I hope you have had a wonderful Easter. At the end is some information that I found on Easter celebrations around the world. This week the topic is the performance of different types of bonds during the first quarter 2012. First is the weekly recap from Vanguard which was published before the disappointing jobs report last Friday.
Vanguard
Ahead of the long holiday weekend (for many), most signs suggest that tomorrow's employment report will show the U.S. economy added about 200,000 jobs in March—continuing a string of improvement. Amid the progress, the Federal Reserve signaled that no new monetary stimulus is likely anytime soon. The stock market will be closed on Good Friday; the bond market is expected to close at noon. For the week, through April 5, the S&P 500 Index fell 0.7% to 1,398 (for a year-to-date total return—including price change plus dividends—of about 12%). The yield on the 10-year U.S. Treasury note fell 4 basis points to 2.19% (for a year-to-date increase of 30 basis points).
Performance of Bond Mutual Funds
Bonds come in many different categories. My preference to purchasing bonds is to purchase a mutual fund of bonds rather than individiudal bonds. The April 9, 2012 Barron's publication had a section devoted to the performance of mutual funds including bond mutual funds. As you will see not all bonds and bond funds are created equally and you can lose money on bonds and bond funds.
Barron's shows 17 different categories of taxable bond funds and gave performance during the past quarter,1 year, 5 years, and 10 years. My personal view is that the future for bonds is best represented by the past quarter rather than the other categories. My reason is that bonds have had an unprecedented bull market where interest rates have been declining for about 30 years and that it has come to an end.
Below is the quarterly performance of some of the different types of bond mutual fund categories compared to a money market fund and my favorite bond fund:
Money Market Funds = 0.00%
Short US Government = 0.43%
Short Investment Grade = 1.33%
Intermediate US Government = -0.28%
Intermediate Investment Grade = 1.50%
General US Government = -0.61%
General Bond = 1.78%
GNMA = 0.36%
High Yield - Non Investment Grade = 5.42%
Emerging Market Debt - Non Investment Grade = 6.92%
My Favorite Bond Fund = 3.47%
You will note that investing in bonds issued by the US Government gave the worst return due to rising interest rates. This trend will continue which is why I am avoiding them.
My favorite bond fund did very well compared to the other categories of investment grade bonds. The bond funds that did not have investment grade bonds did better but also have a risk level higher than I do not want to accept. I will continue to hold my favorite bond fund.
Easter Celebrations Around the World from Crown Relocations
In New Zealand, people attend Church Services over the weekend to celebrate both the death and resurrection of Christ and to mark the end of the season of Lent. The stores all carry Hot Cross Buns and stock chocolate Easter eggs for the Easter Bunny to fill his basket in anticipation of his delivery rounds on Easter Sunday morning. This usually results in Easter egg hunts for the children.
France has held on to its traditions by giving eggs (chocolate nowadays) on Easter day, which is related to the renewal of nature in spring time. It has also been related to the end of fast period, a period during which no eggs could be eaten, creating abundance thereafter. Louis XIV gave eggs gilded with gold to his sycophants. They were filled with "surprises" and the tradition remains until today. It is also the symbol of resurrection in Christian religions.
On Easter Sunday in Italy, all members of the family exchange Easter eggs, which can also be made especially for the occasion containing special gifts that are placed inside the egg. On Easter Sunday morning, each family usually eats a breakfast of salami, eggs, a special cheese cake and the traditional ''colomba'' – a sweet cake which contains almonds and candied fruits. On Easter Monday, everybody goes out for a picnic or by the sea and many families eat lamb, broad beans and a strong sheep’s milk cheese.
For the Czech Republic, in general, Easter is no longer considered a great Catholic feast. It is more of a welcome to spring, an opportunity for a family to meet at dinner or to visit one of the cultural events held during Easter. Fairs are held in many places, there is usually a wide offer of beautiful hand-painted Easter eggs, and eggs decorated by different techniques – the so called "kraslice" (yolk and white are removed and egg-shell is decorated), which decorate shops as well as households.
There are a variety of Easter traditions in Australia. Pancake Day is associated with Shrove Tuesday, because pancakes were a dish that could use up perishable foodstuffs prior to the beginning of the 40 days of fasting during Lent. Hot Cross Buns have a cross, the symbol of Christ, placed on top of the buns, either with pastry or a simple mixture of flour and water. The buns are traditionally eaten on Good Friday; however, in Australia they are available in bakeries and stores many weeks before Easter. Easter eggs, symbolizing new life, have long been associated with the Easter festival.
