Market Commentary for the week of August 13, 2018

The Markets

The three major indexes fell Friday amid Turkey’s accelerated currency volatility, which is starting to impact global markets. The day’s losses knocked the S&P 500 and the NASDAQ down from near-record levels. For the week, the Dow fell 0.44 percent to close at 25,313.14. The S&P lost 0.18 percent to finish at 2,833.28, and the NASDAQ rose 0.35 percent to end the week at 7,839.11.

Source: Morningstar.com. *Past performance is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Three- and five-year returns are annualized. The Dow Jones Industrials, MSCI EAFE, Barclays US Agg Bond and S&P, excluding “1 Week” returns, are based on total return, which is a reflection of return to an investor by reinvesting dividends after the deduction of withholding tax. The NASDAQ is based on price return, which is the capital appreciation of the portfolio, excluding income generated by the assets in the portfolio in the form of interest and dividends. (TR) indicates total return. (PR) indicates price return. MSCI EAFE returns stated in U.S. dollars.

Significant — Nineteen percent of the U.S. population receives a monthly benefit payment from Social Security, i.e., 62 million beneficiaries out of 328 million Americans (source: Social Security, BTN Research).

Pretty Good Number — The U.S. economy grew by 4.1 percent in the second quarter 2018, i.e., a quarter-over-quarter increase expressed as an annualized result. In the last dozen years (48 quarters), there have been just four quarters that reported a higher growth rate (source: Commerce Department, BTN Research).

Home Price — The median sales price of existing homes sold in the U.S. in June 2018 was $276,900, a record price. However, the median sales price of existing homes sold in July 2006 ($230,200) is equal to $285,051 in today’s dollars, the record high price on an inflation-adjusted basis (source: National Association of Realtors, BTN Research).

WEEKLY FOCUS – Are You or Could You Become a Solo Ager?

Retirement advice is often geared toward married couples. But what about the growing number of single retirees? According to the Census Bureau, around 40 percent of women and 35 percent of men ages 45 to 64 are unmarried.  Those who are aging solo may face special challenges – without a built-in caregiver to lean on and no one to share the costs of housing, food and other expenses. And elder orphans, as childless singles are sometimes called, may experience additional issues. That’s why thoughtful planning in the following areas is crucial for seasoned singles.

Make connections now. It’s important to build a thriving social network. Friends improve seniors’ emotional well-being, encourage them to stay active physically and mentally, check in on one another and help out when needed. Senior-friendly “congregate living” arrangements offer a variety of services and lessen isolation. Retirees looking for a suitable roommate to share expenses, experiences and chores can turn to matching services like Silvernest.com. There are even online communities like the Elder Orphan Facebook Group, where aging childless singles ask questions and share helpful resources and strategies.

Plan to sustain independence. Those flying solo who are still employed should acquire adequate emergency savings and long-term disability coverage. They may want to relocate to a home where they can age in place in a community with helpful resources for seniors, convenient public transportation or everything they need daily within walking distance. More ride-hailing and home-delivered services, including healthy meals, are also available. And technology provides options to make life easier and safer for seniors, including video chat, motion sensing lights, medication reminders and automated home controls. One service, EyeOn App, signals three friends if a senior doesn’t reply to a scheduled cell phone alert.

Build a micro board. Those entering the golden years alone need a group of people to look out for them financially and medically when necessary. This may include an elder law attorney, health care and financial agents who have power of attorney, clergy, an accountant and a geriatric care manager. While a medical agent should live nearby so they can respond quickly in an emergency, a financial agent can serve from a distance.

Whether you or someone you know is approaching retirement single or wants to prepare for the possibility of singlehood, it’s important to explore all options to preserve assets and independence.

* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Morgan Stanley Capital International Europe, Australia and Far East Index (MSCI EAFE Index) is a widely recognized benchmark of non-U.S. stock markets. It is an unmanaged index composed of a sample of companies representative of the market structure of 20 European and Pacific Basin countries and includes reinvestment of all dividends. Barclays Capital Aggregate Bond Index is an unmanaged index comprised of U.S. investment-grade, fixed-rate bond market securities, including government, government agency, corporate and mortgage-backed securities between one and 10 years. Written by Securities America, Copyright August 2018. All rights reserved. Securities offered through Securities America, Inc., Member FINRA/SIPC. SAI#2209328.1