Thursday, December 1, 2011

What Clients can Learn from the Four Worst Market Calls Ever

I came across this article and thought it was in line with my way of thinking in regard to people who hold themselves out to be market gurus. However foolish it may be, there are always those who like to believe they really are above being laid low by changes in the market they didn't anticipate. For those of us with a bit more humility, these examples tend to vindicate our judgement, even though they had terrible consequences for the media proclaimed gurus and their followers.

This article was written by Dan Richards for Advisor Perspectives on November 15, 2011.

Bad investment advice can come from many sources, but perhaps none has been worse than what was offered by four experts whose media profile exceeded their investment acumen: Irving Fisher, Joe Granville, Robert Prechter and Henry Blodget.

Here’s some historical context and practical advice to help clients avoid the trap of listening to the gurus who dominate newspaper headlines.

Four sad stories

In the 1920’s, Yale’s Irving Fisher was a household name in America and by far its best known economist; his pronouncements regularly made front-page headlines. Three days before the crash of 1929, he famously announced that “stock prices have reached what appears to be a permanently high plateau” – and for months after the crash, maintained that a recovery in stock prices was imminent.

In 1980 and 1981, Joe Granville’s investment seminars drew packed audiences and his predictions caused major one-day moves in the market. He even predicted that he would win the Nobel Prize in economics and on one occasion literally walked on water, as he made his entrance strolling across a swimming pool that he’d had filled with concrete.

But according to Hulbert Report that tracks the performance of investment newsletters, from 1980 to 2005 The Granville Letter was dead last among American newsletters, with investors who followed its advice losing 95% of their capital.

In 1987, Elliott Wave proponent Robert Prechter told clients to sell in advance of “Black Monday.” He’s been dining out on that call ever since, in the process told his readers to stay on the sidelines throughout the record bull market of the 1990s.

And in 2000, Merrill Lynch tech guru Henry Blodget predicted that tech valuations would continue to climb – and backed up his words by putting his personal net worth on the line, most of which quickly evaporated.

The media’s agenda is different from yours

Last summer, the New York Times examined why the media consistently provides a platform to financial gurus with extreme, often simplistic (and sometimes simple-minded) views.

The answer was simple – middle of the road, consensus thinking is boring; it’s much more interesting to have a guest with provocative, unconventional opinions. That’s led to a body of “they never saw a mike they didn’t love” experts in the field of politics and investing, opining on events of the day. Sometimes called media hounds or the less complimentary media whores, these experts can be omnipresent.

Very few of these media gurus manage meaningful amounts of money; often their biggest asset is their reputation. But that doesn’t prevent clients who watch their interviews from getting worked up and potentially deflected from their plan.

So if we recognize that most of these experts’ impact on clients is neutral at best and can in fact do significant damage, the question is what to do about it.

Bringing facts and reason into play

Just telling clients to ignore these gurus won’t typically work – the very fact that they are given a media platform, deserved or not, gives them credibility.

That’s why I was struck by the reasoned, fact-based approach to this topic in a video by industry veteran and Columbia professor Michael Mauboussin. A repeat winner of Institutional Investor’s All-America research team, he has served as chief US investment strategist at Credit Suisse First Boston and is currently chief investment strategist for Legg Mason Capital Management

Mauboussin points to research proving that expert predictions do not beat the market, and that there is even a negative correlation between media profile and accuracy – the higher an expert’s media profile, the worse they do.

This video lasts three minutes. For those looking for a more in-depth perspective, here is a 30-minute interview with Mauboussin.

You could share these videos with clients who ask about views they’ve seen on television – or strike a pre-emptive blow by sending the links to all your clients. While you can’t control what your clients see on television, you can try to influence how they’ll respond.


Dan Richards is a top-rated presenter at advisor conferences and an award winning instructor in the MBA program at the University of Toronto, as well as author of Getting Clients Keeping Clients: The Essential Guide for Tomorrow’s Financial Advisor. To learn more about his conference keynotes and workshops, email

Sunday, November 20, 2011

The Desolate Wilderness and This Fair Land

I usually write the bulk of the material that appears on my blog, but every now and then I feature other authors who have a flair for great writing. This is a piece that is an annual ritual in a national publication that corresponds with the Thanksgiving Holiday season. It does a nice job of reminding the reader of the reasons to be thankful and to whom we owe that gratitude. I hope you enjoy it

The Desolate Wilderness

Here beginneth the chronicle of those memorable circumstances of the year 1620,as recorded by Nathaniel Morton, keeper of the records of Plymouth Colony, based on the account of William Bradford, sometime governor thereof:

So they left that goodly and pleasant city of Leyden, which had been their resting place for above eleven years, but they knew that they were pilgrims and strangers here below, and looked not much on these things, but lifted up their eyes to Heaven, their dearest country, where God hath prepared for them a city (Heb. XI, 16, and therein quieted their spirits. When they came to Delfs-Haven they found the ship and all things ready, and such of their friends as could not come with them followed after them, and sundry came from Amsterdam to see them shipt, and to take their leaves of them. One night was spent with little sleep with' the most, but with friendly entertainment and Christian discourse, and other real expressions of true Christian love.

The next day they went on board, and their friends with them, where truly doleful was the sight of that sad and mournful parting, to hear what sighs and sobs and prayers did sound amongst them; what tears did gush from every eye, and pithy speeches pierced each other's heart, that sundry of the Dutch strangers that stood on the Key as spectators could not refrain from tears. But the tide (which stays for no man) calling them away, that were thus loath to depart, their Reverend Pastor, falling down on his knees, and they all with him, with watery cheeks commended them with the most fervent prayers unto the Lord and His blessing; and then with mutual embraces and many tearsthey took their I leaves one of another, which proved to be the last leave to many of them.

Being now passed the vast ocean, and a sea of troubles before them in expectations, they had now no friends to welcome, them, no inns to entertain or refresh them, no houses, or much less towns, to repair unto tb seek for succour; and for the season it was winter, and they that know the winters of the country know them to be sharp and violent, subject to cruel and fierce storms, dangerous to travel to known places, much more to search unknown coasts. Besides, what could they see but a hideous and desolate wilderness, full of wilde beasts and wilde men? and what multitudes of them there were, they then knew not: for which way soever they turned their eyes (save upward to Heaven) they could have but little solace or content in respect of any outward object; for summer being ended, all things stand in appearance with a weatherbeaten face, and the whole country, full of woods and thickets, represented a wild and savage hew. If they looked behind them, there was a mighty ocean which they had passed, and was now as a main bar or gulph to separate them from all the civil parts of the world.

This Fair Land

Anyone whose labors take him into the far reaches of the country, as ours lately have done, is bound to mark how the years have made the land grow fruitful. This is indeed a big country, a rich country, in a way no array of figures can measure and so in a way past belief of those who have not seen it. Even those who journey through its Northeastern complex, into the Southern lands, across the central plains and to its Western slopes can only glimpse a measure of the bounty of America.