The United States shares many of the traditions with other countries. On Easter Sunday children wake up to find that the Easter Bunny has left them baskets of candy. He has also hidden the eggs that they decorated earlier that week. Children hunt for the eggs all around the house and outside. Neighborhoods and organizations hold Easter egg hunts, and the child who finds the most eggs wins a prize. Families also get together for an Easter meal.
For Ireland, Easter-time is rich with traditions, the overlapping and commingling of centuries of ritual celebrating rebirth, resurrection, salvation and everlasting life. Many of the traditions surrounding Easter in Ireland are universal to the Christian world. Others – such as the dawn dance, the herring funeral, and the cake dance – are distinctly Celtic, and many hark back to the traditions of pre-Christian times.
On Sunday morning in Poland, beautifully laid tables are covered with colored eggs, cold meats, coils of sausages, ham, yeast cakes, pound cakes, poppy-seed cakes, and in the middle of it all, a lamb made of sugar, commemorating the resurrected Christ. No smoke is permitted; therefore no warm meals are served. Sharing a boiled egg with one’s relatives is a national tradition. A piece of egg with salt and pepper, consecrated by priest, is an inseparable accessory in the good wishes we extend to each other at Easter.
In Brazil, parents hide chocolate eggs the Saturday before Easter around the house, so the kids can find them on Sunday morning. There are different sizes but all made out of chocolate. Sometimes close friends and relatives also exchange eggs.
Traditions for the people of the U.K. include eating hot cross buns – meant to symbolize the Cross, exchange chocolate eggs or bunnies (symbols of new life) on Easter Sunday and often small eggs are hidden around house and garden for children to find. Children paint decorations on egg shells and simnel cakes are baked – a rich fruit cake with a layer of marzipan in the middle and 11 balls of marzipan on top symbolizing 11 true apostles (excluding Judas). This is less common now except in a very traditional Easter.
Sunday, April 8, 2012
Friday, March 30, 2012
Quarter 1 2012 & Palm Sunday
The first quarter of 2012 is upon us and it has been rather unusual on a couple of fronts. First the weather has been warmer than normal. Secondly, the Dow Jones Industrial Average had the best Quarter 1 return since 1998. At the end is some information from Wikipedia about how Palm Sunday is celebrated around the world, I found it interesting.
Vanguard
In a television interview earlier this week, Federal Reserve Chairman Ben Bernanke said that the economy has made strides over the past few months, but that housing and unemployment remain a threat to a full recovery. Economic indicators this week were a mixed bag. The U.S. economy expanded in the fourth quarter. Consumer confidence fell slightly. Consumers are spending more, and businesses are investing—but at a slower pace. For the week ended March 30, the S&P 500 Index rose 0.8% to 1,408 (for a year-to-date total return—including price change plus dividends—of about 12.6%). The yield on the 10-year U.S. Treasury note fell 2 basis points to 2.23% (for a year-to-date increase of 34 basis points).
Quarter 1 Review
The biggest concern during the quarter was the price of oil and the Iranian oil issue. So far this has not had a significant impact on our economy and it appears that many world leaders are trying to keep it that way. It is important to listen for the clues from leaders around the world on this issue.
Two concerns existed when the quarter began which seem to have faded. These were the economic recovery and Europe. Our economy remains on a slow recovery and it will for quite awhile. The European crisis seems to have blown over once people realized that it was time to bring it to closure.
So what happens in quarter 2? I sure wish I knew the answer. My plan is to take some profits and get more conservative in some accounts during April since we have gotten a gain during the quarter which normally would occur during the entire year. I like the saying of a bird in the hand is worth 2 in the bush.
Palm Sunday Celebrations Around the World - Wikipedia
It is customary in many churches for the worshippers to receive fresh palm leaves on Palm Sunday. In parts of the world where this has historically been impractical, substitute traditions have arisen.
In Lebanon, Syria, Jordan and Israel, Palm Sunday – known as Shaa’nini in Arabic- is perhaps the best-attended service in the Christian Calendar, among the Orthodox, Catholic (Latin rite and Eastern rite), Maronite and Anglican Churches, perhaps because it is notably a family occasion. On this day, children attend church with branches from olive and palm trees. Also, there will be carefully woven crosses and other symbols made from palm fronds and roses. There will normally be a procession at the beginning of the service and at some point, the priest will take an olive branch and splash holy water on the faithful.
In Latvia, Palm Sunday is called "Pussy Willow Sunday", and pussy willows – symbolizing new life – are blessed and distributed to the faithful.[9] Children are often woken that morning with ritualistic swats of a willow branch. People also catch and spank each other with the branches, a ritual often consummating in sexual intercourse.
