Just as parents worry about their children, investors worry about their retirement portfolios. One way to help reduce your investment worries is by allocating your retirement portfolio in a variety of asset classes. Owning a variety of securities in different assets classes helps protect you from large value declines in the event that one asset class performs poorly.

Professionally-designed asset allocation programs can help you find the mix of stock and bond investments that work together most efficiently to achieve the highest return possible at a risk level you’re comfortable with. And, while a professionally managed process of asset allocation cannot guarantee a profit, it is a way for investors to increase potential returns and reduce risk.


Understanding the Role of Stocks in a Retirement Portfolio

Stock investments are generally necessary to grow capital, which impacts your standard of living
now and in retirement. The growth of capital is a source for higher income in retirement and can
help make possible a stable, and potentially rising standard of living.

Inflation is a risk from which you need to protect your financial assets. Over the short-term, rising prices may go unnoticed. But over a decade or two, the impact can be significant. Assuming an average annual inflation rate of 5%, the purchasing power of $1 will shrink to about 38 cents over a period of 20 years. Historically, a diversified portfolio of stocks has provided investors an effective method to beat inflation over time.

Though stocks may present greater short-term volatility than bonds, over longer time periods, the
additional risk of owning stocks has been much lower. Time increases the likelihood of
investment success.


Finding the Investment Mix That’s Right for You

Allocating your assets correctly can be critical to the success of your retirement portfolio. To
make this determination you need to closely consider three things:

• Analyze your retirement income cash flow—learn which expenses are “needs” and which are “wants”
  
  
• Identify your tolerance for risk--find the mix of stocks and bonds with which you are comfortable
  
  
• Evaluate your portfolio—learn if your investments can meet your retirement income needs

An investment professional can help you with these three steps by performing a thorough
financial review. Once the review is complete, the professional can make a recommendation on
the best allocation of your investment portfolio.

So stop worrying, and contact your investment professional today. He or she can help make
certain your portfolio is allocated appropriately to ensure a long and successful retirement!


Free Review

Call Daniel Martin for a no-cost, no-obligation review of your retirement plan investments at:
office 508-359-4151 or
cell 781-985-6612.

Please inquire about our upcoming Business and Financial Services series of Workshops:

• “Tax Favorable Investing”
  
• “Small Business-Big Mistakes”
  
• “Business Continuation Planning”, etc.

Please contact our office to let us know how we can assist you.

Visit us online @ www.williampalumbo.com

Medfield Corporate Office 4 West Mill St. PO BOX 250 Medfield, MA 02052 (508) 359-4151

Attleboro Office (508) 222-3240

Franklin Office (508) 520-1755

Sandwich Office (508) 888-2244

In today’s business world, we all should know and understand that blatant sexual harassment is illegal. What you may not know is that two U. S. Supreme Court rulings in June 1998 broadened the view of what constitutes sexual harassment and a company’s responsibility to provide an unhostile work environment. As a result, employers are responsible for employee behavior, and employees have greater recourse to take legal action with respect to sexual harassment. Plaintiffs no longer have to prove that the company bears responsibility or that their job suffered – either through lack of promotion, demotion or dismissal, for example.

Employment discrimination and harassment cases have steadily climbed since passage of the Civil Rights Act of 1991, which amended Title VII to permit jury trials as well as compensatory and punitive damages in discrimination cases. Between 1990 and 2000 the number of employment discrimination and harassment cases filed per year tripled, according to a U.S. Department of Justice study.

The cost to defend and/or settle a sexual harassment suit can be hefty. The average damage award in employment-related lawsuits is $650,000. In addition, businesses face the loss of employees’ work time, disruption in the work area and the specter of bad publicity.


Defining Sexual Harassment

Federal and state laws prohibit quid pro quo behavior that occurs when one employee who has power over another bases employment decisions or expectations on the subordinate’s willingness or unwillingness to grant sexual favors. Examples include:

•  Demanding sexual favors in exchange for a promotion or raise;
  
  
• Disciplining or firing a subordinate who ends a romantic relationship; and
  
  
• Changing performance expectations after a subordinate refuses repeated requests for a date.

But sexual harassment does not have to involve a disparity of power. The offender may be a coworker, customer or vendor, man or woman, and the victim doesn’t even have to be the person harassed. It can be anyone affected by the offensive behavior. As an example, if one employee is telling another a joke that neither finds offensive, is it sexual harassment? The answer could be yes, if a third employee in an adjoining cubicle overhears it and is offended.

