BANKING/COMMERCIAL LENDING -- Did You Know?

By Reggie Pace Sr.
The First Citizens National Bank

We occasionally send out interesting news of note from the bank. I thought I would share a recent "Did You Know?" roundup with Business Network Advisory readers!

1. DOMESTIC vs. FOREIGN - The S&P 500 has outperformed the international stock index in just 13 of the last 30 calendar years (1977-2006), the last time taking place in 2001. The international index has been the better performing index in each of the last five calendar years.

2. HIGH TO LOW AND BACK AGAIN - From the 2002 bear market low-point until mid-February, the total market capitalization of the US stock market has nearly doubled in value. Domestic stocks were worth $9.5 trillion on 10/09/02, rising to a value of $18.5 trillion last month. At the peak of the bull market in early 2000, the total value of all US stocks exceeded $26 trillion.

3. ANOTHER FED AT WORK - The central bank of Japan (i.e., the Bank of Japan) raised its key benchmark interest rate on February 27 by +0.25% to a new level of 0.50%, its second rate hike in the past seven months. Before its July 2006 rate change, the Bank of Japan had kept interest rates unchanged since 9/19/01. The USA's Federal Reserve has its benchmark interest rate currently set at 5.25%.

4. EVERY MONTH - American workers save $696 per month on average for their retirement years. The median amount saved each month by US workers is $352.

5. LESS AND LESS - An estimated 11% of all US workers will be covered by a defined benefit (DB) "pension plan" in the year 2011 -- four years from now. In 1983, 62% of all workers had a DB plan.

6. BIGGER SLICE OF THE PIE - The national total of health costs in America has escalated from 9% of our economy in 1980, to 16% in 2005, to a projected 20% of our economy in the year 2016.

7. RETIREMENT EXPENSE - A 65-year old husband and wife couple will need $295,000 on average during their retirement years to pay for health insurance premiums and out-of-pocket medical expenses if they live until life expectancy.

Reggie Pace Sr. is first vice president of The First Citizens National Bank in Powell, Ohio. Email: powell.fcnb@firstcitizensnational.com