As of 11/06/2017, YTD the
S&P 500 has risen 15.4%
while the DOW has climbed
18.58%. The NASDAQ has
risen an impressive 25.45%
for the year.
The MSCI EAFE Index, which
represents the stocks of the
developed International mar-
kets, managed a total return
of 22.71% for the year.
The 10 year U.S. Treasury
sits at 2.30%, the yield curve
the flattest it’s been since
2007. The Feds likely to raise
rates once more 2018.
Quarterly
Investment
Newsletter
Wint er 2017
MARKET WATCH The Aging Bul l
by: Jeremy I. Beck
The Aging Bull
(Cont’d from
Page 1)
PAGE 2
The Aging
Bull
by: Jeremy I.
Beck
Backdoor
Roth IRA:
Is it for you?
PAGE 3
Helping You
Meet Your
Financial Goals.
Dream.
Plan.
Enjoy.
PAGE 4 PAGE 1
It appears that the morale of this story is to ride the
bull for as long as possible and make sure you are
not exposed to the wrath of bear. Using the figures
above, an all equity portfolio worth $2,000,000
would be worth $1,180,000 after being destroyed
by the average bear. As we all know, being annihi-
lated by a bear market is not an option since many
of us simply don’t have
enough years to recover from
such a catastrophic
loss. Moving forward, what
are our options? In the sim-
plest terms, there are three
possible solutions. First, you
could remain overweight
equities and be fortunate
enough to exit at precisely
the right time, protecting all
of your gains. As this is high-
ly unlikely, (did you sell all your equities in October,
2017?) your second option would be to close your
equities and remain in a conservative bond portfo-
lio with an average yield of roughly 2.5%. The is-
sue with this solution is the risk of missed oppor-
tunity for further equity gains. Furthermore, when
you factor in taxes and inflation on a yield of 2.5%,
your net return for this option is closer to a 0.5%.
(story continued on Page 2)
The current bull market was born at a tumultuous
time at the end of the Great Recession, wel-
comed to the world on March 9, 2009. This bull is
approaching a decade old and will remain intact
until there is at least a 20 percent drop in the S&P
500 (which would signify the birth of our next bear
market).
You may ask, what is the typ-
ical life expectancy of a bull?
If you guessed 9.0 years, you
would be correct.
The shortest bull market lasted
merely 2.5 years (1970 – 1972)
and the oldest bull passed
away after 15.1 years roaming
the United States from 1947 to
1962. Although past market
performance is not a guarantee of future results, I
believe that looking at the history of the market’s
expansions and recessions will help you gain an
edge when investing for the long term. As noted
above, the average bull market is 9.0 years in
length, whereas the average bear market (when
the market closes down at least 20% from its
previous high) lasts only 1.4 years. During the
average bear market, the average cumulative
loss is -41.0%!
VOLUME 85
From the Desk o f Jerem y I . Beck
President , Custom W eal th Strategies
4990 Transit Road, Depew, NY 14043 www.customwealthstrategies.com
5 FIVE
FACTS
ABOUT
BUFFALO
The Aging Bull (continued)
DID YOU KNOW?
Only 5 stocks in the S&P 500 accounted for
52% of the gain YTD as of 10/31/2017. They are
Facebook, Apple, Amazon, Google, Microsoft.
Without Tech stocks the S&P
would be up only 0.5%.
Call Jeremy Beck today to schedule your complimentary, comprehensive portfolio review!
Do you own any micro or small cap stocks that
may only sell a handful of products or ser-
vices? If so, consider multi-national, high quality,
dividend paying equities that may have thou-
sands of products in their portfolio. In summary,
we all know a bear market is somewhere over
the horizon, but based on the leading economic
indicators, we have time to prepare. Take this
time to carefully examine each position in your
portfolio to determine how these companies react
to times of uncertainty. If you need assistance
running a thorough analysis, we are only a call or
email away.
Happy Holidays-Jeremy I. Beck
Last but not least is what I feel is the ideal solu-
tion for our current market situation, which can
be summarized in three words: QUALITY,
QUALITY, QUALITY. Since all the economic
forecasts we use does not put a bear on our
doorsteps in the immediate future, you have time
to dramatically upgrade the quality of your port-
folio. The ideal portfolio would own all “Brand-
name” stocks and discard all the lesser known
companies. Own any companies that are not
profitable? If so, I would suggest replacing these
stocks with companies that have a track record
of expanding profitability, quarter after quarter,
year after year.
Once home to more millionaires per
capita than any other city in the Unit-
ed States, the WNY community be-
came a booming center for trade and
manufacturing with the opening of the
Erie Canal in 1825.
