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June 2013 AAM Newsletter
Hello and thank you for reading my e-newsletter.
I hope you find the information useful. If you enjoy the newsletter please forward to a friend. Please also let me know what you like to see so that I may continue to provide relevant content.
If you are a client of mine, thank you for your continued business and please update me on any changes in your situation do that I can make the appropriate changes to your financial plan and investments.
If you are not a client please consider giving me a call or emailing me if you would like to begin a plan to get you to your financial goals. I consider myself different from many of the advisors out there for the following reasons:
1) You will not be pressured to purchase any products because I am a fee-only advisor and a NAPFA® Member (no commission sales)
2) You will have a comprehensive financial plan completed by a Certified Financial Planner ™ Practitioner or CFP® - I have committed to financial planning and continuing education.
3) You will have a reasonable fee for the services performed. I charge less than the typical large financial planning firm by being a small shop and keeping my business expenses low.
Ronald J. VanSurksum, CFP®
Stocks continued to move higher and have been positive for every month so far in 2013. Jobs data, home data and retail sales helped push US stocks higher despite a jump in interest rates and disappointing news from overseas.
Index performance May 2013 Year-To-Date (5/31)
- The S&P index +2.08% +14.34%
- Dow Jones industrial 30 +1.86% +15.35%
- The NASDAQ Index +3.82% +14.45%
- The Russell 2000 Small cap +3.87% +15.87%
- EAFE International Index -3.02% +5.65%
- The US Dollar +1.91% +4.37%
- Oil -1.82% -0.07%
- Gold -6.12% -17.21%
- Yields moved significantly higher in May, the 10-year treasury is currently yielding 2.16% and the 30 year treasury is yielding 3.31%
May was off to a big start with a very positive April jobs report and positive revisions to previous months pushing the Dow index well above 15,000. Retail sales and construction data were positive for the month as well. Consumer confidence hit a six year high but manufacturing data was mixed.
Treasury bonds suffered their worst month since 2010 as concerns that the Fed will begin to slow the asset purchase plan pushed bond yields higher and prices down.
Overseas Japan endured an extremely volatile month dropping more than 7% in one day of trading after an 80% gain over the last 12 months. The Eurozone unemployment data hit record highs and global growth forecasts were lowered sending International stocks lower for the month.
For weekly market updates please visit my blog which is now part of my new website at www.aamllc.com
Mortgage rates jumped higher last month. The national average on mortgage as per Bloomberg.com shows the 15-year rate is now at 3.18% and the 30-year rate is at 4.03%. These rates are as of 6/7/2013 and may include points. Again, if you have the equity in your home and a 5+ year time frame this could be a great time to refinance and lock in historically low rates.
With the money you save you could be paying off your mortgage sooner, paying off other bills, increasing your cash reserves or building up your long-term investments.
CD rates were mixed over the last month. Charles Schwab has access to CD’s from banks all over the country. Here are some of the current CD rates offered.
6 mo CD @ 0.15% 1-Yr CD @ 0.25%
2-Yr CD @ 0.55% 5-Yr CD @ 1.35%
Currently I am not doing much with CD Ladders. I will start using them again as rates begin to rise. If you want to know what I am doing as an alternative let me know.
Tips and Suggestions
Do a midyear review of your budget to see how well you’re sticking to spending limits and savings goals. Make adjustments if necessary.
Are you on track to meet your financial goals? Do you have a plan to get you where you want to be? If you do not you probably will not reach your goals. Let’s make a plan to Maximize your financial potential.
What is your tax plan for 2013? Is it time for one?
Need help with your 401k? I am now using GoToMeeting.com to allow me to help review your 401k online and help you rebalance. We can access the plan together online, I can give you control to log in and then we can discuss and make changes together. Let me know if you want to discuss!
Are your cash reserves earning less than 1%? Consider a short-term US treasury fund or Corporate Bond fund to give your secondary cash reserves a yield boost.
I added a new section on my blog for social security tips. Check out the latest at:
If you have any question or if you would like to have help with your financial plan please give me - your Fee-only Certified Financial Planning ™ Practitioner a call.
All articles are now found on my website which has been combined with my blog: www.aamllc.com
Sector Funds, Are They Worth A Look?
High-Yield Bonds: Income Potential at a Price
In Volatile Markets Investors May Find Comfort in Dividends
What Are Health Savings Accounts?
Do you want more information on how I can help you? Give me a call or drop me an email to review or set up a free initial consultation.