Weekly Economic Update for November 26, 2018

/in /by

In this week’s recap: a gain in existing home sales, a dip for consumer sentiment, more pain for the oil sector, and more losses for the big three.

Weekly Economic Update

 

Presented by JB Beckett, November 26, 2018

 

SUDDENLY, MORE HOMES SELL

Existing home sales improved in October for the first time in seven months. The National Association of Realtors announced a 1.4% monthly increase, while also noting that the annualized sales pace was 5.1% slower than it had been 12 months earlier. Across the year ending in October, the median sales price for an existing home rose 3.8%. There were 4.3 months of housing inventory listed last month, corresponding to the definition of a “tight” market among real estate professionals.

1

     

AT THANKSGIVING, CONSUMER SENTIMENT WEAKENS

In its final November edition, the University of Michigan’s consumer sentiment index fell to a mark of 97.5, 1.1 points under its final October level. Analysts polled by Refinitiv anticipated a reading of 98.3. In March, the gauge reached a 14-year peak of 101.4; it has trended downward since.

2

    

WHEN WILL OIL RECOVER?

Next week? Next month? Last week, the commodity lost value again, slumping 7.7% on Friday alone (albeit in thin, post-Thanksgiving trading) to a NYMEX settlement of $50.42. That left light sweet crude 34% below its close on October 3. Oil industry analysts widely believe that OPEC will announce supply cuts at its December 6 meeting.

3

    

A SHORT WEEK BRINGS SIGNIFICANT DESCENTS

Oil’s troubles also affected equities, which were already hindered by investor pessimism in the days near Thanksgiving. The S&P 500 stumbled 3.79% across an abbreviated trading week, down to 2,632.56 at Friday’s closing bell. Thanksgiving week also saw the Dow Industrials slide 4.44% to 24,285.95. The Nasdaq Composite lost 4.26% in three-and-a-half trading sessions to fall to 6,938.98.

4

     

 

T I P   O F   T H E   W E E K

 

If your college student has a chance to enter

a work-study program

, you may worry that the part-time job and the course load will prove too much to handle. Most work-study programs set reasonable limits on the hours students work, however, and the job experience can help build your student’s resume.

 

 

THIS WEEK

On Monday, nothing major is scheduled. | The Conference Board’s November consumer confidence index appears Tuesday, plus earnings from Cracker Barrel, Salesforce, and Stein Mart. | Federal Reserve Chairman Jerome Powell delivers a speech on monetary policy in New York on Wednesday, shortly before the closing bell; investors will also interpret the latest new home sales report from the Census Bureau, the second estimate of Q3 GDP, and earnings news from Burlington Stores, Chico’s FAS, Dick’s Sporting Goods, Guess, La-Z-Boy, J.M. Smucker, and Sportsman’s Warehouse. | Thursday, minutes from the most recent Federal Reserve policy meeting arrive, along with October consumer spending figures, the NAR’s October pending home sales report, a new initial jobless claims report, and earnings from Abercrombie, Dell Technologies, Dollar Tree, Express, GameStop, HP, Kirkland’s, and TD Bank. | Friday, the G20 summit starts in Buenos Aires, and with it, the possibility of renewed trade talks between the U.S. and China.

 

 

Q U O T E  O F  T H E  W E E K

 

“Sometimes the questions are

complicated

, and the answers are

simple

.”

Theodore Seuss geisel

 

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

-1.75

3.09

10.24

18.76

NASDAQ

0.52

0.72

14.77

37.14

S&P 500

-1.54

1.16

9.17

20.91

 

 

 

 

 

REAL YIELD

11/23 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

1.09

0.50

0.56

3.11

 

Sources: ft.com, bigcharts.

com, treasury.gov – 11/23/18

5,6,7,8

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

 

 

T H E   W E E K L Y   R I D D L E

 

What 

two things

will you never eat for dinner?

 

LAST WEEK’S RIDDLE: What goes back and forth all the time while keeping time, causing a bit of noise only some of the time?

