March 2014 - NorthStar Capital Advisors

When promised quick profits, respond with a quick “no”

Warren Buffett is one of the most successful and sage investors alive today. Students of investing anxiously await his annual letter to shareholders to glean pearls of the wisdom from this master.

Here’s one of our favorite Warren Buffett quotes from the 2014 letter:

“You don’t need to be an expert in order to achieve satisfactory investment returns. But if you aren’t, you must recognize your limitations and follow a course certain to work reasonably well. Keep things simple and don’t swing for the fences. When promised quick profits, respond with a quick ‘no.’”

Unfortunately there are many people that are victimized by financial fraudsters. Just this week a Charlotte, NC man, Mitchell Brian Huffman, was ordered to a pay $2.1 million civil penalty for operating a Ponzi scheme that bilked clients out of about $3.2 million.

Huffman told his 30 victims that he was generating outrageously high annual rates of return of 100% to 150% using a proprietary trading program. Huffman used their money to fund a lavish lifestyle including classic cars and luxury vacations.

3 1/2 Weeks Until an Important Deadline

Here’s an important reminder if you have an individual retirement account (IRA) or are considering opening an IRA. 2013 contributions to IRAs can still be made up through April 15, 2014.

Make it a double? If you really want to make the most of the growth potential that retirement accounts offer, you should consider making a double contribution this year: a last-minute one for the 2013 tax year and an additional one for 2014, which you’ll claim on the tax return you file next year. That strategy can add much more to your retirement nest egg than you’d think.

2013/2014 Annual IRA Contribution Limits*

Traditional/IRA Rollover: $5,500 ($6,500 if you are 50 years old or older)
Roth IRA: $5,500 ($6,500 if you are 50 years old or older)
SIMPLE IRA: $12,000 ($14,500 if you are 50 years old or older)
SEP IRA: $51,000 (2013), $52,000 (2014)

*Note: The maximum contribution limit is affected by your taxable compensation for the year. Refer to IRS Publication 590 for full details.

The savings, tax deferral, and earnings opportunities of an IRA make good financial sense. The sooner you make your contributions, the more your money can grow.

If you have any questions or would like to make an IRA contribution give us a call at (704) 350-5028 or email info@nstarcaptical.com.

Sorry Banks, Millennials Hate You

A three-year study involving 10,000 millennials (born 1981-2000) reveals an overwhelmingly negative sentiment toward banks:

Banking is the most prime industry for disruption in millennials’ opinion
Banks make up four of the top 10 most hated brands for millennials
Millennials increasingly view banking institutions as irrelevant

Source: FastCo

American’s Wealth at Fresh High

Americans’ wealth hit the highest level ever last year reflecting a surge in the value of stocks and homes. A record-setting rally of +30% in the U.S. stock market drove most of the past year’s gains.

According to a Federal Reserve report released today, the net worth of U.S. households and nonprofit organizations rose 14% last year.

The Fed’s report shows that Americans have made good progress on repairing the damage caused by the housing crash and the recession (Dec 2007 – Jun 2009). Americans have been reducing their debt loads and regaining equity in their homes.

Source: Wall Street Journal

When promised quick profits, respond with a quick “no”

3 1/2 Weeks Until an Important Deadline

Sorry Banks, Millennials Hate You

American’s Wealth at Fresh High

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