For the Week of November 25, 2019

The Markets

Last week, investors weighed positive comments about a Phase 1 trade agreement from President Trump and President Xi against the Federal Communications Commission’s vote to label Chinese telecom giants Huawei and ZTE as national security risks. The three major indexes closed higher Friday but fell for the week. The Dow snapped a four-week winning streak; the S&P broke six weeks of gains, and the NASDAQ ended a seven-week advance. For the week, the Dow fell 0.41 percent to close at 27,875.62. The S&P lost 0.29 percent to finish at 3,110.29, and the NASDAQ dropped 0.25 percent to end the week at 8,519.88.

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.

Small Group, Big Number — Just 6 percent of the 45 million Americans who have student loans hold 33 percent of the nation’s $1.50 trillion of outstanding student loans. This group comprises borrowers with at least $100,000 of outstanding student loan debt (source: Brookings Institute, BTN Research).

Households — Of the 123 million households in the United States as of Sept. 30, 2019, an estimated 30 million are homeowners with no mortgage, 50 million are homeowners with a mortgage and 43 million are renters (source: Census Bureau, BTN Research).

A Slowdown — 90 percent of the world’s economies are projected to grow more slowly in calendar year 2019 than they did in calendar year 2018. The U.S. economy grew by 2.9 percent in 2018 and to date has grown by an annualized 2.3 percent in 2019 (source: International Monetary Fund, BTN Research).

WEEKLY FOCUS – Precautions for Safe Online Shopping

If this holiday season is anything like last year’s, 8 percent of consumers will have their identity stolen in the next few weeks.¹ If you plan to take advantage of the many great deals available on the internet this time of year, it’s important to take precautions to protect your sensitive information from cyber thieves and hackers.

Update Your Computer or Device: It’s critical to ensure you are running the latest antivirus software. Out of date software can give cyber thieves an open door to your personal data. There are many antivirus packages available, so do some comparison shopping before downloading one. While you’re updating your software, be sure you’re running the latest version of your browser to ensure it has the most current security patches.

Look for the “S”: Make sure you’re shopping on a secure website by looking for a URL that starts with “https.” If a retailer’s site doesn’t have the “s” on the end, it isn’t a secure site, and it’s best to find another retailer.

Do Not Save Credit Card Info to Accounts: Retailers often offer to save your credit card info, so you don’t have to enter it each time you make a purchase. But this convenience can also make that information more susceptible to theft.

Avoid Unfamiliar Retailers: Always shop with known reputable retailers. No matter how good an offer seems, if you haven’t heard of the vendor, it’s best to shop elsewhere or at least check customer reviews and other consumer feedback regarding the company and its products.

Don’t Use Public Wi-Fi: It may be tempting to shop while sipping a peppermint latte at your favorite coffee shop. But logging on to public wi-fi can open your personal information to hackers lurking on the same network.  If you must use public wi-fi, consider installing a virtual private network to encrypt the data on your smartphone, tablet or laptop.

Read the Privacy Policy: If you are uncertain about how a company uses and secures your credit card and other personal information, carefully read its privacy policy found on its website or request that they send it to you.

To learn more ways to protect your personal information during the holiday season and all year long, give us a call today.

¹https://www.lifelock.com/learn-internet-security-safe-holiday-online-shopping-tips.html

* 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 November 2019. All rights reserved. Securities offered through Securities America, Inc., Member FINRA/SIPC. SAI#2844599.1

For the Week of November 18, 2019

The Markets

All three major indexes hit record highs Friday after White House economic adviser Larry Kudlow said current China-US negotiations are “very constructive.” The Dow hit 28,000 for the first time ever. The S&P 500 and the NASDAQ also broke records. For the week, the Dow rose 1.24 percent to close at 28,004.89. The S&P gained 0.94 percent to finish at 3,120.46, and the NASDAQ climbed 0.77 percent to end at 8,540.83.

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.

That Would Hurt — Individual income taxes paid by American taxpayers would have to increase by 57 percent to eliminate our $984 billion deficit from fiscal year 2019 (source: Treasury Department, BTN Research).

Old and Still Owing Money — In 2016, 46 percent of American homeowners ages 65-79 had outstanding mortgage debt on their primary residence, almost double from the 24 percent of this age bracket that had mortgage debt 30 years earlier (source: Joint Center for Housing Studies of Harvard University, BTN Research).