And a traveler cannot but be struck on his journey by the thought that this country, one day, can be even greater. America, though many know it not, is one of the great underdeveloped countries of the world; what it reaches for exceeds by far what it has grasped.

So the visitor returns thankful for much of what he has seen, and, in spite of everything, an optimist about what his country might be. Yet the visitor, if he is to make an honest report, must also note the air of unease that
hangs everywhere.

For the traveler, as travelers have been always, is as much questioned as questioning. And for all the abundance he sees, he finds the questions put to him ask where men may repair for succor from the troubles that beset them.

His countrymen cannot forget the savage face of war. Too often they have been asked to fight in strange and distant places, for no clear purpose they could see and for no accomplishment they can measure. Their spirits are not quieted by the thought that the good and pleasant bounty' that surrounds them can be destroyed in an instant by a single bomb. Yet they find no escape, for their survival and comfort now depend on unpredictable strangers in far off corners of the globe.

How can they turn from melancholy when at home they see young arrayed against old, black against white, neighbor against neighbor, so that they stand in peril of social discord. Or not despair when they see that the cities and countryside are in need of repair, yet find themselves threatened by scarcities of the resources that sustain their way of life. Or when, in the face of these challenges, they turn for leadership to men in high places-only to find those men as frail as any others.

So sometimes the traveler is asked whence will come their succor. What is to preserve their abundance, or even their civility? How can they pass on to their children a nation as strong and free as the one they inherited from their forefathers? How is their country to endure these cruel storms that beset it from without and from within?

Of course the stranger cannot quiet their spirits. For it is true that everywhere men turn their eyes today much of the world has a truly wild and savage hue. No man, if he be truthful, can say that the specter of war is banished. Nor can he say that when men or communities are put upon their own resources they are sure of solace; nor be sure that men of diverse kinds and diverse views can live peaceably together in a time of troubles.

But we can all remind ourselves that the richness of this country was not born in the resources of the earth, though they be plentiful, but in the men that took its measure. For that reminder is everywhere in the cities, towns, farms, roads,
factories, homes, hospitals, schools that spread everywhere over that wilderness.

We can remind ourselves that for all our social discord we yet remain the longest enduring society of free men governing themselves without benefit of kings or dictators. Being so, we are the marvel and the mystery of the world, for that enduring liberty is no less a blessing than the abundance of the earth.

And we might remind ourselves also, that if those men setting out from Delftshaven had been daunted by the troubles they saw around them, then we could not this autumn be thankful for a fair land.

These editorials have appeared annually in the Wall Street Journal since 1961.


John H. Kaighn

Jersey Benefits Advisors

Thursday, October 13, 2011



At the risk of sounding like a broken record, when you look back at market performance for the third quarter, you can’t help but realize the litany of investor concerns were quite similar to the worries of the first two quarters of 2011. Unemployment stuck at 9.1%, global unrest, natural disasters and the European sovereign debt crisis, especially in Greece, seemed to be the recurrent themes causing investor angst. Unfortunately, the market indices were unable to mount the end of quarter surge that provided some relief during the first two quarters, and the market indices took a tumble in the third quarter, leaving them teetering near bear market territory.

Of course, Congress did not disappoint with their political partisanship exhibited during the August debt limit debacle. Their inability to develop a credible solution to the country’s fiscal situation, and the President’s inability to propose anything other than tax increases on the “so called rich” and more spending led to a downgrade by S&P on US debt. Of course, S&P may have had just a slight reason to play gotcha, since their ratings of mortgage backed securities and collateralized debt obligations during the housing boom have been called into question by Congress and the President.

It looks like we might be stuck in this current range for the markets until the 2012 elections are over unless the super committee, which was born out of the debt limit crisis, can come up with some recommendations for trimming the deficit and getting our fiscal house in order. If they don’t, $1.2 trillion across the board spending cuts will be implemented. The clock is ticking, as their deadline is November 23.

It gets extremely frustrating when you listen to the rhetoric of our leaders and realize their utter cluelessness at how their inability to compromise affects the markets. They talk about helping main street, yet they fail to realize the markets contain the retirement assets of most of the citizens of this fair land. In his testimony before Congress’s Joint Economic Committee, Ben Bernanke, Chairman of the Federal Reserve, stated, ”Political brinksmanship over the debt ceiling is no way to run a railroad”. Too bad Congress doesn’t get it, regarding the effect of their inaction on market sentiment.

The Dow Jones Industrial Average* closed the quarter at 10,913.38 down 12% for the quarter and a –5.74% return for the year. The S&P 500* ended the quarter at 1,131.42 a –10.04% year to date return and off 14% for the quarter. Meanwhile, the NASDAQ* finished the quarter at 2,415.40 having fallen 13% for the quarter and –8.95% for the year. As uninspiring as these results are, the market indices have not crossed into bear market territory as we go to print on 10/6/2011. Even though there have been some harrowing events in October, the crashes of 1929 and 1987 come readily to mind, Jeff Hirsch, editor in chief of Wiley’s Stock Trader’s Almanac states, “Going back to 1950, September has had a greater average loss than October”. Furthermore, according to research by Bank of America Merrill Lynch, since 1964 there have been 15 quarters in which the S&P 500 lost 10% or more. After12 of those 15 quarters, the subsequent quarter saw an average rally of 10%. Let’s hope the odds are in our favor going forward, and that there are some adults in the room during the super committee’s debate on deficit reduction.

If you have any questions or concerns, please don’t hesitate to contact me.


Most economists are not predicting a “double dip recession”, but it is a topic currently being discussed. I have heard odds of anywhere between a 20% chance of it happening, to the point where some people are saying we are already in recession again. If you remember in the past, we discussed an inverted yield curve as a recessionary indicator. At the current time the Fed is attempting to lower long term interest rates and flatten the yield curve, since it now has a positive slope.

While it is possible for the economy to slip into recession with a positive yield curve, I don’t think we will see a double dip. Businesses will be reporting their earnings in the next few weeks, and it will be positive for the markets. There is just too much doom and gloom, so I’m a contrarian on the double dip.

A Familiar Chart?
Dot Com Bust!
Housing Bust!



At the September FOMC meeting the Federal Reserved stated the economy was facing headwinds and interest rates would remain low. They also announced Operation Twist, one of the tools at the Feds disposal to put pressure on long term interest rates. This tool was last used in the 1960’s and gets its name from Chubby Checker’s hit of that era, The Twist. Basically, the Fed will be selling short term bonds from the Treasury and replacing them with longer term bonds with maturities between 25 and 30 years.

