wealth management

School is Back In Session

jim family wealth management, Financial advisor, Investing, Market Brief, Market Commentary, Market Outlook, Market Review, Retirement Planning, Stock Market, wealth management , , , , , , , ,
school

Just like that, it’s back-to-school season. Tell me, where did the summer go?

As kids of all ages go back to school, with all of the apprehension and excitement that may bring in these turbulent times, it’s also a great reminder that in life, summer ends but the learning never does. We are always presented with challenges and opportunities to expand our knowledge and grow.

It appears, though, that Americans are slipping in that regard. According to recent Forbes survey, the U.S. is experiencing a steep decline in financial literacy in recent years – especially when dealing with more complex topics like inflation, financial risk, and mortgage rates.

How is your financial IQ? Are there some topics you could use some brushing up on?

The easiest way to fix any gap in knowledge is to ask a question. I can be a great resource for you, and we can discuss how your strategy is positioned to face these complex times. The market brief below gives current insight as well. Feel free to connect with me and keep the financial literacy conversation going to ensure your circle has the same potential for wealth and wellness.

Last Week

U.S. equities posted mixed results as volatility plummeted towards the lowest levels of the year. The Dow and S&P 500 indexes managed modest gains to once again close at record highs, while the Nasdaq Composite fell slightly. Fed officials commented that while the labor market still has room for improvement, inflation is already at levels that would justify interest rate hikes. U.S. job openings surged in June to a record 10.1 million, but businesses are still struggling to find qualified labor for the rebounding economy. Jobless claims fell to 375,000 and continuing claims dropped to a pandemic-era low of 2.8 million.

U.S. productivity grew less than expected at 2.3% for Q2, igniting stagflation fears. Sentiment numbers also disappointed, as small business optimism reversed in July to 99.7 from 102.5. The University of Michigan Consumer Sentiment also fell to 70.2 in early August, a 10-year low. Americans are more concerned about the economy, inflation, and the delta variant. Crude oil gained as the Biden administration pressured OPEC to increase output. For the week, the Dow finished up 0.94%, S&P up 0.75%, and Nasdaq down 0.07%.

This Week

Despite concerns about sentiment, market breadth, and seasonal weakness, stocks continue to climb the wall of worry. Many pundits are calling for a correction, but there seems to be lack of a legitimate catalyst to create that scenario. This week the economic calendar is rather light. Given recent economic data and a policy committee that is growing impatient on tapering, Fed Chair Powell’s town hall event today will be scrutinized along with the July FOMC meeting minutes on Wednesday.

The July U.S. Retail Sales report this morning showed a contraction based on slumping services spending. Where is all the school spending? Regional manufacturing updates came with the Empire State Index declining on Monday followed by the Philly Fed Index on Thursday. The U.S. calendar rounds out with industrial production numbers today and housing starts on Wednesday. Year-to-date index performance; Dow up 16.04%, S&P up 18.96%, and Nasdaq up 15.01% through the close on Friday.

Happy back-to-school week!

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.

Delta Variant Ignites Volatility

jim Financial advisor, Investing, Market Brief, Market Commentary, Market Outlook, Market Review, Retirement Planning, Stock Market, wealth management , , , , , , , ,
delta variant

Fears of the spreading delta variant ignited a selloff today. Last week’s weakening under the hood as some areas experience significant drawdowns relative to the broad indexes. Concerns about deteriorating market breadth pushed equity indexes lower. With a light calendar of economic news to start the week, the focus will shift to Q2 earnings announcements.

Last Week

Concerns about deteriorating market breadth pushed equity indexes lower. The S&P 500 and Dow Jones Industrial Average fell 0.5-1.0%, while the Nasdaq slipped 2%. Energy stocks plunged 8%, with the materials, industrials and discretionary sectors also suffering losses. Consumer prices jumped 5.4% from a year ago. The largest increase since August 2008, and rose 0.9% on a monthly basis. Producer prices increased 1% from May and jumped 7.3% Year-over-Year. Most of the increases continued to come from sectors influenced by the shutdown, which Fed Chair Powell reiterated in his Congressional testimony. Powell also noted that the Fed’s benchmarks for tightening monetary policy remain “a ways off”. Crude oil fell 4.5% after Saudi Arabia and the UAE reached a compromise on increasing output, offsetting declining U.S. stockpiles.

Jobless claims reached a new pandemic-era low of 360,000, with continuing claims falling sharply to 3.24 million. U.S. manufacturing reports came in mixed, the New York region rose to a record 43 reading for July. While the Philly Fed said progress was slowing with a decline from 30.7 to 21.9. U.S. industrial production missed estimates in June, posted a 0.4% increase as supply shortages still plagued output. Prospects for Q2 U.S. economic growth were bolstered by a surprising jump in retail sales. Transactions climbed 0.6% Month-over-Month and 18% Year-over-Year, well above pre-pandemic levels. China, the world’s second largest economy expanded 7.9% in the first three months of the year, still strong but down from 18.3% the previous quarter. In Europe Germany’s CPI was in-line at 2.3% Year-over-Year while the UK’s 2.5% outpaced estimates.

