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Presented by: David S. Richmond, CLU, ChFC Chairman & Chief Investment Officer Matthew J. Curfman, CFP® Senior Vice President of Investment Services Presents…

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Presentation on theme: "Presented by: David S. Richmond, CLU, ChFC Chairman & Chief Investment Officer Matthew J. Curfman, CFP® Senior Vice President of Investment Services Presents…"— Presentation transcript:

1 Presented by: David S. Richmond, CLU, ChFC Chairman & Chief Investment Officer Matthew J. Curfman, CFP® Senior Vice President of Investment Services Presents…

2  David Richmond is a licensed Investment Advisor Representative in the states of MI, OH, AZ, CO, MN  Licensed to sell securities, annuities, & insurance  Affiliated with Sammons Securities Co.®, LLC, member FINRA/SIPC & Midland National  Richmond Brothers Financial Management Specialists, Inc. offers securities through Sammons Securities Co.®, LLC, member FINRA/SIPC  Fee-based investment advisory services offered through Sigma Planning Corporation, a registered investment advisor

3  Richmond Brothers offers securities through Sammons Securities Co.®, LLC, member FINRA/SIPC. The broker/dealer for Midland National’s variable products is Sammons Securities Co. Sammons Securities Co. is a registered broker/dealer under the Securities Exchange Act of Sammons Securities Co. is an indirect wholly owned subsidiary of Sammons Enterprises, Inc., of Dallas, Texas, the ultimate parent company of Midland National.

4  This is not intended to be a sales seminar. The purpose of this Webinar is to provide you with general information on current economic happenings and investment strategies  There will be an opportunity to schedule an appointment for an individual consultation at the end of this Webinar which may result in a recommendation of specific financial products that may help you achieve your financial goals  There is no obligation to schedule an appointment or purchase a product

5  2 nd Quarter 2009 Review  Review of Consumer Sentiment & Realities of Recovery  Analyzing the Recovery Potential of a Stock or Fund  Q & A Session

6 Sources: FebMarAprilMayJune -20% 0% 20% 40% DOW NASDAQ S&P Index Comparison Please note: You may not invest directly in an index. As of 06/19/2009

7 Seasonally Adjusted Unemployment Rate Source: JAN FEB MAR APR MAY

8 Sources: Federal Reserve Board Month/Day Jan7.25%3.25% 1-Feb6.00%3.25% 1-Mar6.00%3.25% 1-Apr5.25%3.25% 1-May5.00%3.25% 1-Jun5.00%3.25% 1-Jul5.00% 1-Aug5.00% 1-Sep5.00% 1-Oct5.00% 1-Nov4.00% 1-Dec4.00% Prime Rate June 2009 PERCENT As of 06/18/2009

9 Source: US Dollar/Canadian Dollar3 month chart As of 6/19/09US Dollar has weakened this quarter

10 Sources: cator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined cator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined Jan $36/barrel June 09

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12 Remember the days of getting a toaster with a new bank? Source: mortgagenewsclips.com Source: http ://investment-blog.net/the-list-of-total-2008-and-2009-bank-failures/

13 Source: LIMRA Consumer Surveys March 2008 October 2008 January 2009

14 Consumer Predictions for a Return to Economic Stability Source: LIMRA Consumer Surveys

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16 Possible Goals for Retirement  Create a cash flow to help supplement income  Protect principal as much as possible while providing cash flow needed for retirement  Provide some growth to help offset inflation

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18 Source: CDC: Health, United States, 2006 As people age, their life expectancy actually increases

19 -Total losses collectively in 401(k)s and IRAs: $2.0 trillion - $1.9 trillion lost in traditional defined benefit plans - $3.6 trillion in non-pension accounts Sources: Employee Benefit Research Institute calculations, 2008 Fidelity Investments & 2009 Metlife Survey As of 12/31/08

20 - The average 401(k) participant lost 27% of their account value (or $19,000) Sources: Employee Benefit Research Institute calculations, 2008 Fidelity Investments & 2009 Metlife Survey As of 12/31/08

21 % Loss YEAR Source: Based on 2009 Fidelity Survey results that an avg. 401(k) plan lost 27% or $19,000 Year 7 Year 4

22 YEAR 50% Loss Year 8 Year 15

23  1. What is the underlying investment (if it is a fund) or What is the underlying business (if it is a stock)?  2. What has been the long term trading pattern of the investment?  Has something materially changed to alter or create a new normal? i.e. What are the 3, 5, & 10 year trading ranges of the investment?  3. Is the investment recovering = or > on the good market days and = or < the markets on the bad days?  In other words, when the markets react, am I going to get my fair share? This information should not be construed as a recommendation to purchase or sell any particular investment or class of investments. The information provided in this example is for illustrative purposes only.

