Clients Newsletters

March 6, 2015 / Hoover Financial Advisors

Client Newsletter: January 15, 2015

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Year End Market Update

The year 2014 was generally very good for investors, with most of the domestic economic news quite favorable.

  1. Bond investors were very pleasantly surprised with interest rates actually falling in 2014.  The 10 year Treasury yield actually declined from 3.07 to 2.173 thus causing most bonds to appreciate in value. As a result of this interest rate decline, the total return of the Barclays US AGG Bond Index showed a positive 5.97% return, far exceeding the rate of inflation of 1.32% (November 2013-2014) as measured by the CPI (Inflation.eu).
  2. Even with the Federal Reserve stopping the Treasury bond buyback program, the Dow Jones Industrial Average crossed above the 18,000 milestone for the first time in its history.  It set 38 new records, was up 10.4% (total return) for the year and posted its sixth straight year of annual gains. The S&P 500 index increased 13.69% (total return) for the year. The Index continued to impress investors setting 53 new all-time high records in 2014 (WSJ).
  3. The US economy grew at an incredible 5% in the third quarter – its strongest quarter of growth since 2003. This positive reading surprised most economists indicating the economy is growing faster than expected (WSJ).
  4. The Unemployment rate continued to amaze investors as new jobs were added in 2014 causing the unemployment rate to decline to 5.8% (November, 2014).  This was the same rate in July of 2008, just before the beginning of the last recession. (Bureau of Labor Statistics).
  5. Oil prices fell to a 5½ year low and ended with their second-biggest annual decline ever, down by half since June under pressure from a global glut of crude (Reuters).  This causes more discretionary dollars to be available for other spending, which should be beneficial to the overall economy.

Investment Management Change – Discretion

As explained in more detail in the attached supplement to this newsletter, HFA has decided to change its investment management services from non-discretionary to discretionary.  This change will be effective 1/1/15 for all new clients beginning a relationship with HFA.  All existing clients will have a choice: convert to discretionary account(s) or stay as a non-discretionary client.  Please read the attached information to learn more about this very important decision every client will need to make for each of their accounts. 

More detailed information pertaining to your specific situation will be issued shortly.   No action is necessary today – but you do need to make a decision regarding your accounts in the near future.

A Decade of Dedicated Service

Everyone at HFA looks forward to 2015 for many reasons. One of them is a milestone. The company marks its 10th anniversary. They say time flies when you’re having fun and we agree. It has been a wonderful decade. The company has grown, thrived and – most important – HFA has helped hundreds of people do the same.

It was 2005, and after 24 years as an independent financial advisor, Pete Hoover was inspired by a beautiful building in Malvern. It was time for him to launch his own firm and Hoover Financial Advisors was born. In the beginning, there were seven employees. Now there are 14. Many of its first clients are still with HFA, a reward in itself. The company is strong, vibrant and symbolic of the American dream. For this, we thank all of you who trust HFA and rely on its services.

We hope you will join us to celebrate throughout the year. There are several events planned, some small, others larger. We look forward to sharing our success with you. Stay tuned.

10th Anniversary Celebration – Save the Date!

As a thank you to all of our clients for your continued trust in our company, we will host a 10th Anniversary Celebration on May 7, 2015 at the Embassy Suites in Wayne, PA.  Highlights will include food, drinks, entertainment and several behind-the-scenes views of Hoover Financial Advisors.  We hope you can join us and we look forward to celebrating with all of you.  A more formal invitation will be sent to you in the upcoming months.

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Celebrating 10 Years of Hoover Financial Advisors
May 7, 2015
Embassy Suites
888 Chesterbrook Blvd
Wayne, PA 19087

 

John and Mary Farewell 

As 2014 draws to a close, we conclude our referral campaign featuring John and Mary. John and Mary represented a composite of HFA clients and their experiences. We shared their story with the hope you would pass one or more chapters along to friends, family members or colleagues as a recommendation to call us for a free consultation. The final chapter in their story is enclosed with this letter.

Although John and Mary were fictional, people felt a connection. Their life changes were real and some of you recognized familiar circumstances. The financial services highlighted are those we provide every day. HFA is truly there to guide clients through each step of the journey from pre-retirement through retirement and beyond. Our referral campaign was designed to introduce new individuals, couples and families to HFA.

We thank all of you who participated in the successful campaign to attract new clients. We hope you will continue to refer others to us in 2015. We believe there are many more John and Mary stories waiting to be told. We can help.

Funds for Food Campaign Exceeds Goal

Right now, you are probably recalling delicious dinners, traditional family dishes and all the wonderful food served at holiday tables in November and December. Sadly, not everyone is so fortunate. The Chester County Food Bank reports that 50,000 residents of Chester County are food-insecure. With this thought in mind, HFA reached out to help. We designated October as Fall Funds for Food month and set out to help the Food Bank support these people.

We set a goal to raise $10,000 for the Food Bank. We are very pleased to announce that we exceeded the target and brought in $12,500. We thank all of you who contributed. Last year, the Food Bank distributed over 2.6 million pounds of food, including 800,000 pounds of fresh produce to 100 food cupboards. We are proud to be involved with this amazing organization.

“Hoover Financial Advisors has been a wonderful partner to Chester County Food Bank”, says executive director Larry Welsch. “The company supports us with both monetary contributions and through volunteering. HFA has hosted fund drives among its clients to strengthen this support. We are so very fortunate to have corporations like HFA, who are not only supportive of the efforts of the Food Bank, but are also genuinely committed to the Chester County community. HFA is a true ambassador of Chester County Food Bank,” concludes Welsch.

As always, please do not hesitate to contact our office if there have been any changes within your financial situation.  We look forward to continuing to be of service to you in the future.

Best Regards,

Peter K. Hoover, CFP®

 

* ©2014 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed,(4) do not constitute investment advice offered by Morningstar, (5)are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supple-mental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent and disclosure statement.
* Indices mentioned are unmanaged and cannot be invested in directly.  Past performance does not guarantee future results.
*Any information provided by Hoover Financial Advisors, PC regarding historical market performance is for illustrative and education purposes only.  Clients or prospective clients should not assume that their performance will equal or exceed historical market results and/or averages.
*While Hoover Financial Advisors, PC believes the outside data sources cited to be credible, it has not independently verified the correctness of any of their inputs or calculations and, therefore, does not warranty the accuracy of any third-party sources or information.

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