Economic Update 4/29

Q1 GDP COMES IN AT 2.5%

The initial estimate of first quarter growth from the Bureau of Economic Analysis disappointed some analysts who had expected 3% expansion or better. Personal consumption and inventory accumulation were the prime sources of growth. Personal spending rose 3.2% in the quarter, but real disposable personal income fell 5.3%, which led the personal savings rate to slip to 2.6% from 4.7% in Q4. The big picture? The economic recovery is definite, but still sluggish. Overall durable goods orders dropped 5.7% in March, according to the Commerce Department.1,2

EXISTING HOME SALES FALL; NEW HOME SALES RISE While March brought a 0.6% dip in residential resales, the National Association of Realtors also noted the 10.3% gain in the pace of home buying from a year before. The Census Bureau reported a 1.5% gain in new home sales last month, with the year-over-year improvement in the sales pace at 18.5%.3

CONSUMERS GROW MORE POSITIVE AS APRIL ENDS

Economists polled by Reuters had forecast April’s final consumer sentiment reading from the University of Michigan to rise mildly to 73.2. Instead, it jumped to 76.4. That was still underneath the final March mark of 78.6.4

STOCKS KEEP ADVANCING

Across a volatile week, the Dow went +1.13% to settle at 14,712.55 Friday. The NASDAQ (+2.28% to 3,279.26) and S&P 500 (+1.74% to 1,582.24) also improved. At Friday’s close, about half of S&P 500 companies had reported quarterly results; just 42% had surpassed revenue forecasts, but 69% had beaten earnings expectations.4

THIS WEEK: The March consumer spending report arrives Monday, plus NAR’s March pending home sales figures and earnings from Hartford Financial, Newmont Mining and Buffalo Wild Wings. Tuesday offers the Conference Board’s April consumer confidence poll, February’s S&P/Case-Shiller Home Price Index and Q1 results from Pfizer, Aetna, UBS, Deutsche Bank, BP, NYSE Euronext, Sirius XM, US Steel and DreamWorks. Wednesday brings ADP’s April employment report, ISM’s April manufacturing index, a policy statement from the Federal Reserve, and earnings from Facebook, Visa, Allstate, Comcast, MasterCard, Merck, Time Warner, CVS, Chesapeake Energy, Clorox, Humana, CBS, Marriott, MetLife and Yelp. Earnings from Kellogg, GM, Royal Dutch Shell, Beazer Homes, AIG and Kraft Foods come out Thursday, plus April’s Challenger job cut report. On Friday, the Labor Department’s April employment report arrives along with ISM’s April service sector index and quarterly results from Berkshire Hathaway.

 

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

+12.27

+11.42

+2.82

+7.71

NASDAQ

+8.60

+7.50

+7.07

+12.86

S&P 500

+10.94

+13.02

+2.64

+7.60

REAL YIELD

4/26 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

-0.68%

-0.29%

1.60%

2.18%

 

Sources: cnbc.com, bigcharts.com, treasury.gov – 4/26/134,5,6,7

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.

These returns do not include dividends.

 

 

This material was prepared by Peter Montoya Inc, and does not necessarily represent the views of Albert Aizin, and The Retirement Group or FSC Financial Corp. This information should not be construed as investment advice. Neither the named Representatives nor Broker/Dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information or call 800-900-5867.


The Retirement Group is not affiliated with nor endorsed by fidelity.com, netbenefits.fidelity.com, hewitt.com, resources.hewitt.com, access.att.com, ING Retirement, AT&T, Qwest, Chevron, Hughes, Northrop Grumman, Raytheon, ExxonMobil, Glaxosmithkline, Merck, Pfizer, Verizon, Bank of America, Alcatel-Lucent or by your employer. We are an independent financial advisory group that specializes in transition planning and lump sum distribution. Please call our office at 800-900-5867 if you have additional questions or need help in the retirement planning process.

Albert Aizin is a Representative with FSC Securities and may
be reached at http://www.theretirementgroup.com.

 

 

 

 

 

 

This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Past performance is no guarantee of future results.  Investments will fluctuate and when redeemed may be worth more or less than when originally invested. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

 

Citations.

1 – http://www.bloomberg.com/news/2013-04-26/latest-gdp-report-shows-u-s-economy-still-waiting-for-liftoff.html [4/26/13]

2 – briefing.com/investor/calendars/economic/2013/04/22-26 [4/26/13]

3 – http://www.csmonitor.com/Business/new-economy/2013/0423/New-home-sales-climb-1.5-percent-bolstering-housing-recovery [4/23/13]

4 – http://www.cnbc.com/id/100678668 [4/26/13]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F26%2F12&x=0&y=0 [4/26/13]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F26%2F12&x=0&y=0 [4/26/13]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F26%2F12&x=0&y=0 [4/26/13]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F25%2F08&x=0&y=0 [4/26/13]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F25%2F08&x=0&y=0 [4/26/13]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F25%2F08&x=0&y=0 [4/26/13]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F25%2F03&x=0&y=0 [4/26/13]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F25%2F03&x=0&y=0 [4/26/13]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F25%2F03&x=0&y=0 [4/26/13]