ANSWER: A pendulum.

 

 

JB Beckett may be reached at (803) 939-4848 or jb@beckettfinancialgroup.com 

BeckettFinancialGroup.com

 

Know someone who could use information like this?

Please feel free to send us their contact information via phone or email. (Don’t worry – we’ll request their permission before adding them to our mailing list.)

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs, or expenses. Investors cannot invest directly in indices. All economic and performance data is historical and not indicative of future results. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is a market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx® , and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

CITATIONS:

1 – bloomberg.com/news/articles/2018-11-21/u-s-existing-home-sales-rise-for-first-time-in-seven-months [11/21/18]

2 – cnbc.com/2018/11/21/consumer-sentiment-final-november-reading.html [11/21/18]

3 – cnbc.com/2018/11/23/oil-prices-slump-to-their-lowest-level-of-2018-even-as-opec-considers-cuts.html [11/23/18]

4 – markets.ft.com/data/world [11/23/18]

5 – markets.wsj.com/us [11/23/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F24%2F17&x=0&y=0 [11/23/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F24%2F17&x=0&y=0 [11/23/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F24%2F17&x=0&y=0 [11/23/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F22%2F13&x=0&y=0 [11/23/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F22%2F13&x=0&y=0 [11/23/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F22%2F13&x=0&y=0 [11/23/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F24%2F08&x=0&y=0 [11/23/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F24%2F08&x=0&y=0 [11/23/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F24%2F08&x=0&y=0 [11/23/18]

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/23/18]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/23/18]

 

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Perspectives Monthly Lifestyle eNewsletter for December, 2018

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Beckett Financial Group      825 Meeting Street, West Columbia, SC 29169      BeckettFinancialGroup.com

(803) 939-4848

JB Beckett

JB@BeckettFinancialGroup.com

JB Beckett presents:

 

SMART TIP:

Did you know that fruit “drinks,” “cocktails,” and “beverages” may only contain 5-15% fruit juice? Often, these drinks are loaded with added sugars as well.

 

WHO SAID IT?

“I like to listen. I have learned a great deal from listening carefully. Most people never listen.”

 

[GET THE ANSWER]

 

TEST YOUR

KNOWLEDGE:

Q:

Across the 12 months ending in October, wages grew at an annualized pace not seen in nine years. How much did they increase?

 

A)

2.0%

B)

3.1%

C)

3.8%

D)

5.1%

 

[GET THE ANSWER]

 

 

December, 2018

More Warmth for the Money

Tips to help you stay snug in the winter for less.

[CLICK TO READ]

 

 

Making Your Savings Last for Life

Three little adjustments might help.

[CLICK TO READ]

 

 

Rock

Out

In at the Gym

Why you might love indoor climbing, especially in the winter.

[CLICK TO READ]

 

 

Recipe of the Month

Creamy Bacon Leek Soup – A warm winter treat

[CLICK TO READ]

 

More Warmth for the Money

Tips to help you stay snug in the winter for less.

 

Is your heating bill too large? There are some measures you can take (both digital and analog) that might help you heat your house for less. For free, you can open drapes to let more solar heat in during the day (it helps if your windows are clean), and you can lower the temperature setting on your water heater to around 120°. You can lower the thermostat a couple of degrees, move pieces of furniture away from the radiators and vents you placed them near in the summer, and keep the flue on your fireplace closed when you are not having a fire. For $15 or less, you can install a nylon door sweep, a door snake, clear plastic film for window panes, or rope caulk for frames. You can also pick up a new furnace filter for about $15 (and the per-filter cost drops way down when you buy them in bulk).

 

A first-rate, programmable thermostat may help you cut your heating bills by 10-20% alone. The genius of a programmable thermostat is that it lets you set different temperatures for your house or apartment at various times of the day. You can set it lower in the hours when you sleep; higher in your waking hours. Some programmable thermostats allow up to four different temperature settings per day, and they come with override switches.

