Fall 2010 Quarterly Newsletter
By Meredith StoudtPosted on November 7th, 2010
THE MARKETS . . . A LOOK BACK
This month and quarter proved a profitable one for most investments and our clients. A combination of mildly positive economic data and verbal support of potential future easing from the Fed decreased the fear of the dreaded “double dip.”
International stocks led the way, both due to asset growth but also depreciation of the dollar.
Currency policies are at an interesting junction now, as China, Japan, and the U.S. are fighting to keep their exchange rates low to spur exports. Obviously not all parties can achieve that goal. Coming into a U.S. election season, protectionist sentiment is high in the U.S. which is already impacting trade policies.
The implicit support of the Fed supported the bond market as well, but high yield bonds led the way for the same reasons the equity markets rallied.
Aside from the short end of the yield curve, which is artificially held down due to Fed actions, the yield curve is still flat and low with the 10 year treasury yielding a miserly 2.5%.
Litigation Update:
Tullis v. UMB Bank & Lingis v. Motorola The courts appear to be allowing the fiduciary protection provided under ERISA 404(c) to broaden, but the DOL seems to be taking issue with that.
5500 Deadline:
For those that have filed an extension, your 5500 is due 10/15 using the new electronic EFAST2 system. Don’t forget to keep a signed original in your file.
Plan Review:
When is the last time you had your plan reviewed to fulfill your fiduciary duty under ERISA 404(a)(1)(A)? Experts recommend every 3 years, contact us today for a no hassle review.
COME JOIN US FOR B.O.S.S.
Business Owner Strategy Sessions
Don’t miss out on a great opportunity to improve your business! Join us for good food and debate.
This month: Corporate Retirement Plans
- Decrease Costs
- Save Time
- Increase Protection
- Structure Investments for Outperformance
Sign up at www.BOSSworkshops.com
THE BUSINESS WEALTH MANAGEMENT PROCESS
This Quarter: Tax Efficiency
This quarter’s activity, planning for tax efficiency, takes unusual importance due to upcoming tax changes. Many clients are opting to turn the conventional wisdom of deferring capital gains on its head, due to projected increases in those rates. Other analyses we are conducting are Roth Conversion and, of course, the tax efficiency of investments. We work best alongside your CPA or corporate finance professional.
Next Quarter: Cash Flow Planning
ANNOUNCEMENT
We are proud to announce that Mark Fissel has taken and passed the CERTIFIED FINANCIAL PLANNER™ (CFP®) examination!
Clint Edgington, CFA Partner Beacon Hill Investment Adivsory |
Mark Fissel, RFC Partner Beacon Hill Investment Adivsory |