A Healthy Focus on Finances

Those looking to improve their health and happiness may want to review their portfolio before revving up the treadmill.

A new study suggests that women who actively take control of their finances are healthier and happier than those who don’t. The study, commissioned by Northwestern Mutual, in partnership with LLuminari, a national network of evidence-based health experts, found that women who are proactive in managing their finances are significantly more likely to report that they are:

  • in excellent to very good health,
  • happy,
  • hopeful,
  • optimistic,
  • confident,
  • cheerful and
  • upbeat.

They also are less likely to say they’re worried, regretful, conflicted, disappointed and depressed.

“Being financially secure isn’t only about how much you earn and creating wealth. It’s about what you do with what you have. As the survey indicates, taking steps to control your finances can have great implications for your physical and emotional well-being,’ said Meridee Maynard, senior vice president, Northwestern Mutual. “The first step both women and men can take is to work with a financial professional to identify your goals and build an appropriate personal balance sheet that addresses your risk, investment and spending needs.’

Stress “Test’

According to the study, nearly three-quarters of women place a high importance on financial security, compared to 62% of men. Moreover, the findings show that about half of women who are actively managing their finances are likely to report “far too much stress to somewhat too much stress’ versus more than three-quarters of those who don’t take a proactive approach.

Those findings notwithstanding, overall, women still report higher levels of stress and symptoms than their male counterparts. Moreover, only 14% of women report feeling financially prepared, and are less satisfied than men with the progress they’re making toward meeting their financial goals.

The Northwestern Mutual/LLuminari study included 2,400 individuals who were surveyed online in January 2008. Working with LLuminari’s experts, Northwestern Mutual developed a questionnaire that focused on understanding the link between financial and physical health, if any. Respondents were between the ages of 25 and 69, balanced by gender. All participants have household incomes of $50,000 or more.


For more information, go to http://www.sevenfinancialhabits.com

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iSectors Releases Asset Allocation Models for RIAs

The iSectors ETF-based asset allocation models employ post-modern portfolio theory and behavioral finance.

Independent wealth management firm Sumnicht & Associates, LLC, announced the availability of iSectors Post-Modern Portfolio Theory (Post-MPT) asset allocation models. The model is available for investors through registered investment advisers (RIAs), according to a release.

iSectors offers two Post-MPT Allocation models that provide low correlation to stock and bond markets. The allocations are offered in separately managed account format with various custody options. The company said this model improves upon the traditional post-MPT approach by allocating among asset classes that are much less correlated than traditional capitalization-weighted methodologies.

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“During the current market environment, investment advisers are looking for new, innovative solutions to help their clients’ core portfolios by improving returns without taking on excessive risk,’ said Vern Sumnicht, president and CEO of Sumnicht & Associates. “We’ve seen great success using iSectors in our clients’ accounts and are excited to now offer these allocation strategies to other advisers and their clients.’

The allocation models can also be integrated with a broader outsourcing system. The iSectors allocation models are built into a turnkey asset management platform that also provides performance, allocation, holdings, billing, tax, and other reports.

More information is available at www.isectors.com.


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