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The RFG Weekly Wealth Report

March 18, 2019
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The big story last week was the sudden grounding of Boeing 737 Max 8 and 9 passenger jets in dozens of countries. The financial effects of this ban could potentially impact the airline industry and segments of the economy for months.

FACT OF THE WEEK

Young inventors have proven it doesn't take decades of life experience to have a great idea and transform it into a successful invention. Young creator contributions spanning from everyday items to cutting-edge innovations, from the Trampoline to creation of the Braille Language. From the many, here are a few natural innovators:

• Trampoline Creator: George Nissen, age 16

• Snowmobile Creator: Joseph-Armand Bombardier, age 15

• Braille Language Creator: Louis Braille, age 12 

MARKET MINUTE

While the news created a headwind for the Dow Industrials, stocks managed to post solid gains for the week. The Nasdaq Composite rose 3.12%; the S&P 500, 2.46%; the Dow, 2.25%. 

Bullish sentiment was also evident overseas. Looking at the MSCI EAFE index, international stocks advanced 1.93%. 

Trade Meeting Delayed

Wall Street expected President Trump and Chinese President Xi to discuss trade issues this month. Thursday, Bloomberg reported that their talk had been postponed, with no firm date ahead. 

Muted Inflation 

The latest Consumer Price Index showed just a 1.5% rise in overall consumer costs in the year ending in February.

This number does not suggest an overheating economy. During a 60 Minutes interview last week, Federal Reserve Chairman Jerome Powell said the central bank did "not feel any hurry" to make a rate move. 

Tax Tip

If you turned 70.5 last year, April 1 is your final deadline to receive your initial Required Minimum Distribution (RMD) from a traditional IRA, SEP-IRA, SIMPLE IRA, or employer-sponsored retirement plan. If you take your initial RMD from these retirement accounts this year, you must receive your second RMD from them by December 31, 2019.    

FINANCIAL STRATEGY OF THE WEEK

What risks do I need to consider when planning for retirement? 

A retirement plan can be effected by many unforeseen circumstances, but you should consider five major challenges most retirees face: 

• The potential for outliving one's assets

• The threat of rising living costs

• The impact of increasing health care costs

• The threat an inapt investment portfolio subsequently has on  reaching retirement spending goals.

• The damage to long-term financial security that can be caused by excessive withdrawals in the early years of retirement. 

Understanding each of these challenges can lead to more confident preparation. If you or someone you know needs help analyzing your retirement risks, please feel free to contact me.