No. 5 February 2005

In This Issue


Insurance Advice - Without the Sales Pitch

Fidelity has established an Insurance Agency that will provide advice, life insurance and annuities to our clients.

This new offering is available to Grubman Financial's clients through Fidelity Investment Advisor Group.  We have an assigned representative who is available to answer your questions, analyze your existing policies, prepare quotes and provide life insurance and annuities.

For more information contact us or go to

www.FidelityInsuranceAgency/AdvisorClients



Identity Theft - Protect Yourself!


Most of us automatically lock our doors but what do we do to protect our most valuable assets?

Identify theft is increasing exponentially; someone you know is likely to get hurt and the damage may be devastating.

How do you protect yourself?  What can you do if you are victimized? 



Maximize Your 401(k) Match

Question:  Which employer benefit can turn an expected 10% annual return into 12% with without additional risk?

Answer:  An employer's 50% matching contribution. 

Here's how:  Let's assume your employer matches 50% of your contribution.  That is a 50% return on your contribution. 

Even better, that 50% return is RISK-FREE.  Unlike the stock market, where returns are volatile, the 50% match is ALWAYS a 50% return. 

And best of all, the future returns of your 401k will grow from a larger base:  instead of your contribution, investment returns accrue to your contribution PLUS the the employer's match.

Click here for tips on maximizing your employer's matching contribution.



2004 Investment Results

 BENCHMARK RETURNS (%)

 

STOCKS

 

 

US Large

US Small

Foreign

Bonds

2004

  10.9

  17.0

  18.3

  4.3

2003

  28.7

  45.4

  35.5

  4.1

2002

- 22.1

- 21.6

- 17.7

10.3

2001

- 11.9

   1.0

- 22.3

  8.4

TOTAL

-  2.1

  34.8

   2.5

29.9

Annualized

-  0.5

    7.8

   0.6

  6.8

 

 

 

 

 

 

ASSET ALLOCATION RETURNS

 

           ( STOCK % / BOND %)

 

2004

  14.0

  12.4

   9.7

  4.3

2003

  31.7

  27.1

 19.4

  4.1

2002

- 17.2

- 12.6

- 5.0

10.3

2001

- 11.3

-  8.0

- 2.5

  8.4

TOTAL

   9.4

  12.8

18.5

29.9

Annualized

   2.1

    2.9

 4.2

  6.8

 



Time for 2004 Tax Return preparation

Tax packages were mailed to our Investment Management clients on January 6, 2005.  If we are preparing your tax return and you did NOT receive a package, please contact Jill@grubmanfinancial.com.

Who’s who at
Grubman Financial?

Audrey Grubman, CFP
Patrick McDermott, CPA
Halle Brown,

Office Manager
Jill Martin,
Administrative Assistant




401k limits increased
$14,000 plus $4,000 for folks older than 49  




Tax Prep for Management clients only
We provide tax services only for investment management clients.

Upon request we will refer you to an independent tax preparer.




In the next newsletter…
Proposed changes to

Social Security




 

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