Hi Everyone,

Sophia and I spent the weekend decorating our home for the holidays. Just when I said I was going to skip the tree . . . we ended up putting two of them up. I’ve got more holiday spirit than I’ve had in a long time. Is the magic in the numbers?


Magical Numbers

I’ve been more optimistic than most about the future of the U.S. equity markets over the next few years. There really is something magical about those days we close over 12,000 on the DJIA. It brings relative calm.

The holiday season brings a new kind of energy charged with hopes, plans and goals for the future. Investors need to be forward thinking and they often find the energy to do it this time of year. There is magic in the 12th month.

Investing should be driven by the numbers. Here are things to keep in mind as we move through the season:

Income investors need to compare their monthly income draws to current fixed income yields and realize that some exposure to equity markets is likely needed.

Mortgage holders need to review interest being paid and compare it to interest being earned on investments and, although both may be low at this time, make sure your current situation is logical.

Life insurance is one of the few things that has, in most cases, gotten cheaper in the past decade. Use the holiday season to have someone like me check and see how your premiums compare. I might be able to work some “magic” and save you some money.

Make sure you have taken your Required Minimum Distributions from your IRA if you are over 70 1/2. There is nothing magical about what the IRS does if you don’t.

Until next week,

Susan R. Linkous

Investing involves risk including loss of principal.

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