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AHC Advisors – Stock Market Volatility

Stock Market Volatility

 

AHC Advisors Awards Ownership Interest to Jorie Pitt

February 7, 2018

AHC Advisors, Inc., a fee-only financial planning and investment advisory firm, today announced that Jorie Pitt, CFP®, has been named principal and shareholder.

Pitt has been with AHC Advisors since 2011, and currently holds the position of Lead Financial Planner. In announcing her new ownership interest, AHC Advisors founder Craig Larsen, CFP®, cited her demonstrated excellence as a financial planner, and her commitment to continually enhancing the service that AHC delivers to its clients.

“I was thrilled to offer this ownership opportunity to a well-deserving employee who has excelled as a financial planner,” Larsen said. “Since day one, Jorie has exhibited a commitment to delivering superior service to our clients, especially those going through a time of transition.”

Larsen, who will continue to lead AHC Advisors as its President, said Pitt’s commitment to clients’ financial well-being, as well as her efforts to continually enhance the service that AHC delivers to its clients, played a key role in his decision to offer her ownership in the firm.

“I am very proud that she has grown into a leader both in the company and in the financial planning industry,” he said. “She is dedicated to helping families and individuals make sound financial decisions, and is expert in helping our clients through times of transition.”

In addition to her role as Lead Financial Planner, Pitt has also held the post of President of the Financial Planning Association of Illinois. She is invited regularly by community organizations and employee groups to share her expertise on a variety of topics.

Pitt is a graduate of the University of Illinois, Champaign, which she attended as a Chick Evans scholarship recipient, and has attained the CERTIFIED FINANCIAL PLANNER™ designation and Series 65 securities license. She is enrolled in training to obtain the Certified Financial Transitionist® (CeFT®) designation.

Pitt said she felt humbled to be awarded an ownership interest.

“I’m fortunate to be a part of a firm that places clients’ goals at the forefront of all the work that we do,” she said. “At AHC, I strive to help people feel good about their money decisions, which in turn directly impacts their ability to live a fulfilling and enjoyable lifestyle. I particularly enjoy working with individuals and couples who are going through a time of transition. I get a lot of satisfaction from helping a client emerge on the other side of their transition with confidence and a fulfilling path forward.”

In addition to holding the post of President of the Financial Planning Association (FPA) of Illinois, Jorie served as director of public awareness and director of finance for the organization. Pitt is also a member of the National Association of Personal Financial Advisors (NAPFA). She is among the CFP® and FPA professionals who offer pro bono advice to Chicagoland residents through activities such as Financial Planning Day, Age Well DuPage, and MoneySmart Week.

About AHC Advisors, Inc.

AHC Advisors, Inc., serves as a partner in clients’ financial freedom through comprehensive wealth management services, and offers expertise in helping its clients through times of transition. As a fiduciary investment advisor registered with the Securities and Exchange Commission, AHC Advisors offers fee-only financial planning and investment advice through its offices in St. Charles, Illinois, and Des Moines, Iowa. For more information, visit the firm’s website at www.ahcadvisors.com.

Contact Information

Jorie Pitt, CFP®

380 S. 1st St.
St. Charles, IL 60174
(630) 762-8185

joriepitt@ahcadvisors.com

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.
This material is intended for informational purposes only. It is not intended to provide specific advice or recommendations for any individual.  The views expressed in the material are that of the author and do not necessarily reflect those of any market, regulatory body, State or Federal Agency, or Association. All efforts have been made to report true and accurate information.  The information being delivered today is subject to change without notice. For additional information about AHC Advisors please visit the SEC Website at www.adviserinfo.sec.gov.  For a copy of the firms ADV Part 2 Brochure, please contact us at 630-762-8185 or e-mail at info@ahcadvisors.com.

AHC Advisors – Fee Only & Fiduciary For You

At AHC we are a fee-only firm, and our only compensation comes from you. Period. We work solely for you, and you know at all times what you are paying. You also know that the advice you get from AHC will not be tainted by the desire to sell investment products that would compensate us handsomely. In fact, we don’t sell investments at all.

We also act as a fiduciary and put your interests above all others, including our own.

Take a look at this video to see the benefits of working with AHC.

