Client Newsletter: June 30, 2017

Hoover Financial AdvisorsJuly 11, 2017

Clients Newsletters

As we say goodbye to the first half of an exciting, scary, different and rewarding year, we should take a moment to reflect on how happy most investors are at this time! The blue chip Dow gained 8% in the year’s first six months. The tech-packed Nasdaq composite soared nearly 14.1%. And the large-company Standard & Poor’s 500 stock index rose 8.2% to 2,423.41.  These truly amazing stock performances are a function of a strong U.S. economy, good economic fundamentals, above average corporate profits and hope for a better future for all Americans. 

It is hard to believe that the next six months can be as good as the last.  According to USA Today, the most bullish Wall Street strategist believes the market can climb another 7.3%. The least optimistic prognosticator sees the market falling 6.1% from here. 

According to Liz Ann Sonders, Charles Schwab’s Chief Investment Strategist, “Stocks have had a remarkable—and recently drama-free—run over the past eight-plus years. We are likely in a more mature phase, which could be marked by bouts of volatility and/or pullbacks—possibly driven by Fed policy. But liquidity remains ample, financial conditions loose and earnings growth healthy; which have underpinned this bull for much of its history. Those are the key things on which to keep an eye as we head into the year’s second half”.

As always, our investment team and your financial advisors are available to answer your questions and make sure your asset allocation and risk tolerance levels are appropriate with your overall financial goals and objectives.  Please let us know if you would like to discuss your financial situation. 

HFA has a New Domain!

HFA has recently changed to a new website/domain.  The attractive and informative website can be accessed at www.hfaplanning.com.  Our former website (petehoover.com) will automatically forward visitors to the new domain. Email addresses for HFA team members have also been updated. For example, pete@petehoover.com is now pete@hfaplanning.com and likewise for other team members.  All of the updated email addresses can be found on the HFA Team page of our website.

This change was made to reflect the company’s personnel growth and versatility of skills and expertise.  We continue to believe in our team of specialists and the financial and investment planning that HFA offers to our clients.  Our company is still  led by Pete Hoover, but the other team members play a very important role and are be recognized in our domain name. 

If you have not visited our website recently, you will quickly learn important information, background and services of HFA and its staff.  Blogs, newsletters and educational resources provide helpful insight concerning numerous timely subjects.  In addition, prospective clients have the opportunity to complete and submit individual data forms to the company for an immediate response and appointment. Please feel free to share the new website address with any friends or family members you think we could be of service to!

Updates to Custody for Money Movement

With the recent update that the Department of Labor (DOL) has instituted, there have been some changes to what constitutes “custody” and how that relates to servicing your Schwab brokerage accounts.  From a compliance perspective, custody is a big concern and our firm’s goal is to avoid having custody of any of your financial accounts. The new DOL ruling provides updated guidance on our office moving money between your Schwab accounts and either your bank or a third party. It separates the ruling into two categories – first-party money movement and third-party money movement.  First-party money movement applies when moving money between two accounts (i.e. your Schwab brokerage account and your personal bank) with the same registration (or same name).  Third-party money movement deals with moving money between two accounts (i.e. your Schwab brokerage account and a third party which is not your bank) with different registrations.

 Here is what you need to know! HFA will still be able to assist with all types of money movement requests. For first-party money movement, we will need to be sure you sign proper authorization including specific destination account details. For third-party money movement, we will no longer be able to maintain authority over these standing instructions, as we will need you to authorize every transaction in writing. Even though there may be some additional paperwork required, we will be able to assist you in completing any transactions necessary and will help to facilitate those instructions between you and Charles Schwab.  If you have any questions related to money movement, please do not hesitate to contact a member of our administrative team.

Working with New Generations

At HFA, we have clients that span multiple generations. Your particular generation will determine whether this resonates most with your child, grandchild, friend or colleague. As we continue to expand our services, we are constantly researching and testing new ways to provide the best possible support and guidance for you and your families. There are unique challenges that face young adults. We have all been there at one point in our lives. Whether it is understanding or enrolling in your first 401(k), moving out on your own, buying your first house (or working towards this goal), or just basic cash flow and budget management, we can help! This has historically been an underserved subset of the population, but we want our clients to know that we can help those closest to you as they encounter these new and sometimes monumental decisions. This is a tremendous opportunity for young adults to invest their time now to make smart financial decisions that will lay the foundation for a strong and fiscally responsible future. Let us know if you have someone in mind and we’ll take it from there!

A New Master

One of our newer employees in the Financial Planning Department, Robert Dowd, recently graduated with his Masters of Taxation and Financial Planning at Widener University. We are all very proud of Rob for this accomplishment and look forward to him continuing to bring his knowledge to help better serve our clients!

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®