The Fed will be competing with individual and sovereign bond buyers, so the objective is to increase the price of longer term bonds, which in turn lowers the yield. Besides lowering long term interest rates, the Fed is also hoping investors will move their assets into higher risk investments. Recently, investors have been fleeing riskier investments for the perceived safety of Treasuries. They have been willing to park their money in an investment with no return, in order to prevent losses. This creates risk too, because bonds purchased at a premium can fall in price and produce a loss.


We have partnered with ORG, Inc. to develop and market an online life insurance quotation system that allows individuals to enter their information and receive competitive quotes from major insurance carriers online. In most cases the application can also be completed online. There is also a direct toll free line to speak to a customer service representative, as well as an email link to ask questions or receive assistance with the quotation or application process. The quotes can be obtained from our Jersey Benefits Group, Inc. Website, or the Jersey Benefits Life Insurance Website. For people who wish to complete the process of applying for life insurance totally on their own, and like to evaluate numerous quotes independently before applying, this site should satisfy their needs. Quotes are free and no money is exchanged until the individual is approved for the policy quoted.

Of course, anyone who is interested in talking to an insurance advisor, who will meet with them in the traditional face to face manner, simply needs to contact the company either by telephone or email to set up an appointment. Through the ORG network, we can assist individuals outside the state of NJ to locate insurance professionals who can meet with them face to face. The toll free number to call, outside NJ, is (855) 802-4123 and the email address for those outside NJ is Anyone in the state of New Jersey can contact me directly for their insurance needs at (609) 827-0194 or by email




Investment Advisory Services offered through:
Jersey Benefits Advisors
P.O. Box 1406
Ocean City, N.J. 08226
Phone: 609 827 0194
Fax: 609 861 9257

Securities offered through:
Transamerica Financial Advisors, Inc.
A registered Broker/Dealer
570 Carillon Parkway
St. Petersburg, FL 33758-9053
Transamerica Financial Advisors, Inc. is
not affiliated with Jersey Benefits Advi-

Third Party Administration and Insurance
Services offered through:
Jersey Benefits Group, Inc
P.O. Box 1406
Ocean City, N.J. 08226
Phone: 609 827 0194
Fax: 609 861 9257

All opinions expressed in this newsletter are
solely those of John Kaighn & Jersey Benefits Advisors.

LD41861 - 10/11

Monday, September 26, 2011

The Monday Morning Quarterback Is Alive and Well

Trying to get a handle on the deluge of information constantly bombarding investors on a daily basis is a daunting task, to say the least. This morning I had the distinct pleasure of hearing a sports reporter, who was reporting on Michael Vicks' broken hand, launch into a dissertation about how sports serve as a distraction for the "disasterous state of our economy, the horrendous jobs situation and polarized politics". Well, no duh! However, is it appropriate for a sport's announcer to utilize negative and potentially inflammatory language about the economy on a Monday morning?

Anyway, as the campaign season heats up in earnest, Obama is already stumping for the 2012 election, while the Republicans continue to try to convince voters to get behind an "electable candidate". The two front runners have written books recently, both of which have remarks towards Social Security which can be utilized by the Democrats to sway voters. Meanwhile, the economy and employment, issues which we are told are priorities of both parties, will not see any significant legislative action for the foreseable future. The reasons being the Democrats hope to paint the Republicans as standing in the way of job growth, by not adopting Obama's new "jobs program", and the Republicans hope to convince voters the blame belongs to Obama for 9% unemployment from "failed stimulus plans" and trillion dollar deficits. Of course, there is the possibility that a lack of any government fiscal intervention might actually allow the economy to limp along and begin to repair itself.

Thanks to a swift and effective move by the Swiss to intervene in their currency when traders were moving to the Franc as a safe haven due to the rout of the Euro, the dollar has strengthened significantly. Gold, silver and other commodities have taken it on the chin as the dollar has once again become a safe haven for investors worried about worldwide demand slowing. Many emerging markets are in bear market territory as the week begins, and economists are all over the place in handicapping a new recession, or "double dip". Hopefully, the Eurozone will strengthen their political union enough to agree to sell bonds, which will backstop Greece and the rest of the PIIGS.

On the home front, I can't help but ask when we will finally unleash a credible energy plan utilizing natural gas, uranium and coal to put people back to work. We've seen the result of the government trying to pick technologies, as evidenced by Solyndra debacle and it doesn't work. I am not saying abolish the EPA, but I am saying we might be able to postpone some of the drastic steps we need to take to "save the planet" until our economy is functioning better and our energy sources are not quite as precarious. While we are at it, we could also evaluate if our response to 9/11, while a complete and utter success, might not have given al Qaeda more credit as a threat to the US than they actually turned out to be. Balance is what we need going forward.

John H. Kaighn

Jersey Benefits Advisors

Tuesday, September 20, 2011

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(609) 827-0194

Jersey Benefits Advisors

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Tuesday, August 30, 2011

August: The Quiet Month?

Needless to say, it has been an eventful end of August on the East Coast, with an earthquake, hurricane and tornado warnings. Hurricane Irene came and went and left Cape May County pretty much intact, minus a few cubic yards of beach sand and some toppled trees. I know there was quite a bit of grumbling about the mandatory evacuation being overkill, and I thought that myself at first, but had the eye of the storm been out to sea a bit more or gone up the Delaware Bay, I think I would have been chest high or worse in water in my living room. Had people stayed, and the worst case scenario happened, there might have been some serious injury, especially in the ranks of the tourists who swell our population exponentially at this time of year. You just have to look north and west for evidence.

Having worked in a school system for a major portion of my life, I equate the purpose and intent of the evacuation with a fire drill. This was the opportunity for the governor and emergency management officials to err on the side of caution and see if the evacuation plans for removing approximately one million people from Cape May County would work. I have to say it did work quite well, even though I know quite a few of the locals, myself included, did remain and the Bull and Bear Tavern was quite packed Friday night. It helped to know I live on just about the highest ground in the county and the area shelter was literally right around the corner!

Speaking of bulls and bears, the month of August, traditionally a time for vacation, has been full of activity and debate. A 17.9% drop in the S&P 500 took us well beyond a correction and very close to bear market territory. However, there has been a rebound off the low of 1,119.46 to 1,210.08 as we prepare for the Labor Day weekend. The aforementioned natural calamities also added to the show. Of course, the politicians exhibited their expertise by taking the debt ceiling debate down to the wire and generating a debt downgrade. Now the Fed, which just ended its meeting in Jackson Hole, announced it effectively can't do much more with monetary policy and that fiscal policy is the solution to our ills. That leaves things to the "Super Committee" born out of the debt ceiling debate. It looks to be an interesting September.

Wednesday, August 10, 2011


Unimpressed with U.S. deficit reduction plans, S&P delivers on its warning.

