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Dorion-Gray Capital Management® Weekly Commentary August 8, 2016

| August 13, 2016
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THE MARKETS...

U.S. stocks rose following the second positive jobs report in a row; the S&P 500 and NASDAQ closed at record highs. For the week, the Dow rose 0.65 percent to close at 18,543.53. The S&P gained 0.49 percent to finish at 2,182.87, and the NASDAQ climbed 1.14 percent to end the week at 5,221.12.

Less Than Last Year –

Lenders foreclosed on 197,425 homes in the first half of 2016, a decline of 5.7 percent from the 209,281 foreclosures during the first half of 2015 (source: RealtyTrac, BTN Research).

Record-low Yields –

The month of July had the lowest closing yields on the 10-year Treasury note (1.36 percent) and the 30-year Treasury bond (2.10 percent) in history, both occurring on Friday, July 8. (source: Treasury Department, BTN Research).

Impact of Boomers -

There are 2.8 workers (paying payroll taxes) for every one Social Security beneficiary in 2016, i.e., there are 36 Social Security beneficiaries for every 100 covered workers today. There will be an estimated 2.3 workers (paying payroll taxes) for every one Social Security beneficiary in 2030, i.e., there will be 44 Social Security beneficiaries for every 100 covered workers in 2030 (source: SS Trustees 2016 Report, BTN Research).

WEEKLY FOCUS – Going Back to School in Retirement

As classes resume this fall, young people aren’t the only demographic heading into the classroom. Increasingly, the new student body includes retirees. The motivation behind seniors’ return to school varies from one seasoned student to another. Some view retirement as a chance to pursue an interest put on hold while they were working or to start a second career in a whole new area. Others plan to continue working in their current field but may need to increase their skills or brush up on technology updates to remain competitive.

Many public colleges and universities offer tuition waivers or discounts to older students taking courses for credit. Individuals who are still working may receive tuition assistance from their employer. Retirees can also use any money remaining in a 529 plan they funded for children for their own educational pursuits.

For those not concerned about earning credits, the Osher Lifelong Learning Institute supports 119 programs on university and college campuses across the country that offer non-credit courses for adults 50 years or older. Membership, which starts at $210 a year, provides considerable discounts for a certain number of courses per term. Other institutions often allow mature students to audit classes at no charge or a greatly reduced cost.

Professors are often welcoming, appreciating older students’ motivation, varied interests and rich life experiences. But for those who are uncomfortable in a largely younger crowd or who can’t find desired courses nearby, Massive Open Online Courses, or MOOCs, can be a viable option. EdX offers over 500 online courses from leading institutions in a wide range of subject matter.

Many seniors do enjoy interacting with young people and relish the intellectual stimulation and cultural activities connected to the academic community. So much so, that some of them move to university towns or to retirement communities on or near university campuses. In addition to course offerings, residents of university-based retirement communities often have access to the university library, fitness center, concerts, guest speakers and athletic events.

A well-rounded retirement plan explores your desired lifestyle and how best to achieve it while planning for contingencies. Starting early gives you the best opportunity for success. Call our office to begin or update your retirement plan for a more complete picture.

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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