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What's Happening Now

How much will I get from Social Security? Figuring out exactly how much you'll get from it isn't as simple as you'd hope.

Why Is a hospital machine tied to superbugs still in use? Have you had an endoscopy? The FDA said a device for cleaning endoscopes had to go.

Bricks-and-mortar retail is completely falling apart. Whether it's the disruption being caused by a little company called Amazon that's willing to sell items for razor-thin margins or even at a loss, or skittish consumers unwilling to crack open their wallets and purses, retailers with any kind of physical store base are being completely upended. Here's a complete wrap-up of news from the world of retail.

Everything you need to know about the power of attorney. Because the future is never certain, and an unexpected emergency that robs you of your ability to make choices can happen at any time, a power of attorney is something every adult - no matter age, circumstances, or needs - should utilize.

Searching for your dream home, but not sure how much you can afford to spend? You can't move to San Francisco unless you make at least $144,196. Here's how much you need to earn to afford buying a home in 27 metro areas across the country.

Costco executives are pouring money into a fast-food chain that's unlike anything else in America.

Why over-the-counter birth control could actually lead to more unwanted pregnancies.

Tour the house the Obamas will live in after they move out of the White House. President Obama and first lady Michelle will lease an 8,200-square-foot mansion in the Kalorama neighborhood of D.C.

You haven't truly budgeted until you've looked at this. Are you living in the optimal location for your financial situation? Why do you live where you live? Is it where you grew up? Do you enjoy its climate? Are the schools good? Really think about why you live there. And then think about moving.

How long will you live? This tool will tell you. You will answer a few questions about your health and demographic characteristics. The Longevity Illustrator will then produce charts that allow you to see the probabilities associated with how long you (and your spouse/partner, if applicable) may live.

Hotel prices could bust your summer travel budget! There's a dark side to cheaper flights and road trips, if you're hoping for a bargain summer vacation. Your hotel bill may more than offset the savings. Daily hotel charges might not be disclosed upfront.

FDA: Sugar should be called sugar.
Thanks to new guidance from the agency, "evaporated cane juice" may be a thing of the past.

Just because big coal Is collapsing doesn't mean Appalachia has to follow. Is an environmentally sustainable economic transition possible?

Go ahead, lick your cat! New device assures you no hairballs.

There are a bunch of apps out there that will actually pay you to shop. These apps all have the potential to help you earn some significant money.

June 2016

This month we've got some interesting information on critical issues such as how long you can expect to live and how much you can expect to get from Social Security.

You can take advantage of the insurance industry's "Longevity Illustrator" to plan for retirement. Estimating your income from Social Security is complicated, but there are "Social Security Calculators" to help. See the related articles in our What's Happening Now section in the left-hand column.

Speaking of estimating your financial situation, the article "Here are six free tips to help estimate what your home Is truly worth" (below) gives you some useful tools for figuring out how much you can expect to get for your home should you decide to sell. Of course you can contact a real estate broker, but this will give you a second opinion.

Chornyak & Associates are proud to have sponsored Columbus Kickball for a Home, along with Coca-Cola�, Wendy's�, and NBC4. The teams and sponsors raised more than $34,000 to help find loving, permanent homes for children in foster care. For more information on the Dave Thomas Foundation, which sponsors Columbus Kickball for a Home, click here.

We hope you are enjoying the beginning of summer! As always, we welcome any questions or comments you may have on our newsletter or financial planning issues. Contact us at: 614-888-2121 or 877-389-2121 toll free, or by e-mail at chornyak@chornyak.com.

Sincerely,

Joe

Building a better, budget-friendly vacation

With summer just around the corner, it's time to get moving on your vacation plans before it's too late. Whether you decide to book online yourself or go through a travel agent, here are some tips to help you save time and money. From Commonwealth Financial Network.

If you're short on time:

Not in the mood to do the research yourself? You can avoid spending hours figuring out where to go and what to do by working with an experienced travel agent. Give your agent a general idea of what you're looking for and let him or her put together a plan that fits your schedule and budget. Besides saving you time, getting ideas from an expert might prompt you to try something different this year!
More of a do-it-yourself type? Travel websites such as Expedia, Kayak, and Travelocity make it easy to plan, allowing you to book your flight, hotel, and car rental with just a few clicks. If you want to stay at a particular hotel, be sure to check its site as well, as some deals are available only when you book directly with the property.
Waited too long to book a beach vacation? You may not be out of luck if you're flexible with your dates. Consider going on an off-peak week (that is, outside of the July-August rush), when you'll likely find greater availability and lower prices.