24 Summary  The Fund seeks to provide high current income consistent with capital preservation by investing primarily in a portfolio of preferred securities and debt securities, including convertible debt securities and convertible preferred securities.  Invests at least 80% of its net assets in preferred securities; up to 20% of its net assets in debt securities, including convertible debt securities and convertible preferred securities, and 100% of its total assets in securities that, at the time of investment, are investment-grade quality (BBB/Baa or better), which may include up to 10% in securities that are rated investment grade by at least one statistical rating organization and lower by another.  The Fund is also authorized to invest in interest rate swap transactions and futures contracts. The Fund’s investment advisor is Nuveen Asset Management. Source: This information should not be construed as a recommendation to purchase or sell any particular investment or class of investments. The information provided in this example is for illustrative purposes only.

25  The fund owns primarily preferred stocks  70% of all preferred stocks are issued by financial firms and that means this fund will have exposure to the big banks  When looking at the allocation of the fund as of X it shows that 25% of the fund is commercial banks and another 21% is insurance companies. This information should not be construed as a recommendation to purchase or sell any particular investment or class of investments. The information provided in this example is for illustrative purposes only.

26 As of 04/30/2009 Total may not add up to 100% due to rounding. Source: This information should not be construed as a recommendation to purchase or sell any particular investment or class of investments. The information provided in this example is for illustrative purposes only.

27 As of 04/30/2009 Industry% Portfolio Commercial Banks25.38% Insurance21.99% Real Estate Investment Trust14.31% Electric Utilities8.30% Media6.77% Arguments: BAD -Avoid banks due to government involvement -Banks are risky (growth has been hurt in the economic crisis) GOOD -Most major banks have been stress tested and are viable -Underlying preferred stocks should move closer to par value as bankruptcy threat diminishes Source: This information should not be construed as a recommendation to purchase or sell any particular investment or class of investments. The information provided in this example is for illustrative purposes only.

28 Source: ‘04‘05‘06‘07’08’09 $0 $5 $10 $15 $20 This information should not be construed as a recommendation to purchase or sell any particular investment or class of investments. The information provided in this example is for illustrative purposes only.

29 Source: 0 ’09’08‘07‘06‘05‘04‘03‘ This information should not be construed as a recommendation to purchase or sell any particular investment or class of investments. The information provided in this example is for illustrative purposes only.

30 Daily Comparisons: June 17, 2009June 17, 2009JPS up 0.34%, S&P 500 down 0.14% June 2, 2009June 2, 2009JPS down 1.35%, S&P 500 up 0.20% Longer-Term Comparisons: Mar 9 – June 19, 2009 Mar 9 – June 19, 2009 S&P up 34.49%; JPS up % Please note: You may not invest directly in an index. Source: This information should not be construed as a recommendation to purchase or sell any particular investment or class of investments. The information provided in this example is for illustrative purposes only.

31  Do I like the industry or sector that it is in and why?  What is the long-term trading pattern and what will be the catalyst to move the holding back to that trading pattern?  Am I getting my fair share as the recovery unfolds? Answering these questions will tell you whether or not a particular investment is something that you should hold. This information should not be construed as a recommendation to purchase or sell any particular investment or class of investments. The information provided in this example is for illustrative purposes only.

32  Analyzing each holding in your portfolio should be done on a regular basis (preferably weekly)  Decisions must be made on whether to hold, add to, or sell This information should not be construed as a recommendation to purchase or sell any particular investment or class of investments. The information provided in this example is for illustrative purposes only.

33 We welcome your questions at this time REMINDER:  Raise hand (click on yellow hand icon to raise/lower hand) to be un-muted and ask question through phone or computer microphone  Or, type in a question in the Questions pane and click send to submit it to Richmond Brothers

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