Investment advisory services offered through Sharma Associates, Inc.
Securities offered through Resource Horizon Group, L.L.C., Member FINRA,SIPC
1350 Church Street Ext. NE3rd. Floor, Marrietta, GA Phone: 770-319-1970
Sharma Associates, Inc. and Resource Horizons Group, L.L.C. are not affiliated.

All indications are that we are in the middle of sustained recovery in US and risk of double dip recession appears to be very low. In the last quarter (2Q-2010) S&P 500 index lost around 13% and Dow-30 was down by 11%. But from last years low of March 9 2009 through April 23rd 2010, S&P 500 had gained around 80% and for the same period Dow had gone up by over 70%. After such a significant increases in a short period of time a correction of 15 to 25 percent is expected.

No one really knows what is going to happen next year or during the next 5, 10 years – Truth is we just don't know how to predict the future. All the assumptions about the planning process, such as savings and investing for retirement, retirement lifestyle, and even the life span are based on nothing more than calculated guesses. In fact all we are trying to find is a delicate balance between planning for the future and enjoying today. To enjoy life and money it is important to integrate money goals with personal objectives.

While traditional financial plans may not be all that accurate, but the process of planning is critical to overcome the emotion that overtakes the best of us, particularly when we're talking about our hard-earned dollars. That is the reason we all need to plan and need to have a financial planner/advisor. Financial Planning is more about course correction, than the plan. It is about making the small corrections along the way to avoid that urge to do something crazy. Since we do not know what is going to happen in future, but we can certainly deal with that by taking corrective actions along the way. Should you need more information, please let me know.

Retirement Income Planning:

It is important to keep in mind that as life expectancy increases, more and more retirees will live into their late 80s and beyond. Future market performance is uncertain. Poor market performance can dramatically increase longevity risk associated with increasing life expectancy. Certainty of income is important for the peace of mind especially during retirement. Here are some of options worth considering for retirement income planning.

Variable Annuity:
For financial peace of mind, at least 25% of retirement assets (401K and IRAs) need to be in investment vehicle that offer guaranteed income for life with upside participation and downside risk protection. There are many insurance companies offering these products. It is very important to choose the right product (variable annuity) meets your financial objective. This will also provide a freedom to invest the rest of the money more freely.

Dividend Paying ETFs or Bonds:
The case for dividend investing is simple: upside potential with downside protection.

Alternative Investments - Commercial Real Estate Trusts (REITs) & Equipment Leasing:
Commercial REITs offer a unique opportunity of for current income (7%) and potential for capital appreciation. Essential Business Equipment Leasing offering 8% current income. For additional information, please call or email me.

Based on your risk tolerance and time horizon, one should think in ten years intervals and invest accordingly. Consider having three investment portfolios or buckets:
Short-term funds: For current and near term income needs of less than three years with very little risk.
Mid-term funds: Intended for 3 to 10 year time horizon with moderate risk and guaranteed growth.
Long-term funds: For more than ten years can be in an aggressive portfolio for growth and income.

As you know, I am certified financial planner, registered investment advisor, provide comprehensive financial life planning services without any conflict of interest. I specialize in building, preserving wealth and retirement income planning for certainty of income during retirement

Beginning in 2010, all investors will be able to convert their traditional retirement accounts to Roth IRAs. By making this conversion and holding assets in the Roth account for a prescribed period, investors can withdraw their retirement funds entirely tax-free.
There is much more to IRA to Roth IRA conversion, and if you want to know that does it make sense for you to do this conversion, please feel free to call or email me.

I understand that my clients place much more than their money with me; they trust their financial future to my care. I take my responsibility very seriously, and trust and personal integrity is very important to me. My financial advice will always be in the best interest of my clients without any conflict of interest.

As you know in today’s busy life-style, one should look for ways to simplify life and consolidate all your investments with one advisor. The main advantage of having one advisor is, that he or she will be able to analyze your financial situation and provide much better recommendation and you will have to deal with just one advisor for all your financial information needs. However, it is equally important that you feel comfortable with and trust your advisor.

If you have questions or need additional information, please feel free to call or email me. In the evening, I am usually at my desk from 9:30 PM to 10:30 PM doing the paperwork or catching up on my reading. Feel free to call me during this time as well. During the day you can always get hold of me in my office or mobile phone.

All the best, with regards.