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Greetings!
Happy New Year! We hope that you had a wonderful holiday season. We especially enjoyed seeing so many of you at our holiday party at the National Portrait Gallery in Washington, DC in December. The venue was a big change for us and we couldn't have been happier that so many of you were able to celebrate with us.
As we move into 2012, we are looking forward to another great year. We are thankful to have such wonderful clients and are always appreciative when you refer us to your friends and family.
Please continue to share with your thoughts and suggestions for future issues.
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Important Tax Reminders | |
We have two important tax reminders for the upcoming 2011 tax season:
1. This year 1099s are scheduled to be released on February 15, 2012. Please note that it is possible that there will be revisions to 1099s, which could either cause delay in the preparation of, or revision to, your 2011 tax return(s).
2. Don't forget to log into our web-portal for access to important documents you will need for preparing your tax returns. You will find all of your account statements and tax related documents in your Tamarac portal. If we have your CPA's contact information on file, we will provide them with a portal login for your tax documents as well.
For any questions regarding your Tamarac portal call Chad at 703-506-8200 or via email: chad@cassaday.com.
Click here for Cassaday's Account Access Page
For more information about accessing your account information online, please read the Helpful Hints section of this newsletter.
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Cassaday Commentary
Making Financial Resolutions? Look Back at Last Year.
Each new year brings the chance for a fresh start, and the opportunity to improve your financial picture. As you make financial resolutions for 2012, looking back at what happened last year can help you make some positive changes this year.
Automate your retirement savings
In 2011: The economic slowdown took its toll on retirement savings.
In 2012: While the economy--and its impact on financial markets--may be out of your hands, you can still look for ways to increase your retirement savings. First, determine whether you're leaving any money on the table. If you participate in an employer-sponsored retirement plan such as a 401(k) or a 403(b), contribute the maximum amount you can--particularly if your employer matches some or all of your contributions.
Contributing to an employer-sponsored retirement plan can help you save more consistently. Because your contributions are deducted automatically from your salary each pay period, you won't be tempted to skip one now and then. And this year, why not resolve to steadily increase your retirement contributions? Your employer may allow you to sign up for automatic contribution increases based on a certain schedule or triggering event (e.g., annually or whenever your pay increases).
If you're self-employed or contributing to a traditional or Roth IRA on your own, you can still automate your contributions by having money sent directly from a savings or checking account to your retirement account.
Check your insurance coverage
In 2011: Floods, hurricanes, tornadoes, earthquakes, and wildfires were widespread.
In 2012: The federal government issued more disaster declarations in 2011 than in any other year on record, serving as a reminder that it's important to review your property and casualty coverage to make sure you're adequately protected. Is there coverage you really should have (e.g., personal umbrella liability, renters insurance, or flood protection), but don't?
Update your estate plan
In 2011: New estate and gift tax laws took effect.
In 2012: Your estate plan should be reviewed in light of the changes made last year to estate and gift tax laws. Certain life events, such as changes in employment, family circumstances (marriages, divorces, births, illness or incapacity, and deaths), or even the valuation of your estate, may also affect your estate plan.
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2011. See disclaimer at the end of this newsletter.
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Annual Market Review 2011
The global village became very real as 2011 was consumed by debt, debate, downgrades, and potential default both here and overseas. U.S. economic data had to struggle for months against headwinds from abroad that preoccupied Wall Street even as Wall Street itself got occupied.
Driving markets worldwide were concerns about the impact of the Arab Spring revolts on oil markets, the triple disaster in Japan that left the world gasping for autos and parts, and most especially the shaky state of Europe's finances and banks with heavy sovereign debt exposure. After Greece, Portugal, and Ireland turned to their peers for financial support, the contagion threatened to spread to larger and potentially more threatening economies. As Italian and Spanish bond yields hit the 7% level considered unsustainable, investors worried they might be both too big to fail and too big to bail out despite an enhanced rescue fund and a new agreement increasing the eurozone's ability to impose fiscal discipline on members.
