Safeguard Your 401(k) in Down Times
By Barry Moody, investment consultant with Raymond James Financial Services, Inc., and executive vice president with Pinnacle Asset Management
In recent weeks, many Americans have found themselves cringing as they've watched the threat of a recession and market plunges wreak havoc with their retirement accounts. The damage may be unnerving, but the situation is not hopeless.
There are steps you can take to help stem the flow of any more money out of your retirement accounts.
- Stay the course. First and foremost, even if you're close to retirement, don't be tempted to stop contributing all together or to cash out your 401(k), 403 (b) or 457 plan entirely. If you cash out and aren't 59½, you'll have to pay a 10% early-withdrawal penalty. Plus you'll miss out on potential earnings generated via compounding as well as any employer matches your company offers.
- Understand the market's history. In the past two decades, the markets have taken far worse tumbles than what we've seen in 2008. Historically, after big drops in the market, stocks have rebounded and actually reached new highs. Remember past performance may not be indicative of future results.
- Consider the opportunity. Market downtown may even benefit long-term investors because they can buy more mutual funds or stocks at lower prices and reap the financial rewards once the market recovers.
- Examine your investment plan. The best plan during a tough market environment is a solid, long-term investment strategy. Use the recent market volatility as a wake-up call to review your plan based on your personal situation and risk tolerance. Be sure your portfolio is well-diversified and that you are properly allocated. Your financial advisor can help you assess what is best for your particular needs.
Barry can be reached at 744-3750 or barry.moody@pnfp.com.
* Securities and investment advisory services offered through Raymond James Financial Services Inc. Member FINRA/SIPC - Not FDIC insured - Not guaranteed by Pinnacle National Bank - Subject to risk and may lose value
Recession Unlikely in Tennessee
Researchers at the University of Tennessee say the state’s economic growth has been affected by the lagging national economy, but it should avoid a recession this year.
The annual Economic Report to the Governor by UT's Center for Business and Economic Research predicts the state will add an average of 12,800 jobs across Tennessee this year -- the lowest employment growth in the state since 2003. UT economists don’t expect the state to suffer a net loss in jobs or to experience a drop in personal income during the year ahead.
"The good news is that growth continues to take place. Weaker growth, yes, but growth nonetheless," the report states.
Stronger growth is expected to re-emerge when the national housing market begins its turnaround in the final quarter of the year. A delayed housing rebound would delay a return to stronger growth in Tennessee.
Is Tennessee's BEST College Savings Plan going away?
The State of Tennessee recently decided to terminate its Baccalaureate Education System Trust (BEST) 529 College Savings Plan, citing that participants desire lower fees and more investment choices.
According to the state treasurer's office, participants have three choices: 1) roll their account into another 529 plan; 2) roll the account into Georgia's Path2College 529 plan; or 3) do nothing and receive a check for the contributions they've made so far. If the check isn't rolled into a new plan within 60 days, participants may owe taxes and penalties.
Pinnacle offers several other college savings accounts that BEST participants can roll their contributions into without having to pay taxes and penalties. You can call an Investment Advisor with Pinnacle Asset Management to learn more about college savings accounts.
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| Amy Joyner |
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| Doris Lynn |
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| Nicole Dunigan |
Pinnacle has established a specialty in relationship development and executive relocation and hired the most experienced team in the Nashville banking industry to meet the unique needs of the growing number of companies and individuals moving to the Nashville area.
Pinnacle's three relationship development and executive relocation veterans have a combined 79 years of experience in Nashville's financial institutions:
- Amy Joyner, with 34 years of experience, serves as a financial advisor and senior vice president. Amy has managed Business Development and Relocation divisions at First Tennessee Bank and AmSouth Bank (formerly First American National Bank).
- Doris Lynn brings more than 34 years experience to her role. She was also most recently with First Tennessee's Business Development and Relocation Division, specializing in helping healthcare companies relocating to the area.
- Nicole Dunigan comes to Pinnacle with 11 years of experience. She was the exclusive mortgage banker for the Tennessee Titans while at AmSouth and later specialized in mortgage lending and executive relocation at First Tennessee. She co-founded Coffee Talk Nashville, a monthly gathering of business and community leaders that takes place in the Historic Jefferson Street community.
