NOTE ABOUT IRA TO ROTH IRA CONVERSIONS:
Each year, we recommend that our clients consider converting money from an IRA to a Roth IRA. Because of our national debt, we believe that taxes will need to be raised in the future, and tax brackets will correspondingly be much worse. If you are in the 12% tax bracket, we especially recommend that you consider converting whatever you can afford. Please give us a call if you have any questions or if you’d like help putting a tax plan together.
NOTE ABOUT TD AMERITRADE STATEMENTS & CONFIRMATIONS:
If you recently started receiving additional mail from TD Ameritrade. In that case, it may be because you haven’t logged into your online account and confirmed your mailing preferences since TD Ameritrade and Charles Schwab are in the process of merging.
When you get a chance, please log in to: www.advisorclient.com. You’ll need your whole account number to log in if you haven’t registered before. If you have registered and forgot your password, please click on forgot my password.
After you have logged in, at the top, you’ll see three options: Accounts, Documents, and My Profile. Please click on My Profile and then Communication Preferences. From there, you’ll be able to choose electronic delivery of documents if you’d like. If we can help in any way, give us a call, or contact TD Ameritrade tech support at 800-431-3500. After you have logged in, at the top, you’ll see three options: Accounts, Documents, and My Profile. Please click on My Profile, and then Communication Preferences. From there, you’ll be able to choose electronic delivery of documents if you’d like. If we can help in any way, just give us a call, or contact TD Ameritrade tech support at 800-431-3500.
Could Mid-Term Elections Contribute to a Year-End
October was a bright spot as the stock market recovered some losses from the previous months. We now turn our eyes to a jam-packed economic calendar. We have the Federal Reserve interest rate meeting on November 1st, midterm elections on November 8th, and then the latest inflation number release of the Consumer Price Index (CPI) on November 10th.
These three events will almost definitely swing the market wildly. We believe that cumulatively these events will cause a short-term drop in the market, and we plan to profit from that drop by betting against the market with inverse funds until we believe the market has bottomed in the short term. Of course, if we are wrong, we’ll very likely change our positioning.
Election Could Determine Year-End Stock Performance
Currently, Democrats control the House, Senate, and White House. Since 1945, the best outcome for the stock market has been when we have a split congress. Historically, investors prefer shared power. As you can see from the table below, the best outcome on average for the stock market longer term has been a Democrat in the White House but balanced by Republicans in Congress.
Daily Managed Portfolios
As you know, we have many tools in our toolbox, including purchasing investments that profit when the stock market goes down. This is called hedging. There is still a chance the stock market will take another trip down before it ultimately heads higher again later this year or next year. Our ultimate goal is to make money, so we’re using what we believe to be all the appropriate tools in our toolbox to accomplish that goal potentially. This is why we manage our active portfolios daily.
We Are Here to Help
We’d love to have a review meeting with you to discuss investments, retirement planning, college planning for kids or grandkids, tax preparation, health insurance, including Medicare supplemental and prescription drug plans, and various other financial planning topics. Please contact our office at (586) 226-2100 to schedule a meeting today!
Please contact us immediately if you’ve had any changes to your income, job status, marital status, 401K options, address, or other financial changes. We hope you and your family have a fantastic, safe, and healthy start to the fall!
Bob, Ken, Jim, Zach, and James
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