Getting more bang for your vacation buck:

After months of low oil prices, cost savings may be starting to trickle down to airline passengers. Domestic travelers can expect to pay an average of $240 for a round-trip ticket in June, according to the airfare prediction app Hopper.

If hunting for discounts is part of the thrill in booking your vacation, there are even more ways to save:

Time it right. Sunday is often the most expensive day to fly during the summer, while Tuesday and Wednesday tend to be the cheapest, Fortune reports.
Don't wait too long to book your flight! Although winging it can occasionally work in your favor, it often means paying more for your tickets-especially if your travel dates aren't flexible. If you want to maximize your savings, keep an eye out for bargains in the period starting four months ahead of your trip and up through three weeks prior, advises CheapAir.com. When you spot a deal during this window, it's usually wise to go ahead and make your purchase.
Leverage your agent's connections. Your travel agent, if you decide to go with one, may be able to offer discounts through relationships he or she has established with hotels and airlines. Just ask!

Peruse a package. If you book through a travel website, be sure to check out the vacation packages it may offer. Depending on your time frame and destination, purchasing a package may add up to big savings. All-inclusive deals with meal plans can be worthwhile also, but it pays to do your research. Does the plan cover what you're really looking for, or would it be less expensive to purchase what you need � la carte? Take a close look at what's covered, as well as menu options and reviews from other travelers, before making a decision.
Go local. If you plan to rent a beach house or other non-hotel property, it's a good idea to take advantage of local rental agents and resources. Although larger rental agencies may be more prominently advertised, you might find better deals and hidden gems by reaching out to local property managers.

Wherever and whenever you decide to go, a little proactive planning will help set the stage for a truly relaxing vacation-and possibly leave you with extra cash in your pocket!

� 2016 Commonwealth Financial Network^�

Here are six free tips to help estimate what your home Is truly worth

Lifehack.org contains a wide range of help topics in areas such as life decisions, motivation, money, productivity, and many more. Here are some ways that you can estimate the value of your home to compare with the information a real estate broker might give you.

As a homeowner considering selling your most valuable asset, your home, it can be frustrating to not have access to the same tools that would make quick work for any licensed real estate agent to estimate your home's actual value. Yet, as an ordinary citizen, you may have spent hours or even days on end navigating popular websites that might help you find out what your home is worth.

If that's you, then worry not, because well over 27,000 home owners just like you have Googled the key words "how much is my house worth," just in the last 30 days alone.

1. Use Free Online Home Value Estimators like Zillow

It's not a secret that Zillow has a free home appraisal calculator built into it's real estate website, but is it accurate in determining what your home is worth? Zillow has reduced its 2006 error rate of 13.6% down to a current error rate of only 7.9%, according to Zillow's own research.

So should you solely use Zillow? No, but you should absolutely find the Zestimate for your specific property, write it down and see how it compares to the other figures that you will gather later.

2. Generate Legitimate Offers From Real Investors

As a seasoned real estate investor of over 5 years, I've spoken to and dealt with many homeowners that say they "need to sell", yet they were hesitant to sell to me at my price. Why? Not because my offer was too low; it was because they didn't feel that they knew exactly how much their house was really worth.

So, to ease their concern about value, they went through the extra legwork to contact a few other investors and also got offers from them. They then compared those offers against mine to give them a better picture of their current "as-is" cash value of their home. But why not take it one step further and ask each investor that you meet with, to tell you what they would sell the house for, once any improvements were completed.

This is an excellent way to get a good ballpark figure of your home's value, based on the hard work & research of three unbiased investors.

