THE WEEK ON WALL STREET
Stocks were mixed during the holiday-shortened trading week as uncertainty over conflict in the Middle East weighed on investors.
The S&P 500 Index slipped by 0.15 percent, while the Nasdaq Composite Index rose by 0.21 percent. The Dow Jones Industrial Average was flat (+0.02 percent). The MSCI EAFE Index, which tracks developed overseas stock markets, declined 1.54 percent.
FACT OF THE WEEK
On June 23, 1868, Christopher Latham Sholes patents the QWERTY typewriter, revolutionizing communication. His first version was cobbled together using an old table, a circular piece of glass, a telegraph key, and piano wire.
MARKET MINUTE
Stocks Rise, Then Slump
Stocks opened higher, and oil prices fell at the start of the week as investors hoped Middle Eastern tensions would ease. However, as investors parsed through updates on the conflict, stocks fell over ongoing uncertainty. Conflicting statements from those involved, as well as from world leaders, contributed to the uncertainty.
Midweek, stocks rallied ahead of the Fed's interest rate decision. Markets seemed to dismiss news that housing starts dropped unexpectedly to their lowest level in five years.
Following the stock market holiday, anxious investors refocused on geopolitical tensions and developments. As the week closed out, investors appeared to take a risk-off approach heading into the weekend.
The Fed Holds Rates Steady
As expected, the Federal Reserve kept the Fed funds rate at its target range of 4.25 percent and 4.5 percent. However, the central bank did suggest it may adjust rates later this year, and policymakers expressed concerns about inflation and the outlook for gross domestic product.
Following the decision, Fed Chair Powell said policymakers are “well positioned to wait” before moving on short-term rates. Powell indicated that trade policy has clouded the inflation outlook, making policymakers concerned about consumer prices.
FINANCIAL STRATEGY OF THE WEEK
Medicare Basics
One of the biggest decisions to make in retirement is ensuring you have the health care coverage you need, when you need it. Medicare can be a complicated program to navigate and as you approach the time in which you can begin enrollment in the Medicare program, we thought we’d send along resources to make the process easier.
It’s helpful to understand the basics to choose the best options for your health and budget. With certain parts of Medicare offered by the government and other options available to purchase through private insurers, putting all the pieces of the puzzle together can be complicated. Here are the main features of Medicare to be aware of as you determine your needs and when you should opt into Medicare coverage:
Eligibility: Medicare is available to individuals ages 65 and older, younger people with certain disabilities, and those with End Stage Renal Disease (ESRD).
Coverage: The Medicare program is broken down into four main parts: A, B, C, and D. Each covers different areas of health care. Some plans are government offered and some are offered by private healthcare companies for a separate cost. Here are the overarching coverages of each plan:
Part A: Hospital-related services & emergency care
Part B: Doctor visits, lab work & preventive care
Part C: Combines A & B with dental, vision, hearing, and/or prescription drug coverage
Part D: Prescription drug coverage
Enrollment Periods: Initial enrollment spans a total of seven months; the three full months before your 65th birthday, your birthday month, and the three months after. Unless you qualify for a Special Enrollment Period, failure to enroll at age 65 could result in a permanent penalty up to 10% for every 12 months you could have enrolled but did not. There are also several general enrollment periods each year for specific purposes.
Premiums: While most don’t pay a premium for Part A, premiums for Part B & D are dependent on income, higher-income earners will pay escalated premiums. If you do not receive Part A for free, you will be responsible for paying a premium for that part, as well. You can click here to see Medicare premiums at a glance.
The particulars of Medicare can be intimidating and budgeting for this expense in retirement is crucial. We can help you create a plan that suits both your medical and financial needs. Please let us know what questions you have and how we can help!
Have a great week!