 

 

Craig Larsen quoted by CNBC about safe withdrawal rates in retirement

AHC Advisors CEO Craig Larsen was quoted recently by CNBC regarding safe withdrawal rates in retirement.  AHC’s opinion is that limiting spending to a fixed percentage in you retirement can unnecessarily deprive you of important life experiences, and you only get one pass through these early retirement years.  Instead we offer our clients the opportunity to layout their goals as part of a detailed financial plan, and then update the plan each year to make sure they are on track to live an enjoyable, rewarding retirement lifestyle.

Ditch the 4 percent rule. Here’s how to handle your retirement withdrawals.

More Support for Why We Use DFA Funds

Recently Dimensional Fund Advisors (DFA), was profiled in an article by the Wall Street Journal. The article discussed their unique investment philosophy which has helped make DFA the fastest-growing major mutual fund company in the U.S. In fact, over the last year only DFA and Vanguard have net positive inflows.

The article gives a deeper insight into DFA’s approach which is to offer low-cost, broadly diversified mutual funds that are designed to take advantage of risk premiums in the market. DFA funds are an important part or our portfolios and you can click here to view a reprint of the article.

More Research Supports AHC Investment Philosophy

Research by Dimensional Fund Advisors on mutual fund performance supports our investment philosophy – that most active managers cannot beat the market consistently. Individual investors are much better off in funds that build portfolios based upon the science of the market that are broadly diversified, don’t try to predict where the market is headed and have lower fees.
 

Index Reconstitution: The Price of Tracking

In this article, read how index funds can rack up higher trading costs in their pursuit of tracking an index. If you are currently invested in index funds, these higher trading costs may be taking a bite out of your investment returns. The approach we apply helps shield investors from the cost of tracking benchmark indices.

Index Reconstitution: The Price of Tracking

Nobel Prize winner Eugene Fama on market volatility

In this video Professor Eugene Fama and David Booth discuss the performance of the value premium and the Federal Reserve’s perceived impact on interest rates.

 

Craig Larsen quoted in a Bloomberg story about financial planning ideas for recent college grads

 

Earlier this week, Craig was quoted in a Bloomberg article advising parents of recent college graduates to give their children the gift of building a financial plan with a professional. Doing this, Craig says, can help recent grads “avoid falling into some traps that can lead to bad habits, like overspending and running up credit-card debt”. You can read Craig’s additional advice and the rest of the story here.

Year End Tax Strategies

Strategy #1 – Donate shares of highly appreciated securities instead of cash

 

If you are considering making a year-end gift to a charity you have the opportunity to use the tax code to your advantage. This is an effective way to both help your favorite charities and reduce the tax bite that you will feel when you file your tax return next year. The mechanics of this tax planning strategy are fairly simple.

First a bit of background. When you donate cash to a qualified charity you get to deduct the gift on your tax return. For example, if you give $5,000 and you are in the 33% tax bracket your federal income tax that you pay will be reduced by $1,650 ($5000 x 33%). So, in effect your $5,000 gift will only cost a net $3,350. If you live in a state with an income tax you would save even more on your taxes.

Now let’s assume that instead of gifting cash you instead gift an investment security that also has a value of $5,000. But let’s further assume that you paid $2,000 for the security. This means that you currently have a $3,000 capital gain since you purchased it.

If you give the security this security that is worth $5,000 you will get a charitable deduction of the $5,000, just as you would if you gifted cash. However, you will also avoid paying the capital gains tax, and this will save you additional money. The math on this is fairly simple and is as follows:

If you were to donate the $5,000 security you would avoid paying $450 in federal capital gains taxes (gain of $3000 x 15% capital gains tax). This means that your charitable gift will cost you only $2,900 (after tax cost of a gift of $3,350 reduced by the capital gains tax savings of $450). By avoiding the capital gains tax, you are keeping an additional $450 in your pocket.

Importantly, this strategy may not be applicable if you are in one of the two lowest tax brackets. This is because in these tax brackets the federal capital gains tax is 0%. However it still may be beneficial if you live in a state with an income tax.

Conversely, this strategy will be even more effective if you are in a high income tax bracket, where you may pay an additional 3.8% tax on net investment income, and, if you are in the very highest tax bracket, a capital gains tax of 20%.

The tax code is complex, and seems to take an ever increasing bite out of our incomes. However, with knowledge of the tax code you can reduce the amount of tax that you pay. We work closely with our customers on tax planning strategies. If you would like to talk to us about tax planning opportunities please give us a call.