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Money Manager Monthly |
WrapManager.com | Contact Us | |
May 2010 |  |
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 | Line of Credit Offer! |  |
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Line of Credit - Special Limited Time Offer! LIBOR +2.25%
WrapManager and Wells Fargo are pleased to announce a limited-time
variable APR offer of LIBOR +2.25% for securities-backed lines of
credit! This would currently be a rate of 2.51%*
Clients are able to borrow up to 60% of the elligible assets in the account.
Minimum line size:
$100,000
Maximum line size:
$2,000,000
Lock in this rate and apply by May 31st, 2010 - subject to collateral and credit approval.
Be sure to contact your Wealth Advocate at (800) 541-7774 to find out more!
*Variable APR based on May 1, 2010, one-month LIBOR as published by The Wall Street Journal.
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MARKET COMMENTARY
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The Importance of Diversification and Asset Allocation
By Gabriel F. Burczyk, President & CEO
 In
our last newsletter we focused on the importance of choosing a money
manager with future outlook in mind. This month we expand on that topic
and highlight the importance of diversification, specifically among
different asset classes. This may be a topic you have heard about over
and over, but that doesn't diminish the importance of diversification
across different asset classes. In fact, we bet that you'll be surprised
with some of the information below and how it can affect the
performance of your overall portfolio.
Asset Allocation
We
here at WrapManager continue to stress the importance of long-term
investing and diversification across the asset class spectrum. This
includes large-cap, mid-cap, small-cap, international, emerging markets,
fixed income, and others. Over the long-term, exposure to several asset
classes may be an important aspect of your overall investment plan.
Aside from the old saying to not have all your eggs in one basket, using
asset allocation as a risk management tool is a departure from the
traditional investor focus on purely performance returns. Over the
medium- to short-term, it may be prudent to overweight or underweight
your portfolio to certain asset classes, depending on the expected
future market outlook. Note that this does not necessarily mean
eliminating a specific asset class, but instead increasing or reducing
your exposure.
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MONEY MANAGER COMMENTARY
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Entering the Slow but Growing Phase
 Clover Capital Management
As
the Credit Crisis unfolded over the past two years, banks made
headlines by reporting unprecedented losses. Some of the most prominent
financial institutions collapsed or teetered on the brink of insolvency,
prompting the government to mount a massive, unparalleled rescue
program. While the specifics of this last crisis may vary from those
that came before it, we believe that the cyclicality of the banking
industry continues to be relevant. As with every cycle, the losses are
cleared away to make room for improvement. But the potential for this
cyclical improvement, in our view, is currently being underestimated by
investors.
Click here for full Investment Commentary, April 2010
 Avatar Associates
Recent
equity market advances are confirming, largely, a view we have held
that as the economy begins to give evidence of having reached a
self-reinforcing growth phase, investors will start to get more
interested in individual companies and less worried about the overall
level of the market. That is, we move from a "stock market" more to a
"market of stocks.
Click here for complete Market Update, April 2010
 Baker Avenue Asset Management
Now
that spring has arrived, kids are excited about visiting their local
amusement parks to ride their favorite roller coasters. With the recent
gains in the stock market, investors also seem to be queuing up again
for the roller coaster ride in stocks. US markets continued their climb
in the first quarter of 2010 with the S&P 500 Index gaining 5.39% on
the quarter, the Dow Jones Industrial Average gaining 4.81%, and the
Russell 2000 small cap index gaining an impressive 8.85%.
Click here for full 1st Quarter 2010 Review
 Federated Investors
Not
to sound like a broken record, but the economy and the markets are
playing out pretty much as we have been forecasting for the better part
of a year. A traditional cyclical recovery has taken hold, putting
equities on a plodding upward course, driven by rising corporate
profits, strengthening economic fundamentals and attractive valuations
relative to bonds. At 60% stocks, our benchmark moderate growth
allocation model is at a healthy 8% equity overweight relative to bonds -
80% of our maximum overweight - and we recently raised out 12-month
price target on the S&P 500 to 1,350 from 1,300.
Click here for complete Investment Commentary, April 2010
Don't miss out on important manager commentary! Sign up for the latest email updates from Money Manager Research. |
TAX & RETIREMENT
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Social Security Benefits - Knowing More
 Social
Security is an important component of your retirement plan and one that
many people do not fully understand. When to start claiming social
security benefits may seem obvious (at age 62 when you become eligible),
but there are a few things many people do not realize that can greatly
affect the amount of the monthly benefit received.
Social
Security calculates your monthly benefit amount based on the average
life expectancy and the highest 35 years of earnings. If one were to
wait until age 70 to start claiming social security, their monthly
benefit would be about 75% higher and about one-third higher if one
waited until age 66. Working for another year can also increase your
monthly payment, if your current annual income is greater than in
previous years. This is because that year of higher income will replace
another earlier year of lower income.
Currently, only about 50%
of people start claiming their social security benefits when they turn
62. Deciding to wait to claim social security is a decision that should
be discussed with a financial advisor and made only after analyzing your
entire financial picture and plan.
Contact one of our Wealth
Advocates today to find out more and build your financial plan. Creating
and having a financial plan in place is one of the most important
things you can do. Call us today at (800) 541-7774 or email info@wrapmanager.com
Source: Trustees of Boston College, Center for Financial Literacy and the U.S. Social Security Administration (SSA)
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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.
© 2010 WrapManager, Inc. (800) 541-7774 | info@wrapmanager.com | www.WrapManager.com
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