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.
Bob, Ken, Jim, Zach, and James
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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