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Money Manager Monthly |
WrapManager.com | Contact Us |
February 2009 |
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Latest News
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WrapManager Launches New Blog!WrapManager is pleased to announce the launch of our new Money Managers Blog, available to the public for FREE! Our blog features Money Manager articles and resources to help you manage your wealth and retirement. We'll keep you informed about the latest in Industry and Money Management Trends, as well as briefs on due diligence calls with Portfolio Managers. We encourage you to set up RSS feeds, add to your personal home pages at MyYahoo, Google, etc., and subscribe to our blog by email, so that way you can get updates automatically. Visit Our Blog Now!
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MARKET COMMENTARY
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The "New Normal": The Psychology of Imposed Change
By Gabriel F. Burczyk, President & CEO
 A new normal?
That's what American investors can expect now that the housing market has collapsed, the financial markets are back to November 2008 lows, and people are losing their jobs in droves.
The numbers tell the story. Americans have been hit with a perfect-storm of bad financial news, including:
- An $8 trillion negative wealth effect from declining home values.
- A $10 trillion negative wealth effect from weakened capital markets.
- A $14 trillion consumer debt load amid "exploding unemployment," leading to "exploding bankruptcies."
Mind you, that doesn't necessarily mean we'll all be churning our own butter. It looks like we're transitioning, if painfully so, from a debt-fueled economy to a savings-based one - just like our grandparents did.
In other words, we're experiencing change-actually "imposed change" - and as investors, we need to learn how to deal with this change.
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MONEY MANAGER COMMENTARY
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FINANCIAL TIDBITS
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The FICO Impact
Your FICO score assesses all the factors related to credit risk included in a credit report. It's the bottom line number lenders seek to determine whether to lend money and at what interest rate. The FICO score is comprised of five different factors: payment history, total amounts owed, length of credit history, new credit and types of credit used. Each component attributes a different "weight" towards the calculation, as illustrated in the chart below:
You are entitled to a free copy of your credit report every 12 months from each of the three major consumer credit reporting agencies: Equifax, Experian, and Transunion. An easy way to obtain these is to visit www.annualcreditreport.com, a Web site that allows you to request and view the credit reports online.
Credit reports are known to contain errors, particularly for people with common names. That's why it's important to periodically check each of your reports to verify the information and correct any errors that may impact your FICO score.
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TAX & RETIREMENT
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How To Read Your 1099
 This primer outlining First Clearing's composite 1099 form can help ease the burden of your tax preparation this year.
- Summary of Reportable Tax Information - Overview includes summary information for your dividends and distributions, interest income, Original Issue Discount (OID) interest, and proceeds from sales or redemptions in 2008.
- Reportable Tax Information - Reportable details of individual accounts and/or positions, including accruals on OID interest income, proceeds from transactions, REMIC and CMO holdings, and line total amounts for 1099-C or 1099-MISC forms (IRS regulations require that these forms be provided separately).
- Details of Reportable Tax Information - Details of taxable activity, including payment date, type of activity, 1099-DIV and 1099-MISC information.
- Federal Non-Reportable Information - Non-reportable information for individual tax filing purposes, including margin debit interest, expense items, accrued interest on purchases, and option activity.
- Annual Statement Information - Annual statement includes both summary and detailed information regarding realized losses/gains and option activity, as well as closed items for the year. (Note that this information may not match reportable information due to different IRS reporting rules.)
Bear in mind that if corrected or reclassified information is received from issuers at a later date, First Clearing will send you a corrected tax form at that time. For more information, please contact a WrapManager Wealth Advocate at (800) 541-7774 or email .
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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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