Presented by John H. Kaighn

Unprecedented and unsettling. Standard & Poor’s issued a historic downgrade of U.S. debt on August 5, sensibly waiting until the market week had concluded to send a shock wave toward global investors. It reduced America’s long-term debt rating – which had been AAA since 1941 – to AA+(1)

S&P felt Congress did too little too late. The credit rating agency had threatened to lower the boom if Congress passed any deficit reduction plan smaller than $4 trillion in scope. The Budget Control Act of 2011 “falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics,” an S&P statement noted. It also retained its “negative” credit outlook on the U.S. (2)

S&P is also skeptical that the federal government can collect more money from taxpayers. Its analysts do not think the Bush-era tax cuts will sunset at the end of 2012 “because the majority of Republicans in Congress continue to resist any measure that would raise revenues.” (2)

On August 5, S&P sovereign ratings committee chair John Chambers told Fox News that the new AA+ rating could be cut to AA within 6-24 months if the U.S. doesn’t arrange to slash $4 trillion from its deficit in the next decade. The implication: Congress better agree on more cuts by February. (3)

China’s comments. The world’s largest holder of U.S. debt issued a withering critique of Congress through Xinhua, its official news agency. The state commentary stressed that the U.S. has a “debt addiction” only curable via major cuts to defense spending and entitlement programs. It also said that the option of a “new, stable and secured global reserve currency” should be explored. (4)

The Treasury’s claim. Friday evening, the Treasury argued that S&P’s analysis contained an accounting error that unnecessarily added $2 trillion to its projection of U.S. debt. S&P admitted the error but stuck with the downgrade. (1)

So what happens now? The early August global response aside, analysts are divided as to what the short-term impact might be for the American economy. Could it cripple the recovery, or just prove inconvenient to it?

Demand was big for Treasury notes even before the threatened downgrade and Treasuries still symbolize comparative safety to institutional investors, so an August selloff might be short-lived. If this turns out to be the case, the effect on interest rates might be less significant than feared.

In the opinion of JP Morgan Chase analysts, Treasury yields could increase by 60-70 basis points as a result of the downgrade, translating to $100 billion in added annual borrowing costs for America. Citing Federal Reserve research, these analysts think that an increase of 50 basis points in Treasury yields (0.5%) could take a 0.4% bite out of U.S. GDP. (2)

Could the Fed launch QE3*? The possibility exists, particularly if foreign investors ditch dollar assets. The Fed’s Open Market Committee will make an announcement on August 9, and few analysts expect another wave of bond buying – but it is an option.

When might the U.S. recapture its AAA rating? It might take years for that to happen. S&P has cited political gridlock on Capitol Hill as a major reason for the downgrade, and it doesn’t see that going away in upcoming months. On top of that, the U.S. economy expanded just 1.3% in the first half of 2011 - about half the pace needed to dispel the lingering effects of recession. (5)

Are mortgage rates going to go north? Maybe; maybe not. Rates on conventional mortgages have a direct relationship with 10-year Treasury yields. Recently, those yields have dramatically fallen, and demand for longer-term Treasury notes has been palpable. Interest rates on auto loans might see a spike, as those rates are pegged to 2-year notes and factors like the LIBOR rate. The hardest hit might come from credit card issuers. Credit card interest rates reflect the prime rate. credit card advisor Beverly Blair Harzog told CNNMoney that she believed credit card firms could possibly jack up rates 1-5% as a result of jitters over the downgrade. (6)

Wall Street might sail through this. Does that sound far-fetched? Look at some historical examples. S&P downgraded Canada’s AAA credit rating in the spring of 1993, yet Canadian stocks gained 15% in 1994 and our northern neighbor had its AAA rating back by 1997. Moody’s Investors Service downgraded Japan in November 1998 and its stock market advanced more than 25% in the next 12 months. Italy, Canada, Ireland, Japan, Belgium and Spain have all suffered S&P downgrades from AAA, and most of these cuts had little sustained impact on government bond yields. (6,7)

What’s your outlook? You might be considering some major moves in the wake of the S&P decision. Remember that impulsive decisions are often regretted down the line. Confer with the financial professional you trust to determine what you may (and may not) want to do.

John H. Kaighn may be reached at (609) 827-0194 or

Jersey Benefits Group, Inc.

This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.

* Quantitative Easing [round] 3

1 - [8/5/11]2 - [8/5/11]
3 - [8/6/11]
4 - [8/6/11]
5 - [7/29/11]
6 - [8/6/11]
7 - [8/6/11]
8 - [8/6/11]

Thursday, July 7, 2011



We have just completed halftime in America, to borrow a sports analogy, as the residents of this fair land took a much needed respite, to reflect on their revered and fragile independence. Judging from the traffic here at the Jersey Shore, at least a few souls didn’t seem to mind parting with the $3.49 per gallon it took to reach the sizzling sand and take a dip in the unseasonably warm 4th of July ocean. Then, it was back to work, for the 9 out of 10 who officially had a job, as the second half of the year began, hopefully without some of the shocks we experienced in the first half, but realizing it could very well be more of the same.

Actually, the first half ended very much like the first quarter as the news generally was focused on the same regions of the world. The US economy seemed to be on the verge of a boom, only to get mired down in international events which captured the media’s attention as the market rebounded from a 7% decline, just days before the quarter’s close, to make a fantastic comeback and post quite respectable results. The Middle East and North African uprisings raged on but were stalemated, European debt problems seemed to flare up and cool off every other week, with constant threats of a Greek default. Japan has put on its game face and set out to rebuild a tsunami battered economy, while so many seem just so enamored with “everything China”. It reminds me of the 70’s mindset towards the Soviet model. For those of you who weren’t around then or don’t remember the history, suffice it to say, there is no Soviet Union now!

One major bright spot during the second quarter was the Navy Seals’ killing of bin Laden. Unfortunately, the initial euphoria was met with the stark realization his al Qaeda buddies might want revenge. While things have been quiet, the destabilizing unease due to the threat of terrorism dampens our collective consciousness. Still, it does bring us one step closer to closing a chapter which has been consuming a large part of our treasure and dividing us as a people.

The major indices were all up for the year at the halfway point, thanks to the surge during the last four trading days in June. The Dow Jones Industrial Average* closed at 12,414.34 which is a 7.2% return for the year, so far. The S&P 500*, a measure of the broader market, closed at 1,320.64 which was 5 points lower than its close for the first quarter, but still a 5% return thus far for 2011. Finally, the NASDAQ*, the bell weather of technology, finished the first half at 2,781.07, 8 points lower than the first quarter, but still a 4.5% return for the year. Considering the headwinds the market faced during the first half of the year, and after two nearly 7% corrections, a positive return was a lot like a small lead at halftime; it felt good, but you don’t want to get complacent, because the game could take many twists and turns before time expires.

