Questions from a New Guy
We are continuing to meet with new potential clients weekly here at HMC. To everyone who has called or emailed our office looking for a portfolio review or a second opinion to see if you are on the right path, THANK YOU! We truly enjoy meeting new folks and it always makes us feel good if we can help you! Many of our new clients are coming from referrals from our existing GREAT clients. A referral can be said to be the biggest vote of confidence you can give someone.
Additional new clients are coming from the hard work each of us are doing here at HMC in servicing our existing clients, efforts in marketing ,new relationships, and as the old folks use to say “just getting out there.”
There seems to be a continuing theme of similar questions new people are asking. I would like to share with you a few of the questions and our answers we are giving.
Q: When is the best time to draw my social security? A: Certainly each individual’s situation is different and plays into the correct answer. But for the most part, waiting until you reach full retirement 65, 66, or 67 seems to work best. Then consider if it would make sense to defer to age 70.
Q: How much of my retirement accounts should I use at retirement time so I can have an income, but not reduce principal? A: The “not reduce principal” is key. With that in mind consider using 4%-5% per year.
Q: I have left behind old 401k from my employer. What should I do with it? A: A plan participant leaving an employer typically has four options (and may engage in a combination of these options), each choice offering advantages and disadvantages:
* leave the money in his former employer's plan, if permitted.
* roll over the assets to his new employers's plan, if one is available
* roll over to an IRA
*cash out the account value
We recommend you discuss the alternatives with your financial advisor or give us a call and we can help you determine which choice is best for you.
Q: I am worried about rising interest rates and what that might mean to my bonds. A: You need to be aware that in general with a rise in interest rates bonds values can and will come down. We have been and continue to review all our clients’ bond positions and are focusing on bond investments that are strategic in nature and will adjust in a rising interest rate market. You should have someone review your portfolio for this very reason!
Q: Will the stock market continue going up this year? A: Well here is the $1,000,000 question and if we honestly knew, Gib and I would be on some island having a little umbrella drinks looking at our lovely wives on our yacht. Seriously, no one knows for sure, HOWEVER, all economic signs and readings are indicating that this year’s growth will be second half loaded, and we believe this to be true. We feel the stock market will not be as robust as last year’s but still, none the less, we believe we could see high single or low double digit returns. This second quarter’s earnings reports that will come out in July will be a key component and geopolitical events could be the wild card. So stay focused!
Q: Should I review my portfolio? A: Yes for a whole host of reasons. Let me give you several: performance, interest rate risk, and geopolitical risk, yield, income needs, growth needs. Those surely are enough good reasons!
As I have said, these are just a few of the questions and themes we are hearing with new folks. If you have a question or concern you would like answered, if you would like to take advantage of our free portfolio review, just call us or email us.
We would be glad to try to help you meet your financial goals and if you are not yet become a new member of the HMC family.
To all our great clients and loyal followers have a safe and fun summer! Keep in touch and call if needed. For you interested new folks, enjoy your summer and call us, because "It is your Money and Your Money Matters.”
• The opinions voiced in this material are for general information only and are not intended to prove specific advice or recommendations for any individual. To determine which investments(s) may be appropriate for you, consult your financial advisor prior to investing. • The economic forecasts set forth in the presentation may not develop as predicted and there can be no guarantee that strategies promoted will be successful. • Stock and mutual fund investing involves risk including loss of principal. • Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values and yields will decline as interest rates rise and bonds are subject to availability and change in price.