Client Newsletter: January 15, 2014

Market Update

During the fourth quarter, the major U.S stock asset classes continued to set record highs and provide stock investors outstanding returns!  U.S. stocks continued to outperform International Developed stocks and Emerging Markets stocks.  U.S. Large Cap stocks surpassed small cap stocks and growth stocks recorded the strongest domestic performance.

The Federal Reserve finally announced it will start the tapering of its monthly bond purchases from $85 billion (current level) to $75 billion beginning in January, 2014.  Even though this move was expected, the initial reduction was much less than projected. During the quarter, the market reacted to the news by increasing the 10-year Treasury yield from 2.61% to 3.03%. Fed taper talk affected the entire bond market in 2013 as the Barclays US Aggregate Bond Index lost 2.02% and Barclays Global Aggregate Ex – U.S. lost 3.08% for the year.

Fourth Quarter vs. YTD 2013 Index Returns

*  Indices mentioned are unmanaged and cannot be invested in directly.  Past performance does not guarantee future results.

1099 Forms

For those investment clients who had assets at Cambridge (Pershing) and now Schwab, you will receive a 1099 from each company.  Charles Schwab expects to have them all mailed by January 31st.  Pershing will send their 1099’s in stages depending on the transactions throughout your accounts.  They expect them all to be mailed by February 28thPlease watch your mail for them to arrive as you will need both of them for the preparation of your 2013 tax returns.  Let us know if you have any questions or need any additional clarification upon receipt.

Note: Please contact our office if you need help with the realized gain or loss reports for the sale of any capital assets in 2013.

Visit Our New Website

As we settle into a promising new year, HFA unveils the final soon-to-be-popular piece of its new branding and marketing program: our re-designed website. We are excited about this additional opportunity to share important information and up-to-the-minute financial-related reports with you and new friends who stop by the site.

We invite you to visit www.petehoover.com on a regular basis for updates and news. Easy to navigate and very user-comfortable links introduce the HFA team, our services, client resources and much more.  Most important, we are pleased to introduce the newest addition to our website, the HFA Blog.  Here you can read the latest articles featuring educational information related to various aspects of financial planning.  These articles will be informative and promise to be a good resource for you and your families.

We hope you will be as pleased with the 2014 website as we are.

Online access

We are very excited to announce that we have begun the process of offering clients online website access to all of their investment accounts.  We have had many problems in converting our old data to our new system, Tamarac, but expect to start sending emails out this month with login instructions.  Tamarac will be our new client portal, which will allow you to view all of your investment accounts in one place.  This will include your Schwab and PKS assets, as well as many other assets, which we do not broker.  Our hope is that most, if not all of your investment accounts, will be accessible on this investment website.  Watch your emails to see when your accounts have been completed and are ready to view.

Our office will download all relevant investment data from Schwab and PKS and will keep it updated on a regular basis.  If you would like any outside investment assets to be included on the new website, you will need to enter your username and password information directly, as our office is not allowed access to that information.  We will provide you instructions on how to sync those accounts to Tamarac shortly.

We have also begun the process of transferring your documents (Wills, Life Insurance, beneficiary information, etc) from our old Electronic File Cabinet to Tamarac.  At upcoming reviews, we will review those documents with you to make sure they are updated and accurate.

Our goal, when finished, is for you to be able to access all of your investments as well as financial documents in one website. We feel this will be a very important benefit for you and your family!

Share with Us on Social Media

When you visit www.petehoover.com, don’t miss a chance to link to our social media sites, which are LinkedIn and Google+ (Google’s social media site). Here you can find additional help with your investment needs, informative useful financial resources and network with others.

If you have accounts with LinkedIn or Google+, be sure to “follow” our Hoover Financial Advisors company page. Then you can stop by these sites periodically for newsworthy articles and updates.

According to CNBC financial commentator Josh Brown, we are providing what he calls a living library for all the information you find compelling enough to fill it with. We are in the beginning stages of stocking the HFA living library and welcome your thoughts and ideas for future blog content. This is an exhilarating time for us and we are delighted to present much more in the future through social media and our blog.

Schwab Mobile Application

One of the many benefits that Charles Schwab offers is a mobile application, which will allow you to stay connected to your Schwab accounts from anywhere.  For those of you who have any of the following devices – Android, iPad, iPhone, or Kindle Fire – you are able to download the Schwab Mobile application.  This will allow you to have remote access to Schwab Alliance in order to view your advised accounts including your balances, positions, transaction history and other summary information. The application also allows you to stay in the know with real time quotes, charts, watch lists and news.  This technology is a great way to keep an eye on your balances and positions.  You can visit the Schwab Mobile website (https://content.schwab.com/mobile/index.html) in order to obtain additional information specific to your device.  Additionally, please feel free to call our office and we will be happy to help with any questions you may have.

We Can Help!

Our business thrives thanks to loyal clients like you. In 2014, we hope to reach more retirees and pre-retirees through a postcard referral campaign. In the next 12 months, we will send you a series of requests to introduce HFA to friends, family members and colleagues. We look forward to your help. Thank you!

As always, please contact our office if we can be of any assistance to you or your family or if you have any changes to your financial situation. Thank you for the continued confidence you place in HFA and we look forward to being of service to you in the future.

Best Regards,

Peter K. Hoover, CFP®