News from the
Financial Front
February 2017 Volume 8, Issue 1
Website Announcement
First Ohio Planning’s new and improved website
is now up and running. Please visit us at www.
FirstOhioPlanning.com. We would love to get
your impressions and feedback. Don’t forget
that you can access your First Ohio Planning
managed accounts through our website. You
can also see your MoneyGuidePro financial plans
if you have requested access.
Visit us at www.FirstOhioPlanning.com.
Richest Person Ever In the World
– Historical Note
Over the centuries, industrial leaders evolved
who were able to generate tremendous wealth
and in some instances popularity. Yet even with
the onset of technology over recent decades, it
has been difficult for any modern day billionaire to become as rich as Mansa Musa, the 14th
century emperor of the Mali Empire. The value of
Mansa Musa’s fortune calculated in today’s value
is estimated to have been in excess of $400
billion.
Mansa Musa was the African ruler of an empire
that once covered Western Africa. In the 14th
century, Mali produced about half of the world’s
gold from three highly productive mining regions. Bags of gold dust functioned as money in
the kingdom, while nuggets were stored in the
treasury as the property of the emperor. Wealth
in the modern age is primarily stored in stocks,
bonds, metals, and real estate.
Accumulation of wealth has always been a point
of contention, as inherited wealth was more
prevalent centuries ago; however, in the 19th &
20th centuries, the free market allowed entrepreneurs born to no wealth the ability to build and
accumulate wealth. The free market and capital
structure of the United States helped foster the
establishment and wealth of the Industrial Titans
This Issue:
Page 1. Website Announcement
1. Richest Person Ever In the World –
Historical Note
1. Good News, You May Not Need As
Much For Retirement – Financial
Planning
2. Where Marijuana Adds To Higher
State Tax Revenues – Fiscal Policy
3. Over 45% of Households Have No
Retirement Assets – Retirement
Planning
4. Market Update
of the turn of the century. Vanderbilt, Carnegie,
Ford, and J.P. Morgan all developed enormous
industries and wealth that became a backbone
for the country’s economic and industrial infrastructure.
Content provided by One Blue Window
Good News, You May Not Need
As Much For Retirement
– Financial Planning
As retirement becomes more of a reality for
more Americans, the anticipated expenses associated with retiring can actually be less than
when still working.
*continued on page 2
Contact us
First Ohio Planning, LLC.
1429 King Avenue
Columbus, OH 43212
Phone: (614) 486-0691
Fax: (614) 486-0694
www.firstohioplanning.com
News from the Financial Front
Page 2
Good News, You May Not Need As Much For Retirement - (continued from page 1)
Lifestyle changes and adjustments automatically occur once we retire. Such changes include not
filling up at the corner gas station twice a week to get into the office, or perhaps not spending hundreds of dollars each year for work clothes.
A number of expenses that existed during our working years may not necessarily be there in our
retirement years. These are a few of the most prominent:
Mortgage payments made over the years may have dwindled the mortgage balance down enough to
just have it paid off. It may make sense paying off a small mortgage balance since the bulk of the
interest has already been paid and used as income tax deductions.
Taxes and applicable tax rates may change, as in our earning years we are taxed on earned income
and in our retirement years social security and investment income is most of what is received. Some
clever tax planning and active investment management may yield lower tax liabilities than when
actively employed.
Savings and setting aside disposable income over the years for retirement plans also goes away, as
we actually start to use some of those assets for retirement income in lieu of earned income.
Content provided by One Blue Window
Where Marijuana Adds To Higher State Tax Revenues – Fiscal Policy
For years the discussion as to whether or not to legalize marijuana (also known as cannabis, pot or
weed) has been a contentious issue. Currently, the use, possession, sale, cultivation, and transportation of cannabis is illegal under federal law in the United States. However, the federal government
did articulate that states have the ability to be more liberal with their pot laws, as long as they pass
a law to decriminalize cannabis for recreational or medical use only. Unlike several of the individual
states, the federal government classifies marijuana as a Schedule I substance, meaning that it has a
high potential for being abused by users and has no acceptable medical purposes.