6 – http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/26/13]

7 – http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/26/13]

 

 

Economic Update 4/22

INFLATION DECLINES

Consumer prices retreated 0.2% in March as fuel costs fell, a sea change from the 0.7% rise in the Consumer Price Index seen in February. (Labor Department data did show a 0.1% rise in core CPI.) Annualized consumer inflation was at 1.5% in March, down half a percent in a month. Year-over-year inflation hasn’t been so mild since July, and that is reassuring news for the Federal Reserve.1

SURPRISE DIP FOR LEADING INDICATORS

After six straight months of advances, the Conference Board’s index of leading indicators unexpectedly retreated 0.1% for March. It had risen 0.5% across January and February. As for anecdotal evidence of the economy’s health, the latest Fed Beige Book noted “moderate” expansion, adding that household spending “grew modestly” even with the payroll tax hike and higher gas prices.2

HOUSING STARTS UP 7.0% IN MARCH

The Commerce Department noted that they reached a 1.04 million annual rate last month, a pace last seen in June 2008. While single-family projects dipped 4.8% in March, apartment starts jumped 31.0% to their highest level since January 2006.1

VOLATILITY KEEPS STOCKS IN CHECK

The CBOE VIX rose 24.13% last week, and the DJIA (-2.14% to 14,547.51), NASDAQ (-2.70% to 3,206.06) and S&P 500 (-2.11% to 1,555.25) basically gave back the gains realized from April 8-12. NYMEX crude lost 3.1% last week to settle Friday at $88.01; COMEX gold fell another 7.1% last week to $1,395.60 at Friday’s close.3,4,5

THIS WEEK: Monday brings earnings from Netflix, Caterpillar, Halliburton, Hasbro, Zions Bancorp, STMicro and Texas Instruments, and the NAR presents a new existing home sales report. Tuesday, the Census Bureau provides data on March new home sales, the latest FHFA housing index appears, and Discover Financial, Panera Bread, Delta Airlines, United Tech, DuPont, Travelers, Amgen, Apple, AT&T, Broadcom, Cree and Yum! Brands announce earnings. Wednesday, the Commerce Department reports on March durable goods orders; Credit Suisse, Akamai, GlaxoSmithKline, Barclays, Boeing, Ford, Eli Lilly, P&G, Sprint Nextel, Qualcomm, Aflac, Cabot Oil & Gas and Zynga are out with earnings. Starbucks, Coinstar, ExxonMobil, 3M, ConocoPhillips, Altria, AstraZeneca, Bristol-Myers, UPS, Altera, Baidu and Expedia report quarterly results Thursday; new weekly jobless claims figures also appear. The BEA publishes its first estimate of Q1 GDP Friday, which is also when the final April University of Michigan consumer sentiment survey arrives; complementing those releases, DR Horton, Honda and Chevron announce earnings.

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

+11.01

+12.21

+2.64

+7.45

NASDAQ

+6.18

+6.60

+6.68

+12.49

S&P 500

+9.05

+12.95

+2.37

+7.40

REAL YIELD

4/19 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

-0.59%

-0.21%

1.45%

2.22%

 

Sources: cnbc.com, bigcharts.com, treasury.gov – 4/19/133,6,7,8

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.

These returns do not include dividends.

 

This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Past performance is no guarantee of future results.  Investments will fluctuate and when redeemed may be worth more or less than when originally invested. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

 

 

This material was prepared by Peter Montoya Inc, and does not necessarily represent the views of Albert Aizin, and The Retirement Group or FSC Financial Corp. This information should not be construed as investment advice. Neither the named Representatives nor Broker/Dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information or call 800-900-5867.


The Retirement Group is not affiliated with nor endorsed by fidelity.com, netbenefits.fidelity.com, hewitt.com, resources.hewitt.com, access.att.com, ING Retirement, AT&T, Qwest, Chevron, Hughes, Northrop Grumman, Raytheon,  Merck, Pfizer, ExxonMobil, Glaxosmithkline,  Verizon, Bank of America, Alcatel-Lucent or by your employer. We are an independent financial advisory group that specializes in transition planning and lump sum distribution. Please call our office at 800-900-5867 if you have additional questions or need help in the retirement planning process.

Albert Aizin is a Representative with FSC Securities and may
be reached at http://www.theretirementgroup.com.

 

 

 

Citations.

