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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.
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Ronald J. VanSurksum, CFP®
Please see below for financial articles and tips
Stocks dropped again in September as the Federal Reserve continued to be vigilant against inflation and indicated they will continue to raise rates as long as needed.
Index performance Sept 2022____ YTD 2022_
- The S&P index -9.34% -24.77%
- Dow Jones industrial 30 -8.84% -20.95%
- The NASDAQ Index -10.50% -32.40%
- The Russell 2000 Small cap -9.73% -25.86%
- EAFE International Index -9.22% -28.81%
- The US Dollar +3.17% +17.36%
- Oil -10.23% +5.69%
- Gold -3.07% -8.88%
- 10-Year Treasury Yield 3.82% 1.50% on 12/31/2021
- 30-Year Treasury Yield 3.77% 1.91% on 12/31/2021
Volatility was very high in September for the S&P 500 index. The index began at 3955, rose to a high of 4110 on September 12 then fell to the low of 3584 before finishing at 3585 for a difference of 526 points or about 12.80% from high to low.
Stock losses accelerated in September on continued inflation and interest rate concerns. The market is worried that the Fed rate hikes will eventually force the economy into a recession. At this point the market may be right regarding the recession but it could be a relatively small one.
The US Dollar continued its rise with higher treasury bond yields and both Oil and Gold fell.
Expect the volatility to continue on both the downside and the upside through the remainder of this year. This is why we stay diversified. The market usually turns well before things start to feel better so it is important to stay invested.
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 more than expected.
Jobs – The September payroll report came in above expectations adding another 263,000 jobs, unemployment unexpectedly fell to 3.4% and average hourly earnings rose 0.3% and matched expectations.
Housing Prices –FHFA home prices fell and Shiller and home prices rose less than expected.
Housing starts –Housing starts rose and beat estimates while building permits fell and missed expectations.
Existing home sales – Fell but beat estimates.
GDP – 2Q GDP third estimate matched estimates while contracting 0.6%
Retail Sales – Rose and beat expectations.
Leading indicators – Fell and missed estimates (6th straight monthly drop)
Durable goods orders – Fell more than expected.
Inflation data was mixed – consumer prices rose a little more than expected, producer prices fell and matched, both import and export prices fell while PCE prices rose a little more than expected.
For weekly market updates please visit my blog at www.aamllc.com
Mortgage rates continued higher over the last month. The national average on mortgage as per Bloomberg.com shows the 15-year rate is now at 6.07% and the 30-year rate is at 6.89%. These rates are as of 10/07/2022 and may include points.
Short-Term Cash and CD Rates
CD rates continued higher 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 and money market rates as well.
6 mo CD @ 3.89% 1-Yr CD @ 4.20% I-Bonds @ 9.62% (Until the end of October)
2-Yr CD @ 4.35% 5-Yr CD @ 4.45% Schwab Money Market 2.95%
Tips and Suggestions
The next quarterly estimated tax payments are due 1/15/2023 for the 4th quarter of 2022. Go to www.IRS.gov to make your payment today (if needed).
With yields heading up and stocks down 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
Medicare open enrollment begins October 15 until December 7 annually. This is the time to review and update your Medicare supplement or Advantage coverage. Let me know if you need help getting this done. I can introduce you to an expert.
It is time to start planning for 2023! 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 beginning October 1. 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:
View Your Schwab Accounts: www.schwab.com
Check your risk tolerance:
All articles are now found on my website blog: www.aamllc.com
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Failing to Plan could equal Planning to Fail
AAM Second Quarter 2022 Analysis
As Secondary Cash Reserves – I Bonds Make Long-Term Sense
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.