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Dorion-Gray Capital Management® Weekly Commentary June 20, 2016

| June 22, 2016
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U.S. stocks dropped Friday. Britain’s upcoming vote on whether to leave the European Union weighed on investors, while Apple’s falling shares dragged the major indexes down. For the week, the Dow fell 1.00 percent to close at 17,675.16. The S&P lost 1.12 percent to finish at 2,071.22, and the NASDAQ dropped 1.92 percent, to end the week at 4,800.34.

Double Plus –

Government outlays for Medicare have increased 9.8 percent annually over the past 40 fiscal years, rising from $13 billion (1975) to $546 billion (2015). Inflation, as measured by the Consumer Price Index, has increased 3.7 percent annually over the same 40-year period (source: OMB, Department of Labor, BTN Research).

A Decade Away –

America’s total public debt is projected to be 85.6 percent of GDP in 2026 or 10 years from now (source: Congressional Budget Office, BTN Research).

Sounds More Like Deflation -

The annual inflation target for the 19-nation Eurozone is 2 percent. Actual year-over-year inflation, however, was negative 0.2 percent (i.e., deflation) as of April 30, 2016, and negative 0.1 percent as of May 31, 2016 (source: Eurostat, BTN Research).

WEEKLY FOCUS – June Is Alzheimer's & Brain Awareness Month

Alzheimer’s is one of our nation’s costliest diseases. According to the Alzheimer’s Association, total health care, long-term care and hospice payments related to Alzheimer’s disease and other dementias will total $236 billion in 2016. Sadly, afflicted individuals without adequate long-term care insurance frequently lose most, if not all, of their financial assets.

But even dementias’ beginning stages and mild cognitive impairment experienced by healthy seniors can put personal wealth at risk. That’s why it’s important to begin having conversations about your aging family member’s finances well before you see signs of mental decline. Obviously, this has to be done with great sensitivity and respect. Make sure they know you don’t want to take control, but you would like to ensure they are protected and their wishes honored in the years to come.

During ongoing dialogs, try to learn what you’ll need to know if it becomes necessary to manage their finances: the names and contact information of their financial planner, accountant and attorney; financial records and where they are kept; their monthly income and the sources; insurance policies; the location of financial accounts; regular bills and how they are paid; and log-in information for online accounts.

Suggest meeting jointly with their financial advisor and/or other family members. Gain an understanding of their priorities. Ask which assets are most important to them, which causes they want to support and whether their will is up-to-date.

Propose having legal documents created that will allow you or another family member to make decisions if your loved one becomes unable to. This can include: a health care power of attorney (POA) or a more limited living will, either a limited or durable power of attorney for finances, an authorization to disclose account information and a form authorizing a financial institution to contact you if concerns arise about their ability to manage finances. Not having these documents when they’re needed can make helping your elderly relative considerably more difficult. For example, without a POA, you may need to go to court to attain guardianship of your family member to access accounts on their behalf.

Contact our office if you would like more information about protecting your loved one or help creating a plan to care for them. Next week’s newsletter will discuss ways to protect a vulnerable parent from fraud.

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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