However, some of the turmoil was home-grown, such as the congressional combat that held the United States' credit rating hostage and threatened a first-ever default. Though the buck-inheriting supercommittee failed to prevent $1.2 trillion in budget cuts scheduled to start in 2013, the conflict ultimately didn't faze bond investors, who sought refuge from Europe's travails in U.S. Treasuries. Despite the upheaval caused by the global financial system's need to deleverage, the U.S. economy ended the year looking a bit stronger, with increased potential for continued recovery in 2012--assuming that Europe can manage not to implode in the meantime. |
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Market/Index |
2010 Close |
As of 9/30 |
As of 12/30 |
Q4 Change |
2011 Change* | |
DJIA |
11577.51 |
10913.38 |
12217.56 |
11.95% |
5.53% | |
NASDAQ |
2652.87 |
2415.40 |
2605.15 |
7.86% |
-1.80% | |
S&P 500 |
1257.64 |
1131.42 |
1257.60 |
11.15% |
0% | |
Russell 2000 |
783.65 |
644.16 |
740.92 |
15.02% |
-5.45% | |
Global Dow |
2087.44 |
1725.68 |
1801.60 |
4.40% |
-13.69% | |
Fed. Funds |
.25% |
.25% |
.25% |
0 bps |
0 bps | |
10-year Treasuries |
3.30% |
1.92% |
1.89% |
-3 bps |
-141 bps |
*Equities data reflect price changes, not total return.
Snapshot 2011
The Markets
Equities: A strong first quarter helped push the Dow to its highest level in almost three years, and by the end of April, the Russell 2000 was at its highest level on record. However, May launched a downhill slide punctuated by the occasional hair-raising bout of volatility. Three of the Dow's 12 largest daily point gains in history occurred in 2011 (two in August alone); unfortunately, August also featured three of the Dow's 12 largest point declines ever. Nevertheless, the Dow was the only index of the four to show a gain for the year. The volatility cost the small-cap Russell 2000 dearly; despite a good start and strong finish, it ended the year down 14% from its April high. The Nasdaq also suffered, ending 2011 with a 9% fall from its April high and its first losing year since 2008. And despite all the ups and downs, the S&P 500 ended 2011 almost exactly where it began. Not surprisingly, global equities were harder-hit than their U.S. counterparts as credit markets showed signs of strain, threatening both emerging and developed markets.
Bonds: Despite the Federal Reserve's easing its way out of quantitative easing, U.S. Treasury yields hit historic lows thanks to the European debt crisis and the Fed's intent to preserve rock-bottom interest rates through mid-2013. After sinking to roughly 1.7% in September, by year's end the benchmark 10-year yield had recovered slightly but remained below 2%, while spreads between the 2-year and 10-year bonds narrowed over the year.
Oil: Despite the uncertain global economy, oil prices continued to rise at a slow but relentless pace. After spending much of 2010 under $80 a barrel, oil not only surpassed $90 in 2011, but ended the year near $100.
Currencies: After reaching US$1.48 in the spring, the euro plummeted in 2011's last four months, ending the year just below US$1.30. By May, the dollar had lost nearly 10% against a basket of six currencies, languishing for much of the summer before the European debt crisis helped return it to roughly even for the year.
Gold/silver: Global anxiety steadily pushed gold to record after record in 2011. The ascent became jet-propelled in August, when the price hit an all-time high near $1,900 an ounce only weeks after reaching $1,700 for the first time. However, by year's end the luster had begun to fade; despite a late-fall rally, the precious metal closed out 2011 at roughly $1,550 an ounce. Silver also went parabolic for a time, hitting a high near $49 an ounce in the spring before ending the year not far from its $29 starting point.
The Economy
Unemployment: Starting at 9.4% in December 2010, the unemployment rate remained stuck within a point or two of 9% until November, when the biggest monthly decline in more than 13 years cut it to 8.6% (a level last seen in March 2009). Cuts in state, local, and federal government employment partly offset gains in private-sector jobs.
