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Client Newsletter: March 31, 2018

Hoover Financial AdvisorsApril 19, 2018

Clients Newsletters

Bring back 2017!

For the last nine quarters, the broad Standard & Poor’s 500 stock index was positive and investors generally made money.  For the first quarter of 2018, the index fell 1.2% and most investors broke even or lost money.

Volatility was essentially absent throughout 2017 – the calmest year for markets in more than five decades. But the stock market roller coaster is back in 2018.  After racing to 14 record highs through Jan. 26, U.S. stocks have been worried about a trade war, jittery about rising interest rates, and concerned about several privacy concerns with Facebook and other social media companies. Last year there were only eight days when the S&P was up or down at least 1%. This year, stocks have already moved 1% over 25 times.  

Even though the U.S. economy is showing very few signs of slowing down, a potential trade war with China is on most investors’ minds. Schwab’s Chief Global Investment Strategist Jeffrey Kleintop says the war of words may amount to little more than that. “Though trade wars were once common, we haven’t seen one in 90 years for lots of good reasons (increasing globalization, longer supply chains, and the World Trade Organization (WTO) dispute resolution process) that remain in place today,” Jeffrey says. The result has been that tariff changes in recent decades have been modest, narrowly-focused, and short-lived. Jeff believes the current trade spats are unlikely to develop into a trade war. However, the U.S.-China trade negotiations and announcements over the coming weeks may persist in causing volatility disruptions.

So where do we go from here? Corrections are always unnerving, especially because they tend to be processes over time as opposed to condensed moments in time. Traditional stock market fundamentals remain supportive of an ongoing bull market. Other supporting factors are unemployment claims, which recently hit a 45-year low, income tax cuts and corporate profits for S&P 500 companies in the first three months of 2018 forecast to grow 18.5%, up sharply from an earlier estimate of 12.2% on Jan. 1, according to earnings tracker Thomson Reuters.

As always, our advisors and investment team stand ready to talk about your personal financial situation and investment questions.  Please do not hesitate to contact our office if you have any concerns about the recent market volatility and its impact on your financial goals.

Two New Faces around HFA

HFA is pleased to welcome Connor Smith, CFP® to its growing team of financial planners. Connor gained extensive experience at firms in Indiana and Rhode Island, but realized if he wanted to expand his career he would have to relocate. He liked the Chester County area and jumped at the opportunity to be part of the Hoover Financial Advisors family. Connor holds a B.S. degree in Business Marketing from Indiana University, Kelley School of Business. He completed the Certified Financial Planner™ education program at Bryant University in Rhode Island. As Connor settles in, he is delighted to observe the vast amount of experience that surrounds him. (Connor’s contact info – Ext. 135 or connor@hfaplanning.com)

HFA is also happy to announce the appointment of Matthew Buckley to its thriving investment team. Currently a primary trader, he is working within the rebalancing system platform Tamarac, and handling cash management responsibilities. “I feel very good about HFA and what I do, there is something new every day” he remarks. Matt holds a B.S. degree in Finance (minor in Economics) from West Chester University. Prior to joining HFA, he was an account manager at InvestEdge in Bala Cynwyd. Matt’s passion for the industry coupled with a desire to delve into wealth management services led him to HFA. “I am studying for Level 3 of the CFA and I wanted to work for a company where I could apply what I’m learning.” Matt says he is pleased to be among other professionals with the same principles he values. (Matt’s contact info: Ext. 126 or matt@hfaplanning.com). We are happy to welcome both Matt & Connor to the HFA team.

May Lunch & Learn – Strategies to reduce your taxes under the new tax law

Now that tax season has come to a close, we know you may be anxious to ensure you are in good shape for your 2018 taxes while they are on the top of your mind. There have been quite a few tax law changes that affect everyone and we want to be sure you are aware and prepared.  On May 10th, HFA will hold its first Lunch & Learn for 2018 featuring Strategies to reduce your taxes under the new tax law.  Our Senior Tax Advisor, John Furey, CPA, JD, LLM, will help guide you through some of the new tax rules and be sure to answer any questions you may have.  Here are a few of the topics you can expect to learn about: new tax brackets and standard deductions, itemized deductions that were eliminated, adjusted gross income, charitable contributions, gifting highly appreciated stock, and much more. You should have received a separate email with the details of this session and the opportunity to RSVP – space is currently limited to the morning session only (9:00 – 10:30), so you will want to respond quickly if you are interested. We look forward to a very informative and valuable session.  Please call our office with any questions.

Tamarac Mobile App

As you all know, Tamarac is HFA’s online client portal.  In today’s always-on, digitally connected world, clients want to check their portfolios on the go. Tamarac recently released a new mobile app that gives you instant availability to the client portal on any Apple or Android device. The mobile app makes it easy to see dashboard tiles, review reports, and access and preview documents in the document vault from anywhere. To download the mobile app, you will need to search for WealthView in either the Apple App Store or the Google Play Store on your mobile device.  Once you open the app, enter a portal code (which is HooverFA) along with the username and password that you setup when you first logged into Tamarac. After the first log in, if Remember Me is selected, the portal code is automatically saved for future logins. You can also enable Touch ID or Face ID depending on the device you are using.

If you have questions about WealthView, or need assistance logging in/setting up a Tamarac login, please contact Amy Keller (amy@hfaplanning.com or 610-651-2777 x103) and she will be happy to assist you!

HFA Ranked Among the Best

For the third year in a row, HFA is ranked as one of the Top Best Financial Advisors in Philadelphia by Advisory HQ. The elite list of only eight firms is independently researched and written. All research, which is conducted by people, not computers, focuses on end user and consumer perspectives. Advisory HQ uses multi-prong review and ranking methodologies based on quality of service provided, overall value, transparency, customized services, history of innovation, customer experience, level of independence, team excellence and other criteria.

HFA was selected for its transparent, client-centric approach, objectivity and honesty. Advisory HQ notes that HFA is committed to independence, considering it a fiduciary responsibility. It felt clients benefit from HFA’s knowledge and experience in a wide range of services, such as customized portfolios, proactive portfolio rebalancing, asset allocated investment approach, and financial planning. HFA’s understanding of the value of teamwork and its focus on collaboration were also singled out as reasons it earned the prestigious ranking.

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 further assistance at any time. 

Best Regards,

Peter K. Hoover, CFP® & William B. Mullin, CFP®