How Much Health Care Reform Will Be Seen By 2014?

How Much Health Care Reform Will We See By 2014?

Can the federal government follow through on its ambitions?

In 2014, we were supposed to see profound health care reform per the 2011 Affordable Care Act – but how much of that reform will roll out on time?

The federal government has already conceded that it can’t enforce the employer mandate portion of the Affordable Care Act by 2014. On July 2, the Obama administration gave businesses with 50 or more employees a 1-year reprieve from having to provide affordable health insurance to full-time employees (people working 30 or more hours weekly).1,2

So how about the state health insurance exchanges that are scheduled to be up and running by October 1? How about the planned expansion of Medicaid? Will these reforms also be delayed? The House of Representatives has scheduled a mid-July vote to attempt to do just that. Lastly, do small businesses have any enthusiasm about health care reform?3

What’s the progress on the state exchanges? The progress report isn’t good. As the Wall Street Journal noted last month, even the Government Accountability Office thinks that a “timely and smooth implementation of the exchanges by October 2013 cannot yet be determined.4

Small businesses and the self-employed are supposed to be able to find affordable coverage through these online marketplaces. The small business exchange rollout has already encountered glitches. In some states, only one insurance carrier has shown interest in them; the state of Washington is simply postponing its exchange because no carrier wanted to provide small business plans statewide. In 2014, businesses will be asked to select and offer one insurance plan from the exchanges to their workers. In the initial conception, they could elect to offer employees multiple insurance options. The federal Centers for Medicare & Medicaid Services are overseeing the implementation of the individual exchanges in 33 states; 17 other states and the District of Columbia are setting up their own exchanges.4

Individual exchanges in 34 states will be created via the federal government – but on July 5, it quietly granted another concession. The Department of Health and Human Services relaxed a requirement for the 16 other states and the District of Columbia to verify the income and health coverage status of applicants to those individual exchanges. These 17 exchanges will only check the income eligibility of applicants at random next year, and they will wait until 2015 to check if applicants are getting employer-sponsored health benefits.5

The WSJ learned that states running their own exchanges had missed, on average, 44% of the interim deadlines for these projects through the end of March. Still, DHHS chief technology officer Todd Park told CNBC that the state exchanges are “on track” and will allow open enrollment beginning October 1.4,6

Where do things stand state-by-state with the Medicaid expansion? Just 23 states and the District of Columbia have signed up for it. (You’ll recall that the Supreme Court allowed states to opt out of it when it ruled that the ACA was constitutional in 2012.) In these states and in Washington D.C., those with earnings of up to 138% of the federal poverty level may qualify for Medicaid (that works out to earnings of $15,856 for an individual and $32,499 for a family of four). The expansion of Medicaid in these states doesn’t require the federal government to recreate the wheel, but delays could happen in other ways. In Michigan, for example, state legislators have passed their own version of a Medicaid expansion requiring a 90-day federal review process, which will put Michigan weeks behind in enrolling participants in expanded Medicaid coverage.6,7

Do employers even care about the ACA’s incentives? The ACA opens the door for employers to markedly increase the percentage of employee benefits represented by wellness incentives. Yet in a survey of 1,000+ employers conducted by Virgin HealthMiles and Workforce Magazine, just 25.8% of companies surveyed said they intended to draw on wellness provisions of the ACA to enhance employee health benefit offerings. A lack of information about such incentives may be a factor here for both employers and employees. In fact, the survey also polled almost 10,000 workers at these companies and found that while 87.2% looked at health and wellness packages when considering a job, half of the respondents said they were “not aware of, or need to know more about, health and wellness programs offered by employers.”8

Frankly, what’s to get excited about? An analysis from insurance consulting firm Millman says that individual premiums could grow 25-40% costlier due to the ACA with small market group premiums rising 6-12%. On the other hand, Humana estimates that by renewing individual and group health plans before 2014, a workplace with predominantly younger and healthier employees could see rates rise by 15% or less. Unsurprisingly, a number of major carriers are expected to offer early renewals.9

President Obama noted the possibility of “glitches and bumps” along the way to the ACA’s full implementation. They are evident now.