Pinnacle Secures Grants for Habitat for Humanity
The Federal Home Loan Bank of Cincinnati, in partnership with Pinnacle, recently awarded two grants totaling $323,965 to Nashville Area Habitat for Humanity. The grants will help Habitat develop 45 units for low income families in Timberwood, its second all-Habitat community, and build two homes for purchase by persons with special needs. Pinnacle associates will provide volunteer labor to help build these homes.
Since 2000, Pinnacle, together with the Federal Home Loan Bank of Cincinnati, has helped affordable housing organizations build 137 homes in Middle Tennessee and has provided approximately $2 million in down payment assistance and other funding.
The Rutherford County Chamber of Commerce recently honored Pinnacle Rutherford County area executive Bill Jones as its 2008 “Business Person of the Year” for his impact on the business community and outstanding contributions made through business achievement and volunteerism.
Ed Loughry, Pinnacle vice chairman, recently received Leadership Rutherford’s Pinnacle Award, which recognizes a Leadership Rutherford graduate who has a long history of giving back to the community.
Pinnacle welcomes eleven new associates to the team:
Nancy Caffey, 27 years experience, client service specialist
Natasha Condrey, 7 years experience, financial advisor assistant
Pennie Dangerfield, 16 years experience, consumer underwriting
Elizabeth Graves, 14 years experience, quality control
Juanita Hall, 28 years experience, loan operations specialist
Nora Klein, 13 years experience, BSA analyst/compliance
Pat McAfee, 22 years experience, loan operations specialist
Athena Neese, 23 years experience, service specialist
Larry Robinson, 30 years experience, item processing
Tanika Sandridge, 10 years experience, loan operations specialist
Gerald Satterfield, 8 years experience, mortgage advisor/Donelson
Economist Arthur Laffer at April 17 Forum
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Internationally renowned supply-side economist Dr. Arthur Laffer is the speaker for a Pinnacle Forum in Murfreesboro on April 17 from 7:30 - 9:00 a.m. at the Stones River Country Club, 1830 NW Broad St. Breakfast will be served.
Laffer is a founding member of the Congressional Policy Advisory Board, was a member of President Reagan's Economic Policy Advisory Board for two terms and was Chief Economist at the Office of Management and Budget (OMB) under Secretary of the Treasury George Shultz. He is the owner of Nashville-based fund management firm Laffer Associates.
For information or to RSVP, contact Bethany Cole at 849-3349 or bethany.cole@pnfp.com.
Recent Development in Estate Planning*
with Roy Adams, Cannon Financial Institute, and guest Ann Burns, CPA
Teleconference at Pinnacle Downtown Nashville
Tuesday, March 11, 11:30 a.m. - 12:30 p.m. (workshop and box lunch)
RSVP or questions: Summer Yeiser at 620-1207 or summer.yeiser@pnfp.com
* CE credit available for CPAs, CFPs, Enrolled Agents, CTFAs, and Attorneys
Retire With Confidence: Income Planning and Risk Management in the Crucial Years
with Scott McPherson, CTFA, Investment Consultant for Pinnacle Asset Management and Raymond James Financial Services, Inc.*
Pinnacle Goodlettsville
Thursday, March 13, 11:30 a.m. - 12:30 p.m. (workshop and box lunch)
RSVP or questions: Summer Yeiser at 620-1207 or summer.yeiser@pnfp.com
* Securities and investment advisory services offered through Raymond James Financial Services Inc. Member NASD/SIPC - Not FDIC insured - Not guaranteed by Pinnacle National Bank - Subject to risk and may lose value
Insurance Review
with Karl Welch, Bobby Mason and Susan McIndoo of Miller & Loughry Insurance and Services, Inc.
Pinnacle West End
Thursday, April 10, 11:30 a.m. - 12:30 p.m. (workshop and box lunch)
Pinnacle Goodlettsville
Thursday, April 17, 11:30 a.m. - 12:30 p.m. (workshop and box lunch)
Pinnacle Franklin
Thursday, April 24, 11:30 a.m. - 12:30 p.m. (workshop and box lunch)
RSVP or questions: Summer Yeiser at 620-1207 or summer.yeiser@pnfp.com
