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Updated Content Messages |
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01-28-2010 Financial Commentary |
2009 4th qtr tax estimates due 1-15-2010 2009 Max Contributions:
Age50+
Roth & Trad. IRA $ 5,000 $ 6,000 |
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December 2009 Market Update We
are now 27 months into the current bear market.
The S&P 500 Index hit a 12-year low on 3-9-09, -56% below its
highest ever level on 10-9-07*. Unemployment
currently stands at 10%1 in the U.S. (8.1% in WI, 7.6 % in Fond
du Lac). This high unemployment
and fear of spending has slowed the bounce back in U.S. consumer spending.
The major concern is that over 2/3 of the U.S. economys Gross
Domestic Product (GDP) is linked to consumer spending.
High personal debt levels subdue more borrowing and allow spending
based off of current incomes only. The
downside of lower spending is that it may negatively affect our progress
towards a recovery. The upside
is that consumers are saving more with the U.S savings rate reaching almost
7% through mid 2009. One
staggering statistic is that the 3rd Quarter numbers show that
14 out of every 100 mortgages in the U.S. are in foreclosure or have
delinquent payments**. Just as
the market fell quicker than most would expect, it now appears to be just
the opposite with the markets surging since March of 2009. We expect more
volatility of this nature to continue over the next 2-4 years and
potentially one or more corrections as conditions quietly improve. *Bottom
Rebound Length
Rebound %
Following Correction
% July
8th, 1932
2 months
+94%
-37% March
9th, 2009
9 months (so far)
+63% (to 12-7-09)
? October
4th, 1974
23 ½ months
+74%
-27% FFG Wealth Management Solution This new system incorporates comprehensive financial
planning and account aggregation (accounts here, 401(k)s, bank accounts,
mortgages, etc.) through our website. There
is an annual consulting fee of $250 if you wish to have access to this
service. Click
here to view a short video on how the system works and how it may benefit
your situation. Registering Your Assets Transfer
on Death and Payable on Death registrations are discussed.
If you have Individual taxable accounts and do not have a Trust, we
highly recommend that you sit down with us or inquire about this type of
registration on your accounts here and elsewhere. Click
here to see the entire article Business Hours January 1st, thru April 15th,2010 Monday-Friday
8AM TO
5PM (other hours by appointment only) Saturday
8AM
TO Noon Sunday
Closed Thank
you for your confidence and trust during these volatile times.
We will continue to work diligently to assist you in reaching your
financial milestones. I request
that you share this letter with your co-workers, friends and family who may
be worried about their investments and/or financial picture. We have
the capacity to service more valuable clients like you and would appreciate
your referral. Sincerely,
Mark W. Feucht, CFP, EA,
Partner, Principal, NPC Jeremy Feucht, Partner,
Principal, NPC Jeff Nielsen, Investment /
Tax Consultant Chad Muehlbauer, Investment
/ Tax Consultant Jake Harmsen, Investment /
Tax Consultant 1Wisconsin Dept
of workforce development. Returns reflect the performance of the S&P
500 Index (a registered trademark of the McGraw Hill Companies), an
unmanaged basket of 500 stocks that are considered to be widely held and
thus believed to be an indicator of overall market performance. This index
of common stocks is weighted by market value. Returns for the S&P 500
Index are calculated on a price-only basis without dividends and capital
gains distributions, reinvested. Investors
cannot invest directly into the S&P 500.
**MFS Investment Mgt 11-20-2009 economic update report.
***Factors surrounding 401k in-service distributions such as
individual’s tax situation, types of investments held, potential increase
in fees, source of funds, and vesting periods must be carefully reviewed.
Consult with a financial professional prior to implementing any
strategy. |
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