WWC DECEMBER UPDATE 2015

‘TIS THE SEASON!

Can you believe it’s December already?! We pray that you have a great time with family and friends this Christmas! Sending love and hugs to you all. We wish you a Merry Christmas and a Happy New Year!

2015 RMD

If you or your spouse is 70 or older and have an IRA, make sure your 2015 Required Minimum Distribution has come out before 12/31, or you could have a 50% IRS penalty. Call Deb if not sure.

CHRISTMAS FUN, NOT STRESS

Here’s an easy Christmas budget idea. One of the things we do is to give our minor aged grandchildren a gift of cash, to help them learn what money can and cannot do. It is a great experience for the children to decide whether to save the money for a larger item or to spend it.

One of our grandchildren saved his money for a couple years and purchased a computer and another saved and purchased an IPod. Some of the younger children split their money between toys now, donated some, and saved some for a later purchase. And of course the youngest typically immediately spends it all!  

Are you giving your heirs the opportunity to learn how money works and how with discipline, it can help achieve some of their goals?

WWC CLIENT APPRECIATION PARTY

Mark your calendar for Saturday July 9, 2016 for our WWC Appreciation Party, at the Henry Ford, Greenfield Village, in Dearborn, MI. Invite your loved ones and friends whom you have told about the Free Markets, so they can meet us! All clients are encourage to attend. Those of you who live in the 18 other states where we have clients, feel free to plan your trip to Michigan around this weekend!

WWC AT WEST MI WOMEN’S EXPO

Ladies, come and visit us at the 2016 West Michigan Expo at the DeVos Place, 303 Monroe, Grand Rapids on March 11-13, 2016. Please mark it on your calendar. Your men friends are welcome to attend also!

CHRISTMAS AND NEW YEAR SCHEDULE

Wordhouse Wealth Coaching will be closed Dec. 24-27, and Dec. 31-Janury 3.

FREE MARKET ANNUAL REPORT SUMMARY

Clients received the Matson Money 3 Free Market Funds (August to August) Annual Report last month. The Annual Report gives current investors important information on the Free Market US Equity Fund, the Free Market International Equity Fund, and the Free Market Fixed Income Fund. Here is a quick look at some of the numbers and information, using the US Equity page as a guide. Annual Report

Page 18: Free Market US Equity Fund Highlights:

1.      Notice the Net asset value, beginning of year: the share price for this Fund has increased each year, from $8.65 to currently $17.37.

2.      Now look down the left column to the Net asset value, end of year: which demonstrates that the share price continually fluctuates with the market from the beginning of the year.

3.      Move down one more line to the Total investment return, which shows a (3.55%) loss as of August 31, 2015, and a gain for the four previous years of 22.49%, 27.61%, 14.77%, and 20.11%.  Seasoned investors have learned to stay disciplined during the tough years and to rejoice for the up years!

4.      Move further down to Net assets, end of year (000’s omitted): the FM US Equity fund has tripled in size since 2011, going from $679,147,000 to $1,971,430,000!

5.      Ratio of expenses to average net assets: Notice that the expenses are now .60% but before they were as high as .64%? As the fund grows larger, the expenses decrease!   Invite all your friends to invest, so our expenses can go down further!

6.      Drop down to the very bottom, Portfolio turnover rate (frequency of buy and sell activity): it is well below Matson Money’s goal of 20% maximum turnover per year, at 6%, 3%, 6%, 4%, 9% for the last 5 years.

Now go to Page 19 & 20 and look at the same 6 Highlights for the Free Market International Equity Fund, and The Free Market Fixed Income Fund.

Finish up by adding up the 8/31/2015 Net assets for all three funds: $1,971,430,000 + $1,443,094,000 + $2,064,504,000 = $5,479,028,000. In 2011 there was only $1,956,903,000 invested in the 3 Free Market Funds, so you can see the funds have approximately tripled in size, mostly due to new investors moving away from active money management!.

Now read Mark Matson’s Page 1 Annual Investment Adviser’s Report, which says: “When an investor can keep focused on the long term, and adheres to a prudent investment philosophy, the day-to-day ups and downs do not seem as threatening.”   Please read the following paragraph also. It’s an excellent overview of the Free Market strategy.

Once you understand what an excellent job Money Manager Matson Money does for Free Market investors, and how more and more of the investing community is turning to the Nobel Prize winning strategies, you too will want to tell everyone!

SHOULD YOU SPEND OR SAVE?

Use this simple calculator to illustrate what the impact of spending vs investing your savings for retirement. https://www.dinkytown.net/java/RolloverIRA.html

Typically you need to save 15-20% of your income for your retirement. It’s not too late to immediately get to work and make a change if you have fallen short of your savings goal. Let us know if you need help starting up or changing your systematic contributions into your accounts.

2015 IRA/ROTH CONTRIBUTION LIMITS

You can contribute up to April 15th into your non work IRA or Roth IRA. Make the check out to the custodian (Schwab or TCA) FBO name on the account. In the memo line put the account number with the year the contribution is to be applied.   Mail the check to Matson Money 5955 Deerfield Blvd. Mason, OH 45040.

  2016 2015
IRA & Roth IRA
IRA Contribution Limit $5,500 $5,500
IRA Catch-Up Contributions – Over 50 years old +$1,000 +$1,000
IRA AGI Deduction Phase-out Starting at
Joint Return <$184,000 <$184,000
Single or Head of Household < $117,000 < $117,000
SEP
SEP Minimum Compensation $600 $600
SEP Maximum Contribution $53,000 $53,000
SEP Maximum Compensation $265,000 $265,000
SIMPLE Plans
SIMPLE Maximum Contributions $12,500 $12,500
Catch-up Contributions – Over 50 years old $3,000 $3,000
401(k), 403(b), Profit-Sharing Plans, etc.
Annual Compensation $265,000 $265,000
Elective Deferrals $18,000 $18,000
Catch-up Contributions – Over 50 years old $6,000 $6,000
Defined Contribution Limits $53,000 $53,000

 https://www.irs.gov/uac/Newsroom/IRS-Announces-2016-Pension-Plan-Limitations;-401(k)-Contribution-Limit-Remains-Unchanged-at-$18,000-for-2016

CONTACT US ANYTIME

Your referrals and repeat business pay us the ultimate compliment, thank you so much. Please feel free to forward our monthly UPDATE newsletter to your family and friends. It does not matter where they live, as long as they have a US address.   We are here to help brainstorm on any financial and/or lifestyle needs.   Do not hesitate to contact us! Think of us as your financial sisters.

About Maria Kuitula