India
Flowers (in this instance marigolds) strewn about the sanctuary in an Oriental Orthodox church in Mumbai, India on Palm SundayIn the South Indian state of Kerala, (and in Indian Orthodox,Church of South India(CSI), Syro-Malankara Catholic Church, and Syrian Orthodox Church (Jacobite) congregations elsewhere in India and throughout the West), flowers are strewn about into the sanctuary on Palm Sunday during the reading of the Gospel at the words uttered by the crowd welcoming Jesus, "Hosanna! Blessed is he who is come and is to come in the name of the Lord God." These words are read to the congregation thrice. The congregation then repeats, "Hosanna!" and the flowers are scattered. This echoes pre-Christian Hindu celebrations in which flowers are strewn on festive occasions; however, this also echoes the honour shown to Jesus upon his entry into Jerusalem. Indian Orthodoxy traces its roots to the arrival in India of St. Thomas the Apostle in AD 52 (according to tradition) and his evangelism among both the Brahmans of the Malabar Coast and the ancient Jewish community there. Its rites and ceremonies are both Hindu and Jewish, as well as Levantine Christian, in origin.
In Elche, Spain, the location of the biggest palm grove in Europe, there is a tradition of tying and covering palm leaves to whiten them away from sunlight and then drying and braiding them in elaborate shapes.
A Spanish rhyming proverb states: Domingo de Ramos, quien no estrena algo, se le caen las manos ("On Palm Sunday, the hands drop off of those who fail to wear something new").
All the parishes of Malta and Gozo on Palm Sunday (in Maltese Ħadd il-Palm) bless the palm leaves and the olive leaves. Those parishes that have the statues of Good Friday bless the olive tree they put on the statues of "Jesus prays in the Olive Garden" (Ġesù fl-Ort) and the "Betrayal of Judas" (il-Bewsa ta' Ġuda). Also, many people take a small branch of olive to their homes because they say the blessed olive branch keeps away disease and the evil eye (l-għajn ħażina or is-seħta).
In the Saxon regions of the Netherlands, crosses are decorated with candy and bread, made in the form of a rooster. In the diocese of Groningen-Leeuwarden, a great procession with oil lamps is held the night before Palm Sunday in honour of the Sorrowful Mother of Warfhuizen.
Many Polish towns and villages (the best known are Lipnica Murowana in Małopolska and Łyse in Podlasie) organize artificial palm competitions. The biggest of those reach above 30 meters in length; for example, the highest palm in 2008 was 33.39 meters high.
In Romania, Palm Sunday is known as Duminica Floriilor.
In Bulgaria, Palm Sunday is known as Tsvetnitsa or Vrabnitsa. People with flower-related names, (for example Tzviatko, Margarita,Ralitza, Lilia, Violeta, Yavor, Zdravko, Zjumbjul, Nevena, Temenuzhka,Rosa etc.) celebrate this day as their "name day".
In the Philippines, some places re-enact of Jesus' triumphal entry. The Catholic priest rides a horse and is surrounded by the congregation, bearing palms. Sometimes women spread large cloths or aprons along the procession route.
Palm branches, called palaspas, are taken home after being blessed in the Mass and are hung beside, on or above doorways and windows in front of their houses. Although the real objective of placing the leaves in front of houses is to welcome Jesus Christ, some Filipinos say the palm leaves turn away evil spirits.
In Finland, it is popular for children to dress up as Easter witches and go door to door in neighborhoods for coins and candy. It is an old Karelian custom called Virpominen.
Vanguard
In a television interview earlier this week, Federal Reserve Chairman Ben Bernanke said that the economy has made strides over the past few months, but that housing and unemployment remain a threat to a full recovery. Economic indicators this week were a mixed bag. The U.S. economy expanded in the fourth quarter. Consumer confidence fell slightly. Consumers are spending more, and businesses are investing—but at a slower pace. For the week ended March 30, the S&P 500 Index rose 0.8% to 1,408 (for a year-to-date total return—including price change plus dividends—of about 12.6%). The yield on the 10-year U.S. Treasury note fell 2 basis points to 2.23% (for a year-to-date increase of 34 basis points).
Quarter 1 Review
The biggest concern during the quarter was the price of oil and the Iranian oil issue. So far this has not had a significant impact on our economy and it appears that many world leaders are trying to keep it that way. It is important to listen for the clues from leaders around the world on this issue.
Two concerns existed when the quarter began which seem to have faded. These were the economic recovery and Europe. Our economy remains on a slow recovery and it will for quite awhile. The European crisis seems to have blown over once people realized that it was time to bring it to closure.
