Broker Check

The RFG Weekly Wealth Report

June 24, 2019
The Week on Wall Street
The S&P 500 hit an all-time peak of 2,964.03, in intraday trading Friday, while improving 2.20% across five market days. The Dow Jones Industrial Average and Nasdaq Composite posted respective, 5-day advances of 2.41% and 3.01%. In addition, the MSCI EAFE benchmark of overseas stocks rose 2.58%.
A White House tweet and the latest monetary policy outlook from the Federal Reserve sent the bulls running. These were the top two financial news items in an eventful week – a week in which the value of West Texas Intermediate crude rose 9.4%, the price of gold went above $1,400 for the first time in six years, and the 10-year Treasury yield fell below 2%.


Popsicles, a popular summer treat, was accidentally invented by an 11-year-old boy in San Francisco in 1905. He left a glass of soda sitting outside and by the next morning the soda had frozen. He began selling them at an amusement park in New Jersey. In the U.S., cherry is the number 1 flavor.


The Fed’s June Policy Statement
The central bank stood pat on interest rates this month, but the expectations of some of its policymakers changed. About half of the 17 Fed officials who have a say in monetary policy now project either one or two quarter-point rate cuts by the end of the year. As recently as March, no Fed official saw grounds for a 2019 cut.  
Markets interpreted this shift as a sign that the Fed might soon ease. While a rate cut is by no means a given, traders now believe that the Fed will make either a quarter-point or half-point cut at its July meeting.  
Last Tuesday’s Market-Moving Tweet 
A day earlier, stocks rose after President Trump stated that he and Chinese President Xi Jinping “will be having an extended meeting” at this week’s G-20 summit in Japan.  
Investors were encouraged by this note, sensing a chance for progress in U.S.-China trade talks.
Final Thought
With tensions persisting between Iran and the U.S., investors are keeping a close eye on both commodity prices and stock indices. Economic or geopolitical developments could heavily influence the short-term movement of the markets.


You should consider including the following in your retirement plan:
An income strategy that will reliably cover your expenses for the rest of your life. This, of course, means knowing what your expenses are. But it's also about maximizing your Social Security benefits, having a plan for inflation, knowing how a surviving spouse will adjust to any changes in income and expenses; and helping protect your assets against longevity risk, as retirement can now last 30 years or longer. 
A financial strategy that will help protect and preserve the assets you don't draw from month to month. This includes assessing (or reassessing) your risk tolerance; looking at how you can minimize fees within your portfolio; understanding volatility and how it can hurt your portfolio, especially in the years just before and after you retire; and looking at ways to reduce risk while still working toward your goals.
A tax strategy that helps you morally, legally and ethically disinherit the IRS and keep more money for your family. Whether your tax rates go up, down or stay the same in the future, you'll need a plan. This means assessing the taxable nature of your current holdings (pretax vs. after-tax, for example) and the order in which you'll withdraw from different types of accounts.
A health care strategy that addresses rising medical costs and looks at long-term care options in case of a chronic illness.
A legacy strategy that ensures your money gets to your beneficiaries in the most tax-efficient way and your estate doesn't end up in probate. Working with estate and tax attorneys, you may wish to set up a trust or other protections to prevent your IRA from becoming fully taxable to your beneficiaries upon your death.
As always, please contact my office with any questions or financial concerns you may have.
Have a great week!