For the Week of January 27, 2020

The Markets

Stocks slid in a broad sell-off Friday amid concern the spread of China’s coronavirus could disrupt travel and slow global economic growth. After the Centers for Disease Control and Prevention confirmed the second case of the virus in the U.S., the S&P saw its biggest one-day percentage drop in more than three months. For the week, the Dow fell 1.01 percent to close at 28,989.73. The S&P lost 0.63 percent to finish at 3,295.47, and the NASDAQ dropped 0.45 percent to end the week at 9,314.91.

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.

They Own It Now — Banks foreclosed on 143,955 homes nationwide in 2019, down 37 percent from 230,305 foreclosures in 2018 and down 51 percent from 291,579 foreclosures in 2017. The worst single month of foreclosures in U.S. history – 102,134 foreclosures in Sept. 2010 (source: ATTOM Data Solutions, BTN Research).

Really Low — Inflation, as measured by the Consumer Price Index, was up 2.3 percent for 2019. For the decade of the 2010s, inflation was up just 1.8 percent per year, the lowest decade of inflation in the U.S. since the 1930s. By comparison, the decade of the 1970s suffered 7.4 percent annual inflation (source: Department of Labor, BTN Research).

New Law — On Dec. 20, 2019, President Trump signed the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019. The legislation increases the required minimum distribution age from 70½ to 72 for Americans who turn 70½ after Dec. 31, 2019 (source: Congress, BTN Research).

WEEKLY FOCUS – Prevent Tax Identity Theft

You may not be ready for tax season, but IRS imposters and identity thieves are. They’re just waiting to get your Social Security number, file a fraudulent tax return and claim your refund. If their scam goes well, you won’t know what happened until you file your return and the IRS rejects it as a duplicate. Leaving you with a lengthy wait for your return while the IRS investigates. Here are a few ways to thwart thieves.

Don’t take the bait. Ninety percent of all data thefts start with an email phishing scam.¹ Learn to recognize warning signs like misspellings, generic messages and a false sense of urgency. Delete emails from people you don’t know or companies you don’t do business with. If you get an email that says there is problem with your account, contact the company directly using a known website or phone number. Never open links unless you are sure of the source.

Keep your mobile device and computer updated. Add two-factor authentication on your financial accounts, requiring a one-time code sent by text or email to log in.

Be a little anti-social, less open and less trusting. Thieves embed dangerous links in social media ads, messages, tweets and posts. Be particularly suspicious of posts that say you’ve won a gift card, promise gossipy details about a celebrity, warn your account will be closed, feature a test or survey, or redirect you to see a photo of yourself. Avoid sharing personal details on social media, such as your birthday, address, schedule or mother’s maiden name.

Head them off at the pass. File your return as early as possible, especially if your personal information may have been compromised in a data breach. Research a tax preparer before handing over your personal information. If you file yourself, mail your return directly from the post office or use a secure internet connection to file electronically.

Remember the IRS will not call, text or email. They’ll contact you by U.S. mail with an official seal. If you aren’t sure a communication is legitimate, call the IRS at 800-829-1040 to verify. If you fear you’ve been a victim of tax identity theft, call the IRS at 800-908-4490 or visit www.irs.gov/identitytheft.

If you would like more information about identity theft and protecting your confidential and important information, please contact our office. ¹https://www.irs.gov/newsroom/national-tax-security-awareness-week-day-2-dont-take-the-bait-recognize-avoid-phishing-scams-from-identity-thieves

* 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 January 2020. All rights reserved. Securities offered through Securities America, Inc., Member FINRA/SIPC. SAI# 2923324.1

For the Week of January 13, 2020

The Markets

Middle East turmoil created a volatile week on Wall Street, but investors appeared to shake off geopolitical concerns on Friday as the Dow climbed above 29,000 for the first time. However, a decent but weaker-than-expected jobs report dampened enthusiasm, causing stocks to fall. Despite the disappointment, the major indexes posted weekly gains. For the week, the Dow rose 0.67 percent to close at 28,823.77. The S&P gained 0.98 percent to finish at 3,265.35, and the NASDAQ climbed 1.75 percent to end the week at 9,178.86.

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.

Newborns — Our nation’s general fertility rate, defined as the number of births per 1,000 women between the ages of 15-44, was just 59 births in 2018, a record low for birth data that has been tracked nationally since 1909, the last 110 years (source: National Center for Health Statistics, BTN Research).

For the Year — The S&P 500 gained 31.5 percent (total return) during 2019, its best performance since 2013 and the 13th year in the last 25 years that the $28.1 trillion index has returned at least 15 percent (total return) for the calendar year (source: BTN Research).

Long-Term — The S&P 500 has gained an average of 10.6 percent per year (total return) over the last 50 years. The index has been positive in 15 of the last 17 years. Over the long term, the S&P 500 has been up during 40 of the last 50 years, or 80 percent of the time (source: BTN Research).

WEEKLY FOCUS – A Safe Deposit Box or A Home Safe?