GDP: After a slow start--0.4% during Q1--the economy gradually began to improve. Though Q3's 1.8% annualized gross domestic product was much lower than 2010's 2.5%, it kept hope alive for continued recovery in 2012. The manufacturing and services sectors both avoided contraction, and by Q3, corporate after-tax profits were up more than 11% from a year earlier.
Inflation: Ominously high inflation at the wholesale level in Q1 failed to flow through to consumers as retail spending remained tentative for much of the year, at least until the weekend after Thanksgiving. By November, consumer inflation was running at an annualized 3.4%--not far above its historical average--but wholesale prices were up 5.7% year over year.
Housing: Housing starts and home sales showed signs of life by year's end. Housing starts were up 24% from last November, and new home sales were almost 10% higher. Though home prices seemed to stabilize a bit, by October they were back to mid-2003 levels and 3.4% lower than a year earlier.
Data sources: Includes data provided by Brounes & Associates. Economic: Based on data from U.S. Bureau of Labor Statistics (unemployment, inflation); U.S. Dept. of Commerce (GDP, corporate profits, retail sales, housing); S&P/Case-Shiller 20-City Composite Index (home prices); Institute for Supply Management (manufacturing/services). Performance: Based on data reported in WSJ Market Data Center (indexes); U.S. Treasury (Treasury yields); U.S. Energy Information Administration/Bloomberg.com Market Data (oil spot price, WTI Cushing, OK); www.goldprices.org (spot gold/silver); Oanda/FX Street (currency exchange rates). All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Past performance is no guarantee of future results. The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index composed of 2000 U.S. small-cap common stocks. The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide. The U.S. Dollar Index is a geometrically weighted index of the value of the U.S. dollar relative to six foreign currencies. Market indexes listed are unmanaged and are not available for direct investment.
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2011. See disclaimer at the end of this newsletter. |
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Q&A with Steve Cassaday | |
Cassaday & Company, Inc. Founder and Chief Executive Steve Cassaday is a 34 year veteran of the investment industry. Known as a thought leader Steve has shown disdain for the dogma that governs financial planning, investment management and retirement planning. We thought that getting Steve's opinion on his experiences, current perspective and thoughts on the future might make for an interesting and worthwhile read.
Q: In 1993 you did something unusual and left the traditional brokerage business to start an independent wealth management company. At the time there were very few independents, and the vast majority of advisors worked for large traditional firms. Why did you do this?
A: I have always run my practice based on bottom-line truths. One key truth is that clients seeking financial advice want objective guidance from impartial sources that have a high level of integrity. The independent model embraces and celebrates this truth. The wire house model does not allow that to happen. I recognized this and made the difficult and painful decision to create an environment where that could happen-an independent firm where we were not employees of a brokerage, insurance or investment company. Our clients would be our employers and we would answer almost entirely to them. Conflicts of interest would be minimized and recommendations would be made solely based on merit and would come from an almost unlimited universe of products, not an "approved" list.
Q: Are you employees of Royal Alliance or Pershing?
A: No. They are vendors who provide us services. It is as if we are painters and they supply paint and brushes. If they are no longer able to provide the best value for our clients, we would choose other vendors. They recognize this and provide a very high level of service. We recently pressed both Royal and Pershing to lower client fees. The end result was a decrease in fees which will save our average client $500 - $1,000 per year.
Q: Cassaday & Company Inc. has had remarkable growth and in fact was selected by Inc. magazine as one of the fastest growing small companies in the U.S. for several years. How have you done that?
A: We have grown our assets under management by about 20% per year since 1993, which includes new clients. Our staff deserves most of the credit as they are among the best in the industry, very smart, highly motivated and totally focused on client satisfaction. At our firm client service is a culture not a catch phrase, and existing clients and centers of influence like CPA's and attorneys refer a lot of business to us because they have seen the difference. Our growth is a tribute to this culture.
