“Never allow the fear of striking out keep you from …...retirement plan for 2015. SEP IRA plans may be established until the tax-filing deadline (generally April 15) plus extension

Here are selected rate of return numbers year to date as of 09/30/15*

(Source: Morningstar) *Inclusion of these indexes is for illustrative purposes

only. Keep in mind that individuals cannot invest directly in any index, and

index performance does not include transaction costs or other fees, which will

affect actual investment performance. Individual investor’s results may vary.

Past performance does not guarantee future results.

Dow Jones Industrials -6.95%

S&P 500 Index -5.29%

NASDAQ Composite -2.45%

MSCI World (ex. U.S.) in U.S. dollars -6.69%

Russell 2000 -7.73%

Russell 1000 Value Index -8.96%

Russell 1000 Growth Index -1.54%

Russell 3000 TR USD -5.45%

Barcap Intermediate Treasury +2.06%

Barcap Aggregate +1.13%

Large-Cap Growth +0.09%

Large-Cap Value -7.75%

Small-Cap Growth -4.30%

Small-Cap Value -11.11%

Bob and Sharon Ray retired at the same time a number of years ago. Had it not been for Bob Ray’s boss, who was driving him out of his mind, the 70-year-old might have stuck it out a little longer. Instead he left the workforce at 55. His wife, Sharon, on the other hand, missed work almost immediately after retiring at age 56. “A lot of who you are is wrapped up in what you do, and I had pretty substantial jobs in my career,” says Sharon Ray, 71, who was an executive for several IT companies and founder of Verity, Inc., one of the first online search engines. “Suddenly, I went from being reasonably important to unimportant. It’s hard on your ego.” Exacerbating matters, the couple spends part of the

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FOURTH QUARTER | 2015

FINANCIAL UPDATE

Major Bond Indexes

Mutual Funds (Morningstar)

HOW TO LIVE WELL AFTER RETIREMENT AGE

“Never allow the fear of striking out keep you from playing the game.” - BABE RUTH

year in Hilton Head, South Carolina, where Sharon Ray said a number of retired professionals settle, but “no one talks about what they did (professionally). It’s like you didn’t have a life before you retired. You work real hard to get to a certain place in your career, get there, then boom, it’s gone.” In 1950, about 26 percent of those 65 or older were still working, but over the years, due to Social Security, Medicare and other factors, that number fell sharply. By 1985, only 10 percent of Americans 65 or older were working full or part-time. But that’s changing. Today, nearly 19 percent (or one in five) Americans 65 or older are working. People cite

financial needs, health care coverage and personal enrichment as the main reasons they work into their retirement years, according to AARP studies over the past 15 years. Among some of those who do not retire altogether, the transition can be a culture shock of sorts, said Loretta Bradley, a member and former president of the American Counseling Association. Calling retirement another stage of life, Bradley said those who no longer have a career yet want to be

involved might consider what they can do that will increase their feeling of self-worth. That could mean joining a book club, volunteering at a local school or meeting others and challenging your cognitive skills. “More and more people, when they retire, are re-imagining themselves into a different type of activity; it’s like a new stage of life, new activities and outlooks,” Bradley said. You see this a lot, added Richard Johnson, director of the Urban Institute’s Program on Retirement Policy: People report they like going to work for that sense of engagement; the idea that they’re doing something meaningful.” Which is why retirement is becoming a more gradual process, Johnson says. Consequently, individuals increasingly are segueing into part-time work—perhaps with the same employer—and phasing into retirement,” he said. Unexpected Financial Issues Among those couples who retire, hassles like rush-hour traffic and deadlines are usurped by financial issues, foremost of which are unexpected major health care expenses, inflation cutting into their savings, reductions in social security benefits, and outliving their savings, according to a study from Fidelity Investments. Sharon Ray described the prospect of losing regular salaries as “pretty scary” and said she and her husband discussed their looming financial position in retirement with a friend, who was a financial advisor. The couple found solace in the fact that her husband had guaranteed retirement income because he’d worked for the government for 30 years, not to mention her significant stock equity from a tech firm she’d founded. Her husband eventually assumed management for the couple’s finances after they retired. “He’s researched investing ever since we retired, and he’s managed our money.



It’s worked out well.” In fact, the couple no longer relies on a financial advisor. Yet Bradley prescribed caution to others considering this route: “Trying to manage one’s own investments is (an individual’s) decision, but certainly if I were doing that, I’d get a second opinion from a rational, conscientious problem-solving advisor, who will be less emotionally involved. “Sometimes, emotions can cause an investment to go “in a certain direction,” and when you think with emotions rather than cognitively, that can spell trouble,” he added.

Retirement Wouldn’t Mean Starvation

Jerry McFaul was ready to retire from his government position as a computer scientist at the U.S. Geological Survey after about 31 years, but he didn’t want to do anything crazy until he ascertained, based on his projected income, that he and his wife, Lucy, “wouldn’t

starve.” However, his wife, 63, decided to remain in her

job as a dental hygienist two days a month. “We’re

fortunate in the sense that we had our retirement plans

and social security that provided a constant level of

(income) that would support a not very big change in

our lifestyle,” said Jerry McFaul, 70.

Of course, plenty of couples like doing things together

after they retire , but Dee Cascio, a couple’s therapist

who has written about retirement, believes one thing

they should do is retire separately. That way, one can

have the experience of easing into their retirement

lifestyle while the other continues to work, Cascio said,

and “can then begin to explore and plan for how the

second spouse will integrate their own retirement lifestyle

plans into theirs and then merge the two.”

Couples need a “yours, mine and ours lifestyle plan,” Cascio said. “It’s not healthy for either one to accept responsibility for the other. Each spouse should be able

to stand on their own as well as have joint activities

that they enjoyed together. They should maintain their

autonomy in the relationship.”