1 – http://www.sfgate.com/business/bloomberg/article/Housing-Starts-Climb-as-U-S-Consumer-Prices-4438798.php [4/16/13]

2 – http://www.futuresmag.com/2013/04/18/leading-economic-indicators-index-in-us-unexpected [4/18/13]

3 – http://www.cnbc.com/id/100656119 [4/19/13]

4 – http://www.foxbusiness.com/news/2013/04/19/market-snapshot-us-stocks-rise-ibm-weighs-on-dow/ [4/19/13]

5 – http://www.cnbc.com/id/100655012 [4/19/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F19%2F12&x=0&y=0 [4/19/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F19%2F12&x=0&y=0 [4/19/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F19%2F12&x=0&y=0 [4/19/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F18%2F08&x=0&y=0 [4/19/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F18%2F08&x=0&y=0 [4/19/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F18%2F08&x=0&y=0 [4/19/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F17%2F03&x=0&y=0 [4/19/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F17%2F03&x=0&y=0 [4/19/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F17%2F03&x=0&y=0 [4/19/13]

7 – http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/19/13]

8 – http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/19/13]

 

 

 

 

Economic Update

April 15, 2013

    

HOUSEHOLDS BOUGHT LESS LAST MONTH

Retail sales were down 0.4% in March, according to the Commerce Department. This unanticipated dip was the deepest retreat in nine months. Even with volatile car and truck sales factored out, the March decline remained 0.4%.1

CONSUMER SENTIMENT SLIPS

The University of Michigan’s overall index of consumer sentiment came in at 72.3 in its preliminary April reading – down significantly from the final March mark of 78.6. Last month’s imposed federal budget cuts may have had an effect.1

PRODUCER PRICE INDEX DOWN 0.6%

Cheap gasoline was the big factor. Economists polled by Reuters had forecast a 0.2% retreat in the PPI for March, but the decline in pump prices made more of an impact. Core PPI (with food and energy costs subtracted) rose 0.2% last month.1,2

GOLD ENTERS A BEAR MARKET

Friday, the precious metal settled at $1,501.40 on the COMEX after a 4.1% one-day plunge. Futures fell 4.7% across last week. The April 12 settlement price was 20.5% below the record close of $1,888.70 notched on August 22, 2011.3

 

STOCKS CLIMB 2% IN A WEEK

Unfazed by soft economic indicators, Wall Street was in a buying mood last week. After a 2.29% gain in five days left the S&P 500 at 1,588.85 at Friday’s close, investors wondered if the index would top 1,600 soon. The Dow (+2.06% to 14,865.06), NASDAQ (+2.84% to 3,294.95) and Russell 2000 (+2.12% to 942.85) all advanced impressively on the week.2

THIS WEEK: Monday, Citigroup presents Q1 results and a new NAHB Housing Market Index appears. The March CPI arrives Tuesday, along with numbers on March housing starts and earnings from Coca-Cola, Yahoo!, BlackRock, Goldman Sachs, Johnson & Johnson, Northern Trust, US Bancorp, Intel and CSX. Wednesday, the Federal Reserve offers its latest Beige Book and Wall Street awaits earnings from American Express, Bank of NY Mellon, Abbott Labs, Bank of America, eBay and SanDisk. The Conference Board’s March index of leading indicators comes out Thursday, G20 finance ministers meet, and Chipotle, United Health, E-Trade, Philip Morris, Morgan Stanley, PepsiCo, Verizon, Nokia, Peabody Energy, Google, IBM, Microsoft and Capital One report earnings. Friday, earnings from Schlumberger, McDonald’s, GE and Honeywell round out the week.

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

+13.44

+14.46

+4.12

+8.12

NASDAQ

+9.12

+7.83

+8.77

+14.25

S&P 500

+11.41

+14.51

+3.84

+8.30

REAL YIELD

4/12 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

-0.68%

-0.22%

1.19%

2.23%

 

Sources: cnbc.com, bigcharts.com, treasury.gov – 4/12/132,4,5,6

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.

These returns do not include dividends.

This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Past performance is no guarantee of future results.  Investments will fluctuate and when redeemed may be worth more or less than when originally invested. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

 

Citations.

1 – http://www.nasdaq.com/article/us-stocks-slip-with-weak-consumer-sentiment-retail-data-20130412-00393#.UWhv1cpXqXk [4/12/13]

2 – http://www.cnbc.com/id/100637362 [4/12/13]

3 – http://www.marketwatch.com/story/gold-prices-slip-with-weekly-declines-in-sight-2013-04-12 [4/12/13]

4 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F12%2F12&x=0&y=0 [4/12/13]

4 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F12%2F12&x=0&y=0 [4/12/13]

4 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F12%2F12&x=0&y=0 [4/12/13]

4 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F11%2F08&x=0&y=0 [4/12/13]

4 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F11%2F08&x=0&y=0 [4/12/13]

4 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F11%2F08&x=0&y=0 [4/12/13]

4 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F11%2F03&x=0&y=0 [4/12/13]

4 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F11%2F03&x=0&y=0 [4/12/13]

4 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F11%2F03&x=0&y=0 [4/12/13]

5 – http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/12/13]

6 – http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/12/13]

 

This material was prepared by Peter Montoya Inc, and does not necessarily represent the views of Albert Aizin, and The Retirement Group or FSC Financial Corp. This information should not be construed as investment advice. Neither the named Representatives nor Broker/Dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information or call 800-900-5867.


