Kaizen Wealth Management

Global Consumption Share – % of global consumer spending

Kaizen Wealth Managment — Tue, 09 Mar 2010 15:38:42 +0000

The last few weeks of less than flattering economic data are a reminder that the economy has a long way to go in this recovery.

A great deal of focus has been placed on the U.S. consumer, which amounts to roughly 70% of GDP over the last 50 years, and approximately 48% of the first year past recoveries. But now more than ever, the U.S. consumer is shouldering less of a burden.

Emerging markets share of global consumption has eclipsed that of the U.S. consumer.

Source: J.P.Morgan Asset Management

New Year, New Tax Rules for Retirement Plans

Kaizen Wealth Managment — Fri, 05 Mar 2010 16:41:49 +0000

A nice reference guide that covers 2010 contribution limits for 401(k)s, 529 college savings plans and other qualified plans, required minimum distribution information and retirement plan rollover rules.

Source: iShares

New Client Articles Available

Kaizen Wealth Managment — Fri, 26 Feb 2010 20:14:17 +0000

We have added five new Client Articles here.

Stretching and IRA
Roth IRA vs. Defined Contribution Plans
IRA Dos and Don’ts
Find the Right IRA in Three Easy Steps
The Best Investments for Your IRA

Email info@kaizenwm.com or contact us for a PDF version of any of the above articles.

Foreign Intrigue

Kaizen Wealth Managment — Wed, 17 Feb 2010 23:33:52 +0000

U.S. Stocks with Heavy Foreign Exposure: Company Listed followed by its % of Sales Outside North America

Colgate-Palmolive 81
Avon Products 77
Coca-Cola 74
Autodesk 72
Aflac 72
Merck & Co. 70
Waters 70
Caterpillar 66
Nike 66
3M 64
Pfizer 58
Proctor & Gamble 57

You may be surprised by how big your foreign exposure is, or how small your domestic exposure is, when looking at your portfolio of individual securities, or what securities your mutual funds may hold.

Ibbotson Quarterly Market and Investment Strategy Commentary

Kaizen Wealth Managment — Tue, 09 Feb 2010 14:22:46 +0000

Ibbotson’s Quarterly Market and Investment Strategy Commentary is now available for our clients. For a PDF of this report, please email us at info@kaizenwm.com.

2009 Net Fund Flows

Kaizen Wealth Managment — Mon, 08 Feb 2010 22:33:04 +0000

Despite and impressive run in equities, $375 billion moved into bond funds, and $9 billion exited equity funds. Our concern is that investor behavior is once again the culprit and this inflow/outflow occurred after the equity pullback early in 2009 – causing this.

Chart: J.P.Morgan Asset Management

Market Commentary Q409

Kaizen Wealth Managment — Fri, 29 Jan 2010 19:31:57 +0000

Despite the wild ride, investors should toast the markets in 2009

Investors received welcome relief from the markets rally. Many areas of the market that fared poorly in 2008 bounced back in 2009. U.S. equities turned in two of their biggest quarterly returns in over a decade, while corporate bonds had one of their best years ever. As investors moved up the risk curve, Treasuries suffered one of their worst years in the past two decades. Also, sovereign creditworthiness remains in the spotlight, as Dubai struggles and Greece received a credit downgrade. Commodity markets rebounded as well, as investors bet on an economic recovery.

email us at info@kaizenwm.com for a complete PDF copy.

Proposal to Make Educational Savings Benefits Permanent

Kaizen Wealth Managment — Wed, 23 Dec 2009 17:38:00 +0000

Senate Finance Ranking Member Chuck Grassley (R-IA) introduced a bill that would make permanent a number of education-related tax relief measures. Included in the measure were provisions to permanently include the costs of computer technology and Internet access as a qualified higher education expense (now scheduled to expire the end of 2010) and to permit up to four investment changes per year in 529 accounts. You are currently allowed only two changes in 2009 and is slated to revert back to one after this year. The bill also hopes to make amendments to the Coverdell educational savings account.

Opportunities in International Investing

Kaizen Wealth Managment — Mon, 21 Dec 2009 16:40:25 +0000

More and more, we are finding it easier to justify our higher allocations to international equities. Roughly 55% of the investable equity universe, by market cap, is outside of the U.S. Also, world GDP has outpaced the U.S. GDP every year this decade; moreover, emerging markets have seen average GDP growth since 2000 of 5.9% – compared to 1.8% for the developed economies. International investing may also be a hedge against a weaker domestic currency.

source: J.P.Morgan Asset Management

Bubbles…Is Gold next?

Kaizen Wealth Managment — Tue, 08 Dec 2009 16:25:12 +0000

The WSJ recently published a chart that we thought was worth examining, and then noting here. The chart draws an excellent comparison between the recent surge in gold prices to previous bubbles of the last decade, giving us a cautionary perspective for those pouring money into gold today: