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Summer 2009
Announcement
Waller Financial Planning Group is proud to announce that it has been selected by Wealth Manager Magazine as a “Top Wealth Manager.” The magazine has recognized Waller Financial Planning Group as one of the top advisory firms in the United States, and will include the firm in its July/August 2009 issue.
Quote
"If we had no winter, the spring would not be so pleasant; if we did not sometimes taste of adversity, prosperity would not be so welcome.”
- Anne Bradstreet
Inside
Announcement
Waller Financial Planning Group is proud to announce that it has been selected by Wealth Manager Magazine as a “Top Wealth Manager.” The magazine has recognized Waller Financial Planning Group as one of the top advisory firms in the United States, and will include the firm in its July/August 2009 issue.
Quote
"If we had no winter, the spring would not be so pleasant; if we did not sometimes taste of adversity, prosperity would not be so welcome.”
- Anne Bradstreet
Inside
A Positive Shift in America’s Values 
The economy’s impact on spending, saving and time
In spite of financial challenges created by the current recession, many Americans have found a sense of happiness and control in how they are spending, saving and managing their time.
In a recent survey entitled “The American Reality Study,” 1,000 Americans ages 25 and older identified their definition of success as “spending quality time with family (88%).” On the contrary, “earning high income (22%)” and “having nice belongings (13%)” were selected least frequently.*
The survey provides evidence that Americans are gravitating toward what they feel is important and makes them happy during the economic downturn. As the American Reality Study indicates, quality time with family transcends possessions and wealth as a top indicator of success. Game nights with friends and dining in with family are again becoming standard weekend activities.
Americans are also focusing more of their time volunteering. Directors from several national non-profit organizations, including AmeriCorps, have reported an increase in volunteerism in recent months. The influx of new volunteers has accelerated community building across the country.
The recession has driven other changes in human behavior as well. More consumers are changing their saving and spending habits. Historically, many Americans lived above their means, as demonstrated by a negative national average savings rate. This standard of living was driven in part by access to credit used to purchase items such as clothing, shoes and cars.
However, as the availability of credit has decreased, excessive spending habits have become a thing of the past . A nationwide survey conducted by Money Magazine indicated that nearly half of those surveyed felt guilty purchasing things they didn’t need.**
As we tighten our belts, we engage in wiser, moderate spending. Beyond cutting credit cards, consumers are increasingly making purchases using cash to help further control their finances and pay down their debt. And, it’s working. According to the Federal Reserve, consumers reduced their debt at an annual rate of 1.5 percent in May. Revolving credit(credit card debt) also decreased 3.7 percent.
Americans are also saving more, which is promising for the future. The report by the Bureau of Economic Analysis in May 2009 showed a 6.9 percent national savings rate – the highest savings rate in 15 years.
America’s return to traditional financial values provides the prospects for a bright economic recovery and strong national financial future. But, will the changes stick?
According to the Money Magazine survey, 94 percent of respondents say that the economy will have a lasting impact on the way they handle their finances.**
We certainly hope they’re right.
What can you do to stay on track?
Always stick to your savings and investment plans. Should you need to make personal adjustments, talk to your financial advisor. Continue to save three to six months of your living expenses for emergencies. And, maintain a budget to help you monitor your spending. Finally, by all means, stay positive!
*American Reality Study Suggests That Quality of Life Is More Important Than Money, Career, Possessions. Northwest mutual. (March 10,2009). Available online at http://www.northwesternmutualnews.com/ index.php?s=43&item=133
**Kadlec,Dan. Changing values: How the crisis is changing you. (May 4,2009). Available online at http://money.cnn.com/2009/05/01/pf/changing_values. moneymag/index.htm?postversion=2009050615
The economy’s impact on spending, saving and time
In spite of financial challenges created by the current recession, many Americans have found a sense of happiness and control in how they are spending, saving and managing their time.
In a recent survey entitled “The American Reality Study,” 1,000 Americans ages 25 and older identified their definition of success as “spending quality time with family (88%).” On the contrary, “earning high income (22%)” and “having nice belongings (13%)” were selected least frequently.*
The survey provides evidence that Americans are gravitating toward what they feel is important and makes them happy during the economic downturn. As the American Reality Study indicates, quality time with family transcends possessions and wealth as a top indicator of success. Game nights with friends and dining in with family are again becoming standard weekend activities.
Americans are also focusing more of their time volunteering. Directors from several national non-profit organizations, including AmeriCorps, have reported an increase in volunteerism in recent months. The influx of new volunteers has accelerated community building across the country.
The recession has driven other changes in human behavior as well. More consumers are changing their saving and spending habits. Historically, many Americans lived above their means, as demonstrated by a negative national average savings rate. This standard of living was driven in part by access to credit used to purchase items such as clothing, shoes and cars.
However, as the availability of credit has decreased, excessive spending habits have become a thing of the past . A nationwide survey conducted by Money Magazine indicated that nearly half of those surveyed felt guilty purchasing things they didn’t need.**
As we tighten our belts, we engage in wiser, moderate spending. Beyond cutting credit cards, consumers are increasingly making purchases using cash to help further control their finances and pay down their debt. And, it’s working. According to the Federal Reserve, consumers reduced their debt at an annual rate of 1.5 percent in May. Revolving credit(credit card debt) also decreased 3.7 percent.
Americans are also saving more, which is promising for the future. The report by the Bureau of Economic Analysis in May 2009 showed a 6.9 percent national savings rate – the highest savings rate in 15 years.
America’s return to traditional financial values provides the prospects for a bright economic recovery and strong national financial future. But, will the changes stick?
According to the Money Magazine survey, 94 percent of respondents say that the economy will have a lasting impact on the way they handle their finances.**
We certainly hope they’re right.
What can you do to stay on track?
Always stick to your savings and investment plans. Should you need to make personal adjustments, talk to your financial advisor. Continue to save three to six months of your living expenses for emergencies. And, maintain a budget to help you monitor your spending. Finally, by all means, stay positive!
*American Reality Study Suggests That Quality of Life Is More Important Than Money, Career, Possessions. Northwest mutual. (March 10,2009). Available online at http://www.northwesternmutualnews.com/ index.php?s=43&item=133
**Kadlec,Dan. Changing values: How the crisis is changing you. (May 4,2009). Available online at http://money.cnn.com/2009/05/01/pf/changing_values. moneymag/index.htm?postversion=2009050615