This week on “Money Talks,” Senior Associate Jarrett McKenzie, CFP®, CWS®, joins Bil Lako, CFP®, and Troy Harmon, CFA, CVA, to discuss the week’s economic news and stock market performance. They cover consumer sentiment, personal income, the ISM Manufacturing Index and discuss how Hurricane Matthew may affect insurance companies and the markets. Jarrett delves into a case study with Bil about the significance of taking your first required minimum distribution from retirement accounts once an investor turns 70 ½. The hosts also answer a listener’s questions on Schwab’s Intelligent Portfolios, including when they might be useful, how they perform in a down market and how they compare to other robo advisers.
Senior Associate, Jarrett McKenzie, CFP®, CWS® delves into a case study with Bil Lako, CFP® about taking required minimum distributions from retirement accounts once an investor reaches age 70 ½.
The markets kicked off the week closing in the red zone with stocks trading lower amid a variety of economic news. The ISM Manufacturing Index hit 51.5, versus consensus expectations of 50.2, indicating manufacturing increased. The reading was up from 49.4 in August. The slip continued on Tuesday. West Texas Intermediate crude oil shed 0.25% to settle at $48.69 a barrel. However, Energy stocks led advancers on Wednesday. Stocks stepped up on rising crude oil prices. West Texas Intermediate crude gained 2.01% to settle at $50.29 a barrel. The ISM Non-Manufacturing Index climbed 5.7 points to 57.1, exceeding expectations. Factory orders also edged up 0.2% in August. Durable goods orders tacked on 0.1% while orders for nondurable goods rose 0.2%. Indices closed with mixed moves on Thursday. The Dow and NASDAQ shed some points while the S&P 500 eked out a fractional gain ahead of Friday’s jobs report. Labor Department numbers showed new jobless claims fell by 5,000 to 249,000 for the week ending October 1. The four-week average declined by 2,500 to 253,500, marking its lowest level since 1973. West Texas Intermediate crude tacked on 1.34% to settle at $50.50 a barrel. Trading closed in red territory on Friday, with stocks slipping on a downtick in oil prices and less-than-optimum employment numbers. West Texas Intermediate crude oil dipped 1.49% to settle at $49.69 a barrel. Meanwhile, Labor Department data showed the U.S. economy added 156,000 jobs in September versus a median estimate of 172,000. The U.S. unemployment rate edged up to 5% from 4.9%.
The “Money Talks” hosts also answer a listener’s questions on Schwab’s Intelligent Portfolios, including when they might be useful, how they perform in a down market and how they compare to other robo advisers.
This week on “Money Talks,” Dr. Gene joins Managing Associate Shawna Theriault, CFP®, C.P.A. and Research Analyst Nick Antonucci to discuss the week’s market news including home sales data, consumer confidence, durable goods and second quarter GDP. Shawna and Gene explore a case study of an average family whose assets could be at risk because they lack a personal liability policy, also known as an umbrella policy. Shawna explains how lacking this coverage could put their financial future at risk. The hosts also address several listeners questions on understanding the fees you pay in your 401(k) and IRA; the S&P 500’s newest Real Estate sector and how the change may affect index funds; a looming restaurant recession and biopharmaceutical company Regeneron Pharmaceuticals.
Managing Associate Shawna Theriault, CFP®, C.P.A., and Dr. Gene explore a case study of an average family whose assets could be at risk because they lack a personal liability policy, also known as an umbrella policy. Shawna explains how lacking this coverage could put their financial future at risk.
The indices traded lower on Monday with many Healthcare stocks leading the downswing on a variety of economic news. New home sales decreased in August. Newly constructed home sales dipped 7.6% to an annual rate of 609,000 units, versus July’s upwardly revised addition of 659,000 units. Sales exceeded consensus expectations of 595,000. The markets rallied on Tuesday with Technology brands leading the way up amid the release of favorable consumer sentiment data. The Conference Board Consumer Confidence Index added 2.3 points to 104.1 in September, a level not seen since August 2007. The result far exceeded an expected reading of 98.8, and was up from 101.8 in August. Stocks rallied alongside a lift in crude oil on Wednesday. West Texas Intermediate crude tacked on 4.52% to settle at $46.69 a barrel. Following a three-day energy meeting in Algeria, the Organization of Petroleum Exporting Countries (OPEC) agreed to reduce oil production to 32.5 million barrels a day in November. Stocks sold off on Thursday, trading lower on a variety of economic news. Gross Domestic Product levels ticked up in the second quarter as the Bureau of Economic Analysis’ third estimate showed real GDP increased 1.4%, slightly above the prior two quarters and prior estimates. Consumer spending tacked on 4.3% over the quarter. Additionally, initial jobless claims climbed with Labor Department figures showing new claims rose by 3,000 to 254,000, while continuing claims decreased by 46,000 to 2.062 million in the week ended September 17. Technology and Financial stocks stepped up on Friday. West Texas Intermediate crude oil also rose, adding 0.29% to settle at $47.97 a barrel. The University of Michigan’s Consumer Sentiment Index hit 91.2 this month versus expectations of a 90 reading. In other items, U.S. personal income increased slightly in August, matching estimates. Bureau of Economic Analysis data showed incomes rose 0.2% last month, versus July’s 0.4% gain.
Our experts address several listeners questions on understanding the fees you pay in your 401(k) and IRA; the S&P 500’s newest Real Estate sector and how the change may affect index funds; a looming restaurant recession and biopharmaceutical company Regeneron Pharmaceuticals.
This week on “Money Talks,” Senior Managing Associate, Jennifer Thomas, CFP®, joins Bil Lako, CFP® and Troy Harmon, CFA, CVA, to discuss the University of Michigan Consumer Sentiment Survey and CPI, both released last Friday. They also cover housing news and the market action for the week. Both Bil and Jennifer discuss a case study of a couple who have been using general rules of thumb to do their financial planning. Our planners discuss the problems with assuming you can just save 10% of your income, anticipate spending less in retirement, and picking target-date funds as set-and-forget investments. The hosts also address a listener’s question on Bayer’s buyout of Monsanto, and provide advice to a husband who is the beneficiary of his late wife’s 401(k).
Case Study: Following Generalized Investment Guidelines Means Missing out on Tailoring Decisions to Your Circumstances
Jennifer Thomas, CFP® and Bil Lako, CFP® discuss a case study of a couple who have always done their own financial planning. The experts take a closer look at the generalized advice they’ve followed and how it may not work for them.