Q4news
www.trianglesecurities.com
January 10, 2017
1301
Annapolis Drive • Raleigh, NC 27608 • 919.838.3221 • toll free: 877.678.5901
New Year's Financial Resolutions:
Get Your Finances in Shape for 2017
Index
S&P500
RussellMidcap
Russell2000
MSCIEAFE
BarclaysAggregateBond
BarclaysMuniBondIndex
DowJonesIndustrialAverage
*IndexreturndataisprovidedbyMorningstarDirectSM
Resolution 1: Create a budget for life
Creating a budget is important both for those
who are working and for those who are retired. It
is important to know where your money is going.
Track your spending to determine your fixed
monthly expenses, basic living expenses, lifestyle
expenses including travel and leisure, and gifting.
Project the costs of essential big-ticket items.
For those who are still working, make sure you
pay yourself first. For those of you who are
retired, consider keeping 6 to 12 months of living
expenses in a savings account or money market
funds. Make sure that your needs are accurately
reflected in your financial plan.
Resolution 2: Manage your debt
Debt is neither inherently good nor bad – it is
simply a tool. Keep your debt load manageable
by not confusing what you can borrow with what
you should borrow. Eliminate high-cost, nondeductible consumer debt. Match repayment
terms to your time horizon. Set a goal of paying
off any mortgage balance prior to retirement.
Resolution 3: Optimize your portfolio
Revisit your financial plan to ensure that the
overall mix of stocks, bonds, and cash in all of
your investment accounts are still in sync with
your long-term financial goals, risk tolerance
and time frame. Diversification reduces risks
and is a critical factor in helping you reach your
goals. Keep in mind that your financial plan was
designed to help you stay disciplined in all kinds
of markets. We can work with you to monitor
your plan and make adjustments as needed.
Remember, the long-term progress that you make
towards your goals is more important than shortterm portfolio performance. Continued on Page 2
••
2016
11.96%
13.80%
21.31%
1.00%
2.65%
0.25%
16.50%
As the saying goes, "the broad markets have continued to climb a wall of worries."
Equity markets finished 2016 on a positive note with the major domestic indexes posting double
digit returns. Small companies led the way with returns north of 20% for the year. A post-election
surge in the dollar negatively impacted international investments in the fourth quarter leaving just
••
a small gain.
Interest rates moved quite dramatically in the post-election period as expectations around government policies changed. The benchmark 10 year Treasury bond finished the year around 2.5% after
being below 1.5% around mid-year. Bonds were generally able to post small positive returns despite
••
the volatility in interest rates.
For the second year in a row, the Federal Reserve elected to raise interest rates at their December
meeting. The forecast released after the meeting suggested there would likely be three interest rate
••
increases in 2017.
The recovery in oil prices seems to have stabilized and it does appear that the bottom for energy
prices may have been established. OPEC surprised the market by agreeing to a significant production cut for the first time in many years causing some increase in prices in the fourth quarter. The
combination of OPEC members historically producing above the agreed upon levels and increased
production from non-OPEC members leaves some doubt about the long term effect of this move.
News and Noteworthy
••
The U.S. presidential election presented investors with many surprises both in terms of the winner
and the market’s reaction to that win. Many experts expected a significant market decline if Donald
Trump was elected. That decline lasted only hours and then the market rallied as investors seemed
to focus on the positive economic elements of the Trump platform and seemingly ignored the
••
negative side.
We expect political battles and volatility will have a significant impact on markets in 2017 as policy
details and priorities emerge. We would not expect a smooth ride once the “tweets” start flying
••
over policy.
Another change that will occur in 2017 is the annual rotation of the voting members of the Federal
Reserve Board’s Open Market Committee. This rotation saw some of the more “hawkish” members
leaving the board. The expectation is that the new voting group will be somewhat more “dovish”
than last year’s vintage. This may lead to more caution when considering additional rate hikes
••
throughout the year.
Moving into 2017 the topic of elections will certainly not be going away as significant elections
throughout Europe have the potential to have significant impacts on the global economy and com-
Where Families Invest
�
position of the European Union. Following the Brexit vote and recent Italian referendum it does
seem that populist movement is continuing to gain momentum in Europe.