Q: Are you getting too big?
A: We are very sensitive to the notion that we could lose the small firm feel and are always asking clients about this. Clients tell us this is not a problem. More importantly, this growth is positive not negative, as long as we maintain and improve the quality that made us successful in the first place. We have done that by investing in terrific people. The current environment in financial services is a good one for recruiting great talent and we have been very fortunate in that area. Also, as we grow, the resources available to us are greater and allow us to make significant investments in new technology like Tamarac, which provides our clients with robust and fully customizable account access. Our ability to negotiate with vendors is also enhanced as shown by the recent commitments by Royal and Pershing to reduce costs. Finally, as we grow, succession and continuity options are enhanced which are two areas that clients tell us are important to them.
Q: What do you mean by continuity?
A: Clients don't want to be looking for a new advisor when they are 85 years old. Our current continuity plans take care of that. I am 56 and although I have no plans to retire, ever, I have deliberately hired brilliant young people who are 20 years younger than I am. When I am approaching 75 in 20 years, they will be approximately my age and still there for our clients. Also, we will grow our advisor cadre to probably 10 by 2017; and this group will be 10 to 15 years younger still. The presence of a group of advisors who work collaboratively to produce a uniform deliverable to clients means that death, disability or departure of an advisor won't cripple or otherwise adversely affect the firm.
In the event of my death, the company passes to Christopher Krell, Justin Harris and Chris Young. The value of this transfer is covered by a life insurance policy and all parties are compelled by contract. Chris, Justin and Chris currently have a total of 10% interest in the company as the result of a purchase agreement reached in 2010. The agreement also ensures that all parties have significant incentives to remain at the company thus increasing our stability. This provides a sense of security to employees and clients in that a breakup of the enterprise is much less likely.
Q: Cassaday & Company Inc. has won Washington Business Journal's "Best Places to Work" 5 times, Washingtonian Magazine's "Great Places to Work" twice and now Virginia Business magazine's "Best Places to Work in Virginia." This is an amazing accomplishment. Why is Cassaday such a great place to work?
A: We are all very proud of these awards. There is very much a sense of family here; people care about each other and we have strong relationships. I believe one factor is that I treat employees the way I would want to be treated. We compensate all employees based on the firm's top line revenue which makes everyone think like an owner. If a client leaves or if account values decline, everyone is affected so we are all laser focused on client satisfaction. We also empower employees to make decisions independently based on our overarching directive to serve client interests, and we encourage all employees to provide input and suggestions. Another important reason is that I have never laid anyone off for economic reasons. It is important to me that people feel secure and not worried about being laid off when things get tough.
Q: The last 10 years were not so great; what is your view of the future for investments?
A: Although there are no guarantees, we believe that we are entering a golden age that will see one of the more favorable environments for investors. Most of the turmoil we are now seeing is a natural side effect of positive changes occurring all around the world-culturally, socially and structurally. No change of any significance has ever occurred without some dislocations; tumult is a byproduct of great change. Most people and many advisors don't see the good in this because of the irresponsibility of the profit driven mass media that only reports plane crashes and train wrecks. The nonstop parade of negative news, with few positive stories, has caused many to adopt an "end of the world" attitude where most people believe things are really bad while significant positive progress is occurring right under their noses!
Q: Like what?
A: The death of socialism in Europe, communism in Asia and an incipient social and cultural change in the US which we believe may result in a new level of ascendancy by this country. The focus on the debt overhang, although unnerving, is a huge positive and a move in the right direction. To top it off, with a little luck we will see pro-growth policies, with sensible regulation, and simpler, more business and investor friendly tax structure that will create the right environment for expanding commerce, reducing unemployment and promoting prosperity and opportunity for all Americans. Real change is slow and painful, especially for investors, but we see these changes as likely and a significant long term positive.
Q: Are you a Pollyanna?