So what happens in quarter 2? I sure wish I knew the answer. My plan is to take some profits and get more conservative in some accounts during April since we have gotten a gain during the quarter which normally would occur during the entire year. I like the saying of a bird in the hand is worth 2 in the bush.
Palm Sunday Celebrations Around the World - Wikipedia
It is customary in many churches for the worshippers to receive fresh palm leaves on Palm Sunday. In parts of the world where this has historically been impractical, substitute traditions have arisen.
In Lebanon, Syria, Jordan and Israel, Palm Sunday – known as Shaa’nini in Arabic- is perhaps the best-attended service in the Christian Calendar, among the Orthodox, Catholic (Latin rite and Eastern rite), Maronite and Anglican Churches, perhaps because it is notably a family occasion. On this day, children attend church with branches from olive and palm trees. Also, there will be carefully woven crosses and other symbols made from palm fronds and roses. There will normally be a procession at the beginning of the service and at some point, the priest will take an olive branch and splash holy water on the faithful.
In Latvia, Palm Sunday is called "Pussy Willow Sunday", and pussy willows – symbolizing new life – are blessed and distributed to the faithful.[9] Children are often woken that morning with ritualistic swats of a willow branch. People also catch and spank each other with the branches, a ritual often consummating in sexual intercourse.
India
Flowers (in this instance marigolds) strewn about the sanctuary in an Oriental Orthodox church in Mumbai, India on Palm SundayIn the South Indian state of Kerala, (and in Indian Orthodox,Church of South India(CSI), Syro-Malankara Catholic Church, and Syrian Orthodox Church (Jacobite) congregations elsewhere in India and throughout the West), flowers are strewn about into the sanctuary on Palm Sunday during the reading of the Gospel at the words uttered by the crowd welcoming Jesus, "Hosanna! Blessed is he who is come and is to come in the name of the Lord God." These words are read to the congregation thrice. The congregation then repeats, "Hosanna!" and the flowers are scattered. This echoes pre-Christian Hindu celebrations in which flowers are strewn on festive occasions; however, this also echoes the honour shown to Jesus upon his entry into Jerusalem. Indian Orthodoxy traces its roots to the arrival in India of St. Thomas the Apostle in AD 52 (according to tradition) and his evangelism among both the Brahmans of the Malabar Coast and the ancient Jewish community there. Its rites and ceremonies are both Hindu and Jewish, as well as Levantine Christian, in origin.
In Elche, Spain, the location of the biggest palm grove in Europe, there is a tradition of tying and covering palm leaves to whiten them away from sunlight and then drying and braiding them in elaborate shapes.
A Spanish rhyming proverb states: Domingo de Ramos, quien no estrena algo, se le caen las manos ("On Palm Sunday, the hands drop off of those who fail to wear something new").
All the parishes of Malta and Gozo on Palm Sunday (in Maltese Ħadd il-Palm) bless the palm leaves and the olive leaves. Those parishes that have the statues of Good Friday bless the olive tree they put on the statues of "Jesus prays in the Olive Garden" (Ġesù fl-Ort) and the "Betrayal of Judas" (il-Bewsa ta' Ġuda). Also, many people take a small branch of olive to their homes because they say the blessed olive branch keeps away disease and the evil eye (l-għajn ħażina or is-seħta).
In the Saxon regions of the Netherlands, crosses are decorated with candy and bread, made in the form of a rooster. In the diocese of Groningen-Leeuwarden, a great procession with oil lamps is held the night before Palm Sunday in honour of the Sorrowful Mother of Warfhuizen.
Many Polish towns and villages (the best known are Lipnica Murowana in Małopolska and Łyse in Podlasie) organize artificial palm competitions. The biggest of those reach above 30 meters in length; for example, the highest palm in 2008 was 33.39 meters high.
In Romania, Palm Sunday is known as Duminica Floriilor.
In Bulgaria, Palm Sunday is known as Tsvetnitsa or Vrabnitsa. People with flower-related names, (for example Tzviatko, Margarita,Ralitza, Lilia, Violeta, Yavor, Zdravko, Zjumbjul, Nevena, Temenuzhka,Rosa etc.) celebrate this day as their "name day".
In the Philippines, some places re-enact of Jesus' triumphal entry. The Catholic priest rides a horse and is surrounded by the congregation, bearing palms. Sometimes women spread large cloths or aprons along the procession route.
Palm branches, called palaspas, are taken home after being blessed in the Mass and are hung beside, on or above doorways and windows in front of their houses. Although the real objective of placing the leaves in front of houses is to welcome Jesus Christ, some Filipinos say the palm leaves turn away evil spirits.