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 – kansascity.com/2013/07/03/4328512/qa-on-impact-of-health-law-delay.html [7/3/13]

2 – money.cnn.com/2013/07/03/smallbusiness/obamacare-employer-mandate/index.html [7/3/13]

3 – abcnews.go.com/blogs/politics/2013/07/house-to-vote-next-week-to-delay-individual-mandate/ [7/11/13]

4 – online.wsj.com/article/SB10001424127887324520904578553871314315986.html [6/19/13]

5 – reuters.com/article/2013/07/08/us-usa-healthcare-obamacare-idUSBRE96700R20130708 [7/8/13]

6 – webmd.com/health-insurance/news/20130711/is-us-health-care-reform-on-track-for-2014 [7/11/13]

7 – lansingstatejournal.com/article/20130707/NEWS04/307070073/Clock-ticking-Michigan-Medicaid-expansion [7/7/13]

8 – benefitspro.com/2013/06/03/employers-ignoring-ppaca-wellness-incentives [6/3/13]

9 – benefitspro.com/2013/05/31/putting-off-ppaca-with-early-plan-renewals#.UdQRNFW13Vk.email [5/31/13]

The Retirement Group is not affiliated with nor endorsed by fidelity.com, netbenefits.fidelity.com, hewitt.com, resources.hewitt.com, access.att.com, Pfizer,  Northrop Grumman, Hughes, Glaxosmithkline, Qwest, Verizon, AT&T,  ExxonMobil, Bank of America,  Merck,  ING Retirement, Raytheon,  Chevron, 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 maybe reached at http://www.theretirementgroup.com.

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.

 

Weekly Economic Update

August 26, 2013

    

ARE COSTLIER MORTGAGES IMPACTING HOME SALES?

On Friday, the Census Bureau announced an unexpected 13.4% drop in new home purchases for July. In contrast to that news, the National Association of Realtors stated that existing home sales rose 6.5% last month. So what is the takeaway here? Most new home purchase contracts close months in the future, and many buyers of existing homes may have locked in the rates of home loans in spring. Is the dip in new home buying a direct, alarming reflection of the recent jump in mortgage rates? Will it give the Federal Reserve pause about tapering?1

LEADING INDICATORS RISE IN JULY

The 0.6% increase in the Conference Board Leading Economic Index was a nice change after its flat June reading. The LEI now stands at 96.0, edging closer to its original mark of 100. From February to July, it rose 2.0%; in the preceding six months, it rose 1.1%.2

GOLD CLIMBS BACK TOWARD $1,400

Friday’s COMEX settlement price was the highest since June: $1,395.80 per ounce. The troubling news about new home sales may have had an effect. NYMEX crude also gained $1.39 Friday, settling at $106.42.3

STOCKS REGAIN SOME MOMENTUM

Last week saw two unusual occurrences in the financial world: a three-hour trading interruption for the NASDAQ on Thursday, and a Federal Reserve symposium in Jackson Hole, WY without the presence of Ben Bernanke. The S&P 500 rose 0.46% in five days to settle at 1,663.50 Friday. The NASDAQ also advanced; its 1.52% weekly rise brought it to 3,657.79 at week’s end. As for the Dow, it declined 0.47% across five days to 15,010.51.4

THIS WEEK: Monday brings the July durable goods orders report from the Census Bureau. The June S&P/Case-Shiller Home Price Index and the Conference Board’s August consumer confidence poll both arrive Tuesday. Wednesday, the National Association of Realtors provides numbers on July pending home sales. The second estimate of Q2 GDP appears Thursday, courtesy of the Bureau of Economic Analysis; the latest initial jobless claims figures also become available. On Friday, August ends with the month’s final consumer sentiment index from the University of Michigan and the Commerce Department’s report on July consumer spending.

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

+14.55

+14.96

+5.82

+6.06

NASDAQ

+21.14

+19.79

+10.30

+10.72

S&P 500

+16.64

+18.65

+5.75

+6.75

REAL YIELD

8/23 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

0.69%

-0.62%

1.69%

2.26%

 

Sources: usatoday.com, bigcharts.com, treasury.gov – 8/23/135,6,7,8

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 – nasdaq.com/article/what-happened-to-new-home-sales-real-time-insight-cm269852 [8/23/13]

2 – tinyurl.com/lhm84lb [8/22/13]

3 – abcnews.go.com/Business/wireStory/corn-prices-drop-percent-metals-oil-rise-20041509 [8/23/13]

4 – thestreet.com/story/12017038/1/stocks-opens-higher-as-microsoft-jumps.html [8/23/13]

