Reason Financial

Investors had reason to cheer in the early months of 2012, the best quarter for U.S. securities in almost 14 years. The Dow advanced for the sixth straight month in March, NASDAQ had its best quarter since 1991, and the S&P finished up 12%.¹

Overall appetite for riskier investments increased worldwide with investor optimism. The CBOE VIX, which measures volatility and is often referred to as the “fear index,” fell 33.76%. The data stream from the US continues to entice foreign investors at a time when indicators from their regions are underwhelming.¹

While the first quarter rewarded prudent investors, notable economic indicators project a slowing of some 1st quarter momentum. Already, lower earnings estimates for the quarter ahead are sobering.¹

As we prepare to welcome in the New Year, we would like to highlight some changes to the tax code that may affect your filing situation.

2011 brought with it three new Acts: “Small Business Jobs Act of 2010”; “Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010”; and the “Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011”.

Following is a brief summary of how most taxpayers will be affected for 2011 and the upcoming 2012 tax year.

San Diego, CA – December 10, 2011 – Rawdin-Baron Financial, Inc., headquartered in San Diego, renewed its commitment to wealth management excellence at 1st Global’s 20th annual National Conference, November 13-15, 2011, at the Grand America Hotel in Salt Lake City, Utah.

October provided equity investors with the best month in nearly 20 years. In percentage terms, the Dow Jones Industrial Average (DJIA) gained 9.54%, NASDAQ rose 11.14% and the S&P 500 closed up 10.77% from September1. While November typically is the “sweet spot” for technical minded investors (the S&P 500 has advanced in 57% of Novembers since 1928 and is continuously the second-best month of the year since 1950), the unresolved situation in Europe continues to hang over the market.

Enacted in 2010, The Foreign Account Tax Compliance Act (FATCA) purpose is to combat tax evasion by holding investments in offshore accounts.

It imposes a new annual reporting requirement for US Tax Payers holding foreign assets.

Last week markets fell as investors assessed the news and political efforts to stabilize the world economies.

Among the headlines, the Federal Reserve released a statement in which they committed $400 billion to buying longer-term Treasuries. This reinforces their commitment to keeping long-term interest rates low, and indicates their perception that economic growth remains slow.

September marks the time of year when students pack up their book bags and return to the classroom… and when tuition payments are due.

The costs of attending college have risen significantly over the years and a major source of funding is provided in the form of student loans.

The nation’s student loan program has been in place for decades. A major change to the program was implemented in the “Health Care and Education Reconciliation Act” that President Obama signed into law in March 2010.

August 23, 2011 – Arthur Laffer, Ph.D., founder and chairman of Laffer Associates and economic advisor to 1st Global, was interviewed today on CNBC along with Marshall Sonenshine, CEO of Sonenshine Partners. The nine-minute segment focused on tax rates and government revenues. This short video quickly crystallizes and demystifies the Laffer Curve’s continued validity in these times and illustrates that issues surrounding taxing the wealthy are “not religion, but math.”

San Diego, California, August 12, 2011 – Late last Friday Standard & Poors issued a historic downgrade of U.S. Debt from AAA to AA+. This unprecedented step has triggered immense debate and concern. It has also precipitated dramatic volatility in stock markets around the world.