As of October 2016, the four states that have legalized marijuana are Alaska, Colorado, Oregon, and
Washington State.
Aside from the claimed medical benefits offered by cannabis, tax revenue benefits have come to the
forefront as a key factor. Marijuana tax collections for Colorado and Washington which both started taxing cannabis in 2014, have both exceeded initial estimates. Colorado brought in over $129
million of tax on cannabis during its first fiscal year. Washington state brought in over $67 million in
its first year of taxing pot. This data is just for two states, yet the expectation is that other states will
eventually follow suit.
The Tax Foundation, a non partisan independent tax policy research organization, projects that an
established marijuana industry could eventually generate up to $28 billion in federal, state, and local
tax revenue nationally.
Content provided by Tax Foundation
News from the Financial Front
Page 3
Over 45% of Households Have No Retirement Assets – Retirement
Planning
As the Baby Boom generation has begun to retire, more attention is being paid to retirement savings
and how much retirees will have to live on. In addition to Social Security, a primary source of retirement funds for decades has been pension plans, also known as Defined Benefit (DB) plans. Over the
years private sector companies have shifted away from traditional DB plans to Defined Contribution
(DC) plans, including 401k Plans. As employers and employees have shifted their assets from traditional pension plans to 401k plans, the onus of funding and managing these retirement assets has
migrated to the individual employee. It used to be that employees were automatically covered by
pension plans and funded on their behalf. Today, most 401k plans are voluntary and funded not by
employers but by employees themselves.
Many believe that the shift from traditional pensions to 401ks has made it difficult for employees to
save. When the average length of employment with a company was much longer years ago, it was
feasible to have employers fund their employee’s retirement accounts. The benefit is also used as an
incentive for employees. Modern day dynamics have made employees much more mobile, making
401k plans more popular and practical as retirement savings vehicles.
Content provided by Tax Foundation
News from the Financial Front
Page 4
Market Update
(all values as of 12.31.16)
Content provided by J.P. Morgan
Stock Indices:
Dow Jones
S & P 500
Nasdaq
19,763
2,239
5,383
Bond Sector Yields:
2 Yr Treasury
10 Yr Treasury
30 Yr Treasury
1.20%
2.45%
3.06%
YTD Market Returns:
Dow Jones
S&P 500
Nasdaq
MSCI-EAFE
MSCI-Emg MKT
US Agg Bond
US Corp Bond
US Municipals (10yr)
High Yield
16.50
11.96
8.87
1.51
11.60
2.65
6.11
-0.12
17.13
Commodity Prices:
Gold
Silver
Oil (WTI)
1,146
16.24
53.75
Dollar/Euro
Dollar/Pound
Yen/Dollar
1.05
1.24
116.64
Currencies:
News from the Financial Front
Page 5
Vision: To be recognized as the most reputable partner and resource for financial advice and counseling
for businesses, executives and individuals.
Mission: To establish long-term consultative relationships with clients to comprehensively serve the
financial needs of their businesses and families.
Staff Contact Information
(Pictured from Left to Right)
Lori M. Fellows
(614) 486-0691 Ext 6
[email protected]
Lisa J. Miller
(614) 486-0691 Ext 3
[email protected]
James S. Ryan
(614) 486-0691 Ext 1
[email protected]
Jane R. Prause
(614) 486-0691 Ext 4
[email protected]
David W. Wright
(614) 486-0691 Ext 2
[email protected]
Sandra L. Grant
(614) 486-0691 Ext 7
[email protected]
Anthony P. Parisi
(614) 486-0691 Ext 8
[email protected]
Marilyn C. Sweeney
(614) 486-0691 Ext 5
[email protected]
Hope you enjoyed our newsletter
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