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Dorion-Gray Capital Management® Weekly Commentary October 10, 2016

| October 11, 2016
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U.S. stocks fell Friday, and the three major indexes ended the week lower after three weeks of gains. The British pound hit its lowest level in 30 years. September jobs data showed a lower increase than expected, but the report wasn’t weak enough to convince investors the Fed wouldn’t raise rates later this year. For the week, the Dow fell 0.31 percent to close at 18,240.49. The S&P lost 0.60 percent to finish at 2,153.74, and the NASDAQ dropped 0.37 percent to end the week at 5,292.40.

Adjusted Gross Income –

The 410,298 tax returns from tax year 2014 that reported at least $1 million of adjusted gross income (AGI) represent 0.28 percent of all returns filed (i.e., slightly more than one-quarter of 1 percent of returns filed), received 14 percent of all AGI nationwide and paid 27.6 percent of all the federal income tax (source: IRS, BTN Research).

No Pension –

A substantial 56 million or 72 percent of baby boomers do not have a corporate pension plan. Baby boomers are traditionally defined as the 78 million Americans ages 52-70 in 2016, i.e., individuals born from 1946 to 1964 (source: Insured Retirement Institute, BTN Research).

More Than One Trillion Per Year -

The national debt as of Sept. 30, 2006, was $8.507 trillion. The national debt as of Thursday, Sept. 29, 2016, was $19.533 trillion. Thus, the national debt has increased just over $11 trillion over the last 10 fiscal years, i.e., fiscal years 2007-2016 (source: Treasury Department, BTN Research).

WEEKLY FOCUS - Do You Have a Business-Worthy Hobby?

According to the Bureau of Labor Statistics, 15.5 million people in the U.S. were self-employed as of May 15, 2015. Some of those individuals have been remarkably successful. Consider Lara Merriken who created her first LÄRABAR® in May 2000 with a Cuisinart™ and a rolling pin. The company she started now sells millions of the healthy snack bars every year. Or soccer mom Alicia Shaffer who began selling handcrafted headbands on Etsy and grew a business with a million dollar annual revenue. Or Linda Lightman who launched a $25 million business on eBay.

Today’s self-employed include a growing number of retirees who have turned hobbies into businesses. While most don’t expect to hit the big time, they enjoy a modest to good income pursuing diverse interests. Talented photographers sell artistic photos; take family, corporate or graduation portraits; do wedding photography; or create marketing or instructional videos. Skilled communicators freelance as writers or editors, self-publish books or eBooks, give speeches or create blogs. As bloggers, they earn income through ads, affiliate marketing, selling products or services, or promoting their own books. Some bloggers who have built strong platforms eventually sell their blogs for attractive sums.

Other popular options include pet sitting, social media management, Web design, budgeting services, buying and selling collectibles, party or wedding planning, health coaching or personal training, teaching yoga, music lessons, educational tutoring, sports refereeing, landscaping, carpentry, organizing, baking or cake decorating, catering, home staging and move managing for downsizing seniors.

If you’re considering monetizing a hobby, start with research and contemplation. Will you still enjoy your hobby when it becomes a business? What is the demand for the product or service you want to provide? How much competition will you have? Who is your target audience? How will you market to them? What will you charge and how much will you profit? Are you able to do everything – including bookkeeping – to run the business yourself? It’s also important to know zoning laws, see if you need additional insurance and check for local requirements and necessary licenses, particularly with a food-based business.

We’re here to help you achieve your goals, whether you’re looking forward to traditional retirement or launching a new enterprise. Contact our office so we can help you create a plan to support your vision for the future.

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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