Debunking 401(K) Myths

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DEBUNKING 401(K) MYTHS

Myth #1: “We’re all set”

Over our years working with business owners and employers, we’ve encountered a number of common myths that plan sponsors hold on to despite proof to the contrary. These myths can be harmful to plan sponsors and employees alike, and here we aim to debunk some of the most frequently occurring offenders.

 Myth #1: “We’re all set.” Plan sponsors use this phrase often to describe their level of satisfaction with their plan. It also serves as a roadblock to any discussion regarding potential improvements to their retirement plan offerings. “We’re all set” – “everything is fine; nothing needs to be changed.” Unfortunately, this is generally anything but the case. There are two key elements that demand careful examination: fiduciary awareness and retirement readiness.

 FIDUCIARY AWARENESS

Nearly half (49%) of plan sponsors don’t recognize their status as fiduciaries.[1] Unawareness of your position and/or responsibilities is a good way to get hit with unexpected complications down the road. Here’s a quick guide to help you determine whether you are a fiduciary, and if so, what your responsibilities are:
 

 Am I a fiduciary?

  1. Are you named in plan documents as a fiduciary?
     
  2. Do you exercise control over the management or administration of the plan or its assets?
     
  3. Do you provide ongoing investment management or advice to the plan or plan participants?
     
  4. Do you select or supervise other plan fiduciaries?
     
  5. Do you sit on a committee that manages the plan?
     

 What are my responsibilities as a fiduciary?[2]

  1. Act solely in the interest of plan participants and their beneficiaries.
     
  2. Prudently carry out your duties.
     
  3. Follow plan documents (unless inconsistent with ERISA).
     
  4. Diversify plan investments.
     
  5. Pay only reasonable plan expenses.
     

RETIREMENT READINESS

How prepared are your employees to retire? According to BlackRock’s annual DC Survey, plan participants are almost universally confident about their overall financial situation, but over half of plan sponsors are concerned: [3]

Retirement Readiness.jpg

This startling gap in confidence might stem from many factors. Many employees might simply not know enough to accurately evaluate their financial situation; 81% of Americans say they aren’t sure how much money they'll actually need in retirement. [4]  Alternately, they might believe that plan sponsors are solely responsible for their retirement: during a recent employee education meeting, we were approached by an employee who asked, “isn’t the company required to pay for everything?” After addressing the employees’ misconceptions, we worked with the plan sponsor to implement automatic plan design features and rolled out a more robust employee education program to help motivate savings.

 

Plan Design

As a plan sponsor, you control one of the most powerful savings vehicles available to your employees. To help your employees harness that power, you might consider enhancing your plan with Auto-Increase, or an enhanced employer matching formula.

Auto-Increase allows participants to automatically increase contributions little by little each year– typically by 1%. One percent per year may not seem like much, but it adds up over time!

 *This illustration uses a hypothetical 7% rate of return. It is not representative of any specific situation and your results will vary.The hypothetical rate of return used does not reflect the deduction of fees and charges inherent to investing.

*This illustration uses a hypothetical 7% rate of return. It is not representative of any specific situation and your results will vary.The hypothetical rate of return used does not reflect the deduction of fees and charges inherent to investing.

If your plan uses a typical match formula of dollar-for-dollar up to 3% of pay, you might want to consider Stretching the Match. For example, you could match fifty cents on the dollar up to 6% of pay. This simple scenario would increase employee savings while keeping employer contributions the same (3% of pay).

 

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Employee Education

Employee education sessions can be effective! The secret is to make them relevant to your employees: use the time to get them excited about financial wellness programs and incentives, incorporate retirement readiness concepts, discuss auto-features and match formulas, and even debunk some common 401(k) myths (e.g. “isn’t the company required to pay for everything?”)

Understanding and fulfilling your fiduciary duties and moving your employees toward retirement readiness are two ways to help ensure that your plan truly is “all set.” But these aren’t “one-and-done” tasks. We work closely with employers to help them meet their fiduciary duties and keep their employees educated and engaged. For more information on how Financial Management Network can help you build a prudent fiduciary process and dynamic employee education, contact us today!

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Investment advisory services are offered by Financial Management Network, Inc. (“FMN”) and securities offered through FMN Capital Corporation, (“FMNCC”), member FINRA & SIPC.
The Top DC Advisor Firms is an independent listing produced annually (September 2017) by The National Association of Plan Advisors(NAPA). The NAPA Top DC Advisor Firms is a compilation of leading individual advisor Firms, or teams, ranked by DC assets under advisement. This award does not evaluate the quality of services provided to clients and is not indicative of this advisor’s future performance. Neither the advisors nor their parent firms pay a fee to NAPA in exchange for inclusion on this list.
The “Top 100 Retirement Plan Advisers 2016” list by PLANADVISER Magazine recognizes individuals, teams, and multi-office teams according to quantitative measures, including the dollar value of qualified plan assets under advisement as well as the number of plans under advisement. Nominations were solicited online from retirement plan advisers, their employers and/or broker/dealers, and plan sponsors, as well as from working partners of these advisers, including investment vendors, accountants and attorneys, and pension administrators.
The Financial Times 401 Top Retirement Plan Advisors is an independent listing produced by the Financial Times (September 2016). The FT 401 is based on data gathered from financial advisors, regulatory disclosures, and the FT’s research. The listing reflects each advisor’s status in seven primary areas, including DC plan assets under management, growth in DC plan business, specialization in DC plan business, and other factors. This award does not evaluate the quality of services provided to clients and is not indicative of this advisor’s future performance. Neither the advisors nor their parent firms pay a fee to Financial Times in exchange for inclusion in the FT 401.

 

Could Education Debt Shrink Your Social Security Income? $1.1 billion has been garnished from retirement benefits to pay back old student loans.

Provided by Ryan Maroney, CFP®


Do you have a federal student loan that needs to be repaid? You may be surprised at what the government might do to collect that money someday, if it is not paid back soon enough.
   
If that debt lingers too long, you may find your Social Security income reduced. So far, the Department of the Treasury has carved $1.1 billion out of Social Security benefits to try and reduce outstanding student loan debt. It has a long way to go: of that $1.1 billion collected, more than 70% has simply been applied to fees and interest rather than principal.1,2
 
How many baby boomers & elders are being affected by these garnishments? Roughly 114,000 Social Security recipients older than 50. In the big picture, that number may seem insignificant. After all, 22 million Americans have outstanding federal student loans.1,2,3
   
What is not insignificant is how quickly the ranks of these seniors have increased. According to the Government Accountability Office, the number of Americans older than 65 who have been hit with these income cuts has risen 540% since 2006.2
 
A college education is no longer an experience reserved for the young. As older adults have retrained themselves for new careers or sought advanced degrees, they have assumed more education debt. 
  
The financial strain of this mid-life college debt is showing. Since 2005, the population of Americans aged 65 or older with outstanding education loans has grown 385%. The GAO says roughly three-quarters of those loans have been arranged for the borrower’s own higher education.2
  
Separately, data from the Federal Reserve Bank of New York shows that student loan balances held by Americans older than 60 grew from $6 billion in 2004 to $58 billion in 2014. No other age group saw education debt accumulate so dramatically in that time.1
 
In 2015, the GAO found that a majority of federally backed student loans held by borrowers older than 75 were in default – that is, a year or more had transpired without a payment. Overall, just one in six federal student loans are in default.1,3
  
Paying off a student loan in retirement is a real challenge. Household cash flow may not readily allow it, and the debt may not be top of mind. Even declaring bankruptcy may not relieve you of the obligation. The Treasury has the authority to garnish as much as 15% of your Social Security income to attack the debt, and it can claim federal tax refunds and wages as well.1
  
Is this the right way to solve this problem? It seems like cruel and unusual financial punishment to some. Taking a 5%, 10%, or 15% bite of a retiree’s monthly Social Security benefit is harsh – possibly harsh enough to induce poverty.
  
In 2015, more than 67,000 people age 50 and older carrying unsettled federal student loans had their Social Security benefits taken below the poverty level because of these income reductions. A Social Security recipient is allowed to retain at least $750 of a garnished monthly benefit – but that $750 minimum has never been adjusted for inflation since that rule was established in 1996. Last year, the federal government defined the poverty level at monthly income of $990 for an individual.2
  
Some people file for Social Security without knowing that they have unpaid student loans. As the GAO notes, 43% of the borrowers that had their Social Security incomes docked because of this issue had loans originated at least 20 years earlier.2
   
Is some forgiveness in order? That can be debated. A student loan is not a gift, and a student borrower is tasked to understand its terms. On the other hand, it is a pity to see people go back to school or train themselves for new careers at 40 or 50 only to carry student debt past their peak income years into retirement.  
     
