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Dorion-Gray Capital Management® Weekly Commentary September 6, 2016

| September 06, 2016
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U.S. stocks rose Friday. The advances followed a payrolls report that was lower than predicted, lowering expectations of a September rate hike. For the week, the Dow rose 0.61 percent to close at 18,491.96. The S&P gained 0.56 percent to finish at 2,179.98, and the NASDAQ climbed 0.59 percent to end the week at 5,249.90.

Lower Oil Prices –

Of the 79 American companies that have defaulted on corporate debt in the 12 months ending June 30, 45 (i.e. 57 percent) represent companies in the energy and natural resources industries (source: S&P Global Fixed Income Research, BTN Research).

Up Big –

Interest payments on our national debt are projected to nearly triple over the next 10 years, rising from $248 billion in fiscal year 2016 to $712 billion in fiscal year 2026 (source: Congressional Budget Office, BTN Research).

Sensitive -

The duration of the 30-year T-bond as of Aug. 26 was 21.687 years, i.e., a one percent increase in the current yield of the long bond will reduce the value of the bond by 21.687 percent (source: Ryan ALM, BTN Research).

WEEKLY FOCUS – Who Needs Life Insurance?

According to industry groups Life Happens and LIMRA, 63 percent of Americans consider life insurance a necessity, but 43 percent don’t have any; 30 percent don’t think they have enough; and 19 percent only have group life insurance through their employer, which is often inadequate. In recognition of Life Insurance Awareness Month, let’s review who should consider acquiring life insurance if they haven’t done so.

Obviously, family breadwinners should have adequate life insurance, whether they are male or female. But according to a LIMRA survey, women 55 and older are less likely than men to have any life insurance, and women of all ages have less coverage than men in similar age groups. A stay-at-home parent should also have insurance to help their remaining spouse pay others to provide services they now perform. And even an individual who doesn’t have dependent children may have others depending on their support – such as aging parents or a disabled sibling.

Unless a single individual has adequate savings to cover funeral expenses, they should at least have a small policy. If parents or grandparents co-signed for their school loans or other debt, they should have a larger policy to protect their co-signers. Business owners often need policies to pay off business debts or enable their heirs to pay estate taxes.

Investors who have maxed out other retirement plans may benefit from the tax-advantaged growth potential of life insurance, while individuals who don’t have a lot of wealth may use life insurance to provide an inheritance for loved ones.

Buying a policy for children can give them a head start on savings and provide something they can borrow against in the future. If there are hereditary health risks, it may be wise to secure life insurance for a child so they don’t run the risk of failing a medical exam and being disqualified later in life.

Please contact our office if you need help evaluating how much life insurance you need or determining whether your current coverage is adequate. We can handle your insurance needs at our office, work with your existing insurance agent or recommend an agent to work with you.

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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