In This Issue
Happy New Year!
You survived 2006-2009! 2008 was the worst year in the market in the last 200 years! Many investors lost more than 50% of their portfolios, but you didn’t! Why…because you stayed globally diversified, invested in 40 countries, and owned 12,000-14,000 unique stocks and bonds! The efficient Free Market strategy protected you from experiencing the biggest losses during down markets, and allowed you to benefit from dissimilar market cycles receiving market returns. Remember, don’t compare the Free Market Funds with the S&P, as the S&P is not diversified…it is only one sector of risk, and you are in 16-20 unique sectors of the market. The absolute winners during these tough times are the investors who invested more money into their accounts while the market was on sale!
Last year, we did great! Unaudited Free Market average returns are: Balanced 16% (50% stocks/50 % bonds), Long Term Growth 27% (75% stocks/25% bonds), and Aggressive 33% (95% stocks/5% bonds). Your account returns also depend on how long you have been in the Free Market Portfolios. Time is your friend, so if you moved to Matrix in 2001 or 2002 you will have better returns than investors who moved to Free Markets in 2003!
New Year Financial Tune Up!
Take a look at your budget. Does it need adjusting? Are you spending your savings or investments? There is no time better than the present to make a change! Are your spending decisions bringing you closer to your goals? If you have not taken the True Purpose for Money/Life class, you might not have written goals. Start by setting short term and long term goals for yourself and your family. Do you have an Emergency fund to carry you through a month with out a paycheck? Do you have credit cards with a balance? Consider these goals: Increase your retirement savings, increase your giving beyond your tithing, or possibly work less and volunteer more. If you are in good shape maybe you have children who are struggling. How much is too much to help your heirs? We are happy to help you with these issues and Crown Ministries is a wonderful resource for classes on budgeting topics. We suggest college age children, who are about to be on their own, attend a Crown Ministry class to learn the tools to excel in the responsibilities of managing their money: http://www.crown.org/CrownEvents/default.asp .
Custodian Fee Calculations
Matrix reports your Advisory Fee amounts, there are two ways to get your Custodian Fee amounts, you need to use your Custodian statements or log onto MyMatrix.cc. If you moved accounts in 2009 from TCA (Trust Company of America) to US Bank to lower your custodian fees, go to each of your moved (closed) accounts’ last statements to obtain the amount of fees you paid. Make sure you add the pre-moved custodian fees to the post-moved custodian fees, so you give your tax preparer one number…a total number of all fees, Custodian and Advisory.
An easy way to see the Custodian fees is on myMatrix.cc.
- Log in
- Click the tab at the bottom of the page: SHOW ZERO ACCOUNTS. Your closed accounts will be listed under your current active accounts.
- Print this page as your worksheet. You will want to check off the accounts as you complete them and write in their advisory fees.
- Click on STATEMENTS.
- Select CUSTODIAN, not Matrix, as your Matrix statement does not include your Custodian fees.
- Select PERIOD: 200909. If you only moved a portion of your accounts, your 9/30 report will give you what you need, your Year to Date totals for 2009 (remember, your last quarter fees are paid in January, so don’t use your 12/31/09 fee values).
- Now select one of your account numbers on the drop down list on the right. The easiest way is to just start at the top of the list and work down, recording on your worksheet the fees listed on page 4 of the US Bank report and page 1 of the TCA reports.
- Make sure you use the right Year to Date column.
- Repeat for each account.
Once you have the fees for your new US Bank accounts and all the TCA accounts you did not move, We have tried very diligently to consolidate your accounts, so you don’t have extra fees…some might have also closed US Bank accounts, like Phyllis did. The PERIOD for the closed account is the end of the quarter after you closed your account (s). If you select a later quarter the computer will tell you there is no history. Phyllis moved Jerry and her accounts in February, so she found their fees on the 3/31/2009 PERIOD report. If you cannot remember when you moved your accounts, your current account will show when your money moved in. The next statement after you closed your Custodian account should be requested.
Sold Taxable Accounts?
If you sold some of your Matrix accounts in 2009, go to myMatrix.cc, select the account, and then select COST BASIS at the bottom of the page. This will give your Tax Preparer exactly what is needed for your taxes.
