The new AI news from China forced the markets to question big tech valuations and current spending. After all, if the Chinese can deliver the same or better results cheaper, then markets are asking why we’re valuing our companies at their current levels. This is something we will continue watching and making adjustments as needed!
Second-quarter earnings reports are in full swing, with 27% of S&P 500 companies reporting results.8 So far, 86% of companies have stated positive earnings per share (EPS), and 80% have reported positive revenue. Earnings growth for Q2 for the S&P 500 is 37.9%, up from 27.7% last quarter. If 37.9% is the actual growth rate for the quarter, it will mark the highest earnings growth for the index since the third quarter of 2021.
In The News
Retirees have questions for financial advisors. Here’s what they want to know.
The yahoo article highlights top retirement questions:
- More retirees are turning to financial advisors for help as they leave the workforce and rethink their financial plans.
- Nearly half want guidance on saving and investing after leaving their workplace retirement plan.
- About one-third want advice on what to do with the money in their former employer plan.
- Nearly 3 in 10 want a withdrawal strategy that turns their savings into retirement income.
- Retirees are also seeking help with taxes, long-term care planning, debt reduction, and estate planning.
- One common question is whether they should move their old 401(k) into an IRA.
- Another major question is whether their savings will actually last throughout retirement.
- Advisors say retirees want clarity on what they can safely spend and what risks they need to plan for.
- Many retirees ask how much money they can withdraw each year without running out.
- Advisors often use the 4% rule as a starting point for retirement withdrawals.
- Retirees are usually encouraged to keep at least one year of living expenses in cash accounts.
- Many people also ask when they should start taking Social Security benefits.
- Delaying Social Security can increase benefits by about 8% per year until age 70.
- Another common question is whether a Roth conversion makes sense for their situation.
- Advisors warn that Roth conversions can affect taxes, Medicare premiums, and Social Security taxation.
You have questions – we have answers! Don’t ever hesitate to call, text, or email any questions you have on any area in your financial life or regarding your retirement, estate, or tax plan. While we do not know everything (sorry to disappoint!), we have a whole team of experts we can turn to so we always have answers for you!
Often there is not one right answer. Take ROTH conversions for example. You can win, lose, or draw with a ROTH conversion; it depends on your personal situation and circumstances. This is where conversations are important, and Google or AI can’t take the place of a real conversation.
Reply to this email and let us kow if you have any of the questions listed above or any other questions on your mind. Or, just schedule a coffee chat on our calendar below.
Just for Fun
Dad Joke of the Week: (I think this is a mom joke as I use it often!)
Hi dad, I am hungry. Hi hungry, I am dad.
This Week in History
- 1492- Columbus sets sail from Spain1858- First transatlantic telegraph cable completed1909- Durst electric traffic signal installed1949- NBA is born2012- Oscar Pistorius becomes the first amputee runner to compete at the Olympics
What Did it Cost? (gallon gas)
- 1950- $0.272000- $1.502022- $4.09