Client Newsletter: June 30, 2016

Hoover Financial AdvisorsJuly 15, 2016

Clients Newsletters

Market Summary

Most investors are feeling very good at the halfway point of the year; the Dow is up 2.9%, S&P 500 is up 3.84% and the small cap Russell 2000 TR is up 2.22%.  Wild swings in oil prices, corporate profits, economic news, sluggish growth and Brexit concerns changed the course of stocks many times. Substantial market volatility was the norm for the first six months and the forecast for the second half of the year is continued extreme volatility. 

If market timing was not difficult before, it certainly is now.  Investors who stayed the course this year, generally saw their accounts increase from January 1st.   As in the past, long-term investors normally have been rewarded for their patience!

So far, the Federal Reserve has not raised key lending interest rates and the bond investors have also seen profits. With the 10-year Treasury now trading at lower rates, bond prices have appreciated very nicely.  We will be watching the moves of the Federal Reserve very closely the balance of the year.

As always, we are here to help with any of your questions, concerns or thoughts.  Please feel free to contact us if you want to talk about your personal situation or financial goals and objectives. 

Schwab Updates

You should have received an announcement about an upcoming change to your Schwab Advisor Services’ monthly statements. Starting with the July statements (delivered in August) Schwab will issue monthly statements only for accounts that have a qualifying transaction – such as a deposit or a withdrawal – within the reporting month. All accounts will continue to receive quarterly statements as usual, regardless of their activity level. It applies to both eStatements and paper statements. This change was made based on feedback and industry standards in order to provide a streamlined experience for clients.

Additionally, Schwab has also announced that voice identification services will be coming soon. When you contact the Schwab Alliance team over the phone, you typically provide a PIN number or answers to personal questions to verify your identity. Now voice identification will also be available, so clients can choose to be verified by his or her unique voice for a faster, easier experience. When calling Schwab Alliance, the system will prompt you to say the passphrase “At Schwab, my voice is my password” to be securely verified.

If you have any questions about either of these Schwab updates and enhancements, please contact our client service team members who will be happy to help.

HFA’s New Website!

Websites can be wonderful – or – disappointing. HFA has evaluated the best features of our site and reviewed many others. Incorporating a host of user-friendly features and attractive graphics into a revitalized site, we launched the new, improved petehoover.com early in July. There you can meet our team, learn a bit of company history and explore ways we can help you and your family achieve financial goals. Everything you could possible need is merely a click away. Perhaps the most pleasing characteristic of the site is its topical content. We all groan when visiting tired websites that never change from year to year. Our site is designed to be up to the minute. Why? Because we want you to visit us often. Please invite friends and family members to stop by, too. We welcome them.

Financial Times Top 300!

Hoover Financial Advisors was named to the Financial Times 300 Top Registered Investment Advisers in June. The list recognizes top independent RIA firms from across the U.S.  The 300 top RIAs hail from 34 states and Washington, D.C.

This is the third annual FT 300 list, produced independently by the Financial Times Ltd. in collaboration with Ignites Research, a subsidiary of the FT that provides business intelligence on the investment management industry. The average FT 300 firm has been in existence for 22 years and manages $2.6 billion in assets.

More than 1,500 pre-screened RIA firms were invited to apply for consideration, based on their assets under management (AUM). Applicants that applied were then graded on six criteria: AUM; AUM growth rate; years in existence; advanced industry credentials of the firm’s advisors; online accessibility; and compliance records. Neither the RIA firms nor their employees pay a fee to The Financial Times in exchange for inclusion in the FT 300. Everyone at HFA is thrilled to be included on such a prestigious list.

Fall Educational Seminar – Jeffrey Kleintop

Our Fall Education Seminar is quickly approaching! You should have received your invitation in the mail for Wednesday, September 21st beginning at 5:00pm at The Desmond Hotel in Malvern. This year our featured speaker is Jeffrey Kleintop, CFA. As Charles Schwab’s Chief Global Investment Strategist, he analyzes and discusses international markets, trends and events. His vast knowledge, research and insights help investors in the U.S. understand the impact worldwide financial actions have on economic issues in this country. Please be sure to RSVP as soon as possible to reserve your seat. We will be offering a seated three-course meal during the presentation. Our team is looking forward to this great event that we know will be sure to impress!

Lunch & Learn Recap

We have hosted two successful lunch and learn meetings in our newly expanded conference room. The first meeting was on the Schwab Donor Advised Fund and the second meeting was on The Importance of a Family Meeting. Fourteen clients quickly signed up for both events, filling our room to its maximum.  Additional sessions were made available to accommodate for the high interest!

In the fall, we plan to offer several additional lunch and learn meetings on the following topics:

  • Long-Term Care Planning
  • Medicare and Supplemental Insurance Rules and Options
  • Year-end Income Tax Planning

Please check your email for future invitations and announcements. Space is limited so sign up quickly if interested!

As always, please notify us if there has been a change in your personal financial situation, employment status or family situation.  We thank you for the confidence you have placed in our team and look forward to continuing to be of service to you in the future.  Please let us know if we can be of any help at any time. 

Best Regards,

Peter K. Hoover, CFP®