A: I have an unshakeable faith in the future and believe that the natural state of life is growth; we expect to invest in things that allow our clients to participate in that growth in a prudent way. People depend on us to make smart decisions, and we take that responsibility very seriously. Our job is to drill down through the noise from politicians, the pundits and the media and assess the facts as we see them. The weight of the evidence supports our thesis. More importantly, after 34 years in this industry, I have seen this country pull through many scary, seemingly irrecoverable disasters and believe that we will do that again.
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Hot Topic: Identity Theft
Protect Yourself against Identity Theft
Whether they're snatching your purse, diving into your dumpster, stealing your mail, or hacking into your computer, they're out to get you. Who are they? Identity thieves. Identity thieves can empty your bank account, max out your credit cards, open new accounts in your name, and purchase furniture, cars, and even homes on the basis of your credit history. If they give your personal information to the police during an arrest and then don't show up for a court date, you may be subsequently arrested and jailed. And what will you get for their efforts? You'll get the headache and expense of cleaning up the mess they leave behind. You may never be able to completely prevent your identity from being stolen, but here are some steps you can take to help protect yourself from becoming a victim.
Check yourself out
It's important to review your credit report periodically. Check to make sure that all the information contained in it is correct, and be on the lookout for any fraudulent activity.
You may get your credit report for free once a year. To do so, contact the Annual Credit Report Request Service online at www.annualcreditreport.com or call (877) 322-8228.
If you need to correct any information or dispute any entries, contact the three national credit reporting agencies:
- Equifax: www.equifax.com, 800-685-111
- Experian: www.experian.com, 888-397-3742
- TransUnion: www.transunion.com, 800-916-8800
Secure your number
Your most important personal identifier is your Social Security number (SSN). Guard it carefully. Never carry your Social Security card with you unless you'll need it. The same goes for other forms of identification (for example, health insurance cards) that display your SSN. If your state uses your SSN as your driver's license number, request an alternate number. Don't have your SSN preprinted on your checks, and don't let merchants write it on your checks. Don't give it out over the phone unless you initiate the call to an organization you trust. Ask the three major credit reporting agencies to truncate it on your credit reports. Try to avoid listing it on employment applications; offer instead to provide it during a job interview.
Don't leave home with it
Most of us carry our checkbooks and all of our credit cards, debit cards, and telephone cards with us all the time. That's a bad idea; if your wallet or purse is stolen, the thief will have a treasure chest of new toys to play with. Carry only the cards and/or checks you'll need for any one trip. And keep a written record of all your account numbers, credit card expiration dates, and the telephone numbers of the customer service and fraud departments in a secure place--at home.
Keep your receipts
When you make a purchase with a credit or debit card, you're given a receipt. Don't throw it away or leave it behind; it may contain your credit or debit card number. And don't leave it in the shopping bag inside your car while you continue shopping; if your car is broken into and the item you bought is stolen, your identity may be as well. Save your receipts until you can check them against your monthly credit card and bank statements, and watch your statements for purchases you didn't make.
When you toss it, shred it
Before you throw out any financial records such as credit or debit card receipts and statements, cancelled checks, or even offers for credit you receive in the mail, shred the documents, preferably with a cross-cut shredder. If you don't, you may find the panhandler going through your dumpster was looking for more than discarded leftovers.
Keep a low profile
The more your personal information is available to others, the more likely you are to be victimized by identity theft. While you don't need to become a hermit in a cave, there are steps you can take to help minimize your exposure:
- To stop telephone calls from national telemarketers, list your telephone number with the Federal Trade Commission's National Do Not Call Registry by calling (888) 382-1222 or registering online at www.donotcall.gov
- To remove your name from most national mailing and e-mailing lists, as well as most telemarketing lists, write the Direct Marketing Association at 1120 Avenue of the Americas, New York, NY 10036-6700, or register online at www.dmachoice.org
- To remove your name from marketing lists prepared by the three national consumer reporting agencies, call (888) 567-8688 or register online at www.optoutprescreen.com
- When given the opportunity to do so by your bank, investment firm, insurance company, and credit card companies, opt out of allowing them to share your financial information with other organizations
- You may even want to consider having your name and address removed from the telephone book and reverse directories
Take a byte out of crime
Whatever else you may want your computer to do, you don't want it to inadvertently reveal your personal information to others. Take steps to help assure that this won't happen.