3. Research Your local Courthouse Deeds of Trusts

Most homeowners don't have enough experience in the real estate arena to know what they don't know. In regards to finding your home's value using guerrilla techniques, you might not know that researching your local courthouse's deeds of trusts could help you get a very good idea of what homes are selling for in your very neighborhood. Here's one way to go about finding a deed of trust:

1. Using your local County Appraiser's Website, enter your street name or a street nearby where you live

2. Find a house that has a Deed date of within the last 12 months, like this one

3. Enter the home's legal description into your County's Clerk Office Records Website

4. In the search results, find the last Deed of Trust filed. Click on it...you'll see the buyer's loan amount when they purchased the property

4. Estimate Value Based on Your Home's Appraised Tax Value

Having run hundreds if not thousands of comparable sales in my career as a Realtor/Investor, I have found that in my county (most likely many counties are the same), a properties assessed tax appraised value is equal to about 88-92% of it's market value. This means that if a home's market value is $100,000, then most likely its tax appraised value will be in the range of $88,000 to $92,000.

If you're county appraiser's tax rolls are closely aligned to actual market values like this, then this quick hack may work for you.

Once you have the property's loan amount and loan type (e.g. conventional/FHA/ VA), you can easily work your way backwards to get an idea of what the home probably sold for. For example, most FHA buyers finance the full 96.5% of the purchase, so calculate ($174,000 X 1.0362 = $180,298).

This hack will get you very close to the total purchase price of the house, however, this method works best with FHA buyers. Many times the deed of trust will specify if it was an FHA loan or not.

Continue reading here.

Eight steps to make your first million dollars

Inc. magazine interviewed successful millionaire, Dharmesh Shah, who gives us his suggestions for a slow, steady path to getting rich.

Many people hope to get rich. (Not that there's anything wrong with that.)

The following is a guest post from Dharmesh Shah, the co-founder of HubSpot, the inbound marketing company, and the author of the HubSpot Culture Code slide deck that has been viewed by 2.5 million people on SlideShare alone.

Here's Dharmesh:

Of course, money isn't everything. Not by a long shot. Where your definition of success is concerned, money may rank far down the list. Everyone's definition of "success" is different.

Here's my definition: Success is making the people that believed in you look brilliant.

For me, money doesn't matter all that much, but I'll confess it did at one time (probably because I didn't have very much).

So let's say money is on your list. And let's say, like millions of other people, that you'd like to be a millionaire. What kinds of things should you do to increase your chances of joining the millionaire's club?

Here are the steps I'd suggest. They're neither fast nor easy. But they're more likely to work than the quick and easy path.

1. Stop obsessing about money.

While it sounds counterintuitive, maintaining a laser-like focus on how much you make distracts you from doing the things that truly contribute to building and growing wealth.

So shift your perspective, and see money not as the primary goal but as a byproduct of doing the right things.

2. Start tracking how many people you help, even if in a very small way.

The most successful people I know -- both financially and in other ways -- are shockingly helpful. They're incredibly good at understanding other people and helping them achieve their goals. They know their success is ultimately based on the success of the people around them.

So they work hard to make other people successful: their employees, their customers, their vendors and suppliers... because they know, if they can do that, then their own success will surely follow.

And they will have built a business -- or a career -- they can be truly proud of.

3. Stop thinking about making a million dollars and start thinking about serving a million people.

When you only have a few customers and your goal is to make a lot of money, you're incented to find ways to wring every last dollar out of those customers.

But when you find a way to serve a million people, many other benefits follow. The effect of word of mouth is greatly magnified. The feedback you receive is exponentially greater and so are your opportunities to improve your products and services. You get to hire more employees and benefit from their experience, their skills, and their overall awesomeness.

And in time, your business becomes something you never dreamed of-because your customers and your employees have taken you to places you couldn't even imagine.

Serve a million people -- and serve them incredibly well -- and the money will follow.

4. See making money as a way to make more things.

Generally speaking, there are two types of people.

One makes things because they want to make money; the more things they make, the more money they make. What they make doesn't really matter that much to them -- they'll make anything as long as it pays.

The other wants to make money because it allows them to make more things. They want to improve their products. They want to extend their lines. They want to create another book, another song, another movie. They love what they make and they see making money as a way to do even more of what they love. They dream of building a company that makes the best things possible... and making money is the way to fuel that dream and build that company they love.

While it is certainly possible to find that one product that everyone wants and grow rich by selling that product, most successful businesses evolve and grow and, as they make money, reinvest that money in a relentless pursuit of excellence.

5. Make it your goal to do one thing better than anyone.

Pick one thing you're already better at than most people. Just. One. Thing. Become maniacally focused at doing that one thing. Work. Train. Learn. Practice. Evaluate. Refine.