Ryan Maroney, CFP® may be reached at 949-455-0300

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. 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 - time.com/money/3913676/student-debt-into-retirement/ [6/30/15]
2 - marketwatch.com/story/more-borrowers-are-losing-social-security-benefits-over-old-student-loans-2016-12-20 [12/20/16]
3 - time.com/money/4284940/student-loan-payments-debt-college/ [4/7/16]

Do Our Attitudes About Money Help or Hurt Us? We may need to change them to better our financial prospects.

Provided by: Financial Management Network

Our relationship with money is complex & emotional. When we pay a bill, go to the mall, trade in a car for a new one, hunt for a home or apartment, or pass someone seemingly poor or rich on the street, we feel things and harbor certain perceptions.

Are our attitudes about money inherited? They may have been formed when we were kids. We watched what our parents did with their money, and how they managed it. We were told how important it was – or, perhaps, how little it really mattered. Parental arguments over money may be ingrained in our memory.

This history has an effect. Some of us think of money, finance, investing, and saving in terms of getting ahead, in terms of opportunity. Others associate money and financial matters with family struggles or conflicts. Our family history is not responsible for our entire attitude about money – but it is, undoubtedly, an influence.

Our grandparents (and, in some cases, our parents) were never really taught to think of “retirement planning.” Just a century ago, the whole concept of “retiring” would have seemed weird to many Americans. You worked until you died, or until you were physically unable to do your job. Then, Social Security came along, and company pensions for retired workers. The societal expectation was that with a company pension and Social Security, you weren’t going to be impoverished in your “old age.” 

 

Very few Americans can make such an assumption today. Many are unaware of the scope of retirement planning they need to undertake. An alarming 54% of pre-retiree respondents to a 2016 Prudential Financial survey had no clue how much they needed to save for retirement. Additionally, 54% had balances of less than $150,000 in their workplace retirement plans. Have they been lulled into a false sense of security? Did they inherit the attitude that when you retire in America, Social Security and a roof over your head will be enough?1

How can pessimistic attitudes about money, saving, & investing be changed? Perhaps the first step is to recognize that we may have inherited them. Do they stem from our own experience? Or are we simply cluttering our minds with the bad experiences and negative assumptions of years ago?

Very few Americans can make such an assumption today. Many are unaware of the scope of retirement planning they need to undertake. An alarming 54% of pre-retiree respondents to a 2016 Prudential Financial survey had no clue how much they needed to save for retirement. Additionally, 54% had balances of less than $150,000 in their workplace retirement plans. Have they been lulled into a false sense of security? Did they inherit the attitude that when you retire in America, Social Security and a roof over your head will be enough?1
 
How can pessimistic attitudes about money, saving, & investing be changed? Perhaps the first step is to recognize that we may have inherited them. Do they stem from our own experience? Or are we simply cluttering our minds with the bad experiences and negative assumptions of years ago? 
    
One example of this leaps readily to mind. Earlier this year, Bankrate surveyed investors per age group and learned that just 33% of millennials (Americans aged 18-35) owned any equities, while 51% of Gen Xers did. (That actually represented a dramatic increase: in 2015, only 26% of millennials were invested in equities.)2,3
 
College loan debt and early-career incomes aside, millennials watched equity investments, owned by their parents, crash in the 2007-09 bear market. Some are quite cynical about the financial world. A 2015 Harvard University study showed that a mere 14% of respondents aged 18-29 felt that Wall Street firms "do the right thing all or most of the time” as they conduct business.3
  
How do you feel about money? What were you taught about it when you were growing up? Did your parents look at money positively or negatively? These questions are worth thinking about, for they may shape your relationship with money – and saving and investing – here and now.  

Very few Americans can make such an assumption today. Many are unaware of the scope of retirement planning they need to undertake. An alarming 54% of pre-retiree respondents to a 2016 Prudential Financial survey had no clue how much they needed to save for retirement. Additionally, 54% had balances of less than $150,000 in their workplace retirement plans. Have they been lulled into a false sense of security? Did they inherit the attitude that when you retire in America, Social Security and a roof over your head will be enough?1
 
How can pessimistic attitudes about money, saving, & investing be changed? Perhaps the first step is to recognize that we may have inherited them. Do they stem from our own experience? Or are we simply cluttering our minds with the bad experiences and negative assumptions of years ago? 
    
One example of this leaps readily to mind. Earlier this year, Bankrate surveyed investors per age group and learned that just 33% of millennials (Americans aged 18-35) owned any equities, while 51% of Gen Xers did. (That actually represented a dramatic increase: in 2015, only 26% of millennials were invested in equities.)2,3
 
College loan debt and early-career incomes aside, millennials watched equity investments, owned by their parents, crash in the 2007-09 bear market. Some are quite cynical about the financial world. A 2015 Harvard University study showed that a mere 14% of respondents aged 18-29 felt that Wall Street firms "do the right thing all or most of the time” as they conduct business.3
  
How do you feel about money? What were you taught about it when you were growing up? Did your parents look at money positively or negatively? These questions are worth thinking about, for they may shape your relationship with money – and saving and investing – here and now.  

How do you feel about money? What were you taught about it when you were growing up? Did your parents look at money positively or negatively? These questions are worth thinking about, for they may shape your relationship with money – and saving and investing – here and now.  

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. 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 - businessinsider.com/reasons-for-americas-retirement-crisis-2016-11 [11/29/16]

2 - ibtimes.com/should-you-invest-stock-market-why-millennials-might-be-missing-out-when-it-comes-2389589 [7/6/16]

3 - thestreet.com/story/13135109/1/why-millennials-dont-trust-wall-street-or-investing-in-stocks.html [5/2/15]

 

Retirement Planning for Single Parents. It is a challenge – and it must be met.

How does a single parent plan for retirement? Diligently. Regularly. Rigorously. Here are some steps that may help, whether you are just beginning to do this or well on your way.

Setting a household budget can be a wise first step. Most households live without budgets – and because of that financial inattention, some of the money they could save and invest routinely disappears. When you set and live by a budget, you discipline yourself to spend only so much and save (or invest) some of the rest. You need not track every single expense, but try and track your expenses by category. You may find money to save as a result.

Save first, invest next. If you are starting from scratch, creating an emergency fund should be the first priority. It should grow large enough to meet 6-9 months of living expenses. If no financial emergency transpires, then you will end up with a cash reserve for retirement as well as investments.

You may want to invest less aggressively than you once did. Young, married couples can take on a lot of risks as they invest. Divorcees or widowers may not want to – there can be too much on the line, and too little time left to try and recoup portfolio losses. To understand the level of risk that may be appropriate for you at this point in life, chat with a financial professional.  

There may be great wisdom in “setting it and forgetting it.” Life will hand you all manner of distractions, including financial pressures to distract you from the necessity of retirement saving. You cannot be distracted away from this. So, to ward off such a hazard, use retirement savings vehicles that let you make automatic, regular contributions. Your workplace retirement plan, for example, or other investment accounts that allow them. This way, you don’t have to think about whether or not to make retirement account contributions; you just do.

Do you have life insurance or an estate plan? Both of these become hugely important when you are a single parent. Any kind of life insurance is better than none. If you have minor children, you have the option of creating a trust and naming the trust as the beneficiary of whatever policy you choose. Disability insurance is also a good idea if you work in a physically taxing career. Name a guardian for your children in case the worst happens.1

Have you reviewed the beneficiary names on your accounts & policies? If you are divorced or widowed, your former spouse may still be the primary beneficiary of your IRA, your life insurance policy, or your investment account. If beneficiary forms are not updated, problems may result.  

College planning should take a backseat to retirement planning. Your child(ren) will need to recognize that when it comes to higher education, they will likely be on their own. When they are 18 or 20, you may be 50 or 55 – and the average retirement age in this country is currently 63. Drawing down your retirement accounts in your fifties is a serious mistake, and you should not entertain that idea. Any attempt to build a college fund should be secondary to building and growing your retirement fund.2    

Realize that your cash flow situation might change as retirement nears. Your household may be receiving child support, alimony, insurance payments, and, perhaps, even Social Security income. In time, some of these income streams may dry up. Can you replace them with new ones? Are you prepared to ask for a raise or look for a higher-paying job if they dry up in the years preceding your retirement? Are you willing to work part-time in retirement to offset that lost income? 

