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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®
Please see below for financial articles and tips
Stocks remained volatile in May while ending the month mixed as traders continue to eye inflation, interest rates and Ukraine’s possible impact on future investment returns.
Index performance May 2022____ YTD 2022_
- The S&P index +0.01% -13.30%
- Dow Jones industrial 30 +0.04% -9.21%
- The NASDAQ Index -2.05% -22.78%
- The Russell 2000 Small cap -0.00% -16.98%
- EAFE International Index +2.00% -11.02%
- The US Dollar -1.38% +6.43%
- Oil +9.53% +52.47%
- Gold -3.65% +0.59%
- 10-Year Treasury Yield 2.75% 1.50% on 12/31/2021
- 30-Year Treasury Yield 2.98% 1.91% on 12/31/2021
Volatility remained high in May for the S&P 500 index. The index began at 4,132, rose to a high of 4,300 on 5/4 then fell to a low of 3,810 on 5/20 before settling at 4,132 for a difference of 490 points or about 11.4% from high to low.
Markets are struggling to determine if inflation is peaking or if costs will continue to surge and what the impact will be on business and consumer spending.
Oil prices continued higher while the US Dollar and gold pulled back.
Stocks hit a new low for 2022 before rallying in the last week of the month to finish flat. Look for this to continue until inflation shows signs of slowing.
The 10-year treasury moved above a 3% yield giving savers another option for secondary cash reserve savings. Another good option for savings are I-bonds yielding over 9% which can be purchased through the US Treasury website.
The best way to get through volatile markets is to stick with your plan and stay diversified.
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 rose and beat expectations.
Jobs – The May payroll report came in above expectations adding 390,000 jobs, unemployment was steady at 3.6% and average hourly earnings rose a little less than expected at 0.3%.
Housing Prices – Both Shiller and FHFA home prices rose with Shiller rising more than expected.
Housing starts – Both housing starts and building permits fell and missed expectations.
Existing home sales – Fell and missed estimates.
GDP – 1Q GDP second estimate was lower than expected contracting 1.5%.
Retail Sales – Rose and matched expectations.
Leading indicators – Fell and missed estimates.
Durable goods orders – Rose a little less than expected.
Inflation data continued higher – consumer prices rose more than expected, producer prices rose and matched estimates, import prices were flat, export prices rose while PCE prices rose a little less than expected.
For weekly market updates please visit my blog at www.aamllc.com
Mortgage rates were mixed over the last month. The national average on mortgage as per Bloomberg.com shows the 15-year rate is now at 4.69% and the 30-year rate is at 5.46%. These rates are as of 6/06/2022 and may include points.
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 and I am going to start tracking I-bond rates as well.
6 mo CD @ 1.56% 1-Yr CD @ 2.25% I-Bonds @ 9.62%
2-Yr CD @ 2.85% 5-Yr CD @ 3.20%
Tips and Suggestions
The next quarterly estimated tax payments are due 6/15/2022 for the 2nd quarter of 2022. Go to www.IRS.gov to make your payment today (if needed).
With yields heading up and stocks down 10% to 20% this year it could be a good time to put some excess cash reserves to work. I can manage these dollars for you or give you advice on what type of investments to use based on your goals. Schedule a meeting soon to discuss.
Another good option for cash reserves are I-bonds if you hold the money for 12 months or more. Purchases are limited to $10,000 per year per person. www.treasurydirect.gov
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 2022.
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 get your FAFSA done ASAP. The sooner you fill out your FAFSA the better chance you have for financial aid.
Considering which colleges are the best fit based on your financial circumstances and your child’s academic experience? I have access to a program that can help!
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!
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.
Work on Your Financial Plan:
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All articles are now found on my website blog: www.aamllc.com
The website has a new look! Check it out!
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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.