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Surviving the Zero Interest Rate Environment

Federal Estate Tax Update

Identity Theft Checklist

Important Message about IRA Conversion Opportunities

Can You Afford Long-term Care Insurance?

About SC&H Financial Advisors, Inc.

Personal Financial Planning is not a one-time event—it is a critical, ongoing process that, if managed well, leads to financial freedom.

At SC&H, we develop complete and flexible plans that are designed to meet your ongoing needs. They are complete, because you need a fully integrated and comprehensive financial strategy that incorporates all of the most important wealth care issues. They are flexible, because milestones in your life such as a marriage, a career change, the birth of a child, a divorce, or a death in the family will require adjustments to your overall financial plan.

To learn more about these services, visit www.scandh.com/fa.

In This Issue:

Message from Greg Horning

Getting Back In

Welcome

This month's issue of Financial Perspectives focuses on the trepidation that many investors are feeling as they consider re-entering the market after such a difficult couple of years. We have spoken with many friends and clients who know they need to get back into the market, but are confused about how to go about it. Below we discuss a strategy that is appealing for those investors who are ready to "Get Back In."

As always, feel free to give any of us a call with questions. We are happy to help.

Regards,

Greg Horning
President, SC&H Financial Advisors, Inc.
(410) 403-1512
GHorning@SCandH.com

Getting Back In

Are you one of the many investors that pulled your money out of the market in 2008 and 2009 when the Dow Jones Industrial Average plunged to 6547? Do you still have your money sitting in CD's, savings accounts, and money market funds, earning less than a half percent interest? If so, you're not alone, and you may be confused about what you should do next.

Investors who have been sitting on the sidelines have missed out on a gain of over 50 percent in the S&P 500 since that rocky time. Many investors are wondering if it's too late, or how and when should they get back into the market. So, how should investors "Get Back In?"

One solution investors should consider is a strategy called dollar-cost averaging. Dollar-cost averaging is a technique designed to reduce market risk through the systematic purchase of securities at predetermined intervals and set amounts. Many investors practice dollar-cost averaging without realizing it. If you are investing a regular amount in a 401(k) or another employer-sponsored retirement plan via payroll deduction, you are already using dollar-cost averaging.

Dollar-cost averaging takes some of the guesswork out of investing in the stock market. Instead of waiting to invest a single lump sum, you invest smaller amounts of money at regular intervals, no matter how the market is performing. Your goal is to reduce the overall volatility of your portfolio by purchasing more shares when the price is low and fewer shares when the price is high. Although dollar-cost averaging can't guarantee a profit or protect against a loss in a declining market, over time your average cost per share is likely to be less than the average market share price.

When should you start to get back into the market? Do it right now. How many times have we said "I'll do it tomorrow, next week, or next month?" Pretty soon, those days turn into weeks, weeks turn into months, and months turn into years. Then, you end up right back where you started. Don't procrastinate.

Here are a few tips to help you put this strategy into place:

• Get started as soon as possible. Once you have decided that dollar cost averaging is appropriate for you, start investing right away. The sooner you start, the more opportunity you will have to build a sizeable investment over time.

• Stay with it. Dollar-cost averaging is a long-term investment strategy. Make sure that you have the financial resources and the discipline to invest continuously through all types of markets, regardless of price fluctuations.
• Take advantage of automatic deductions. Having your investment contributions deducted from your paycheck or bank account is an easy and convenient way to invest, and can help you get in the habit of investing regularly.
• Review your allocation. If you were one of the investors that cashed out of the market as it was crashing, obviously the investment mix wasn't right for you. While every investor's situation is different, make sure that your investment allocation matches your risk tolerance and time horizon.

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