5 – usatoday.idmanagedsolutions.com/stocks/overview.idms?index=DJIA [8/23/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F23%2F12&x=0&y=0 [8/23/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F23%2F12&x=0&y=0 [8/23/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F23%2F12&x=0&y=0 [8/23/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F22%2F08&x=0&y=0 [8/23/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F22%2F08&x=0&y=0 [8/23/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F22%2F08&x=0&y=0 [8/23/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F22%2F03&x=0&y=0 [8/23/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F22%2F03&x=0&y=0 [8/23/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F22%2F03&x=0&y=0 [8/23/13]

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [8/23/13]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [8/23/13]

The Retirement Group is not affiliated with nor endorsed by fidelity.com, netbenefits.fidelity.com, hewitt.com, resources.hewitt.com, access.att.com, Chevron, , Northrop Grumman, Raytheon, ExxonMobil, Glaxosmithkline, Merck, Pfizer, Verizon, Hughes, Bank of America, ING Retirement, AT&T, Qwest, 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.

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.

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

 

Weekly Economic Update for 08/19/2013

CONSUMER PRICES RISE 0.2% IN JULY

That was exactly the increase that analysts surveyed by Briefing.com expected, and it was a relief after the 0.5% rise in the Consumer Price Index for June. As for July’s Producer Price Index, it was flat – a welcome contrast to June’s 0.8% jump.1

 

RETAIL SALES IMPROVE
July didn’t see as much car and truck buying as in spring, so the gain was 0.2% compared to 0.5% in May and 0.6% in June. The impressive news was the 0.5% rise in core retail sales (excluding auto, gas and construction purchases). That particular indicator hadn’t been so positive since December.2

 

HOUSEHOLD SENTIMENT SLIPS
Analysts polled by Briefing.com expected August’s preliminary University of Michigan consumer sentiment index to be unchanged from the final July reading of 85.1. Instead, it dropped to 80.0 – a 4-month low.1,3,4

 

RESIDENTIAL CONSTRUCTION INCREASES
Housing starts were up 5.9% in July, according to the Commerce Department; building permits rose 2.7% last month. Both increases were in line with the estimates of analysts surveyed by Reuters.4

A 2-WEEK LOSING STREAK ON THE STREET
Shares fell during a week in which 10-year Treasury yields hit a 2-year peak of 2.86%. The S&P 500 (-2.10% to 1,655.83), Dow (-2.23% to 15,081.47) and NASDAQ (-1.57% to 3,602.78) all pulled back. The Dow suffered its poorest week of 2013.3

 

THIS WEEK: Urban Outfitters announces Q2 results on Monday. Tuesday, Dick’s Sporting Goods, Medtronic, BHP Billiton, Home Depot, Best Buy, TJX, Barnes & Noble, JCPenney, Saks, Analog Devices and La-Z- Boy come out with earnings. Wednesday, the July 31 FOMC minutes will be released, and NAR comes out with July existing home sales numbers; earnings arrive from Target, JM Smucker, Lowe’s, Staples, American Eagle, Toll Brothers, Hewlett-Packard and L Brands. Thursday, we get a new FHFA Housing Price Index, the Conference Board’s July index of leading indicators, new initial jobless claims figures, and earnings from Abercrombie & Fitch, Gold Fields, Hormel Foods, Dollar Tree, Gamestop, Sears, Autodesk, Gap, Marvell, Ross Stores, Aeropostale and Pandora. On Friday, quarterly results from Foot Locker and Ann complement July new home sales figures.

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

+15.09

+13.82

+5.87

+6.18

NASDAQ

+19.32

+17.65

+9.38

+11.17

S&P 500

+16.10

+16.98

+5.51

+6.71

REAL YIELD

8/16 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

0.68%

-0.42%

1.66%

2.36%

 

Sources: cnbc.com, bigcharts.com, treasury.gov – 8/16/133,5,6,7
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 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 – briefing.com/investor/calendars/economic/2013/08/12-16 [8/16/13]