Consult a financial professional who has worked with single parents. Ask another single parent whom he or she turns to for such consulting, or seek out someone who has written about the topic. You want to plan your future with someone who has some familiarity with the experience, either personally or through helping others in your shoes.

Provided by Ryan Maroney, CFP®       

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. 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 - cnbc.com/2016/07/20/5-winning-money-strategies-for-single-parents.html [7/20/16]

2 - aol.com/article/2016/05/03/the-average-retirement-age-in-all-50-states/21369583/ [5/3/16]

Holiday Wrap-Up: A Look Back at 2016 Thus Far

Presented by: Ryan Maroney, CFP®

The year in brief. Investors will likely remember 2016 as a year of two momentous votes and one monetary policy decision. This year brought the Brexit referendum in the United Kingdom and a surprise presidential election victory for Donald Trump, and it now appears probable that the Federal Reserve will raise interest rates in December. As Thanksgiving week began, the S&P 500 sat comfortably near 2,200, while the Dow Jones Industrial Average pushed toward breaking 19,000. Some analysts felt both indices would post single-digit advances in 2016, but they may yet surpass those expectations – the S&P was up 7.3% YTD when Thanksgiving week started, and the Dow had advanced 8.6% YTD. Some major overseas indices were also in line for nice 2016 gains. Away from the equity markets, 2016 has been a fine year for commodities, with oil prices rebounding, and a great year for home sales. Investors approached the holidays in a bullish mood.1

Domestic economic health. Economically speaking, 2016 resembles 2015: a poor first quarter, then improved GDP in succeeding quarters. An anemic 0.8% GDP reading for Q1 preceded 1.4% growth in Q2 and a 2.9% rate of expansion in Q3 (a two-year high).2

The headline jobless rate had been at 5.0% in December 2015; by May 2016, it had descended to 4.7%. Then it rose and fell again to end up at 4.9% in October. The U-6 rate, measuring underemployment as well as unemployment, jumped 0.7% to 10.5% in January, but fell to 9.2% by October.3,4

On Main Street, the pace of consumer spending flattened in March, jumped 1.1% in April, retreated 0.1% in August, and then advanced 0.5% in September to close out the third quarter. Consumer sentiment indexes drifted lower as the year unfolded. The University of Michigan’s household sentiment index ended 2015 at 92.6 and was one point lower by October 2016; its 2016 high point of 94.7 came in May. The reading on the Conference Board’s consumer confidence gauge has varied from 92.4 to 103.5 this year; at 98.6 in October, it was 2.3 points higher than where it was in December.5,6,7

The Institute for Supply Management’s twin purchasing manager indices, tracking the growth of American manufacturing and services firms, showed the sectors in good shape. ISM’s non-manufacturing PMI went from 55.8 in December 2015 to 54.8 ten months later; despite the decline, the distance above the 50 mark indicates a solid rate of expansion. The Institute’s manufacturing PMI came in at 51.9 in October, up from 48.0 last December.8,9

By October, annualized consumer inflation had hit 1.6%, the highest level since October 2014. Energy prices increased 3.5% in October, their largest monthly jump in more than three years (gas prices rose 7.0% last month).10

At this writing, the Federal Reserve seems poised to increase the benchmark interest rate in December. This month, Fed chair Janet Yellen told Congress that a rate move could occur “relatively soon,” calling current monetary policy “only moderately accommodative.”11

Global economic health. This past summer, voters in the United Kingdom decided that the country should leave the European Union. This seismic geopolitical event has yet to play out, but the time frame for it has been established: U.K. Prime Minister Theresa May says that she will invoke Article 50 of the Lisbon Treaty in March 2017 at the latest, paving the way for the nation’s exit from the E.U. by summer 2019.12

The eurozone economy did not fall apart in the wake of the vote. Its annualized GDP rate was at 1.4% when the third quarter ended (its Q3 GDP advance was 0.3%), and its yearly inflation was still minimal – just 0.5% as of October. Some economists are expecting things to pick up in Q4.13

The Philippines has replaced China at the top of the economic growth rankings for the Asia Pacific region. Its Q3 GDP stood at 7.1% versus 6.7% for the P.R.C.14

China’s own economy showed signs of renewed strength this fall. In October, its industrial output rose 6.1%; that marked the sixth straight month of gains of 6.0% or greater. In October, the Republic’s official non-manufacturing PMI showed the Chinese service sector growing at the fastest pace in four months.15

World markets. By November, major YTD gains had been amassed by three emerging market indices: Russia’s RTS was up 30.9% for the year as of November 18; Brazil’s Bovespa, 38.3%; and Argentina’s MERVAL, 40.3%. The Nikkei 225 and Shanghai Composite were respectively down 5.6% and 9.8% for the year on that date; Hong Kong’s Hang Seng and India’s Sensex had respectively advanced but 2.0% and 0.1% YTD. Pakistan’s KSE 100 was setting the pace for Asia Pacific benchmarks at a gain of 29.0%. Most major European indices were in the red YTD as Thanksgiving week started. The Stoxx Europe 600 was down 7.2% for the year; France’s CAC-40, down 2.9%; Germany’s DAX, off 0.7%; and Spain’s IBEX 35, in the red 9.7%. The U.K.’s FTSE 100 was a notable exception at +8.5% YTD.16 

Commodities markets. The dollar strengthened notably in the fall, taking the U.S. Dollar Index to a close of 101.41 on November 18. A year earlier, it had settled at 99.61. More than ten months into 2016, oil and gold were having a very good year – on November 21, WTI crude was up 13.7% from where it had been a year ago, while the yellow metal had risen 13.0% YOY.17,18

How were other key commodities faring as Thanksgiving approached? Here is a quick rundown of YOY performance: corn, -5.1%; soybeans, +17.8%; wheat, -17.1%; cocoa, -27.2%; coffee, +32.6%; cotton, +17.7%; sugar, +30.8%; heating oil, +10.9%; natural gas, +33.1%; unleaded gas, +6.6%; silver, +17.5%; platinum, +8.6%; copper, +24.7%.18

Real estate. Data from the National Association of Realtors showed existing home sales up 0.6% YOY through the end of the third quarter, maintaining a very healthy 5.47 million annual sales pace. New home purchases increased 29.8% during the year ending in September, according to the Census Bureau, with the annual pace of sales at 593,000.19,20

Regarding construction, additional Census Bureau data reveals the pace of housing starts increased 23.3% between October 2015 and October 2016. The rate of permits issued for builders rose 4.6% in that 12-month window. NAR recently stated that the year ending in September saw a 2.4% gain in housing contract activity.21,22

Mortgage rates descended in the middle of 2016, but by late fall, they were close to where they had been a year ago. Interest on a 30-year fixed-rate loan averaged 3.94% in Freddie Mac’s November 17 Primary Mortgage Market Survey, while average interest on a 15-year fixed-rate loan was at 3.14%. In Freddie’s November 19, 2015 survey, a conventional home loan carried an average interest rate of 3.97% and interest on the 15-year FRM averaged 3.18%.23,24

Looking back...looking forward. The Dow, S&P 500, Nasdaq Composite, and Russell 2000 all closed at record highs 72 hours before Thanksgiving. Could the Dow hit 20,000 sometime in early 2017? Will major changes in the federal tax code soon occur? Will American productivity and growth continue to increase? All of this could happen in the coming months or years; in the meantime, investors can be thankful that the market has exceeded some expectations in 2016.25


This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. 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.

«RepresentativeDisclosure»

 

Citations.