In Finland, it is popular for children to dress up as Easter witches and go door to door in neighborhoods for coins and candy. It is an old Karelian custom called Virpominen.
Saturday, March 24, 2012
Steps to Retirement
The topic for this week are some simple steps to take to get ready to retire. At the end are some quotes on retirement for your enjoyment.
Vanguard Info
News on the housing market was a hot property this week, though results were mixed. While home sales and starts declined last month, their improvement over the last few years seems to show that the housing market—the core of the last financial crisis—may be digging itself out of a 7-year hole. Meanwhile, an important gauge of future economic activity rose for the 5th consecutive month. For the week ended March 23, the S&P 500 Index fell 0.5% to 1,397.11 (for a year-to-date total return—including price change plus dividends—of about 11.6%). The yield on the 10-year U.S. Treasury note fell 6 basis points to 2.25% (for a year-to-date increase of 36 basis points).
Steps to Retirement
Some steps to take to get ready for retirement:
1) Save 10% of your income from each paycheck
2) Pay off your home mortgage to reduce expenses when retirement starts
3) Get a new car and have it paid off to have lower repair costs when retirement starts
4) Invest for growth not income
5) Calculate current annual living expenses
6) Guess when you want to retire
7) Calculate retirement annual income from Social Security, Pensions, etc. at this retirement age.
8) Calculate the difference between income and expense
9) Determine the amount of savings needed by multiplying the answer in step 8 by at least 20
10) If you do not have enough retirement savings call me and develop a plan
Retirement Quotes
Preparation for old age should begin not later than one's teens. A life which is empty of purpose until 65 will not suddenly become filled on retirement.
Arthur E. Morgan
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give.
William A. Ward
The best time to start thinking about your retirement is before the boss does.
Source Unknown
Vanguard Info
News on the housing market was a hot property this week, though results were mixed. While home sales and starts declined last month, their improvement over the last few years seems to show that the housing market—the core of the last financial crisis—may be digging itself out of a 7-year hole. Meanwhile, an important gauge of future economic activity rose for the 5th consecutive month. For the week ended March 23, the S&P 500 Index fell 0.5% to 1,397.11 (for a year-to-date total return—including price change plus dividends—of about 11.6%). The yield on the 10-year U.S. Treasury note fell 6 basis points to 2.25% (for a year-to-date increase of 36 basis points).
Steps to Retirement
Some steps to take to get ready for retirement:
1) Save 10% of your income from each paycheck
2) Pay off your home mortgage to reduce expenses when retirement starts
3) Get a new car and have it paid off to have lower repair costs when retirement starts
4) Invest for growth not income
5) Calculate current annual living expenses
6) Guess when you want to retire
7) Calculate retirement annual income from Social Security, Pensions, etc. at this retirement age.
8) Calculate the difference between income and expense
9) Determine the amount of savings needed by multiplying the answer in step 8 by at least 20
10) If you do not have enough retirement savings call me and develop a plan
Retirement Quotes
Preparation for old age should begin not later than one's teens. A life which is empty of purpose until 65 will not suddenly become filled on retirement.
Arthur E. Morgan
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give.
William A. Ward
The best time to start thinking about your retirement is before the boss does.
Source Unknown
Monday, March 19, 2012
Economist Projection
hope you are surviving March Madness and Saint Patrick's Day. We have a Saint Patrick's Day tradition in our house to serve a meal that is entirely green. Perhaps you have a similar tradition. At the end is some information that I found about Saint Patrick's Day and the culture of your friends in Ireland. The beginning paragraph is from Vanguard. The middle section is some economic projections for your consideration that show things are pretty good except for Europe.
Vanguard
Hopes that the recovery is gaining strength were bolstered by encouraging retail sales data. Although warmer-than-usual weather across much of the nation may have triggered some earlier-than-usual spring spending, investors took heart that a stronger recovery may be finally blooming. For the week ended March 16, the S&P 500 Index rose 2.4% to 1,404 (for a year-to-date total return—including price change plus dividends—of about 12.2%). The yield on the 10-year U.S. Treasury note rose 27 basis points to 2.31% (for a year-to-date increase of 42 basis points).
Economist Projections - ECBI
According to the Electroindustry Business Confidence Index (EBCI) developed
by NEMA, Rosslyn, VA, USA,the current North American conditions jumped sharply in February, rising more than 18 points to 72.5, its highest level in more than six years. The survey’s measure of the degree of change in current North American conditions rose to its highest mark in almost two years, rising to +0.7 in February from +0.1 in January 2012.
