facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast blog search brokercheck brokercheck

The Best of What They Said and I Read Week Ending 4/22/2018

Short excerpts from articles I found interesting.

I may not agree with the author and the following material is not intended as investment advice.

The Wall Street Journal – April 18, 2018 – Where Retirees Underestimate Spending – by Neil Templin

“…Big-ticket periodic items. Would-be retirees often meticulously estimate day-to-day expenses, but forget to factor in more periodic, and mostly predictable, expenses like a new car or a new roof. And those big-ticket items inevitably blow holes in their budgets…”

“…Entertainment. Many retirees are surprised at how much their entertainment costs rise when they stop working…Instead of working five or six days a week and playing one, it can be the opposite…Americans age 65 to 74 spent an average $5,832 on entertainment in 2015, according to a study from the Employment Benefit Research Institute…Entertainment spending declines with age; people 85 and over in the study spent $2,232 on average.”

“…Living a long life. One of the biggest mistakes people make in estimating retirement expenses is underestimating how long they will live. The average 65-year-old in the U.S., for example, is likely to live an additional 19.4 years…Obviously, the longer the life, the more the spending. It can be a good problem to have—but one that surprises too many people.  “Everybody worries about dying young,” says Prof. David Littell of the American College of Financial Services. “People should be more worried about living too long.”

 Barron’s  – April 21, 2018 – Battered Dow Ekes Out 103-Point Gain for Week by Ben Levisohn

“…The Standard & Poor’s 500 index started off the week with three days of gains, as earnings appeared ready to lift stocks out of their doldrums.  But the S&P 500 hadn’t managed a perfect week since the one ended Feb 16—and last week’s spike in the 10-year Treasury yield to 2.95% from 2.83% the previous Friday ensured that it wouldn’t happen now. That was the largest one-week rise in the 10-year yield since Feb. 2, the day the selloff in the market really gained steam following faster-than-expected wage growth in January’s payrolls report...”

“…The Dow Jones Industrial Average advanced 102.80 points, or 0.4%, to 24,462.94, while the S&P 500 rose 0.5%, to 2670.14. The Nasdaq Composite gained 0.6%, to 7146.13…It’s been just 84 days since the index hit its high of 2872.87 on Jan. 26.”

U.S. Global Investors – April 20, 2018 – Investor Alert – by Frank Holmes

“…Since its low of $26 per barrel in February 2016, the price of West Texas Intermediate (WTI) crude has surged nearly fivefold and is currently at its highest level in more than three years…Yesterday, WTI tested resistance at $70, a level we haven’t seen since November 2014…Aluminum is likewise enjoying a strong rally, jumping sharply more than 23 percent since the White House announced sanctions against select Russian firms and oligarchs in response to the Eastern European country’s alleged interference during the 2016 presidential election…”

“…In five years, the U.S. government is forecast to have a worse debt profile than Italy, the perennial poor man of the G-7 industrial nations. The U.S. debt-to-GDP ratio is projected to widen to 116.9 percent by 2023 while Italy’s is seen narrowing to 116.6 percent, according to the latest data from the IMF. The U.S. will also place ahead of both Mozambique and Burundi in terms of the weight of its fiscal burden.”

Get Acquainted meeting

We offer a complimentary 45 minute “Get Acquainted” meeting. 

Contact Us