Pub. 6 2015 Issue 3

www.wvbankers.org 22 West Virginia Banker CharleyMcQueen,McQueenFinancial Advisors, Inc. it to 63 or just two years longer. Greeks are rioting in the streets and, they have voted to reject this. By comparison, the retirement age in Germany is 67. Something has to change. Other signs that are simply a fact of life: We are changing. Our population is changing. Look for a continuing shift in population to the south and west for the next several years. California's popula- tion will be boosted by 8 million immi- grants from outside the United States by 2025. Our population is aging. By 2025, 18.5% of our population will be 65 years of age, or older. The demands upon federal, state and local governments for infrastructure and services will be "taxing," to say the least. If the Census Bureau's forecast is accurate, California will have 64 members of Congress in 2025, Michigan will have 12. Actively managing credit risk and interest rate risk is more important than ever. While the state of the economy is improving there are "signs" that cannot be ignored. There are also certain "facts of life" that have to be factored in when considering investment strategies and evaluating risk. As for the near term, what does the Federal Reserve do with the Federal Funds rate? Yields on bonds have risen a bit. The 5 year Treasury has tripled from its low of 0.60% to nearly 1.80%. The yield is still low, but it has increased substantially. As the Fed ponders all of this data, we need to focus on two points: 1. The FOMC increases the Fed Funds rate to slow an overheating econo- my. 2. The FOMC may target a more neu- tral position of rates. We do not see the economy overheat- ing. We do not see much disagreement on this in the marketplace. What we do question in our weekly investment meet- ings is the possibility of a neutral rate for the Fed Funds rate. If there is one, what is it? Our internal view ranges from 0.75% to 1.25% About McQueen Financial Advisors, Inc. McQueen Financial Advisors, Inc. (MFA) is a leading nationwide provider of financial advisory services that has been serving finan- cial institutions since 1999. An SEC-regis- tered investment advisory firm, MFA works only for financial institutions. We provide our services to institutions throughout the United States, with assets ranging from $20 million to over $5 billion. Products and Services McQueen Financial Advisors, provides the following services to financial institutions throughout the country: • Investment Portfolio Management • Municipal and Corporate Credit Review • Asset Liability Management • Core Deposit Studies • Prepayment Speed Analysis • Liquidity Analysis • Assumption Stress Testing • Back Testing • ALM Validation • Mortgage Servicing Rights Valua- tions n n MFA — continued from page 21 Reach your target audience a ordably. advertise get results KRIS MONTIONE Advertising Sales 727.475.9827 or 855.747.4003 kris@thenewslinkgroup.com