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.

S&P 500 Index has recovered half of its recent 57% bear market plunge. By the end of 2009, S&P 500 has gone up from March 2009 of 670 to its current level of 1115 roughly in a straight-line. But from the peak of October 2007, S&P 500 is still down about 28% (from 1565 to 1115).

Much has been said of the fact that this past decade has been the worst performing in at least a century of stock market history. That is true, but it is also true because the decade of the 1990s ended in the biggest stock market bubble in the history. Furthermore, not only were the 1990s extraordinary, the 1980s also offered investors near record high returns. Never before had investors experienced two back-to-back extraordinary decades. This created and illusion for many who foresaw 15% annual returns forever. The last ten years brought us back to earth and have cancelled the excess returns of the 1990s.

Economists and analysts are looking for economic expansion in United States and around the world this year. Most of the stock market returns following a bear market happen in the first six to nine month. That is the reason it is so important to stay invested in the market.

This recession’s inflection point occurred in March 2009 and since then S&P 500 gone up by 65%. After such a significant rise in a short period, some form of pullback can happen, but current sustained increase in economic activity points to still higher equity prices.

The markets have responded to signs of economic recovery. I expect the recovery to begin modestly because significant risks and challenges still persist. Continued uncertainly means that there is still great opportunity for investors who are willing to take risk and invest in markets.

During the uncertain times, systematic investing is best and a time tested approach to build wealth. This helps to take advantage of dollar cost averaging. Wealth Strategies such as Wealth Appreciation, Balanced or Conservative strategy based on your risk tolerance and time horizon is very appropriate.  One can open the account with $5000.00 and then add every month $1000 or any amount you can easily spare. This amount should be directly transferred from you account for investing in the Wealth Appreciation Strategy.

Wealth Appreciation Strategy is one of the options, where each dollar is invested in a following fixed portfolio, which is periodically rebalanced.

US Large Cap Value                  24%
US Large Cap Growth               24%
International Growth                  13.5%
International Value                     13.5%
Small/Mid Cap Value                   7.5%
Small/Mid Cap Growth                7.5%
Global Real Estate Investment    10%

Should you need more information or have any question, please let me know.

For most investors, Exchange Traded Funds are an intriguing alternative to garden-variety mutual funds.  ETFs offer comparably lower costs, higher tax efficiency, better transparency and intra-day liquidity, instant diversification, trading flexibility, access to hard-to-reach markets, and administrative ease to name a few advantages.

For most investors, Exchange Traded Funds are an intriguing alternative to garden-variety mutual funds.  ETFs offer comparably lower costs, higher tax efficiency, better transparency and intra-day liquidity, instant diversification, trading flexibility, access to hard-to-reach markets, and administrative ease to name a few advantages.

Traditional IRA to Roth IRA Conversion:

Beginning in 2010, all investors will be able to convert their traditional retirement accounts to Roth IRAs.
This offers two unprecedented opportunities:

Tax planning opportunity for future tax environment

Wealth transfers opportunity to next generation.

 By making this conversion and holding assets in the Roth account for a prescribed period, investors can withdraw their retirement funds entirely tax-free.

Important Features of Traditional and Roth IRA:
Traditional IRA distribution taxed as ordinary Income.
Traditional IRA Mandatory withdrawal at age 70.5
Roth IRA Conversion taxed as ordinary income and taxes can be paid from outside the IRA.
Roth IRA distribution are not taxed (with some exceptions)
Roth IRA No-Mandatory withdrawals at age 70.5
Roth IRA conversion really becomes beneficial to pass these retirement assets to next generation and take advantage of Stretching.

There is much more to this, and if you want to know that does it make sense for you to do this conversion, please feel free to call or email me.

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 only one advisor is that he or she will be able to analyze your financial situation and provide customized 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.

Should you need additional information or have questions, 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. You can call me at this time as well.  During the day you can always get hold of me at my cell phone: 610-613-1924.

Hans R. Sharma, MBA, CFP
Specialize in Retirement Income Planning,
Provide Comprehensive Financial Planning
Services without any conflict of interest
Website: www.sharmah.com email: HansSharmaCFP@gmail.com
Phone & Fax: 610-828-8253, Mobile: 610-613-1924