1 - markets.wsj.com/us [11/21/16]

2 - tradingeconomics.com/united-states/gdp-growth [11/21/16]

3 - ncsl.org/research/labor-and-employment/national-employment-monthly-update.aspx [11/21/16]

4 - ycharts.com/indicators/us_u_6_unemployment_rate_unadjusted [11/21/16]

5 - tradingeconomics.com/united-states/personal-spending [11/21/16]

6 - tradingeconomics.com/united-states/consumer-confidence [11/21/16]

7 - bloomberg.com/quote/CONCCONF:IND [11/21/16]

8 - instituteforsupplymanagement.org/ISMReport/NonMfgROB.cfm [11/3/16]

9 - instituteforsupplymanagement.org/ISMReport/MfgROB.cfm [11/1/16]

10 - tradingeconomics.com/united-states/inflation-cpi [11/21/16]

11 - marketwatch.com/story/yellen-says-fed-may-hike-interest-rates-relatively-soon-2016-11-17 [11/17/16]

12 - bbc.com/news/uk-politics-37710786 [10/22/16]

13 - nytimes.com/2016/11/01/business/international/europe-economy-gdp.html [11/1/16]

14 - asianjournal.com/news/the-philippines-is-fastest-growing-economy-in-asia/ [11/20/16]

15 - tinyurl.com/gsjro36 [11/20/16]

16 - online.wsj.com/mdc/public/page/2_3022-intlstkidx.html [11/21/16]

17 - marketwatch.com/investing/index/dxy/historical [11/21/16]

18 - money.cnn.com/data/commodities/ [11/21/16]

19 - ycharts.com/indicators/existing_home_sales [11/21/16]

20 - marketwatch.com/story/new-home-sales-run-at-annual-593000-rate-in-september-as-market-grinds-slowly-higher-2016-10-26 [10/26/15]

21 - census.gov/construction/nrc/pdf/newresconst.pdf [11/17/16]

22 - tradingeconomics.com/united-states/pending-home-sales [11/21/16]

23 - freddiemac.com/pmms/archive.html [11/21/16]

24 - freddiemac.com/pmms/archive.html?year=2015 [11/21/16]

25 - marketwatch.com/story/wall-street-stocks-set-to-struggle-for-direction-in-a-holiday-shortened-week-2016-11-21/ [11/21/16]

Dow Closes Near Record High After Trump Victory

A day after Donald Trump’s election win, Wall Street experienced a surprising upswing. It was feared the market would plunge on November 9 since many investors were anticipating Hillary Clinton to triumph in the presidential race. Quite the opposite happened. 

As the trading day ended, the Dow Jones Industrial Average notched a close of 18,589.69, thanks to a 256.95 gain. The Nasdaq Composite rose 57.58 to a close of 5,251.07, while the S&P 500 settled at 2,163.26 after a 23.70 jump. Gold futures gained 0.29% to $1,278.20; light sweet crude futures rose 0.80% on the NYMEX to settle at $45.34. Meanwhile, bond prices fell and the yield on the 10-year Treasury rose to 2.08% Wednesday.1,2

The key European markets also seemed to be accepting the idea of a Trump presidency with relative calm. November 9 saw gains of 1.56% for Germany’s DAX index, 1.49% for France’s CAC-40, and 1.00% for the United Kingdom’s FTSE 100. The Stoxx Europe 600 advanced 1.46%.1

This did not apply for the important Asian markets, where the trading day ended hours before action on Wall Street began. The biggest loser among the indices was the Nikkei 225. The Japanese benchmark slid 5.36%. Lesser losses were incurred by Hong Kong’s Hang Seng (2.16%), India’s Sensex (1.23%), and China’s Shanghai Composite (0.62%).1

Why did Wall Street turn so bullish a day after the upset? Credit was quickly given to the victory speech Trump delivered very early Wednesday morning. In speaking to the Associated Press, Eric Weigard, senior portfolio manager at U.S. Bank’s Private Client Reserve, noted Trump’s “remarkably conciliatory posture,” which communicated a “presidential disposition, and gave a greater sense of calm.” Also, some institutional investors saw a buying opportunity: billionaire Carl Icahn told Bloomberg he was devoting about $1 billion to equities on Wednesday. “People are starting to realize that a Trump presidency is not the end of the world,” remarked Tom di Galoma, managing director of trading at Seaport Global Securities. Investors are hoping the optimism displayed on Wall Street Wednesday will be sustained.2

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. 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 - markets.wsj.com/us [11/9/16]

2 - stltoday.com/business/local/u-s-stocks-rally-following-trump-victory-dow-closes-just/article_250baf34-2237-5cee-a725-c1f2d2dc0415.html [11/9/16]

Tax Planning for the Self-Employed

Self-employment is the opportunity to be your own boss, to come and go as you please, and oh yes, to establish a lifelong bond with your accountant. If you're self-employed, you'll need to pay your own FICA taxes and take charge of your own retirement plan, among other things. Here are some planning tips.

Understand self-employment tax and how it's calculated

As a starting point, make sure that you understand (and comply with) your federal tax responsibilities. The federal government uses self-employment tax to fund Social Security and Medicare benefits. You must pay this tax if you have more than a minimal amount of self-employment income. If you file a Schedule C as a sole proprietor, independent contractor, or statutory employee, the net profit listed on your Schedule C (or Schedule C-EZ) is self-employment income and must be included on Schedule SE, which is filed with your federal Form 1040. Schedule SE is used both to calculate self-employment tax and to report the amount of tax owed.

Make your estimated tax payments on time to avoid penalties

Employees generally have income tax, Social Security tax, and Medicare tax withheld from their paychecks. But if you're self-employed, it's likely that no one is withholding federal and state taxes from your income. As a result, you'll need to make quarterly estimated tax payments on your own (using IRS Form 1040-ES) to cover your federal income tax and self-employment tax liability. You may have to make state estimated tax payments, as well. If you don't make estimated tax payments, you may be subject to penalties, interest, and a big tax bill at the end of the year. For more information about estimated tax, see IRS Publication 505.

If you have employees, you'll have additional periodic tax responsibilities. You'll have to pay federal employment taxes and report certain information. Stay on top of your responsibilities and see IRS Publication 15 for details.

Employ family members to save taxes

Hiring a family member to work for your business can create tax savings for you; in effect, you shift business income to your relative. Your business can take a deduction for reasonable compensation paid to an employee, which in turn reduces the amount of taxable business income that flows through to you. Be aware, though, that the IRS can question compensation paid to a family member if the amount doesn't seem reasonable, considering the services actually performed. Also, when hiring a family member who's a minor, be sure that your business complies with child labor laws.

As a business owner, you're responsible for paying FICA (Social Security and Medicare) taxes on wages paid to your employees. The payment of these taxes will be a deductible business expense for tax purposes. However, if your business is a sole proprietorship and you hire your child who is under age 18, the wages that you pay your child won't be subject to FICA taxes.

As is the case with wages paid to all employees, wages paid to family members are subject to withholding of federal income and employment taxes, as well as certain taxes in some states.

Establish an employer-sponsored retirement plan for tax (and nontax) reasons

Because you're self-employed, you'll need to take care of your own retirement needs. You can do this by establishing an employer-sponsored retirement plan, which can provide you with a number of tax and nontax benefits. With such a plan, your business may be allowed an immediate federal income tax deduction for funding the plan, and you can generally contribute pretax dollars into a retirement account. Contributed funds, and any earnings, aren't subject to federal income tax until withdrawn (as a tradeoff, tax-deferred funds withdrawn from these plans prior to age 59½ are generally subject to a 10 percent premature distribution penalty tax--as well as ordinary income tax--unless an exception applies). You can also choose to establish a 401(k) plan that allows Roth contributions; with Roth contributions, there's no immediate tax benefit (after-tax dollars are contributed), but future qualified distributions will be free from federal income tax. You may want to start by considering the following types of retirement plans:

  • Keogh plan
  • Simplified employee pension (SEP)
  • SIMPLE IRA
  • SIMPLE 401(k)
  • Individual (or "solo") 401(k)

The type of retirement plan that your business should establish depends on your specific circumstances. Explore all of your options and consider the complexity of each plan. And bear in mind that if your business has employees, you may have to provide coverage for them as well (note that you may qualify for a tax credit of up to $500 for the costs associated with establishing and administering such a plan). For more information about your retirement plan options, consult a tax professional or see IRS Publication 560.

Take full advantage of all business deductions to lower taxable income

Because deductions lower your taxable income, you should make sure that your business is taking advantage of any business deductions to which it is entitled. You may be able to deduct a variety of business expenses, including rent or home office expenses, and the costs of office equipment, furniture, supplies, and utilities. To be deductible, business expenses must be both ordinary (common and accepted in your trade or business) and necessary (appropriate and helpful for your trade or business). If your expenses are incurred partly for business purposes and partly for personal purposes, you can deduct only the business-related portion.

If you're concerned about lowering your taxable income this year, consider the following possibilities:

  • Deduct the business expenses associated with your motor vehicle, using either the standard mileage allowance or your actual business-related vehicle expenses to calculate your deduction
  • Buy supplies for your business late this year that you would normally order early next year
  • Purchase depreciable business equipment, furnishings, and vehicles this year
  • Deduct the appropriate portion of business meals, travel, and entertainment expenses
  • Write off any bad business debts

Self-employed taxpayers who use the cash method of accounting have the most flexibility to maneuver at year-end. See a tax specialist for more information.

