Five Things to Keep In Mind During the U.S. Debt Crisis

Time is growing short and patience is wearing thin for investors as they contemplate the stalemate in Washington over raising the debt ceiling. As uncertainty over the standoff between Democrats and Republicans has intensified, the volatility in the stock market has ratcheted up accordingly. Many investors are growing increasingly fearful about the potential of a downgrade in the rating of U.S. government debt or, worse, the impact of an outright default. (more…)

What are we doing in our and our client’s portfolios about the debt ceiling debate?

We are not making any adjustments to our or to client portfolios in response to the debt ceiling debate. The market is well aware of the fact that the debt ceiling discussions are ongoing and US Treasury rates are still very low, indicating the market believes the debt ceiling will be increased and that financial market disruptions are unlikely. We believe that efforts to try to move in or out of the stock or bond markets in anticipation of what will happen are not productive.

Even if the worst case scenario materialized and the debt ceiling were not raised it is likely that it would be raised very quickly if there were any subsequent disruptions in the financial markets. Also keep in mind that this is a political technicality more than anything and not an issue with the capacity of the U.S. government to pay its debts.

What is the “debt ceiling” anyway?

This quick presentation from the Washington Post explains what the “debt ceiling” means for the U.S.


Saving Social Security

The need to reform the Social Security system is becoming increasingly more evident as people are living longer and the number of taxpayers per retiree is decreasing. In fact, if you carefully review your most recent Social Security statement, you’ll find a small note:


Most Investors and Smart Investors

Most investors are stressed. They are always looking for the next stock or mutual fund that will make them rich. Smart investors, on the other hand, understand the importance of having a plan, controlling costs, embracing the market, and working with an advisor that puts their interests first.

Watch the video below to learn more.

Just Ignore the Crisis of the Day

Libya, Egypt, Japan, the Dow moving up, the Dow moving down, taxes, energy supply… Every day there seems to be something that impacts our peace of mind. Carl Richards, in the New York Times has a simple advice: Just ignore it.

Using his Sharpie and a napkin, he explains why. Here’s the complete story.

LFA Congratulates Suzanne Lindau


El Paso, Texas, February 9, 2011 –Lauterbach Financial Advisors congratulates Suzanne Lindau, the firm’s Investor Advisor Associate in charge of Client Services, for receiving the Personal Financial Specialist (PFS) designation from the American Institute of Certified Public Accountants (AICPA).


Lauterbach’s Sonnen Among Elite Group at Advanced Financial Planning Conference

LAS VEGAS (January 19, 2011) — Jon Sonnen, CPA/PFS with Lauterbach Financial Advisors, gained enhanced education on investments, insurance, tax, estate, retirement and elder planning from some of the world’s foremost experts on those issues at the Advanced Personal Financial Planning Conference held January 9-12 in Las Vegas.


The High Cost of Bad Advice

When you interview potential financial advisors, you should look for the advisor who gives the best advice and is the best fit for you. The best advisors begin earning their fee from the day they are hired by helping you determine your most appropriate asset allocation, according to your unique ability, willingness and need to take risk (what we call “risk personality”). This is what we do with every single investor who becomes a client.


Investment News Names David Booth as part of The Power 20 for 2011.

David Booth, Co-CEO of Dimensional Fund Advisors has been named among “The Power 20 for 2011” by Investment News, a trade publication.
“The Power 20” is a group of regulators, industry leaders, and legislators that the publication believes that will influence the financial services industry in the year that just started.
Among others named in the list are included: Mary Schapiro (head of the SEC), legislators Sen. Tim Johnson and Rep. Spencer Bachus and Ben Bernanke.

You can access the complete “Power 20” list HERE (Free Registration Required).

David Booth is profiled HERE (Free Registration Required).

To see a video featuring David Booth explaining the story of DFA, please click HERE.