Install a firewall to prevent hackers from obtaining information from your hard drive or hijacking your computer to use it for committing other crimes. This is especially important if you use a high-speed connection that leaves you continuously connected to the Internet. Moreover, install virus protection software and update it on a regular basis.
Try to avoid storing personal and financial information on a laptop; if it's stolen, the thief may obtain more than your computer. If you must store such information on your laptop, make things as difficult as possible for a thief by protecting these files with a strong password--one that's six to eight characters long, and that contains letters (upper and lower case), numbers, and symbols.
"If a stranger calls, don't answer." Opening e-mails from people you don't know, especially if you download attached files or click on hyperlinks within the message, can expose you to viruses, infect your computer with "spyware" that captures information by recording your keystrokes, or lead you to "spoofs" (websites that replicate legitimate business sites) designed to trick you into revealing personal information that can be used to steal your identity.
If you wish to visit a business's legitimate website, use your stored bookmark or type the URL address directly into the browser. If you provide personal or financial information about yourself over the Internet, do so only at secure websites; to determine if a site is secure, look for a URL that begins with "https" (instead of "http") or a lock icon on the browser's status bar.
And when it comes time to upgrade to a new computer, remove all your personal information from the old one before you dispose of it. Using the "delete" function isn't sufficient to do the job; overwrite the hard drive by using a "wipe" utility program. The minimal cost of investing in this software may save you from being wiped out later by an identity thief.
Be diligent
As the grizzled duty sergeant used to say on a televised police drama, "Be careful out there." The identity you save may be your own.
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2011. See disclaimer at the end of this newsletter. | |
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What's New @ Cassaday
Babies! Babies! Babies! We are experiencing a baby boom here at Cassaday & Company and we couldn't be more excited! Steve's assistant Lori Triplett and her husband Billy are expecting their first baby, a little boy, at the end of the month. An excited Christopher Krell and his wife Donika are set to become first-time parents this July. And, Chris Young and his wife Lizzie are expecting Baby #2 in mid August.
The runners at Cassaday & Company have been pounding the pavement. Mike Carey, First Vice President, completed his third marathon in Richmond, VA and Chris Miller, Director of Financial Planning, finished the Marine Core Marathon this Fall. Linda Stewart, Director of Client Services and Chief Compliance Officer, has been recently sidelined and is recovering from Achilles tendon surgery but hopes to be back to running this spring; in fact she has already registered for her next half marathon in September.
Donations aren't just about time and money! Cassaday's Chief Operating Officer, Allison Huke, got a new look and alongside, donated 8 inches of her hair to Pantene's Beautiful Lengths program. Allison's hair will be used to create a real-hair wig that will be donated to women living with cancer. This is the second time a Cassaday employee has donated her hair to this worthy cause.
Sean Gallahan has been promoted to Associate Financial Planner and has started taking on his own clients. He recently achieved his status as a CERTIFIED FINANCIAL PLANNER™ professional through Georgetown University's Executive Certificate in Financial Planning program. Sean joined Cassaday in 2008 after graduating from Radford, Steve Cassaday's alma mater.
At Cassaday & Company we have a tradition of hiring many of our interns once they graduate from college. Tyler Abell is the most recent intern to join us full-time as an Investment Management Associate. He graduated from Bucknell University but don't tell Steve! Tyler will be assisting with the monitoring of changes in client portfolios and market conditions. He is a Washington, DC native and can be found hanging out with friends in Georgetown when he is not hard at work.