Deduct health-care related expenses

If you qualify, you may be able to benefit from the self-employed health insurance deduction, which would enable you to deduct up to 100 percent of the cost of health insurance that you provide for yourself, your spouse, and your dependents. This deduction is taken on the front of your federal Form 1040 (i.e., "above-the-line") when computing your adjusted gross income, so it's available whether you itemize or not.

Contributions you make to a health savings account (HSA) are also deductible "above-the-line." An HSA is a tax-exempt trust or custodial account you can establish in conjunction with a high-deductible health plan to set aside funds for health-care expenses. If you withdraw funds to pay for the qualified medical expenses of you, your spouse, or your dependents, the funds are not included in your adjusted gross income. Distributions from an HSA that are not used to pay for qualified medical expenses are included in your adjusted gross income, and are subject to an additional 20 percent penalty tax unless an exception applies.

Mind Over Money

Emotion often drives our financial decisions, even when logic should.

Provided By: Ryan Maroney, CFP®

When we go to the grocery store, we seldom shop on logic alone. We may not even buy on price. We buy one type of yogurt over another because of brand loyalty, or because one brand has more appealing packaging than another. We buy five bananas because they are on sale for 29 cents this week – the bargain is right there; why not seize the opportunity? We pick up that gourmet ice cream that everyone gets – if everyone buys it, it must be a winner.

As casual and arbitrary as these decisions may be, they are remarkably like the decisions many investors make in the financial markets.

A degree of emotion also factors into many of our financial choices. There is even a discipline devoted to how our emotions affect our financial decisions: behavioral finance. Examples of emotionally driven financial behaviors are all around us, especially in the investment markets.

Behavior #1: Believing future performance relates to past performance. In truth, there is no relation. If an investment yields 8-10% for six consecutive years, that does not mean it will yield 8-10% next year. Still, we may be lulled into expecting such performance – how can you go wrong with such a “rock solid” investment? In behavioral finance, this is called recency bias. Bullish investors tend to harbor it, and it may lead to irrational exuberance.1     

Similarly, investors adjust risk tolerance in light of past performance. If their portfolio returned spectacularly last year, they may be tempted to accept more risk this year. If they took major losses in the equity markets last year, they may become very risk-averse and get out of equities. Both behaviors assume the future will be like the past, when the future is really unknown.1

Behavior #2: Investing on familiarity. Familiarity bias encourages you to make investment or consumer choices that are “friendly” and comfortable to you, even when they may be illogical. You go with what you know, without investigating what you don’t know or looking at other options. Another example of familiarity bias is when you invest in a company or a sector largely because you are attracted to or familiar with its “story” – its history, its reputation.2

Behavior #3: Ignoring negative trends. This is known as the ostrich effect. We can ignore the reality of a correction or a bear market; we can ignore the fact that our credit card debt is increasing. Studies suggest that investors check in on their portfolios with less frequency during market slumps – they would rather not know the degree of damage.3

Behavior #4: Wanting decisions to pay off now. Patience tends to be a virtue in both equity investing and real estate investing, but we may suffer from hyperbolic discounting – a bias in which we want a quick payoff today rather than an even larger one that might result someday if we buy and hold.3

Behavior #5: Falling for a decoy. When given a third consumer choice, instead of two consumer choices, we may choose a different product than we originally would, and perhaps make a choice we would not have otherwise considered. Once, an ad in The Economist offered three kinds of subscriptions: $59 for online only, $159 for print only, and $159 for online + print. The $159 print-only option was an illustration of the decoy effect – the choice existed seemingly just to make the $159 online + print option look like a better deal.3

Behavior #6: Seeing patterns where none exist. This is called the clustering illusion. You see it in casinos where a slot machine pays out twice an hour, and people line up to play that “lucky” machine, which has, in fact, just paid out randomly. Some investors fall prey to it in the markets.3

Behavior #7: Following the herd. The more consumers or investors that subscribe to a particular belief, the greater the chance of other consumers or investors to join the herd, or “jump on the bandwagon,” for good or bad. This is the bandwagon effect.3

Behavior #8: Buying the amount of something that we are marketed. In our minds, we believe that there is an optimal amount of something per purchase. This is called unit bias, and when marketing suggests the ideal amount should be larger, we buy more of that product or service.3

There are dozens of biases we may harbor, temporarily or regularly, all subjects of study in the discipline of behavioral finance. Recognizing them may help us to become a better consumer, and even a better investor.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. 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 - marketwatch.com/story/a-financial-plan-to-help-you-simplify-and-succeed-2016-09-23 [9/23/16]

2 - abcnews.go.com/Business/stock-stories-fairy-tales/story?id=42529959 [10/3/16]

3 - businessinsider.com/cognitive-biases-2015-10 [10/29/15]

 

Is This the Season to Change Jobs? The top financial considerations for those ready to make a move.

Provided by Ryan Maroney, CFP®

Switching from one job to another can literally pay off. Data from payroll processing giant ADP confirms that statement. In the first quarter of this year, the average job hopper realized a 6% pay boost. The salary increase averaged 11% for workers younger than 25.1

A recent LinkedIn study found that Generation Y is making job switching something of a habit: on average, millennials will change jobs four times from age 22-32. This compares to an average of two job moves in the first decade out of college for Generation X.2    

As you change jobs at any age, you need to take care of a few things during the transition. On your way to (presumably) higher pay, be sure you address these matters. 

How quickly can you arrange health coverage? If you already pay for your own health insurance, this will not be an issue. If you had coverage at your old job and now need to find your own, fall is the prime time to start shopping for it. Open enrollment season at the Health Insurance Marketplace runs from November 1 to January 31. If you enroll in a plan by December 15, 2016, your coverage will begin on January 1, 2017.3     

If you were enrolled in an employer-sponsored health plan, you need to find out when the coverage from your previous job ends – and, if applicable, when coverage under your new employer’s health plan begins. If the interval between jobs is prolonged, and COBRA will not cover you for the entirety of it, you may want to check whether you can obtain coverage from your alumni association, your guild or union, or AARP. If you are leaving a career to start a business, confer with an insurance professional to search for a good group health plan.

What happens with your retirement savings? You likely have four options regarding the money you have saved up in your workplace retirement plan: you can leave the money in the plan, roll it over into an IRA, transfer the assets into the retirement plan at your new job (if the new employer allows), or cash out (the withdrawal will be taxed and you may be hit with an early withdrawal penalty as well).4  

You will want to see how quickly you can start saving and investing through your new employer’s retirement program, whether you are able to transfer assets from the old plan into the new one or not. If the company offers a match, when will it apply?

Can you manage your cash flow effectively between one job & the next? You do not want to tap your emergency fund or your retirement accounts for cash during the transition, so do the little things to guard against that possibility. Postpone big purchases, avoid running up large credit card debts you will regret later, eat in rather than out, and buy what you really need rather than what you merely want. See if you can put off most of your holiday spending until late November. A cash flow worksheet (which can be found online, for free) can help you track your essential and discretionary household spending.

Each year, about 20 million Americans move on to a new job. If you will soon join their ranks, make sure that you keep household money and insurance matters top of mind, and strive to keep saving for your future at your new workplace.     

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. 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 - qz.com/666915/when-to-switch-jobs-to-get-the-biggest-salary-increase/ [4/21/16]

2 - money.cnn.com/2016/04/12/news/economy/millennials-change-jobs-frequently/ [4/12/16]

3 - healthcare.gov/quick-guide/dates-and-deadlines/ [9/29/16]

4 - lifereimagined.aarp.org/stories/14481-Financial-Checklist-for-Job-Changers [9/29/16]

October Is National Financial Planning Month

Saving is a great start, but planning to reach your financial goals is even better.

Provided by Ryan Maroney, CFP®

Are you saving for retirement? Great. Are you planning for retirement? That is even better. Planning for your retirement and other long-range financial goals is an essential step – one that could make achieving those goals easier.

Saving without investing isn’t enough. Since interest rates are so low today, money in a typical savings account barely grows. It may not even grow enough to keep up with inflation, leaving the saver at a long-term financial disadvantage.

Very few Americans retire on savings alone. Rather, they invest some of their savings and retire mostly on the accumulated earnings those invested dollars generate over time.

