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Dorion-Gray Capital Management® Weekly Commentary August 29, 2016

| August 30, 2016
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Following comments from top Federal Reserve officials, investors grappled with the probable timing of a U.S. interest rate hike. The session was volatile as stocks bounced up and down but slipped by closing. For the week, the Dow fell 0.85 percent to close at 18,395.40. The S&P lost 0.67 percent to finish at 2,169.04, and the NASDAQ dropped 0.37 percent to end the week at 5,218.92.

Short Term –

As of Sept. 30 (i.e., the end of fiscal year 2015), 66.5 percent of the outstanding debt of the U.S. government will mature in five years or less (source: Treasury Department, BTN Research).

Bull Stats –

The ongoing bull market for the S&P 500 (now in its 90th month) has achieved 118 all-time closing highs, the most recent occurring Monday, Aug. 15 (source: BTN Research).

Selling Goods Around the World -

Of revenues from the average technology company within the S&P 500, 59 percent are from foreign sales (source: S&P Dow Jones Indices, BTN Research).

WEEKLY FOCUS – Are You Underestimating These Expenses?

While it’s true most retirees spend less than they did while working, there are some expenses people often underestimate when planning for their golden years. Here are just a few:

Transportation. According to Bureau of Labor Statistics, the average household among those age 65 and older spends $579 per month on transportation. This includes car payments, insurance, maintenance, gas and even an occasional airfare.

Medicare Misses. Medicare doesn’t cover dental work, even though the likelihood of needing expensive treatments increases with age. The average cost of a porcelain crown is around $1,400; the cost of implants or dentures can add up to five figures. Yet private dental policies marketed to seniors often limit coverage to $1,500 a year. Hearing aids and eyeglasses are also exempt. And then there are deductibles and co-pays. For 2016, there’s a $1,288 deductible for hospital costs under Medicare Part A and a $166 deductible for doctor expenses under Part B. After 60 days in the hospital, a patient will pay a daily co-insurance of $322.

Taxes. The IRS taxes funds withdrawn from tax advantaged savings plans and taxes Social Security benefits if total income exceeds a specified base amount. Thirteen states tax Social Security benefits: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont and West Virginia. Forty-three states tax pensions. Unless a homeowner gets a senior exemption or hike freeze, their home’s property tax will likely increase over time. While some municipalities make tax breaks available to everyone after a certain age, many base them on income limits.

Housing. Even if seniors have paid off their mortgage and get a break on their property tax, repairs and maintenance costs can be higher in retirement. As they age, they may need to hire tasks they previously performed themselves, such as mowing, snow removal, minor repairs and even cleaning. And if they’ve owned their home a long time, it may require big ticket repairs like a new roof, furnace or windows.

A well-rounded retirement plan explores your desired lifestyle, creates a strategy to achieve it and allows for contingencies. We can help you evaluate all the aspects related to your retirement years and create a comprehensive, personalized plan. Contact our office to schedule an appointment.

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.

© 2013. Dorion-Gray Financial Services, Inc.

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