Comparing bank safe deposit boxes to home safes can be difficult because of different needs and the variety of good, better and best options with home safes. Despite these variables, some general comparisons apply.

Security. Homes don’t have the same level of security banks offer from outside intruders. However, in rare cases, box owners have lost valuables, whether through internal, administrative error or failure to pay fees. Although bank vaults are usually reinforced to withstand natural disasters, they are not immune to fire or flood. To mediate risk, ask for a box in a high location and keep valuables in plastic bags or containers. Since flash drives can melt, it’s better to store digital items in an online backup – perhaps an online safe deposit box.

Content in a safe deposit box is not federally insured. Your home owner’s insurance may cover valuables in a home safe better. In either case, look at the limits of your policy and consider extra insurance or a separate rider as needed. Make sure to take photos, document the contents of your safe or box and check its contents regularly. And keep copies of important documents in a second location.

Access. Access to bank boxes is limited by the bank’s business hours. So, don’t keep anything you may need on short notice in a bank box, such as a passport, power of attorney or insurance policy. In the event of your death, the box will be sealed. This can be true even if other family members have access to the box. An executor cannot access the box unless they can provide proof they have authority to do so. In some cases, securing this proof can take weeks or even months. Because of this, it’s ill-advised to keep an original will or funeral directives in a deposit box.

Restrictions. Make sure to read your safe deposit box rental agreement for forbidden items, which could include cash, firearms or anything considered hazardous. Banks may also limit the combined value of your box’s contents.

Protecting your personal and financial information is our top priority. If you would like more information about the safeguards we have in place to protect your identity, please contact our office.

* 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 January 2020. All rights reserved. Securities offered through Securities America, Inc., Member FINRA/SIPC. SAI#2903108.1

For the Week of January 6, 2020

The Markets

Stocks fell across the board Friday after a U.S. air strike in Iraq killed Iran’s top military commander and escalated Middle East tensions. Crude oil prices surged in the wake of the strike. Along with geopolitical concerns, data showed U.S. factory activity shrank in December. For the week, the Dow was unchanged and closed at 28,634.88. The S&P lost 0.12 percent to finish at 3,234.85, and the NASDAQ rose 0.16 percent to end the week at 9,020.77.

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.

Way Behind — After adjusting for the impact of inflation, an average millennial in 2019 had a net worth 41 percent less than the net worth of a similarly aged adult 30 years earlier in 1989. Millennials were born between 1981-97 and were age 22-38 in 2019 (source: Federal Reserve Bank of St. Louis, BTN Research).

We’re Almost Even — The U.S. has 121 companies in the Fortune Global 500 rankings for 2019 compared to 119 companies from China. Twenty years ago, the U.S. had 181 companies in the Fortune Global 500 rankings while China had just five. The rankings are based upon annual revenues (source: Fortune, BTN Research).

Shifting Away From China — U.S. manufacturers have moved some of their supply chains away from China in 2019, increasing imports from Taiwan (up 22 percent YTD through May 31, 2019), from India (up 12 percent YTD) and from South Korea (up 12 percent YTD) (source: Commerce Department, BTN Research).

WEEKLY FOCUS – Making Successful Financial Goals in 2020

There’s a good chance you’re among the 45 percent of Americans who made New Year’s resolutions last year, according to a report from the University of Scranton’s Journal of Clinical Psychology. It’s less likely you’re one of the 8 percent of resolution-makers to see them to fruition. But don’t despair. The good news? You get a reset every year.

Make realistic resolutions for 2020 and consider these financial goals.

Evaluate how much you’re worth. It’s an arbitrary date, but the New Year is as good a time as any to calculate your financial worth. This is a solid first step in assessing your financial health and establishing financial goals. Itemizing your assets and identifying liabilities will provide a clear picture of your priorities and reveal where you need to change spending and saving habits. You could even plan to recalculate your net worth every New Year to refine your financial strategy.

Refine/Reset Your Retirement Savings. If you don’t already, think about maxing out retirement contributions in your 401(k), 403(b) or 457 plan. Budget how much you can realistically afford to save each pay period. Instruct your employer to withhold enough salary deferrals to make sure you contribute, as much as possible, the maximum limit each year. If you’ll be 50 or older by Dec. 31, you can increase your contributions to take advantage of catch-up contributions.

If you’re self-employed, you can contribute to a SEP IRA or SOLO 401(k) plan. If you also work for another employer, you may be able to contribute to an individual retirement account and your employer’s 401(k) – provided your income meets the guidelines. The catch-up provision also applies here. The rules for contributing to multiple plans can be complex; please see the IRS website or a tax consultant for more details.

Silo Your Savings. If you’re like most people, easy access to your funds can be more than tempting. To help safeguard your financial efforts, eliminate the temptation. Automate savings transfers from checking to specially designated, separate savings or investment accounts that aren’t as easily accessed.

Call our office today. We can help you determine your net worth and develop realistic and timely financial goals. Securities America and its advisors do not provide tax advice.

* 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 January 2020. All rights reserved. Securities offered through Securities America, Inc., Member FINRA/SIPC. SAI#2892536.1