Wealth Management Report
Friday December 17, 2010
E. Jeffrey Roof
“2011 will likely offer more of the quixotic investment conditions experienced throughout most of this year while the economy and markets continue to regain their footing from the recent recession.
As detailed in our firm’s most recent Investment Update, we currently see certain equity investments as providing attractive returns relative to risk when compared to fixed-income alternatives in the existing interest rate environment, although the utilization of high-quality bonds always plays a fundamental role in our disciplined investment strategy.
We strongly believe proper diversification is essential as a means of distributing risk in prudent portfolio management, particularly in uncertain markets, although investors as a whole remain surprisingly unaware of their portfolio’s true diversification and inherent risk.
Finally, the past 10 years have clearly debunked the myth of a ‘set it and forget it’ investment approach, with 2011 likely again providing an unpredictable financial landscape where optimizing portfolio return and controlling portfolio risk is dependent upon active investment management.”
Wealth Management Report
Friday December 17, 2010
Bradley R. Newman
“In 2011 and going forward, it will become even more critical for people of all ages to regularly review the appropriateness of their current investment strategy, whether it was purposefully established or whether it exists by default, with specific attention to how the continually evolving investment landscape impacts their investment strategies.
Detailed financial planning will often uncover several competing goals, which will require different strategies to accommodate each specific goal. Over time, as financial plans are updated, each investment strategy needs to be reevaluated and readjusted as circumstances change. The crucial transition will occur as the focus evolves from asset accumulation to asset distribution with the ultimate goal being to effectively and efficiently execute a strategy to turn their portfolio into an ongoing income stream.”
December 13, 2010
$4,500 Donation from Roof Advisory Group Will Secure Turkeys for Holiday Meals (Harrisburg, PA) –The Central Pennsylvania Food Bank received a $4,500 donation from Roof Advisory Group for the second straight year. The Food Bank will use this donation to purchase and distribute approximately 375 turkeys to families in need during this holiday season.
“We decided to make a contribution again this year to the Central PA Food Bank in lieu of our normal practice of sending holiday gifts to our valued clients as an expression of appreciation for their business,” said
E. Jeffrey Roof, President of Roof Advisory Group, Inc., a leading investment management firm based in Harrisburg. “Since 2010 has continued to be a tougher year than most for many families, both our staff and clientele thought this contribution would be a better use of those funds again this year” said Roof. “Hopefully our donation of about 375 turkeys will help some of those families in need to have a happier holiday season.”
According to Food Bank Executive Director Kendall Hanna, “These recessionary times have caused many of our neighbors to seek assistance from the food pantries, shelters and soup kitchens that we provide food to. In fact, demand has increased by 50 – 60% over last two years. Roof Advisory Group’s contribution will help us provide many more families, children and seniors with a nutritious holiday meal.”
The public can donate turkeys, as well as the ingredients for side dishes at the Central Pennsylvania Food Bank office at 3908 Corey Road, Harrisburg during the following hours: Weekdays through December 30 – 8 a.m. – 5 p.m.
The Central Pennsylvania Food Bank is a not-for-profit organization that is able to reduce hunger in 27 counties across Pennsylvania, by working with more than 500 program partners to provide food to 35,000 people in need every week. For more information on the Food Bank and its mission to reduce hunger in Pennsylvania, visit www.centralpafoodbank.org
Click Here to see the offical release.
Central PA recovers slowly from recession
Wednesday September 15, 2010
By: Jason Scott
We all know it takes two to tango.
But what about a solid economy?
Again, two things - a stable banking industry and steady housing market.
Both have come back slowly since the recession ended last year, but the economy has yet to find enough "financial fuel to get the rocket to take off," economist Joel Naroff, president of Naroff Economic Advisors, said Tuesday at an economic forecast luncheon hosted by the West Shore Chamber of Commerce.
"We are indeed out of the recession," said Naroff, a perennial speaker at this longstanding chamber event.