1

 

 

Making Your Savings Last for Life

Three little adjustments might help.

 

For decades, people approaching or entering retirement have had a common anxiety: a worry about outliving their money. Even good savers with long histories of contributing to retirement plans share it. While the risk may be higher for some than others, there are some very basic things households can do that might help retirement money stretch a bit further.

 

Take retiring to a less expensive metro area or a smaller city. Personal finance website SmartAsset analyzed how far $1 million in retirement savings would go in certain metro areas. In New York City, the answer was 10.5 years; in San Francisco, 12.7 years. Contrast that with Phoenix (25+ years) and San Antonio (27 years). Another cost saver: reduce the entertainment budget. Retirement means more leisure time and a daily opportunity to dine out and splurge. According to the Employee Benefit Research Institute, Americans aged 65-74 spend an average of $5,832 on eating out, entertainment, and other leisure pursuits per year. Also, too many households do not budget in retirement, and without a budget, money can mysteriously leak out of a retirement fund over time. Even those who do budget may forget to set aside some money for the probabilities of home upkeep and car repair.

2

 

 

Rock

Out

In at the Gym

Why you might love indoor climbing, especially in the winter.

 

If you like to exercise outdoors, you may feel pent up when you are in the gym for your winter workouts. To counter this feeling, look up. If your gym has a climbing wall (or you can find one that does), you may get a workout with a sense of exploration and “outdoor” activity that you will never experience on a Stairmaster.

 

Indoor climbing is less scary than many gymgoers think. Most gyms with climbing walls provide beginner and intermediate classes covering technique, commands, belaying, proper falls, and more. (A soft, padded floor is at the base of the wall.) Not only that, shoes, harnesses, clips, and chalk bags are readily available to rent. Many gyms use auto-belays with automatic braking systems, which means you do not need a climbing partner; the auto-belay will gently guide you down if you feel tired or feel like you are too high up. Novice climbers may perceive indoor climbing or bouldering as an upper-body workout; in fact, it also tests the legs, feet, and core. So if you are feeling some winter blues and the great outdoors seems out of reach, go ahead and climb the walls.

3

 

 

 

 

Recipe of the Month

Creamy Bacon Leek Soup

A warm and hearty winter treat!

 

Ingredients:

3 lbs. baking potatoes

1/3 lb. smoked bacon

1 lb. cheddar cheese

6 cups chicken broth

2 medium leeks

1 cup heavy cream

1 small onion

1 clove garlic

3 Tbsp. butter (unsalted)

1/2 cup one-to-one, gluten free flour

1/2 tsp. sea salt

1/3 tsp. ground black pepper

3 Tbsp. scallions (as garnish)

 

Begin by preparing your ingredients. Wash leeks, peel away the first few outer layers, trim and chop. Peel potatoes and cube. Chop onion. Mince garlic. Shred cheese, and slice scallions, thinly. Set aside.

 

In a very large saucepan, fry bacon over high heat until crisp, place on paper towel, then drain all but 3 tablespoons of drippings. Reduce heat to medium, return pan to heat, and add butter. Once butter has melted, stir in leeks, onion, and garlic, then sauté until softened (approximately 4-6 minutes). Continue to stir as you gently pour in half of the chicken broth, then stir in flour, then the remaining broth. Continue to stir until thoroughly mixed.

 

Increase to high heat and add cubed potatoes. Allow the mixture to come to a boil, then simmer over low heat until potatoes are tender (approximately 12-17 minutes).

 

In a separate bowl (large, heat safe) mix cheese with several full ladles of hot soup. Stir until thoroughly blended, then add cheese mixture to saucepan and increase heat to medium.

 

Finally, maintaining a continuous stir, gently add cream, sea salt, and pepper, allowing the soup to come nearly to a boil, then remove from heat.

 

Chop cooked bacon and sprinkle over the top of each bowl, along with scallions and shredded cheese, as you serve.