Lucy McFaul said she and her husband, who reside in Reston, Virginia, eventually worked it out. “One of the things with my job, I had crazy hours; I almost worked like a nurse. Two days a week, I worked from about 2 p.m. to 9 p.m., so it wasn’t a problem because I had the morning off and could go grocery shopping when it wasn’t crowded.” Prior to her husband’s retirement, Lucy McFaul had Wednesdays and Thursdays off, which meant time for herself. Once he left the workforce, she had to get used to it. “Some people don’t mind it, but I think women, a little more than men, like time for themselves. In the beginning, it was hard for me to give up.”



But the McFauls adjusted, with Lucy McFaul volunteering and her husband consulting. “For us, it works,” she said. Source: Chuck Green, Moneywise Image: Getty

A growing number of voices in the media today proclaim the superiority of passive, or index, investing over active management. Active managers consistently outpace market indexes, they say, so most individuals would be better off investing their assets in passive strategies and accepting average results. Indeed, active managers on average have beaten their benchmarks less than half the time. (See chart below). But there is a problem with averages. The fact that the average person can’t dunk a basketball doesn’t mean no one can. “The average active manager can’t beat the index. But, not all managers are average.” _______________________________________________ _______________________________________________ For the 20 calendar years ended December 31, 2014, the universe of U.S. equity activity managers, on average, outpaced the S&P 500 about 41% of the time.



YOU DON’T HAVE TO SETTLE FOR AVERAGE

BY THE NUMBERS

BY THE NUMBERS

BOOMERANG GENERATION—15% of young adults aged

25-34 had moved back home and were living with their

parents in 2014. Just 10% of children in this age bracket

were living with their parents 30 years earlier in 1984.

Source: Census Bureau

BEHAVING DIFFERENTLY—For every $1 increase in the

value of a private residence during the 2002-06

housing boom, households with credit scores no more

than 600 borrowed and spent 40 cents. For every $1

increase in the value of a private residence during the

2002-06 housing boom, households with credit scores

of 900 borrowed and spent 16 cents.

Source: Chicago Booth School of Business

TAXES—54.7% of the American taxpayers (51.2 million

out of 93.6 million returns) that reported adjusted gross

income less than $50,000 during tax year 2013 legally

did not pay any federal income tax.

Source: Internal Revenue Service

Morningstar and other objective sources have produced research showing that the select active managers, including the American Funds, have generated higher returns than market indexes over time with reduced volatility. Choosing the right active managers can have a powerful impact on outcomes for investors. An active advantage can be even more powerful in retirement, when inves-tors are no longer earning a paycheck to provide a cush-ion during market extremes. Rather than focusing on short-term results, we believe it is critical for investors to work closely with an advisor who uses a robust due diligence process to identify such select active managers. Source & Image: American Funds Data from Morningstar

12/31/2015—Last day to sell securities to realize a gain or loss. 12/31/2015—Last day to establish a qualified retirement plan for 2015. SEP IRA plans may be established until the tax-filing deadline (generally April 15) plus extension. 12/31/2015—Last day to complete charitable contributions for 2015. (Be sure to allow enough time to complete donations that may require additional time).

01/15/2016—Fourth estimated payment for 2015 is due. 01/31/2016—Deadline for employers to send W-2s and 1099s to individuals. 02/17/2016—Deadline for financial institutions to send 1099s to individuals. (Delayed 1099s will be sent 30 days after). 04/15/2016—Deadline to file individual income tax return or file an extension with the IRS. 04/15/2016—Last day to contribute to traditional and Roth IRAs for 2015.

Please join us at the Heathman Hotel on Thursday, December 10th from 5:30 p.m. until 8:30 p.m. for an evening of mingling and merriment. Light hors d’oeuvres and wine will be served. Mark your calendars! Valet parking will be provided. Watch for your invitation in the mail with more details. We look forward to celebrating the season with you!



KEY TAX DATES TO REMEMBER FOR 2015

HOLIDAY PARTY

Kathleen will be traveling to California in November for

an American Funds Due Diligence Conference. While

there, she will be meeting with out-of-state clients.

Kathleen will be attending the Advanced Planners Conference in Colorado with fellow Raymond James members in December to discuss practice management, best practices, and investment strategy.

We will be closed for the holidays to be with our families for the following days: November 26th & November 27th December 24th & December 25th January 1st

Image: Getty

We would like to remind you that in the event you are unable to speak

with someone at our office, you can contact Raymond James Client

Services directly for assistance with your accounts at (800) 647-7378.

We want to thank those of you who have referred your associates,

clients, family members and friends to us. Your referrals are personally

and professionally the most satisfying way for our practice to grow.

Miller Advisors, Inc. is a SEC Registered Investment Advisor. The information

contained in this report does not purport to be a complete description of

securities, markets, or developments referred to in this material. The

information has been obtained from sources considered to be reliable, but we

do not guarantee that the foregoing material is accurate or complete.

Expressions of opinion are as of this date and are subject to change without

notice. Past performance does not guarantee future results.

If you have any questions or feedback regarding the newsletter, please contact

Kristen Perrin and let her know how we can improve our communication with

you.



STAFF NEWS

Please contact us at 425.822.8122 or by email.

Be sure to include more than one email address to

ensure a prompt response.

Kathleen Miller

[email protected]

Nicole Miller

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David Simpson

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Judy Chambers

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Kristen Perrin

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HOLIDAY OFFICE CLOSURES

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“Never allow the fear of striking out keep you from …...retirement plan for 2015. SEP IRA plans may be established until the tax-filing deadline (generally April 15) plus extension