Be ruthlessly self-critical, not in a masochistic way but to ensure you continue to work to improve every aspect of that one thing.

Financially successful people do at least one thing better than just about everyone around them. (Of course, it helps if you pick something to be great at that the world also values -- and will pay for.)

Excellence is its own reward, but excellence also commands higher pay, greater respect, greater feelings of self-worth, greater fulfillment, a greater sense of achievement... all of which make you rich in non-monetary terms. Win-win.

6. Make a list of the world's ten best people at that one thing.

How did you pick those ten? How did you determine who was the best? How did you measure their success?

Use those criteria to track your own progress towards becoming the best.

If you're an author, it could be Amazon rankings. If you're a musician, it could be iTunes downloads. If you're a programmer, it could be the number of people that use your software. If you're a leader, it could be the number of people you train and develop who move on to bigger and better things. If you're an online retailer, it could be purchases per visitor, or on-time shipping, or conversion rate...

Don't just admire successful people. Take a close look at what makes them successful. Then use those criteria to help create your own measures of success.

Continue reading the article here.

Market Update

A strong end to a weak month

U.S. financial markets ended strongly in May, as economic reports improved and the Federal Reserve (Fed) suggested that the economy had healed enough for it to start raising rates. After dropping between 1 percent and 2 percent mid-month, stocks rallied at month-end. All major U.S. equity markets posted gains, with the Dow Jones Industrial Average up 0.49 percent, the S&P 500 Index up even more at 1.80 percent, and the Nasdaq doing better yet, increasing a surprising 3.62 percent.

The good performance in May was driven by unexpectedly positive corporate earnings news. Although down 6.7 percent, first-quarter earnings declined less than the 8.8-percent drop expected. Moreover, for first-quarter earnings reported by the end of May, seven of ten sectors had posted higher growth rates; this, too, was a consequence of positive earnings surprises.

Despite the less-than-stellar overall earnings results, many companies did do well. Almost three-quarters of companies, 72 percent, beat earnings expectations, which was above the average percentage of beats in past quarters. In addition, six of ten sectors showed revenue growth and four of ten sectors showed earnings growth. While results for the first quarter of 2016 were weak, conditions improved substantially-especially looking forward to the rest of the year-and the market reacted accordingly.

Technical factors remained supportive for U.S. markets. All three major indices finished May well above their 200-day moving averages, with the Nasdaq making that technical leap toward month-end, improving on its results for April.

Developed international markets didn't fare as well as their U.S. counterparts, experiencing a similar pullback during the month but a smaller rally at month's end. Even though the MSCI EAFE Index was down about 2 percent in mid-May, it finished the period with only a 0.91-percent loss. Just as with U.S. markets, the catalyst for the EAFE rally was improving economic and company news. This was offset, however, by continued political worries in Europe and disappointing news from Japan. Nevertheless, technical factors for the index improved, and it closed slightly above its 200-day moving average, suggesting that fundamental market trends may be getting better.

Emerging markets, as reflected in the MSCI Emerging Markets Index, were hit even harder than developed markets but managed to recover from a 7-percent loss mid-month to drop "only" 3.71 percent at month-end. Continued concerns about an expensive dollar and its effect on emerging markets, exacerbated by worries about a potential Fed rate increase, drove markets down. Here the technical picture was also better, as the index did move slightly back above its 200-day moving average.

Broad fixed income markets also had a weak May, with the Barclays Capital Aggregate Bond Index reporting a small 0.03-percent gain. U.S. Treasury rates dropped slightly, helping the performance of U.S. government debt, but the release of hawkish Federal Open Market Committee (FOMC) minutes increased volatility during the month. High-yield, as represented by the Barclays Capital U.S. Corporate High Yield Index, performed well, rising 0.62 percent.

Another weak first quarter for the U.S. economy, but signs of spring

The gross domestic product (GDP) report, released at month-end, showed that the U.S. economy had grown marginally faster, 0.8 percent, in the first quarter of 2016 than the 0.5-percent uptick initially estimated. This was consistent with the experience of the last two years, where a weak first quarter was followed by faster growth. In line with that, May's economic data was mixed. Overall, however, the month's numbers suggested that growth should increase substantially going forward.