 

 

JB Beckett may be reached at

(803) 939-4848 or jb@beckettfinancialgroup.com

BeckettFinancialGroup.com

 

WHO SAID IT?

 

Ernest Hemingway

 

TEST YOUR KNOWLEDGE ANSWER:

A:

 B, 3.1%.

4

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.

 

 

Citations

.

1 – thisoldhouse.com/ideas/keeping-warm-less [11/6/18]

2 – usatoday.com/story/money/columnist/2018/10/28/retirement-budget-spending-tips-avoid-running-out-money/1748978002/ [10/28/18]

3 – health.com/fitness/beginner-rock-climbing [10/5/18]

4 – marketwatch.com/story/economists-say-wow-to-jobs-report-as-wage-growth-picks-up-2018-11-02 [11/2/18]

 

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Weekly Economic Update for November 19, 2018

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In this week’s recap: a bit more inflation pressure, a big fall retail sales gain, another setback for light sweet crude, and a down week on Wall Street.

Weekly Economic Update

 

Presented by JB Beckett, November 19, 2018

 

IN OCTOBER, INFLATION JUMPED THE MOST SINCE JANUARY

The Consumer Price Index rose 0.3% last month, according to the Bureau of Labor Statistics. This was the largest monthly gain for the headline CPI since its 0.5% move in the first month of the year. A 3.0% leap in gasoline prices played a significant role. Core consumer inflation, which does not include volatile food and energy costs, increased by 0.2% in October.

1

     

RETAIL SALES RISE 0.8%

Consumers certainly entered fall in a buying mood. Even with car and truck sales factored out, the gain was still 0.7% in October, and that left overall U.S. retail purchases up 4.6% year-over-year. In September, retail purchases tailed off 0.1% (the Department of Commerce first reported a 0.1% advance).

2

    

WTI CRUDE FALLS INTO A BEAR MARKET

Oil’s fourth-quarter slide continued last week. Friday, light sweet crude ended the week at $56.46 on the New York Mercantile Exchange after its price slid 6.2% across five trading sessions, hitting a 12-month closing low of $55.69 on Tuesday. The commodity is now on a 6-week losing streak.

3

    

MAJOr INDICES RETREAT

Investors were left cold by some of last week’s key earnings reports, and the significant October inflation advance seemed to provide additional substantiation for a year-end Federal Reserve interest rate hike. The S&P 500 lost 1.61% in five days, falling to 2,736.27 at Friday’s closing bell.  It fared better than both the Dow Industrials and Nasdaq Composite; last week, the blue chips slumped 2.22% to 25,413.22, while the tech-heavy benchmark dipped 2.15% to 7,247.87.

4

    

 

T I P   O F   T H E   W E E K

 

Did you know

mortgage rates fluctuate daily

during the week? If you are looking for a home loan, be sure to assess the terms of different loans on the same day. If you finalize negotiations on a loan, ask your lender to lock in the terms.

 

 

THIS WEEK

Agilent Technologies, Intuit, Jack in the Box, and Urban Outfitters present earnings on Monday. | Analog Devices, Barnes & Noble, Best Buy, BJ’s Wholesale Club, Campbell Soup, Foot Locker, Gap, Hormel Foods, Kohl’s, Lowe’s, Medtronic, Ross Stores, Stage Stores, Target, and TJX all announce earnings on Tuesday; in addition, the Census Bureau releases a report on October housing starts. | Wednesday sees the release of the final November University of Michigan consumer sentiment index, the October existing home sales report from the National Association of Realtors, the October leading indicator index from the Conference Board, and a new monthly report on capital goods orders from the Census Bureau. | U.S. financial markets are closed Thursday in observance of Thanksgiving. | Friday, stock and bond markets reopen for a shortened trading session, with no major economic news or earnings announcements scheduled. 

