Thanks to endless rain and historic flooding that has stretched on for months, many farmers have not been able to plant crops at all, and a lot of the crops that have actually been planted are deeply struggling. What this means is that U.S. agricultural production has the possibility of being way, way down this year.Continue reading “Climate Change Affecting Crops in 2019”
A recent Bloomberg article titled “The Global Growth Hotspots of the Future Are Here” discussed an HSBC report which advises that investors need to focus on the growth of cities in the Emerging Markets. (1)
“While wealthier countries are more urbanized today, the proportion of urban to rural dwellers in emerging markets is expected to climb to 63 percent in 2050 from 50 percent now, according to the study, which draws on research by McKinsey and the United Nations.Continue reading “Global future growth… and Climate Change”
Several recent studies show peoples number one fear is running out of money during retirement.
To prepare us for retirement the government gives workers the ability to set up qualified accounts in order to save for retirement and get tax deferred growth. By deferring taxes money saved can grow faster. You put money away, not paying taxes now, but paying taxes on the money when you pull it out during retirement.Continue reading “RMD: What are the Risks and How Can We Address Them?”
In the Fall of 2018, equity markets sold off.
What was the cause?
Widespread view among economists was an expectation of slowing economic growth in 2019 and a Federal Reserve led by Chairman Jay Powell that was expected to continue to raise rates three more times in 2019.
As anxiety and stress built up in November and December, markets dropped. Between October 3 and October 29 the SP500 fell 9.7%. Between October 29 and December 7 the market bounced around rising 6.5% only to give it back and to fall .3%. However, in the weeks before Christmas, December 7 to December 24 the market fell another 10.7%. Showing the rapidness of the decline, on Christmas Eve the SP500 fell 2.6%.Continue reading ““Data Dependent” Fed Changes Course and Markets React”
Its no secret that human longevity has been growing due medical advances over the past 30 years. Life expectancy in 1960 was 66 for men and 73 for women; in 2010 the average expectancy was 80 for men and 84 for women. (1)
However, in addition to longevity, one of the issues people have struggled with is a decreased quality of life in a person’s later years. Chronic diseases play a major role in limiting peoples experience and inflicting pain on the elderly and their families… cancer, strokes, dementia, respiratory, Parkinson’s, Alzheimer’s.
These issues not only reduce a person’s enjoyment of life but affect their financial health as well. The expenses associated with medical care and long-term care are substantial. But baby-boomers are not sitting still…Continue reading “The Benefits to a Healthy Diet: Quality of Life, Financial Security and Legacy”
“Current Bull Market Continues To Climb A ‘Wall of Worry’” (1)
The “wall of worry” is one of the phrases frequently used to illustrate the resistance or fear of investors to invest in a stock market that had earlier gone down. Since the Great Recession of 2008 and the financial crisis many investors have worried about the possibility of another financial crisis.
On October 3rd, 2018 the 10-year yield moved dramatically higher increasing 3.3% in a single day. Pundits have listed many reasons for rates and bond yields to move higher… a strengthening economy, decreasing unemployment, rising oil prices signaling inflation, a Federal Reserve committed to further rate increases into 2019. (3)
These pressures have been building for some time and signal a good economic environment.
I have had several clients ask about what impact the proposed trade tariffs might have on their retirement plans.
On June 19th, 2018 the S&P 500 sank the most in three weeks with industrial companies getting hit hardest after President Donald Trump threatened tariffs on another $200 billion of Chinese goods, and the Asian nation pledged retaliation. (1)
How much income are we going to need in retirement?
How do we make sure we don’t outlive the money that we have saved?
Every person’s retirement needs are different, but even within the variability, we all have several expectations in common.
I recently talked to a client who is 50 years old and has $75,000 in student loan debt that they do not seem to be making any headway to eliminate. It illustrates a huge issue many people are facing as they approach retirement.
In 2018 student loan debt totaled $1.5 trillion… Student loans are unique in terms of unsecured debt in that the government can take extreme measures to recover defaulted student loans, including seizure of tax refunds and garnishment of wages. (1)(4)
In addition, the government can also garnish up to 15% of a person’s social security check to pay back defaulted student loans. For most American’s Social Security makes up the bulk of their retirement income. Loss of part of the income can have a catastrophic effect on a house hold.