February Newsletter
February 7th, 2018
Captain's Log


  

Wow, hate to say "I told you so", but I'd encourage everyone to take a look at last month's newsletter and see what we said about market volatility. Over the last few days, the Dow Jones Industrial Average has had quite the swing! And by the way, the Dow is the most stable of the market indices that most folks follow - being made up of the 30 largest mostly dividend paying stocks. Other indices have been even more volatile. This past week has been one crazy roller coaster ride to say the least. We've been saying for some time now that it would be wise to "take some profits off the table", before you lose them. Especially for senior citizens that don't have time to play the "hang in there / the market always comes back game". Folks, it's a true statement that markets always "come back" (or always have so far), but there have been plenty of times markets have crashed and it's taken 5, 10, 15, 20 years to recoup losses. And it could be even worse if you're drawing income from your invested accounts. Volatility is fine when you're 30 or 40, but not so much when you're 60 or 70.

So, here's my fiduciary professional opinion for whatever it's worth. DON'T GET GREEDY! Take some profits and protect your good fortune. I say it over and over again that as we get older, we need to get safer and place a focus on ensuring that we'll have enough guarantee income in retirement. We've had one heck of a run in the stock market. We've made in two years what we'd hope for in six or eight years of a good market. It's normal for the market to "correct", then start to rise again. But for us old folks, frankly that's a younger person's game because of time. It's so easy, yet greed and fear get in the way of good old fashion common sense. I keep preaching common-sense strategies for those who will listen. I'd encourage any reader who has any concerns about their portfolio to take us up on our risk analysis program called Riskalyze. It will determine your Risk Number, and we can compare your investments to see if they line up.

Also, here's an option that just came across my desk for those of you that are looking for guaranteed rates of return. One of our insurance providers just came out with a fixed annuity that pays a guaranteed rate of 3.25% for five years. Safe, guaranteed, tax deferred, not a bad deal.

Another strategy many have been using is that of the "safe growth" fixed index annuity. These past few years these products have had double digit returns in certain indexing strategies, on top of any applicable premium bonuses. The money is not exposed to market risk in these strategies, so your gains can't be wiped out by market volatility once they've been credited. Yes, annuities have surrender schedules, so it's a longer-term strategy, but it can be a good piece in an overall plan when used properly. They now build in liquidity features that are more than adequate, and in my opinion if you don't take the time to learn more about these alternative strategies, you are simply missing the boat.

In any event, if you're concerned about market volatility, or would like your own risk analysis & Chart Your Course Retirement Plan, then just give us a call or shoot us an email and we'd be happy to help you. 

And, as always, remember -  The purpose of the money dictates where you put it. 

Until Next Month,
Jim's signature
  James D. Stillman

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Tax Planning 
in Retirement

By James D. Stillman
                                February 2018


This month I'd like to discuss the fourth of our five key areas of retirement planning included in our "Chart Your Course Retirement Plan". We previously touched on income, investment, and healthcare planning. Next up is everybody's favorite, TAXES! I want to make it clear that I am not a CPA or tax attorney, nor do I want to be. Any specific tax questions should always be directed to your personal CPA or qualified tax professional. That being said, I would like to address some basics on how taxes can play a part in your retirement plan, mainly when it comes to the issue of whether certain assets are taxable or non-taxable. 


Special Report:
February 2018

The Return of Equity Market Volatility

After an almost unprecedented period of record low equity market volatility that began in late 2016, equity markets have experienced a sharp reversal from record highs set in late January 2018. While it's somewhat difficult to identify a clear reason for this sudden pullback, excessive optimism relating to tax reform, the Federal Reserve continuing to unwind its balance sheet, rising interest rates and above average equity valuations are the likely culprits. More important, there are currently very few reasons to believe that a sudden slowdown in economic activity and corporate profitability growth is imminent.



JDS Client Corner

For those of you who have called or been into the office since the beginning of the new year, I'm sure you've noticed that something has been missing lately. Matt - Kelly's husband and our office manager for the past two plus years - has left the JDS Wealth Management team as of the end of 2017. He found his dream job at an automobile restoration shop here in town - Our Dream Auto - and has been loving every minute of his new position. Matt has always been a car fanatic and went to school at Nascar Technical Institute, so we're glad that he found a shop where he can do what he loves every day. The guys at Our Dream Auto are top notch and Matt is quickly becoming part of their shop family. 

If you're ever in the market for a restored classic car or have a project in mind for your own car, then definitely check them out. 



We will feature pictures and stories from our valued clients 
as well as our family in this section each month. 

If you'd like to be featured in next month's Client Corner, 
please email your story to kelly@jdswealthmanagement.com

All content is intended for informational purposes only. Any guarantees are for insured products only and are dependent on the claims paying abilities of the insurer.  All investments carry some risk and you should be advised by your personal financial advisor before implementing any strategies discussed, as they are not suitable for everyone. James D. Stillman is an Investment Advisor Representative of JDS Wealth Management Corporation and AE Wealth Management. 

JDS Wealth Management Corporation's outgoing and incoming e-mails are electronically archived and subject to review and/or disclosure to someone other than the recipient. We cannot accept requests for securities transactions or other similar instructions through e-mail. We cannot ensure the security of information e-mailed over the Internet, so you should be careful when transmitting confidential information such as account numbers and security holdings. If the reader of this message is not the intended recipient, or an employee or agent responsible for delivering this message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately by replying to this message and deleting it from your computer."