The ECBI tracks economic conditions in North America, Latin America, Europe, and Asia Pacific regions. An economic reading above 50 indicates expansion. The index is calculated for the current economic condition and the condition in the future 6 months out. Here are the numbers for each region:
North America: Current = 72.5, Future = 75.0
Latin America: Current = 57.7, Future = 67.9
Europe: Current = 37.6, Future = 34.4
Asia Pacific: Current = 50, Future = 71.9
Bottom Line: All regions except for Europe are experiencing good economic conditions with the future projected to be better.
Saint Patrick's Day - Irish Perspective
Many people will be eating Irish food such as Irish Stew and Corned Beef and cabbage on St. Patrick's Day. Corned Beef is not an Irish dish. It is what Americans think the Irish eat. A more traditional meal would be ham and cabbage or bacon and cabbage. Some say that in Ireland on St. Patrick's Day the traditional green beer is prominent. However, in Ireland, many years ago, St. Patrick's Day is considered a holy day and Pubs were not open for business. There were no parades, no drinking or wearing green. Green was considered an unlucky color.
St. Patrick's Day Pinch - School children have started a little tradition of their own. They pinch classmates who don't wear green on this holiday. Wearing green is strictly a U.S. custom, as the color green is not popular in Ireland. Green is connected to the old green flag and a time when Ireland was not free. Green is also a color connected with hope and nature.
Some Irish Superstitions:
Moon, moon tell unto me,
When my true love I shall see?
What fine clothes am I to wear?
How many children will I bear?
For if my love comes not to me,
Dark and dismal my life will be.
This verse, recited by a maiden as she gathered special herbs by the light of the first full moon of the new year, could reveal a future husband and cause the girl to have a true dream about the man--if she first complied with certain requirements. With a black-handled knife she had to cut out three pieces of earth, bring them home, tie them in her left stocking, and secure the bundle with her right garter. The completed package then had to be placed upon her pillow.
When yawning, make the sign of the cross instantly over your mouth, or the evil spirit will make a rush down and take up his abode with you.
It is unlucky to offer your right hand in salutation, for thee is an old say, "A curse with the left hand to those we hate, but the right hand to those we honor."
If the palm of your hand itches you will be getting money; if the elbow, you will be changing beds.
Breaking a mirror brought seven years of bad luck, while two people washing hands in the same basin at the same time courted disaster.
Vanguard
Hopes that the recovery is gaining strength were bolstered by encouraging retail sales data. Although warmer-than-usual weather across much of the nation may have triggered some earlier-than-usual spring spending, investors took heart that a stronger recovery may be finally blooming. For the week ended March 16, the S&P 500 Index rose 2.4% to 1,404 (for a year-to-date total return—including price change plus dividends—of about 12.2%). The yield on the 10-year U.S. Treasury note rose 27 basis points to 2.31% (for a year-to-date increase of 42 basis points).
Economist Projections - ECBI
According to the Electroindustry Business Confidence Index (EBCI) developed
by NEMA, Rosslyn, VA, USA,the current North American conditions jumped sharply in February, rising more than 18 points to 72.5, its highest level in more than six years. The survey’s measure of the degree of change in current North American conditions rose to its highest mark in almost two years, rising to +0.7 in February from +0.1 in January 2012.
The ECBI tracks economic conditions in North America, Latin America, Europe, and Asia Pacific regions. An economic reading above 50 indicates expansion. The index is calculated for the current economic condition and the condition in the future 6 months out. Here are the numbers for each region:
North America: Current = 72.5, Future = 75.0
Latin America: Current = 57.7, Future = 67.9
Europe: Current = 37.6, Future = 34.4
Asia Pacific: Current = 50, Future = 71.9
Bottom Line: All regions except for Europe are experiencing good economic conditions with the future projected to be better.
Saint Patrick's Day - Irish Perspective
Many people will be eating Irish food such as Irish Stew and Corned Beef and cabbage on St. Patrick's Day. Corned Beef is not an Irish dish. It is what Americans think the Irish eat. A more traditional meal would be ham and cabbage or bacon and cabbage. Some say that in Ireland on St. Patrick's Day the traditional green beer is prominent. However, in Ireland, many years ago, St. Patrick's Day is considered a holy day and Pubs were not open for business. There were no parades, no drinking or wearing green. Green was considered an unlucky color.
St. Patrick's Day Pinch - School children have started a little tradition of their own. They pinch classmates who don't wear green on this holiday. Wearing green is strictly a U.S. custom, as the color green is not popular in Ireland. Green is connected to the old green flag and a time when Ireland was not free. Green is also a color connected with hope and nature.
