December 2014 Newsletter to Clients

Enjoy this month’s edition which features updates on 2014 IRA required minimum distributions (RMDs), new TD Ameritrade services, email fraud, 2014 recap and 2015 market outlook.

Required Minimum Distributions from IRA Accounts, for those over 70.5, must be taken prior to December 31, 2014. Everyone in the Lexington office is working diligently to assure all are completed in a timely manner. If you have questions, please do not hesitate to contact the office. We will contact you if we encounter any unforeseen issues when processing the distributions on your behalf.

TD Ameritrade now offers Health Savings Accounts. If you have interest in opening a new account or transferring an existing account to supplement medical costs please contact our office for assistance.

Email fraud continues to be a real threat to anyone who utilizes the Internet. We encourage all clients to remain aware of the possibility that someone could gain access to your email account and subsequently request money from your accounts. All employees at Moneywatch are kept up to date on the potential threats and we have policies in place to confirm the validity of client requests. We thank you for your patience and understanding as we continue to verify withdrawal requests with you personally.

We are pleased with the performance of the various stock markets during 2014. In last year’s newsletter, December 2013, we agreed with Jeremy Siegal’s view that shifting Federal Reserve Policy would not inhibit the continued growth of US companies. As of this writing the 3 most widely quoted markets, S&P 500, NASDAQ and Dow Jones, have returned 12%, 14% and 8% respectively. Although we have had dips along the way, our strategy of remaining focused on the long term has once again rewarded us. We remain optimistic about continued growth in 2015. The economy continues to recover from The Great Recession; we are moving in the right direction and recognizing that we are in recovery mode has served us well. A recent review of Jeremy Siegal’s 2015 forecasts indicate US markets have room to increase further in the upcoming year. His belief is that stocks are still undervalued by about 10%; based on current price and earnings ratios. Gross Domestic Product readings were below what he expected in 2014 and he believes this was a result of interest rates not rising at the pace he predicted. He believes interest rates will continue to rise in 2015 but the slower than normal increase will keep GDP at lower levels than we would normally see during a recovery. Lower gasoline prices are a boost to our economy. When everyone allocates less cash flow to this resource, it allows for increased spending in other areas. 

The threat of isolated bearish events will continue – terrorist attacks, pandemics - but remaining the course during these times has continually proven itself a successful strategy. We are evaluating each investment in your portfolio and making adjustments to your allocations when called for. Our priorities remain the same and we remain committed to your success. We wish each of you a holiday season filled with joy and look forward to 2015.

Thanks for your continuing confidence.

Past performance is no guarantee of future results. The opinions expressed are those of Moneywatch Advisors, Inc. and are no guarantee of the future performance of any particular fund. This information is for educational purposes only and is not intended as investment advice. Please consult your financial advisor for more detailed information or for advice regarding your individual situation.