2 – nytimes.com/2013/08/14/business/economy/july-retail-sales-rose-0-2-despite-a-drop-in-auto-sales.html [8/14/13]
3 – tinyurl.com/l27dgrz [8/16/13]
4 – reuters.com/article/2013/08/16/us-usa-economy-idUSBRE97E0KS20130816 [8/16/13]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F16%2F12&x=0&y=0 [8/16/13]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F16%2F12&x=0&y=0 [8/16/13]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F16%2F12&x=0&y=0 [8/16/13]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F15%2F08&x=0&y=0 [8/16/13]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F15%2F08&x=0&y=0 [8/16/13]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F15%2F08&x=0&y=0 [8/16/13]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F15%2F03&x=0&y=0 [8/16/13]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F15%2F03&x=0&y=0 [8/16/13]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F15%2F03&x=0&y=0 [8/16/13]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [8/16/13]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [8/16/13]

 

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, Verizon, Hughes, Merck, Pfizer, Glaxosmithkline, Bank of America, Northrop Grumman, Raytheon, ExxonMobil, Qwest, Chevron, 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.

 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.

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

Bonds and Interest Rates

A look at how one can greatly affect the other.

 Is the bond bull history? Bond titan Bill Gross called an end to the 30-year bull market in fixed income back in 2010, and he has repeated his opinion since. Legendary investor Jim Rogers predicted an end to the bond bull in 2009, and he still sees it happening. This belief is starting to become popular – the Federal Reserve keeps easing and more and more investors are leaving Treasuries for equities.1,2,3

If the long bull market in bonds has ended, the final phase was certainly impressive. During the four-year stretch after the collapse of Lehman Brothers, $900 billion flowed into bond funds and $410 billion left equities.2

In 2013, you have bulls running, an assumption that Fed money printing will start to subside and the real yield on the 10-year TIPS in negative territory. Assuming the economy continues to improve and appetite for risk stays strong, what will happen to bond investors when inflation and interest rates inevitably rise and bond market values fall?

Conditions hint at an oncoming bear market. When interest rates rise again, how many bond owners are going to hang on to their 10-year or 30-year Treasuries until maturity? Who will want a 1.5% or 2.5% return for a decade? Looking at composite bond rates over at Yahoo’s Bonds Center, even longer-term corporate bonds offered but a 3.5%-4.3% return in late March.4

What do you end up with when you sell a bond before its maturity? The market value. If the federal funds rate rises 3%, a longer-term Treasury might lose as much as a third of its market value as a consequence. It wasn’t that long ago – June 12, 2007, to be exact – when the yield on the 10-year note settled up at 5.26%.5

This risk aside, what if you want or need to stay in bonds? Some bond market analysts believe now might be a time to exploit short-term bonds with laddered maturity dates. What’s the trade-off in that move? Well, you are accepting lower interest rates in exchange for a potentially smaller drop in the market value of these securities if rates rise. If you are after higher rates of return from short-duration bonds, you may have to look to bonds that are investment-grade but without AAA or AA ratings.

If you see interest rates rising sooner rather than later, exploiting short maturities could position you to get your principal back in the short term. That could give you cash which you could reinvest in response to climbing interest rates. If you think bond owners are in for some pain in the coming years, you could limit yourself to small positions in bonds.

The Treasury needs revenue and senses the plight of certain bond owners, and in response, it has plans to roll out floating-rate notes by 2014. A floater backed by the full faith and credit of the U.S. government would have real appeal – its yield could be adjusted per movements in a base interest rate (yet to be selected by the Treasury), and you could hold onto it for a while instead of getting in and out of various short-term debt instruments and incurring the related transaction costs.6

 

Appetite for risk may displace anxiety faster than we think. In this bull market, why would people put their money into an investment offering a 1.5% return for 10 years? Portfolio diversification aside, a major reason is fear – the fear of volatility and a global downturn. That fear prompts many investors to play “not to lose” – but should interest rates rise significantly in the next few years, owners of long-term bonds might find themselves losing out in terms of their portfolio’s potential.

 

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.bloomberg.com/news/2010-10-27/fed-easing-likely-to-mark-end-of-30-year-bull-market-for-bonds-gross-says.html [10/27/10]

2 – online.wsj.com/article/SB10000872396390443884104577645470279806022.html [9/15/12]

3 – http://www.bloomberg.com/news/2013-02-07/u-s-30-year-bond-losses-pass-5-as-fed-price-gauge-rises.html [2/7/13]

4 – finance.yahoo.com/bonds/composite_bond_rates [3/27/13]

5 – http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldYear&year=2007 [2/6/13]

6 – online.wsj.com/article/SB10001424127887324590904578287802587652738.html [2/6/13]

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 maybe reached at http://www.theretirementgroup.com.

