Annual Letter from Don
I’m happy to report on another very successful year in our shared pursuit of your financial goals. Your plan and portfolio continue to be driven by those goals, rather than by prognostication around the economy or the markets. This will continue to be the case in the coming year, and beyond.
WHAT YOU’LL FIND INSIDE:
- ANNUAL LETTER FROM DON
- CALENDAR
- CLIENT SPOTLIGHT
- GIVING WELL
- THANK YOU!
I’ll begin by restating some of our core beliefs and proceed to a few comments about the current economic and financial backdrop.
We are long-term, goal-focused, plan-driven investors. Our core investment policy is to invest in broadly diversified portfolios of high-quality businesses. We believe that the economy can’t be consistently forecast, nor the markets consistently timed. We conclude from this that the only practical way to capture the long-term return of equities is to ride out their frequent, sometimes significant but historically always temporary, declines. We do not react to economic or market events. As long as your long-term goals remain unchanged, so will our plan for the achievement of those goals.
Powered mostly by a few of the largest technology stocks, the past year was exceptionally good for the diversified equity investor. The presidential election result was at least clear and uncontested. The economic backdrop continued favorably. The job market remained fairly strong, though showed signs of cooling due to relatively stringent monetary policy. Corporate earnings and dividends reached record highs and are forecast to increase further in 2025.
If anything, late in the year many investors feared that the equity market had gotten ahead of itself, as evidenced by somewhat stretched valuations. Since valuations have never proven to be a reliable timing tool – any more than anything else has – we encouraged clients to stay the course and continue to follow their plan.
As Fed Chair Powell observed in mid-December, inflation hasn’t, nor is it, going away. And while the fiscal condition of the United States remains undeniably irresponsible, the consumer is, perhaps surprisingly, in very good shape. The household debt service ratio (debt payments as a percentage of disposable personal income) is near 40-year lows at 11.3% in the fourth quarter of 2024*.
It doesn’t seem plausible that the broad equity market can continue to compound at the nearly 16% it’s been producing since the March 2009 Global Financial Crisis lows. Our long-term plan assumes the hundred-year return of the S&P 500 at around ten percent.
We wish all our clients and friends – because to us they’re the same – a healthy, happy, and prosperous 2025. We’re always here to answer your concerns. Thank you for being our clients. It is a privilege to serve you.
Don
Don Hershberger, CFP®, AIF®, CRC®
Founder & President, PWM
*JP Morgan Asset Management’s monthly publication, “Guide to the Markets”, January 2025 issue, page 18
Calendar
Feb 15 – Raymond James begins mailing 1099 tax statements
Feb 17 – Financial Markets closed for Presidents Day, Paramount office will be open.
Feb 28 – Raymond James mails amended 1099s and those delayed due to specific holdings and/or income reallocation.
March 9 – Daylight saving time begins. Spring forward one hour.
March 15 – Final day for Raymond James to mail any original 1099s and continued amended 1099s as needed.
May 9 – Paper Shred Event 11:30 am – 1:30 pm at our office in Jackson, MI
Client Spotlight – Maryanne Fuchs
We love to spotlight clients who embody the spirit of living an inspired life. This month, we feature Maryanne Fuchs, who flew to The Big Apple in January to celebrate Hoda Kotb’s career after 17 years as co-anchor of the Today Show.
A long-time watcher of the Today Show, Maryanne, shared her admiration for Hoda’s positivity, kindness, and gentle spirit. “Hoda didn’t seem like a television reporter to me, she was more like a friend. She always had something positive and inspiring to say.”
While she was going through her recent journey with breast cancer, Maryanne found solace and strength in Hoda’s daily presence on the Today Show. “I decided that I was going to watch the show every morning to listen to what Hoda had to say”. Attending the “Hoda-bration” was her way of expressing gratitude and celebrating the role Hoda played in her healing journey.
Maryanne and her daughter, Heather, got an early start, arriving at 6:30 AM to join a long line of fans. In the crowd, Maryanne spotted a reporter from her local news station, WILX in Lansing, and her enthusiasm landed her an interview on the local news! (pictured above) When asked by the reporter why she wanted to attend the “Hoda-bration” she shared, “Hoda got me through breast cancer!”
After the show, Maryanne and Heather embraced the magic of New York City, visiting iconic sights: Times Square, Rockefeller Center, the 9/11 Memorial, Central Park, and more. They also attended two Broadway shows and enjoyed the holiday decorations that were still on display, including the Rockefeller Center Christmas tree. Reflecting on the experience, Maryanne said, “January was a wonderful time to visit New York. The city was magical with all the holiday decorations still up, and we were able to enjoy the sights without the usual holiday crowds.”
Maryanne’s experience reminds us of the power of inspiration and the importance of pursuing the moments and experiences that matter most.
Giving Well When You Decide To Give
Saving well, spending well and investing well are essential to a financially sound lifestyle, but for those inclined toward philanthropy, giving well should garner similar consideration.
Matters of timing, taxation and method can significantly change how your giving aligns with both your financial plan and your philanthropic objectives. Thoughtful planning and an understanding of the nuances can help you balance competing interests and help you increase the effect of your giving. Click the button below for some of the basic principles of giving well.
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Thank You!
Thank you for being a valued part of our Paramount Wealth family. We look forward to helping you, and those you care about, live a life of true inspiration.
The Paramount Wealth Management Team
The Paramount Wealth Management Team
420 South Brown Street
Jackson, MI 49203
517-787-4444
517-795-2530 (F)
www.paramountwealth.com
Don Hershberger CFP®, AIF®, CRC®, Founder and President, PWM, was named on the 2024 Forbes Top Wealth Advisor Best-in-State list.
The Forbes Best-In-State Wealth Advisors 2024 ranking, developed by SHOOK Research, is based on an algorithm of qualitative criteria, mostly gained through telephone and in-person due diligence interviews, and quantitative data. This ranking is based upon the period from 6/30/2022 to 6/30/2023 and was released on 4/3/2024. Those advisors that are considered have a minimum of seven years of experience, and the algorithm weighs factors like revenue trends, assets under management, compliance records, industry experience and those that encompass best practices in their practices and approach to working with clients. Portfolio performance is not a criteria due to varying client objectives and lack of audited data. Out of approximately 44,990 nominations, roughly 8,500 advisors received the award. This ranking is not indicative of an advisor’s future performance, is not an endorsement, and may not be representative of individual clients’ experience. Neither Raymond James nor any of its Financial Advisors or RIA firms pay a fee in exchange for obtaining this award/rating. Compensation provided for using the rating. Raymond James is not affiliated with Forbes or Shook Research, LLC. Please visit https://www.forbes.com/best-in-state-wealth-advisors for more info.
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