Double in Length — The current bull market for the S&P 500 reached a new closing high for the index on Friday, Nov. 8, extending the bull run to 10.67 years. The average length for all 11 bull markets that have taken place since 1950, including the current bull, is 5.33 years (source: BTN Research).

WEEKLY FOCUS – Relocating in Retirement

The newfound freedom retirees experience and pre-retirees anticipate often leads to thoughts of relocating to be closer to grandchildren, live in an appealing climate or cut expenses. Because moves – particularly out-of-state moves – are costly, it’s important to weigh many factors, such as:

Cost of living. Research the cost of housing, healthcare, long-term care, food, services and taxes in a prospective community. Does the state tax income, sales and/or Social Security? What does it charge for auto sales and license renewals? How high is real estate tax in the area? Auto insurance? What are typical costs for heating and cooling a home? Are estate taxes favorable?

Job availability. According to an Employee Benefit Research Institute survey, 80 percent of workers expect to work for pay in retirement. If that option matters to you, rule out cities with high unemployment rates or limited jobs that would interest you. If you plan to work from home, remember some remote areas or small towns may only offer slow dial-up service.

Attractive lifestyle. Will you like the local culture? Will you fit in? Does the community offer civic events and leisure activities you’ll enjoy? Perhaps there’s a university that lets retirees audit courses at no charge or attend performances or sporting events at reduced prices. Is the city walkable? Does it provide adequate public transportation if you no longer want to drive? What is the crime rate? Are hospitals and health systems highly rated? Do they have a wide range of specialists? Is the housing market stable – in case you decide to sell your home at some point?

Before you move: Relocating is costly – and a major upheaval. So, it’s important to make sure you get it right. On top of thoroughly researching the factors above, subscribe to a local paper or magazine and join a community Facebook group to learn about the area’s social scene and crime rate and see what residents are discussing. And consider making one or more trial runs by renting a home for a week or two at different times of year.

Where you live – and the cost of living there – greatly impact how long your retirement assets will last. If you’re considering a retirement relocation, call our office. We can help you analyze the financial impact of your choices.

* 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 November 2019. All rights reserved. Securities offered through Securities America, Inc., Member FINRA/SIPC. SAI# 2830702.1

For the Week of November 11, 2019

The Markets

Stocks closed higher Friday despite losses earlier in the day after President Trump told reporters he had not agreed to reduce tariffs on Chinese imports. All three major indexes still closed at record highs and ended higher for the week. For the week, the Dow rose 1.37 percent to close at 27,681.24. The S&P gained 0.93 percent to finish at 3,093.08, and the NASDAQ climbed 1.06 percent to end the week at 8,475.31.

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.

Three in a Row — The Fed lowered short-term interest rates on Wednesday, Oct. 30, its third consecutive meeting that has resulted in a rate cut. That’s the first time the Fed has reduced rates over three straight meetings since Dec. 16, 2008 (source: Federal Reserve, BTN Research).

Procrastinate — 37 percent of 2,003 Americans surveyed in the first quarter of 2019 had less than $5,000 accumulated in pretax retirement accounts (source: Northwestern Mutual Planning & Progress Study, BTN Research).

Owners and Renters — The 111.2 million households in the United States on Sept. 30, 2009, were split 68/32 between 75.2 million owners and 36.0 million renters. The 122.7 million households in the United States on Sept. 30, 2019, were split 65/35 between 79.5 million owners and 43.2 million renters (source: Census Bureau, BTN Research).

WEEKLY FOCUS – November Is National Caregivers Month

With the graying of the baby boomers, more adult children juggle with new and unexpected responsibilities as caregivers for one or more of their aging parents. Boston College research has found that about 17 percent of adult children now provide some level of care for a parent and spend an average 77 hours each month looking after relatives. And an AARP study, “Family Caregiving and Out-of-Pocket Costs,” revealed 78 percent of family caregivers spent an average $6,954 (20 percent of their income) on care-related expenses in 2016.

In caring for a loved one, caregivers face social, emotional, medical and financial challenges. The following tips could guide you through some of the financial challenges you may face when caring for an aging loved one.