Speaking of twists and turns, all of the fuss about the debt limit needs a bit of clarification, as the August deadline looms. Look for a last minute compromise that raises some taxes and makes some budget cuts, possibly even to Medicare and Social Security. To play chicken with the debt ceiling, which in effect is gambling with the credibility of the government to make its interest payments, would be as devastating to the markets as when Congress failed to initially approve the TARP legislation. It would be nice for politicians to stop all of the rhetoric and talk plainly about the need to live within a budget like you & I must do.

HAPPY 4TH OF JULY From the Jersey Shore!



At Jersey Benefits Advisors and Jersey Benefits Group, Inc. protecting your privacy is very important to us. We want you to understand what information we collect and how we use it. We collect and use information from you on applications and other forms as well as information about financial transactions with us and from non-affiliated third parties. This “nonpublic personal information” is obtained in connection with providing a financial product or service to you.

We do not disclose any nonpublic personal information about you without your express consent, except as permitted by law. We may disclose the nonpublic personal information we collect to persons or companies that perform services on our behalf.

We restrict access to your nonpublic personal information and only allow disclosures to persons and companies as permitted by law to assist in providing products or services to you.
We maintain physical, electronic and procedural safeguards to protect your nonpublic personal information at all times.


We have partnered with ORG, Inc. to develop and market an online life insurance quotation system that allows individuals to enter their information and receive competitive quotes from major insurance carriers online. In most cases the application can also be completed online. There is also a direct toll free line to speak to a customer service representative, as well as an email link to ask questions or receive assistance with the quotation or application process. The quotes can be obtained from our website.

This system eliminates speaking to numerous agents who call with quotes, which is the model used by many websites that market insurance quotes. For people who wish to complete the process totally on their own, and like to evaluate numerous quotes independently before applying for insurance, this site should satisfy their needs. Quotes are free and no money is exchanged until the individual is approved for the policy quoted.

Of course, anyone who is interested in talking to an insurance advisor, who will meet with the client in the traditional face to face manner, simply needs to contact the company either by telephone or email to set up an appointment. Through the ORG network, we can assist individuals outside the state of NJ to locate insurance professionals who can meet with them face to face. The toll free number to call, outside NJ, is (855) 802-4123. Within the state of NJ, clients can contact me directly.


Investor psychology has been a topic receiving much attention recently, as many of the tried and true philosophies of investing have been questioned. With all of the talk of a lost decade of returns, the focus has been on how to beat the market consistently, utilizing everything from alternative investments to holding physical commodities. As we’ve discussed time and time again, market timing and excessive trading can be very detrimental to a portfolio. As James Stewart stated in the July issue of Smart Money, “If market peaks tend to be unremarkable, market lows tend to arrive when times seem apocalyptic”. That’s why I continue to believe buying quality funds in as many sectors of the economy as you can, and dollar cost averaging into them constantly, is still the best overall strategy.


Dollar Cost Averaging through a systematic savings plan is an excellent way to build an account without a sizeable initial investment. Saving a portion of our pay each month is very important. Company sponsored pension plans are one method to save and should be used for retirement. Other systematic investment accounts, SUCH AS ROTH IRA’S, TRADITIONAL IRA’S, COVERDELL ACCOUNTS, 529 PLANS, BROKERAGE ACCOUNTS AND ANNUITIES can also be opened, and debited directly from your checking or savings account. For more information, just call to set up an appointment.



Investment Advisory Services offered through:

Jersey Benefits Advisors
P.O. Box 1406
Ocean City, N.J. 08226
Phone: 609 827 0194
Fax: 609 861 9257

Securities offered through:

Transamerica Financial Advisors, Inc.
A registered Broker/Dealer
570 Carillon Parkway
St. Petersburg, FL 33758-9053
Transamerica Financial Advisors, Inc. is
not affiliated with Jersey Benefits Advi-

Third Party Administration and Insurance
Services offered through:

Jersey Benefits Group, Inc.
P.O. Box 1406
Ocean City, N.J. 08226
Phone: 609 827 0194
Fax: 609 861 9257

All opinions expressed in this newsletter are
solely those of John Kaighn & Jersey Benefits

LD 41031-07/11

Wednesday, June 15, 2011

Choosing Investments

Like every investor, you want to choose investments that will provide the growth and income you need to meet your financial goals. To do that, it's important to understand what your investment choices are and how different types of investments put your money to work. Risks and potential returns vary greatly from investment to investment. Stocks offer you the potential for growth, but they can be volatile. Bonds generally provide income and lower volatility, but also lower potential for growth. Treasury bills, CDs and money market funds are insured, but may not keep up with inflation.

Think About Your Risk Tolerance and Needs

As a general rule, the younger you are and the more time you have to reach a financial goal, the more investment risk you can afford to take. That means, for example, when you're in your twenties and just starting your career, you may be able to take a more aggressive approach to investing for long-term goals. Aggressive investing means choosing investments that have the potential to provide greater return over an extended period. But these investments also expose you to more risk in the short term because their prices are volatile, which means they might move up and down rather quickly within a short period.

On the other hand, when you're in your late 50s or 60s, you'll probably want to be more cautious about taking on investment risk, since your portfolio may not have a chance to recover from a market downturn before you need to start drawing on your retirement assets. When you retire, your goal is not only providing continued growth while taking limited investment risk but also ensuring that you have a stream of income that can cover a portion of your living expenses.

But these are just guidelines. No single approach to choosing investments will work for everyone or will be right for every situation. Even when you're young, there may be circumstances that make it unwise to take a lot of investment risk—if, for example, you're still in school or have significant debt. Or you may simply be uncomfortable with that approach. Similarly, there may be situations when it makes sense to take more risk in your portfolio later in your working life. So you'll want to tailor your strategy to your own unique needs and circumstances.

What to Look for in All Investments

What does make sense for all investors is concentrating on investments that, however different they are from each other, share these important characteristics:
* The investments are easy to evaluate because there's lots of information about them. Regulators require that certain information be disclosed to investors through documents such as mutual fund prospectuses, corporate filings for stock issued by public companies that trade on the major stock markets and prospectuses or offering statements for bonds. In addition, you can find a wealth of real-time and historical market data for stocks, bonds, mutual funds and other securities on FINRA's Market Data page.
* The investments are easy to buy and sell, either through a brokerage account or in some cases directly from the issuer. Thinly traded stocks or securities that aren't listed on a major exchange are rarely a good idea for most investors.
* The sales charges for buying and selling the investments are clearly explained, as are any fees for selling within a certain time frame. FINRA's Fund Analyzer can help you compare up to three different mutual funds, classes of a single fund or exchange-traded funds.
The investments are registered with the SEC or your state's securities regulator, and the salespeople who sell them are licensed by FINRA. Use the SEC's EDGAR Database to check whether the investments are registered, and use FINRA BrokerCheck to confirm that a broker is licensed to sell securities.
* You understand the risks of the investment and how it works.

