FINANCIaL
FIELd NOTES
Who Is Buying In This Market?
A client recently asked, “Who is buying in this market?” It’s a great, simple question. If you turn on the news, it sure sounds like everyone is selling. But that is not the case. SPY, one of the most widely held ETFs has an average trading daily volume of 86 million shares - which equates to approximately $32 Billion trading hands every day.
For each seller represented here, there is a buyer. Even on a really bad day in the stock market, the fact alone that the market doesn’t fall to $0 means that there has to be buyers. So, who are the buyers?
A Unique Widow Social Security Claiming Strategy
Are you a widow or do you know someone who is a recent widow? If so, this strategy may be worth considering between the ages of 60 and 70.
Under Social Security, widows are entitled to a widow benefit as early as age 60, two years earlier than the earliest filing option of 62 for most retirees. The unique strategy that can be used here is filing for only widow benefits while allowing your own Social Security benefit to continue growing until the maximum age of 70…
Some Good News - Corporate Earnings
What drives stock market returns? Economic activity, politics, wars, viruses, inflation, interest rates...the list could go on. Over the long run, the answer is simply two things - (1) company earnings and (2) how much investors are willing to pay for those earnings.
With everything that has gone on this year, some bright news is that corporate earnings have remained fairly stable, with 5.1% growth through the end of September. What’s changed is how much investors are willing to pay for those earnings…
What Is in Your Control?
There has been nowhere to hide this year. Year-to-date (9/30/2022), the S&P 500 is down 25% and the bond aggregate is down a whopping 15%. It’s the worst-performing period for a balanced portfolio since 1931!
Do Future Retirees Benefit from Social Security’s 8.7% COLA Adjustment?
Many of my current retired clients received a sizeable cost-of-living adjustment (COLA) of 5.9% in 2022 and are set to receive an 8.7% increase in 2023 as inflation numbers remain high.
However, I recently had a client who has delayed taking their benefit ask if they will miss out on the high COLA adjustment since they do not have a current benefit that Social Security could increase…
Using Social Security's 8.7% COLA to Improve Your Finances
Social Security announced last week that there will be an 8.7% increase in Social Security Income payments in 2023. That equates to an average increase of $140/month starting in January. For many of my clients who worked into their late 60s, the increase will be $200-$300/month.
The increase is timely as many individuals have faced the burden of increased costs on everything from food to utilities. Many individuals have no other choice than to get caught up on bills that they have fallen behind on as prices have soared. For others, they may have the opportunity to start getting ahead…