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Monthly Recap – January 2010

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January . . . At A Glance (2010)

We saw the market finally take a breather in January, which most believe is long overdue. We have been scaling back risk since November in anticipation of a pullback.

We can see the domestic stock indices pulled back, and foreign stocks were buffeted by both losses, as well as the dollar showing strength. As you are likely aware, when the dollar goes up, assets held in non-dollar denominated assets become less valuable, and vice versa.

The risk aversion in the equity markets spilled over, albeit slightly, to the bond market as we can see that investment grade bonds slightly over performed junk bonds- although the difference is negligible.

The yield curve again shows a slight shift up in longer term rates and, consistent with a return of some fear in the equity markets, shorter term rates dropped as participants did not believe inflation to be a fear in the very short term. As noted below, it appears that short term and long term expectations for interest rates and inflation are at odds. We continue to stay out of the longer term bonds due to our continued concern with a shift up in those interest rates (with corresponding bond price decay).

ROTH RISK STACK™

Our Roth workshops were a huge success, with over 110% attendance on both dates of the event. We are analyzing whether it make sense to convert a portion of their assets to a Roth. Most of those taking the analysis are finding there are ways to significantly increase their take home income in retirement- ALL of those that took the analysis have one less task for the year. All it takes is a 10 minute phone call and 15 minute meeting and you can have this off your list…

While we have made a business decision not to share our proprietary investment strategy publicly, the end results of our strategy convert a portion of your IRA/401(k)/or SEP-IRA assets to a Roth but pays taxes on considerably less than the amount you have converted. The magnitude of the benefit depends on the volatility and direction of your portfolio’s investments.

Reviewed by multiple accounting firms and described as “innovative and beneficial”, we are confident that seeing our strategy will be worth your time should a Roth conversion interest you.

Not sure if a Roth is right? If your IRA, SEP-IRA, or 401(k) is valued at $200K or over, you are eligible for a FREE customized, confidential, side by side analysis. Please contact us at (614) 469-4685 or Info@BHAdvisory.com. There is no obligation to use our services.

*An accountant should be consulted as well.

B.O.S.S. SCHEDULE™
(Business Owner Strategy Sessions)

Held at the Beacon Hill Office for our clients and friends whom are business owners. Typically occurring on the third Thursday of the month, at noon with lunch provided. To RSVP, please call Mark at 614-469-4685. Please feel free to invite a business owner whom you believe may be interested.

Protect your Capital: Feb. 18th
Join Dennis Shaffer, VP of Champaign Bank as we learn;

  • How to make yourself more attractive to banks
  • Methods to solidify your Line of Credit
  • The current banking outlook

Employee Stock Ownership Plans (ESOP): March 18th
Join Roy Messing, Director of the Ohio Employee Ownership Center to;

  • Learn the details of a program that allows the sale of your company to your employees, even if they don’t have the capital!
  • Learn how to sell your company without paying capital gains.

Succession Planning: April 22nd
Join Jane Higgins Marx & Bob Barnett, Associate and Managing Partner of Carlile Patchen & Murphy;

  • Maximize value while preparing for the unpredictable
  • Internal successor versus outside sale analysis
  • Timing and implementation process

Our mission is to manage our clients’ financial matters in a manner that allows them to focus on their families, their businesses, and their lives.

Clint Edgington, CFA
Partner
Beacon Hill Investment Adivsory
Mark Fissel, RFC
Partner
Beacon Hill Investment Adivsory
Posted in: Newsletters

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