However, nobody really seems to believe that, he noted, despite four consecutive quarters of positive economic growth, eight straight months of "mediocre" job growth and 10 out of the last 12 months where industrial production has increased.
"It hasn't been felt by the average person," Naroff said.
He appears to be right. With the exception of one person, hands didn't exactly shoot up from the 190 people in the room at the West Shore Country Club when Naroff asked if they felt the recession was over.
No one believed him last year, either, when he said we were starting to come out of the recession....
Jeffrey Roof of Roof Advisory Group, a Harrisburg-based investment and financial planning firm, agreed with Naroff. He was the lone person to raise his hand regarding the recession question.
"We're moving in the right direction," he said.
Most companies have done all they can really do as far as expense cuts, Roof explained. The next step is to hire, he said, which will make consumers less fearful.
"It's going to take a combination of both," he said, referring to job creation and consumer confidence, if the economy is to truly rebound.
The Leading News Source for Financial Advisers
Building excellence in a difficult year
By Evan Cooper
Sunday September 12, 2010
Most advisory firms muddled through 2009, but top-performers still managed to shine in many areas
...The Roof Advisory Group, Inc. in Harrisburg, PA., is an example of a smaller organization where business development is a prime focus. E. Jeffrey Roof, founder of the firm, which manages $164 million for about 125 clients...
Mr. Roof has a specific client profile and seeks out prospects with characteristics that are similar to his existing base, which consists of moderately affluent families with $1.5 million in investable assets.
“Our typical client demographic is a business owner, corporate executive or professional in a two-income household,” he said. “They're typically in their late 40s or 50s and perhaps looking to transition out of business. They're dealing with kids getting ready for college or in college, and with elder care for their parents. Some are evaluating their housing needs and perhaps considering a second home.”
The Roof firm's focus on a core client base is reflected in its array of services. Like other top performing firms, it does not stray from its principal business offerings - predominantly asset management plus some financial planning...
How to keep the boom from becoming a bust
By Paula Holtzman
Friday September 10, 2010
...The pending retirements of the boomers also will mean a younger work force with different needs, which can trigger other changes in a company, said Bradley R. Newman, a certified financial planner with Roof Advisory Group Inc., an independent and fee-only advisory management firm in Harrisburg.
“As boomers exit your company, it would be very prudent to revisit the structure of the retirement plan in place, ... As an extension, your entire benefits package likely should be reviewed,” he said...
Firm named city's top in investment advice
The Patriot-News staff
Monday August 2, 2010
Harrisburg • With more than 28 percent growth in assets, Roof Advisory Group, Inc., was Harrisburg's top ranked investment advisory firm for 2009, according to Financial Advisor magazine's national Registered Investment Advisers ranking by assets and growth published in July. The firm was rated in the $100 million- $300 million asset category.
The annual ranking of 456 advisory firms put Roof Advisory Group at No. 272 nationwide. The ranking takes into account year-end assets, percent growth of assets and percent growth in assets per client as well as percent change in number of clients.
Roof Advisory's asset growth performance of 28.19 percent was ahead of overall national results of 23.3 percent. Roof Advisory's growth in average assets per client of 12.9 percent was also ahead of the 11.27 percent national norm and Roof Advisory's increase in new client of 13.54 percent outpaced the national average.
Six midstate investment firms make national list
By Paula Hotzman
Thursday July 29, 2010
Financial Advisor Magazine has ranked six Central Pennsylvania firms as being among its top 456 registered investment advisories nationwide.
The Shrewsbury, N.J.-based publication compiled its tally on assets under management at the end of 2009.…
….The [second] Central Pennsylvania company on the list is:
Financial adviser: Economy shows positive aspects
By Sharon Smith
Monday July 5, 2010
E. Jeffrey Roof founded Roof Advisory Group in Harrisburg in 1998.
Since then, the fee-only financial advisory firm has been providing ongoing portfolio management to high-net-worth individuals, trusts and nonprofits in the midstate.
Roof is a midstate native. He and his wife, Susan, call Hampden Twp. home. They have one son, Bryson, who attends Virginia Wesleyan College.