#1: Even with all that snow, city law
prohibits the throwing of snowballs,
except in designated areas.
#2: During the War of 1812, the Brit-
ish burned all but a few of Buffalo’s
150 buildings on December 30, 1813.
One of the only remaining structures
was the local jail.
#3: Built in 1896, the Ellicott Square
Building on Buffalo’s Main St. was
once the largest office complex in the
world.
#4: Originally known as the Statler
Hotel, the Hotel Buffalo (built in 1907)
had private bathing areas and running
water in each room before any other
hotel worldwide.
#5: The annual YMCA Turkey Trot,
which began in 1896, is the oldest
continually running public footrace in
North America.
Statler Lobby—2017
Backdoor Roth IRA, Is It For You?
Introduction
Roth IRAs are a unique and powerful way to
save for retirement. An investor pays taxes up
front on a Roth IRA, but after that, all growth
and withdrawals are tax-free once you reach
age 59 1/2. In addition, Roth IRAs are not sub-
ject to the age 70 1/2 mandatory distributions
rules of Traditional IRAs, which allow your in-
vestments to continue to grow tax-free!
The Issue
An investor with modified adjusted gross in-
come over a certain limit is not able to contrib-
ute to a Roth IRA and enjoy the benefit of tax-
free distributions during retirement. For single
filers in 2017, that income threshold started at
$118,000 and ends at $133,000. In that range,
your contribution is limited and eventually
reaches zero. For married couple filing jointly,
that income threshold starts at $186,000 and
ends at $196,000.
The Solution:
A backdoor Roth IRA allows you to get around income limits by converting a Traditional
IRA into a Roth IRA. Currently, anyone can convert money that they have placed into a
Traditional IRA into a Roth IRA, regardless of how much they earn. As an added bonus,
you can also roll as much money as you want from an existing Traditional IRA into a Roth
IRA.
Keep in mind, you are not avoiding taxes by rolling your Traditional IRA to a Roth IRA! Any
monies that you are rolling out of your Traditional IRA will be taxes as income and you
have to be careful that this additional income does not push you into a higher income tax
bracket in the year of the conversion. On the flip side of the coin, if your income happens
to be unusually low in a particular year, (possibly from a reduction in employment, etc.) you
could take advantage by making a Roth IRA Conversion at that time.
Converting to a Roth (Two Ways):
The first method is to contribute to an existing Traditional IRA; then roll over the money to a
Roth IRA account. The second is to convert an entire Traditional IRA account to a Roth
IRA. In this instance, your Traditional IRA doesn’t have to be new as you can roll over ex-
isting Traditional IRA money to a Roth.
Don’t Hesitate to Ask an Expert:
A Roth IRA is one of countless financial planning tools at our disposal. If you need assis-
tance, feel free to contact Jeremy Beck directly at 716-771-1888 or send him an email at
FREE Investment Seminars
Coming March 2018
MARKET OUTLOOK:
Invest ing in
Uncerta in Times
Presented by:
Jeremy I . Beck
President
Custom Weal th
Strategies
Seminar Dates :
Check the
“EVENTS”
section
of our website
for details!
Where:
Call Gwen, Brooke, Trish
@
716-771-1888
D R E AM P L AN E N J O Y
Custom Wealth Strategies
President, Jeremy I. Beck
4990 Transit Road, Depew, NY 14043
Phone: 716.771.1888 / Email: [email protected]
Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services offered through CES Insurance Agency.
Investments are subject to risk, including the loss of principal.
Some investments are not suitable for all investors, and there is no guarantee that any investing goal will be met. Past performance is no guarantee of future results.
Helping You Meet Your Financial Goals
Our Philosophy:
Showing respect for others and treating people as you would like to be treated
can be lost in today’s world. We will be remembered for the values we teach our
children and how we treat others. I work extremely hard for my client’s success
and I do this with honesty and integrity.
That may sound simple, but it’s something that many advisors seem to have for-
gotten. By working hard and listening to our clients each and every day, Custom
Wealth Strategies now manages more than $200, million in client assets,
a responsibility not taken lightly.
Complimentary, Comprehensive Portfolio Review:
We provide comprehensive financial planning and investment management solu-
tions. Our subject matter experts work collaboratively to craft strategies that inte-
grate and simplify the management of your wealth. As an Independent Financial
Firm, we do not have any proprietary investment products. Which enables us to
act in YOUR best interests, always.
Contact:
Jeremy Beck, President of Custom Wealth Strategies to set up your
complimentary, comprehensive portfolio review. He can be reached directly at
716-771-1888 or email [email protected].
716.771.1888
www.customwealthstrategies.com
Stop in to see our beautifully
remodeled office and meet Jeremy
and his team.