Delta Variant and the Week Ahead

With a light calendar of economic news to start the week, the focus will shift to Q2 earnings announcements. Large cap mainstays IBM, Travelers, Netflix, Johnson & Johnson, Verizon, AT&T, Intel and American Express will all provide updates. On Wednesday, the ECB will deliver its monetary policy statement with an eye towards recent inflation dynamics and the difficult-to-assess risk of the coronavirus delta variant. U.S. unemployment claims are expected to fall to another pandemic-era low. Housing starts will highlight the state of the complicated homebuilder market.

Year-to-date index performance; Dow up 13.3%, S&P up 15.2%, and Nasdaq up 11.9% through the close on Friday.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.

Preparing for retirement emotionally

jim family wealth management, Financial advisor, Investing, retirement, Retirement Planning, wealth management , , , ,
retirement emotionally

Retirement paves the way to a new and exciting chapter of our lives, emotionally too. This is the moment of relief when, for the first time ever, we now have ample time to travel the world, take up new hobbies, and scratch whatever itch we’ve been ignoring.

Yes, retirement should be exciting. But for many of us, the thought of leaving our jobs forever can be daunting. After all, our careers play an important role in shaping our identity. And to suddenly cut the cord means we have to find something else to fill the void.

This isn’t helped by the fact that the word ‘retirement’ can be quite limiting – when it’s anything but. All too often, people associate it with old age and the ‘pipe and slippers’ part of life. This is why the financial conversation is often limited to how much you might have to retire on. And that’s that.

But it’s not as simple as that anymore. Today’s typical 60 somethings are nothing like those of a generation ago.

A lot of this comes down to the fact that life expectancy in North America has been on the rise for some time now. A generation ago, men could expect to live up to their late sixties, and for women their mid-seventies. Since then, life expectancy has improved incrementally. The current life expectancy for North American men is 76 and women 85.

This means that for many retirees these days, retirement isn’t a wind-down phase, but a whole new beginning. This means that financially speaking, you might need to consider how to manage your retirement fund more strategically.

But how do you prepare for such a massive transition emotionally?

According to gerontologist Ken Dychtwald, it’s all about mindset. He advises people approaching retirement to do so as they would a career: His advice is to set goals, to visualize a ladder to climb, and to use these targets as motivation to move closer towards your next destination.

Unfortunately, the statistics show how detrimental it can be to find yourself without purpose and meaning at retirement: depression is prevalent in 22% of men and 28% of women at the age of 65 and over.

If you’re unsure of how to even begin to plan for retirement, then following some of the principles from Professor Dychtwald’s five phases of retirement could help you map out your journey.

Imagination (15 before retirement)

Being at least fifteen years away from finishing work for good, retirement might not seem like a priority. At this point, you’re more likely to be making sure that career aspirations are met, bills are paid, and your children are able to get through university.

But it’s important to think about your pension at this stage as it can help to ensure you have the financial stability to live life on our terms, post-retirement. This is where you can start to dream big and imagine the retirement you really want to have.

Anticipation (3 years from retirement)

Now you’re planning to turn retirement it into reality… this is where preparing emotionally is just as vital as preparing financially.

A great way to do this is by trying to develop a network of retirees whom you can trust for advice so they can share their experience of how they coped with the process.

Make a note of the goals you want to accomplish and what measures need to be put in place in order to achieve them.

Preparing (1 year before retirement)

The new beginning is near! Now’s the time to start developing concrete steps. Ask yourself what you’re going to do during the first week of retirement and what you plan on doing on a day-to-day basis.

Make a plan of what you want to achieve in the first six months and talk it through with your partner or loved ones. Visualizing the practicalities of this new phase will make it seem less daunting when it eventually arrives.

The liberation phase (first year of retirement)

Your working life is finally over! This is the stage when you’re likely to feel the most excited, relieved, and liberated. You can finally begin to explore new opportunities, travels, and hobbies.

Unfortunately, this honeymoon period will eventually fade, but remember, this is natural.

Dychtwald states the importance of staying physically active and maintaining strong social ties with people at this stage.

Reorientation (3 years into retirement)

This is the part where creating a legacy for the next generation can be top of mind. Whether that’s by sharing your knowledge and wisdom with others, or by thinking more carefully about the financial gifts you’re leaving children and grandchildren, this is an opportunity for you to decide what impact you want to leave on the world.

Hopefully, this is helpful in terms of thinking about retirement and a brand new beginning. Retirement isn’t the end of the road; dream big and don’t be afraid to chase after your deepest desires.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.

Financial Review – Why now is still a good time

jim Financial advisor, Financial Review, investment strategy, Retirement Planning, wealth management, wealth planning strategies , , , ,
financial review

Isn’t it funny how quickly we adapt? Who would have thought that video conferencing would have become such an important part of life. And in fact a lifeline for many? It’s helped friends and families to keep in touch and enabled businesses to keep running during tough times. It’s certainly provided me with a helpful way of staying connected and providing financial review to clients.

