Than a Formula! ELLIOTT WEALTH MANAGEMENT SERVICES, LLC-June 2016

The Four Phases of Retirement-May 2016

Quarterly Economic Update

First Quarter 2016

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Any Questions?

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Securities offered through SagePoint Financial, Inc., member FINRA/SIPC. Advisory services offered through Elliott Wealth Management Services, LLC, a registered investment advisor not affiliated with SagePoint Financial, Inc. Member FINRA/SIPC.

Neither SagePoint Financial nor its representatives provide legal or tax advice. If legal or tax advice or other expert assistance is required, the service of a currently practicing professional should be sought

This information is not intended to be a substitute for specific individualized tax, legal, or

investment planning advice.

Contents Provided by APFA, Inc. © 2016

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