The Retirement Group is not affiliated with nor endorsed by fidelity.com, netbenefits.fidelity.com, hewitt.com, resources.hewitt.com, access.att.com, ING Retirement, AT&T, Qwest, Chevron, Hughes, Northrop Grumman, Raytheon, ExxonMobil, Glaxosmithkline, Merck, Pfizer, Verizon, Bank of America, Alcatel-Lucent or by your employer. We are an independent financial advisory group that specializes in transition planning and lump sum distribution. Please call our office at 800-900-5867 if you have additional questions or need help in the retirement planning process.

Albert Aizin is a Representative with FSC Securities and may
be reached at http://www.theretirementgroup.com.

 

 

 

Economic Update 4/10

JUST 88,000 NEW JOBS?

In the wake of the Labor Department’s disappointing March employment report, puzzled analysts tried to figure out the reasons for such poor job growth. Did businesses fear the impact of the federal budget cuts in March and scale back hiring? Were there fewer food service, retail and temporary job openings? (More than 7% of Americans work in food service jobs, and temp work has made up a larger share of employment in recent years.) Was it seasonal, since hiring also declined in spring 2011 and spring 2012? Would the number later be revised upward? Whatever the cause(s), the message was troubling. The jobless rate dipped to 7.6%, but that was because of fewer jobseekers – the labor force participation rate was 63.3% in March, a 34-year low.1

ISM: BUSINESS ACTIVITY SLOWED IN MARCH

In another disconcerting development, the Institute for Supply Management’s manufacturing and service sector PMIs both retreated last month. ISM’s manufacturing PMI fell to 51.3 from the previous 54.2, while its non-manufacturing PMI dipped 1.6 points to 54.4. On the upside, the Commerce Department did note a 3.0% rise in factory orders in February.2,3

OIL & GOLD MOVE LOWER FOR THE WEEK

NYMEX crude settled at $92.70 a barrel Friday, representing a 4.7% five-day loss. COMEX gold gained 1.5% Friday to end the week at $1,575.90 an ounce but still slipped 1.2% last week.4

CAUTION ON WALL STREET

The jobs report and North Korea’s ongoing threats gave investors pause last week, and so the Dow (-0.09% to 14,565.25), NASDAQ (-1.95% to 3,203.86) and S&P 500 (-1.01% to 1,553.28) all lost ground. Still, it was only the second down week in the past seven for the Dow.5

THIS WEEK: Alcoa kicks off the Q1 earnings season after Monday’s closing bell, and Ben Bernanke speaks on stress testing banks Monday night. Nothing major is scheduled for Tuesday. Wednesday, the March 20 FOMC minutes will be made public and CarMax, Constellation Brands and Bed Bath & Beyond report earnings. Thursday brings the latest initial jobless claims report from the Labor Department plus earnings from Rite Aid, JB Hunt and Pier 1 Imports. Friday, March’s PPI and March retail sales data arrive, Wells Fargo and JPMorgan report earnings, the University of Michigan’s preliminary April consumer sentiment survey appears, and Ben Bernanke delivers an afternoon speech at the Fed’s development conference.

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

+11.15

+11.52

+3.10

+7.60

NASDAQ

+6.11

+4.00

+7.03

+13.16

S&P 500

+8.91

+11.10

+2.67

+7.67

REAL YIELD

4/5 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

-0.74%

-0.08%

1.18%

2.16%

 

Sources: cnbc.com, bigcharts.com, treasury.gov – 4/5/135,6,7,8

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.

These returns do not include dividends.

This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Past performance is no guarantee of future results.  Investments will fluctuate and when redeemed may be worth more or less than when originally invested. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

 

Citations.

1 – http://www.nytimes.com/2013/04/06/business/economy/us-adds-only-88000-jobs-jobless-rate-falls-to-7-6.html [4/5/13]

2 – http://www.ism.ws/ISMReport/NonMfgROB.cfm [4/3/13]

3 – http://www.reuters.com/article/2013/04/02/us-economy-factory-orders-idUSBRE9310HV20130402 [4/2/13]

4 – http://www.proactiveinvestors.com/companies/news/42403/oil-drops-gold-rises-on-us-jobs-report-42403.html [4/5/13]

5 – http://www.cnbc.com/id/100619132 [4/5/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F5%2F12&x=0&y=0 [4/5/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F5%2F12&x=0&y=0 [4/5/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F5%2F12&x=0&y=0 [4/5/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F4%2F08&x=0&y=0 [4/5/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F4%2F08&x=0&y=0 [4/5/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F4%2F08&x=0&y=0 [4/5/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F4%2F03&x=0&y=0 [4/5/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F4%2F03&x=0&y=0 [4/5/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F4%2F03&x=0&y=0 [4/5/13]

7 – http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/5/13]

8 – http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/5/13]

 

 

This material was prepared by Peter Montoya Inc, and does not necessarily represent the views of Albert Aizin, and The Retirement Group or FSC Financial Corp. This information should not be construed as investment advice. Neither the named Representatives nor Broker/Dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information or call 800-900-5867.