This article is an excerpt from the Smart Investing section of the Financial Industry Regulatory Authority's Website. To read more articles on investing go to FINRA

Tuesday, May 31, 2011

Improve Your Business Through Networking

As an entrepreneur you'll come in contact with numerous other business people as you conduct your day to day operations. They could be lawyers, suppliers, customers or other business services providers. These individuals are important to your business in many ways. If they bought your product or service or if you hired them, you can also gain their business knowledge, experience, ideas, and advice if you stay connected to them. This is what networking is all about. Networking is when two or more different businesses stay in contact on a regular basis to help build and improve each others business.

Some of the benefits which can be gained by talking to other business people are:

• Knowledge or information that you didn't have before

• Advice on how to solve a current business problem

• Leads to a new business project or opportunity

• Joint ventures and cross promotion deals

• Learning important skills that you didn't have before

• Constructive criticism that improves your business

• Brainstorming that sparks a profitable business idea

• Encouragement and motivation for your projects

There are several ways to network with other business people. You could participate in business expositions and trade shows. You might visit business clubs and associations or take part in on-line business related forums, e-mail discussion groups or social networks. By using your creativity, you could come up with even more ideas.

If you have the time, you could start your own networking group. You could hold meetings at a local seminar room, hotel, or at your own business facility. If you want to hold meetings on-line you can use a private chat room. You should publish a print or e-mail newsletter to keep members informed of meeting dates and times, or other pertinent information about your business.

It is helpful to keep all of your business associates' contact information in one place. Make sure it is organized by business type or profession for easy searching, so when you need some advice on a new marketing campaign you can call your marketing expert. Be sure to follow up and stay in contact by phone or email on a regular basis.

Another fantastic way to network with other businesses is to operate a joint venture. This is when two or more businesses join together to work on a project for a set period of time. Participating in joint ventures with other businesses can increase your chances of beating your competition, increase your sales and increase your profits quickly. Other advantages of a joint venture are:

• money can be saved when businesses share operating costs

• referrals can come from other businesses

• valuable time can be saved when businesses share the workload

• new products and services can be offered to your customers

• new business associates can be gained

• money can be saved by sharing advertising and marketing costs

• advice and information can be obtained from other businesses

You can find joint venture opportunities with businesses online or
offline. I try to find businesses that have the same target audience, but are not in direct competition with my business. Here are a few ways to find joint ventures online:

• subscribe and participate in e-mail discussion groups, online forums and newsgroups that deal with your target audience

• subscribe to e-zines that deal with your targeted audience

• note on your Web site or e-zine that you are interested in doing joint ventures, such as exchanging articles utilizing an article directory.

• search in your favorite web directories and search engines to find businesses for joint ventures online

Once you find a business simply e-mail them your proposal.
Explain to the business owner the benefits of the joint venture.
Discuss why it would be a win/win situation for both of your businesses. Provide feedback regarding their business, Web site, products and services. Using the methods above will enhance your chances of constructing a profitable joint venture.

John Kaighn

Jersey Benefits Advisors

The Kaighn Report

Best Selling Electronics from Amazon

Thursday, April 7, 2011



As 2011 dawned, concerns about unemployment, economic growth, fiscal responsibility and inflation were topics being discussed when attempting to ascertain prospects for the continuation of our economic recovery. Spending initiatives in several states sparked controversy and healthy debate about programs, as well as the taxes that pay for them, to the point where even the Federal government managed to cut $6 billion from the current fiscal budget, and delay a shutdown of nonessential government offices. Meanwhile, the Dow Jones Industrial Average was on the way to its second largest first quarter gain in its history.

While the issues discussed above certainly are meaningful topics and impact our economy and the markets, the major factors affecting the global economy came out of the blue and weren’t on anyone’s radar. Those issues were summed up by Alan Abelson in Barron’s as he wrote, “The first three months encompassed just about everything shy of Armageddon. A fiery contagion of revolution and civil war in the Middle East and North Africa that toppled governments and sent dictators scurrying; a horrendous earthquake, nuclear meltdown and tsunami in Japan; chronic financial woes that beset and threatened to dismember the European Union, exploding oil and food prices - gad, we get the heebie-jeebies just reciting the lugubrious litany”.

The heebie-jeebies aside, it has been a remarkable quarter insofar as international events and the markets are concerned. Whether this revolutionary fervor will result in populations of Middle Eastern countries choosing less authoritarian Western style regimes, or succumbing to Hamas and Hezbollah remains to be seen. Securing the flow of oil from the area, as witnessed by the military incursion in Libya, forces us all to recognize the realities we face for our dependence on energy from this region. Whether you believe in “drill baby drill” or “green energy”, it is time for us to develop a comprehensive energy policy that utilizes all of the options available for our energy needs. Meanwhile, be prepared to pay more at the pump.

As I stated earlier, the DJIA* had a great first quarter climbing 6.4% and closing at 12,319.73 while the S&P 500* finished at 1,325.83 for a 5.4% increase. The NASDAQ* added 128.2 points and ended the quarter at 2,781.07 for a 4.8% gain. So much for the “New Normal” we discussed in the last issue.

These first quarter gains were achieved, despite a brief pullback in the various indices after the earthquake in Japan. The indices gave up all of their gains by mid March, only to absorb the shock and rebound to current levels. Where things go from here depends largely on earnings, employment, inflation, fiscal policy, monetary policy, international political events and of course, Mother Nature. The recent pullback in March does not even qualify as a correction (a 10% drop in an index), so with all of the issues facing us, one can never rule out a correction in the market coming at any time. The last correction was in July. As I have said many times before, corrections are healthy and present opportunities for deploying more capital. Of course, they are never pleasant.

As the second quarter unfolds, I expect to see oil prices settle down, inflation to remain benign and the Fed to begin discussing higher interest rates. The stock market is still 15% below the peak set in 2007, so a slow, steady ascent from here toward the 2007 highs would be welcome.


For those of you who wish to access your account information online, the process is much easier than at any time in the past. Even if you have Pershing accounts, annuities or mutual funds with various companies, you can now access everything in one location from our website. Here is the link: Jersey Benefits Group, Inc.. Once you get to the Jersey Benefits website, you can access the link for your account under Securities Products or Investment Advisory. Under either heading go to the first choice, and look for the link for Pershing accounts only or Consolidated Statements. For Pershing only accounts, you need to contact me by phone or email for a password. There is a form to sign. For Clients with Consolidated Statements, you need to call or email to obtain a temporary password.


