Kevin was a delegate at the Registered Investment Advisor Summit that took place in Texas. The RIA Summit unites an exclusive group of Registered Investment Advisors with top economists, analysts, solution partners, and innovators in the field. The result is an exceptionally efficient, highly collaborative networking and educational environment focused on the topics that matter most to advisors.

BOSC listed as a Delegate at the RIA Summit

Kevin’s Blog for 1/3/2012

The market’s latest supercharged rally has investors thinking it’s because of the fiscal cliff “deal”. However, after looking at worldwide stock markets, we see that the US market is up just as much as these indexes to start the year. As a result, we believe the market’s move higher is a result of new dollars coming into worldwide equities as opposed to applauding the relatively weak deal passed this week by our lawmakers.
Truth be told, the recent tax package Congress passed on New Year’s day will do nothing to prevent a 2% social security payroll tax increase. The Tax Policy Center calculated that 77% of American households will face higher federal taxes in 2013 under the recent agreement. Although high income families will feel the biggest tax increases, many middle and low income families will pay higher taxes as well.
 

High income families will also pay higher taxes as part of Obama’s 2010 health care law. As part of that law, a new 3.8% tax is being imposed on investment income for individuals making $200,000 and couples making $250,000. Together, the newly passed tax package and Obama’s health care law will produce substantial increases for many high income families. For 2013, households making between $500,000 and $1 million will see an average increase of $14,812 while households over $1 million will see an average increase of $170,341.
 However, there will be an increase in taxes for everyone. Below are the average tax increases that each income level will receive:
 $20-30,000 1.2%
$30-40,000 1.3%
$40-50,000 1.3%
$50-75,000 1.3%
$75-100,000 1.4%
$100-200,000 1.2%
$200-500,000 0.8%
$500-$1,000,000 2%
$1,000,000 17% (percentage of tax increase declines as income increases)

The saddest part of the most recently passed package is that there were little to no spending cuts in the bill. That is an American tragedy!

Watch Strategic VS Tactical investing on PBS. See more from Financial Fitness.

Episode Description:
Strategic VS Tactical investing… When it comes to your portfolio, are you a deliberate and calculated investor who spends hours researching every decimal? Or do you take a more unconventional approach to your financial risks? What’s your investment Style and does it really matter?

Major damage done today on the index charts. NASDAQ, DOW, S&P all broker their uptrend lines in addition to giving a chart sell signal. Would not be surprised to see the NYSE Bullish Percent reverse down to join the other major market indicators. Confirming this move is the transport index, which didn’t look too bad before today.

Bond yields moved substantially lower (bond buying took place) as the bond market forecasts a recession/slower growth/lower rates for a longer period of time. 30 year yields declined 10 basis points (4%) to 2.81%, while two and five year yields had the largest move of 13%, down to .26% and .66%………wow, a .66% return for a 5 year treasury!! The ten year yield dropped to 1.62% and may test the 1.3875 area where it bottomed earlier this year (refinance your house if possible). Keep in mind that the bond market is typically correct more times than the equity market—meaning recession.

We have a lot of cash and are very happy that we sold a couple of weeks ago at a higher level.

Kevin VandenBerg hits tee shot at the 17th hole during the final round of the Gerry Ashe Memorial golf tournament at Drumlins Country Club on Sunday June 24, 2012. VandenBerg finished in fourth place with a total score of 219.  Tyler McArdell won the tournament with a three round total of 214. Stephen D. Cannerelli / The Post-Standard

M. Connor Wisniewski (L) gets congratulations from Kevin VandenBerg after chipping in for a birdie at the 17th hole during the final round of the Gerry Ashe Memorial golf tournament at Drumlins Country Club on Sunday June 24, 2012. Wisniewski finished in third place with a total score of 218.  Tyler McArdell won the tournament with a three round total of 214. Stephen D. Cannerelli / The Post-Standard

Kevin Vandenberg (L) congratulates Tyler McArdell at the 18th hole after the final round of the Gerry Ashe Memorial golf tournament at Drumlins Country Club on Sunday June 24, 2012. McArdell won the tournament with a three round total of 214. VandenBerg finished in fourth place with a total score of 219. Stephen D. Cannerelli / The Post-Standard

Friday, June 08, 2012  5:21 PM

Kevin VandenBerg on the 13th green.  Not satisfied with his performance on this hole, VandenBerg sat down on the green for a moment after re-positioning himself to the “Thinker.” Ellen M. Blalock / The Post-Standard

Friday, June 08, 2012  5:20 PM

Kevin discussed:

How to build a portfolio and evaluate the results once that recipe is applied

Watch 5/10/12 on PBS. See more from Financial Fitness.