The Retirement Group is not affiliated with nor endorsed by fidelity.com, netbenefits.fidelity.com, hewitt.com, resources.hewitt.com, access.att.com, ING Retirement, AT&T, Hughes, Northrop Grumman, Qwest, Chevron, Raytheon, ExxonMobil, Glaxosmithkline, Merck, Pfizer, Verizon, Bank of America, Alcatel-Lucent or by your employer. We are an independent financial advisory group that specializes in transition planning and lump sum distribution. Please call our office at 800-900-5867 if you have additional questions or need help in the retirement planning process.

Albert Aizin is a Representative with FSC Securities and may
be reached at http://www.theretirementgroup.com.

 

 

 

What Beneficiaries Need to Know

What do you do when an account owner passes away?

 If your loved ones have invested, saved or insured themselves to any degree, you may be named as a beneficiary to one or more of their accounts, policies or assets in the event of their deaths. While we all hope “that day” never comes, we do need to know what to do financially if and when it does.

Legally, just who is a beneficiary? IRAs, annuities, life insurance policies and qualified retirement plans such as 401(k)s and 403(b)s are set up so that the accounts, policies or assets are payable or transferable on the death of the owner to a beneficiary, usually an individual named on a contractual document that is filled out when the account or policy is first created.

In addition to the primary beneficiary, the account or policy owner is asked to name a contingent (secondary) beneficiary. The contingent beneficiary will receive the asset if the primary beneficiary is deceased.

Some retirement accounts and policies may have multiple beneficiaries. Charities are also occasionally named as beneficiaries. If you have individually listed one (or more) of your kids or grandkids as designated beneficiaries of your 401(k) or IRA, that designation will usually override any charitable bequest you have stated in a trust or will.1

A will is NOT a beneficiary form. When it comes to 401(k)s and IRAs, beneficiary designations are commonly considered first and wills second. Be mindful of who you select. If you willed your IRA assets to your son in 2008 but named the man who is now your ex-husband as the beneficiary of your IRA back in 1996, those IRA assets are set up to transfer to your ex-husband in the event of your death.1

If a retirement account owner passes away, what steps need to be taken? First, the beneficiary form must be found, either with the IRA or retirement plan custodian (the financial firm overseeing the account) or within the financial records of the person deceased. Beyond that, the financial institution holding the IRA or retirement plan assets should also ask you to supply:

 

* A certified copy of the account owner’s death certificate

* A notarized affidavit of domicile (a document certifying his or her place of residence at the time of death)

 

If the named beneficiary is a minor, a birth certificate for that person will be requested. If the beneficiary is a trust, the custodian will want to see a W-9 form and a copy of the trust agreement.2

 

If you are named as the primary beneficiary, you usually have three options for claiming the assets, regardless of what kind of retirement savings account you have inherited:

 

1 – Open an inherited IRA and transfer or roll over the funds into it.

2 – Roll over or transfer the assets to your own, existing IRA.

3 – Withdraw the assets as a lump sum (liquidate the account, get a check).

 

Before you make ANY choice, you should welcome the input of a tax advisor, and discuss any limitations or consequences that may apply to your situation.2

 

What if you are a spousal beneficiary? If that is the case, you may elect to:

 

* Roll over or transfer assets from a traditional IRA, Roth IRA, SEP-IRA or SIMPLE IRA into your own traditional or Roth IRA, or an inherited traditional or Roth IRA

* Withdraw the assets as a lump sum

* Roll over or transfer qualified retirement plan assets from a 401(k), 403(b), etc. into your own retirement account, or take them as a lump sum.2,6

                    

What if you are a non-spousal beneficiary? If this is so, you may elect to:

 

* Roll over or transfer assets from a traditional IRA, Roth IRA, SEP-IRA, SIMPLE IRA or qualified retirement plan into an inherited IRA

* Withdraw the assets as a lump sum.2

 

What if a qualified (i.e., irrevocable) trust is named as the beneficiary? If that is the circumstance, the trustee has two choices:

 

* Transfer assets from a traditional IRA, Roth IRA, SEP-IRA, SIMPLE IRA or qualified retirement plan into an inherited IRA

* Withdraw the assets as a lump sum.2

 

The next calendar year will be very important. Inheritors of retirement accounts have until September 30 of the year following the original account owner’s death to review and remove beneficiaries, and until December 31 of that year to divide the IRA assets among multiple beneficiaries. Usually, December 31 of the year after the original retirement plan owner’s passing is the deadline for the first RMD (Required Minimum Distribution) from an inherited traditional or Roth IRA.3,4

 

Now, how about U.S. Savings Bonds? If you are named as the primary beneficiary of a U.S. Treasury Bond, you have three options:

 

* Redeem it at a financial institution (you will need your personal I.D. for this).

* Get the security reissued in your name or the names of multiple beneficiaries. You do this via Treasury Department Form 4000, which you must sign before a certifying officer at a bank (not a notary). Then you send that signed form and a certified copy of the death certificate to a Savings Bond Processing Site.

