Wealth Management Blog | WrapManager (57)

Five Themes Shaping Investment Strategies in 2014

Posted by Gabriel Burczyk | Founder & CEO

December 5, 2013

Five Themes Shaping Investment Strategies in 2014

As we approach the New Year, it’s a good time to take a closer look at the more impactful themes and stories we think investors should consider when preparing their 2014 investment strategies. Here are five that we believe could impact the market and investor portfolios moving forward. Be sure to discuss these with your Financial Advisor to see if your investment portfolio is prepared.

1) How the Janet Yellen Federal Reserve Could Affect Your Portfolio

If Janet Yellen gains Senate approval in the coming days to become the next Federal Reserve (Fed) Chair, she’ll take over on February 1.¹ Investors are almost certain to watch her closely from day 1, searching for any kinds of policy-setting signals she might give. We believe the key factors to watch are how and when she intends to pare back the quantitative easing programs, better known as QE.

Based on Yellen’s testimony before the Senate Banking Committee, her letters to lawmakers, and her track record, she appears in favor of continuing stimulus measures. This could mean an extension of the current quantitative easing programs with the Fed also holding their benchmark interest rate close to zero throughout all of 2014, which could be a positive for the economy and for portfolios.¹ On the other hand, if market participants believe the Fed to be paring back those programs prematurely, it could be a negative event for the markets.

Investors should speak with their financial advisor to find out if their portfolios are positioned with these monetary policy outcomes in mind.

Navigating a Sea of Liquidity and Investing in 2014 - JP Morgan

December 4, 2013

Dr. David Kelly, Chief Global Strategist at JP Morgan Funds, examines how the global central bank's expansionary monetary policies could affect investors and portfolios in 2014. "The key to successful investing is not seeing the future with some kind of mythical vision – it is seeing the present with clarity. This is truer today more than ever, in a world recovering from financial crisis, rife with political discontent, extreme monetary easing and deep-seated investor prejudice. In this quarterly publication, we try to provide clarity by looking at the big issues shaping the global economic investment environment and fostering both opportunities and risks for long-term investors." Download JP Morgan's Full Commentary Here Get Free Research Reports on JP Morgan Asset Management [+] Read More

2013 IRA Required Minimum Distribution Guidelines

November 30, 2013

With the year coming to a close, it’s important to make sure you have taken, or are set up to take, your 2013 required minimum distribution. The amount you need to take is based on the total value of all your IRA accounts. If this is the first time that you are required to take an RMD, you may have until April 1, 2014 to do so. Below is a brief guide that will hopefully answer many of your questions about taking required minimum distributions. Alternatively, you can call one of our Wealth Managers at (800) 541-7774 to potentially determine your RMD amount. Click Here to Read the Report [+] Read More

Are Annuities a Good Investment: 3 Things to Consider Before Buying an Annuity

November 27, 2013

For investors thinking about purchasing an annuity, there are two things they should do first. One, speak with a financial advisor (other than the one trying to sell you the annuity) so you can get an unbiased explanation of how the annuity contract works. Second, consider these three reasons not to buy an annuity. Reason 1: Limited Control of Your Principal, Income, and Investment Options Money in Annuities May be Locked Up Most types of annuities restrict access to your principal for a certain number of years. If you have an unforeseen need for cash and have to exit the contract early, you might have to a pay a penalty to access your money. [+] Read More

9 Steps to Researching Money Managers

November 19, 2013

Hiring a money manager is one of the more important decisions an investor can make, and it’s also a challenging one. To make matters a bit easier, we’ve outlined nine steps an investor should take to get the research and due diligence process started. [+] Read More

Planning for Retirement: 3 Steps to Help You Get Started

November 13, 2013

If you’ve recently retired or are about to, congratulations! It’s probably been a long road, and your next step is to make sure that path continues during retirement. This means it’s time to speak with your financial advisor to create, or update, a comprehensive investment plan. Here’s a brief “how to prepare for retirement” guide to help you get started. [+] Read More

3 Advantages of Hiring Money Managers versus Self-Managing

November 11, 2013

Many investors are tempted to manage their own investment accounts. Some have a great deal of interest in the stock and bond markets and enjoy the challenge. Others may want to just save money in fees. In either case, an investor shoulders the critical responsibilities of making sure their investments perform well and meet their needs for the long-term. This is a challenging task. Before deciding to self-manage, we’d consider these three benefits to hiring money managers to do it for you. Save Time and Reduce Stress Retirement should be about enjoying the fruits of your labor and reaching your lifelong goals. Self-managing investments may become a hindrance to achieving this, because the amount of time, research, and the frequency with which someone needs to make critical decisions is great. Hiring money managers places these responsibilities on someone else. [+] Read More

Dividend Equity Third Quarter Review and Outlook - Brookmont Capital Management

November 9, 2013

Dividend money manager Brookmont Capital offers a review of their dividend strategy and their near, and long-term, outlook for the markets. "In the near term we expect to see money that was previously taken out of the market due to debt ceiling fears redeployed. Aside from high yield and floating rate, bond funds are still experiencing net outflows while mutual funds are adding equity exposure. Combined with extended monthly Government purchases, equities should trend higher. Cyclical names will likely continue their momentum into year end. Consumer Discretionary, the best performing sector YTD, could face increased competition for the top spot going into year-end as consumer confidence has been shaken in light of the shutdown." Download Brookmont Capital's Full Commentary Here Get Free Research Reports on Brookmont Capital Management [+] Read More

Fundamentals of Iron Ore Remain Robust - WHV Investments

November 8, 2013

International money manager WHV Investment Management believes the fundamentals of iron ore remain robust, and their latest report explains why. "Conventional wisdom says one should invest in what China buys and avoid anything that China can produce on its own. Iron ore, one of the favored natural resources in the WHV International Equity strategy, provides an illustration of why this has worked. To fuel its continued growth, China has a seemingly insatiable demand for the high quality product of the big three iron ore miners. The companies, BHP Billiton, Rio Tinto and Vale, are focused on meeting this demand while growing profits through a combination of declining costs and increasing volumes. Both the demand and supply trends may be subject to interruptions. However, we believe that the stage is set for compelling long term returns on the WHV International Equity iron ore investments." Download WHV Investments' Full Commentary Here Get Free Research Reports on WHV Investments [+] Read More

Tips for a Successful 401(k) Rollover

November 6, 2013

When someone leaves an employer to retire or join another employer, there are often decisions about what to do with their 401(k). There are several 401(k) rollover options and it’s not always as simple as just rolling it into an IRA. Here are some tips investors should consider before making a decision about how to rollover a 401(k). Tip #1: Use the Rollover as an Opportunity to Evaluate Your Financial Plan Rolling over a 401(k) involves creating a new account and choosing new investments. An investor should also use the opportunity to review all of their investments and evaluate their long-term goals. It’s a perfect time to think about investment objectives, risk tolerance, and to determine whether current funds or money managers are meeting the plan’s needs. Think of a 401(k) rollover as an opportunity to enhance your financial plan and investments. [+] Read More