1. THE CALLAN PERIODIC TABLE OF INVESTMENT RETURNS 1998-2017:
[A link to a more legible copy of the table is available here .]
The Callan Periodic Table of Investment Returns conveys the strong case for diversification across asset classes (stocks vs. bonds), investment styles (growth vs. value), capitalizations (large vs. small) and equity markets (U.S. vs. non-U.S.). The Table highlights the uncertainty inherent in all capital markets. Rankings change every year. Also noteworthy is the difference between absolute and relative performance, as returns for the top-performing asset class span a wide range over the past 20 years. Callan’s Periodic Table of Investment Returns depicts annual returns for 10 asset classes, ranked from best to worst performance for each calendar year. The asset classes are color-coded to enable easy tracking over time. Callan describes the well-known, industry-standard market indices that are used as proxies for each asset class in the text below:
- Bloomberg Barclays Aggregate US Bond Index includes U.S. government, corporate, and mortgage-backed securities with maturities of at least one year.
- Bloomberg Barclays High Yield Bond Index measures the market of USD-denominated, non-investment grade, fixed-rate, taxable corporate bonds. Securities are classified as high yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below, excluding emerging market debt.
- MSCI World ex USA is a Morgan Stanley Capital International Index that is designed to measure the performance of large and mid cap equities in developed markets in Europe, the Middle East, the Pacific region, and Canada.
- MSCI Emerging Markets is a Morgan Stanley Capital International Index that is designed to measure the performance of equity markets in 23 emerging countries around the world.
- Russell 2000 measures the performance of small capitalization U.S. stocks. The Russell 2000 is a market-value-weighted index of the 2,000 smallest stocks in the broad-market Russell 3000 Index.
- Russell 2000 Growth and ● Russell 2000 Value measure the performance of the growth and value styles of investing in small cap U.S. stocks. The indices are constructed by dividing the market capitalization of the Russell 2000 Index into Growth and Value indices, using style “factors” to make the assignment. The Value Index contains those Russell 2000 securities with a greater-than-average value orientation, while the Growth Index contains those securities with a greater-than-average growth orientation. Securities in the Value Index generally have lower price-to-book and price-earnings ratios than those in the Growth Index. The indices are market-capitalization weighted. The constituent securities are not mutually exclusive.
- S&P 500 measures the performance of large capitalization U.S. stocks. The S&P 500 is a market-value-weighted index of 500 stocks. The weightings make each company’s influence on the Index performance directly proportional to that company’s market value.
- S&P 500 Growth and S&P 500 Value measure the performance of the growth and value styles of investing in large cap U.S. stocks. The indices are constructed by dividing the market capitalization of the S&P 500 Index into Growth and Value indices, using style “factors” to make the assignment. The Value Index contains those S&P 500 securities with a greater-than-average value orientation, while the Growth Index contains those securities with a greater-than-average growth orientation. The indices are market-capitalization weighted. The constituent securities are not mutually exclusive.
2. 2018 WILSHIRE CONSULTING REPORT ON STATE RETIREMENT SYSTEMS: FUNDING LEVELS AND ASSET ALLOCATION:This is Wilshire’s twenty-second annual Report on State Retirement Systems: Funding Levels and Asset Allocation, which reports the aggregate funded status of over 100 U.S. state-sponsored defined benefit retirement systems. Financial data on public retirement systems historically have lacked the timeliness and uniform disclosure governing pension plans sponsored by publicly traded companies, making it difficult to conclude a study with data that are both current and consistent across systems. For this reason, the study methodology involves collecting data during the first one and a half months of each calendar year with the objective of acquiring as many reports as possible with a June 30 valuation date from the previous year. Even for systems with the desire to report in a timely manner, it often takes six months to a year for actuaries to determine liability values. Seventy-one of the 130 systems surveyed reported actuarial values on or after June 30, 2017. This study reports on the aggregate Total Pension Liability (TPL) values used for financial reporting under the accounting and financial reporting standards for state and local governments: Governmental Accounting Standards Board Statements No. 67 and 68 (GASB 67/68). Through these Statements, GASB and the financial industry have taken major steps to increase transparency and comparability of pension plan accounting. GASB’s Statement 67, “Financial Reporting for Pension Plans”, impacts the annual pension reporting for plans as of June 2014; Statement 68, “Accounting and Financial Reporting for Pensions”, impacts the annual pension reporting for the employers contributing into government agency-sponsored pensions, and applies to employers’ financial reporting starting in June 2015. This year’s report is based on the financial statements reported by these state plan sponsors as of their last fiscal year ends – June 30, 2017 is the most frequent measurement date for plans in this year’s report. Wilshire estimates that the aggregate funded ratio was 70.2% at fiscal year-end 2017, which represents an increase of 2.8% from the end of FY 2016 and reverses two consecutive years of aggregate funded ratio declines. A primary driver of the improvement was the increase in global equity values for the twelve-month period ending June 30, 2017 (MSCI AC World ex U.S. Index +24.45%). The report shows the aggregate reported funded status, asset, liability and surplus/deficit values over the past six fiscal years.
