Fun Facts Newsletter | November 2014

Berno Financial Management. The name says it all. Take the Berno out of it, and financial management is what our team is available to do for you. Any time you have any personal financial question or any personal financial issue, we want to hear from you. If we can’t help you, chances are we know someone who can. Okay, you say you already knew this, so why are we telling you now? Much to our surprise, we recently had a long time client ask if we could help with a basic financial planning question that wasn’t investment related. The answer was a clear and resounding yes. So, contact us any time you have a question about:

• Retirement Projection • College Projection • Social Security decisions • Medicare decisions • Exercising stock options • Employer benefit plans • Employer retirement choices • Estate plan documents • Minimizing income taxes • Expense tracking programs • Charitable gifting • Health Savings Accounts • Disability, life, long-term care, home/auto/liability insurance • Identity Theft protection • Beneficiary designations • Buying/Selling a home • Refinancing your home • Buying a car • Roth IRA funding for children/grandchildren • College funding for children/grandchildren • Attorney, accountant, insurance agent recommendations

Oops, and I forgot to mention developing an investment strategy and managing your investments. I’m sure I forgot a few other things. Most importantly, helping you achieve personal financial peace of mind!

Speaking of investments, the broadly diversified, multi-asset class investing strategy that we recommend requires real and genuine long-term patience. And by that, I mean years, not nano-seconds in our high tech world. Foreign large cap stocks have provided returns plus or minus 4% to 8% compared to their US counterparts since 1999, but since 2011 there have been 3 years of under-performance, including 2014, in the 11% to 14% range. Patience will be required until this cyclical pattern reverses itself. Same for commodities, which are very volatile and plus or minus US large cap stocks almost every year since 1999, but have had 5 years in a row of negative returns. Sell high, buy low, not the reverse! Investing is a contrarian process that constantly challenges our minds!

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