Since we may have been conditioned to expect crashes, here is my “two cents” on the situation. Crashes rarely ever come when most people are asking about them. For example, how many people were asking about the looming housing crash in 2005? In fact, most of my clients were asking why we weren’t riding the real estate boom and what funds are available to invest in that specialized in real estate. People tend to forget that leading up to the tech bubble of 2000, lots of people were quitting their jobs to become day-traders in this new sector called internet commerce. Etoys.com (no longer in business) was going to revolutionize Christmas shopping and people HAD to have that stock. What could go wrong?
To say that the Trump Administration has been a volatile one would be sugar-coating it. I would estimate that when President Trump was elected, about 55% of U.S. citizens were devastated, 25% were curiously optimistic, and 20% were elated. That last group included what I consider to be the 5% of those who are diehard capitalist and the people who “run the money” when it comes to the markets. The stock markets, in general, have reacted very positively to this new administration.
The weather is breaking and spring is in full bloom – people are starting projects to update and freshen up their homes. Over the last two months, I’ve made numerous trips to Home Depot in my own attempts to “do it myself.” DIY projects are usually a result of trying to save time or money, or utilize your skills. Some jobs we may choose to take on ourselves; others need a professional’s help. No matter the project, we generally assess the task to determine whether we can DIY or need assistance. I see finances in the same light, and ironically, it comes down to roughly the same three questions. Do I have the time to put in the research? Am I willing to pay advisory fees? How difficult is the financial task I’m trying to accomplish? The following is a list with regard to your finances which, in my opinion, could be DIY – or, they may require investment in expert help.
I have been reading for the last ten years that by 2035, the Social Security program will have to go through potential massive reduction in payout to stay solvent. This is an excerpt from the Social Security Administration:
The spring season is upon us, and with it comes a few things we can count on: the mud, the sun coming up as we get out of bed, and the sudden itch to look for a new house. When it comes to someone’s ability to purchase a home, the main factor often revolves around the mortgage payment. Usually, that payment is going to be dependent upon the current interest rates that are available in the market.
We are pressing forward into 2017, which I personally believe is going to be a great year! Although we were recently pummeled with snow, freezing rain, and winds that moved my kids trampoline from our backyard into our neighbor’s front yard, the two things that I can guarantee as a financial advisor are:
Roughly two months have passed since the election, and things appear to have calmed down. The chance for an overturn of the voting results looks very minimal with the inauguration of President Elect Trump around the corner. Agree with him or not, the stock market has made a move higher, as assumed economic growth policies are igniting hope in the hearts of investors. Whether these “policies” become real is yet to be determined; but, truth and time tell all. In my previous article, I referenced that the last time Republicans controlled Congress, the Senate, and the Oval Office was in 1928. Back then, the market shot higher for roughly a year before entering the Great Depression. I do not believe that history always repeats itself, but it does tend to rhyme.
With the election recently behind us, there are those still saddened by the results and those who are elated. I am hoping we’ll all find common ground as Americans and move forward together. Like it or not, we now have what I consider a Quasi Republican President, a Republican-controlled Senate, and a Republican-controlled House of Representatives.
Since the downturn in 2008 and the bankruptcy of General Motors in 2009, many employers have discontinued defined benefit plans – commonly referred to as pensions. Many have either discontinued the plans or have frozen them as “cost saving” measures. Others have replaced these costlier plans with the less expensive 401k plans. A 401k is a way for employers to put money into a retirement plan, but only if the employee also contributes to the plan. These contributions are often referred to as “matching contributions” and come in all shapes and sizes. Some forward-thinking employers have also added a very valuable feature to their 401K plans called a “Roth 401k” Option.
As a result of this year’s market volatility and the unexpected news of Great Britain leaving the Eurozone, I’ve recently been approached by multiple people regarding the merits of having gold or goldminers as a part of their investment portfolio. I will make this very clear: the answer to this question is very situational and depends drastically on each individual’s goals, risk tolerance and time horizon. I would like to make a few simple observances regarding this decision.
As a father of two very active daughters ages 12 and 10, I’m always looking for things to keep my family engaged while trying to fully experience Genesee County. We are very fortunate to have so many unique local attractions, many of which are provided at no or little cost to the community and offer families opportunities for healthy experiences. At this point in the summer, most people have overextended their budgets with vacation costs. As well, they may have forked over a pile of money getting the kids ready to go back to school. I wanted to list a handful of local end-of-summer activities that are both rewarding and easy on the budget.
When it comes to this year’s financial markets, a few words may come to mind: volatile, frustrating, confusing, uncharted territory. All are very fitting when used to describe a market that began the first three weeks with a record-setting “worst start to the year ever” as reported by Bloomberg.com. This start of 2016 was met by a relentless move back to the year’s highs as Janet Yellen, Federal Reserve Chairwoman, signaled that she wouldn’t be raising rates as often as she had originally intended. The recent “Brexit” referendum that parted Great Britain from the European Union caused a two-day, 800+ point sell-off in the Dow Jones Industrial Average** only to be met by another relentless move back to the highs of the year. The move higher was attributed to many things; but in my opinion, the move by our British friends has made it almost impossible for Janet Yellen to raise rates any time within the next year or so.