A Roth IRA’s Many Benefits

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]

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, Merck, Pfizer, Verizon, Bank of America, Alcatel-Lucent,  Chevron, Hughes, Northrop Grumman, Raytheon, ExxonMobil, Glaxosmithkline,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.

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.

 

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

Weekly Economic Update

 Weekly Economic Update

IMPRESSIVE SERVICE SECTOR GROWTH

Last month saw solid expansion in U.S. service industries, according to the July non-manufacturing PMI from the Institute for Supply Management. ISM’s latest service sector PMI came in at 56.0 compared with 52.2 in June. July’s new orders index rose 6.9% to 57.7, and July’s business activity index climbed 8.7% to 60.4.1

OBAMA: FANNIE MAE & FREDDIE MAC SHOULD GO

Last week in Phoenix, the President said that “private capital should take a bigger role in the mortgage markets” and advocated the passage of bipartisan legislation circulating in the Senate that would “end Fannie and Freddie as we know them” and create a Federal Mortgage Insurance Corporation to regulate the home financing system. Even though winding down Fannie and Freddie has widespread support, mortgage interest rates would likely rise without their credit guarantees.2,3

HOW DOES EARNINGS SEASON LOOK SO FAR?

The short answer: it looks better than many analysts had expected. Just after Friday’s close, Bloomberg reported that 447 firms in the S&P 500 had reported quarterly results; 72% of them had beaten the profit projections of analysts and 56% had exceeded sales forecasts.4

OIL & GOLD FINISH THE WEEK WITH A FLOURISH

NYMEX crude settled up at $106.03 per barrel Friday after rising 2.54% in a trading day. On the COMEX, gold ended the week at $1,314.60 an ounce, up $3.90 Friday.5

STOCKS BEAT A RETREAT

The big three all traded lower last week. The Dow went -1.49% to settle at 15,425.51 Friday, the NASDAQ went -0.80% to end the week at 3,660.11, and the S&P 500 went -1.07% to wrap up the week at 1,691.42.6

THIS WEEK: Monday brings earnings from Sysco. July retail sales numbers from the Census Bureau, a report on June business inventories and earnings from Flower Foods and Cree arrive Tuesday. Wednesday, the July Producer Price Index appears, plus earnings from Cisco, NetApp, Deere, Macy’s and NetEase. July’s Consumer Price Index comes out Thursday, along with the August NAHB Housing Market Index, numbers on July industrial output, and quarterly results from Nordstrom, Applied Materials, Kohl’s and Wal-Mart. Friday, the initial August consumer sentiment index from the University of Michigan appears, along with numbers on July housing starts and building permits.

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

+17.71

+17.17

+6.29

+6.78

NASDAQ

+21.22

+21.25

+10.32

+12.26

S&P 500

+18.60

+20.57

+6.10

+7.30

REAL YIELD

8/9 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

0.33%

-0.58%

1.72%

2.27%

Sources: cnbc.com, bigcharts.com, treasury.gov – 8/9/136,7,8,9

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

These returns do not include dividends.

Please feel free to forward this article to family, friends or colleagues.
If you would like us to add them to our distribution list, please reply with their address.
We will contact them first and request their permission to add them to our list.
«RepresentativeDisclosure»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 – ism.ws/ISMReport/NonMfgROB.cfm [8/5/13]

2 – nytimes.com/2013/08/07/us/politics/obama-fannie-mae-freddie-mac.html [8/7/13]

3 – csmonitor.com/Business/new-economy/2013/0808/If-Obama-eliminates-Fannie-Mae-Freddie-Mac-will-mortgage-rates-go-up [8/8/13]

4 – bloomberg.com/news/2013-08-09/u-s-stock-index-futures-decline-monster-beverage-drops.html [8/9/13]

5 – reuters.com/finance/commodities [8/9/13]

6 – tinyurl.com/luqsm63 [8/9/13]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F9%2F12&x=0&y=0 [8/9/13]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F9%2F12&x=0&y=0 [8/9/13]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F9%2F12&x=0&y=0 [8/9/13]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F8%2F08&x=0&y=0 [8/9/13]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F8%2F08&x=0&y=0 [8/9/13]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F8%2F08&x=0&y=0 [8/9/13]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F8%2F03&x=0&y=0 [8/9/13]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F8%2F03&x=0&y=0 [8/9/13]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F8%2F03&x=0&y=0 [8/9/13]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [8/9/13]