1. Pick a point of contact. One sibling or other close relative should be in charge of communicating with doctors, with health care power of attorney.
2. Find a family-friendly primary doctor. Your loved one may receive care from multiple specialists. Choose one to serve as a primary medical resource. If you’re caring from a distance, consider asking their doctor if they are willing to communicate via email.
3. Create a central storage place for vital documents, including medical records, Social Security numbers and health insurance policy information. You don’t want to dig through decades of old files to find what you need in a hurry. Make duplicates of hard copy documents and store them in at least two fireproof and waterproof locations. Digital imaging and storage services are a convenient way to access files remotely.
4. Talk to your parent about long-term care insurance. Nursing home costs continue to rise faster than inflation and can quickly deplete savings. If your loved one is healthy enough to qualify, paying premiums for them could help safeguard your savings from their future healthcare expenses.
5. Discuss finances. The point-of-contact relative or another relative equipped to deal with financial matters should have financial power of attorney. They should know the location of key accounts and policies, and the names and phone numbers for key advisors.

Call our office today. We can help you prepare for the responsibilities of caring for your loved one and ensure your financial plans are ready if, or when, needed.

* 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 November 2019. All rights reserved. Securities offered through Securities America, Inc., Member FINRA/SIPC. SAI# 2819607.1

For the Week of November 4, 2019

The Markets

Stocks rose sharply during November’s first session. The S&P 500 and the NASDAQ surged to new records after a reassuring jobs report. The Labor Department estimated the U.S. added 128,000 new jobs in October and raised its estimate of employment growth for September and August. For the week, the Dow rose 1.44 percent to close at 27,347.36. The S&P gained 1.49 percent to finish at 3,066.91, and the NASDAQ climbed 1.74 percent to end the week at 8,386.40.

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.

It Doesn’t Last Long — A study involving 2,500 wealthy families over decades of wealth transfers across generations found, on average, only 30 percent of the original family fortune remained at the end of the second generation, and only 10 percent remained at the end of the third generation (source: Williams Group, BTN Research).

No Work — 37 percent of American seniors report they retired earlier than planned as a result of health problems, buyout packages, layoffs, grandchildren or caring for an aging parent (source: Health and Retirement Study, BTN Research).

Live Within Your Means — 41 percent of American households make less than $50,000 of adjusted gross income (AGI) per year. Only 8 percent of American households make at least $200,000 of AGI (source: Census Bureau, BTN Research).

WEEKLY FOCUS – November Is Long-Term Care Awareness Month

Although the cost of long-term care is a huge concern for retirees, sales of traditional long-term care (LTC) insurance policies have fallen dramatically since the early 2000s. For several reasons. Amid longer lifespans and rising healthcare costs, many insurers have shortened the period of benefits, reduced the daily amount they will pay and/or cut their inflation-protection benefit.

Some companies now offer policies that require a co-pay for LTC services, and one is adding a co-pay option to existing policies. But the least popular change insurers have made is raising existing customers’ policy premiums – by as much as 100 percent.

Even if traditional LTC insurance is less popular than it once was, it’s important to prepare financially for the likelihood that future care will be needed. Here are some additional avenues to consider:

Life insurance with an accelerated death benefit rider that can be used for LTC or with a LTC rider. Unlike traditional LTC insurance, if you don’t use it, you will still leave a tax-deferred death benefit to your heirs. (These options aren’t usually available on term policies.)

Some annuity products, designed for accumulation or income, may also carry some LTC benefits.

Self-funding future LTC. This method requires discipline and time to build wealth. Maximizing yearly contributions to HSA and IRA accounts and letting them grow tax-deferred throughout your career is a good start. Other possible sources could be your Social Security payments, selling your home or getting a reverse mortgage if a spouse is still living in the home.

Here’s what NOT to do: rely on the government. With a few exceptions, Medicare primarily pays for short-term nursing home care following hospitalization. Medicaid only pays for LTC after nearly all your assets have been depleted – and limits the assets a spouse can retain. If you rely on Medicaid, you will probably not have access to a private room and will have fewer facilities to choose from. Many states do not pay for in-home, assisted living or adult day care.

While it’s great to hope you never need long-term care, it’s best to plan for the unplanned. I would be happy to meet with you to review your plan for long-term care funding and discuss changes you might consider to better prepare for this possibility.

* 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 November 2019. All rights reserved. Securities offered through Securities America, Inc., Member FINRA/SIPC. SAI#2810044.1