Posted on Thursday, June 30th, 2011 in
Commentary Government shutdowns, Debt Ceilings and Austerity
The headlines grab our attention as they are designed to do. They alert us to the debt problems facing Europe, the stalemate in Washington and the costs of a state shutdown. We are informed of the dire consequences that could result from any of these. It seems the political rhetoric that runs so hot around these issues was designed for this sound bite information age. Lawmakers compete against each other like sports teams, each trying...
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Posted on Saturday, April 30th, 2011 in
Commentary
Although rates have moved up some from their lows, it is still a great time to refinance your current loan or even consider consolidating some debt. Not every home in America is under water, meaning valued less than what you paid years ago. There are many homes that still have equity yet may have a higher interest rate. If you currently have an interest rate above 5.75% on a 30 year loan you may want to consider refinancing because rates...
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Posted on Thursday, March 31st, 2011 in
Commentary Investor Optimism Prevails
While revolutions took place in the countries of North Africa and a natural disaster of epic proportion struck the third largest economy in the world, investors continued to believe in and buy stocks. Though volatile in March, stock markets were not only resilient but produced healthy returns for investors. Are these investors ignoring geopolitical and economic crises in an attempt to make up lost ground or are they looking ahead at an economy that they expect will...
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Posted on Friday, December 31st, 2010 in
Commentary A New Year!
As we enter the new year, we look back at a 2010 that certainly did not leave us short of material to talk about. We experienced a stock market ‘flash crash’, a financial crisis in Europe, a conflict in Korea, tax uncertainty, QE 2 and an upset election to name only a few. In a year that had its share of ups and downs, patient investors did not miss out. The first half ended firmly in a correction...
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Posted on Thursday, September 30th, 2010 in
Commentary The Winds of Change?
The winds were to investors’ backs during September with the Dow Jones Industrial Average having its best performing September since 1939. This strong performance did more than erase August’s poor performance. It also brought the major stock benchmarks into positive territory for the year. The outsize September gains came as improving economic data helped ease fears over a double dip recession. According to the
National Bureau of Economic Research, the recession that started in December of 2007...
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Posted on Wednesday, September 22nd, 2010 in
Commentary
Beginning in 2011, financial institutions will be required to report the adjusted cost basis of sold securities to the IRS, including:
- Equities acquired on or after January 1, 2011.
- Mutual funds, ETFs and dividend reinvestment plans acquired on or after January 1, 2012.
- Other specified securities, including fixed income and options acquired on or after January 1, 2013.
It’s still important to save your purchase and sale documentation, including records of any automatic reinvestments, in order to make sure it matches the information financial...
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Posted on Wednesday, June 30th, 2010 in
Commentary
The powerful rally that lasted into April wasn’t strong enough to overcome worries about the economy and the fiscal and regulatory issues that the US shares with much of the developed world. We heard a consistent theme during our annual trip to Chicago’s Morningstar conference. We had access to some of the world’s greatest investors who spoke of the growing disparity between the public sector and the private sector. While corporations are considered to be in better financial condition...
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Posted on Wednesday, June 9th, 2010 in
Commentary
Fear is, once again, back in our markets. Even after the S & P 500 rallied 80% over the past fourteen months, there is no question that long-term structural problems have created some volatility. The past year has been nothing short of stressful for investors, who have become frustrated, anxious and even overwhelmed during these difficult times. The emotional part of investing can sometimes override the rational thought process as we move through market cycles, and the media’s focus on...
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Posted on Thursday, May 20th, 2010 in
Commentary – Shawn Jacobson of Legacy Financial Advisors was honored with a 2010 BestPrep Service Award for his outstanding volunteer efforts with BestPrep and commitment to the education of Minnesota youth. Jacobson was one of 27 individuals who were honored for their contributions with BestPrep, an educational nonprofit with a mission to best prepare Minnesota students with business, career and financial literacy skills through experiences that inspire success in work and life.
“Volunteers are the heart...
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Posted on Wednesday, March 31st, 2010 in
Commentary Markets climb a wall of worry. This is the stuff that bull markets are made of.
The rally that started over a year ago is proof of this statement. We saw the depths of investor sentiment just at the time when markets were positioned to rally. A year ago, the word ‘great’ was being used to define our recession as we hoped a full blown depression was going to be averted. Now it seems that the worst is behind us,...
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Posted on Monday, February 15th, 2010 in
Commentary
Required Minimum Distributions (RMDs) were waived in 2009, but will be required again in 2010. If you suspended any automatic distributions in 2009, the custodian may not automatically reactivate your automatic distributions. We have calculated RMDs and corrected this issue for accounts managed by Legacy Financial Advisors. However, if you have an account that is not managed by Legacy Financial Advisors that will be required to take a distribution in 2010, you should contact your custodian before...
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Posted on Thursday, December 31st, 2009 in
Commentary
The end of a decade was topped off with a rally unparalleled in recent history. The speed and strength of this upturn came as a surprise to many. After a gut wrenching market ride that began more than a year prior, investors were ready to throw in the towel by first quarter 2009. Toss in several Ponzi schemes and an economy that was in shambles and it’s no wonder that many opted to move out of equities. At the...
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Posted on Friday, November 13th, 2009 in
Commentary
Much has been written about the ‘new’ Roth IRA conversion changes that take place next year. For many, it makes a lot of sense – but does it make sense for you?