Investing without planning usually isn’t enough. Most people invest with a general idea of building wealth, particularly for retirement. The problem is that too many of them invest without a plan. They are guessing how much money they will need once they leave work, and that guess may be way off. Some have no idea at all.

Growing and retaining wealth takes more than just investing. Along the way, you must plan to manage risk and defer or reduce taxes. A good financial plan – created with the assistance of an experienced financial professional – addresses those priorities while defining your investment approach. It changes over time, to reflect changes in your life and your financial objectives.

With a plan, you can set short-term and long-term goals and benchmarks. You can estimate the amount of money you will likely need to meet retirement, college, and health care expenses. You can plot a way to wind down your business or exit your career with confidence. You can also get a good look at your present financial situation – where you stand in terms of your assets and liabilities, the distance between where you are financially and where you would like to be.

 

Last year, a Gallup poll found that just 38% of investors had a written financial plan. Gallup asked those with no written financial strategy why they lacked one. The top two reasons? They just hadn’t taken the time (29%) or they simply hadn’t thought about it (27%).1

 

October is National Financial Planning Month – an ideal time to plan your financial future. The end of the year is approaching and a new one will soon begin, so this is the right time to think about what you have done in 2016 and what you could do in 2017. You might want to do something new; you may want to do some things differently. Your financial future is in your hands, so be proactive and plan.

Ryan Maroney may be reached at 949-455-0300 or www.fmnc.com

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. 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 - gallup.com/poll/184421/nonretired-investors-written-financial-plan.aspx [7/31/15]

Characteristics of the Millionaires Next Door

The habits and values of wealthy Americans.

 Provided by Ryan Maroney, CFP®

Just how many millionaires does America have? By the latest estimation of Spectrem Group, a research firm studying affluent and high net worth investors, it has more than ever before. In 2015, the U.S. had 10.4 million households with assets of $1 million or greater, aside from their homes. That represents a 3% increase from 2014. Impressively, 1.2 million of those households were worth between $5 million and $25 million.1  

How did these people become rich? Did they come from money? In most cases, the answer is no. The 2016 edition of U.S. Trust’s Insights on Wealth and Worth survey shares characteristics of nearly 700 Americans with $3 million or more in investable assets. Seventy-seven percent of the survey respondents reported growing up in middle class or working class households. A slight majority (52%) said that the bulk of their wealth came from earned income; 32% credited investing.2  

It appears most of these individuals benefited not from silver spoons in their mouths, but from taking a particular outlook on life and following sound financial principles. U.S. Trust asked these multi-millionaires to state the three values that were most emphasized to them by their parents. The top answers? Educational achievement, financial discipline, and the importance of working.2  

Is education the first step toward wealth? There may be a strong correlation. Ninety percent of those polled in a recent BMO Private Bank millionaire survey said that they had earned college degrees. (The National Center for Education Statistics notes that in 2015, only 36% of Americans aged 25-29 were college graduates.)3       

Interestingly, a lasting marriage may also help. Studies from Ohio State University and the National Bureau of Economic Research (NBER) both conclude that married people end up economically better off by the time they retire than singles who have never married. In fact, NBER finds that, on average, married people will have ten times the assets of single people by the start of retirement. Divorce, on the other hand, often wrecks finances. The OSU study found that the average divorced person loses 77% of the wealth he or she had while married.3 

Most of the multi-millionaires in the U.S. Trust study got off to an early start. On average, they began saving money at 14; held their first job at 15; and invested in equities by the time they were 25.2

Most of them have invested conventionally. Eighty-three percent of those polled by U.S. Trust credited buy-and-hold investment strategies for part of their wealth. Eighty-nine percent reported that equities and debt instruments had generated most of their portfolio gains.2

Many of these millionaires keep a close eye on taxes & risk. Fifty-five percent agreed with the statement that it is “more important to minimize the impact of taxes when making investment decisions than it is to pursue the highest possible returns regardless of the tax consequences.” In a similar vein, 60% said that lessening their risk exposure is important, even if they end up with less yield as a consequence.2

Are these people mostly entrepreneurs? No. The aforementioned Spectrem Group survey found that millionaires and multi-millionaires come from all kinds of career fields. The most commonly cited occupations? Manager (16%), professional (15%), and educator (13%).4 

Here is one last detail that is certainly worth noting. According to Spectrem Group, 78% of millionaires turn to financial professionals for help managing their investments.4

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. 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 - cnbc.com/2016/03/07/record-number-of-millionaires-living-in-the-us.html [3/7/16]

2 - forbes.com/sites/maggiemcgrath/2016/05/23/the-6-most-important-wealth-building-lessons-from-multi-millionaires/ [5/23/16]

3 - businessinsider.com/ap-liz-weston-secrets-of-next-door-millionaires-2016-8 [8/22/16]

4 - cnbc.com/2016/05/05/are-you-a-millionaire-in-the-making.html [5/5/16]

Are There Really Tax-Free Retirement Plan Distributions?

A look at some popular & obscure options for receiving money with little or no tax.

Provided by Ryan Maroney, CFP®

Will you receive tax-free money in retirement? Some retirees do. You should know about some of your options for tax-free retirement distributions, some of which are less publicized than others.

Qualified distributions from Roth accounts are tax-free. If you own a Roth IRA or have a Roth retirement account at work, you can take a tax-free distribution from that IRA or workplace retirement plan once you are older than 59½ and have held the account for at least five tax years. One other nice perk: original owners of Roth IRAs never have to take Required Minimum Distributions (RMDs) during their lifetimes. (Owners of employer-sponsored Roth retirement accounts are required to take RMDs.)1,2

Trustee-to-trustee transfers of retirement plan money occur without being taxed. In a rollover of this kind, the custodian financial firm that hosts your workplace retirement plan account makes a payment directly out of the account to an IRA you have waiting, with not a penny in taxes levied or withheld. Trustee-to-trustee transfers of IRAs work the same way.

If you are older than 80, you might get a tax break on a lump-sum withdrawal. If you were born prior to January 2, 1936, you could be entitled to a tax reduction on a lump-sum distribution out of a qualified retirement plan in certain cases. Unfortunately, this is never the case with an IRA RMD.4

Your heirs could receive tax-free dollars resulting from life insurance. Payouts on permanent life insurance policies are normally exempt from federal income tax. (The payout may be included in the value of your taxable estate, though.) A life insurance death benefit paid out from a qualified retirement plan is also tax-exempt provided the death benefit is greater than the policy’s pre-death cash surrender value. Even if an employee takes a distribution from a corporate-owned life insurance policy on his or her life while still alive, that distribution may not be fully taxable as it may constitute a return of the principal invested in the life insurance contract.4,5

Sometimes the basis in a workplace retirement account can be withdrawn tax-free. If you have made non-deductible contributions through the years to an IRA or an employer-sponsored retirement plan account, these contributions are not taxable when they are distributed to the original account owner, accountholder, or an account beneficiary – it is considered return of principal, a recovery of the original account owner or accountholder’s cost of investment.4

IRA contributions can optionally be withdrawn tax-free before their due date. As an example, your 2016 IRA contribution can be withdrawn tax-free by the due date of your federal tax return – April 15 or thereabouts. If you file Form 4868, you have until October 15 (or thereabouts) to do this.6

Withdrawals such as these can only happen, however, if you meet two tests set forth by the IRS. First, you must not have taken a deduction for your contribution. Second, you must, additionally, withdraw any interest or income those invested dollars earned. You can also take investment losses into account. (There is a worksheet in IRS Publication 590 you can use to calculate applicable gains or losses.)6 

These common and obscure paths toward tax-free retirement income may be worth exploring. Who knows? Perhaps, this year, your retirement will be less taxing than you think.

Ryan Maroney, CFP® may be reached at 949-455-0300

www.fmncc.com

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. 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 - irs.gov/retirement-plans/retirement-plans-faqs-on-designated-roth-accounts [1/26/16]

2 - irs.gov/retirement-plans/retirement-plans-faqs-regarding-required-minimum-distributions [7/28/16]

3 - irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-distributions [2/19/16]

4 - news.morningstar.com/articlenet/article.aspx?id=764726 [8/13/16]

5 - doughroller.net/personal-finance/life-insurance-proceeds-tax/ [8/18/16]

6 - tinyurl.com/gwoxed8 [8/18/16]

When Is Social Security Income Taxable?

The answer depends on your income.

