AAM April Newsletter

April 2021 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®

For more insight on these groups and myself please click on the following links
www.napfa.org
www.cfp.net
www.fpanet.org  
www.aamllc.com

Please see below for financial articles and tips

Markets

Stocks continued higher back to record levels in March as additional vaccine rollouts and the Biden Covid relief bill was passed and signed into law.

Index performance                                       Mar 2021____    YTD 2021_

  • The S&P index                                 +4.24%                 +5.77%
  • Dow Jones industrial 30                +6.62%                 +7.76%
  • The NASDAQ Index                         +0.41%                 +2.78%
  • The Russell 2000 Small cap          +0.88%                +12.44%
  • EAFE International Index              +2.51%                +3.97%
  • The US Dollar                                   +2.54%                 +3.65% 
  • Oil                                                       -3.80%                 +21.93%
  • Gold                                                    -1.28%                 -10.13%
  • 10-Year Treasury Yield                   1.63%                   0.92% on 12/31/2020
  • 30-Year Treasury Yield                   2.40%                   1.65% on 12/31/2020                   

Volatility was moderate in March for the S&P 500 index.  The index began at 3,811, fell to a low of 3,768 on 3/4 before rallying to a high of 3,974 before falling to 3,972 at month end for a difference of 206 points or about 5.5% from low to high.

Large cap and international stocks led the way higher while technology and small company stocks lagged.

The US dollar and treasury yields surged higher while oil and gold both fell.

Stock prices continue to rise in anticipation of a re-opening of the US and world economies post-covid.  Certain parts of the market may be expensive while other areas still show some value.  It is good to see yields beginning to rise with an improving economic outlook.  Now that the 10-year yield has rallied over 100% from it’s bottom and over 50% this year I would expect it to settle in at these levels with a more gradual grind upward which should be positive for markets.

Please contact me if you have questions or simply just wish to talk.  I am back in the office doing in-person meetings and I will still do meetings over the phone or computer if you are more comfortable with that.

Recent US Economic Data

US Manufacturing – ISM manufacturing rose and beat expectations.
Jobs – The March payroll report blew out expectations adding 916,000 jobs, unemployment fell to 6.0%.
Housing Prices –Both Shiller and FHFA home prices rose with Shiller home prices beating expectations.
Housing starts –Both housing starts and building permits fell and missed estimates.
Existing home sales – Fell and missed estimates.
GDP – 4Q GDP final estimate came in at +4.3% and beat expectations.
Retail Sales – Fell and missed estimates.
Leading indicators – Rose but missed expectations.
Durable goods orders – Fell and missed expectations.
Inflation data was mixed – producer prices rose and matched, consumer prices rose more than expected, import prices and export prices both rose while PCE rose less than expected.

For weekly market updates please visit my blog at www.aamllc.com  

Mortgage Rates
Mortgage rates were slightly lower over the last month.   The national average on mortgage as per Bloomberg.com shows the 15-year rate is now at 2.44% and the 30-year rate is at 3.18%. These rates are as of 4/14/2021 and may include points.   

CD Rates
CD rates were mostly lower 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 @ 0.05%           1-Yr CD @ 0.10%

2-Yr CD @ 0.20%            5-Yr CD @ 0.70%

Tips and Suggestions

The next quarterly estimated tax payments are due 04/15/2021 for the 1st quarter of 2021. 

If you have a child attending college in the fall it is FAFSA time once again beginning 10/1.  The sooner you fill out your FAFSA the better chance you have for financial aid.

Time to check your retirement contributions.  Develop a cash flow plan to maximize your health savings account, 401k, 457, 403b or IRA contributions for 2021.

It is time to plan for 2021!  What would you like to accomplish this year?  How much to you want to save and home much do you need to save to reach your financial goals? 

Is your estate plan up-to-date?  This is a good time to review your estate plan and update your beneficiary designations.

Do you have children age 18 years or older?  You may want to plan for an emergency by obtaining HIPPA authorizations or power-of-attorney so that you can get health information, if needed.

ABLE accounts are now available in the State of Michigan.  ABLE accounts are for certain individuals with disabilities to accumulate funds for their long-term needs without disqualifying themselves for Medicaid.  Check it out at www.miable.org or give me a call.

When is the last time you reviewed your insurance plan?  Is your disability income keeping up with your income?  Do you have any term life insurance policies expiring soon?  Do you need additional coverage or less coverage?  Let’s discuss.

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 may not reach your goals.  Let’s make a plan to Maximize your financial potential.

Do you need a debt payoff plan?  Let’s work on one together.

Need help with your 401k?  We can do a virtual meeting 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, municipal bond fund or corporate bond fund to give your secondary cash reserves a yield boost.

If you have any questions or if you would like to have help with your financial plan please give me – your Fee-only Certified Financial Planning ™ Practitioner – a call.

Useful Links

Work on Your Financial Plan:  

https://www.moneyguidepro.com/redtail/Guests.aspx?gst=072A4BB9148EA94CD07038D0645B88C0FD4A0D16DFD101119F36E4C592D27390

View Your Schwab Accounts:  www.schwab.com

Check your risk tolerance:

https://advisors.stratifi.com/investor/320/qvydglrdeivuychrqumhpzgsvdipzh/target-rating/guest/

Articles

All articles are now found on my website blog: www.aamllc.com

Social Security Tips – February 2021
https://www.aamllc.com/social-security-tips-february-2021/

Age 60 and Feeling Broke?
https://www.aamllc.com/age-60-and-feeling-broke/

Do Today’s Kids Know the Value Of Everything They Take for Granted?
https://www.aamllc.com/do-todays-kids-know-the-value-of-everything-they-take-for-granted/

Can Anyone Afford to go to College Anymore?
https://www.aamllc.com/can-anyone-afford-to-go-to-college-anymore/

Seven Habits of Highly Successful Investors
https://www.aamllc.com/seven-habits-of-highly-successful-investors/

How is Your Relationship with Money?
https://www.aamllc.com/hows-your-relationship-with-money/

Do’s and Don’ts – Good Advice for Investing Wisely
https://www.aamllc.com/dos-donts-good-advice-for-investing-wisely/

Contact MeDo 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.

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Get LinkedIn www.linkedin.com/in/ronaldjvansurksum
Weekly Blog Updates and My Website www.aamllc.com

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Advanced Asset Management
4555 Wilson Ave SW, Suite 2
Grandville, MI 49418

Phone: (616) 531-5220
rvansurksum@aamllc.com