Alex Karkeek, another of the firm's associates, recently earned his Chartered Mutual Funds Counselor (CMFC) designation through the College for Financial Planning. The CMFC designation is the only mutual fund designation recognized in the financial services industry. This is the first step in achieving his ultimate goal of becoming a CERTIFIED FINANCIAL PLANNER™.
Cassaday & Company, Inc., Named a "Best Place to Work" in Virginia, Again!
Cassaday & Company has been named as one of the 2012 Best Places to Work in Virginia by Virginia Business magazine and Best Companies Group. This is the third award Cassaday & Company has received in recent months acknowledging its excellence in the workplace. We were also recognized as one of the area's 50 Great Places to Work by Washingtonian magazine for the second year and a Best Place to Work in 2007, 2008 and 2011 by the Washington Business Journal.
Click here to see all of Cassaday & Company's recent awards and accolades. |
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 Helpful Hints
We realize that new technology is sometimes confusing and cumbersome to navigate. Our goal is to make the process of accessing your account information as easy as possible. There are two systems, NetExchange Client (NetEx) and the Tamarac Portal System that are available to you online. To access NetEx Client and Tamarac simply go to Cassaday's website, www.cassaday.com, and click on the "Account Access" tab in the upper right corner or you can simply click here.
NetExchange Client (NetEx)
NetEx provides you with access to account balances, portfolio holdings, account activity, order statuses and cost-basis information. You can also use NetEx Client to retrieve Monthly Brokerage Statements, Year-End 1099 Tax Forms and Trade Confirmations.
Should you forget your password or need assistance navigating NetEx Client, please call 703-506-8200 to speak with Amera Ellmore (amera@cassaday.com) or Julia Goldberg (julia@cassaday.com).
Tamarac Portal System
Tamarac is where you will find your account information, performance reports, quarterly reports and Gains & Loss statements. Tamarac provides a document lock-box feature that allows us to securely share important documents with you, and vice versa. You can also view accounts held outside of Cassaday, such as annuities and 401(k)s, which can be aggregated with existing accounts.
Should you forget your password or need assistance navigating Tamarac, please call 703-506-8200 to speak with Chad Cassaday (chad@cassaday.com).
Corestone Accounts
Consolidating your financial affairs, including checking, savings and credit cards with Cassaday & Company, Inc. will greatly simplifies all of your money matters. Our Corestone account (formerly ProCash) is a great way to simplify your financial situation. This is a FREE service that we believe is a viable alternative to most checking and credit card arrangements especially now that banks are raising fees to consumers. Click here to read an informative brochure on a Corestone or, contact Amera Ellmore at 703-506-8200 or amera@cassaday.com. |
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Great Question from a Client
Steve,
I have been hearing a lot about annuities lately. How do I know if a variable annuity makes sense for me?
Thanks,
Carol
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Carol,
This is a great question and one that I have been asked a lot in recent months. Variable annuities make sense for certain people in specific circumstances, and have recently gained popularity due to the income protection they can offer in retirement. Approximately 5% of the money that we manage is in variable annuity vehicles. Although many of these annuities came from previous advisors, we have also found them to be a good fit for some of our clients. There are positives and negatives with all investments that one needs to carefully weigh before making a decision. The main advantages of variable annuities are the tax deferral growth and unlimited contributions. Unlike investing in an IRA or 401(k) where there are annual contribution limits, one can invest as much as needed in a variable annuity, tax deferred, to meet their income goals in retirement. Furthermore, variable annuities have evolved so much that many of them offer ways to protect your income in retirement through guaranteed growth in the accumulation phase and lifetime income in retirement without losing access to the lump sum investment. On the negative side, annuities are often expensive and can also have high surrender fees if money is taken out early, thus they may not be a fit for many of our clients' investment strategies, especially when the need for liquidity is high. For instance if you needed to take your money out prior to age 59 ½ you may also be subject to a 10% federal income tax penalty. If you are interested in speaking to someone about annuities, please contact your advisor or our Director of Advanced Strategies, Carmen Bississo.