3. FLORIDA SENIORS EARNED $150 MILLION THROUGH AIRBNB IN 2017:
Florida Trend writes that Airbnb Florida, the Sunshine State’s leading community driven hospitality company, released a report documenting the economic impact of home sharing and vacation rentals for Florida’s senior community. In Florida, over 45% of Airbnb’s 40,000+ hosts are seniors. Floridian seniors earned over $150 million through the Airbnb platform in 2017, indicating the capacity of home sharing to produce supplemental income for older generations and sustain retirement. “We are happy to see seniors throughout our state utilizing technology to take full economic advantage of their properties and sustain their retirements,” said Jeffrey S. Bragg, Secretary of the Florida Department of Elder Affairs. “Under the Scott Administration, we will continue to support the efforts of private sector platforms like Airbnb to facilitate economic opportunities for older Floridians.” Southwest Florida is the most prominent Florida hub for senior hosts, with over 50% of hosts in the region ages 55+ and up. Throughout all of Florida, seniors account for the fastest growing and the best reviewed Airbnb host demographic. “Many older Floridians are realizing that sharing their home provides benefits like preventing isolation, which itself is a significant risk to physical and mental health, while offering the opportunity to continue to learn and grow by encountering new ideas and cultures that come from interaction with other people,” said Jeff Johnson, AARP Florida State Director. “Several models of home-sharing, from online platforms to old-fashioned roommate-hunting, provide the additional benefit of revenue or cost-sharing for older home owners, allowing them financial security and the ability to age in place.”
Here are some Airbnb Florida Senior Data:
- Florida seniors earned through sharing their homes in 2017
- Over share their homes or a vacation rental through Airbnb
- Seniors are the of Airbnb hosts in Florida
- Seniors are the of Airbnb hosts in Florida -- with 46% year-over-year growth in total senior hosts
- Seniors are the in Florida -- 85% receive 5-star reviews
- Females account for 60% of Airbnb’s Florida host community - the highest proportion of any other age demographic
- The typical Florida senior host earns in income through Airbnb
Cities Where Over 50% of Airbnb Hosts are Seniors
- Fort Myers Beach -- 65% of Airbnb hosts are seniors
- Bonita Springs - 64%
- Saint Augustine - 63%
- Cape Coral - 61%
- Marco Island - 60%
- Naples - 59%
- Fort Myers - 53%
- Panama City Beach - 50%
- Daytona Beach - 50%
Founded in 2008, Airbnb is a global travel community that offers magical end-to-end trips, including where you stay, what you do and the people you meet. Airbnb uniquely leverages technology economically to empower millions of people around the world to unlock and monetize their spaces, passions and talents to become hospitality entrepreneurs. Airbnb’s accommodation marketplace offers access to millions of places to stay in more than 191 countries, from apartments and villas to castles, treehouses and B&Bs. With Experiences, people can see a different side to a destination through unique, handcrafted activities run by locals, while a partnership provides access to the best local restaurants in selected countries. All of this is brought together in one easy-to-use and beautifully designed website and app.
4. FLORIDA SEEKS ANSWERS ON WORKERS’ COMP MARKET:
The Department of Financial Services announced that it intends to pay $195,000 to the Workers’ Compensation Research Institute to study how Florida’s workers’ compensation insurance market is performing compared to other states. The department contends the nonprofit institute is the “only known entity” that published independent data for 15 to 20 other large states that participate in the study. According to the state, “stakeholders … benefit from research that assists in monitoring the effects of legislation and administrative changes and from the comparison of legislative and administrative strategies of other states to better forecast necessary policy changes.” Business groups pushed the Legislature to act on workers’ compensation insurance issues in 2017 after the Florida Supreme Court ruled that restrictive attorney fee caps were unconstitutional. Business groups warned that rates would skyrocket if lawmakers did not act. The Legislature did not make changes, and rates did not increase. Headed into the 2018 Session, workers’ compensation seemed to continue to be a priority for business groups. But in a surprise move, the Florida Chamber of Commerce, Associated Industries of Florida and 15 other organizations sent a letter to members of the state House asking that they not consider changes during the session. The groups warned that changes could be premature and ultimately, inadequate. Published by News Service of Florida.
