For the Week of April 26, 2021
Stocks rebounded Friday after dropping Thursday following reports President Biden planned to propose doubling capital gains taxes on individuals earning $1 million or more. But the S&P ended Friday close to its record high amid expectations of a strong earnings report this week. For the week, the Dow fell 0.42 percent to close at 34,043.49. The S&P lost 0.11 percent to finish at 4,180.17, and the NASDAQ dropped 0.25 percent to end at 14,016.81.
|Returns Through 4/23/21||1 Week||YTD||1 Year||3 Year||5 Year|
|Dow Jones Industrials (TR)||-0.42||11.86||47.87||14.26||16.30|
|NASDAQ Composite (TR)||-0.25||8.96||66.30||26.51||24.65|
|S&P 500 (TR)||-0.11||11.80||51.92||18.33||17.12|
|Barclays US Agg Bond (TR)||0.13||-2.43||-0.05||5.32||3.31|
|MSCI EAFE (TR)||-0.41||7.41||45.96||6.58||8.94|
Thirty-Something — The average age of a first-time U.S. homebuyer in 2020 was 36.1 years old (source: New York Fed Consumer Credit Panel, BTN Research).
Need a Charge? — The American Jobs Plan, a $2.3 trillion infrastructure plan proposed by the Biden White House on March 31, includes $174 billion (8 percent of the total plan) to be invested in the domestic electric vehicle market. Funds would be used to build and maintain 500,000 charging stations nationwide (source: Biden White House, BTN Research).
Money In, a Lot More Out — Halfway through fiscal year 2021, i.e., the 6 months ending March 31, 2021, the U.S. government has taken in $1.7 trillion in taxes and spent $3.4 trillion, resulting in a 2021 fiscal year deficit to date of $1.7 trillion with 6 months still to go in the fiscal year. Last year’s fiscal year 2020 budget deficit of $3.1 trillion was our nation’s all-time record (source: Treasury Department, BTN Research).
WEEKLY FOCUS – Without Umbrella Coverage, Your Assets Could Be at Risk
You’ve worked hard to build up your nest egg. But what would happen if you were involved in an accident, which left you liable for an amount above the limits of your homeowners or auto insurance? All your hard-earned assets could be gone over night.
To protect your savings, you may want to consider adding umbrella insurance to your homeowners and auto coverage. Also known as excess personal liability insurance, umbrella insurance provides an extra layer of security, which will pay for a judgment or settlement if you’re found responsible and cover your defense expenses even if you’re not at fault.
If you own property or items that could cause an injury to someone else, such as a pool, a dog, a trampoline, a boat, or a snowmobile, you should consider purchasing umbrella insurance. If you’re a landlord, serve on the board of a nonprofit, coach kids’ sports, or volunteer, you could also benefit from the protection offered by an umbrella policy.
Umbrella insurance is typically sold in increments of $1 million. The price of a policy will vary by risk and where you live. Because the insurance only pays if a claim exceeds the liability limit of your homeowners or auto insurance, coverage is generally affordable. You can expect to pay $150 to $300 per year for $1 million of coverage.
For an additional $100 to $200, you can add excess uninsured or underinsured motorist coverage, which covers you if you’re injured by another driver who doesn’t have enough coverage. For about $1,000 a year, you can tack on an endorsement that will provide additional protection from lawsuits if you serve as an officer or volunteer on a nonprofit board.
To keep premiums low, it’s best to purchase your umbrella insurance from the same provider you purchase your home and auto insurance from. It’s common for an insurance carrier to require you to have $250,000 in auto insurance and $300,000 of homeowners coverage before you can purchase an umbrella plan. (Make sure you don’t have a coverage gap between your original and umbrella policies.)
If you would like to learn more about umbrella insurance and other ways you can protect your finances, call us today to schedule an appointment.