Annual Gifts
The beginning of a new year means it is time to give your annual exemption ($13,000 for 2010) to your loved ones. No one knows God’s plan for your life, and this gift must be given while you are alive. If married, you can each give $13,000 to the same person without incurring any taxes for either the giver or recipient.
Kingdom Advisors
Phyllis and Maria are Certified Members of Kingdom Advisors which is an organization that brings Christian financial professionals together to help build their practices with Biblical world views and brings focus on how to have the greatest Kingdom impact, not for just the clients, but for our business also. Maria is going through a 3 year intensive coaching program lead by some of the top Christian educators and coaches in the stewardship arena. What does this mean for you? It puts us on your team to help you find your way from success to significance. We will help you in using your time, talents or treasures to have a greater impact in the world around you. Charles Handy in The Hungry Spirit said “We only really find ourselves when we lose ourselves in something beyond ourselves” If you are getting the feeling that you are not on the right path, contact us. We want to help you!
Inland
Clients are reporting they are receiving offers for their Inland investments. We no longer receive your statements, so please email us your questions, but up till now, all the offers have been from companies that want to take away your benefits. You should be receiving reports directly from Inland, the best way to keep up with your investments. Let us know if you need some help or guidance.
IRA to Roth Conversions
Congratulations to those of you who converted your IRAs to your Roths, start saving NOW to pay your taxes in 2011 & 2012. If you want to do this conversion and have not, you have this year ONLY, to convert and have TWO years to pay your taxes. After 2010, any conversions will only have one year to pay the taxes. If you plan to live 10 years and are younger than 60, please consider converting before the lower tax rates are scheduled to change in 2011. Contact Deb if interested.
WAG ADV
Every year, WAG (Wealth Advisors Group), our Michigan Registered Investment Advisor entity must renew its registration (called the ADV Part II) with the State of MI. It is about 23 pages long and states how we do business. If you desire to see a copy of our WAG ADV, contact Deb. We will gladly send you a copy, once it is registered with the State of Michigan.
2010 Event Schedule
We are expanding our class offering…you can now take ALL the Free Market and Stewardship classes, plus the Life Coaching Series I, all in one summer! We would like all our clients and family members with accounts to attend these classes. Only with knowledge can you enhance your Peace of Mind and understand that you are in the LAST investment strategy you will every need, your children will ever need, and the last investment strategy your great grandchildren will ever need! Come and find out WHY!!!
The class dates could be changed at any time, but we would like you to check your calendars and let Deb know of your interest for each event, so if dates are changed, we can contact you directly.
Check your class list to see what classes you still need to take to graduate from the 12 Free Market/Investor Education Classes (see link), or what classes you would like to retake! New students will receive a 3” 3 ring binder, handouts, and class dividers.
Call Deb with the list of classes you are attending and the location.
The parties are for you to bring friends and relatives, someone who you would like to introduce to us. Please take this opportunity to spend some time relaxing and investing in your friendships.
May 20 Thursday Grand Rapids Boot Camp: Free Markets Series I & II (Classes 2-8)
May 22 Saturday Grand Rapids WWC Spring Party: Meijer Gardens (Clients bring friends)
May 25 Thursday Plymouth Boot Camp: Free Markets Series I & II (Classes 2-8)
June 10 Thursday Grand Rapids Boot Camp: Free Markets Series III (Classes 9-12) & Life Stewardship (Classes 1-3)
June 15 Tuesday Plymouth Boot Camp: Free Markets Series III (Classes 9-12) & Life Stewardship (Classes 1-3)
August 7 Saturday Plymouth WWC Pool Party: Wordhouse Home (Clients bring friends)
August 17 Tuesday Grand Rapids Boot Camp: Life Coaching I (Classes 1-4)
August 19 Thursday Plymouth Boot Camp: Life Coaching I (Classes 1-4)
Pass It Around
Please share your Free Market knowledge with your favorite people and help save them from the financial abuse given out by active money managers. They need help on their investment journey and you are the right person to pass it around! THEY WILL THANK YOU FOR CARING ABOUT THEM!
Contact Information
Don't keep all this good information to yourself – "share our wealth coaching advice" by forwarding this newsletter to friends and family members you really care about!
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