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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®
Please see below for financial articles and tips
Stocks were mixed in May as markets digest higher inflation and interest rates versus higher corporate profits, vaccinations and economic activity.
Index performance May 2021____ YTD 2021_
- The S&P index +0.55% +11.93%
- Dow Jones industrial 30 +1.93% +12.82%
- The NASDAQ Index -1.53% +6.68%
- The Russell 2000 Small cap +0.11% +14.89%
- EAFE International Index +3.48% +10.77%
- The US Dollar -1.39% +0.10%
- Oil +4.31% +36.69%
- Gold +7.65% +0.14%
- 10-Year Treasury Yield 1.59% 0.92% on 12/31/2020
- 30-Year Treasury Yield 2.27% 1.65% on 12/31/2020
Volatility was fairly low in May for the S&P 500 index. The index began at 4,181, rose to a high of 4,232 on 5/7, dropped to a low of 4,063 on 5/12 before drifting higher to 4,204 at month end for a difference of 169 points or about 4.15% from low to high.
International stocks led the way with US value stocks also making strong gains. Technology stocks stumbled.
The US dollar continued lower while oil and gold surged higher for the second straight month.
Stocks seem to be looking for a direction now that higher inflation and higher interest rates are dominating the discussions. This is why we stay diversified!
Please contact me if you have questions or simply just wish to talk about your plan. I can meet you in my office or virtually over the computer and I am here to help!
Recent US Economic Data
US Manufacturing – ISM manufacturing rose and beat expectations.
Jobs – The May payroll report came in below expectations (again, but still pretty good) adding 559,000 jobs, unemployment fell to 5.8% and average hourly earnings were 0.5% higher and beat expectations
Housing Prices –Both Shiller and FHFA home prices rose with Shiller home prices beating expectations.
Housing starts – Housing starts fell and missed while building permits rose and matched estimates.
Existing home sales – Fell and missed estimates.
GDP – 1Q GDP 2nd estimate came in at +6.4% matching estimates.
Retail Sales – Flat and missed estimates.
Leading indicators – Rose and beat expectations.
Durable goods orders – Fell and missed expectations.
Inflation data was solidly higher – producer prices rose more than expected, consumer prices rose more than expected, import prices and export prices both rose while PCE prices rose and beat expectations.
For weekly market updates please visit my blog at www.aamllc.com
Mortgage rates were higher over the last month. The national average on mortgage as per Bloomberg.com shows the 15-year rate is now at 2.64% and the 30-year rate is at 3.28%. These rates are as of 6/10/2021 and may include points.
CD rates were 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 @ 0.04% 1-Yr CD @ 0.10%
2-Yr CD @ 0.15% 5-Yr CD @ 0.65%
Tips and Suggestions
The next quarterly estimated tax payments are due 06/15/2021 for the 2nd 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.
Work on Your Financial Plan:
View Your Schwab Accounts: www.schwab.com
Check your risk tolerance:
All articles are now found on my website blog: www.aamllc.com
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What Young Adults Need to Know Before Leaving Home
When is the Right Time to Retire?
Gifts that keep on Giving
Follow Maslow’s Theory – Based your spending on his “Hierarchy of Needs”
Age 60 and Feeling Broke?
Do Today’s Kids Know the Value Of Everything They Take for Granted?
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.