April 25, 2017
Dear Clients & Friends:
Thank you to all of you for being so patient with us as we transitioned to Securities America and prompt with returning any forms we sent you. We are aware there are still a few accounts we are working on moving and we hope to have those wrapped up in the next month.
I hope this letter helps all of you with some frequently asked questions. First Clearing was purchased by Wells Fargo a few years ago. They have started to use the name Wells Fargo Advisors, LLC when calling and on all their forms. For this letter we will refer to First Clearing (FCC) as Wells Fargo Advisors.
“What is happening with the non traded/DPP assets such as REIT’s still held in my FCC/Wells Fargo Advisor IRA account?”We are working with SEI Private Trust to make sure they can custody these assets, complete any reporting correctly and work with the sponsors. Once we get final confirmation we can move these assets forms will be coming to remove First Clearing as Custodian and assign SEI Private Trust. Then you will be able to see these accounts at SEI. If you do not have an SEI IRA we can discuss your options at that time.
“There is a small balance of cash still in my FCC/Wells Fargo Advisor Individual or Joint account?”If you have a small balance still at First Clearing please give my office a call. We can sweep these funds to your new Individual or Joint account and close the FCC account.
“Will you be moving my account at Invesco, Delaware or American Funds or VA’s?”If you have an account and have not received paperwork from us on moving this please give our office a call. With such a large task of moving accounts we may have inadvertently overlooked this.
“Will my Emoney log on continue to work and will my accounts be listed there?”Many of you are utilizing our valuable Emoney program to view your accounts. This connection should be fixed and you should be able to access and view your accounts. If you notice an error or believe something is missing please contact Steven at firstname.lastname@example.org.
“What is the new SEI Wealth platform?”SEI is enhancing their website and systems. The rollout for the new website is May 1, 2017. If you have a log on already you will receive an email with the new link to activate your account and set up a new password. If you have not logged into SEI yet, please wait until after May 1st to set up a log in and profile. The website is very user friendly and easier for all of us to use.
“What is the new SEI Wealth Platform fee schedule?”The new fee structure is only applicable to clients that have non SEI assets. For example, if you have an American Funds or DPP positions in the account you may be charged a small annual fee to hold these positions. If you are not sure if you have any of these please contact our office and we can let you know. If you do you may want to discuss your options on this position.
“How do I open secure or encrypted email?”Securities America requires we use encrypted email on any email with client specific information such as an account number. Any log ins you have for VSR, First Clearing, encryption are no longer active. Encrypted email will now be sent from our Securities America emails. These are email@example.com or firstname.lastname@example.org etc.
And now for the market; the most common question we were asked leading up to the Presidential election was; “What is the market going to do if Trump or Clinton wins?” Most people believed a Trump victory would be very bad for the market where if Clinton wins the market will respond favorably. We now know the answer to the market response. The major US indexes have advanced significantly since the election. The reason often quoted was the possibility of a tax reduction for Corporate and individual taxpayers.
Currently the US markets seem to have hit the pause button after healthcare-reform efforts ran into roadblocks. It would not be unusual for the market to have a pull back after the rally since the election. According to American Funds, since the 1900’s normal market declines of -5% occur 3 times per year and a -10% decline once a year. These are average normal corrections which are to be expected each year. When they start or how long such a decline will last is impossible to accurately predict.
According to First Trust, on an YTD basis world (ex US) and emerging markets have some of the best performance 7.48% and 11.87% respectfully. US large cap growth has also performed well, up 8.36% YTD. Now that we are in earnings season we will how the markets react as corporate profits and earnings are release.
Interest rates have been interesting. The 10 year Treasury peaked in December at 2.60% on the 16th and currently has fallen to 2.23%. In the world of bonds this is a significant drop. On July 16, 2016 the 10 year stood at 1.39%. Rising rates have a negative impact on fixed income allocations and negatively impacted fixed income allocations in client portfolios. I would expect rates to increase over time as the Federal Reserve increases rates.
Thanks for taking the time to read my rambling. If you have any questions please don’t hesitate to call.
G. Pete Fields, CLU, ChFC
Chartered Financial Consultant
The opinions and forecasts expressed are those of the author, and may not actually come to pass. This information is subject to change at any time, based on market and other conditions and should not be construed as a recommendation of any specific security or investment plan. Past performance does not guarantee future results.