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While the stock market is behaving fearfully, we want to devote this issue to the thesis that the human capacity for innovation is an inexhaustible source of power that routinely topples seemingly intractable challenges. Our genius for betterment has flourished in the social arrangement known as democratic, free-market capitalism. Its promise of rewards for our efforts tends to subdue our baser instincts of fear and envy, and to stimulate the powerful creativity with which we are endowed.

As sovereign debt keeps rising, so have the prices of fixed-income investments. J. Michael Martin was quoted in Financial Planning Magazine. See highlighted copy for Mike's quotes.

PATIENCE is the most difficult of investment virtues to develop; hence it is the least practiced. Perhaps because patience is rare, it is also highly rewarding for those who persevere! At this writing, the Dow Jones Industrial Average is down a rather remarkable 488pts, a decline of -4.4% in 1 day. The index is testing the lows of this year, and is -17% from the highs of early May. The sudden decline is causing no small amount of angst among traders and especially among investors without a rational plan.

J. Michael Martin quoted in the Wall Street Journal. Don't Join the Ostrich Generation Amid the Choppy Markets. Too Many Soon-to-Be Retirees Have Avoided Making Key Decisions. Here's What to Do — Right Now

Friday evening, August 6, Standard & Poor’s announced a controversial removal of its long-standing AAA imprimatur on U.S. Treasury bonds. S&P’s reason for the slight downgrade to AA+ is that they see no evidence that our political process can reverse the growth of government debt in relation to either government revenues or the nation’s private sector activity. Both the deficit and the nation’s debt burden appear out of control. In the following memo we offer some insights into what is really going on, as well as a summary of FAI’s investment approach to prospering in this new environment.

You can’t turn on a news channel or open a newspaper without being bombarded by scare mongering about the political posturing and economic prognostications concerning Congress’ self-imposed Federal Debt ceiling. Clients have been asking whether the situation is serious and how their portfolios are protected against the risks and uncertainties. So we thought you might appreciate an update from our Investment Team.

What is it about gold? In the past 10 years, the price of one ounce of pure gold has risen from less than $300 to $1,500, far outpacing the return on stocks and bonds. And yet, to paraphrase the comedian Rodney Dangerfield, “It don’t get no respect” in most gatherings of professional investors. Why is that? Why is the yellow metal treasured in some quarters and disdained in others?

J. Michael Martin interviewed for Market Watch. Middle East stock markets ended mixed Monday, with most major stock markets in the region moving less than 1% higher or lower in the wake of news that U.S. forces killed al Qaeda leader Osama bin Laden.

J. Michael Martin quoted in the Wall Street Journal. Treasury Secretary Timothy Geithner on Tuesday said the U.S. would never intentionally weaken the dollar. But that doesn't mean the struggling currency, mired at a three-year low, is poised for a big rally soon.

Mary Thompson worked at the highest level of IT in the financial industry for many years, then put her career on hold when she had two children. When her youngest entered kindergarten, she faced what many women dread: reentering the workforce. She was hired at Financial Advantage to do client services, for which she was overqualified, but the company let her work the part-time schedule she wanted.

J. Michael Martin interviewed for the AP and CNBC. We're reminded daily that we live in a global economy. Yet as investors we often limit our thinking to the United States. Anyone wanting a well-rounded portfolio must consider international mutual funds as a diversification tool. The movement of international stock markets isn't closely correlated to what's happening on Wall Street. So investors can lessen the possible impact of a slump in the U.S. by investing abroad.

J. Michael Martin gives his opinion on investment strategies for Financial Planning Magazine. Profit from emerging nations’ skyrocketing demand for energy and metals by investing in North American and European mining and energy companies. Because of the exploding requirements of developing countries, worldwide demand for hydrocarbons and metals will keep rising faster than supply. Their consumption of raw materials is growing even faster than their GDPs.

Chad J. Norfolk interviewed by Paul Katzeff for Investor's Business Daily. It's bad enough if you die or are incapacitated by illness or accident. Compounding the crisis, your loved ones are likely to be devastated and distracted. Yet bills continue to arrive. And plans must be made for the future. How can your spouse cope financially, your heirs easily wrap up your affairs and take possession of your estate?

COLUMBIA, Md.— J. Michael Martin, CFP®, president of Financial Advantage, Inc., in Columbia, Md., was named one of the area’s top fee-only financial planners by The Washingtonian magazine in its November issue.

Dennis A. Suckstorf authors article for NAPFA's Planning Perspectives E-Newsletter. Planning perspectives is the consumer e-newsletter of the the National Association of Personal Financial Planners. Prior to 2010, an individual could only convert a traditional IRA (qualified retirement plan) to a Roth IRA if his or her modified adjusted gross was below $100,000. But since January 2010, the income restriction has been lifted, and many newly eligible people are considering this tactic.