 

 

Q U O T E  O F  T H E  W E E K

 

“We must learn to be

still

in the midst of activity and to be

vibrantly alive

in repose.”

indira gandhi

 

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

2.81

8.33

11.84

20.72

NASDAQ

4.99

6.69

16.37

38.90

S&P 500

2.34

5.83

10.43

22.16

 

 

 

 

 

REAL YIELD

11/16 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

1.06

0.53

0.53

2.85

 

Sources: wsj.com, bigcharts.com, tre

asury.gov – 11/16/18

4,5,6,7

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

 

 

T H E   W E E K L Y   R I D D L E

 

What goes back and forth all the time while keeping time, causing a bit of noise only some of the time

?

 

LAST WEEK’S RIDDLE: A young man runs away from home. Cheered on by onlookers, he makes three lefts, then finds two masked men ahead of him, but he runs toward them. Can you explain why?

ANSWER: He is rounding the bases in a baseball game and heading toward home plate.

 

 

JB Beckett may be reached at (803) 939-4848 or jb@beckettfinancialgroup.com 

BeckettFinancialGroup.com

 

Know someone who could use information like this?

Please feel free to send us their contact information via phone or email. (Don’t worry – we’ll request their permission before adding them to our mailing list.)

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs, or expenses. Investors cannot invest directly in indices. All economic and performance data is historical and not indicative of future results. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is a market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx® , and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

CITATIONS:

1 – cnbc.com/2018/11/14/us-consumer-price-index-october-2018.html [11/14/18]

2 – investors.com/news/economy/retail-sales-rise-amazon-walmart-ecommerce/ [11/15/18]

3 – marketwatch.com/story/oil-reclaims-more-ground-though-the-sharp-selloff-accounts-for-a-4-weekly-loss-2018-11-16 [11/16/18]

4 – markets.wsj.com/us [11/16/18]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F16%2F17&x=0&y=0 [11/16/18]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F16%2F17&x=0&y=0 [11/16/18]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F16%2F17&x=0&y=0 [11/16/18]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F15%2F13&x=0&y=0 [11/16/18]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F15%2F13&x=0&y=0 [11/16/18]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F15%2F13&x=0&y=0 [11/16/18]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F17%2F08&x=0&y=0 [11/16/18]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F17%2F08&x=0&y=0 [11/16/18]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F17%2F08&x=0&y=0 [11/16/18]

6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/16/18]

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/16/18]

 

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Your monthly Retirement In Sight newsletter for November, 2018

/in /by

Beckett Financial Group      825 Meeting Street, West Columbia, SC 29169      BeckettFinancialGroup.com

(803) 939-4848

JB Beckett

JB@BeckettFinancialGroup.com

Monthly News and Information for Current and Future Retirees

Presented by JB Beckett – NOVEMBER 2018

QUOTE OF THE MONTH

 

“Live life to the fullest.”

ERNEST HEMINGWAY

retirEment PLANNING CONTINUES AFTER YOU RETIRE

It can be easy think of retirement planning as a means to an end: a series of purposeful meetings leading up to a life transition. This transition is not the end of retirement planning. Think of this transition (and the steps preceding it) as the first phase. The second phase focuses on managing your spending, plus enhancing your income and savings.

It may be useful to plan your spending with the “bucket” approach. In this strategy, you withdraw assets from three “buckets” to spend on present-day, near-term, and future needs. The present-day (or short-term) bucket is a bucket of cash, typically from bank accounts or short-duration, fixed-income investments, that complements Social Security and other income sources. This is a liquid resource you can tap for emergency expenses as well as everyday needs. Your second bucket is your near-term bucket, a portion of your retirement savings invested for a mix of growth and income. This bucket could help you finance your vacations, a remodel of your home or yard or a dream that emerges during your “second act.” Your third bucket, a portion of your retirement fund invested mostly with an eye toward long-range growth, can be used to address health care costs (including long-term care expenses). All the while, tweaks can be made to your retirement plan in pursuit of tax efficiency and improved income streams (one may lead to the other). According to Bankrate, 61% of Americans have no idea how much money they will need to save for retirement, and very few have probably considered how they will spend the savings they have once away from work. So the first phase of retirement planning is designed to provide one kind of clarity; the second phase, another.