9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [8/9/13]

This material was prepared by Peter Montoya Inc, and does not necessarily represent the views of John Jastremski, Jeremy Keating, Erik J Larsen, Frank Esposito, Patrick Ray, Robert Welsch, Michael Reese, Brent Wolf, Andy Starostecki 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, Verizon, Bank of America, Raytheon, ExxonMobil, Glaxosmithkline, Merck, Pfizer, Alcatel-Lucent, AT&T, Qwest, Chevron, Hughes, Northrop Grumman, 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.

Weekly Economic Update

WEEKLY ECONOMIC UPDATE

JOBS REPORT SENDS MIXED SIGNALS

Unemployment sank to a 4½-year low of 7.4% last month, even as the pace of hiring declined a bit from spring. The Labor Department’s July report showed non-farm payrolls expanding by 162,000 jobs, with retail, bar and restaurant hires accounting for most of the gain. The ranks of the self-employed grew 2.6% last month. With jobs data like this, some analysts are wondering if the Federal Reserve will reconsider its plan to reduce asset purchases later this year.1

HOUSEHOLD SPENDING MEETS EXPECTATIONS

Consumer spending rose 0.5% in June, matching the consensus forecast of economists polled by Reuters; consumer incomes grew 0.3%. The Commerce Department also said the economy grew at a 1.7% annual pace in Q2, up from 1.1% in Q1. July’s Conference Board consumer confidence index came in at 80.3 last week; economists polled by MarketWatch had expected a reading of 81.1.2,3

ISM FINDS JUMP IN MANUFACTURING GROWTH

The Institute for Supply Management’s manufacturing index hit 55.4% in July, much improved from 50.9% in June. Economists surveyed by MarketWatch had anticipated a 52.0 reading.3

HOME SALE CONTRACTS DECREASE, BUT PRICES RISE

The National Association of Realtors said pending home sales dipped 0.4% for June after rising 5.8% for May. May’s edition of the S&P/Case-Shiller Home Price Index offered better news, however: a 12.2% overall annualized gain.3

MORE RECORDS SET ON WALL STREET

On Friday, the S&P 500 settled at 1,709.67 – its highest close ever – thanks to a 1.07% weekly advance. The Dow closed at 15,658.36 Friday, the NASDAQ at 3,689.59; they respectively gained 0.64% and 2.12% last week.4,5

THIS WEEK: ISM’s July non-manufacturing PMI arrives Monday, along with earnings reports from HSBC, Tyson Foods, Jamba, Fidelity and Scripps. Q2 results from Molson Coors, OfficeMax, Starwood Properties, CVS and Fossil appear Tuesday. Wednesday, earnings reports arrive from Novatel, Time Warner, Rosetta Stone, Prudential and Ralph Lauren. Thursday brings the latest initial claims numbers and earnings from Priceline, Sports Chalet, Nvidia, T-Mobile and Orbitz. On Friday, we get the Census Bureau’s June wholesale inventories report and the latest inflation and industrial production data from China.

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

+19.49

+21.58

+7.65

+7.11

NASDAQ

+22.19

+26.80

+11.93

+11.51

S&P 500

+19.88

+25.25

+7.13

+7.44

REAL YIELD

8/2 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

0.42%

-0.69%

1.63%

2.40%

 

«RepresentativeDisclosure»

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 – tinyurl.com/mjef2t3 [8/2/13]

2 – tinyurl.com/lh438e5 [8/2/13]

3 – marketwatch.com/Economy-Politics/Calendars/Economic [8/1/13]

4 – tinyurl.com/mqc7vx6 [8/2/13]

5 – usatoday.com/money/markets/overview/ [8/2/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F2%2F12&x=0&y=0 [8/2/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F2%2F12&x=0&y=0 [8/2/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F2%2F12&x=0&y=0 [8/2/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F1%2F08&x=0&y=0 [8/2/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F1%2F08&x=0&y=0 [8/2/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F1%2F08&x=0&y=0 [8/2/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F1%2F03&x=0&y=0 [8/2/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F1%2F03&x=0&y=0 [8/2/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F1%2F03&x=0&y=0 [8/2/13]

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [8/2/13]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [8/2/13]

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.