Last month we asked for your feedback to help us better understand how we can continue to deliver an outstanding client experience. Thank you to those who participated in our recent survey. We were able to gain greater insight into our relationship with you and the services we provide. As a result of your feedback we learned that, for the most part, clients are weary of the pandemic and long for face-to-face interaction.
Our commitment to you is that we are available to meet with you in the way that is most comfortable for you – in person, on ZOOM or by phone - now and once we return to regular, full-time office hours. Just let us know what works best for you. In the meantime, we will continue to closely monitor the economy and the markets and keep you posted on anything relevant to your situation.
The feedback we received was overwhelmingly positive, so if there is anything else you would like to share, please do not hesitate to reach out. And as always, thank you for being a valued client – we wouldn’t be here without you!
Year-end planning tip: converting retirement accounts to Roth IRAs. The primary benefits of a Roth IRA are tax-free growth, potentially tax-free withdrawals (if holding period and age requirements are met), no annual required minimum distribution, and the elimination of tax liability for beneficiaries (depending on the timing). The rub: income taxes are due for the year in which the conversion takes place. Individuals who itemize deductions and have tax-deferred retirement accounts, such as traditional IRAs, can use charitable deductions to help offset the tax liability on the amount converted to a Roth IRA. And, it’s not an all-or-nothing proposition. You can always do a partial conversion this year, see how it goes, and maybe do another one next year. Be sure to talk with your Advisor before deciding to do a Roth IRA conversion.
Medicare Part D Open Enrollment Period: Part D is an optional addition to Original Medicare to cover prescriptions. There are many Part D plans from which to choose, with the key being optimizing the cost versus the expected need for prescription medications. Because participants have the option each year to switch to a different prescription plan, it makes sense to pick the plan that meets the need for current medications rather than paying more for insurance that is not currently needed. Coverage and premiums change from year-to-year, so the best plan for you last year may not be best for you next year. From October 15 – December 7 each year, you can join, switch, or drop a plan. (This is referred to as the Open Enrollment Period). Your coverage will begin on January 1, 2022 (as long as the plan gets your request by December 7).
Old Dominion Capital Management feels that your health insurance coverage is a critical component of your financial future. While we do not offer or sell supplemental coverage, we would like to offer you our assistance. If you currently have Medicare Part D and would like to find out more about the different options available to you, please let your Advisor know.
The stock market finally took a breather in September, declining by 4.6% as measured by the S&P 500. The pullback came after seven straight monthly advances and represented the biggest drop in prices since the market recovery started in the spring of 2020. Growing concerns over political gridlock and its potential impact on debt markets, Federal Reserve talk of slowing its bond purchases and possibly raising interest rates sooner than expected due to inflationary pressures, and increasing risks in China’s real estate market were among a laundry list of issues contributing to recent investor caution. And yet, the market remains resilient with the decline relatively mild by historical standards and prices rebounding fairly quickly to near record levels. Looking forward, we expect economic growth will moderate in the coming quarters and interest rates will inch ahead as recent price increases prove more stubborn than expected. Heightened volatility will likely be with us a while and a more serious correction remains a possibility. We believe it will be important to stay diversified and be flexible during this period, two important pillars of our planning oriented approach.