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June Client Bulletin

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Ever wonder what the third best investment you can make it? It is not paying down high-interest debt or making sure you are investing in your 401K so that you get your employer match but it is just as important. Get the answer in our June Investment newsletter!

Due to increased client interest in financial planning, I continue to provide quarterly updates on the investments I recommend.

View the complete report here

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New Office in Downtown Seneca Falls

Peters & Associates, CPAs, P.C. announces the opening of a new office in downtown Seneca Falls. Peters & Associates, CPAs, P.C., established in 1985, specializes in a wide range of financial services for businesses and individuals, including tax planning and preparation, small business accounting and consulting services, estate planning and investment advice. Peters & Associates is a regional firm with offices in five locations.

The opening of the Seneca Falls office will allow Peters & Associates, CPAs, P.C. to offer specialized professional services for Finger Lakes area farms, wineries, breweries and other local businesses as well as individual tax services. Rhonda Hutchinson, CPA has rejoined Peters & Associates to head our Seneca Falls office. Rhonda brings over twelve years of experience in public accounting. She specializes in small businesses, agricultural and personal tax preparation as well as tax planning, management consulting, estate planning, business transfers and succession planning. She also offers training and support for clients using QuickBooks accounting software. “By combining with our larger presence in Central New York, the Seneca Falls accounting practice will benefit from the broader resources of a much larger firm,” says Mark Peters, Peters & Associates’ President.

Peters is excited about the growth potential in the Finger Lakes market, a region characterized by a rich agricultural tradition, beautiful wineries and breweries, robust small businesses and a booming tourism market. “This is a great expansion for us,” said Peters. “We specialize in local businesses that want hands-on service from a firm that concentrates on them. Clients want the same individual handling their accounting and taxes each year. However, since we employ 24 people, we also have the expertise to handle any complex issues that may arise.” Peters opened a New York City office in 2010, acquired the practice of Robert Smoral, CPA in Camillus in 2012, and completed a merger with the Moore & Hart firm of Utica in 2014. The opening of the Seneca Falls office is the next step towards advancing the firm’s position as a major regional practice.

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July Client Bulletin 2015

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The July Client Bulletin discusses “The Math of Buy and Hold.”  I began my firm September 1, 1985,  and by 1992, clients began to ask for my advice on financial planning and what investments I owned.  They would tell me that they were uncomfortable with their financial advisors.

It seemed like they paid a lot in fees, had a poor return, and their financial advisors bought and sold their stocks too often.

I always advise my clients that if they are paying for advice, they should realize a superior return in exchange.  My long time clients have received my quarterly Financial Planning Services newsletter for years.  It states that “I am not a market timer.  The strategy followed is buy and hold.  This strategy reduces trading costs, taxes, and planner fees. ” Many financial advisors try to time the market.  They say that their research lets them know when to buy or sell a stock or a fund.  The problem with this strategy is three fold: 1) If you make a decision to sell, the market/stock could go up in value and you lose out; 2) When to buy?  Many brokers buy/sell the same stock.  I always say it is easy to sell and lock in your profit.  It is more difficult to pick the right time to re-buy or re-enter the market; 3) Every time you buy/sell a stock/fund, you pay a commission.  You lose money both from converting cash to investment and vice versa.  The investment must go up in value to overcome this cost.  In addition, every time you sell and make money, you have additional taxable income and must pay more taxes.  Therefore, you have less money to reinvest with.  Again, you must have a substantially better return on the new vs the old stock/fund for the buy/sell strategy to work.

Clients who follow my investment advice have index funds, large cap funds, or a diversified portfolio of individuals stocks.  A portfolio of individual stocks works best in a taxable account.  For tax purposes, clients will only pick up dividend income and the occasional gain from the takeover of a stock.  In addition, I usually sell one losing stock per year to take advantage of the $3,000 annual loss rule for taxes.

Finally, I always advise clients that they should only be in the stock market if they believe it will go up over time.  If clients believe, as I do, that the market will be higher in ten years than today, it is hard to justify frequent selling and buying.  This only makes sense if one can outsmart the market.  I buy market leaders in various industries and hold on to them.  Because of that hold policy, I have stocks I bought for $5,000 that are currently worth more than $50,000.  Clients that pay for my financial planning service are able to see the return on every investment that they own on a spreadsheet that is updated quarterly.

My client bulletin discusses “The Math of Buy and Hold” in more detail plus information on passive losses and succession planning.  Please contact me if you need more information.

 

Read the complete newsletter here

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