PFP - February 2025 Newsletter

Dear Clients and Friends of Prehmus Financial,

As we move through February, we want to remind you about important tax documents as you prepare for the April 15th deadline. Additionally, with a dynamic start to 2025, we’d like to share an overview of our market research and investment analysis process and philosophy—our foundation for managing your portfolios with care and diligence.

Tax Document Prep Update

Fidelity: Fidelity Tax Information Statements (including 1099s and other tax documents) typically become available mid-February, though revisions may delay your final versions until late February or even early March (or even later if your Fidelity account has an investment that generates a K1). 

The quickest and most secure way for you to access tax documents is via your Fidelity portal (www.fidelity.com), where the information can be located at the box titled “Your 2024 tax information” on the Portfolio Summary page. 

If your form still says “Preliminary,” Fidelity is finalizing it and you will be alerted when they have completed that process. If you would like to start or stop receiving your tax documents via US mail, search for “electronic delivery preferences” and adjust your communication settings as appropriate.

Pershing: If you have accounts at Pershing, you can retrieve your tax documents through NetXInvestor (www.netxinvestor.com). Many Pershing account holders receive K1s, which often arrive later in the year than standard 1099s from publicly traded investments, so these tax documents may not be prepared until closer to tax day, so don’t be alarmed if you don’t see completed tax documents before the end of March or the first week of April.

Other Investment Accounts: For those with investments held elsewhere, tax documents will be available via the respective investment company’s online portal, which you will likely receive email notifications about from the companies as well. K1s for these investments may not be available until late March or early April, and some may require filing extensions.

Transferred Accounts: For our clients who transferred accounts from one custodian or account to another during 2024, remember that both your previous and current accounts may generate tax documents and that you should check both web portals for tax documents.

Our Market Research & Investment Analysis Process

We take great pride in our investment research process. Led by our Investment Committee, chaired by Chad Edwards, we continuously monitor financial markets to make informed decisions about your portfolios. Our committee actively reviews market news, economic data, and research from about a dozen top sources, including Horse’s Mouth, Chaikin Analytics, and Rosenberg Research, to name a few. This comprehensive approach helps us maintain a forward-looking investment strategy. A few of the opportunities we are monitoring closely are easing monetary policy, resilient corporate earnings, infrastructure and green energy investments, and advancements in AI and technology. Several of the risks we are tracking include persistent inflation and high interest rates, geopolitical uncertainty, corporate debt and credit conditions, and recession risk. 

A recent advancement in our practice has been the use of AI to summarize and process the extensive reports we review. What previously required hours of manual review can now be distilled more efficiently, allowing us to focus more time on strategic insights and portfolio positioning.

Our Investment Philosophy

Our core investment thesis continues to emphasize downside protection while maintaining exposure to growth opportunities. While we are pleased with our 2024 performance relative to benchmarks, we consistently remind clients that markets do not rise indefinitely. We remain committed to positioning your portfolios for long-term success while ensuring proper downside protections are in place.

Thank You

We are grateful to serve so many wonderful clients and households. Thank you for trusting us with your financial future. We look forward to staying in touch throughout 2025 and beyond.

Sincerely, The Prehmus Financial Advisor Team