Issue Synopsis
In this issue, we cover the following topics:
Messages from Larry:
- Looking Back/Looking Forward (3 mins)
Five-Minute Finance Videos:
- Preparing an Emergency Fund (3 mins)
- Types of Stock Market Analysis (4 mins)
- Understanding Universal Life Insurance (4 mins)
- The Power of a Will (4 mins)
- The Greatest Retirement Fear (3 mins)
Timely Guides and Checklists:
- What Issues Should I Consider Before I Retire? (3 mins)
- Master List Of Goals (3 mins)
- What Issues Should I Consider When Buying A Home? (3 mins)
Messages from Larry
I hope this message finds you well and you're having a great summer and start to the year. As the sun starts to set earlier here in Michigan, we're reminded that summer is slowly ticking away. Soon, children and teachers will be heading back to the classroom, fall sports will start up and the leaves will start to change.
Enough of the doom and gloom. The end of the summer also means that "Five-Minute Finance" will be starting up again. Next month, we'll provide links to where you can either watch us (video) or listen to us (podcasts). Be sure to share with your friends and family. If there's a topic you'd like covered, shoot me an email with the request and I'll see what I can do.
Enjoy the rest of your summer!
Larry A Mengerink CFP® AIF®
Market Update
Looking Back/Forward
Looking Back July saw the stock market continue its upward trend, with the NASDAQ rising by 4.1%, the Dow Jones Industrial Average by 3.4%, and the S&P 500 by 3.2%. The Emerging Markets and Russell 2000 Small Caps index were the top performers, gaining 6.3% and 6.1%, respectively. All 11 US stock sectors reported positive returns, led by the Energy sector, which surged by 7.8% due to a substantial increase in oil prices.
Inflation came in below 3%, a first in over two years, and July's Core Inflation reading was below 5%, a first since November 2021. New and Existing Home Sales fell, but Existing Home Prices rose. The yield curve for US Treasury yields saw some notable shifts, with short and long-term yields rising, while the middle spectrum remained mostly unchanged.
The special rebalancing of the Nasdaq 100 index caught attention, redistributing weights among top holdings and impacting the performance of tech-focused ETFs.
Looking Forward As the global economic landscape evolves, investors should closely monitor the changing bond yields and international markets. August - November are historically the most volatile months of the year. Overall, investors should remain vigilant and informed as they navigate these dynamic market conditions.
Larry A Mengerink CFP® AIF®
Popular Five-Minute Finance Videos
Preparing with an Emergency Fund
An emergency fund is an amount of money that you put away in a separate account to cover any unexpected expenses or emergencies. You can use this money to help yourself or your loved ones in times of strife, or to help you or them to prevent losing their home due to missed mortgage payments. Having an emergency fund can save you from many problems, as well as ensure you're able to enjoy your life without being bogged down by debt. In this video we discuss how to create an emergency fund.
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Types of Stock Market Analysis
Stock market analysis is a tricky thing. There are so many different factors to take into consideration, and the factors themselves are so broad, that it’s difficult to make broad statements. The majority of stock market analysis can be lumped into three broad groups: fundamental, technical, and sentimental. Let’s talk about each.
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Understanding Universal Life Insurance
Universal life insurance is a type of insurance that offers flexibility in payment and investment options. The policyholder has the ability to set the premium payments and the cost of insurance. These policies are offered by insurance companies and can be bought with a lump sum payment or with regular payments over time. We'll discuss the expenses and benefits associated with Universal Life insurance.
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The Power of a Will
Most people don't realize they need a will until they need one. However, by then it's too late. The ramifications of dying without a will can be disastrous, especially if you have dependents. This episode talks about why you need a will, how it protects you and your loved ones, and what to consider when creating one.
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The Greatest Retirement Fear
One of the greatest retirement fears is running out of money. In this episode of Five-Minute Finance, we'll discuss some options for you to consider.
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Timely Guides & Checklists
What Issues Should I Consider Before I Retire?
This checklist covers 32 of the most important planning issues to identify and consider for those about to retire. It’s structured as follows:
- Cash Flow Issues
- Health Insurance Issues
- Asset & Debt Issues
- Tax Planning Issues
- Long-Term Planning Issues
- Other Issues
Master List Of Goals
Goal setting is fundamental to sound financial planning. Whether you’re a new or long-term client or a prospective client, it is essential to identify and prioritize your objectives. You may have difficulty expressing and assigning precedence to their goals. Or, you may simply overlook a need or objective.
In response to this challenge, we’ve created this “Master List Of Goals.” This resource is inspired by the work of Ray Sin, Ph.D.; Ryan O. Murphy, Ph.D.; and Samantha Lamas, who authored “Goals-Based Financial Planning: How Simple Lists Can Overcome Cognitive Blind Spots” in the Journal of Financial Planning.
These foundational questions help you expand your understanding and awareness of possible goals for them to consider, including:
- Retirement and lifestyle goals
- Tax planning & healthcare goals
- Self-development and professional goals
- Estate planning and wealth transfer goals
What Issues Should I Consider When Buying A Home?
Buying a home is one of the biggest financial moves that you will ever make. There are a number of issues you should be aware of, including how the costs of purchasing and owning a home will impact your overall financial planning goals.
In this checklist, we cover a number of financial issues that you= need to consider when buying and owning a home, including:
- Cash flow issues, such as the costs to maintain the home once you own it, the impact that owning a home will have should one spouse need/want to stop working to raise children, as well as how long you intend to live in the home.
- Financing issues, including you debt ratios, qualification for advantageous mortgage terms and/or special lending programs (e.g., VA loans), and the loan application process.
- Income tax and estate planning issues, including mortgage interest deductibility, basis tracking, and how to properly title the home.
- Insurance issues, including property and casualty policies, and appropriate levels of life insurance coverage.