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Client Newsletter: March 31, 2017

Hoover Financial AdvisorsApril 19, 2017

Clients Newsletters

The first quarter of 2017 “Trumped” many first quarters of recent years and showed positive results for almost every major stock index. The S&P 500 index increased an unbelievable 6.07% (including dividends) for the first quarter – a return that most investors would have been happy with for a 12-month period! Since the election, the stock markets have rallied very nicely and most investors are feeling quite good about their investment portfolios. 

Many economists believe that the increase in stock values is supported by both sentiment and fundamentals. Even before the market impacts of the “Trump Trade”, Liz Ann Sonders, Schwab’s Chief Investment Strategist, said that much of the pick-up in economic growth, as well as the earnings turn, pre-dated the election. She also indicated that growth has accelerated globally, which is supported by very strong returns overseas.  The MSCI EAFE (Europe, Asia and Far East) Index was up 7.25% for the first quarter and the MSCI EM (Emerging Market) NR USD was up 11.45% for the same period. It looks like 2017 will continue to be an interesting investment year with many factors influencing investment returns. Our investment team is ready to take any action necessary within your portfolio. 

Municipal bonds have had a tough period since the election as most tax-free bond funds have lost value after the Trump administration indicated it will seek lower marginal tax rates for the wealthy.  Two interest rate increases by the Federal Reserve since the election have also not helped fixed income investments. We stand committed to our long-term approach with fully diversified, professionally managed investment strategies founded upon asset allocation. Helping you to achieve your financial goals is our number one priority, so please do not hesitate to contact us if you have any questions, concerns or issues with your investment portfolio or would like to discuss your overall financial situation.

HFA on Social Media! 

For those of you who peruse social media sites we want to be sure you check out our new and improved Facebook page!  HFA is now adding fresh content with educational and helpful information for you to review at your leisure. This content is in addition to regularly scheduled blog articles that we post on a biweekly basis.  We hope you find this information to be valuable. If you have any thoughts or ideas on topics or items you would like to hear about – please let us know.  We appreciate your input!

Tax Planning

Since April 18th has finally arrived, you are probably quite happy to put aside any thoughts about taxes until sometime in early 2018. However, if you do that you are missing out on the opportunity to execute tax planning for 2017. Since the memory of preparing your taxes for 2016 is still fresh in your mind, it is a good time to decide what steps you should take to help ease the burden of preparing and paying your 2017 taxes next year.  The primary reasons to do tax planning are to make sure that you pay the right amount of taxes throughout the year and that you take whatever actions you can to reduce those taxes. If you wait until sometime late in 2017 or early 2018 to start thinking about your 2017 taxes, you will miss out on ways to reduce them.

As you all know, HFA has a full service tax department (including an experienced CPA) and we are able to assist with tax planning strategies for our clients. Our goal is make sure you are paying the right amount of taxes throughout the year; this can be handled through many different strategies. Our team is experienced in helping clients to develop the strategy that is most appropriate for each situation. Please call our office if you are interested in discussing any tax planning questions.

New HFA Employee

The HFA team continues to grow and we are pleased to welcome our newest employee, Craig Eppler.  Craig has joined the investment management team as an Investment Analyst.  His main responsibilities include marking investment recommendations in HFA client portfolios.  He works heavily in the firm’s Rebalancer tool to oversee client asset allocations and any variance from target.  He performs analyses of projected cash needs to ensure client portfolios remain as fully invested as possible. Craig also monitors and researches mutual funds used by HFA.

Prior to HFA, Craig was a Fund Financial Analyst at The Vanguard Group working with their Derivatives Operations team.  He holds his Bachelors of Science and MBA in Finance from York College of Pennsylvania.  We look forward to you having the opportunity to meet and work with him!

Contact Information:

Craig Eppler:  Phone: 610-651-2777, Ext. 104 and Email: craig@petehoover.com

HFA’s Lunch and Learn Series

HFA is holding the first Lunch & Learn on May 10th, Solutions to the Top 7 Estate Planning Mistakes.  It will feature Douglas Kaune, an attorney practicing with Unruh, Turner, Burke & Frees in the Chester County area.  We will be sure to document all the information discussed and share it in an upcoming blog article following the presentation.  Our second Lunch & Learn for 2017 will be on College Planning strategies.  It will feature the HFA financial planners who will present lots of valuable information as you either plan, save and/or help fund your children or grandchildren’s college education. We look forward to both of these presentations!

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®