Some Irish Superstitions:
Moon, moon tell unto me,
When my true love I shall see?
What fine clothes am I to wear?
How many children will I bear?
For if my love comes not to me,
Dark and dismal my life will be.
This verse, recited by a maiden as she gathered special herbs by the light of the first full moon of the new year, could reveal a future husband and cause the girl to have a true dream about the man--if she first complied with certain requirements. With a black-handled knife she had to cut out three pieces of earth, bring them home, tie them in her left stocking, and secure the bundle with her right garter. The completed package then had to be placed upon her pillow.
When yawning, make the sign of the cross instantly over your mouth, or the evil spirit will make a rush down and take up his abode with you.
It is unlucky to offer your right hand in salutation, for thee is an old say, "A curse with the left hand to those we hate, but the right hand to those we honor."
If the palm of your hand itches you will be getting money; if the elbow, you will be changing beds.
Breaking a mirror brought seven years of bad luck, while two people washing hands in the same basin at the same time courted disaster.
Sunday, March 4, 2012
Living to 100? That Will Be $3.5 Million
I found this article that talks about the income needs in retirement. The dollar amount is not the important part of the article as the amount of money that someone will spend depends upon a lot of different variables. It is an article that tries to quantify the dollar amount on average retirement money needs. It is important to understand how the expenses change with time.
The bottom line is that you need to be prepared for retirement especially for health care costs that are rising faster than inflation. It is important to optimize Social Security and pension benefits that tends to grow at the rate of inflation or less.
_____________________________-
Living to 100? That Will Be $3.5 Million
By Jonnelle Marte and Linda Lacina | SmartMoney – Mon, Feb 27, 2012 11:30 AM EST
Here's to your long life -- and the heaps of cash it will require.
The average American who lives to the ripe old age of 100 will spend $3.5 million in his or her lifetime, according to an analysis of data from the Bureau of Labor Statistics. A good chunk of that bill, more than $1.5 million, will have been racked by your 50th birthday. The next 30 or so years -- the average 50-year-old today can expect to live until 81 -- will run another $1.4 million. And the lucky few who make it to 100 will need an additional $630,000. Experts say these high costs of living often come as a shock to retirees, many of whom expect to dramatically cut back on their living expenses as they get older and stick to a fixed budget. "A lot of time people actually end up spending more money in retirement than they may have spent when they were working," says Heidi Schmidt, a wealth manager in Dallas with USAA.
Just where that money goes depends largely on your decade. Most people in their 60s spend a lot of their savings on entertainment -- finally buying that sail boat or splurging on trips to the Caribbean. Those in their 80s, on the other hand, typically swap a good portion of their leisure budget for medical bills.
Of course, not all expenses come down to age, experts say. A healthy octogenarian with wanderlust might have spending habits more in line with people twenty or thirty years younger. And certainly many Americans will spend much less in retirement -- either through careful planning, a good bit of luck or both. Whatever the retirement goals, here's a breakdown of how spending tends to vary through the retirement years.
60's
Housing (mortgage, utilities and decor): $155,500
Furnishings and appliances: $15,000
Entertainment and eating out: $46,700
Transportation: $71,000
In this decade of transitioning into retirement, 60-somethings spend more than older age groups on everything from housing to clothes. Many who retire in their 60s often find themselves with the time -- and savings -- to finally splurge a little on traveling or a big-ticket item like a car. Or to indulge their favorite hobbies: According to the Bureau of Labor Statistics, the average recently retired American spends $2,300 a year on activities like going to the movies, caring for a pet and buying the latest gadgets. That drops to an average of $1,300 after age 75.
70's
Total health care costs: $48,400
Prescription drugs: $8,100
Household repairs: $16,400
Utilities: $33,900
Aging's challenges come with bigger price tags. When people hit their 70s, health care costs begin to spike. Longer life spans and the rise of chronic illnesses have pushed up national health care spending, according to the Kaiser Family Foundation. People in their late 60s and early 70s spend an average $4,900 a year on healthcare, an increase of almost 30% from people in their late 50s and early 60s, according to the Bureau of Labor Statistics. Adding to the burden, health-care costs are expected to grow faster than income over the coming years, according to Kaiser.
80's
Health Insurance: $30,300
Entertainment and eating out: $26,000
Groceries: $26,400
Gasoline: $9,800
Eighty-somethings spend 57% more on health insurance and half as much on entertainment as folks in their 50s. More retirees are saving money in their later years of retirement by moving in with their adult children. A survey by the Pew Research Center released in 2010 found that 21% of adults age 85 and above live in a multi-generational household that includes at least two adult generations or a grandparent. That is up from 17% of people in their late 40s and early 50s.