Provided by Ryan Maroney, CFP® 

Your Social Security income could be taxed. That may seem unfair, or unfathomable. Regardless of how you feel about it, it is a possibility.

Seniors have had to contend with this possibility since 1984. Social Security benefits became taxable above certain yearly income thresholds in that year. Frustratingly for retirees, these income thresholds have been left at the same levels for 32 years.1

Those frozen income limits have exposed many more people to the tax over time. In 1984, just 8% of Social Security recipients had total incomes high enough to trigger the tax. In contrast, the Social Security Administration estimates that 52% of households receiving benefits in 2015 had to claim some of those benefits as taxable income.1

Only part of your Social Security income may be taxable, not all of it. Two factors come into play here: your filing status and your combined income.

Social Security defines your combined income as the sum of your adjusted gross income, any non-taxable interest earned, and 50% of your Social Security benefit income. (Your combined income is actually a form of modified adjusted gross income, or MAGI.)2

Single filers with a combined income from $25,000-$34,000 and joint filers with combined incomes from $32,000-$44,000 may have up to 50% of their Social Security benefits taxed.2

Single filers whose combined income tops $34,000 and joint filers with combined incomes above $44,000 may see up to 85% of their Social Security benefits taxed.2

What if you are married and file separately? No income threshold applies. Your benefits will likely be taxed no matter how much you earn or how much Social Security you receive.2

You may be able to estimate these taxes in advance. You can use an online calculator (a Google search will lead you to a few such tools), or the worksheet in IRS Publication 915.2  

You can even have these taxes withheld from your Social Security income. You can choose either 7%, 10%, 15%, or 25% withholding per payment. Another alternative is to make estimated tax payments per quarter, like a business owner does.2

Did you know that 13 states also tax Social Security payments? North Dakota, Minnesota, West Virginia, and Vermont use the exact same formula as the federal government to calculate the degree to which your Social Security benefits may be taxable. Nine other states use more lenient formulas: Colorado, Connecticut, Kansas, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, and Utah.2

What can you do if it appears your benefits will be taxed? You could explore a few options to try and lessen or avoid the tax hit, but keep in mind that if your combined income is far greater than the $34,000 single filer and $44,000 joint filer thresholds, your chances of averting tax on Social Security income are slim. If your combined income is reasonably near the respective upper threshold, though, some moves might help.

If you have a number of income-generating investments, you could opt to try and revise your portfolio, so that less income and tax-exempt interest are produced annually.

A charitable IRA gift may be a good idea. You can make one if you are 70½ or older in the year of the donation. You can endow a qualified charity with as much as $100,000 in a single year this way. The amount of the gift may be used to fully or partly satisfy your Required Minimum Distribution (RMD), and the amount will not be counted in your adjusted gross income.3

You could withdraw more retirement income from Roth accounts. Distributions from Roth IRAs and Roth workplace retirement plan accounts are tax-exempt as long as you are age 59½ or older and have held the account for at least five tax years.4

Will the income limits linked to taxation of Social Security benefits ever be raised? Retirees can only hope so, but with more baby boomers becoming eligible for Social Security, the IRS and the Treasury stand to receive greater tax revenue with the current limits in place.

 

Ryan Maroney, CFP®  may be reached at 949-455-0300 or www.fmncc.com

  

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. 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 - ssa.gov/policy/docs/issuepapers/ip2015-02.html [12/15]

2 - fool.com/retirement/general/2016/04/30/is-social-security-taxable.aspx [4/30/16]

3 - kiplinger.com/article/retirement/T051-C001-S003-how-to-limit-taxes-on-social-security-benefits.html [7/16]

4 - irs.gov/retirement-plans/retirement-plans-faqs-on-designated-roth-accounts [1/26/16]

Protecting Your Parents From Elder Financial Abuse

 

How to help your family avoid scams and other fraud.

Provided by Ryan Maroney, CFP®

We are becoming more familiar with the notion of financial abuse targeting elders – scams and other exploitation targeting the savings of people aged 60 and older – but many may think, “it won’t happen to my family” or “my relative is too smart to be taken in by this.”

These assumptions are only wishful thinking; this sort of fraud is on the rise, so it’s important to talk to your loved ones about what to look for, and how they can protect their finances.

More common than you think. The U.S. Department of Justice’s Elder Justice Initiative offers a sobering statistic: in the United States alone, multiple studies have found that, every year, 3-5% of seniors endures financial abuse by family members. This form of exploitation is, typically, one of the top two most frequently reported means of elder abuse.1

Talk about money. It can be uncomfortable to talk with family about financial issues, but this is often the best first step toward guarding against financial abuse. Find out the information you would already need to know in the event of a sudden calamity. Questions to ask include: where is the important paperwork kept - i.e. bills, deeds, and wills? Who are the professionals they work with – accountants, lawyers, and those who assist with financial matters?2

It’s also important for you to have a clear idea in what sorts of accounts and investments your parents or loved ones keep their money. You will also want to have a conversation about when and under what circumstances they would like for you to step in and handle their finances for them.2

Trouble takes many forms. Not all financial trouble that elders experience is necessarily a sign of abuse, but having open and clear communication can be a great help. Look for unpaid bills piling up, creditor notices, and suspicious activity on their bank accounts.2

There are a number of scams out there that target the elderly, in particular, and many of them come via telephone calls. There are scammers who pose as officials from a sweepstakes, lottery, or some other contest claiming that your parent or loved one is in line to receive a prize. Others will pretend to be from the Internal Revenue Service and threaten legal action over some long-forgotten overdue balance. The real IRS only sends notices via regular mail, of course, but that can be easily forgotten when dealing with a wily and confrontational con artist.2

Talk about these scams with your parents or loved ones. Make sure that they understand that they shouldn’t give out Medicare or Social Security numbers, and always be absolutely certain before signing anything, particularly legal documents, contracts, and anything to do with making an investment. For the latter, if you don’t already know the people who handle your financial matters for your parents or loved ones, suggest that a meeting be arranged and, if necessary, that they be instructed to work with you under certain circumstances.2

Stay informed. There are a number of resources to keep you and your parents or loved ones aware of fraud, both in terms of new scams and even instances of elder financial abuse in your area. StopFraud.gov offers a number of resources and tips for identifying and reporting the financial exploitation of elders. The AARP website features a Fraud Watch program and offers and interactive national fraud map that can look at specific reports and alerts from law enforcement.2,3,4  

With careful planning and communication, you can make a real effort to protect your parents and other elders in your family from an embarrassing and costly set of circumstances.

Ryan Maroney, CFP® may be reached at 949-455-0300 or www.fmncc.com  

Investment advisory services are offered by Financial Management Network, Inc.(“FMN”) and securities offered through FMN Capital Corporation, (“FMNCC”), member FINRA & SIPC. Securities are not FDIC-Insured, are not bank-guaranteed, may lose value. FMN and FMNCC may only transact business in those states and international jurisdictions where we are registered/filed notice or otherwise excluded or exempted from registration requirements. The purpose of this web site is for information distribution on products and services. Information herein is taken from sources deemed reliable and neither FMN nor FMNCC are responsible for any errors that might occur.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. 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 – justice.gov/elderjustice/research/prevalence-and-diversity.html [7/14/16]

2 – nbcnews.com/business/retirement/worried-about-elder-financial-abuse-how-protect-your-parents-n559151 [4/20/16]

3 – stopfraud.gov/protect.html [7/14/16]
4 – action.aarp.org/site/SPageNavigator/FraudMap.html [7/14/16]

 

Why Are We Saving More and Spending Less? Have our memories of the Great Recession altered our habits?

