Addington Financial Group

This is a new addition to the site that I will update frequently with timely info and news. Your feedback as always will be appreciated!

I thought that the current volatility of the market warranted some discussion. It is obvious that as a whole—you ‘get it’ and as they say I am preaching to the choir but it is hard not to get concerned with the Media spouting non-stop doom and gloom. So my intention is not to lecture but to acknowledge current market conditions.

We have been through down markets together before, if not as far back as 1987 then certainly in 2000-2002. What we have or should have learned from those times--is that only if you sell when the market is down--do you actually suffer a loss. If you stand pat with your fundamental principals intact--then at the end of the downturn (bear market, recession, market tank--whatever we want to call it) we actually come out way ahead of our counterparts that forget the fundamental investment principals and instead succumb to those emotions that have long driven the market--fear and greed.

Investment decisions based upon fear or greed lead investors to buy when others buy and sell when others sell, guaranteeing terrible investment results.

If you are currently taking systematic distributions from your account(s), then we have not only one year of that income in cash--but two additional years of income identified in short term cash/bond positions. This strategy allowed us to weather the bear market of 2000-2002 very well and set us up for exceptional gains during the recovery period. All it takes is discipline and the ability to 'turn off' emotions when it comes to investment decisions. In short, we must have a decision framework that gives us a consistent basis on which to buy and sell. The market is down, you're not going to help matters by making a mistake by acting precipitously, just for the sake of "doing something."

There are few hard and fast rules in the stock market, but this one is a candidate: The market doesn't reward euphoria or panic.

"The more you can make investing a policy and an automated process, the less likely you are to have your emotions be hostage to the state of the markets and the 100 million other people who are investing alongside you. Because if you take your impulses from what they are doing, you'll always be as crazy as they are.” - Jason Zweig

All this said—please feel free to contact me at anytime to discuss the market—or anything else.

SIMPLE IRA's and 401(k) Account Holders--Don't forget to make your 2007 matching contribution prior to filing your tax returns.

The following web site will give you the lowest gas prices in your area--just plug in your zip-code. The site is updated daily

What's in a name? Maybe your tax refund!

If the name you use on your tax return doesn't match the name on file with Social Security as a result of marriage, divorce, adoption, or whim, you could get snagged when you file your tax return. The IRS says they'll delay refunds for mismatched names and numbers and disallow personal exemption and Earned Income Tax Credit claims if the name on your Social Security records doesn't match the name you file under.

Complete Form SS-5 to correct your records. You can download the form from the Social Security web site, take it to the SS office with ID showing your new name and something showing your old name. You can also get the form from the Social Security office.

The name change can be filed by mail, but it could take several weeks.

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Contact Informaton : Mailing Address: P.O. Box 143 Winnsboro, TX 75494 Phone: 866.220.7788 Fax: 214.242.2442
laura@addingtonfg.com