I hope this helped to answer your question.
-Steve
Disclaimers: Investors should carefully consider the investment objectives, risks, charges and expenses of variable annuities and the underlying funds before investing. This and other information can be found in the prospectus for the variable annuity and the prospectuses for the underlying funds, which can be obtained by calling 703-506-8200. Please read them carefully before you invest.
Variable annuities are long-term investments suitable for retirement funding and are subject to market fluctuations and investment risk, including the possibility of loss of principal. Annuities generally contain fees and charges which include, but are not limited to, mortality and expense risk charges, sales and surrender charges, administrativefees, charges for optional benefits and riders, and annual contract fees. Annuity guarantees, including guarantees associated with benefit riders are subject to the claims-paying ability of the insurance company. Surrender charges may apply if money is withdrawn before the end of the contract. All withdrawals of tax-deferred earnings are subject to current income tax, and, if made prior to age 59½, may also be subject to a 10% federal income tax penalty. Additionally, if purchased within a qualified plan, an annuity will provide no further tax deferral features. The contract, when redeemed, may be worth more or less than the total amount invested. All other benefits are available for an additional cost. It is important to weigh the costs against the benefits when adding such options to an annuity contract. |
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Please feel free to this newsletter to someone special in your life who could benefit from objective investment management advice. At Cassaday, we are never too busy to be a resource for you, a family member, friend or colleague.
Thank you,
Stephan Quinn Cassaday, CFP®, CFS
President
8180 Greensboro Drive, Suite 1180
McLean, VA 22102
703-506-8200 or 800 672 2102
www.cassaday.com
Securities offered through Royal Alliance Associates, member FINRA/SIPC. Investment advisory and insurance services offered through Cassaday and Company, a registered investment adviser not affiliated with Royal Alliance Associates.
IMPORTANT DISCLOSURES Securities offered through Royal Alliance Associates, member FINRA/SIPC. Investment advisory and insurance services offered through Cassaday and Company, a registered investment adviser not affiliated with Royal Alliance Associates.
Third-party rankings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the advisor by any client nor are they representative of any one client's evaluation.
Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance is no guarantee of future projections. There are no guarantees that these results will be achieved. Please note that invidual situations can vary. Therefore. the information presented here should only be relied upon when coordinated with individual professional advice.
A panel of Washingtonian Magazine editors and writers reviewed more than 200 companies and 13,000 responses to employee surveys to develop the list. Winners were chosen on the basis of such measures as: generous pay and benefits, challenging and interesting work, great work/life balance, opportunities to learn and grow, financial stability, commitment to charity and communication and the recognition and respect given to employees.
To be considered for participation in Best Places to Work list created by Virginia Business and Best Companies Group, companies had to fulfill the following eligibility requirements: be a for-profit or not-for-profit business or government entity, be a publicly or privately held business, have a facility in the state of Virginia, have at least 15 employees working in Virginia and have been in business a minimum of 1 year. Best Companies Group managed the overall registration, survey and analysis process and determined the final rankings. For more information on the Best Places to Work in Virginia program, visit www.BestPlacesToWorkVA.com.
Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, or legal advice. The information presented here is not specific to any individual's personal circumstances.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
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Employee Spotlight:
Kay Ngiam
Investment Management Associate
* Joined Cassaday & Company three years ago, after a successful summer internship
* Assists with monitoring client portfolios and market conditions, along with managing our contact management database
* Prepares reports for the Investment Policy Committee which decides the overall investment policy of the firm
* Recently took on the responsibility of the trading functions at the firm, as a back-up to our Director of Investment Management
* Graduate of Tennessee Tech University, where she competed in NCAA Division I tennis
* Originally from Malaysia, she currently resides in Reston, Virginia
To learn more about Kay and the rest of the Cassaday team, please click here.
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