* Do nothing at all, as the primary beneficiary automatically becomes the bond owner when the original bond owner passes away.5

 

What about savings & checking accounts? Bank accounts are often payable-on-death (POD) assets or “Totten trusts.” All a beneficiary needs to claim the assets is his or her personal identification and a certified copy of the death certificate of the original account holder. There is no need for probate. (Some states limit charities and non-profits from being POD beneficiaries of bank accounts.)5

 

How about real estate? Lastly, it is worth noting that about a dozen states use transfer-on-death (TOD) deeds for real property. If you live in such a state, you have to go to the county recorder or registrar, usually with a certified copy of the death certificate and a notarized affidavit which informs the recorder or registrar that ownership of the property has changed. If the deed names multiple beneficiaries and some are dead, the surviving beneficiaries must present the recorder or registrar with certified copies of the death certificates of the deceased beneficiaries.5

 

 

This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is not a solicitation or a recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

 

 

Citations.

1 – smartmoney.com/taxes/estate/how-to-choose-a-beneficiary-1304670957977/ [6/10/11]

2 – http://www.schwab.com/public/file/P-1625576/CS13416-02_MKT13598-10_FINAL_118091.pdf [12/10]

3 – retirementwatch.com/IRASample4.cfm [1/31/13]

4 – retirementwatch.com/IRASample1.cfm [1/31/13]

5 – nolo.com/legal-encyclopedia/claim-payable-on-death-assets-32436.html [1/31/13]

6 – montoyaregistry.com/Financial-Market.aspx?financial-market=who-should-inherit-your-ira-andor-401k&category=22 [1/31/13]

 

 

This material was prepared by Peter Montoya Inc, and does not necessarily represent the views of Albert Aizin, and The Retirement Group or FSC Financial Corp. This information should not be construed as investment advice. Neither the named Representatives nor Broker/Dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information or call 800-900-5867.


The Retirement Group is not affiliated with nor endorsed by fidelity.com, netbenefits.fidelity.com, hewitt.com, resources.hewitt.com, access.att.com, ING Retirement, AT&T, Qwest, Chevron, Hughes, Northrop Grumman, ExxonMobil, Glaxosmithkline,Raytheon,  Merck, Pfizer, Verizon, Bank of America, Alcatel-Lucent or by your employer. We are an independent financial advisory group that specializes in transition planning and lump sum distribution. Please call our office at 800-900-5867 if you have additional questions or need help in the retirement planning process.

Albert Aizin is a Representative with FSC Securities and may
be reached at http://www.theretirementgroup.com.

 

 

 

Roth IRA’s

A Roth IRA’s Many Benefits

Why do so many people choose them over traditional IRAs?

 

The IRA that changed the whole retirement savings perspective. Since the Roth IRA was introduced in 1998, its popularity has soared. It has become a fixture in many retirement planning strategies, because it offers savers so many potential advantages.

The key argument for going Roth can be summed up in a sentence: Paying taxes on your retirement contributions today is better than paying taxes on your retirement savings tomorrow.

Think about it. All other variables aside, would you like to pay more taxes in retirement or less?

What if federal tax rates are higher in the future than they are today? Would you like to see a) your retirement savings taxed at those higher rates tomorrow, when you may have medical bills or other emergency expenses to contend with, or b) have the dollars you are saving for retirement today taxed at possibly lower rates?

Here is a closer look at the trade-off you make when you open and contribute to a Roth IRA – a trade-off many savers are happy to make.

You contribute after-tax dollars. You have already paid federal income tax on the dollars going into the account. But in exchange for paying taxes on your retirement savings contributions today, you could potentially realize great benefits tomorrow.1

 

You position the money for tax-deferred growth. Roth IRA earnings aren’t taxed as they grow and compound. If, say, your account grows 6% a year, that growth will be even greater when you factor in compounding. The earlier in life that you open a Roth IRA, the greater compounding potential you have.2

  

You can arrange tax-free retirement income. Roth IRA earnings can be withdrawn tax-free as long as you are age 59½ or older and have owned the IRA for at least 5 years. (That 5-year clock starts on January 1 of the tax year in which you make your initial Roth IRA contribution.)3

The IRS calls such tax-free withdrawals qualified distributions. They may be made to you, to your estate after you are deceased, and/or to a beneficiary. (If you die before the Roth IRA meets the 5-year rule, your IRA beneficiary will see the IRA earnings taxed until it is met.)4

If you withdraw money from a Roth IRA before you reach age 59½, it is called a nonqualified distribution. If you do this, you can still withdraw an amount equivalent to your total IRA contributions to that point tax-free and penalty-free. If you withdraw more than that amount, though, the rest of the withdrawal may be fully taxable and subject to a 10% IRS penalty as well. (If you are younger than 59½ and have owned a Roth IRA for at least 5 years, you are allowed to withdraw 100% of your contributions and up to $10,000 of IRA earnings tax- and penalty-free to buy a principal residence, assuming the buyer has not owned a home within the past 2 years.)1,3

