2006 Newsletters Archives - Sycamore Financial Group

Elections and the Stock Market – Winter 2006

Hello from Sycamore,

There has been a lot of speculation recently about the affect the recent elections may have on the stock market, so I thought I’d do a little reading to see what the numbers say.

The White House: I came across an article written by Jeremy Siegal Ph. D., that compared the stock market performance starting in 1948 while Republicans or Democrats controlled the White House. This comparison falls heavily in favor of Democrats. Under Republican presidents for this period, the market gained just over 9.5% per year while under Democratic presidents it gained more than 15% annually. The article did not identify which index was used as a measure, but I’m assuming a broad index similar to the S&P 500.

Now, to the recent mid-term elections where we saw a shift of power; So far, the most recent election seems to be having no significant effect (negative or positive) on the market. It’s continuing to roll along at a good clip. In the past we’ve seen similar results. An article by Dirk Hofschire posted on Fidelity’s investment website, states that for the one year period following the last five mid term elections, the Democrats are followed by slightly better stock market performance (24% to 20%). But what really struck me in this article, was the amount of the one year return immediately following these mid-term elections regardless of the winner. Large and small cap stocks since 1950, averaged 17.2% for the year immediatly following the election. For the years when the election of congress coincided with a presidential election, the return averaged 13.3%. When the congressional election was not a presidential election year, (such as just passed) stocks averaged 32.9% for the 12 months following the election….interesting!! Lets hope for average this year!

While this type of information can be entertaining and fuel for banter, I personally think that the Democratic vs Republican differences are merely coincidence. Additionally, it’s important for you to know that we do not use this type of information when investing your money. We stay focused on fundamental information, such as earnings and dividends. We pay no attention to the man behind the curtain!

As always, feel free to contact us with any question or request. Kokomo 765-455-1554 Anderson 765-643-9333.

Thanks for your business and trust,

Sycamore Financial Group

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Past performance does not assure future results. Investors cannot invest directly in the stock market indexes such as the S&P 500. Invest return and principal value of an investment will fluctuate. Investor value, when sold, may be worth more or less than their original cost. The material in this presentation is for illustrative purposes and does not reflect any particular investment.

By Sycamore Financial Group|2022-07-21T12:05:45-04:00December 20th, 2006|2006 Newsletters|0 Comments

Investment Rates – Fall 2006

Hello from Sycamore,

Money Market Accounts, Free Checking and CD’s

Over the last year or so interest rates have risen to more normal levels. We thought this would be a good time to remind you of some of the “cash” type of investments that are available to you through your account with Sycamore Financial Group.

Money Market: All of our accounts come with a money market* attached automatically. Currently this account earns interest at the rate of about 4.4% You may already know that a money market account works essentially the same as a savings account. You can elect to have checks issued on this same money market account if you would prefer to use it as a savings/checking. There are no limitations on the checking privilege which is free.

There is a $100 minimum balance required to earn any interest.
You may elect to have a “stand alone” money market account with free checking. This can be a good way to earn more on business checking accounts.

Certificates of Deposit: Each week we receive CD** offers from about 50 or so banks. We simply buy the one that suits the client best. Three months to five years and most everything in between.

Most of us keep a little “mad money” available in these types of accounts. Chances are we can help you earn a better rate of interest.

As always, feel free to contact us with any question or request. Kokomo 765-455-1554 Anderson 765-643-9333.

Thanks for your business and trust,

Sycamore Financial Group

_________________

Past performance does not assure future results. Investors cannot invest directly in the stock market indexes such as the S&P 500. Invest return and principal value of an investment will fluctuate. Investor value, when sold, may be worth more or less than their original cost. The material in this presentation is for illustrative purposes and does not reflect any particular investment.

By Sycamore Financial Group|2022-07-21T12:12:24-04:00September 29th, 2006|2006 Newsletters|0 Comments

Tax Increase Prevention – Summer 2006

Hello from Sycamore,

Tax Increase Prevention and Reconciliation Act of 2005

We all received some good news on the tax front recently when president Bush signed the Tax Increase Prevention and Reconciliation Act of 2005 into law. This tax law basically extends the current tax advantages given to stock dividends and realized capital gains for two additional years through December 31st 2010.

