Investment advisory services offered through Sharma Associates, Inc.
Securities offered through Resource Horizon Group, L.L.C., Member FINRA,SIPC
1350 Church Street Ext. NE3rd. Floor, Marrietta, GA Phone: 770-319-1970
Sharma Associates, Inc. and Resource Horizons Group, L.L.C. are not affiliated.

Thankfully, 2008 is behind us. At least at a professional/business level 2008 was a brutal year particularly for many in the financial sector. The global economy and financial markets have suffered their worst stretch in decades. The S&P 500 dived over 40%, the worst since 1937. In this bear market no asset class or market was untouched or sparred. This is truly a global recession. There was no place to hide, not even money market funds.

New administration and Federal Reserve are determined to engineer an economic recovery, however a bumpy ride is still the consensus forecast for 2009. The only way to sensibly deal with this market is to have a thoughtful long-term plan and a thoughtful long-term plan does not involve radical moves and certainly not selling things that have gone down in price

It is 2009, but last year’s problems are still with us. Consumers are not spending, banks are not lending and factories are slashing output. The US recession that officially began in December 2007 should extend through mid 2009, as per most analysts. Still it is worth remembering that the stock market always looks ahead, often six months or more thus considered as a leading indicator of the economy. The market has rallied many times throughout history with a recession still in full swing. If economic recovery happens in third quarter, then stock market will transition out of the bear market sometimes in first quarter.

During this time, it is a good idea to utilize dollar cost average investing strategy and it is also a good time to think of gradually getting into the market. If you are planning to retire in next five to seven years, it is important to review your investment strategy to ride the volatile and challenging market environments. It is a good idea to allocate at least 25% to 30% of your retirement assets (401k, IRA-rollovers) to investments which provide guaranteed / protected withdrawal benefit for income for life.  For retirees or near retirement, it is real important to have protection from down side risk and Certainty of income during retirement is very important for the peace of mind.

Let me repeat this again: The word of wisdom of Sir John Templeton:
“Bull markets are born on pessimism,
            grow on skepticism,
                        mature on optimism,
                                    and die on euphoria.”

Comprehensive Financial Plan:

It is important for each of us to plan our financial future by having a comprehensive financial plan. Once we are within ten years of retirement, stop financial planning on the basis of estimates and have a comprehensive financial plan. This is a financial physical very much like medical physical. It is a time consuming, but necessary, process for fiscal health and peace of mind especially planning for and during retirement. If you need more information to create a complete financial physical or comprehensive financial plan, then please let me know.

 Analysis and Recommendations for Investment Portfolio:

I create manage investments, provide a complete, comprehensive, unbiased analysis of the investments portfolios and recommendation to fine-tune or make changes, or to create a well-diversified portfolio to match your risk tolerance and time horizons. I am an independent registered investment advisor, certified financial planner, institutional broker with Charles Schwab, provide comprehensive financial planning services without any conflict of interest
I use 80% core and 20% explore as a strategy to create a diversified and balanced portfolio, utilizing Exchange traded Funds (ETFs) to create investment portfolios because of their low cost, instant diversification, price efficiency, tax efficiency, and relative transparency, they can also help to diversify by sectors and in the international and emerging markets. ETFs are unique, as they are similar to mutual funds, but you can buy and sell these like individual stocks. When you invest in an ETF you buy shares on the open market, at their current price and with the standard brokerage fee — allowing for intra-day trading and flexibility.
As you know, past performance is no guarantee of future results, At any point in time your investments may be worth more or even less than your original investments due to the market fluctuation.

Long Term Care Insurance:These are the few questions, one need to ask.
1. Do I have plans for my own care, when I cannot take care of myself?
2. Can my children or family members take care of me, if something happens to me?
3. Do I have enough assets to cover part of my long-term care needs?
4. Do I have long term care Insurance?

Long-term care insurance can help to protect the assets and can keep family legacy intact.
Long-term care insurance often eases concerns about future when it is in place.
It is equally important to buy the right LTCI to meet your objectives.
Should you need additional information or have any question, please feel free to contact me.

New Year resolution: Updating your Estate Planning documents in 2009

Here is a New Year’s resolution you should keep:

Your Will: If you do not have one, have a lawyer draft a will for you. Without a will your assets would not pass according to your wishes. If you have a will, examine it. Do you want to make any changes?

Durable power of attorney: This document enables an agent you have named to act on your behalf. “ A durable power remains in effect even if you become incapacitated” This power can provide incapacity protection for people without a revocable trust. Even if you have a trust, you should not hold some assets there, such as IRA account, because it will lose its tax deferral in a revocable trust. Durable power will let your agent take distribution from an IRA held outside a trust.

Life Insurance: Check to see if you have enough coverage to protect your loved ones after your are gone. And also check to see if you have too much insurance. Many people buy insurance to provide estate tax liquidity. The death benefit would be used for estate tax, so that other estate assets could remain intact. Federal estate tax exemption keeps changing, so it is a good idea to have some insurance to provide for estate tax liquidity.

Beneficiaries: Certain assets pass directly to beneficiaries you have named. They include retirement plans, life insurance proceeds, annuities, transfer-on-death accounts and payable-on-death accounts. No matter what you say in a will or in a trust, your designated beneficiaries will inherit those assets. So you should review your selections to make sure they still conform to your current wishes. This is crucial, if you are naming a nonspouse as beneficiary. Beneficiary designations are vital in tax-deferred retirement plans such as IRAs and 401Ks. Generally; beneficiaries can take minimum required distributions (MRDs) over their life expectancy and build substantial wealth.

Asset Titles: Holding assets in your name give you flexibility. You can give them to anyone. Some solely held assets would be subject to the time and cost of probate at your death. It is important to make sure that your assets have titled properly to meet your financial objectives.
Those potential problems can be solved by titling assets as joint tenants with right of survivorship, or JTWROS. Your joint owner can manage them in case of your incapacity. But assets held as JTWROS offer no flexibility. They go to the surviving co-owner, no matter what your will or trust say.
Another way to hold assets is in a revocable trust. You can be the trustee and beneficiary of the trust in order to maintain control and have access to any investment income. If you are incapacitated, a successor trustee you have named can take over management of trust assets, and assets in a revocable trust will pass to heirs you have named without going through probate.

I understand that my clients place much more than their money with me; they trust their financial future to my care. I take my responsibility very seriously, and trust and personal integrity is very important to me. My financial advice will always be in the best interest of my clients without any conflict of interest.

As you know in today’s busy life-style, one should look for ways to simplify life and consolidate all your investments with one advisor. The main advantage of having one advisor is, that he or she will be able to analyze your financial situation and provide much better recommendation and you will have to deal with just one advisor for all your financial information needs. However, it is equally important that you feel comfortable with and trust your advisor.

If you have questions or need additional information, please feel free to call or email me. I am usually at my desk from 8:30 PM to 10:30 PM doing the paperwork. This is the best time catch me. During the day you can always get hold of me at my cell phone: 610-613-1924.

With regards,

The highest compliment we can receive from a client is the referral of a friend or a relative.