Retirement Planning Advice and Financial Related Education by Barry Unterbrink, Chartered Retirement Planning Counselor

Friday, June 08, 2018

May's Markets Review - Two New Programs to Consider

May’s financial performance in the markets was good to great, overall.

Stocks rose 1.5% to 5% depending on the index measured. Big stocks rose the least; the Dow and S&P 500 tallied +1.4% to +2.5%, while the Nasdaq Composite ran ahead over 5%. The chief reason: Big technology names such as Facebook, Netflix, and Apple all shot ahead between 11%-14% in May, thus supercharging the NASDAQ index.

Bonds did well too, as interest rates fell back from their highs (falling rates means higher bond prices).

5 year Treasury Notes ended May with a 2.66% yield, while the 10 year was 2.82% and the long 30-year Bond paid 2.99%. For uninvested cash, we recommend a couple short/intermediate term bond ETF’s that earn 3% to near 4% interest.

Our favored commodity, Gold pulled back about 1-1/2 percent, as the yellow metal declined $14 to $1,297 per ounce. Gold is even for this year thus far.

If you’ve been a reader here for a while, you will know that I do not recommend individual stocks. We use groups of stocks, called Exchange-Traded Funds (ETF’s) which cover a broad sector of the U.S. stock market.

Technology, Financials, Energy – are examples of these ETF’s. There are 10 in total. We rotate these sectors according to their performance each month. Technology and Energy are owned for June. We feel this is a safer way to manage money, as there is less single-issue risk. Why not use mutual funds, you may ask? Good point, but mutual funds are very actively managed – and that comes at a price – in trading costs and operating expenses that are deducted from your fund values. Mutual Fund fees may average near 1%-1.2% per year, vs. the ETF fees of 1/5% to ½% per year. ETF’s are the new mutual fund for many cost conscious investor now-a-days.

We recommend that you continue to have a diversified portfolio of stocks, bonds, and some Gold. And, consider some safe (no loss) savings instruments also such as fixed annuities and CD’s. Rates are rising here too; a plus for older savings-oriented folks.

2 New Strategies Offered this Summer

I have been researching and kicking the tires - with some professional financial firms during the past few months - that offer exceptional strategies that may greatly interest you and your money. Next month, I will get an invitation out to you on more details and how you can participate via my on-line webinar on this.

The first program is a system to pay down your debts much faster that you are now, using the same spending you are using now. Credit card, student loans, mortgage, etc. Paying down debt quicker frees up cash flow for more options with your money – agreed? And gets you on the road to asset accumulation / savings much faster too.

The second program is very unique – and involves using your qualified retirement money, IRA’s, 401k, etc. and – with the I.R.S. blessing – restructuring your money so that it falls outside the normal distribution and investment limitation rules of your current plan. It’s a bit complex, and requires qualifications from you the investor. Stay tuned for more information, or e-mail me and I will make sure you get advance notice.

Have a nice and safe weekend!
~Barry Unterbrink
 954.719.1151 w
 954.560.3622 m

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