As you are likely already aware, stock dividends and capital gains are taxed at a reduced rate from ordinary income. If you are in the 10% or 15% marginal tax bracket, your dividends and capital gains are currently taxed at 5%. This is a substantial savings (66% less) from the tax rate on your ordinary income. If you are in the 25% marginal bracket or higher your dividends and capital gains are taxed at 15% a savings of 10% to 20% depending on your bracket. The new law extends these lower rates for dividends and realized capital gains through 12/31/2010.

Additionally, if your dividends and capital gains would ordinarily be taxed in the 15% bracket (the 5% tax rate as described above), they will be tax free for the years 2008, 2009 and 2010.

These reduced tax rates do not apply to fixed investments such as Corporate Bonds,CD’s or Savings Accounts.

As interest rates rise and start to compete with stock returns, this tax advantage should continue to give equity investors a significant tax advantage. This could help support stock prices relative to other investment options.

If you have been wanting to convert your regular IRA to a ROTH but your taxable income is too high, there is some (deferred) good news for you in this new law. Starting in 2010 the $100,000 modified AGI limitation no longer applies. Additionally, income created by the Roth conversion can be spread over tax years 2011 and 2012.

Another change in the new law is an increase in the exemption amounts for AMT (Alternative Minimum Tax). In 2006 (only in 2006) the exemption amounts are $62,550 for Married Filing Jointly,$42,500 for Single filers and Head of Household and $31,275 for Married Filing Separate.

Finally, more than a few of you will be interested to know that the “Kiddie Tax Law” now applies to children under the age of 18. The previous law applied only to children under 14 years old.

If you have any questions about the new tax law or it’s effect on you, feel free to drop us an e-mail or give us a call. Kokomo 765-455-1554 Anderson 765-643-9333.

Thanks for your business and trust,

Sycamore Financial Group

_________________

Past performance does not assure future results. Investors cannot invest directly in the stock market indexes such as the S&P 500. Invest return and principal value of an investment will fluctuate. Investor value, when sold, may be worth more or less than their original cost. The material in this presentation is for illustrative purposes and does not reflect any particular investment.

By Sycamore Financial Group|2022-07-21T12:26:52-04:00July 22nd, 2006|2006 Newsletters|0 Comments

E-mail Delivery of Annual Reports – Spring 2006

Hello from Sycamore,

E-mail delivery of annual reports & proxy information

Many of you enjoy and benefit from the reports that arrive each year from the companies in which you own shares. Others are not interested and would prefer that we not send them. We are required to send the reports. However whether you enjoy the reports or not, you can change these mailings from your regular mailbox to your e-mail “in box”. Then it’s simply a matter of deciding if you want to keep and review, or delete. This is a good way to save a few trees, some money for the company your invested in and get back into the good graces of your postal carrier.

If you have received a mailing and would like to receive future mailings via e-mail do the following.

Go to www.investordelivery.com
Enter the control number from your facing page. This number generally has an arrow pointing to it and will likely be in a box.
Select the submit button on the left for initial enrollment.
Enter your e-mail address and a PIN (any PIN you would like to create should be okay).
Next check the box at item five.
Click the “submit” button.
Your finished!

This is not a global authorization, you must do this for each company that you own.
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If you have received a proxy to vote and want to vote your shares electronically, then sign up for e-mail delivery of future proxies and other mailings, simply follow the instructions below.

When you receive a proxy, go to www.proxyvote.com
Enter the control number from your facing page. This number generally has an arrow pointing to it and will likely be in a box.
Next select the option to vote. Since you received your proxy by regular mail, select the vote button on the left.
At the next page you can make voting selections if you wish, or simply vote the “directors recommendations”.
On the following page, click on “final submission”.
On the next page, click on “Click here to sign up for electronic delivery”.
The last page asks you to enter your e-mail address and provide a PIN (any PIN you would like to create should be okay).
Next check the box at item five.
Click the “submit” button.
You’re finished!

Remember, these authorizations are not global and must be completed for each company that you own. Feel free to call us if you have any difficulty.

Thanks for your business and trust,

Sycamore Financial Group

_________________

Past performance does not assure future results. Investors cannot invest directly in the stock market indexes such as the S&P 500. Invest return and principal value of an investment will fluctuate. Investor value, when sold, may be worth more or less than their original cost. The material in this presentation is for illustrative purposes and does not reflect any particular investment.

By Sycamore Financial Group|2022-07-21T12:06:16-04:00April 8th, 2006|2006 Newsletters|0 Comments