Quarterly Reports

Third Quarter Report 2019

Harvest Season

Michael D. Kresh CFP® RF™

Dan Kresh FPQP™

 

As we enter the harvesting season, we should be thinking about more than just apples and pumpkins. The fourth quarter is your last opportunity to try to “squash” any investment related tax surprises come April. Now is the time to harvest your crops and your losses.

Along with the harvest comes Halloween, which should be enjoyed, but you should keep in mind, that as with investing, too much fear or greed is liable to upset your stomach. While it’s easy to remember to stock up on candy to distribute on Halloween, it can be easy to forget that some investments may have taxable distributions before the end of the year, even if you haven’t sold them.  Part of our harvesting may include some rebalancing around planned or expected distributions. 

Good farming relies on careful planning along with the ability to adapt to unforeseen conditions that cannot be controlled.  Even the most astute and experienced farmer can’t control the weather, but they can prepare for storms or droughts. Our portfolio design is never intended to be static. We won’t ever trade for the sake of trading but are always working to separate the wheat from the chaff. 

While we look at portfolios to see if we can sell any losses to offset gains, we are also continuing to look for better suppliers for our “seeds.”  We plant a variety of seeds in our clients’ portfolios in different mixes, but we tend to have suppliers we like for specific crops. We live in a time where there are constantly new seeds on the market. It is our ongoing duty to ensure that the quality and efficiency of the seeds we use, are the best out there for our clients. We don’t take seed selections lightly, and heavily weigh the costs of the seeds we choose with their benefits.

This is also a time of year where you should reflect on what you are thankful for. A farmer with the best seeds still has to water, nurture and tend to their crops in order to be successful. We are truly thankful for the relationships and the trust we have with our clients and their families. We are grateful for the opportunity to continue our efforts to tend to their nest eggs throughout all seasons.

 

 

*You should always consult a tax professional and though this piece contains some tax information it should not be considered tax advice.

*Any opinions or forecasts contained herein reflect the subjective judgments and assumptions of the authors only and do not

necessarily reflect the views of Royal Alliance Associates, Inc. All Investing involves risk including the potential loss of principal.

Past performance is not a guarantee of future results.

 

Securities offered through Royal Alliance Associates, Inc., Member FINRA/SIPC

1377 Motor Parkway, Suite 212, Islandia, NY 11749

(631) 232-9170, Fax (631) 232-9175

Advisory services offered through Creative Wealth Management, LLC a registered investment advisor.

Not affiliated with Royal Alliance Associates, Inc.

 
 
 
 
 
Second Quarter Report 2019
 
 
 
The Social Security Environment

Michael Kresh CFP® RF™

Dan Kresh FPQP™

Many of our recent newsletters have been a combination of providing short-term market commentary, and a reminder that short-term commentary should mostly be ignored and often is not useful. So, rather than being redundant here, we want to take this opportunity to inform you of a service we can provide for you, your family, or friends that we think can be quite beneficial for the average person or couple approaching retirement.

Michael was interviewed by News 12 Long Island towards the end of last month after a report from United Income, coauthored by the former chief economist of the Social Security Administration[i], stated that retirees are forfeiting over 3 trillion dollars in benefits (that’s right trillion)! 

Since most retiring Americans no longer have access to a traditional pension[ii], social security may be the only inflation adjusted retirement benefit available that is guaranteed for both your life and the life of your spouse.

Many Americans do not know where to begin when it comes to optimizing their social security claiming strategies. The decision on when, and how, to tap into that benefit appears to be widely misunderstood. People often elect to begin collecting social security at the earliest possible date (i.e. age 62), which is estimated to cost the average American family over $100,000 in lifetime benefits! If you are nearing retirement, it can be extremely beneficial to have a professional analysis of your social security benefit options.

We are set up in our office to do detailed social security benefits analyses for anyone who wants to come in for a preretirement review. We feel so strongly about this, we will be setting up social security benefit workshops in the fall. If you know anybody who is thinking about when they should start claiming benefits, we would be happy to help them.



[i]The Retirement Solution Hiding in Plain Sight: How Much Retirees Would Gain by Improving Social Security Decisions Matt Fellowes, United Income, former Fellow at the Brookings Institution Jason J. Fichtner, Johns Hopkins University, former Chief Economist at the Social Security Administration Lincoln Plews, United Income Kevin Whitman, former Policy Research Director at the Social Security Administration

[ii]Here, “traditional pension” refers to a defined benefit plan that pays out monthly income for life, though many retirees have access to 401ks or IRAs the prevalence of traditional pensions has decreased dramatically and is expected to continue to decline.

 

*Any opinions or forecasts contained herein reflect the subjective judgments and assumptions of the authors only and do not

necessarily reflect the views of Royal Alliance Associates, Inc. All Investing involves risk including the potential loss of principal.

Past performance is not a guarantee of future results.

 

Securities offered through Royal Alliance Associates, Inc., Member FINRA/SIPC

1377 Motor Parkway, Suite 212, Islandia, NY 11749

(631) 232-9170, Fax (631) 232-9175

Advisory services offered through Creative Wealth Management, LLC a registered investment advisor.

Not affiliated with Royal Alliance Associates, Inc.

 
 
 
 
 
 
 
 
 

 

 

 

 

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1377 Motor Parkway
Suite 212
Islandia, NY 11749
Phone: 631-232-9170
Fax: 631-232-9175
lrivera@creativewealthllc.com

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