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 J. PINK ASSOCIATES, Inc.,
FINANCIAL ADVISORS
555 Taxter Rd. Suite 190 Ph- (914)524-7770
Elmsford, NY 10523 Fax- (914)524-7771
500 Summit Lake Dr. Suite 120 Valhalla, NY 10595 |
Weekly Market Review
for the week of - 12/13/2010 |
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| Greetings! |
Here's your weekly tip - Start thinking about your 401(k), 403(b) ... for next year, now. Now is a great time to take a look at the retirement plan you have at work to see if it needs any tweaking. For example, it may be time to re-balance; after all, this has been quite a year. It's entirely possible that your balance does not match the allocation you originally set up. If you need some guidance with this, feel free to call. The other thing to consider is how much you are contributing. If you're not at the maximum contribution, you might want to consider increasing the amount you put away with each paycheck. Perhaps you can create a plan for next year, including an increase to your contribution by XX (you figure out what is comfortable for you). While it's best to raise your contribution in January, you can always raise by a smaller amount more frequently. Perhaps quarterly.
As always, if we can offer any guidance or assistance, feel free to give us a call. |
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Market Commentary |
 Politicians in Washington may have differing opinions about the tax deal brokered by President Obama last week, but the US stock market was nearly unanimous in its support. Democrats, especially in the House of Representatives, were fuming after being left out of any negotiations that developed the plan's initial framework. Senate Democrats may have had similar feelings but pragmatically accepted the overall plan and will vote on the President's proposal on Monday afternoon (12/13/10). The stock market immediately focused on the prospects for growth in the economy that may come about from the plan's nearly $900 billion infusion of cash into taxpayers' hands over the next 2-years. The enthusiasm of stock buyers was apparent, reflected by the performance of the NASDAQ Composite as it closed the week at a near 3-year high (source: BTN Research).
But where there is growth, there is the likelihood of inflation. Bond investors reacted quickly early last week as the details of President Obama's tax plan were made public by selling Treasury bonds in order to lock in gains now. In a bond world accustomed to daily yield changes of just hundredths of +1%, the yield on the 10-year Treasury note climbed an amazing +0.31% in just 2 trading days (Tuesday and Wednesday). The average 30-year fixed rate mortgage climbed all the way up to +4.61% after having dropped to +4.17% just a month earlier (source: BTN Research).
The Federal Reserve will hold their final meeting of 2010 tomorrow (12/14/10). Discussions will focus on their month-old $600 billion bond buying plan and its stated objective to lower interest rates, a task made far more difficult following the release of President Obama's tax deal (source: Federal Reserve). |
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Notable Numbers | |
1. INVESTING - The average pre-tax elective employee deferral made into a 401(k) plan by those employees participating in a retirement plan is 7.4% of gross income (source: Employee Benefit Research Institute).
2. COMING UP SHORT - 65% of nearly 1,800 working Americans surveyed admit that they should be saving more today for their future retirement (source: Wells Fargo).
3. REQUIRED MINIMUM DISTRIBUTIONS - If you turned age 70 ½ in 2010, then you must begin taking annual withdrawals from your IRA accounts no later than 4/01/11. If you delay your 1st withdrawal until 4/01/11, you must also take a 2nd distribution by 12/31/11 (source: Internal Revenue Service).
4. DEATH - George Steinbrenner, the principal owner of the New York Yankees baseball team, died on 7/13/10. His net worth at death was an estimated $1.15 billion. Since he died in 2010, his estate will pay zero federal estate tax (under current law). Under the estate tax plan proposed by President Obama on 12/06/10, if Steinbrenner had died in 2011, his estate would have owed $401 million in federal estate taxes (source: Forbes, BTN Research).
5. THREE-YEAR HIGH - The NASDAQ Composite Index closed at 2638 last Friday (12/10/10), its highest closing value since 12/31/07. The index is up +16.2% YTD through the close of trading last week (change of the raw index not including the reinvestment of dividends). The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system (source: BTN Research).
6. MUNI BONDS- Less than 2 municipal bonds per year on average have defaulted since 1970. The municipal bonds analyzed are those receiving a credit rating from credit rating agencies (source: Moody's). |
Client Spotlight - 2010 Recap
Here is a recap of our Clients in the Spotlight for 2010 | |
March, 2010 Butch Gilbert - Effective Electric (914) 737-2651  April, 2010 Joe Ruggiero - Dom & Vinnie's Restaurant www.DomNVinnie.com DomBVinnie@yahoo.com (914) 476-6666 Click here to read Joe's Spotlight 
May, 2010 Jo Ann Burns - J. Burns Bookkeeping, Inc. www.JBurnsBookkeeping.com JBurns@JBurnsBookkeeping.com (914) 909-1575 Click here to read Jo Ann's Spotlight 
June, 2010 Michael Getman - The Law office of Michael Getmen, PLLC www.WestchesterWillsLawyer.com MGetmanESQ@optonline.com (914) 220-5475 Click here to read Michael's Spotlight  July, 2010 Al Torre - Torre Lumber www.TorreLumberAndMasonSupply.com TorreLumber@Optonline.net (914) 969-1111 Click here to read Al's Spotlight 
September, 2010 Maria Bonet - Kidville, Scarsdale www.Kidville.com/scarsdale Maria@MyKidville.com (914) 600-5544 Click here to read Maria's Spotlight 
October, 2010 Anne Miller - Chiron Associates, Inc. www.AnneMiller.com AMiller@AnneMiller.com Click here to read Anne's Spotlight 
November, 2010 Chris Vernia - Double Image Sounds & Entertainment, Bounce the party place www.DoubleImageOnline.com www.BounceThePartyPlace.com Chris@DoubleImageDJs.com (914) 773-1950 Click here to read Chris' Spotlight |
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As always, if there's anything we can help you with, please feel free to call the office anytime.
I hope you have a great week.
Sincerely,
John
John W. Pink, Sr.
J. Pink Associates, Inc.,
Financial Advisors
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At J. Pink Associates, we do comprehansive financial planning and wealth management for families and small businesses by getting to know the unique details of your financial
world and thoughtfully crafting a strategy to identify and support your goals.
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This material represents as assessment of the market and economic environment as a specific point in time and is not intended to be a forecast of future events, or a guarantee of future events, or a guaranteew of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed by NFP Securities, Inc. as to accuracy, does notpurport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. The indices mentioned are unmanaged and cannot be directly invested into. Part performance does not guarantee future results. The S&P 500 is an unmanaged index of 600 widely held stocks that is generally considered representative of the US stock market.
NFP Securities, Inc. does not provide legal or tax advice.
Securities and Investment Advisory Services offered through NFP Securities, INc. a Broker/Dealer, Member FINRA/SIPC and a Federally Registerd INvestment Advisor.
NFP Securities, Inc. does not offer tax or legal advice NFP Securities, Inc. is not affiliated with J. Pink Associates, Inc., Financial Advisors. |
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