Investment Planning

Latest Winter 2018 Quarterly Newsletter This issues includes reflections from Brian Jones, CFP, on recent market volatility as he draws parallels to the most recent Super Bowl. Kevin Donovan, CFA, discusses how market losses can be tough but in general the market produces positive returns. Mark your calendars for our annual Shredding Event on May 18th and read about which documents to keep versus shred. Lastly, we share the recent Washingtonian Magazine article that quoted Jessica Ness, CFP, and her advice for handling children's allowance. January 2018 Audio Update In our first podcast of 2018, join us as David Greene, Kevin Donovan, Jessica Ness and Brian Jones share their thoughts on what worked in 2017, what to expect in the markets in 2018 as well as an update on the new tax bill just passed by Congress. Newsletter & Podcast Archive

The Situation

Rick and Sheila were working with another advisor but wanted CJM to review their investment portfolio and provide a second opinion. Rick and Sheila had worked with their current advisor for a few years and added funds to their account, but were unsure as to how their portfolio had performed and how much they were paying in annual fees and expenses. After reviewing Rick and Sheila’s portfolios, CJM’s team of advisors discovered that the portfolio was largely invested in high-fee proprietary mutual funds sold by their current investment manager. Their portfolio, which did not appear to be managed with regards to the clients’ income tax situation, contained municipal bonds, some of which were held in their IRAs. In addition, they were not receiving regular performance reports on their investments.

The Solution

CJM provided Rick and Sheila with much needed third party due diligence on their investment portfolio and asset allocation. CJM’s Portfolio Research Director, a Chartered Financial Analyst (CFA), helped Rick and Sheila reallocate their accounts to include low-cost, no-load mutual funds and exchange-traded funds. Municipal bonds were removed from the IRAs, as the tax-free nature of their income would be better placed in their taxable accounts.

By holding a greater amount of bonds in their IRAs, taxable income generated from those fixed income holdings would be received by the IRA on a tax-deferred basis. An overweighting of equities was established in the taxable account, which is subject to the more favorable dividends and capital gains tax rates.

Furthermore, Rick and Sheila now receive quarterly reports clearly outlining the management expenses as well as their accounts’ performance relative to various stock and bond indices.

Value To The Client

CJM worked with Rick and Sheila to create a detailed investment analysis and proposed changes to their account that would reduce fees and more effectively manage taxable income generated from their portfolio. Working closely with CJM, Rick and Sheila were able to leverage CJM’s decades of expertise to reduce their income tax burden without reducing the income generated by their portfolio. The quarterly statements provide Rick and Sheila the ability to track the growth of their investments and fees paid over time.

More Solutions

At CJM we understand that no two clients are alike and real world problems require practical and timely solutions. The CJM team brings together the best and the brightest in the areas of investment, tax, insurance, financial planning & wealth management to resolve each client’s particular issue(s).