The rule change that comes about next year says that individuals with traditional IRAs can convert to a Roth IRA regardless of income. The previous income limit for a Roth Conversion was $100,000 of adjusted gross income. The Roth effectively eliminates any taxes going forward and does not require...
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Posted on Thursday, October 1st, 2009 in
Commentary
Investors enjoyed another strong quarter as markets continued to rebound from the lows of March. The swinging pendulum that caused so much pain changed direction and moved into positive territory making this quarter the best in more than ten years.
In fact, the Dow Jones Industrial Average had its best third quarter since 1939 up more than 15%. Large company stocks, as measured by the S&P 500, returned 15.6% for the third quarter and 19.3% for the year. Midsize companies led...
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Posted on Thursday, September 17th, 2009 in
Commentary
The fastest growing age group in America today is 85 years and up. While our society is enjoying longevity unprecedented in past generations, it has caused an asset protection problem: we are all more vulnerable to outliving our assets. This vulnerability has led to increased discussions about the importance of Long Term Care Insurance. Many Americans believe they will not become one of the less fortunate who may face a health issue requiring...
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Posted on Tuesday, June 30th, 2009 in
Commentary
The second quarter proved to be a welcomed reversal of the market’s downward trend. It could have been sighting of ‘green shoots’ or a buying opportunity created by ‘irrational pessimism’ that brought equities up more than 35% since March 9. Either way, many portfolio managers took this as an opportunity to buy stocks at ‘once in a lifetime’ prices. Among individual investors, irrational pessimism was indeed very real. By the first week in March, many individual investors had reached their...
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Posted on Wednesday, June 10th, 2009 in
Commentary
Last week, Legacy Financial Advisors, brought you a seminar that addressed ‘Identity Theft in the Cyber Age.’ We feel that it is important to create an awareness of the threats to individual identities and how you can protect yourself against having your identity compromised. Our presenter for this seminar, Robert Cameron, Special Agent of the Federal Bureau of Investigation, shared with us his experiences investigating these situations.
Agent Cameron used the identity thefts that took place at the Virginia Medical Center...
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Posted on Tuesday, March 31st, 2009 in
Commentary
The quarter ended with positive momentum to put the market in the plus category for the month of March. This was a welcome change from the first two months. If a bull market is a 20% rise in stock values and a bear market is a 20% fall, the first quarter of 2009 delivered both. From January 6 to March 3, the S&P 500 fell 27.6%. From March 9 thru March 26, it rose 23.1%. This is the second consecutive...
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Posted on Tuesday, March 10th, 2009 in
Commentary
Difficult economic times can create a sense of fear driven by uncertainty and a dislocation of what is rational. In the current environment, this fear can undermine rational behavior and thinking. Investors don’t have to work hard to find pessimism; it’s updated every minute of the day. Since October we’ve heard and read many references to the Great Depression. Investors who grew up during the Depression have told us that the current economy is by no means as bad as...
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Posted on Wednesday, December 31st, 2008 in
Commentary
As we end the year, we breathe a sigh of relief that 2008 is over. The stock market took a toll on investors not seen since the 1930’s. It took a broad, deep swath across the globe uncovering excess risk and greed while toppling some of the premier names in the investment business. As we look back at a very rough year, we pause to recognize that we are still fortunate in many ways compared to others throughout the world.
It’s...
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Posted on Friday, October 31st, 2008 in
Commentary Your October statements will be arriving soon. The numbers may make you uneasy, bewildered and have you second guessing why you should stay the course. We feel it’s important to share our thoughts about the markets and what we’re doing to position your portfolios going forward.
We’ve experienced many turbulent markets. It’s hard to avoid getting caught up in the here and now when we’re bombarded with hourly news, speculation, and rumors. The media is not to blame for the downturn;...
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Posted on Wednesday, October 8th, 2008 in
Commentary
These are the times that try investor’s souls.
The events of the quarter have changed the landscape of Wall Street forever. Major financial institutions have crumbled or are staying alive by government life support and investors at all levels have been left shaken. At this point, emotions have begun dictating market prices.
This is a crisis that came about just like all others - it started with greed and is ending with fear. Even with massive amounts of money being thrown at...
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Posted on Tuesday, September 16th, 2008 in
Commentary
It’s often said that investing is simple but not easy. Over the past twelve months there have been very few places to hide. It almost seems on a daily basis more bad news comes out of the capital markets and the markets fall on this news. Is there an end in sight? Should we brace ourselves? Should we follow the crowd? Or should we try to understand why a well diversified portfolio, managed with a long term perspective, is the...
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Posted on Monday, June 30th, 2008 in
Commentary Not even Warren Buffett's stocks were immune from the rocky market in the second quarter. The Oracle of Omaha had more laggards than winners in his portfolio. Overall this was the experience of the broad market as well. Volatility affected nearly all sectors and as the dust settled at quarter end, the S&P 500 lost 2.7%. The financial sector continued to be hit the hardest with losses resulting in a negative 18.3%. The brightly lit areas came from energy...
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Posted on Monday, March 31st, 2008 in
Commentary
These times are trying for all investors. Each and every day we read that the housing bubble is deflating, credit markets are frozen, financial institutions are writing off billions of bad self-inflicted loans, and a recession is either upon us or looming, according to recent comments by Federal Reserve chairman, Ben Bernanke.
BLINDED OR OPTIMISTIC
Negative sentiment can derail the best of financial plans. Should investors ignore the short-term facts and the feeling that they are caught in a vortex of no...
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