You never have to make a withdrawal. When you own a traditional IRA, you must start pulling money out of it in your in your seventies. These withdrawals are called Required Minimum Distributions (RMDs), and the amount is calculated for you using an IRS formula. These forced withdrawals saddle some traditional IRA owners with tax problems. In contrast, Roth IRA owners never have to take RMDs. They are never required to take a penny out of their IRAs.1

    

Withdrawals don’t affect taxation of Social Security benefits. If your total taxable income exceeds a certain threshold – $25,000 for single filers, $32,000 for joint filers – then your Social Security benefits may be taxed. (These limits are not adjusted for inflation, incidentally.) An RMD from a traditional IRA represents taxable income, and may push retirees over the threshold – but a qualified distribution from a Roth IRA isn’t taxable income, and doesn’t count toward it.5

 

You can direct Roth IRA assets into many different kinds of investments. Invest them as aggressively or as conservatively as you wish – but remember to practice diversification. The range of investment choices is often broader than that offered in a typical workplace retirement plan.1

 

You can shift dividend-producing investments into a Roth IRA from a taxable account. As dividends are being taxed at higher rates in 2013, keeping dividend-producing stocks out of a taxable account has definite virtues.

 

You can potentially “stretch” the assets. If an original Roth IRA owner passes away after owning the IRA for at least five years, then its earnings can be withdrawn tax-free by its beneficiaries. (Relevant estate taxes may need to be paid, of course.) If a Roth IRA beneficiary is not a spouse, then other factors come into play: that beneficiary cannot contribute to the inherited Roth IRA, or combine it with an IRA he or she owns. The non-spouse beneficiary can decide to a) receive a distribution of 100% of the inherited Roth IRA assets by December 31st of the fifth year following the year of the IRA owner’s death, or b) receive periodic payments from the IRA over the course of his or her life, an option which may potentially be “stretched” (given proper planning) and extended to subsequent beneficiaries.6

 

You have 16 months to make a Roth IRA contribution for a given tax year. For example, IRA contributions for the 2012 tax year may be made up until April 15, 2013. While April 15 is the annual deadline, many IRA owners who make lump sum contributions for a given tax year make them as soon as that year begins, not in the following year. Making your Roth IRA contributions earlier gives the funds in the account more time to grow and compound with tax deferral.1

Who can open a Roth IRA? Anyone with earned income (and that includes a minor).1

How much can you contribute to a Roth IRA annually? The 2013 contribution limit is $5,500, with an additional $1,000 “catch-up” contribution allowed for those 50 and older. (The annual contribution limit is adjusted periodically for inflation.)7

 

You can keep making annual Roth IRA contributions all your life. You can’t make annual contributions to a traditional IRA once you reach age 70½.7

Does a Roth IRA have any drawbacks? Actually, yes. One, you will generally be hit with a 10% penalty by the IRS if you withdraw Roth IRA funds before age 59½ or you haven’t owned the IRA for at least five years. (This is in addition to the regular income tax you will pay on the funds withdrawn, of course.) Two, you can’t deduct Roth IRA contributions on your 1040 form as you can do with contributions to a traditional IRA or the typical workplace retirement plan. Three, you might not be able to contribute to a Roth IRA as a consequence of your filing status and income; if you earn a great deal of money, you may be able to make only a partial contribution or none at all.3,7

Rollovers are permitted if you make too much to contribute. Even if your income prevents you from funding a Roth IRA, you can still roll traditional IRA assets into a Roth with the help of a financial professional. While this is a taxable event, you may realize significant long-term financial benefits as a result of it – tax-free retirement income withdrawals, and the potential for some of the Roth IRA assets to pass tax-free to your heirs with further growth and compounding. You also will gain the relief of never having to take an RMD each year.8

All this may have you thinking about opening up a Roth IRA or creating one from existing IRA assets. A chat with the financial professional you know and trust will help you evaluate whether a Roth IRA is right for you given your particular tax situation and retirement horizon.

This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations.

1 – http://www.kiplinger.com/article/retirement/T046-C006-S001-8-reasons-you-need-a-roth-ira-now.html [4/5/12]

2 – http://www.nj.com/business/index.ssf/2013/01/biz_brain_are_roth_iras_really.html [1/21/13]

3 – http://www.smartmoney.com/taxes/income/when-roth-ira-withdrawals-arent-taxfree-1293571638217/ [12/29/10]

4 – http://www.hrblock.com/free-tax-tips-calculators/tax-help-articles/Retirement-Plans/Early-Withdrawal-Penalties-Traditional-and-Roth-IRAs.html [1/2/13]

5 – http://www.investmentnews.com/article/20121216/REG/312169988 [12/16/12]

6 – http://www.investorguide.com/article/11816/understanding-the-tax-ramifications-of-an-inherited-roth-ira/ [1/8/13]

7 – http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-IRA-Contribution-Limits [11/28/12]

8 – http://www.boston.com/business/personalfinance/articles/2012/05/20/roth_ira_conversion_not_for_everybody/ [5/20/12]

This material was prepared by Peter Montoya Inc, and does not necessarily represent the views of John Jastremski, and The Retirement Group or FSC Financial Corp. This information should not be construed as investment advice. Neither the named Representatives nor Broker/Dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information or call 800-900-5867.


