Weekly Market Notes – May 22, 2017


For the Week of May 22, 2017

The Markets

Wall Street saw sharp losses mid-week after reports surfaced that President Trump tried to interfere in the federal investigation of possible coordination between Russia and Trump’s election campaign. Stocks rose Friday but closed down for the week. For the week, the Dow fell 0.32 percent to close at 20,804.84. The S&P lost 0.32 percent to finish at 2,381.73, and the NASDAQ dropped 0.61 percent to end the week at 6,083.70.

Returns Through 5/19/17 1 Week YTD 1 Year 3 Year 5 Year
Dow Jones Industrials (TR) -0.32 6.35 22.41 10.76 13.79
NASDAQ Composite (PR) -0.61 13.01 29.10 13.82 16.97
S&P 500 (TR) -0.32 7.24 19.24 10.42 15.40
Barclays US Agg Bond (TR) 0.48 2.05 1.44 2.57 2.25
MSCI EAFE (TR) 0.98 13.45 19.46 1.89 9.75

Source: Morningstar.com. *Past performance is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Three- and five-year returns are annualized. The Dow Jones Industrials, MSCI EAFE, Barclays US Agg Bond and S&P, excluding “1 Week” returns, are based on total return, which is a reflection of return to an investor by reinvesting dividends after the deduction of withholding tax. The NASDAQ is based on price return, which is the capital appreciation of the portfolio, excluding income generated by the assets in the portfolio in the form of interest and dividends. (TR) indicates total return. (PR) indicates price return. MSCI EAFE returns stated in U.S. dollars.


The Young and the Rich — Americans under the age of 35 make up 25 percent of the U.S. population but hold just 5 percent of U.S. wealth. Americans between the ages of 55-64 make up 16 percent of the U.S. population but hold 31 percent of U.S. wealth (source: Federal Reserve Bank of St. Louis, BTN Research).

A Goal of Mine — Of American adults who are not homeowners, 69 percent anticipate they will become a homeowner within the next 10 years (source: Gallup Poll, BTN Research).

Not Enough Shoppers — Fourteen publicly traded U.S. retailers have filed for Chapter 11 bankruptcy protection in 2017. Eighteen retailers filed for bankruptcy protection in 2009 (source: AlixPartners, BTN Research).


WEEKLY FOCUS – Before You Retire…

If you’ve worked, saved and planned for retirement, you may think you can ease up during your final years of work. But there are actually many things to do and consider as you approach the finish line to retirement. Here are a few: 

Get one-time expenses out of the way. You may want to tackle the big house repair or renovation you’ve been planning before you quit working. If costs are more than expected, you can work a few extra months to cover them.

Review your employee handbook. Working through a certain date may qualify you for an annual bonus, extra vacation pay, full vesting on your retirement account or a bigger pension. If a stressful work situation or health issues make working difficult, you may be able to take a leave of absence or combine short-term medical benefits, vacation and sick time to reach the target.

Use health benefits. Use up medical, vision or dental benefits that will expire and any funds in a flexible spending account before the deadline. If you haven’t done so, determine what Medicare options best suit your needs.

Max out your tax-advantaged contributions. You can contribute to a 401(k) or solo 401(k) as long as you are working (regardless of age), and may be able to delay required minimum distributions if your plan allows it. If neither you nor your spouse has a 401(k), you can contribute to a traditional IRA (regardless of income) until you are 70½ if you are working. If you do have a 401(k) and your earned income doesn’t exceed the maximum allowed, you can contribute to a traditional IRA until you are 70½. As long as you have earned income, you can contribute to a Roth IRA (regardless of age) if your earned income falls below the maximum allowed.

Consider consolidating accounts. If your employer allows you to keep your 401(k) when you leave, compare its fees and range of investments to your IRA’s options. Consolidating can reduce paperwork and make it easier to balance investments, plan required minimum distributions and update beneficiary changes.

Do a dry run. Work with your advisor to create a distribution plan for your investments. After determining your monthly post-retirement income, try living on that amount for a few months. If it’s difficult, explore possible changes.

We want your retirement experience to be the one you’ve dreamed of. We can help you evaluate all the aspects related to your retirement years and create a personalized, comprehensive plan.

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*The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Morgan Stanley Capital International Europe, Australia and Far East Index (MSCI EAFE Index) is a widely recognized benchmark of non-U.S. stock markets. It is an unmanaged index composed of a sample of companies representative of the market structure of 20 European and Pacific Basin countries and includes reinvestment of all dividends. Barclays Capital Aggregate Bond Index is an unmanaged index comprised of U.S. investment-grade, fixed-rate bond market securities, including government, government agency, corporate and mortgage-backed securities between one and 10 years. Written by Securities America, Copyright May 2017. All rights reserved. Securities offered through Securities America, Inc., Member FINRA/SIPC. SAI# 1802859.1

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