Any behavior that creates a hostile environment for another employee – whether verbal, visual, written or physical – may constitute sexual harassment. These include behaviors that:

• Focus on the sexuality of another person or occur because of the person’s gender;
  
  
• Are unwanted or unwelcome; and
  
  
• Are severe enough to affect the person’s work environment.

Examples are telling off-color jokes, repeated teasing, displaying suggestive pictures or other objects, and continuing to send love letters or requesting dates when the other party has indicated no interest.


EPLI Provides Protection

Businesses can protect themselves from the economic impact of sexual harassment lawsuits with employment practices liability insurance (EPLI). It protects businesses against employee claims that their legal rights have been violated. Insurance contracts can vary by company.

Generally EPLI covers legal costs, judgments and settlements that arise not only from sexual harassment charges but from discrimination, wrongful termination, breach of employment contracts, negligent evaluation, failure to employ or promote, wrong discipline, deprivation of career opportunity, wrongful infliction of emotional distress and mismanagement of employee benefit plans. However, policies usually do not cover punitive damages or civil and criminal penalties.

When purchasing a policy, determine who will be covered – company officers, all full-time employees,
part-time employees and independent contractors should be considered. Companies should also ensure that all divisions and subsidiaries are included under the policy.

Employers are required to report incidents as soon as practicable. However, Extended Reporting Period (ERP) protection is available. The length and cost of this feature varies among carriers. In addition, many policies now include Prior Acts in their standard coverage.

Cost has been a barrier to some smaller companies. However, rate increases in 2004 leveled off
somewhat; some carriers’ rates remained the same or decreased. The cost of EPLI coverage is based on a number of factors. These include your type of business, number of employees and whether your company has previously been involved in an employment practices lawsuit.

Prevention is key to avoiding sexual harassment lawsuits. Employers should take the following steps:

• Establish and communicate to managers and employees a no-tolerance policy for sexual harassment in the workplace.
  
  
• Create an effective complaint and grievance process.
  
  
• Take immediate and appropriate action if a sexual harassment complaint is made.
  
  
• Document complaints and follow-up actions.
  
  
• Report the incident to your EPLI insurance carrier as soon as possible.
  

If you ask someone what their home is worth, chances are they’ll tell you it’s difficult to put a price on it. They are evaluating it through an emotional filter filled with happy memories they had while living in the house. In reality, homes are assessed every day to see what tangible value they have on the open market and the factors they are evaluated against have nothing to do with emotion.

To understand how houses are rated, you need to begin with a clear definition of “market value”. In real estate terms, market value is the price at which something can be freely bought and sold within a reasonable period of time. The concept of being freely bought and sold refers to the conditions necessary for a fair sale, meaning the buyer and seller are acting wisely and knowledgeably, and the price is not affected by any artificial stimulus. A reasonable time in real estate parlance generally means between one to three months.

If you are setting out to determine the market value of your home it is extremely important that you are focusing on the conditions that make your home saleable. The housing market is very volatile. Home prices vary significantly from city to city and even from neighborhood to neighborhood. You need to compare your home with similar houses in the same or nearby neighborhoods.

When you do these types of analysis, you should be looking for:

• Site characteristics – Is it in a desirable neighborhood with good schools? Is public transportation available? How accessible is the nearest shopping by both car and other means of transportation?
  
  
• Design and appeal characteristics – Is the layout designed for convenience? Does the house have curb appeal, meaning its appearance on the outside as seen from the street?
  
  
• Construction quality- What is the condition of the original construction?
  
  
• Age/condition – If it is an old house, has it been properly maintained? Are there visible problems with the roof, siding, etc? Is the outside in need of a coat of paint?
  
  
• Improvements- Have you remodeled the kitchen or bathroom or added on extra rooms?
  
  
• Amenities – Is there a deck or swimming pool? Is the backyard large enough to be used for parties and barbeques?

Another yardstick for measuring market value that many realtors recommend is calculating the price per square foot. The method most commonly used is to divide the amount of livable square feet into the house's most recently appraised price. You can usually find the appraisal price from a property tax bill. Next, compare your result with the price per square foot of some of the homes that were recently sold in your area. You want to ensure that the price per square foot you are using is in line with the neighborhood norm.

Finally, you need to consider current real estate market conditions. Real estate prices rise and fall despite the quality of the individual properties. Interest rates, the state of the economy and the local job market are all factors used in determining the market value of homes in a particular area. When the market is down because of negative influences like high unemployment, the market value of your house can be lower than what you think it should be. And conversely, when the economy is booming, home values can go through the roof. Assessing the market value of your home should be done periodically so that you are sure you have ample insurance coverage. The time to find out you are underinsured is not when tragedy strikes.