The Retirement Group is not affiliated with nor endorsed by fidelity.com, netbenefits.fidelity.com, hewitt.com, resources.hewitt.com, access.att.com, ING Retirement, AT&T, Hughes, Northrop Grumman, Raytheon, ExxonMobil, Glaxosmithkline, Merck, Qwest, Chevron,  Pfizer, Verizon, Bank of America, Alcatel-Lucent or by your employer. We are an independent financial advisory group that specializes in transition planning and lump sum distribution. Please call our office at 800-900-5867 if you have additional questions or need help in the retirement planning process.

John Jastremski is a Representative with FSC Securities and may
be reached at http://www.theretirementgroup.com.

Economic update 4/1

SOLID GAINS IN HOUSEHOLD SPENDING, INCOME

According to the latest Commerce Department report, household spending was up 0.7% in February (the largest gain in five months) while consumer incomes jumped 1.1%. February’s 35-cent climb in gasoline prices influenced the first number, while an 11.9% surge in dividends influenced the second. Still, consumer spending rose 0.3% in inflation-adjusted terms. The personal savings rate improved to 2.6%.1,2

CONSUMER POLLS TELL DIFFERENT STORIES   

The University of Michigan’s final consumer sentiment survey for March came in at 78.6, improving by a full point from the end of February. The Conference Board’s March survey of consumer confidence presented a strikingly different result: it dropped to 59.7 from February’s 68.0 mark. The CB said the sequester had a negative influence, while the University of Michigan cited stock market highs, March’s lower gas prices and the housing recovery as positive factors.1,2

 

SMALLER INVENTORY MAY HAVE CURBED HOME SALES

New home sales fell 4.6% in February, according to the Census Bureau; the National Association of Realtors noted a 0.4% decline in pending home sales for that month. Reduced inventory appears to have been a factor. The January S&P/Case-Shiller Home Price Index showed a one-month gain of 1.0%.2

FINAL Q4 GDP +0.4%; HARD GOODS ORDERS JUMP

This last estimate from the Commerce Department still makes Q4 2012 growth the smallest in any quarter since 2011. More big ticket items were ordered in February: durable goods orders soared 5.7% in that month after falling 3.8% in January.2,3

A RECORD CLOSE FOR THE S&P 500

A terrific quarter wrapped up Thursday with the S&P settling at 1,569.19, the Dow at 14,578.54 and the NASDAQ at 3,267.52. March was the fifth straight positive month for both the S&P and NASDAQ. Last week’s gains: Dow, 0.46%; NASDAQ, 0.69%; S&P, 0.79%. Gold ended the quarter at $1,595.70, losing 4.8% in three months; oil settled Thursday at $97.23, rising 5.9% in the quarter.4,5

THIS WEEK: Monday sees the release of the Institute for Supply Management’s March manufacturing PMI. Tuesday, the federal government presents data on March auto sales and February factory orders. ISM’s service sector PMI arrives Wednesday, along with earnings from ConAgra and Monsanto. Thursday, the European Central Bank and Bank of England make policy announcements. The Labor Department’s March employment report comes out on Friday.

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

+11.25

+11.06

+3.87

+7.90

NASDAQ

+8.21

+5.24

+8.90

+13.86

S&P 500

+10.03

+11.64

+3.86

+8.17

REAL YIELD

3/28 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

-0.64%

-0.11%

1.13%

2.09%

 

Sources: cnbc.com, bigcharts.com, treasury.gov – 3/28/134,6,7,8

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.

These returns do not include dividends.

This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

 

Citations.

1 – http://www.nytimes.com/reuters/2013/03/29/business/29reuters-consumer-spending.html [3/29/13]

2 – http://www.csmonitor.com/Business/2013/0329/Strong-rise-in-consumer-spending-caps-good-week-in-economic-news [3/29/13]

3 – http://www.foxbusiness.com/economy/2013/03/26/durable-goods-orders-big-ticket-items-durable-goods/ [3/26/13]

4 – http://www.cnbc.com/id/100600350 [3/28/13]

5 – http://www.proactiveinvestors.com/companies/news/42162/oil-caps-longest-winning-streak-of-2013-gold-drops-42162.html [3/28/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F28%2F12&x=0&y=0 [3/28/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F28%2F12&x=0&y=0 [3/28/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F28%2F12&x=0&y=0 [3/28/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F28%2F08&x=0&y=0 [3/28/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F28%2F08&x=0&y=0 [3/28/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F28%2F08&x=0&y=0 [3/28/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F28%2F03&x=0&y=0 [3/28/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F28%2F03&x=0&y=0 [3/28/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F28%2F03&x=0&y=0 [3/28/13]

7 – http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [3/28/13]

8 – http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [3/28/13]

This material was prepared by Peter Montoya Inc, and does not necessarily represent the views Albert Aizin, and The Retirement Group or FSC Financial Corp. This information should not be construed as investment advice. Neither the named Representatives nor Broker/Dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information or call 800-900-5867.


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