The post-election rally continued as Wall Street saw another day of record highs. The S&P 500 recorded its sixth straight day of gains, and the Dow logged a fifth week of gains. For the week, the Dow rose 3.13 percent to close at 19,756.85. The S&P gained 3.13 percent to finish at 2,259.53, and the NASDAQ climbed 3.59 percent to end the week at 5,444.50.
Another Year, Another Trillion –
Our nation’s national debt was $18.922 trillion as of Dec. 31, 2015. It reached $19.898 trillion as of Wednesday, Nov. 23, 2016. (source: Treasury Department, BTN Research).
Losers Last Year –
An equal investment at the end of 2015 into the 13 stocks in the S&P 500 that lost at least 50 percent last year was up a collective 60.4 percent YTD as of Nov. 30 (source: BTN Research).
Winners Last Year -
An equal investment at the end of 2015 into the seven stocks in the S&P 500 that gained at least 50 percent last year was up a collective 25.0 percent YTD as of Wednesday, Nov. 30 (source: BTN Research).
WEEKLY FOCUS - Want to Skip the Video Games?
Your kids or grandkids might be hoping for the newest iPhone or video game for Christmas. But what if you gave them a financial or educational gift with future benefits?
Perhaps you have some appreciated stock you could retitle in their name. Since they’re likely in a lower tax bracket, you could probably pass more on to them on an after-tax basis than you would realize if you cashed it in yourself.
Setting up a 529 plan will allow other family and friends to give gifts toward a young person’s education. Once the plan is set up, sites such as GiftofCollege.com and LeafSavings.com offer gift cards that make it easy to contribute directly to a 529 account.
Have a millennial who doesn’t have access to a 401(k) through an employer? Your advisor can help you create an IRA or a new myRA® starter account in their name. Both allow account holders to set up automatic contributions, but the myRA has a few unique features. Because it is invested in a United States Treasury retirement savings bond, it won’t lose money and automatically earns interest at the same rate as investments in the Government Securities Fund (2.375 percent APR for the month of December 2016). Once the balance reaches $15,000, it is transferred to a private-sector Roth IRA, but it can be moved at any time before that point. Like an IRA, a myRA stays with the account holder during job changes.
If a family member dreams of starting their own business, a subscription to Entrepreneur or Inc. could provide great insights on running a business, franchising and meeting startup challenges. Forbes, Bloomberg Businessweek or Money might fuel an interest in investing.
At Stockpile.com, you can purchase $25, $50 or $100 gift cards for fractions of shares from popular companies like Coca-Cola, Facebook, Apple and Toys “R” Us. The site offers physical gift cards you can put in Christmas stockings and e-gifts you can send instantly. Recipients redeem the cards on the site, which is an online brokerage. Twenty-five percent of Stockpile’s customers are kids and teens.
While you may be doing your best to teach your children and grandchildren about personal finances, confirmation from an outside source may help reinforce your message. We’d be happy to help educate them on the importance of setting long-term goals, creating a budget and setting up a financial plan. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation.
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.
© 2016. Dorion-Gray Financial Services, Inc.