The S&P 500 finished the week down 3.94%, settling at 2,658.69. The index is 9.28% below the September 20th all-time high. The correction may well continue with the next test, an additional 3% lower to 2,581.00, its low close on February 8th at the bottom of this year’s earlier correction. Interest rates have done little […]
Read MoreMonth: October 2018
Ask a Trust Officer: Marital trusts
DEAR TRUST OFFICER: Now that the federal estate tax exemption is over $10 million, do I still need a marital deduction trust in my will for my wife? — CONCERNED HUSBAND DEAR CONCERNED HUSBAND: Most likely, yes. If your current will includes a trust for a surviving spouse, you probably will want to keep it. […]
Read MorePlay Your Game
This weekly update has often explained that a successful financial plan is about focusing on personal goals and the variables in our lives which we can control. Short-term market action is obviously not one of those variables. Weekly market moves will only distract investors. This is not an original thought. Legendary investor, economist and university […]
Read MoreAvoid Retirement Surprises
The latest news on retirement preparedness is not encouraging. An estimated 40% of households headed by people aged 55 through 70 are unlikely to have sufficient resources to maintain their standard of living, according to a Wall Street Journal analysis. The median 401(k) account balance for this group is just $135,000, which might be enough […]
Read MoreWhat Changed? What Do We Do Now?
The S&P 500 lost 5.58% from last month’s record high but is still up 3.50% year to date. Was this the correction that didn’t come during the summer? Was this the beginning of another 10% correction similar to the 10.16% decline we experienced between January 26th and February 8th? Could this be the start of […]
Read MoreA New Kind of Long-Term Care Insurance
More than 400,000 long-term-care insurance policies were sold in 1992, according to figures published by The Wall Street Journal. These are the policies that help seniors cover the costs of nursing home stays at the end of life. At least 400,000 additional policies were purchased each year in the subsequent ten years, peaking at about […]
Read MoreThe Fed is Not Ending the Expansion
Interest rates moved to new near-term highs last week. The yield on the 10-Year Treasury ended the week at 3.23%, a level not seen since 2011. The backdrop for this move was statements by Federal Reserve Board Chairman, Jerome Powell, which included, “The really extremely accommodative low interest rates that we needed when the economy […]
Read MoreWhat’s in a Sector?
The S&P 500 stocks may be divided into sectors, as follows: Energy Consumer Discretionary Consumer Staples Health Care Information Technology Financials Industrials Materials Communication Services Utilities Why is this important? Just as all stocks do not move in lockstep, each sector of the S&P 500 follows its own path. Some exhibit more growth characteristics; others […]
Read MoreThird Quarter Recap
Stocks were off a tad for the week, but finished the quarter with a gain of 7.7%, as measured by the S&P 500. This pretty much closed the window on the seasonal correction many expected over the summer. Anticipated double digit third quarter earnings growth along with movement toward resolution of trade disputes seemed to […]
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