5. FORMER TRUSTEE SENTENCED TO 41 MONTHS FOR THEFT FROM PENSION PLANS:
George S. Hofmeister, 65, was sentenced to 41 months in federal prison, by Chief United States District Judge Karen K. Caldwell, for pension plan theft and money laundering. Hofmeister previously admitted that he embezzled money from the Hillsdale Hourly and Salaried Pension Plans. Hofmeister was the Trustee of the Plans at the time. Hofmeister also admitted that Plans' assets were diverted for the benefit of his companies and his family's trusts. Hofmeister pleaded guilty to the charges in October, 2017. Under federal law, Hofmeister must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for three years. Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and L. Joe Rivers, Regional Director, U.S. Department of Labor, Employee Benefits Security Administration (EBSA), jointly made the announcement. "Employer sponsored retirement plans serve a vital role in providing a financially secure retirement for American workers," said Director Rivers. "This case underscores EBSA's commitment to pursing any individual who would divert these funds for their own enrichment." The investigation was conducted by the Department of Labor's EBSA and Office of Inspector General and the Internal Revenue Service. The United States was represented by Assistant United States Attorney Elaine K. Leonhard and former Assistant United States Attorney Robert K. McBride. Press release: Issued by: Employee Benefits Security Administration [EBSA], U.S. Department of Labor, April 26, 2018
6. 1 MILLION SOCIAL SECURITY REPLACEMENT CARDS AND COUNTING:
Your Social Security number is your first and continuous link with Social Security, so losing your card can be frustrating. Luckily, there is a way to replace your card when you need it, with our online replacement card service. It is quick, easy and free! Now, more than one million people have requested a replacement card through our service, and we are still adding states to the list of those who can use the online service! To replace your card online, first you will need to log in to or create your my Social Security account. We protect your personal information using identity verification and security features. Your security and protection are what matter most; you can take control of your future with secure access to your information anytime, anywhere! You will also need to meet certain requirements. You must be a United States citizen age 18 or older with a U.S. mailing address, cannot be requesting a name change or any other change to your card and must have a driver’s license or state-issued identification card from a participating state. We have just added Colorado, Montana, New York and Wyoming to Arizona, Arkansas, California, Delaware (driver’s license only), the District of Columbia, Florida, Idaho, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Mississippi, Nebraska, North Dakota, New Mexico, Pennsylvania, South Dakota, Texas, Virginia, Washington and Wisconsin (driver’s license only). Keep in mind that in many cases, even if you lost your card, you may not need a replacement. In most cases, simply knowing your Social Security number is enough. But if you do need a replacement, we make it easy. Once you log in to your account, you can follow the instructions to request your replacement Social Security card online. Learn more about getting a replacement Social Security card and find out if you can request yours online by visiting our Social Security number and card page. No matter where, how or when you decide to do business with us — we strive to provide the best experience and services to put you in control. Join the million people who have already gone online to request their Social Security cards! Posted on April 26, 2018 by Jim Borland, Acting Deputy Commissioner for Communications
7. NEW OFFICE ADDRESS:
Please note that Cypen & Cypen has a new office address: Cypen & Cypen, 975 Arthur Godfrey Road, Suite 500, Miami Beach, Florida 33140. All other contact information remains the same.
I did not like my beard at first. Then it grew on me.
9. INSPIRATIONAL QUOTES:
I cannot change the direction of the wind, but I can adjust my sails to always reach my destination. – Jimmy Dean
10. TODAY IN HISTORY:
- On this day in 1792, 24 merchants form New York Stock Exchange at 70 Wall Street.
- On this day in 1973, Senate Watergate Committee begins its hearings.
11. THINK YOU KNOW EVERYTHING:
Peanut oil is used for cooking in submarines because it does not smoke unless it is heated above 450F.
12. REMEMBER, YOU CAN NEVER OUTLIVE YOUR DEFINED RETIREMENT BENEFIT.