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Money Manager Monthly |
WrapManager.com | Contact Us |
January 2009 |
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MARKET COMMENTARY
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Bear Trap: Investing in Treasuries Could Trigger Unanticipated Risk
By Gabriel F. Burczyk, President & CEO
 With a large decline in the Dow Jones Industrial Average in 2008 - almost 5,000 points shaved off of the Dow - investors have suffered an expensive reminder of the risks associated with stocks.
In normal circumstances, a year like 2008 would trigger a run by equity investors into capital preservation; that infamous "flight to safety" which economists historically love to talk about in bear markets.
Consequently, in abnormal times, the flight to safety to Treasuries bonds may be a bumpy one. More specifically, Treasuries as a safety net could be a latter day Wall Street fairy tale, akin to the ability of leprechauns to locate gold.
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MONEY MANAGER COMMENTARY
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2009: Investment Outlook for Seasoned Investors
 The Roosevelt Investment Group
"It might seem foolhardy to even consider buying stocks at the present time. But one of the keys to a successful investment strategy is to consider how the consensus could be wrong. Conditions such as these create the sort of investment opportunities that seasoned investors dream about."
Click here for full Investment Outlook, January 2009
 Neuberger Berman LLC
"The companies we continue to invest in all have strong balance sheets, healthy business models, and the apparent ability to grow organically and build market share in a difficult period. Eventually, we believe that the monetary interventions and fiscal stimuli that have been activated will take hold."
Click here for complete Manager Commentary, 4th Quarter 2008
 Calamos Advisors LLC
"We believe that the prices of stocks and non-government bonds do not reflect the true value of these assets. At today's prices, we believe that stock and bond market prices offer attractively valued opportunities to earn above-average returns in the next decade."
Click here for complete Market Review & Outlook, January 2009
 Loomis, Sayles & Company
"We believe that as the credit crunch eases, the stage will be set for improving growth in the second half of 2009, assuming significant monetary accommodation continues and massive fiscal stimulus is applied. Valuations are so cheap now that we don't need spreads to tighten to earn an attractive return."
Click here for full Bond Market Review & Outlook, 4th Quarter 2008
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PERSONAL WEALTH
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Money Manager Fraud: Why You Need a Custodial Account
 As details emerge regarding the many newly discovered investment frauds, it has become apparent that a key safeguard did not exist for the investors: A custodial account. A money manager, authorized only to buy and sell securities, should not have access to client money. Rather, it should be held in a separate custodial account, independent from the money manager, financial planner or advisor.
To ensure your money is protected from a similar scheme, consider the following guidelines:
- All client statements, confirmations, checks and online access should come from the custodial firm, not the money manager, planner or advisor.
- You are entitled to ask as many questions as you like before investing.
- Inquire if your financial advisor is registered with the SEC (request to see the ADV form).
At WrapManager, our custodial accounts are held at First Clearing, LLC. Utilizing a custodial firm allows us to provide you with transparency, control and access to your investments. With WrapManager, you also have access to a wide variety of money managers, which may help reduce your chances for risk and/or losses. For more information, please contact a WrapManager wealth advocate at (800) 541-7774 or email .
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TAX & RETIREMENT
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No Required Minimum Distribution (RMD) in 2009
 In light of last year's volatile market environment, Congress has suspended Required Minimum Distributions in 2009 for the following plans: IRA, 401(a), 401(k), 403(a), 403(b) and 457(b).
Distributions will be purely optional, and the rules for access to your account have not changed. The only thing that's changed is that you are not required to take a 2009 minimum distribution. If you decide to take a partial withdrawal, the distribution will not be subject to the mandatory 20% withholding that is typically required of RMDs. This relief applies only to 2009.
Click here for Fact Sheet on this RMD legislation
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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. © 2009 WrapManager, Inc. (800) 541-7774 |
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