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Money Manager Monthly |
WrapManager.com | Contact Us |
December 2008 |
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RETIREMENT COMMENTARY
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Getting the Most From Social Security in Retirement
By Gabriel F. Burczyk, President & CEO
 For Americans entering retirement, Social Security is becoming even more of a necessity. Here's how to get what's coming to you.
In February 2008, Kathleen Casey-Kirschling, the nation's first Baby Boomer, made history as the first of her generation to receive a Social Security retirement benefit. In a sign of the times, Casey-Kirschling, born January 1, 1946, applied for her benefits online.
Casey-Kirschling is the first of 80 million baby boomers heading into retirement - all of whom will be looking to maximize their benefits. The good news is that, with a little planning, managing your social security benefits is easier than one might think.
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MONEY MANAGER SPOTLIGHT
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Investor Sentiment Key to Turnaround
 BlackRock
"We would remind investors that we are only two months into the current base-building process and that such processes typically last between four and six months. Over the longer term, we believe equity valuations look attractive, but a sustained market rally cannot occur until overall investor pessimism has peaked."
Investment Commentary, December 15, 2008
 Lord Abbett
"Corporate earnings, even if they shrink a little, will likely remain better than the fearful expectations now commonly bandied about under the influence of today's immediate concerns. Freed from such stark fears, stocks should rise."
Economic Insights, December 16, 2008
 Wachovia Securities
"The stock market's resilience in the face of bad news since the November lows is a hopeful sign that economic recovery may begin sometime in mid-2009. But this recovery may not match those of prior cycles."
The Week, December 16, 2008
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FINANCIAL TIDBITS
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It's the Profit You Keep
 When it comes to investing, what is important is not necessarily how much profit you make, but how much of that profit you get to keep. An understanding of current capital gains tax rules may allow you to have some control over that outcome. Capital gains and losses occur when you sell capital assets such as stocks, bonds, options, precious metals and other commodities.
- Investments held one year or less are considered short term; capital gains are taxed at your ordinary income rate.
- Investments held over one year are considered long term; capital gains are taxed at 15% (scheduled to increase to 20% in 2010).
View the Capital Gain/Loss Guide
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TAX & RETIREMENT
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A Roth Convert Candidate?
 One of the perks of 2008 is that when stock values are low certain opportunities may become more attractive. Since Roth IRA distributions are tax free when held five years and taken after age 59ΒΈ, consider converting your traditional IRA to a Roth before year end.
See if you answer "no" to all of the following questions:
- Do you earn more than $100,000?
- Do you file as "married filing separately"?
- Will you be in a lower tax bracket during retirement?
- Would you need to use converted assets to pay the taxes due?
- Would withdrawing converted assets tip you into a higher tax bracket?
If you answered "no" to all, now may be a good time for a Roth conversion. Speak with your WrapManager wealth strategist today at (800) 541-7774.
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The attached report and information have been prepared or produced by WrapManager, Inc. from sources and data believed to be reliable. Information provided in this report is for educational and illustrative purposes only and should not be construed as individualized investment advice, as an offer to sell, or the solicitation of an offer to buy any security in any states where such an offer or solicitation would be prohibited by regulations. WrapManager, Inc. is not a tax advisory firm. We recommend you contact your tax attorney or CPA prior to utilizing any of the tax-related strategies mentioned or discussed. Returns and experiences will vary for each client. Each client's risk tolerance and investment objectives are unique to them. Past performance may not be indicative of future results. No assumption that future performance of any specific investment or product made reference to directly by WrapManager, Inc., on its Web site and in marketing materials, will be profitable or equal the corresponding indicated performance level(s). If performance numbers are generated gross of fees, a client's return will be reduced by investment advisory fees and any other expenses. Opinions expressed are those of WrapManager, Inc. and are subject to change without notice and are not necessarily those of Prospera Financial Services, Inc., its directors, parent company or its affiliates. Securities offered through Prospera Financial Services and cleared through First Clearing, LLC. Prospera Financial Services - Member FINRA/SIPC. © 2008 WrapManager, Inc. (800) 541-7774 |
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