ODCM Fall Newsletter

Old Dominion Capital Management |

Our Clients

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!

Financial Planning

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.

Investments

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.

ODCM Team

RISKS AND OTHER IMPORTANT CONSIDERATIONS

Old Dominion Capital Management (ODCM) is a division of Dixon, Hubard, Feinour & Brown, Inc. (DHFB), a Registered Investment Advisor with the Securities and Exchange Commission pursuant to the Investment Advisors Act of 1940. This document does not constitute an offer to sell or the solicitation of an offer to purchase any security or investment product or service nor shall it be construed or relied upon as providing any type of investment, legal, tax or other advice. Past performance is no guarantee of future results.

The views and opinions expressed here are for informational and educational purposes only as of the date of writing and may change at any time based on market or other conditions and may not come to pass. This material is not intended to be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be considered specific legal, investment or tax advice. The information provided does not consider the specific objectives, financial situation, or needs of any specific person. All investments carry a certain degree of risk and there is no assurance that an investment will provide positive performance over any period. Equity investments are subject to market risk or the risk that stocks will decline in response to such factors as adverse company news or industry developments or a general economic decline. Debt or fixed income securities are subject to market risk, credit risk, interest rate risk, call risk, tax risk, political and economic risk, and income risk. As interest rates rise, bond prices fall. Noninvestment-grade bonds involve heightened credit risk, liquidity risk, and potential for default. Foreign investing involves additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. These risks are magnified in emerging markets.

INDEX PERFORMANCE DISCLOSURES

No investor can invest directly into a passive index. Investors should be aware that you cannot achieve the returns shown because an actual account will incur operating and management expenses from its investment and possibly advisory, custodial and/or recordkeeping expenses. The performance returns sampled here do not represent the impact that material economic and market factors might have on an investor’s decision making process if the investor were invested in the market. The calculation of performance differs from actual account performance because the investment strategy may be adjusted by a client at any time for any reasons. The performance returns sampled here reflect the reinvestment of dividends and other distributions. Third party sources collect the data from financial institutions and related types of entities that created the indices and publish the indices values periodically. The third-party sources then calculate performance used in this document. All data is believed to be reliable but is not independently verified by ODCM.