AAM April 2022 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 rallied in March despite current headwinds including the conflict in Ukraine, rising inflation and rising interest rates.

Index performance                                       MAR 2022____    YTD 2022_

  • The S&P index                                 +3.58%                 -4.95%
  • Dow Jones industrial 30                +2.32%                 -4.57%
  • The NASDAQ Index                         +3.41%                 -9.10%
  • The Russell 2000 Small cap          +1.08%                -7.80%
  • EAFE International Index              +0.52%                -6.46%
  • The US Dollar                                   +1.66%                 +2.90% 
  • Oil                                                       +4.76%                 +33.33%
  • Gold                                                    +1.66%                 +6.11%
  • 10-Year Treasury Yield                   2.32%                   1.50% on 12/31/2021
  • 30-Year Treasury Yield                   2.44%                   1.91% on 12/31/2021                   

Volatility remained high in March for the S&P 500 index.  The index began at 4,374, fell to a low of 4,171 on 3/8 then rose to a high of 4,632 on 3/28 before ending the month at 4,530 for a difference of 461 points or about 11.0% from low to high.

Technology stocks led the way higher while small cap and international stocks lagged the US large cap indexes.

Oil, gold and the US dollar were all higher again in March.

Markets regained a portion of 2022’s losses in March with the major indexes all climbing out of correction territory.  Many obstacles still remain for the markets and I expect volatility to continue into the second half of 2022 and possibly through year end.  I believe inflation will begin to settle down in the coming months and hopefully finish the year in the 4-6% range rather than the recent 8.5%.  Only time will tell and I think the best defense is to stay diversified and rebalance when the market gives us an opportunity to do so.

There was a slight yield curve inversion in March with the 2-year treasury rate rising above the 10 year treasury rate.  This can sometimes signal a recession but is far from an accurate predictor.  Also, don’t be afraid of a recession or let it scare you out of your long-term investment plan.  It may be the medicine that gets us out of the inflation problem we are currently experiencing.  A short and mild recession could be a good thing.

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.
Jobs – The March payroll report came in slightly below expectations adding 431,000 jobs, unemployment fell to 3.6% and average hourly earnings matched estimates gaining 0.4%.
Housing Prices – Both Shiller and FHFA home prices rose with Shiller rising more than expected.
Housing starts –Housing starts rose and beat estimates while building permits fell and missed expectations.
Existing home sales – Fell and missed estimates.
GDP – 4Q GDP final estimate was a little less than expected at 6.9%.
Retail Sales – Rose but missed estimates.
Leading indicators – Rose back into positive territory.
Durable goods orders – Fell and missed estimates.
Inflation data was higher – consumer prices rose more than expected, producer prices rose a little less than expected but remain high, import and export prices both rose while PCE prices rose more than expected at 0.6%.

For weekly market updates please visit my blog at www.aamllc.com  

Mortgage Rates
Mortgage rates continued much higher again last month.   The national average on mortgage as per Bloomberg.com shows the 15-year rate is now at 4.30% and the 30-year rate is at 5.06%. These rates are as of 4/15/2022 and may include points.   

CD Rates
CD rates were higher as well 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 @ 0.90%           1-Yr CD @ 1.50%

2-Yr CD @ 2.40%            5-Yr CD @ 2.80%

Tips and Suggestions

It’s IRA season now and you have until tax filing (4/18) to make your 2021 contributions.  If you are under 50 years old you can contribute $6,000 and if you are 50+ in 2021 you can contribute $7,000.  Consider making a Roth or a traditional IRA contribution and income limits may apply so let’s talk if you are not sure what to do.

The next quarterly estimated tax payments are due 04/18/2022 for the 1st quarter of 2022.  Go to www.IRS.gov to make your payment today (if needed).

It is time to start planning for 2022!  What would you like to accomplish next year?  How much to you want to save and home much do you need to save to reach your financial goals? 

Develop a 2022 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 diversified mix of income funds 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

The website has a new look!  Check it out!

Social Security Tips – March 2022
http://aamllc.com/social-security-tips-march-2022/

Set Yourself Up for Financial Freedom
http://aamllc.com/set-yourself-up-for-financial-freedom/

Roth or Regular (Traditional) IRA – Which is Best for Me?
http://aamllc.com/roth-or-regular-ira-which-is-best-for-me/

Can Anyone Convince Kids to Save Money?
http://aamllc.com/can-anyone-convince-kids-to-save/

Defining Smart Contracts and Their Role in Cryptocurrency’s Future
http://aamllc.com/defining-smart-contracts-and-their-role-in-cryptocurrencys-future/

Defeat the Dreadful Forces of Inflation
http://aamllc.com/defeat-the-dreadful-forces-of-inflation/

Murphy’s Law : Don’t Let it Derail you in 2022
http://aamllc.com/murphys-law-dont-let-it-derail-you-in-2022/

Defeat the Dreadful Forces of Inflation
http://aamllc.com/defeat-the-dreadful-forces-of-inflation/

Don’t Gamble With Your Future
http://aamllc.com/dont-gamble-with-your-future/

What Do You Need Most in 2022?
http://aamllc.com/what-do-you-need-most-in-2022/

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