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Dorion-Gray Capital Management® For the week of November 12, 2018

| November 12, 2018
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THE MARKETS...

The three major indexes fell Friday as oil prices dropped 1.0 percent amid a rising global supply and the Federal Reserve appeared on track to raise interest rates next month. Reports from China indicating falling domestic demand and manufacturing activity increased downward pressure. For the week, the Dow rose 3.00 percent to close at 25,989.30. The S&P gained 2.21 percent to finish at 2,781.01, and the NASDAQ climbed 0.68 percent to end the week at 7,406.90.

Waiting for the Right Person — Among Americans who married in 2017 for the first time, the median age for men was 29.5 years old and the median age for women was 27.4 years old (source: Census Bureau, BTN Research).

Super-Size It Thirty-five percent of workers surveyed in the fall of 2017 who are participating in and contributing to a 401(k) or similarly defined contribution plan are deferring more than 10 percent of their pretax wages (source: Transamerica Retirement Survey of Workers, December 2017, BTN Research).

Tough October The S&P 500 lost 6.8 percent in October 2018 (total return), its worst month in more than seven years (since a September 2011 loss of 7 percent) and its worst October since the index fell 16.8 percent in October 2008 at the beginning of the global real estate crisis (source: BTN Research).

 

WEEKLY FOCUS – Making It Easier for Future Caregivers

A person turning 65 today has a nearly 70 percent chance of needing some type of long term care in their remaining years. Of those who do, 20 percent will need it for more than five years. Given those odds, chances are pretty good you’re going to need a caregiver (or become one) at some point.

Health care often becomes one of the most expensive aspects of retirement years, and long term care can become the costliest element within health care. In 2016, the average cost of a private room in a nursing home was $92,000; a shared room was $82,000. The average cost for a home health aide at $20 per hour working approximately 30 hours per week was $31,000 annually. For assisted living, the 2016 average base rate was almost $46,000 per year. Yet, despite the statistics and long term care costs, few Americans are taking steps with their personal finances to provide for such an event.

While many people turn to family and friends for unpaid care, that doesn’t mean there won’t be costs involved. There will be. Caregiving can turn a family member’s life – and finances – upside down. Many caregivers reduce their work hours, take a less demanding job (with less pay) or give up their jobs entirely. They are also often hit with direct costs in addition to the loss of wages and benefits.

Here are some startling facts on the financial toll caregivers experience:

A Northwestern Mutual survey revealed 68 percent of family caregivers provided financial support. Of those who incurred expenses for caregiving, 67 percent had to reduce their own living expenses; 63 percent withdrew money from savings or cashed or sold assets; 32 percent stopped or reduced their contributions to savings; and 21 percent borrowed money to provide care.

Lack of planning can result in financial tolls on both you and your caregiver.

Preplanning today for long term care tomorrow can reduce the chances you or your caregiver will have to resort to such drastic measures. Call our office today. We can help you develop a financial plan that includes a caregiving situation, removing or reducing financial stress on both you and your potential caregiver.

 

The Dorion-Gray Team

Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. a Registered Investment Advisory Firm. Dorion-Gray Retirement Planning is a trade name of Dorion-Gray Financial Services, Inc. located at 2602 IL Route 176, Crystal Lake, IL  60014.  Dorion-Gray and the Securities America companies are separate, unaffiliated entities. 

Diversification seeks to reduce the volatility of a portfolio by investing in a variety of asset classes.  Neither asset allocation nor diversification guarantee against market loss or greater or more consistent returns.

© 2018. Dorion-Gray Financial Services, Inc.

* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Morgan Stanley Capital International Europe, Australia and Far East Index (MSCI EAFE Index) is a widely recognized benchmark of non-U.S. stock markets. It is an unmanaged index composed of a sample of companies representative of the market structure of 20 European and Pacific Basin countries and includes reinvestment of all dividends. Barclays Capital Aggregate Bond Index is an unmanaged index comprised of U.S. investment-grade, fixed-rate bond market securities, including government, government agency, corporate and mortgage-backed securities between one and 10 years. Written by Securities America, Copyright November 2018. All rights reserved. Securities offered through Securities America, Inc., Member FINRA/SIPC. SAI# 2314201.1

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