Before we provide an update on the market and our TD Ameritrade portfolios, we wanted to quickly mention that if you have money sitting on the sidelines, we have access to many options that may interest you. For example:
- 3.15% Guaranteed for five years
- Tax deferral (you already have this with IRA funds)
- No market risk
- Creditor protection
- 10% penalty-free withdrawals annually, including year 1
- Full account value at death
- The company is rated “A Excellent” with A.M. Best
- Avoids probate if you name a person(s) as beneficiary
- Low minimum premium; available ages 0-85
Please note that we have access to shorter and longer-term options. We also have options with significantly more upside potential that protect your principal, but the rate is not fixed. Please get in touch with our office if you would like more details and options.
Market Update for April 2022
After a profitable 2021, 2022 started with a thud. The Russian invasion of Ukraine combined with sky-high inflation, which spurred the Federal Reserve to raise rates, contributed to nervous stock markets. The tech-heavy Nasdaq dropped 9.08%, the Russell 2000 dropped 7.8%, the bond index AGG lost 6.2%, and the S&P 500 dropped 4.9%.
It’s very unusual for stocks and bonds to lose simultaneously, so it was an abnormal quarter. Our Conservative, Moderate, and Aggressive portfolios were negative. Still, all three performed well comparatively because we invested a portion of our portfolios in Gold and sold some bonds high, and traded stocks a bit more active than usual. The Stock Rotation showed its volatility potential with a heavy investment in technology companies. We encourage you to look at your statements and give us a call to discuss them if you have questions or want to discuss your returns.
More Market Considerations
Our outlook for the markets is mixed depending upon your time frame. April is typically one of the best performing months for stocks because people make contributions for their previous year’s tax returns, which can help lift markets. Later in the second quarter, there is the possibility the stock market could dip again as the markets weigh rising interest rates and inflation. This is why we manage our active portfolios daily.
We believe that by year-end, stocks will rebound for many reasons, including low unemployment, the Coronavirus fueled shutdowns and restrictions being reduced, a very robust housing market, and consumer spending from Millennials who have hit their peak spending years.
Have More Questions?
We would love to meet with you to discuss investments, retirement planning, college planning for kids and grandkids, tax preparation, health insurance, and other financial planning topics. To schedule an appointment, don’t hesitate to contact our office by calling (586) 226-2100!
If you’ve had any changes to your income, job status, marital status, 401K options, address, or any other financial changes, please contact us right away.
Kindest regards,
Bob, Ken, Jim, Zach, and James
Notes & Disclaimer: Stock market indices, like the S&P 500 Index, are unmanaged groups of securities considered to be representative of the stock market in general or subsets of the market, and their performance is not reflective of the performance of any specific investment. Investments cannot be made directly into an index. Historical returns data are calculated using data provided by sources deemed to be reliable, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness, or correctness. This information is provided “AS IS” without any warranty of any kind. All historical returns data should be considered hypothetical. Past performance is no guarantee of future results.
This communication is only intended for recipients who reside in states where our agents are licensed to sell these products. Investment advisory services are offered through Summit Financial Consulting, LLC, an SEC registered investment advisor. Registration does not imply a certain level of skill or training. Summit Financial Consulting Investment Advisor Representatives do not render tax, legal, or accounting advice. Insurance products and services are offered through Summit Financial Consulting, LLC. Note: Please update Summit Financial Consulting, LLC, if your investment objectives have changed or if the personal or financial information previously provided has changed. The investment advisory disclosure document that describes Summit Financial Consulting investment advisory services account is provided to you annually. Please consult Summit Financial Consulting for a copy of this document should you need an additional copy. All guarantees are subject to the claims paying ability of the issuing insurance company. Past performance cannot predict future performance. It is not possible to invest directly in an index. The Sherman Group, LLC is not associated with Summit Financial Consulting, LLC in any way, other than a research sharing partnership. Back testing is more heavily scrutinized than any other type of investment analysis because it can be updated to take advantage of past data. The algorithms and trading signals that we receive from the Sherman Group, LLC were created using back testing with the goal of creating a sustainable research process. We have reviewed data from the entire 20 year period which was mostly back tested, and have also personally reviewed the live data for the past 5 years and feel comfortable with it, but we encourage you to meet with us and ask questions so you are fully informed on what we plan to do with your investment assets at TD Ameritrade. It is important to look at fees, taxable repercussions, and trading frequency when looking at a rate of return number. There is no perfect system or research feed, and Sherman Group, LLC has had both longer term and short-term periods where they lost money. Investing involves risk, and these portfolios are no exception.
All guarantees are subject to the claims paying ability of the issuing insurance company. Please note that there are early surrender penalties for the vast majority of MYGA’s including the product outlined in this email. MYGA’s are not FDIC insured. A 10% penalty tax may apply for withdrawals from tax-deferred annuities prior to age 59 1/2. This email is only intended for recipients who reside in states where our agents are licensed to sell these products. Investment advisory services are offered through Summit Financial Consulting, LLC, a MI registered investment advisor. Summit Financial Consulting Investment Advisor Representatives do not render tax, legal, or accounting advice. Insurance products and services are offered through Summit Financial Consulting, LLC. Note: Please update Summit Financial Consulting LLC if your investment objectives have changed or if the personal or financial information previously provided has changed. The investment advisory disclosure document that describes Summit Financial Consulting investment advisory services account is provided to you annually. Please consult Summit Financial Consulting for a copy of this document should you need an additional copy.
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