New Year's Financial Resolutions ~ Continued from Page 1
Resolution 4: Prepare for the unexpected
Your financial life can be upended by all kinds of nasty surprises. Protect against large medical expenses
by selecting a health insurance policy that matches your needs in areas such as coverage, deductibles,
co-payments and choice of medical providers. If you have minor children or if you have large liabilities
that will continue after your death for which you can’t self-insure, take advantage of the life insurance
coverage offered by your employer and/or consider purchasing a low-cost level term life policy. Check
your homeowner’s and auto policies to make sure your coverage and deductibles are still right for you. A
personal liability “umbrella” policy is a cost-effective way to increase your liability coverage by $1 million
or more, in case you’re at fault in an accident or someone is injured on your property.
Tr ia ng le S ec u r it ie s i s a pr iv ately
owned investment advisory firm that
specializes in assisting families with
developing a realistic strategic plan to
provide the best opportunity for achieving their long-term financial goals as
prudently as possible.
Resolution 5: Protect your estate
Take care of important estate documents. If you don’t have a will, durable power of attorney and health
care directive, make 2017 the year to prepare an estate plan. Make sure a trusted and competent family
member or close friend knows the location of your important estate documents. If you’re tech-savvy,
consider storing important documents in the cloud. It’s also a good idea to have copies of your wills, trust
documents, birth certificates, passports, records of home improvements and insurance policies in a small
“evacuation box” (the fireproof, waterproof kind you can lock) that you can grab in a hurry in case you have
to evacuate immediately.
We provide clients structure, clarity, confidence and reassurance as they move
toward the next phase of life. Our clients
value our honesty, integrity, transparency
and genuine concern for their well-being.
Remember you don't have to do everything at once. Take one step at a time. Take advantage of the planning workshops
that we offer throughout the year and make some real progress on your financial fitness journey in 2017.
We are in business to serve our clients.
Team Spotlight
Our core values describe who we are
and what we stand for, as well as what
our clients can expect from us everyday.
Independence
We value the independence of seeking the best solutions for our clients
and are not beholden to any one compa ny or it s i nve st ment produc t s .
Integrity
We have a duty to a lways ac t in
t h e b e s t i nt e re s t of ou r c l i e nt s .
In her own words: “I am both motivated and humbled every day by the trust our clients place in us. It
is deeply and personally rewarding to help families plan for and enjoy life. The relationships I have with
our clients and our wonderful team accord me the rare gift of truly loving my work.”
Cathy is a 36 year veteran of the financial services industry. She joined Paul
Reynolds at Wheat First Securities in 1991 and is one of the founding members of Triangle Securities. Cathy has three roles; COO, CCO, and Senior
Relationship Manager. She embraces each of these roles as integral to providing the highest level of ethical standards, trust, and care to Triangle’s
clients and associates alike.
“From what we get, we can make a living.
What we give, however, makes a life.” - Arthur Ashe
Care & Concern
We create multigenerational relationships based on mutual trust and respect.
We a re advoc ates for ou r cl ients.
Please Note: When you send us a check,
don’t forget to make it payable to “Charles
Schwab,” not Tr ia ng le Secu r it ies.
For a digital version of our “Market News” update,
please visit www.trianglesecurities.com/news-resources/
1301 Annapolis Drive, Raleigh NC 27608
phone 919.838.3221
toll free 877.678.5901
fax 919.838.9081
Computer Hack Response Guide
www.trianglesecurities.com
Cathy L. Thomas, CRPS®
Managing Director, Chief Operating & Compliance Officer,
Senior Relationship Manager
Run an anti-virus scan of your computer.
Change password of affected account and any account with the same password. It is a good time to
change all passwords at this time!
Update all software on your computer/laptop/device.
Contact your credit card company/bank. Alert them of the fraud and ask to close affected accounts and
open new ones with new cards.
Contact one of the big three credit reporting bureaus and place a fraud alert on your credit. This will
make it harder for a thief to obtain new credit in your name. You only need to alert one bureau; they
will alter the other two. Consider placing a credit freeze.
Order a copy of your credit report from the three credit reporting bureaus. Review your credit report
and dispute fraudulent activity.
File a police report.
Submit an Identity Theft Report to the Federal Trade Commission. Visit their website for instructions; www.ftc.gov/complaint
Close any other accounts that you believe may be affected.
Continue to monitor all financial accounts for any fraudulent charges.
Credit Reporting Agencies:
Experian: 888-397-3742 • Equifax: 800-846-5279 • TransUnion: 877-322-8228 • FTC: 877-438-4338