Weak data came from manufacturing and capital investment, with the ISM Manufacturing survey indicators still hovering between expansion and contraction. In addition, orders for durable goods and capital equipment continued to run below expectations and are either flat or down over the previous 12 months. The effects of the strong dollar and low oil prices on the U.S. industrial economy linger, and even though those headwinds are fading, we have not yet seen significant improvement.

Offsetting this is substantial improvement in the service sector and consumer demand, which each constitute a much larger share of the economy. The ISM Nonmanufacturing survey rose more than expected, and the most forward-looking component, the new orders index, hit a six-month high. At seven-eighths of the economy, the service sector matters.

Similarly, in April, as announced in May, consumer spending rose by the most in two years, with upward revisions to previous months also reported. Consumer spending represents two-thirds of the economy, so faster growth should lift overall growth in the second quarter. Housing sales also surprised to the upside across the board, with new home sales particularly strong.

The growth in consumer spending was driven by continued expansion in the employment arena. Although job growth ticked down in April, to 160,000, the average hours worked rose, resulting in an increase in overall labor demand. Wage growth also continued, rising to 2.5 percent over the past year.

Given the mix of generally positive fundamentals and the growing consumer willingness to spend, economic growth is likely to accelerate in the second quarter. Forecasts for GDP growth now range up to 2.9 percent-and possibly higher. Though this estimate may be too optimistic, signs of spring are definitely visible, and faster sustainable growth becomes increasingly likely in the second half of the year.

Central banks and interest rates

As previously noted, even the Fed is starting to believe that the economy is healing. After years of discouraging FOMC meeting minutes, the most recent release came as a surprise, commenting that the economy was considered to be at full employment and inflation was considered to be moving in the right direction. This unanticipated positive view was accompanied by a clear statement that rate increases were quite possible this year and could come earlier than expected-maybe as soon as the end of June.

The implications of the FOMC statements are positive for the economy but mixed for markets, as higher interest rates might act as a headwind going forward. With that said, continued stimulus by foreign central banks is likely to constrain rate increases. Consequently, the combination of Fed confidence in the economy and continued low rates suggests that interest rates will remain supportive of the economy for at least the next couple of months, which should also help to sustain economic growth.

International risk remains

Although conditions in the U.S. are improving, at the international level risks remain. Europe is the focus for the moment. The most immediate risk is the June 23 referendum in the United Kingdom regarding whether Britain should leave the European Union (EU). The success of the anti-EU parties in demanding such a referendum there could encourage this possibility in other countries. Should the referendum pass-and polls indicate that it is possible though not likely-significant market turbulence is possible.

Another concern in Europe is the return to center stage of negotiations over Greek debt. With the International Monetary Fund and Germany at odds again, and with Greece possibly unable to comply with EU fiscal requirements, expect more headlines. Nevertheless, even if Greece were to default, systemic risk is much lower now than in the past, though uncertainty may still rattle markets.

The other major international risk is China. Growth continues to disappoint, and China's government continues to increase stimulus. At the same time, concerns are increasing again about China's ability to manage its economy and, especially, its currency. Perhaps in response to domestic concerns, China has become much more aggressive with respect to other countries, expanding its installations in what the U.S., for one, considers international waters in the South China Sea. This will continue to raise political concerns in addition to very real economic ones.

U.S. economic growth continues and on a sustainable basis

With the U.S. economy on the mend and the bulk of the risk coming from international issues, we seem to be returning to normal. We are not quite there yet, but we are indeed getting closer.

Normal does not mean, however, that risks have vanished; they have simply changed. With the Fed getting closer to raising rates, the risks associated with those higher rates are garnering more attention. In addition, the previously mentioned British referendum and Greek debt woes represent immediate risks. Moreover, the risk associated with China's slowing growth, though less immediate, is potentially just as real a concern. Finally, although the U.S. recovery is expected to continue and even accelerate, that is neither guaranteed nor something that will go on forever.

Cautious optimism remains the appropriate outlook for investors. As always, maintaining a big-picture perspective and diversified portfolio is the best way to meet financial goals. Enjoy the current improvements but stay focused on the long-term horizon rather than on intermediate events-good or bad.

Authored by Brad McMillan, senior vice president, chief investment officer at Commonwealth Financial Network.

All information according to Bloomberg, unless stated otherwise.