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Financial Planning Newsletter• July 30th 2009 





A variety of items for the summer doldrums....

This month: unclaimed property search, investment discussion, 2010 tax review:

Did you know that each state has an Unclaimed Property division? This is a department normally associated with each states revenue or treasury division. When an individual has monetary settlements, awards or money from old accounts and the provider cannot find the person they turn it over to the Unclaimed Property division of the persons last known state of residence. I was alerted to this by an astute client recently. She did a search under her name and her father's name and found approximately $2k in old life insurance policies and residual cash value policies she had forgotten about over the years.

It never hurts to check, just click on the link (you may also want to search under all the states where you have previously lived by going to each states revenue site):

GA Dept of Revenue

Do you invest at these levels?

A question many are beginning to ask, especially if they have been in cash throughout the rebound from March, is now the time to invest? At this juncture I would urge caution before jumping in. We have had a 45% rebound in the S&P 500 since the bottom in early March. You typically want to be looking for opportunities when things don't feel good, if you wait until you feel comfortable and the news is good you may be setting yourself up for disappointment. (always remember the Warren Buffett approach: buy when others are fearful, sell when others are greedy)

While it is very possible this market continues higher in the short term, the more probable outcome would be for another shake out or multi-week correction as we move into early fall. If and when we get the pullback, that would then present a better entry point for getting back in. If you are already fully invested and were looking for a good point to moderate your strategy or rebalance, now would be a great opportunity.

Start your tax planning:

It's time to start your tax planning not only for 2009 but for 2010 and beyond as it relates to your investment strategy. The Economic Growth and Tax Relief Reconciliation Act is set to expire on Dec 31st 2010. The sunset provision means that if Congress does not act the tax laws relating to capital gains and dividends will revert back to the old levels. Right now long term gains are taxed at 15% the old rule was 20%, dividends are currently taxed at 15% and will revert back to ordinary income tax rates.

Questions? Comments? I value your feedback please email to this link: Contact

 



James A. Daniel,
CFP®

This newsletter if for informational purposes only. The information contained within should not be considered as financial advice nor soliciation for financial services. Consult with your financial professional if you have any questions.

The Advisory Firm, LLC is a fee-only financial planning company and registered investment advisor.


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