Now, at the click of a button, I can invite you to a meeting from your home. I can make it interactive by sharing our screens to show you documents and charts. Of course, these meetings also save time because we’re not having to travel to see each other. Not to mention servicing clients in different states.

But the ‘Zoom revolution’ has also brought with it a new phenomenon. The phrase ‘Zoom fatigue’ describes the feeling of drain after too many virtual meetings. Psychologists explain that the added pressure of being seen on screen is what adds to this feeling of exhaustion. The strain of having to actively show through a small screen that we’re interested and alert can be tiring.

It’s certainly true that face-to-face meetings are much more relaxed. It’s an altogether more natural experience. There’s an emotional connection that happens without thinking about it. It’s easier to sense when someone needs to pause and reflect, and there are more comfortable silences. There’s also less chance of us talking over one another.

That’s why I’ll always advocate face-to-face interaction – and why I’m looking forward to seeing you again one day soon hopefully! But in the meantime, I want you to feel confident that your review meetings and catch ups – whether on the phone or via video – will still be just as effective as in person.

I understand what an uncertain and worrying time it will be for many and that now more than ever you’ll want to talk to someone in a relaxed a way as possible.

As part of your financial review, I’ll listen to your concerns and provide you with feedback and solutions based on your individual needs and priorities. I’ll also make every effort to make things clear and simple.

Last week wrapped up Financial Literacy Month. I hope you were able to learn a few new things and apply them to your strategy. One of my goals in sharing information is to engage you with useful content so you are in the best position to grow your wealth – and maybe even have a little fun. Ask yourself these three questions to reveal how financially literate you are:

  1. Are you in control of your spending? Examining your money habits and creating a budget puts you in the driver’s seat toward smart money management.
  2. Are you saving for your future? Do you live within your means and are you investing in yourself first and foremost? If you need more info about how to best do this, ask me.
  3. Are you confident in reaching your current financial goals? Listen to your gut, and act accordingly.

If you answered yes to all three of these questions, you’re in good shape. But if you said no, don’t worry. Many people have had to reevaluate their priorities over the past year. I can help get you on the right track. I’ll also invite you to participate comfortably in the conversation and ask me any number of questions – I really mean it when I say there’s no such thing as a silly question!

I hope this provides reassurance that now is still a good time for a financial review. By re-setting your financial strategy at this point, I can put recent market performance and your longer-term financial goals into context. It will also give you the chance to pause, reflect and resettle your mind.

I look forward to speaking to you.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.

Despite Rising Yields, the Economy is Marching Forward

jim Economy, Financial advisor, Investing, Investing Strategy, Market Brief, Market Commentary, Market Outlook, Market Review, Retirement Planning, Stock Market, wealth management , , , , , ,
marching forward

Let’s do a reality check. With tax season in full swing, markets doing their day-to-day dance and winter weather still causing havoc, it’s sometimes hard to know what’s going to happen next. In light of the events of 2020, some may be carrying added anxiety into this time of year. Spring and brighter days are on the way as the nation continues marching forward.

Because anxiety can lead to irrational money decisions, the best way to fight it is to take a deep breath, focus on your goals and then take the next step forward — no matter how small. Before long, you’ll find yourself “marching” forward with momentum and greater confidence. 

Last week

Fed officials failed to settle concerns over rising yields. Major equity indices rallied sharply into the weekend after the positive February non-farm payrolls report. The Johnson & Johnson’s vaccine approval propelled the early week rally. The rally fell as Fed chair Powell reiterated the FOMC’s view that rising price pressures are likely transitory. The rates market viewed this “do nothing” attitude as a reason to dump bonds. The tech-heavy Nasdaq losses captivated investors’ attention. This mark the third consecutive weekly decline. The growth index markedly underperformed value as that reopening rotation continued.

Week Ahead

The U.S. Senate passed the $1.9 trillion COVID-19 aid package, so the bill now will go to the House. That said, Friday’s plunge and reversal has elicited calls of surrender, but most technical metrics failed to reach such levels. The indices’ quick rebound should be a warning to the bears, but neither party seems to have the upper hand when looking at the technical charts. This fight is likely to continue, leading to elevated volatility levels. The darling high-growth names have not recovered anywhere near the extent that big tech companies have. And the easing of yields is likely needed to boost them. The weak Treasury auction two weeks ago sent yields sharply higher, so this week’s demand for government paper will be closely watched. The Federal Open Market Committee’s next policy meeting is on March 17 and will provide updated economic projections.

Despite what happens to the economy, you have the right to be confident — you have crafted a plan and I’m here for you each step of the way. As Warren Buffett famously said, “I don’t try and guess interest rates, I just buy businesses I like.” Maybe your next step is to set up some time to talk about your options for marching forward? I’d welcome that! Year-to-date the S&P 500 is up 2.29%, Dow Jones Index is up 2.91%, and the Nasdaq up 0.25%.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

Financial Advisor Erie CO focus on investments, wealth management, retirement in Boulder, Louisville, Niwot, Lafayette, Windsor, Berthoud, CO

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.