By: Ryan Maroney, CFP®

Consumer spending accounts for more than two-thirds of economic activity in the United States. Lately, that spending has moderated. Across the 12 months ending in March, personal spending advanced 3.4%. That matched the gain seen in 2015.1,2

Is a 3.4% annualized gain in personal spending adequate? Not in historical terms. During 2014, consumer spending accelerated 4.2%. The average monthly gain in consumer spending across the past 12 months (0.28%) is roughly half the historical average seen since 1959 (0.54%).1,2

While the personal spending rate has slumped recently, the personal savings rate has not. In March, it was at 5.4%. It has varied between 4-6% for more than three years, staying notably above the levels seen prior to the Great Recession of 2007-2009.3

Has consumer psychology been altered since then? That is an interesting question to consider, and it especially begs consideration, given the fact that inflation-adjusted personal spending has declined for three straight quarters.4

Real disposable income (that is, disposable income adjusted for inflation) has been rising without fail. It has increased for 13 straight quarters, beginning in Q1 2013 after the payroll tax cut at the end of 2012. You would think unflagging increases in real disposable income would promote greater economic expansion, but real gross domestic product grew just 1.5% in 2013 and only 2.4% in both 2014 and 2015. Those GDP levels are well below those seen in the early 2000s, not to mention the 1990s.4,5    

When is too much frugality a bad thing? When it risks hampering economic growth. The 5.4% personal savings rate recorded in March tied a three-and-a-half-year high. As we are well into an economic recovery, it would seem only natural for Americans to spend more than they did several years ago.4

Perhaps people are just not ready to do that. As a Deutsche Bank research note asserted this month, the memory of the Great Recession may be too hard to erase: “The shock of the crisis likely increased the desire to hold more savings for precautionary motives.”4

Since 2001, Gallup has consistently asked Americans a question each year: “Are you the type of person who more enjoys spending money or who more enjoys saving money?”6

This year, 65% of respondents said they preferred saving and 33% of respondents said they preferred spending. That gap has never been so pronounced in fifteen years of polling.6

As recently as 2009, just 53% of Americans told Gallup they preferred saving while 44% indicated they preferred spending. The gap has gradually widened ever since, and it is now fairly consistent across all age groups.6

A little more polling history seems to affirm a perception shift. In 2006, Gallup found that 51% of Americans rated their personal financial situation as “excellent/good;” in that year, 50% of Americans preferred saving to spending. Four years later, only 41% of Americans felt their personal financial situation was “excellent/good”, and 62% indicated a preference for saving. This year, 50% of Americans ranked their personal finances as “excellent/good,” yet 65% preferred saving dollars to spending them. “The appeal of saving over spending shows some signs of being the new normal rather than a temporary reaction to the hard times after 2008,” Gallup’s Jim Norman observed last month.6

In its latest report on personal income and outlays, the Bureau of Economic Analysis says personal incomes were up 4.2% year-over-year as of March. Consumer prices rose but 0.9% in the same span. Unimpressive wage growth aside, it would appear that many households are nicely positioned to spend. Of course, what these two numbers do not take into account is debt: mortgage debt, student loan debt, credit card debt. The rebound in the personal savings rate surely relates to the goal of reducing such liabilities.7,8

The Great Recession taught America a great lesson about living within one’s means. Could that lesson, as vital as it is, now be constraining the economy? As economists try to pinpoint reasons for America’s slow recovery, they may want to cite the psychology of the consumer.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. 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 - cnbc.com/2016/02/01/us-personal-income-dec-2015.html [2/1/16]

2 - tradingeconomics.com/united-states/personal-spending [5/22/16]

3 - tradingeconomics.com/united-states/personal-savings [5/12/16]

4 - usnews.com/news/articles/2016-05-11/years-later-psychological-scars-from-great-recession-skew-spending [5/11/16]

5 - statista.com/statistics/188165/annual-gdp-growth-of-the-united-states-since-1990/ [5/12/16]

6 - gallup.com/poll/190952/nearly-two-thirds-americans-prefer-saving-spending.aspx [4/25/16]

7 - shopfloor.org/2016/04/personal-spending-remained-soft-in-march-despite-decent-income-growth/ [4/29/16]

8 - reuters.com/article/us-usa-economy-inflation-idUSKCN0XB1I4 [4/14/16]

How Millennials Can Get a Good Start on Retirement Planning

Provided by Ryan Maroney, CFP®

If you are younger than 35, saving for retirement may not feel like a priority. After all, retirement may be 30 years away; if your employer does not sponsor a retirement plan, there may be less incentive for you to start.

Even so, you must save and invest for retirement as soon as you can. Time is your greatest ally. The earlier you begin, the more years your invested assets have to grow and compound. If you put off retirement planning until your fifties, you may end up having to devote huge chunks of your income just to catch up, at a time when you may have to care for elderly parents, fund college educations, and pay off a mortgage.

Do your part to reject the financial stereotype that the media places on millennials. Are you familiar with it? According to the mainstream media, millennials are wary of saving and investing; they are just too indebted, too pessimistic, and too scared get into the market after seeing what happened to the investments of their parents during the Great Recession.

In truth, savers of all ages were traumatized by the 2007-09 bear market. Last month, Gallup asked American households if they had any money in equity investments; just 52% said yes. That compares to 65% in April 2007. In 2014, Gallup asked Americans if investing $1,000 in equities was a good idea or a bad idea; 50% of those surveyed called it a bad one.1

A recent study from HowMuch.Net found that 52% of Americans aged 18-34 have less than $1,000 in savings. Well, guess what: another study from Go Banking Rates reveals that 62% of all Americans have less than $1,000 in savings.2

Now is the time to take some crucial financial steps. According to a poll taken by millennial advocacy group Young Invincibles, only 43% of 18-to-34-year-olds without access to a workplace retirement plan save consistently for retirement; whether your employer sponsors a plan or not, though, you can still make some wise moves before you turn 40.3

Make saving a top priority. Resolve to pay yourself first. That is, direct money toward your retirement before you do anything else, like pay the bills or spend it on needs or wants. Your future should come first.

Invest some or most of what you save. Investing in equities is vital, because it gives you the potential to grow and compound your money to outpace inflation. With interest rates so low right now, ultra-conservative fixed-income investments are generating very low returns, and most savings accounts are offering minimal interest rates. Thirty or forty years from now, you will probably not be able to retire solely on your savings. If you invest your retirement money in equities, you have the opportunity to retire on the earnings and compound interest accumulated through both saving and investing.

The effect of compounding can be profound. For example, suppose you want to retire with $1 million in savings. (By 2050, this may be a common goal rather than a lofty one.) We will project that your investments will yield 6.5% a year between now and the year you turn 65 (a reasonably optimistic assumption) and, for the sake of simplicity, we will put any potential capital gains taxes and investment fees aside. Given all that, how early would you have to begin saving and investing to reach that $1 million goal, and how much would you have to save per month to reach it?

If you start saving at 45, the answer is $2,039. If you start saving at 35, the monthly number drops to $904. How about if you start saving at 25? Only $438 a month would be needed. The earlier you start saving and investing, the more compounding power you can harness.4    

Strive to get the match. Some companies reward employees with matching retirement plan contributions; they will contribute 50 cents for every dollar the worker does or, perhaps, even match the contribution dollar-for-dollar. An employer match is too good to pass up.  

Invest in a way you are comfortable with. In the mid-2000s, some Wall Street money managers directed assets into investments they did not fully understand, a gamble that contributed to the last bear market. Take a lesson from that example and avoid investing in what seems utterly convoluted or mysterious.

Realize that friends and family may not know it all. The people closest to you may or may not be familiar with investing. If they are not, take what they tell you with a few grains of salt.

Getting a double-digit annual return is great, but the main concern is staying invested. The market goes up and down, sometimes violently, but there has never been a 20-year period in which the market has lost value. As you save for the long run, that is worth remembering.2

      

Ryan Maroney may be reached at 949-455-0300 or www.fmncc.com

 

Investment advisory services are offered by Financial Management Network, Inc.(“FMN”) and securities offered through FMN Capital Corporation, (“FMNCC”), member FINRA & SIPC. Securities are not FDIC-Insured, are not bank-guaranteed, may lose value. FMN and FMNCC may only transact business in those states and international jurisdictions where we are registered/filed notice or otherwise excluded or exempted from registration requirements. The purpose of this web site is for information distribution on products and services. Information herein is taken from sources deemed reliable and neither FMN nor FMNCC are responsible for any errors that might occur.

Asset Allocation does not guarantee a profit or protect against a loss in a declining market.  It is a method used to help manage investment risk.

 Diversification does not guarantee a profit or protect against a loss in a declining market.  It is a method used to help manage investment risk.

 Neither Asset Allocation nor Diversification guarantee a profit or protect against a loss in a declining market.  They are methods used to help manage investment risk.

FMN/FMN Capital Corp. does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. 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 - gallup.com/poll/1711/stock-market.aspx [4/28/16]

2 - usatoday.com/story/money/personalfinance/2016/02/04/7-ways-millennials-can-get-jump-start-retirement-planning/78310100/ [2/4/16]

3 - marketwatch.com/story/the-real-reason-many-millennials-arent-saving-for-retirement-2016-02-17 [2/17/16]

4 - tinyurl.com/zmncqz6 [4/27/16]