ED SLOTT, CPA
Owner
Ed Slott & Co.
Rockville Centre, N.Y.
General outlook:
Mr. Slott is convinced that taxes will go up in 2009 and believes that advisers should work with eligible clients to help convert individual retirement accounts to Roth IRAs.
"Either you print more money or raise taxes. I think they're going to do a little of both," Mr. Slott said.
It's important that advisers work closely with clients to ensure that there are no mistakes when they complete rollovers, he said.
"There's a lot to know about distribution planning," Mr. Slott said. "The biggest mistake an adviser makes is not following the transaction closely."
Next big trend: Even though
Roth conversions have been slow, Mr. Slott believes that there will be more
Roth conversions in 2009 because of low taxes and lower IRA account values.
"There's a double sale on Roths," Mr. Slott said. "The values are depressed, and the tax rates are low. Roth IRAs are a bargain."
Biggest concern: The biggest issue for advisers in 2009 will be how to help clients who have lost their jobs to decide which accounts to tap into for daily expenses.
"Advisers need to be educated so they can create a real plan," Mr. Slott said. "They can't be a salesman."
Reading, watching, listening to:
Book: "While America Aged: How Pension Debts Ruined General Motors, Stopped the NYC Subways, Bankrupted San Diego, and Loom as the Next Financial Crisis" by Roger Lowenstein (Penguin Group, 2008).
TV: MSNBC, CNN and Fox News.
Music: 1960s and 1970s, such as The Beatles and The Grateful Dead.
Primary news sources: The Wall Street Journal, The New York Times and USA Today.
ROBERT GLOVSKY
President
Mintz Levin Financial Advisors LLC
Boston
Assets under management:
$850 million
Forecast:
"I think it will be a little bit bumpy for the economy and the markets for the first few months of the year, but then we will gain some traction," Mr. Glovsky said. He thinks the second half of 2009 will be strong.
"Right now, the new administration seems to be well-poised to do some decisive action that will help the economy. President-elect Barack Obama has surrounded himself with excellent people. I also think that will help consumer confidence tremendously," Mr. Glovsky said.
The 2009 finish line:
Dow: 10,000
Nasdaq: 1,600
S&P 500: 950
Tip sheet:
Favorite fund: Dodge & Cox Stock Fund (DODGX).
Favorite sector: Energy.
Next big thing: A major federal stimulus package. "I would have a concern if Congress underdoes it. And they should enact it as soon as possible, because it will take time to kick in," Mr. Glovsky said.
Biggest concern: Investor panic. "My concern is that people are going to sit in cash and be afraid to go back into the market. That would be OK if they can live on less and work much longer before retiring. They need to understand there are trade-offs."
Reading, watching, listening to:
Book: "Team of Rivals" by Doris Kearns Goodwin (Simon & Schuster, 2006).
Newspapers: The Wall Street Journal, The New York Times.
TV: "This Week With George Stephanopolous" and "Meet the Press."
—Sue Asci
NEIL HENNESSY
Chief investment officer
Hennessy Mutual Funds Inc.
Novata, Calif.
Assets under management:
$597 million
Forecast for 2009:
The economy will slowly start to rebound in 2009, with hiring starting to pick up in the second half of the year, Mr. Hennessy said. Many companies will be in a strong position because of improved balance sheets, the result of cutting jobs in 2008, he said. Despite the down economy, many public companies have still managed to make profits, which will bode well for the markets in 2009, Mr. Hennessy said.
"As much as it seems in this environment that companies are losing money, they are making money," he said. "There is tons of money sitting on the sidelines and companies have tons of money sitting on their books."
The 2009 finish line:
The Dow: 12,500
The Nasdaq: 1,875
The S&P 500: 1,100
Tip Sheet:
Favorite stock: Ross Stores Inc. (ROST).
Favorite sector: Consumer discretionary.
Next big thing: Institutional and retail investors will boost spending in the market in 2009 with cash that has sitting on the sidelines.
Biggest concern: If interest rates are raised, it will be a setback in trying to turn around the real estate market.
Reading, watching, listening to:
Book: "Blue Blood and Mutiny" by Patricia Beard (HarperCollins Publishers Inc., 2008).
Primary news source: cnn.com
—Andrew Coen
ERIC R. DINALLO
Superintendent
New York State Insurance Department
Albany, N.Y.
General outlook:
Mr. Dinallo will focus on securities lending this year, asking each life insurance company about its approach toward these transactions and preparing to evaluate the carriers' programs, he said. Insurers loan their securities to investors in return for cash, which the carriers use to invest in other assets.
But during the credit crunch, investors wanted their money back and that forced the insurers to sell off assets when prices were at their lowest.
Regulators need to redo the reporting and accounting practices around insurers' securities lending programs, and he expects to push that initiative forward as chairman of the life insurance and annuities (A) committee of the National Association of Insurance Commissioners in Kansas City, Mo.
Next big trend:
Long term care insurance will be on regulators' radar.
Biggest concern:
Insurers may face a statutory accounting problem that would keep them from having sufficient capital surpluses to meet regulators' requirements, Mr. Dinallo said.
Reading , watching, listening to:
Book: "Naked" by David Sedaris (Little Brown & Co., 1998).
Radio: Bloomberg.
Primary news sources: Financial Times, The Wall Street Journal, The New York Times, CNBC and Google News.
—Darla Mercado