90's
Nursing home (private room): $87,200
Out-of-pocket long-term care: $14,000
Assisted living: $89,000
Adult day services: $36,400
Health costs grow exponentially from one's 50s to mid-90s. And America's 1.9 million nonagerians depend heavily on Social Security and pensions. But the former source may come up short by the time most baby boomers are in their 90s: the Social Security Administration has already started tapping its trust fund to cover benefits and current projections estimate that Social Security will only have enough funds to cover 75% of scheduled benefits after 2036.
The bottom line is that you need to be prepared for retirement especially for health care costs that are rising faster than inflation. It is important to optimize Social Security and pension benefits that tends to grow at the rate of inflation or less.
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Living to 100? That Will Be $3.5 Million
By Jonnelle Marte and Linda Lacina | SmartMoney – Mon, Feb 27, 2012 11:30 AM EST
Here's to your long life -- and the heaps of cash it will require.
The average American who lives to the ripe old age of 100 will spend $3.5 million in his or her lifetime, according to an analysis of data from the Bureau of Labor Statistics. A good chunk of that bill, more than $1.5 million, will have been racked by your 50th birthday. The next 30 or so years -- the average 50-year-old today can expect to live until 81 -- will run another $1.4 million. And the lucky few who make it to 100 will need an additional $630,000. Experts say these high costs of living often come as a shock to retirees, many of whom expect to dramatically cut back on their living expenses as they get older and stick to a fixed budget. "A lot of time people actually end up spending more money in retirement than they may have spent when they were working," says Heidi Schmidt, a wealth manager in Dallas with USAA.
Just where that money goes depends largely on your decade. Most people in their 60s spend a lot of their savings on entertainment -- finally buying that sail boat or splurging on trips to the Caribbean. Those in their 80s, on the other hand, typically swap a good portion of their leisure budget for medical bills.
Of course, not all expenses come down to age, experts say. A healthy octogenarian with wanderlust might have spending habits more in line with people twenty or thirty years younger. And certainly many Americans will spend much less in retirement -- either through careful planning, a good bit of luck or both. Whatever the retirement goals, here's a breakdown of how spending tends to vary through the retirement years.
60's
Housing (mortgage, utilities and decor): $155,500
Furnishings and appliances: $15,000
Entertainment and eating out: $46,700
Transportation: $71,000
In this decade of transitioning into retirement, 60-somethings spend more than older age groups on everything from housing to clothes. Many who retire in their 60s often find themselves with the time -- and savings -- to finally splurge a little on traveling or a big-ticket item like a car. Or to indulge their favorite hobbies: According to the Bureau of Labor Statistics, the average recently retired American spends $2,300 a year on activities like going to the movies, caring for a pet and buying the latest gadgets. That drops to an average of $1,300 after age 75.
70's
Total health care costs: $48,400
Prescription drugs: $8,100
Household repairs: $16,400
Utilities: $33,900
Aging's challenges come with bigger price tags. When people hit their 70s, health care costs begin to spike. Longer life spans and the rise of chronic illnesses have pushed up national health care spending, according to the Kaiser Family Foundation. People in their late 60s and early 70s spend an average $4,900 a year on healthcare, an increase of almost 30% from people in their late 50s and early 60s, according to the Bureau of Labor Statistics. Adding to the burden, health-care costs are expected to grow faster than income over the coming years, according to Kaiser.
80's
Health Insurance: $30,300
Entertainment and eating out: $26,000
Groceries: $26,400
Gasoline: $9,800
Eighty-somethings spend 57% more on health insurance and half as much on entertainment as folks in their 50s. More retirees are saving money in their later years of retirement by moving in with their adult children. A survey by the Pew Research Center released in 2010 found that 21% of adults age 85 and above live in a multi-generational household that includes at least two adult generations or a grandparent. That is up from 17% of people in their late 40s and early 50s.
90's
Nursing home (private room): $87,200
Out-of-pocket long-term care: $14,000
Assisted living: $89,000
Adult day services: $36,400
Health costs grow exponentially from one's 50s to mid-90s. And America's 1.9 million nonagerians depend heavily on Social Security and pensions. But the former source may come up short by the time most baby boomers are in their 90s: the Social Security Administration has already started tapping its trust fund to cover benefits and current projections estimate that Social Security will only have enough funds to cover 75% of scheduled benefits after 2036.
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