Second-quarter GDP came in at 1.5%, below the 2% forecast. That sounds like a disappointment, but there was better news underneath. Core GDP
— which strips out some of the more volatile pieces like government spending and trade — grew at its fastest pace in more than three years.

Then there was the Fed. Rates were left unchanged, but the tone shifted. Three of the 12 committee members voted to raise rates. We’re now looking at the real possibility of a quarter-point increase by December. That’s a change from what markets have been anticipating, and it may mean more volatility through the end of the year.

If you would like a more in-depth market review, click here for a video from our portfolio team or reply to this email if you would like a copy of the quarterly letter.

Time for a Midyear Checkup: Is Your Portfolio on Track?

The Money article highlights:

• The S&P 500 returned about 22% over the past year, which is roughly double its historical average.
• The article says strong market gains can make investors feel overly confident.
• The article says a good market is still a smart time to review your retirement plan.
• 58% of non-retirees say they are confident they will retire on time.
• About 47% say they are skeptical they will ever be able to fully retire.
• The article says retirement planning should be flexible enough to adapt as circumstances change. (So should your portfolio!)
• Much of the market’s recent growth has been driven by spending and excitement around AI.
• The article says investors should be prepared for more market volatility even if the economy stays strong.
• A strong run in AI-related stocks may have left some portfolios less diversified than investors realize.
• The article recommends a midyear portfolio checkup.
• Retirees should keep enough liquid assets available for expenses and required withdrawals so they do not have to sell investments at the wrong time.**
• It is okay to underperform the market if your retirement plan still provides the income you need.

** We do this for our clients. In the Retirement Shift video, Guy talks about how we plan and protect our clients’ income.

For accounts not with us, we recommend a portfolio stress-test, which we do at no cost. This gives you clarity in your plan and what you have. We believe clarity is important, and we will run these for anyone, so please share! With the change in plans for interest rates and AI’s role in the market, the time is now to get this done!

Rethinking Dividend Income

Isn’t the beauty of dividends that no matter what is happening with the volatility of the stock – the dividend pays. Except of course when they get cut. Let’s imagine someone invests 100k- is getting a 5k dividend. Value drops to 20k and dividend reduces to 2k… Yikes

What if you could have:

• 4.5-6 % dividend (that can’t go down only up)

• With performance of the investment the dividend will increase

• The Dividend can never go down or go backwards

• No fees

• Value of investment can’t go down, other than by the dividend that is paid.

• Earns up to 9.5% per year

Reply to this email or call for more details and to see if this would work level.

Just for Fun

Dad Joke of the Week:

What do you call a sad strawberry? A blueberry!

This Week in History

• 1793- Louvre Museum opens
• 1846- Smithsonian Institution created
• 1935- FDR signs Social Security Act
• 2009- Usain Bolt sets 100-meter dash world record

What Did it Cost? (a share of GE)

• 2000- $299.032015- $119.882026- $359.27