Once again, earnings season is upon us, and the quarterly results of companies will compete with economic news, international events and commodity prices for investors’ attention. Continued improvement in earnings, and a positive outlook for guidance issued by US companies, could further improve the employment picture. Progress in the area of job creation is slowly being achieved.

The Labor Department reported jobless claims in the week ended March 26 fell to 388,000 and the unemployment rate fell to 8.8%, which indicates modest improvement for the labor market. Further evidence of improvement on the labor front came with the March payroll report, released by the Bureau of Labor and Statistics, indicating an addition of 216,000 jobs. The household survey, which is another measure of job growth, reported 291,000 additional jobs added in March . While these numbers leave us 7.25 million jobs down from the total number reported before the recession, any progress is welcomed.

As the government faces another possible shutdown as early as Friday, April 8th, Congress continues to bicker over whether to trim $55 billion more from the current budget. While it would be a small step in the right direction, it remains to be seen if a compromise can be reached. I certainly don’t mean to minimize the impact of $55 billion on the budget, but the reality is when you look at a budget of $3.7 trillion, about 1/3 of which is borrowed, one realizes something has to be done. Either $1.5 trillion needs to be cut, or taxes need to be increased to pay for the spending deemed important to the populace. The alternative is crushing debt on our children, which I don’t think is sustainable.

The price of gold has been flat for the quarter, but not without some volatility. In February the price swooned 7% but has since recovered its losses. Gold, silver and other commodities are positions which should be part of an investment strategy. Owning the physical commodities themselves is cumbersome and expensive, so my recommendation is to gain exposure through commodities funds, ETF’s or stocks of companies that mine or handle commodities. Obviously, we never want to put all of our money into one asset class, because concentrating risk is usually a recipe for disaster.

My philosophy is and always has been to diversify across as many sectors of the economy as you can afford, and dollar cost average into your portfolio often. While this strategy can’t guarantee against losses in the short term, as most of us have experienced over the last three years, patience and discipline do produce rewards. Thanks again for your continued confidence in me, and know that I truly appreciate your business. Feel free to call or email with questions.




Investment Advisory Services offered through:
Jersey Benefits Advisors
P.O. Box 1406
Ocean City, N.J. 08226
Phone: 609 827 0194
Fax: 609 861 9257

Securities offered through:
Transamerica Financial Advisors, Inc.
A registered Broker/Dealer
570 Carillon Parkway
St. Petersburg, FL 33758-9053
Transamerica Financial Advisors, Inc. is
not affiliated with Jersey Benefits Advi-

Third Party Administration and Insurance
Services offered through:
Jersey Benefits Group, Inc
P.O. Box 1406
Ocean City, N.J. 08226
Phone: 609 827 0194
Fax: 609 861 9257

All opinions expressed in this newsletter are
solely those of John Kaighn & Jersey Benefits

LD 40098—04/11

Tuesday, April 5, 2011

Variable Annuity Vindication

Many of my clients have invested in the Transamerica and MetLife Variable Annuities over the years, so I wanted to refer you to an article in the Wall Street Journal about variable annuities and the Guaranteed Minimum Income Benefit. This rider protects the assets so your account will continue to grow in a down market. The following article by Leslie Scism sums up perfectly the reasons why the variable annuity should be a part of most investment portfolios, and vindicates many advisors who realized there was really no other comparable protection against downside risk.

Long Derided, This Investment Now Looks Wise

by Leslie Scism

One of the best investments of the past decade was one of the most derided: the variable annuity. But investors who want in on the action now are in for a shock, as the juiciest deals have disappeared from the market.

Variable annuities, a tax-advantaged investment account that holds a type of mutual fund, are sold by insurers, and most offer some form of investment guarantee for an additional fee. For years, they were attacked for being too expensive. Why pay for a guarantee to protect against a stock-market decline, the argument went, when stocks continued their inexorable march upward?

Then stocks plunged, and variable-annuity guarantees no longer looked expensive. In fact, insurers, in a move to build market share, had underpriced many of them. Suppose an investor owned a variable annuity that tanked in value last year. No matter. Under the most-generous contracts, insurers pledged to pay customers lifetime retirement income based on past market gains in their underlying funds, plus minimum annual increases in years the market is sluggish or down.

Because of such guarantees, many holders of variable annuities actually saw their accounts increase 6% or more in value last year, when the Standard & Poor’s 500-stock index dropped nearly 39%.

“When I watch friends bemoaning the market, I feel guilty saying anything, actually,” says Amy White, a 67-year-old retired accountant in Dallas. She and her late husband invested hundreds of thousands of dollars in variable annuities early this decade, and their funds rose as the market neared its 2007 peak. While they fell last year, the guaranteed amount—on which Ms. White’s retirement-income checks will be based—is still more than double the invested amount.

Click here to read the rest of the article

Learn how to get your paralegal certification and about the national
federation of paralegal associations

John Kaighn

Jersey Benefits Advisors

The Kaighn Report

Monday, March 28, 2011

Jersey Benefits Advisors Form ADV Part 2A

Part 2A of Form ADV: Firm Brochure

Item 1 Cover Page
J/M Kaighn, Inc.
Jersey Benefits Advisors
CRD: 125129
Date: 12/31/2010

Physical Address: 34 Doe Dr.
                            Woodbine, NJ 08270
Mailing Address: PO Box 1406
                          Ocean City, NJ 08226
Telephone: (609) 827-0194
Fax: (609) 861-9257
Website: Jersey Benefits Advisors

This brochure provides information about the qualifications and business practices of Jersey Benefits Advisors. If you have any questions about the contents of this brochure, please contact us at (609) 827-0194 or The information in this brochure has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority. Additional information about Jersey Benefits Advisors also is available on the SEC's website at

Item 2 Material Changes


Item 3 Table of Contents

Item Number       Item                                                                                                Page
4                       Advisory Business, Licenses & Education ............................................  1
5                        Fees & Compensation ....................................................................... 2
6                        Performance Based Fees ..................................................................... 3
7                       Types of Clients ................................................................................ 4
8                        Methods of Analysis, Investment Strategies and Risk of Loss..................... 5
9                        Disciplinary Information ..................................................................... 6
10                      Other Financial Industry Activities and Affiliations .................................. 7
11                      Code of Ethics, Participation or Interest in Client
                          Transactions and Personal Trading........................................................ 8
12                      Brokerage Practices ............................................................................ 9
13                      Review of Accounts .......................................................................... 10
14                      Client Referrals and Other Compensation............................................... 11
15                      Custody .......................................................................................... 12
16                      Discretion ....................................................................................... 13
17                      Voting Client Securities .................................................................... 14

Item 4 Advisory Business

J/M Kaighn, Inc. t/a Jersey Benefits Advisors is a Registered Investment Advisor in the state of New Jersey. The firm's CRD Number is 129125. Jersey Benefits Advisors provides investment and insurance advice to clients, and publishes a quarterly newsletter.

