9 Facts About Retirement

Eagle Wealth Management |
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Weekly Market Commentary
 



Retirement can have many meanings.  For some, it’s about travelling and spending time with family members.  For others, it may be about starting a new business or beginning a charitable endeavor.  Regardless of what approach you take, here are nine interesting things about retirement that might surprise you.

  1. Many consider the standard retirement age to be 65.  One of the key influencers in arriving at that age was Germany, which initially set its retirement age at 70 and then lowered it to age 65.1
  2. Every day between now and the end of the next decade, another 10,000 baby boomers are expected to turn 65.  That's roughly one person every eight seconds.2
  3. The 65-and-older population is one of the fastest growing demographics in the United States.  In 2019, there were 54.1 million Americans aged 65 and older.  That number is expected to increase to 80.8 million by 2040.3
  4. Ernest Ackerman was the first person to receive a Social Security benefit.  In March 1937, the Cleveland streetcar motorman received a one-time, lump-sum payment of 17¢.  Ackerman worked one day under Social Security.  He earned $5 for the day and paid a nickel in payroll taxes.  His lump-sum payout was equal to 3.5% of his wages.4
  5. Seventy-seven percent of retirees say they are confident about having enough money to live comfortably throughout their retirement years.5
  6. The monthly median cost of an assisted living facility is $4,500, and seven out of ten people will require extended care in their lifetime.2
  7. Sixty-four percent of retirees depend on Social Security as a major source of their income.  The average monthly Social Security retirement benefit at the beginning of 2022 was $1,614.5,6
  8. Centenarians – in 2020 there were 92,000 of them.  By 2060, this number is expected to increase to 589,000.7
  9. Seniors aged 65 and older spend over four hours a day, on average, watching TV.8

If any of these statistics have got your wondering, please reach out to us.  We’re always here to help you on your financial journey.
 
Kind Regards,
 
Your Eagle Wealth Team

 

Invested In . . . Our Graduates!

It’s graduation season again and all around the country students are preparing for new adventures.

Have you ever wondered if a few pieces of good advice could’ve made a difference in life’s path?   We have, and that’s why we’re on a mission to help people along their financial journey. 

One of the benefits of being a part of the Eagle Wealth community is that your child or grandchild falls under our umbrella.  They can speak with us and get answers to their big money questions.  Whether they're preparing for a bachelor’s degree, graduate school, or braving the workforce, there's a lot of questions about what to do next. 
 
The Details

  • Give us a heads-up that you have a graduate in need of our help, then pass on our contact info.
  • They can call and schedule a 45-minute phone or video call with an Eagle Wealth team member to cover the following:
    • Q&A
    • Access to simple budgeting templates and student loan worksheets.
    • Follow up email with suggested action items as well as links to blogs, podcasts, and books to check out.

So, give your loved one a leg up and encourage them to set a meeting with us now. 
 
*Limited to Eagle Wealth community children or grandchildren

 

Choose To Make Your Plate “MyPlate” 

The so-called Food Pyramid had many flaws. Its significant weaknesses were that it generalized recommended daily servings and poorly defined portion sizes. So, in 2008, the U.S. Department of Agriculture implemented a user-friendly redesign: the pyramid was transformed into a plate. 
 

The concept behind the MyPlate design was both revolutionary and seemingly obvious. After all, we eat off a plate, not a pyramid. Portions are easier to see. Make half the plate fruits and vegetables; the other half, grains and protein—a serving of dairy (or non-dairy alternative) on the side.

Take advantage of this method the next time you sit down for a meal and see what adjustments you can make to make your plate even healthier.  Visit MyPlate.gov  to learn more.

Tip adapted from MyPlate.gov

 


The Week on Wall Street

A late-week rally sent stocks into positive territory, with the S&P 500 index closing just shy of the 4,300 mark.

The Dow Jones Industrial Average gained 0.34%, while the Standard & Poor’s 500 added 0.39%. The Nasdaq Composite index improved 0.14% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, rose 0.44%.9,10,11


Stocks Edge Higher

Stocks bumped along the flatline for much of the week ahead of this week’s two inflation reports and the June meeting of the Federal Open Market Committee.

Amid little news, stocks drifted lower to start the week until Wednesday, when a solid early-day rally evaporated on news of the Bank of Canada's surprise interest rate hike. Stocks rose again the following day, holding onto their gains, with the S&P 500 hitting a new closing high for 2023.12

Stocks added small gains on Friday after weathering some midday weakness, leaving major indices marginally higher for the week.


Better Breadth

One investor concern has been that a handful of mega-cap stocks have driven recent market returns. Last week’s market bucked that trend, with outperformance in small-cap stocks and equally-weighted stock market indices.

For instance, the Russell 2000 index (which measures the performance of 2,000 smaller-cap companies) rose 1.90% this week, outpacing the S&P 500 and the technology-heavy Nasdaq.13

Another example of broadening performance was the outperformance of the equally-weighted S&P 500 index, where each stock has equal weighting regardless of size, versus the market-cap S&P 500 index, where mega-cap companies disproportionately impact index performance. Last week's return of the equally-weighted S&P 500 index exceeded the cap-weighted S&P 500’s return by 0.65%.14

THE WEEK AHEAD

KEY ECONOMIC DATA

Tuesday:  Consumer Price Index (CPI)
Wednesday:  Producer Price Index (PPI), FOMC Announcement
Thursday:  Retail Sales, Industrial Production, Jobless Claims
Friday:  Consumer Sentiment

Source: Econoday, June 9, 2023

The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.

 COMPANIES REPORTING EARNINGS


Monday:  Oracle Corporation (ORCL)
Thursday:  Adobe, Inc. (ADBE)
 

Source: Zacks, June 9, 2023
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.

Any companies mentioned are for informational purposes only, and this should not be considered a solicitation for the purchase or sale of their securities. Any investment should be consistent with your objectives, time frame, and risk tolerance

 

1. SSA.gov, 2022
2. Genworth.com, 2022
3. ACL.gov, May 4, 2022
4. Social Security Administration, 2022
5. Employee Benefit Research Institute, 2022
6. SSA.gov, 2022
7. Statista.com, August 3, 2022
8. BLS.gov, 2022
9. The Wall Street Journal, June 9, 2023. 
10. The Wall Street Journal, June 9, 2023.
11. The Wall Street Journal, June 9, 2023.
12. CNBC, June 8, 2023.
13. The Wall Street Journal, June 8, 2023.
14. Google Finance, June 9, 2023.

 The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.

The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.

The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.

The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.

U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.

Please consult your financial professional for additional information.

This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC