WEALTH MANAGEMENT

Issue: August 2009  
As a new school year begins, I'm reminded that the young aren't the only ones who should spend time studying.  Learning is a life long exercise.  Hopefully, we learn something every day.
Get Off the Roller Coaster of Emotional Investing
Logic and strategy outweigh emotion in investment decisions.
Roller Coaster
The roller coaster nature of the markets may cause you to react in ways contrary to your portfolio's best interest. As the above illustration shows, the top of the curve may elicit euphoria, but that's also when the market is most volatile and a portfolio may be exposed to the most risk. Conversely, while market downturns often cause investor anxiety, they may be opportune times to buy quality stocks at sale prices-potentially positioning a portfolio for greater returns on an upswing. Keep emotions in check by referring back to a time when your emotions weren't running so high, like in your written "mission statement" that includes your goals and a plan to reach them. (If you don't have a mission statement, we'd like to help you develop one.)
 
You may be among the many investors around the world who had it rough in 2007 and 2008. With a long bull market behind you, it was easy to forget the market could go down. That's why proper asset allocation strategies and knowing your risk tolerance is of utmost importance. Having just gone through 2007 and 2008, you probably have a much better understanding that intellectual tolerance on paper may be quite different from your true emotional tolerance. Now is probably an opportune time to review and once again discuss risk tolerance.
 
Emotional investing is rather like a bad habit. Kicking it may not be easy. We help you focus on the long term by discussing what you CAN control - such as asset allocation, diversification, systematic investing and rebalancing. You can also do your  part by resisting the urge to react to the 'round-the-clock financial headlines. It's important for you to stay informed about the news and portfolio performance, but we can help you to digest that information and give you perspective and advice that may impact your portfolios. Emotions have a place in our lives, but not when it comes to investing.
Gone "Phishing"?
Safeguarding personal records online.
 
Identity theft has received a lot of publicity over the last few years and safeguarding your identity and personal information has become a huge business.  Email spammers have become very sophisticated.  Some things you can do that will go a long way to protecting your personal information... 
 
Never open or respond to an email from a bank, investment company, mortgage company, etc. asking you to confirm information.  These institutions don't work that way.  Regardless of how real it looks, delete it.  If in questions, call the institution directly (not the phone number on the email). 
 
Please note that the IRS never does correspondence with taxpayers via email.  If you receive an email from the IRS, it is not valid.
 
Phishers typically include upsetting or exciting (but false) statements in their emails to get people to react immediately.  They typically ask for information such as usernames, passwords, credit card numbers, social security numbers, date of birth, etc.  Phisher emails are typically NOT personalized, but they can be. Valid messages from your bank or e-commerce company generally are personalized, but always call to check if you are unsure.
 
Don't use the links in an email, instant message, or chat to get to any web page if you suspect the message might not be authentic or you don't know the sender or user's handle.  Instead, call the company on the telephone, or log onto the website directly by typing in the Web address in your browser.
 
Avoid filling out forms in email messages that ask for personal financial information.  You should only communicate information such as credit card numbers or account information via a secure website, the telephone, by mail or in person.
 
Always ensure that you're using a secure website when submitting credit card or other sensitive information via your Web browser.  Phishers are now able to 'spoof,' or forge BOTH the "https://" that you normally see when you're on a secure Web server AND a legitimate-looking address. You may even see both in the link of a scam email. Again, make it a habit to enter the address of any banking, shopping, auction, or financial transaction website yourself and not depend on displayed links.  Phishers may also forge the yellow lock you would normally see near the bottom of your screen on a secure site. The lock has usually been considered as another indicator that you are on a 'safe' site. The lock, when double-clicked, displays the security certificate for the site. If you get any warnings displayed that the address of the site you have displayed does NOT match the certificate, do not continue.
 
Regularly log into your online accounts.  Don't leave it for as long as a month before you check each account.
 
Regularly check your bank, credit and debit card statements to ensure that all transactions are legitimate.  If anything is suspicious or you don't recognize the transaction, contact your bank and all card issuers.
 
Ensure that your browser is up to date and security patches applied.
 
Consider reporting "phishing" or "spoofed" e-mails to the following groups:
  • forward the email to [email protected]
  • forward the email to the Federal Trade Commission at [email protected]
  • forward the email to the "abuse" email address at the company that is being spoofed (e.g. "[email protected]")
  • when forwarding spoofed messages, always include the entire original email with its original header information intact
  • notify The Internet Crime Complaint Center of the FBI by filing a complaint on their website: www.ic3.gov/
 While online banking and e-commerce is very safe, remember as a general rule you should be careful about giving out your personal financial information over the Internet.
Our objective is to design portfolios using passive asset class funds that maximize investors' returns within their tolerance for risk.  Here is what sets us apart:
  • Fee-only investment management
  • A disciplined investment strategy
  • Access to institutional no-load passive asset class funds
  • An academic Nobel Prize winning investment approach
  • Continued access to academic research
  • A tax-efficient focus with valuable tax and estate planning ideas
  • Risk tolerance assessment
  • Periodic portfolio rebalancing
  • Regular communications and state of the art reporting
  • No front-end or back-end loads, no surrender fees, not locked in
  • Most important...A TRUSTED ADVISOR RELATIONSHIP
We thank you for your trust.  Please don't keep us a secret with your family and friends.  Introductions and referrals are always appreciated.  Wealth Management, LLC, a Registered Investment Advisor, is affiliated with Breneman & Company, PC and offers wealth management and investment advisory services.  Wealth Management, LLC is a Nebraska limited liability company.
 
Sincerely,
Francis Preaching 
Corey D. Breneman, CPA/PFS
Investment Advisor Representative
Wealth Management, LLC
In This Issue
Roller Coasters
Gone "Phishing"
What is Wealth Management?
 
314-469-7007  
What is Wealth Management?
Someone recently asked me what I did for a living and I told them I was a wealth manager.  The response was "I don't know what that is, but it sure sounds important."  My daughter told her class at school, "my dad's a CPA... that means we don't pay taxes".  In an effort to help my own family know what I do, let me explain what wealth management entails. 
 
Wealth management is a combination of investment consulting, advanced planning, and relationship management.  It can be thought of as a personal Chief Financial Officer.  Very simply, I help people make smart decisions about their money.
 
The primary concern of most people is wealth preservation.  As such, investment consulting is usually tackled first.  However there are other concerns as well.  That's where the advanced planning comes into play.
 
Mitigating income taxes is another large concern.  We help individuals enhance their wealth with tax planning strategies that allow you to keep more of your hard earned money.
 
Wealth transfer is yet another concern where advance planning is necessary.  Proper estate planning allows you to pass on your wealth to who you want, when you want and how you want.
 
Wealth protection is another issue where planning is helpful.  Identifying risks and transferring / mitigating risks through insurance, trusts, legal entities, etc. can be very beneficial.
 
Many people wish to make an impact in the world they live in.  Some do this through charitable giving and we help them structure the best way to make the most impact. 
 
To meet all these concerns takes a team of very bright and gifted people.  They include estate planning attorneys, CPAs, investment managers, retirement plan consultants, corporate trustees, insurance specialists, and more.  As a wealth manager (personal CFO) we bring these professionals together and manage those relationships on behalf of our clients.
 
To some, I'm their CPA.  To some I'm their investment advisor.  To others, I'm their personal CFO.  To one, I'm a husband.  To three, I'm a father; and yes, I do pay taxes.
 
If you have changed jobs, retired, had a new addition to the family, received an inheritance, started a new business, moved, or had any other major changes in life, please give us a call to see if we can help you.  If you have friends or family who you believe could use our assistance, please don't hesitate to pass on our names.  We will take good care of them; and if we can't help them, we will point them in the direction of someone who can.
 

 

 
 
 
 
 
 
  
  
 
 
 
 
 
 

 

 
 
 
 
 
 
 
 
 
  
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This material is derived from sources believed to be reliable, but its accuracy and the opinions based thereon are not guaranteed.  The articles and opinions in this publication are for general information only and are not intended to serve as specific financial, accounting, or tax advice.