John H. Kaighn is the only Investment Advisory Representative of the firm, and he provides investment supervisory services, manages client accounts and furnishes investment advice through consultation with clients. Mr. Kaighn has been a registered IAR in the state of New Jersey with Jersey Benefits Advisors since 1996. His date of birth is 9/11/1952.

John H. Kaighn has a BA and an MA from Rowan University aka Glassboro State College, has FINRA licenses series 7,26 & 63 and has been a registered representative since 1993. Mr. Kaighn currently holds securities licenses in the states of CO, DE, FL, MD, NC, NJ, NY & PA and offers securities through Transamerica Financial Advisors, Inc.

John H. Kaighn has a life, health and variable life insurance license in the state of New Jersey. Mr. Kaighn is licensed with numerous insurance carriers and Jersey Benefits Group, Inc. is a licensed insurance agency in the state of New Jersey. Jersey Benefits Group, Inc. also offers Pension Consultation and TPA Services.

Item 5 Fees and Compensation

Compensation for advisory services is primarily derived from the following sources:

1. Front End Sales Commissions
2. Contingent Deferred Sales Charges
3. Percentage of Assets Under Management.

Front End Sales Commissions are generated at the point of sale and are commonly called A shares. These commissions vary by fund company. A shares usually have a 12b1 fee of .25% ($00.25 per $100.00 of assets under management) which is compensation for ongoing service and advice to clients who utilize A shares. This portion of compensation from A shares is considered a Percentage of Assets Under Management.  Commissions for sales of stocks, bonds and ETF's are generated at the purchase and sale of these securities, and for clients holding mutual funds with 12b1 fees, there is no additional asset under management charge for holding stocks, bonds or ETF's.

Contingent Deferred Sales Charges are generated when a client sells an investment prior to the holding period, which can be from 9 years on some annuity products, to 6 years on B shares of mutual funds, or 1 year on C shares of mutual funds. The CDSC usually declines each year during the surrender period. This compensation method is only recommended for clients whose investment time horizon matches the surrender time line of the share class. The idea is to AVOID paying the CDSC. The 12b1 fee for products with a CDSC is usually 1.00% during the surrender period and declines to .25% when the surrender period has ended, in most cases. The 12b1 fee for C shares remains 1.00% ($1.00 per $100.00 of assets under management).

Percentage of Assets Under Management This type of compensation is usually generated through service fees associated with mutual funds, which are commonly known as 12b1 fees and provide compensation for ongoing advice and service. If a client prefers to purchase mutual funds which don't have a 12b1 fee, then a fee will be charged on total assets under management, which is 1.00%. Hourly charges may also be assessed in certain situations. Hourly charges and additional asset based fees are not charged if a client utilizes funds which have a 12b1 fee.

Item 6 Performance-Based Fees and Side-By-Side Management

Clients are not charged performance based fees.

Item 7 Types of Clients

Jersey Benefits Advisors generally provides investment advice to individuals, pension and profit sharing plans, trusts, estates, charitable organizations, corporations and other business entities. Most clients are generally invested in several, if not all of the the following types of securities:

1. Equity Securities (common stock of large, medium and small corporations)
2. Corporate Debt Securities (bonds)
3. Certificates of Deposit
4. Investment Company Securities (mutual funds, variable annuities, variable life insurance and ETF's)
5. Municipal Securities
6. United States Government Securities

Item 8 Methods of Analysis, Investment Strategies and Risk of Loss

Jersey Benefits Advisors utilizes Charting, Fundamental Analysis, Techmical and Cyclical Analysis to assess securities. The main sources of information for investment analysis are:

1. financial newspapers and magazines
2. research materials prepared by others
3. corporate rating services
4. annual reports, prospectuses and filings with the Securities and Exchange Commission
5. company press releases
6. inspection of corporate activities.

Investment strategies primarily consist of long term purchases of diversified assets which are rebalanced periodically. As with any investment past performance is no guarantee future results, and there is always a risk of loss.

Item 9 Disciplinary Information

Jersey Benefits Advisors has never had any disciplinary actions initiated against it.

Item 10 Other Financial Industry Activities and Affiliations

Jersey Benefits Advisors has arrangements with various other entities which are material to its advisory business or clients. John H. Kaighn is a Registered Representative with Transamerica Financial Advisors, Inc., which is a registered broker/dealer. Jersey Benefits Advisors also has arrangements with Jersey Benefits Group, Inc., a licensed insurance agency and third party administrator to assist meeting client needs for insurance and pension services. Jersey Benefits Advisors sells products and services, other than strictly advice to its clients.

Item 11 Code of Ethics, Participation or Interest in Client Transactions and Personal Trading

Jersey Benefits Advisors maintains a Code of Ethics and practices under the fiduciary standard of care. In order to help a client establish a position in a fund with a high minimum purchase price, a principal purchase may be used on occasion. Jersey Benefits Advisors also acts as a broker and effects securities transactions for compensation for clients.

Clients have the choice of maintaining a fee or commission based relationship. Transamerica Financial Advisors, Inc. is the broker/dealer recommended to clients and they review all transactions. Pershing Brokerage Accounts are also recommended to many clients. Other brokers may be used if the client's needs dictate.

Item 12 Brokerage Practices

Jersey Benefits Advisors utilizes brokerage practices to assist clients in choosing the most cost effective product to meet their investment, insurance and other financial needs. Securities transactions are provided through Transamerica Financial Advisors, Inc. and insurance brokerage services are provided through Jersey Benefits Group, Inc.

Item 13 Review of Accounts

All client accounts are constantly reviewed, no less than quarterly, by John H. Kaighn. Clients with multiple accounts receive consolidated semiannual statements, prepared by the advisor. All clients receive monthly or quarterly statements directly from the B/D, investment company or insurance company with custody of the client's assets. Online access for clients is available through the company website, which is Jersey Benefits Advisors.

Item 14 Client Referrals and Other Compensation

Jersey Benefits Advisors always accepts referrals, but does not directly or indirectly compensate any person for client referrals.

Item 15 Custody

Jersey Benefits Advisors does not maintain custody of client assets. Client accounts are held in the individual's name at Pershing, banks, insurance companies or investment companies. No client funds are commingled with the assets of Jersey Benefits Advisors.

Item 16 Investment Discretion

Jersey Benefits Advisors does not have the authority to determine, without client consent, the securities to be bought or sold, the amount of securities to be bought or sold, the broker or dealer to be used or the commission rates paid. An opt out rebalancing program exists, and to date no client has opted out.  Clients certainly have the right to opt out of rebalancing programs, if they so desire.

Item 17 Voting Client Securities 

All clients vote their own securities.