If you haven't heard, social securities' future has been the hot topic of conversation these days. In a recent survey, 70% of the respondents were worried that social security would remain solvent. The group favored privatizing or adding individual accounts over increasing taxes or raising the retirement age for social security.

The Bush administration has still not provided us with clear direction as to where they are taking social security. Alan Greenspan has favored a lock box initiative regarding these funds. The reality is that most likely, workers under the age of 50 will be given the option to save in private accounts, with a combined 4% contribution between employees and employers. Recent retirees' report 41% of their income is a result of social security payments. The average pension plan contributes 22% to their retirement and a remaining 11% comes from self- directed retirement accounts. It is realistic to anticipate you will need 75% of your current income at retirement, particularly if you will still have a mortgage at that time.

What direction lies ahead? I am in favor of privatized accounts; however: I do think they will present issues. First, most large institutions shun setting up small accounts, which would lead participants to limited choices. The other element that concerns me is the false sense that this saving vehicle should be sufficient for retirement.

Participants need to understand that social security alone does not provide for financial independence in retirement. The "three-legged stool" approach is necessary to insure a happy and comfortable retirement. Social security, retirement/pension plans and personal savings must come together to create the retirement assets necessary to meet your individual needs.

We have all read about the 14-year legal battle between Terry Schiavo's husband and her family. Her case brings to light the need to review your will or trust documents. Have you established medical directives? Do they clearly reflect your current convictions? Terry was only 26, when her medical condition deteriorated. Most 26 year olds don't think about death or permanent disabilities. At this age you may be a new parent or just embarking on a new relationship. In any event it wise to share your wishes not only with your family, but also through some type of living will.

If you have established estate planning documents and feel they accurately convey your wishes, don't stop there. Often times, many well-laid plans run a foul because of improper titling of assets. Your estate plan may direct assets to a trust at the date of death, but the assets may be titled as joint tenancy, which would supercede the trust directives. Communication between your attorney and your financial planner is essential to insure that your wishes are followed through at your passing.

CHART: indices as of the w/e April 1, 2005

As many of you are aware, this year it has been particularly difficult to find value in the market. The numbers above illustrate the direction that the market has taken through the end of March. The major indices remain below the levels that were established in March, 2000.

How do you negate the effects of a down market? This market cycle reflects the need to get back to basics. First, weight all the stocks, bonds & mutual funds in your portfolio. Identify the riskier investment, and rebalance moving into more conservative sectors. This does not mean throw away your equities and move into bonds. Bonds have also had a rough run this year. Most asset classes are down right now. The tried-and-true TIPS and Ginnie Maes, which gave us solid returns last year with minimal risk, are barely holding their own in this market cycle. For those accounts under my management with large market positions, I will be placing a small percentage of funds in market neutral accounts.

Many of my clients found it entertaining that I moved from being quoted in the business section to the front page of the Journal. For those of you that missed it, our little town of Lincoln had a major controversy over canceling the Spelling Bee. Of course, those of you that know me well, know I am always willing to offer up an opinion on almost anything. Well as President of the local PTA, the Journal found my highly opinionated views worthy of front-page press. Our spelling bee controversy was resolved, and yes, it was held. In the future I will try to keep you all entertained and enlightened with my wit and wisdom, whether it be related to finance or parenting.

The Financial Planning Association of Rhode Island will again be hosting the May Savings & Investing Educational Sessions in conjunction with Treasurer Tavares office. There will be two session, each covering the same topics. The dates are as follows:

May 7th - CCRI, Lincoln & May 14th - CCRI Warwick Both sessions begin at 9:00 a.m. with Treasurer Tavares speaking on the RI Pension system. At 9:30, the FPA will present a session on the state of social security and saving for your retirement. The 10:00 a.m. session will be on Identity Theft: "How to prevent it and what to do if it happens to you". These sessions are free of charge and refreshments will be served.

Following the presentations, the FPA will be offering private money mentoring sessions for interested participants. The mentoring sessions run from 10:30 to noon and are by appointment only. Appointments will be established on the morning of the each event. Please share this information with family and friends. The Treasurer is hoping for a solid turnout. For additional information on the event, please visit the FPA's website (www.fpari.org). It should be posted sometime in April.