AAM Newsletter – September 2021

September 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 were higher in August on mostly positive economic data and positive corporate earnings.

Index performance                                       Aug 2021____    YTD 2021_

  • The S&P index                                 +2.90%                 +20.41%
  • Dow Jones industrial 30                +1.22%                 +15.53%
  • The NASDAQ Index                         +4.00%                 +18.40%
  • The Russell 2000 Small cap          +2.13%                +15.14%
  • EAFE International Index              +1.45%                +10.51%
  • The US Dollar                                   +0.58%                 +3.04% 
  • Oil                                                       -7.37%                 +41.18%
  • Gold                                                    +0.14%                 -4.38%
  • 10-Year Treasury Yield                   1.30%                   0.92% on 12/31/2020
  • 30-Year Treasury Yield                   1.92%                   1.65% on 12/31/2020                   

Volatility remained low in August for the S&P 500 index.  The index began at 4,395, slipped to a low of 4,387 on 8/2 and then rallied higher to 4,522 at month end for a difference of 135 points or about 3.00% from low to high.

Technology stocks lead the way in August while value stocks under-performed.

Gold and the US Dollar were moderately higher while oil was solidly lower.

Stocks continue to grapple with higher inflation and increasing Covid cases versus positive (but slowing) economic and corporate data. September could be volatile depending on what data points the markets decide to pay more attention to.  Any weakness could be a good buying opportunity in my opinion.

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 fell and missed expectations but remains strong.
Jobs – The August payroll report came in well below expectations adding 235,000 jobs, unemployment fell to 5.2% matching estimates and average hourly earnings were 0.6% 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 expectations while building permits rose and beat estimates.
Existing home sales – Rose and beat estimates.
GDP – 2Q GDP 2nd estimate came in at +6.6% matching estimates.
Retail Sales – Fell more than expected.
Leading indicators – Rose and beat estimates.
Durable goods orders – Fell and missed expectations.
Inflation data continued to be solidly higher – producer prices rose more than expected, consumer prices rose and matched, import prices and export prices both rose while PCE prices rose and matched expectations.

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 2.61% and the 30-year rate is at 3.25%. These rates are as of 9/9/2021 and may include points.   

CD Rates
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 @ 0.05%           1-Yr CD @ 0.15%

2-Yr CD @ 0.40%            5-Yr CD @ 1.10%

Tips and Suggestions

The next quarterly estimated tax payments are due 09/15/2021 for the 3rd quarter of 2021.  Go to www.IRS.gov to make your payment today (if needed).

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? 

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.

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

If you have a child attending college next 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.

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 – June 2021
https://www.aamllc.com/social-security-tips-june-23-2021/


Shouldn’t My Social Security Check be Enough?
https://www.aamllc.com/shouldnt-my-social-security-check-be-enough/

Your Money: Put it to Work for You
https://www.aamllc.com/your-money-put-it-to-work-for-you/

Jargon – Code Language for Investing
https://www.aamllc.com/jargon-code-language-for-investing/

Invest in the Stock Market …  On the Installment Plan
https://www.aamllc.com/invest-in-the-stock-market-on-the-installment-plan/

Summer Jobs Can Be Key to Financial Success
https://www.aamllc.com/summer-jobs-can-be-key-to-financial-success/

Schools Urged to Offer Finance Lessons
https://www.aamllc.com/schools-urged-to-offer-finance-lessons/

What Young Adults Need to Know Before Leaving Home
https://www.aamllc.com/what-young-adults-need-to-know-before-leaving-home/

When is the Right Time to Retire?
https://www.aamllc.com/when-is-the-right-time-to-retire/

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.

“Like” AAM on www.facebook.com/AAMLLC
Follow me on www.twitter.com/aamllc
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