Great First Half of the Year!

The question on everyone’s mind is “Can this market keep going higher?” The bond market doesn’t think so. The 10 year U.S. Treasury bond is currently priced around 2%. As rates decrease, the probability of recession increases. However, the U.S. economy is still on track. Unemployment is at 3.6%. U.S. GDP was over 3% for the first quarter. We are not expecting the GDP to be as good in the second quarter, but we are expecting solid growth to continue in the U.S. The definition of a recession is 2 consecutive quarters of negative GDP. We don’t see that happening any time soon, so we continue to be cautiously optimistic about the stock market.

Our clients who have used eMoney for retirement planning have given us positive feedback. We would like to remind everyone that this is a free service that we offer to all of our clients. Whether you have been retired for some time or you are wondering what retirement will look like for you, we can walk you through different retirement scenarios. It is better to know where you stand today instead of guessing and hoping for the future.

With interest rates back at low levels, now is a good time to review your mortgage to determine if it makes sense to refinance. 30 year fixed mortgage rates are back below 4%. As always, we are here to help. Give us a call if you would like us to review your mortgage information.

The long term average interest rate of the 10 year U.S. Treasury is 4.0%. With the 10 year currently trading around 2%, it is near the lower end of its historical range. When thinking about life insurance and/or annuities, it is always a good idea to keep interest rates in mind. The higher the interest rate, the better life insurance/annuity contract you can receive. This is because when an insurance company sells a life insurance/annuity contract, they lock in their gain by purchasing bonds to service your contract at the same time. When interest rates are higher, they can offer you a more lucrative contract than when interest rates are low. As always, if you are thinking about purchasing a life insurance contract or an annuity, contact us first. We are your fiduciary and can give you an honest assessment of the product. But remember, when someone tries to scare you into buying a product, it is normally not in your best financial interest to purchase it.

When was the last time you reviewed your will and/or trust documents? Now is a good time to make sure that your documents are up to date. If you have an IRA, remember that it will pass to your beneficiaries outside of your will and/or trust documents. We have forms that allow you to update the beneficiaries for your IRA. Please contact us if you have any questions about who is currently listed as the beneficiary for your IRA.

Yours truly,

Michael Cantlon
Thomas Guyett
Robert Gephart