Broker Check

The Weekly Wealth Report

May 09, 2022

The Week on Wall Street

With the Fed in focus, the markets experienced wide price swings over the course of last week, as technology companies led the market lower.

The Dow Jones Industrial Average slipped 0.24%, while the S&P 500 declined 0.21%. The Nasdaq Composite index dropped 1.54% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, fell 1.99%.

FACT OF THE WEEK

As we inch closer to summer, here are some interesting facts about swimming:

Paintings found in Egypt depict people swimming back in 2500 BCE.

Swimming became an Olympic sport in 1896.

Women only started competing in the Olympics swimming competitions in 1912 – 16 years after men.

President Gerald Ford had an outdoor swimming pool built at the White House in 1975.

The Titanic was the first ocean liner to have a swimming pool.

Swimming burns almost 40% more calories than biking per hour.

Swimming burns almost 30% more calories than running per hour.

’Fast pool’ is a kind of swimming pool with an effective gutter system that prevents the wave from creating.

Breaststroke is the slowest Olympic stroke.

A space shuttle turbopump could empty an Olympic pool in under 25 seconds.

Swimmers’ ankles are often so flexible, they can touch the ground with their toes while laying down on their backs.

Swimmers are actually sweating while swimming in the pool – they must remember to hydrate.

Benjamin Franklin invented swim fins - when he was just 11 years old, he came up with fins, which are more like many of us know today as swim paddles. They were worn on his hands to help catch more water and propel himself more with each stroke.

MARKET MINUTE

A Wild Week

After successive daily gains to begin the week, stocks staged a powerful relief rally in response to Wednesday’s Federal Open Market Committee (FOMC) announcement, aided by Fed Chair Powell’s comment that a 75-basis point hike was not under active consideration.

Stocks, however, dropped the following day as investors reassessed the implications of a tighter monetary policy. Also on Thursday, the yield on the 10-year Treasury Note closed above three percent. News that worker productivity fell 7.5% and labor costs rose 11.6% in the first quarter fanned inflation fears and added to investor unease. Despite a better-than-expected employment report, stocks closed out the week with another day of losses amid volatile trading.

Fed Raises Rates

The May 2022 FOMC meeting resulted in an increase of 50 basis points in the federal funds rate, the largest rate increase since 2000. In a post-meeting press conference, Fed Chair Powell said additional 50 basis point hikes are likely, acknowledging that inflation was much too high and sending assurances that he was committed to price stability.

The Fed also announced that it would begin reducing its $9 trillion balance sheet by $95 billion a month, a step the markets had been anticipating.

FINANCIAL STRATEGY OF THE WEEK

Planning tips for Retirement

The best financial plan isn’t optimized to the cent; instead, it’s flexible enough to allow for those unexpected moments while keeping you on track.

Fortunately, there are some common areas we can account for to make sure your plan is robust. That way, we can better handle whatever life throws our way.

Healthcare costs in retirement. The cost of hospital services has dramatically outpaced inflation over the last forty years. As health care costs rise, employers are shifting costs onto their employees. Fortunately, we have options. For example, if you want to keep your current employer’s plan after you retire, you can use COBRA for at least 18 months. The trouble is, you’re responsible for the whole premium (ouch). Never fear! We’re always here to help orchestrate your insurance coverage, savings plan, and retirement assets.

Life expectancy. As medical technology improves and life expectancy increases, the odds are good that you or your spouse will live past age 90. Let’s make sure your financial plan reflects that possibility. Life expectancy is a major driving force for rising healthcare costs. The average retirement lasts eighteen years - many retirements last longer.

Delayed retirement. Sixty is the new forty, right? For us, retirement means you have the option to work rather than the need to work. A robust financial plan gives you an idea of when you can call it a career or if you need to keep at it, rather than dictating the precise moment you can retire. How liberating is that? Based on the plan, you can retire if you want.

Putting together a robust financial plan is a team effort. If you need to update your retirement plan or discuss your current assumptions, let’s get some time on the calendar. We’re always here to help.

Have a great week!