There were three major themes that dominated headlines: emerging-market jitters early in the quarter, Russia's incursion into Ukraine, and a long and brutal winter. 

 

Despite a January hiccup, most of the major indexes climbed as the quarter wore on.  Bonds performed well as interest rates declined and the US inflation rate remained below the Federal Reserve's 2% target.  US stocks recovered from January jitters to end the quarter in positive territory. 

 

Following its March meeting, the Fed signaled interest rates could remain low for quite some time.  Fed officials did not provide any explicit reasoning as to why they may continue to hold rates below what might be considered normal, even after the economy is running on all cylinders. 

 

You may ask, what about all the issues the country is dealing with?  We have too much debt, the Federal Reserve is printing too much money, Congress is gridlocked and can't get anything done, and our standing in the world isn't what it used to be.

True, but the US is also the world's largest economy.  Our capital markets are the deepest and most transparent in the world.  Despite the shenanigans in D.C, we have one of the world's most stable democracies.

 

All of these elements create an environment that attracts foreign capital, especially from those who reside in less stable parts of the world.  In the meantime, the U.S continues to lead the world in innovation, and students around the globe still clamor to study in the U.S at some of the best universities in the world.  American innovation and entrepreneurship have been and will likely continue to be robust - just look at the corporate giants that were born over the last decade.  All this is not just a great marketing pitch for the USA.  Its part of the reason we hold stocks.

 

Let's be clear, we will eventually see another economic downturn, but the economy has recovered from every recession and then some.  A wager against the long-term health of the US economy has been a loser's bet since the founding of the republic.

 

This chart sums it up well:

 

 

Source 361 Capital 

USING YOUR IRA TO PURCHASE REAL ESTATE

 

 

When most people think of their IRA's, they think of investments in stocks, bond, and mutual funds.  Few people know that you can also invest in things like real estate or private equity with a special type of IRA called a self directed IRA.  Here is an article I wrote that was published by Yahoo Finance on using your Self Directed IRA to invest in real estate.

 

https://finance.yahoo.com/news/wealth-manager-marc-bautis-encourages-103000616.html

 

 

 

HEALTH CARE PLANNING IN RETIREMENT

 

Examples of things that could

 

 

 

For more than a decade, Fidelity, one of the world's largest providers of financial services, has calculated an annual estimate of medical expenses for retirees.  The estimate applies to retirees with traditional Medicare insurance coverage and does not include any costs associated with nursing-home care. A 65-year-old couple retiring in 2012 was estimated to need $240,000 to cover medical expenses throughout retirement.  The estimate has increased an average of 6 percent annually since Fidelity's initial calculation of $160,000 in 2002, with the exception of 2011 when the estimate declined $20,000.  As people age, health care costs typically continue to increase beyond the inflation rate, mainly because declining health requires more hospital visits, medications, and assisted care. 

 

Statistically, health care costs skyrocket in the last few months of life. Variables such as long-term care insurance and comprehensive living wills can help keep those costs in check to a degree. But because everyone's situation varies, it's important to consider the current health status of you and your spouse, your family history, and any employer-based health benefits that will be available to you in retirement. All this information plays into longevity calculations and what may be required to meet your future medical expenses.

 

Read the full article on my blog - http://retirementfitnesschallenge.com/health-care-planning-in-retirement/

DO YOU NEED A DIGITAL ASSET WILL?

 

 

According to a report from a digital research firm eMarketer, American adults spent more than five hours each day on the Internet last year, up from four hours and 31 minutes in 2012, and three hours and 50 minutes in 2011. Social media sites occupy a large portion of that online time: Data from research firm Ipsos Open Thinking Exchange shows that Americans between the ages of 18 and 64 who use social networks say they spend an average of 3.2 hours per day doing so. Nearly three-quarters of online American adults use social networking sites, and some 42% of online adults now use multiple social networking sites, says Pew Research Center.

 

In the process of spending more time online, Americans are creating a legacy of data that will outlive them-the inevitability of death poses new challenges. Not only are there consumers who wish to tidy up their virtual effects before they die; there are also estate lawyers in the early process of establishing what constitutes digital ownership, technology firms clamoring to offer new services that deal with the remnants of digital life, and social media companies coming up with platforms that memorialize the dead.

 

"The norms are evolving," says Andrea Matwyshyn, a professor of legal studies and business ethics at Wharton. "There will be a feedback loop over the next few years: Customer savvy and sophistication will increase, companies will begin to streamline their approaches, and the legal industry will formalize estate planning." "We have become progressively more reliant on digital communication and social media", notes Matwyshyn. "To many people, their digital persona is equally-and in some cases, more-important [than their physical] identity." And yet very few people have made arrangements for what will happen to their digital persona and online possessions when they die.

 

In 2012 the government included a "social media will" to its list of personal finance recommendations. The government suggests appointing an online executor to be responsible for the closure of email addresses, blogs, and other online accounts. This person would also carry out the deceased's wishes with regard to their social media profiles.  Someone's desire may be to completely cancel all profiles or keep them up as a memorial for friends and family to visit.

 

Read the full article on my blog - http://retirementfitnesschallenge.com/do-you-need-a-digital-asset-will/