RETIREMENT FUND MANAGER PONDERS YEAR-END OUTLOOK Monday, November 9, 2015

Nathan Bachrach manages close to $700 million of retirement funds in a balanced portfolio for 1750 families. He thinks a hike in interest rates is way overdue but the markets will take it in stride. But because rates and bond prices move adversely, unrealized capital gains in his bond holdings will fall when rates reverse. And in today’s monetary environment, he can’t assume traditional asset allocation adjustments will work. What to do? Clients ask, What’s going to happen to Social Security? As long as Uncle Sam has taxing power, Social Security can’t go broke. It is a cash flow problem to the extent more is paid out than paid in and Nathan comments on the solutions commonly discussed. The Social Security “file and suspend loophole” is now being phased out, but it confuses a lot of people and he clarifies it. Prepare for the holidays like you do for retirement. Stick to a budget, start early, never pay full price, use online shopping, avoid “little murderers” (wasted nickels and dimes). Oh, and get yourself a “Red Laser.” That’s an app for your iPhone that permits you to check product ratings and prices before you cash out. On gift cards: “Nothing says ‘I love you’ better than a crisp $20 bill.”