THE WEEK ON WALL STREET
Trade developments and continued momentum pushed all three major averages to modest gains again for a shortened holiday trading week. The S&P 500 Index rose 1.72 percent, while the Nasdaq Composite Index added 1.62 percent. The Dow Jones Industrial Average advanced 2.30 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, increased 0.19 percent for the week through Thursday.
FACT OF THE WEEK
On July 7, 1986, former President Jimmy Carter and First Lady Rosalynn Carter spend a hot summer day in Chicago, celebrating their 40th wedding anniversary while building a home in the West Garfield Park neighborhood for the Georgia-based nonprofit Habitat for Humanity.
The Carters helped build a new, four-unit townhouse, located at the southeast corner of Maypole and Kildare Avenues. Joining the Carters were more than 150 workers, including about 70 volunteers from local building trades unions. Jimmy Carter, who had left office five years ago, worked a 14-hour day sawing and hammering. Despite rainy weather, the construction was completed in four days, during which the Carters stayed at the nearby Guyon Hotel. Carter told reporters that Habitat for Humanity had given him and his wife “a new dimension in our lives.”
Every year since 1984, Carter has donated a week of his time and building skills to Habitat for Humanity. The Carters each year led a major building event called the Carter Work Project that attracted thousands of volunteers. Typically, the event alternated between a U.S. site and overseas site. They worked at many sites in Asia, including Thailand, China, Laos, Cambodia, Vietnam, Korea, and India. Domestically, the Carters led a volunteer building team along the U.S. Gulf Coast in 2008, helping the region to rebuild after Hurricane Katrina hit in 2005.
MARKET MINUTE
Stocks Gain on Trade Developments
Stocks continued their momentum from the prior week's records following Canada's rescinding of its digital services tax, rising on optimism as investors waited for more news on trade.
The S&P 500 and Nasdaq took a breather on July’s first trading day, while the Dow Industrials posted a modest gain. Then, stocks rallied after the news of the trade deal with Vietnam, moving past the latest ADP employment report, which showed reduced jobs last month for the first time in two years.
In a quick retort to the ADP report, a better-than-expected June jobs report from the Bureau of Labor Statistics gave stocks another boost, reassuring investors that the U.S. economy was weathering trade and geopolitical shocks. The S&P and Dow hit record highs as the short trading week ended.
Jobs Report Mostly Positive
The labor report for June had a few points for investors to cheer. First, employers added 147,000 jobs in June—that was 37,000 higher than economists were expecting. Unemployment ticked down to 4.1 percent from 4.2 percent. Previously reported job gains from April and May were revised upward by 16,000.
Still, companies are in a “no hire, no fire” mode as they wait to see how trade policy impacts the economy. Caveats to the headline numbers: most gains were seen in government and healthcare. Several other sectors, including manufacturing and professional services, were flat or diminished.
The takeaway: good news overall, but uncertainty still lingers beneath the employment surface.
FINANCIAL STRATEGY OF THE WEEK
Find That Lost Retirement Account
Do you have a long-lost retirement account left with a former employer? Maybe it’s been so long that you can’t even remember. With over 24 million “forgotten” 401(k) accounts holding roughly $1.35 trillion in assets, even the most organized professional may be surprised to learn that they have unclaimed “found” money.
What Are “Forgotten” Retirement Accounts?
Considering that baby boomers alone have worked an average of 12 jobs in their lifetimes, it can be all too easy for retirement accounts to get lost in the shuffle.2 Think back to your first job. Can you remember what happened to your work-sponsored retirement plan? If you’re even slightly unsure, then it’s time to go looking for your potentially forgotten funds.
Starting Your Search
One of the best ways to find lost retirement accounts is to contact your former employers. If you’re unsure where to direct your call, try the human resources or accounting department. They should be able to check their plan records to see if you’ve ever participated. However, you will most likely be asked to provide your full name, Social Security number, and the dates you worked, so be sure to come prepared.
If your former employer is no longer around, look for an old account statement. Often, these will have the contact information for the plan administrator. If you don’t have an old statement, consider reaching out to former coworkers who may have the information you need.
Even if these first steps don’t turn up much info, they can help you gather important information.
Websites to Check
Next, it’s time to take your search online. Make sure you have as much information as possible at hand and give the following resources a try.
National Registry of Unclaimed Retirement Benefits
This database uses employer and Department of Labor data to determine if you have any unpaid or lost retirement account money. Like most of these online tools, you’ll need to provide your Social Security number, but no additional information is required.
FreeERISA
If your forgotten account was worth more than $1,000 but less than $5,000, it might have been rolled into a default traditional Individual Retirement Account (IRA). Employers create default IRAs when a former employee can’t be located or fails to respond when contacted. You can search for retirement and IRA accounts for free using this database, but registration is required.
Once you reach age 73, you must begin taking required minimum distributions from a traditional IRA in most circumstances. Withdrawals from traditional IRAs are taxed as ordinary income and, if taken before age 59½, may be subject to a 10 percent federal income tax penalty.
The U.S. Department of Labor
Finally, the Department of Labor tracks plans that have been abandoned or are in the process of being terminated. Try searching its database to find the qualified termination administrator (QTA) responsible for directing the shutdown of the plan.
What’s Next?
Once you’ve found your retirement account, what you do with it depends on the type of plan and where it’s held. Your location also matters. Depending on where you live, the rules and regulations may differ.
No matter what you decide to do, be sure to involve your tax and financial professionals since they’ll be informed on current regulations for your state. They can also help you identify a strategy for your newfound money: travel, investment, or maybe that vacation home you’ve always wanted. You worked hard for that money, after all, so you should get to enjoy it!