How do you think the debt problems in Europe will affect the U.S. stock market or U.S. treasuries?
While the immediate fear of an impending default on Greece's debt was averted earlier in May, concerns regarding the health and sustainability of various euro-zone economies will linger. This may continue to roil the U.S. stock market throughout the summer.
Likewise, these concerns will likely keep demand for U.S. treasuries high among investors seeking a fixed income safe haven, thus keeping U.S. treasury yields relatively low in the immediate future.
A lot of the economic data that is coming out is rather conflicting. Some signs suggest the U.S. is the middle of a recovery, while other indicators point to potential problems. Some people have suggested we may have a double-dip recession. What are you advising your clients?
Despite the lag in improving employment numbers and a housing market that remains tepid, we see many economic factors as being quite positive. For the long term, we remain very bullish on the upward direction of both the economy and stocks, in general.
Several fundamentals influencing the investment markets, from corporate earnings to key economic measures, have continued to improve.
From a technical perspective, the price correction that many market watchers have been expecting for some time has occurred, potentially providing the base for the stock market's next move upward.
That said, the potential for continued near-term volatility coupled with the market's current preoccupation with the negative has prompted us to temporarily pare equity exposure across the board for our managed clientele until a semblance of market stability returns.
Do you see the market continuing to have some wild swings, or will things start to stabilize again?
There could continue to be near-term market volatility until some of the unknowns spooking the market are either clarified or determined to be manageable.
Markets dislike uncertainty, and some relief was already evidenced when the Senate's version of financial reform passed late in May.
There is no quick fix for resolving concern over the European situation. Often, the market just needs time to digest potentially negative issues and assess the long-term consequences before coming to the conclusion that prior concerns, or even panic, were simply overblown.
Many investors are wondering where they might find opportunities to capitalize on some investments that may currently be undervalued in this economy. Where do you see opportunities?
Longer term, we continue to see certain equity areas as providing an attractive return relative to risk when compared to other investments in the existing environment, although fixed-income investing plays an important role is our overall portfolio management strategy.
We have already formulated several alternatives ready to potentially implement once the market regains some stability. A lot of people talk about diversification as a means of riding out downturns in the economy, but what does that really mean? How should people diversify?
We strongly believe proper diversification is a critical component of prudent portfolio management. It is a means of distributing risk in your portfolio by having investments in diverse and unrelated assets classes, market segments, industry sectors, etc.
As a result, overall portfolio value can be buffered from a negative event or downward market move that may impact one security or category of investments without devastating the entire portfolio.
It is important for investors to critically assess whether their portfolio is indeed properly diversified. Just having a variety in your portfolio is not sufficient if those different investments all respond to market changes in the same way.
What is your advice to investors dealing with the market?
As a composite answer to the final three questions, the foundation for any portfolio management decision should be a keen understanding of your current circumstances, your end objectives, your risk tolerance and the time frame involved. Age alone should not be the determinant. For example, a couple retiring at age 55 with a sizable investment portfolio may need to accept more risk and volatility to assure their assets can sustain a potential 40-year retirement than a 25-year-old who wants to invest dollars they plan to use as a down payment on a home sometime in the next seven years.
Bankers see high costs, dubious benefits in financial reform bill
By Tim Stuhldreher
Friday July 2, 2010
...One provision is the so-called Volker Rule, intended to keep banks from speculating with their own money in hedge and derivatives. Former Fed Chairman Paul Volker had proposed banning such activity entirely; the final bill would limit such investments to 3 percent of assets.
"That's really not that restrictive," said Bradley R. Newman, a certified financial planner with Roof Advisory Group Inc., an independent, fee-only advisory management firm in Harrisburg.
Many of the banks' worst fears about the bill's restrictions did not materialize, he said.
Bank stocks did not drop significantly following announcement of agreement on the bill, indication investors were fairly sanguine about the bill's effects on banks' future earning power, especially for the largest banks, Newman said.