1

TRAVEL TIP

 

Going abroad? Bring medications and supplements in original packaging.

In other countries, you may end up getting generics rather than brand names, and supplements and vitamins may come in different forms than you expect. Ask your physician for the exact generic names of the drugs you take. 

THE MAY-DECEMBER RETIREMENT CHALLENGE

When one spouse or partner is considerably older than the other, retirement may unfold differently for that couple than it does for others. Most importantly, the younger spouse or partner must realize how self-reliant he or she may need to be decades from now. 

If you are a Gen Xer married to or partnered with a Baby Boomer, the prime challenge may be making your own wealth last until your eighties or nineties. Your spouse or partner may have a greater amount of wealth and retirement savings than you do, but future long-term care or hospital expenses may reduce it to an extent you cannot anticipate. Consider also that you might need to retire earlier than you think, to care or simply be with your spouse or partner if he or she becomes physically or mentally frail. If you can work well into your sixties, this can be a plus, as you can maintain your own income and keep up your own retirement savings effort. If you are in your early sixties and your partner or spouse is in his or her eighties and in need of eldercare, having at least one income can help if your home needs upkeep or if you need to downsize. If you intend to retire together, your loved one may be eligible for Medicare, but you may be without any health insurance for some time (and the average annual premium for individual private health coverage was $6,896 this year, by the estimate of the National Conference of State Legislatures). These matters all deserve consideration before a retirement decision is made.

2

DID YOU KNOW?

 

Sometimes the red planet gets a blanket of white

Snow occasionally falls on parts of Mars. The snow is a bit different than that we know on Earth, however: it is not comprised of water, but carbon dioxide. As a result, there are no snowflakes during a Mars snowfall, only a kind of fog.

3

ON THE

BRIGHT SIDE

At the end of the third quarter of 2018, the average IRA balance was $111,000. That was more than double the average balance of $52,000 in 2008, according to Fidelity Investments.

4

BRAIN TEASER

 

What belongs to you, but is used more by others?

STUMPED? CALL (803) 939-4848 FOR THE ANSWER!

JB Beckett may be reached at (803) 939-4848 or jb@beckettfinancialgroup.com 

BeckettFinancialGroup.com

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.

 

CITATIONS.

1 – investopedia.com/retirement/retirement-planning-doesnt-stop-when-you-retire/ [11/12/18]

2 – washingtonpost.com/business/2018/10/29/retiring-with-big-age-gap-these-couples-share-joys-challenges/ [10/29/18]

3 – mentalfloss.com/life-on-mars-facts [11/12/18]

4 – plansponsor.com/years-positive-retirement-savings-behaviors-lead-record-balances/ [11/5/18]

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Weekly Economic Update for November 12, 2018

/in /by

In this week’s recap: swift service sector expansion, sustained consumer optimism, a surge in wholesale inflation, and gains for equities.

Weekly Economic Update

 

Presented by JB Beckett, November 12, 2018

 

SERVICE SECTOR KEEPS BOOMING

At a lofty October mark of 60.3, the Institute for Supply Management’s non-manufacturing purchasing manager index was a bit lower than the record 61.6 reading seen in September, but it also beat the 59.3 consensus forecast from Refinitiv. Across the 12 months ending in October, the mean reading for the index was a strong 58.5.

1,2

     

IS THIS THE BEST YEAR FOR CONSUMER SENTIMENT SINCE 2000?

It could turn out that way, if the University of Michigan’s influential index maintains its current level. Its preliminary November edition came in at 98.3, slightly below the final October mark of 98.6 and slightly above the 98.0 reading projected in a Bloomberg analyst poll. The gauge has averaged a reading of 98.4 in 2018, a level unseen in the past 18 years.

3

    

WHOLESALE INFLATION JUMPS 0.6% IN A MONTH

Higher costs for fuel and industrial supplies were significant factors, according to the Bureau of Labor Statistics. The PPI rose 2.9% across the 12 months ending in October.

