Louisville Magazine is Louisville's city magazine, covering Louisville people, lifestyles, politics, sports, restaurants, entertainment and homes. Includes a monthly calendar of events.
Issue link: https://loumag.epubxp.com/i/250528
Special Advertising Section Q: A: What are the benefits of a business line of credit for business owners? Business lines of credit can be used to help small business owners with shortterm and/or seasonal working capital needs, account receivables, inventory fnancing, or cash fow needs. Lines of Credit provide fast access to needed funds. These revolving lines of credit provide funds which can be borrowed, repaid and re-borrowed, depending on your business' specifc needs. Lines of credit are typically used to: • Finance receivables • Purchase inventory • Provide a means to acquire assets fast (i.e. vehicle or special equipment), prior to permanent fnancing — Lisa Butcher, senior vice president and manager of Private Banking, Republic Bank Q: A: What lessons can we learn from 2013? History shows that 2013 was an outlier. Here a couple lessons investors may have to "unlearn" this year: 1. Diversifcation is worthless. A passive, buy-and-hold portfolio of U.S. stocks did very well in 2013, whereas diversifcation, tactical positioning, or hedging generally acted as a drag on returns. Risk management tools like diversifcation tend to beneft investors. 2. Risks are never realized. The key threats of 2013 were not realized: a recession from higher taxes and spending cuts, a default from government brinkmanship over the debt ceiling and a European fnancial crisis. Any of these risks could have resulted in a very diferent outcome. — Mark T. Lamkin, CFP®, MBA, RFC, CEO, Lamkin Wealth Management 60 LOUISVILLE MAGAZINE 2.14 Q: A: What's a safe amount to withdraw from my investments each year? It depends on how long you need your investment to last. The chart below provides examples based on a $500,000 growing investment scenario. Time frames are shorter for a declining investment. Having more guaranteed income can help optimize your overall portfolio. Consider guaranteed income annuities. — Daniel B. Santos, Jr., CLU, MA, Agent, New York Life Insurance Company Yearly Withdrawal Rate Years Money Will Last 5% 32 years 6% 24 years 7% 19 years 8% 16 years 9% 14 years This hypothetical illustration presented is not specifc to the performance of any product and assumes a hypothetical annual return of 6.1%. Taxes, fees, and expenses were not factored into this example. Annual withdrawals adjusted by 3% infation. Past performance is no guarantee of future results.