Just ending the uncertainty over the bill's contents helps the market, he said....
Newman said he's disappointed the bill doesn't include a fiduciary standard on stockbrokers and insurance brokers, requiring them to act in their clients' best interest. The bill would empower the Securities and Exchange Commission to empower such a standard after a six-month review. ...
Milton Hershey School is ready to build homes
By Dan Miller
Monday June 28, 2010
...E. Jeffery Roof, president of Roof Advisory Group in Harrisburg, said of the trust, "A loss of 6.5 percent is not bad given that particular period relative to the equity marketplace."
Roof said Hershey's portfolio was probably not as risky or volatile by design as some larger endowments such as Harvard, which pushed more toward asset growth and was more exposed to hedge funds and real estate. . .
Muni bond investors eye Harrisburg's plight
By Tim Stuhldreher
May 28, 2010
…For investors contemplating a riskier municipal bond market, the key is doing proper due diligence on issuers, making sure they are fully capable of fulfilling their obligation, said Bradley R. Newman, a certified financial planner with Roof Advisory Group Inc., a fee-only advisory management firm in Harrisburg.
Risk belongs to the equity portion of a portfolio, not the bond side, he said. Bonds held to maturity will pay a known amount, their face value. That means investors with safe bonds don't have to worry about activity in the rest of the bond market, and can treat it as "white noise," he said.
Investors should be skeptical of bond insurance, and analyze bond risk as if it didn't exist, Newman added. Newman also is skeptical of ratings agencies and does its own independent bond analysis, he said…
By Keely Childers
March 29, 2010
What uncertainties should investors continue to anticipate?
Investments don't stand alone in a sea of market and currency fluctuations, says Bradley R. Newman, CFP, Roof Advisory Group, an independent and fee-only advisory management firm in Harrisburg. Pair them with the "macroplanning issues" of your own goals and progress to make the right decisions, he advises.
"Step back and ask if you're taking risks you don't need to take," he says. Many people have replaced the traditional concept of retirement - getting that gold watch at 65 - with a nontraditional idea, such as working part-time, volunteering, or taking up a new venture.
"Planning is so invaluable so they know going into it how this will all play out," he says. "Am I on track?"
What's your best advice for investors today?
Bradley Newman: "At the end of the day, it's absolutely imperative when you're dealing with issues of this magnitude and dollars of this magnitude that you get professional advice."
By M. Diane McCormick For The Patriot-News
Sunday March 21, 2010
…When you no longer have access to the workplace 401(k) or pension plan, it's easy to set up a self-employed pension or take advantage of a Roth IRA, said Bradley R. Newman, an investment adviser with Roof Advisory Group, Harrisburg. The hard part is keeping up the savings habit, he said.
"You still have the same questions of what's my time frame, what are my goals, what do I need to be doing today and over the next 10, 20, or 30 years to meet my goals?" Newman said. "The issue becomes, how do you do that on a consistent basis if the income isn't consistent?"
Newman recommended breaking down annual savings goals into smaller time frames. Deposits might not be possible during some one-month or three-month periods when income is slow, but make up the shortfall when more money is coming in…
By M. Diane McCormick
Post-Recession Investing: Pros Make a Comeback
…..Bradley R. Newman, CFP, of Roof Advisory Group, Harrisburg, said his fee-only firm's business began to rise in the fall of 2008, "almost as the markets were falling apart. "Investors sought out new advisors because they sensed that "nothing was done for them during this kind of volatility and unprecedented swings in the market."
"Worried investors often got a "stand pat answer" to ride out the turbulence, when common sense told them that action was needed," Newman said. His firm adjusted portfolios to assure that, even in chaos, funds would keep pointing toward clients' goals and plans.
"To just sit there and take that downturn made absolutely no sense," he said.
"Those personal goals-things like planning for the kids' college or a retirement home-also contributed to a closer reliance on financial planners," Newman said.
"As you get closer, retirement becomes less of an academic exercise and more like a real-life scenario," he said….