Lyn A. Dippel Interviewed by Eileen AJ Connelly for the Associated Press. "I find that still, especially if they're stay-at-home moms, they're not in the know, or they don't have equal say," said Lyn Dippel, a financial planner with Financial Advantage in Columbia, Md.

Lyn A. Dippel authors article for the Women's Journal of Howard County. I love my role as a woman in the financial planning field because I see how many women have fear when it comes to money and the huge need for support and guidance in this area.

Lyn A. Dippel interviewed or Bankrate by Jennie L. Phipps. Poor retirement planning can leave a recent widow or widower with no cash at a time they may need it most. Until the estate is settled -- a process that can take months -- the bereaved spouse or partner won't have access to accounts that were held in one name only, unless the account owner took special care to resolve that problem.

Jean Chatzky interviews Chad J. Norfolk for Daily Finance. You probably know that your investment strategy should depend, in large part, on your age. A twenty-something shouldn't have the same asset allocation as a forty-something, and a retired 70-year-old is going to be in a different position entirely.

Dennis A. Suckstorf interviewed for the Baltimore Sun by Eileen Ambrose. Maryland lawyers and advisers have been in a holding pattern waiting for Congress to act.

J. Michael Martin interviewed for The Wall Street Journal, July 10, 2010, by Ben Levinson. Investors frustrated with stocks are jumping en masse into the safety of bonds. The yields on Treasurys have plunged to lows last seen during the worst of the financial crisis.

Lyn A. Dippel interviewed by Tim Grant for the Pittsburgh Post-Gazette. Losing a spouse brings with it a host of issues, not the least of which is how the surviving spouse will support himself or herself financially. Elderly widows, in particular, have a higher likelihood of facing poverty as they struggle with grief.

J. Michael Martin, President and Chief Investment Officer of Financial Advantage discusses what he expects the market to look like in the next 10 years.

Curtis R. Gross interviewed for Fidelity.com. Finding winning growth stocks is a challenge in any sort of economy. Finding them in an economy where few sectors seem to be growing much at all is an even greater challenge — but by no means an impossible one. Tight credit, high debt burdens and the upcoming end to the federal government's monetary and stimulus programs will likely mean modest economic growth through the fall. That, experts say, makes it critical for investors to employ strict criteria when seeking out growth stocks.

Chad J. Norfolk interviewed for the Wall Street Journal. These volatile ETF's can magnify performance - but also deliver unexpected results.

After 15 years in their second marriage, the husband was preparing to retire with $1 million in his IRA, and the wife, who had been a stay-at-home mom, was shocked to learn she had no ownership rights to the account. "She was devastated," said Lyn Dippel, a lawyer and financial planner at Financial Advantage in Baltimore. "She had raised the kids all this time and had no money to leave her two kids from a former marriage.

J. Michael Martin Interviewed for Bloomberg Business Week. There remain glimmers of hope for bond investors. "Rising rates are not a foregone conclusion," says J. Michael Martin, president of financial planning firm Financial Advantage in Columbia, Md. A weak economy could keep the Fed from raising interest rates. Even if the Fed raises short-term rates, long-term rates could remain low if the threat of inflation seems limited.

The outlook for freedom and growth in the U.S. and China. In our January column (“A Sensible Strategy”) we suggested gradually increasing allocations to emerging markets. We cautioned, though, that not all emerging markets are created equal. “Transparency is always a concern, and whether citizens are increasingly free is probably the most critical variable to evaluate and monitor.

Dennis A. Suckstorf interviewd by Joy Slabaugh for the FPA Website. In a tax code rife with acronyms, even savvy investors are confused by popular retirement vehicles like traditional Individual Retirement Accounts (IRAs) and Roth IRAs. Understanding these subtle differences can help you strategically plan for retirement.

Sixty years of endless summer are winding down. Investors have happily surfed atop a long, beautiful but increasingly dangerous wave of credit. The past two years have been like the last days of August. We realized it was ending, but we were intent on enjoying every last drop of its pleasures because we knew we wouldn’t see it again.

You have heard about the Roth conversion law for 2010. It’s in the news and everyone is talking about it. Beginning in January 2010, anyone can convert a traditional IRA (qualified retirement plan) to a Roth IRA without any income limitations.

People close to or in retirement need investments that will beat inflation. CDs—one of the lowest-risk investment options available—won’t do it in the current market. So how can you top inflation without exposing yourself too heavily to the stock market?

In investing, sometimes the best offense is a good defense. Does today's market environment require us to consider a radical new kind of portfolio design? I think we have a lot of correction possibilities going on here. That led me to say, what can we do that is totally, dependably opposite?

As we’ve all learned, the party doesn’t go on forever. Here’s how to improve your investment results by analyzing potential economic scenarios.