4

    

A NEW MONTH, A NEW DIRECTION FOR STOCKS

In November, the market is doing its best to erase the memory of October. All three major indices advanced again last week, with the Dow Industrials adding 2.84%; the S&P 500, 2.13%; the Nasdaq Composite, 0.68%. At Friday’s close, their settlements were: Dow, 25,989.30; S&P, 2,781.01; Nasdaq, 7,406.90.

5

    

 

T I P   O F   T H E   W E E K

 

If the

terms on one of your credit cards change unfavorably

, you may consider dropping the card. Think twice about doing so. If you have had the account for years and the payment history is good, closing it out could possibly hurt your FICO score. Instead, 

use that card for minor purchases only

.

 

 

THIS WEEK

Monday marks the observance of Veterans Day; the bond market will be closed, but stocks, currencies, and commodities will be actively traded, with no major earnings news scheduled. | Tuesday, earnings roll in from Advance Auto Parts, Aramark Holdings, Bayer, Beazer Homes, Cumulus Media, Home Depot, and

Tyson Foods. | On Wednesday, the latest Consumer Price Index surfaces, and investors also

consider earnings news from Cisco, Griffon, Macy’s, NetApp, NetEase, and Smart & Final. | October retail sales figures appear Thursday, along with a new initial jobless claims report and earnings from America’s Car-Mart, Applied Materials, Energizer Holdings, JCPenney, Nordstrom, Nvidia, Shoe Carnival, Sonos, and Walmart. | Friday, Viacom announces Q4 results.

 

 

Q U O T E  O F  T H E  W E E K

 

“The

best and most beautiful things

in the world cannot be seen or even touched – they

must be felt with the heart

.”

Helen Keller

 

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

5.14

10.77

12.98

19.30

NASDAQ

7.29

9.73

17.80

35.81

S&P 500

4.02

7.60

11.41

20.25

 

 

 

 

 

REAL YIELD

11/9 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

1.15

0.46

0.59

2.84

 

Sources: wsj.com, bigcharts.com, tre

asury.gov – 11/9/18

5,6,7,8

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

 

 

T H E   W E E K L Y   R I D D L E

 

A young man

runs away from home

. Cheered on by onlookers, he makes

three lefts

, then finds

two masked men

ahead of him, but he runs toward them

. Can you explain why?

LAST WEEK’S RIDDLE: It floats when born, lies down when alive, and runs as it dies. What is it?

ANSWER: Snow.

 

 

JB Beckett may be reached at (803) 939-4848 or jb@beckettfinancialgroup.com 

BeckettFinancialGroup.com

 

Know someone who could use information like this?

Please feel free to send us their contact information via phone or email. (Don’t worry – we’ll request their permission before adding them to our mailing list.)

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is a market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx® , and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

CITATIONS:

1 – cnbc.com/2018/11/05/october-ism-non-manufacturing-index.html [11/5/18]

2 – instituteforsupplymanagement.org/ISMReport/NonMfgROB.cfm?SSO=1 [11/5/18]

3 – 247wallst.com/economy/2018/11/09/november-consumer-sentiment-slips-election-impact-negligible/ [11/9/18]

4 – marketwatch.com/story/wholesale-inflation-surges-in-october-to-6-year-high-ppi-shows-2018-11-09 [11/9/18]

5 – markets.wsj.com/us [11/9/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F9%2F17&x=0&y=0 [11/9/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F9%2F17&x=0&y=0 [11/9/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F9%2F17&x=0&y=0 [11/9/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F8%2F13&x=0&y=0 [11/9/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F8%2F13&x=0&y=0 [11/9/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F8%2F13&x=0&y=0 [11/9/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F10%2F08&x=0&y=0 [11/9/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F10%2F08&x=0&y=0 [11/9/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F10%2F08&x=0&y=0 [11/9/18]

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/9/18]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/9/18]

 

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