If MPT and the stock market are hurting your business, here are some things you can do about it. Many, or per-haps most, of us financial advisors make our living by billing clients a percentage of “Assets Under Management.” We supervise their portfolios, but we also provide a host of valuable noninvestment financial planning services for which we charge … well, nothing!

Financial Advantage, Inc. listed by Wealth Manager Magazine as one of the top wealth managers in the country. One year ago, when Wealth Manager published the 2008 Top Wealth Manager rankings, we wrote about how challenging the macroeconomic scene had become for even the top wealth managers.

A newly widowed woman—or man—has to deal with many complex estate and financial matters. It can be overwhelming, particularly if the spouse was the primary financial manager and decision maker. There are some aspects of financial management that many struggle with in particular.

Over the past 12-18 months, there has been a significant downturn in the financial markets. IRA accounts and other investment accounts do not have the same value they did at the end of 2007. With the devaluation of these accounts, especially IRA accounts, many people are wondering, “Should we convert part or all of our traditional IRA to a Roth IRA?”

As advisors probe for answers, many have begun to examine their basic big-picture assumptions about the world in which we live and earn our living.

Facing a recession and a down stock market, many people are stopping or cutting back their contributions to retirement plans like 401(k)s, IRAs and SEP IRAs.

Lyn A. Dippel interviewed for Pittsburgh Post Gazette. Economy has even the affluent doubting they have enough saved for comfortable retirement. The poor and middle class aren't the only ones sweating bullets over their ability to retire when their working days are done. Even the wealthy are worried about their financial future, according to a recent study.

Lyn A. Dippel interviewed for Insurance Broadcasting. If you’re not withdrawing money from your portfolio, volatility doesn’t matter if the return is the same in the end. But if you’re a retiree taking money out, it can make a big difference.

Chad J. Norfolk interviewed for Insurance Broadcasting. Leveraged exchange-traded funds can trade at big premiums—as high as 10% intraday—from their net asset value. This is the spread—the difference between the bid and ask price.

J. Michael Martin interviewed for the Christian Science Monitor. As the list of wealthy individuals, institutions, and charities that have lost millions, even billions of dollars in the Bernard Madoff fraud case continues to grow, other investors have been asking an important question: Why was there no independent custodian holding the securities and other assets Madoff's firm was said to be investing?

Featuring J. Michael Martin - Financial Planning Magazine. Volatility is up, rationality seems down. Stocks soar and sink (more sinking, to be sure) from hour to hour, even minute to minute. From mid-May to mid-November last year, the benchmark Standard & Poor's 500 Index went from flat for the year to down more than 40% year-to-date.

J. Michael Martin Interviewed for Business Week Magazine. Top money managers pick stocks that offer refuge in a brutally turbulent market.

J. Micheal Martin interviewed for Howard County Times. Advisers see opportunities in stock market's turmoil. With talk of Wall Street bailouts and company collapses dominating the news, ordinary investors might be cringing as they watch the stock market fall and rise -- sometimes dramatically. But according to local financial planners, now is not the time to panic.

J. Michael Martin interviewed for U.S. News & World Report. J. Michael Martin, president and CIO of Financial Advantage, a Columbia, Md., fee-only financial planner, says there is still lots of risk in the market and that now isn't the time to be lashing your investment future to U.S. stock indexes. He argues that when markets are in bad shape for a long stretch, it's more important to target healthy bits of the market rather than seek safety by playing the whole field.

Lyn A. Dippel Interviewed for Pittsburgh Post Gazette. Some investments you think are safe might actually be losers. Investors who can't make sense of today's stormy stock market might think the safety and security of bond mutual funds and money market accounts are a way to avoid losing money.

J. Michael Martin Interviewed for New Jersey Business News. Who knew U.S. presidential candidates Barack Obama and John McCain could be economic indicators? Investors will be watching how the two candidates' tax and spending plans will affect stock and bond prices after the conventions wrap up next week. But politics isn't the only factor weighing on the minds of people who are wondering where to put their money this fall.

J. Michael Martin interviewed for Financial Advisor Magazine. A popular characterization of the baby boomers is that they’ve saved little and will therefore draw on home equity to meet retirement income needs. But what happens when neither stocks nor residential real estate holds its value? Retirement plans must be rethought, modified and, hopefully, salvaged.

J. Michael Martin Featured interviewed for Pittsburgh Post-Gazette. Gold was out of sight and out of mind for most investors for more than 20 years while it consistently lost value and was widely considered to be a losing proposition. But recently the precious metal has regained its shine.

Is now the time to jump on opportunities in gold and energy, like unloved Canadian oil trusts, while putting unusually high percentage in money markets and short-term bonds?

Interviewing J. Michael Martin - Investment News