Spring client newsletter

Greetings and Welcome to the 2nd Quarter and Spring of 2017

We wanted to provide you with some relevant information that you may find interesting regarding Mortgage Rates at historically low levels, an update on the economy as it relates to your financial investments, and the upcoming tax filing deadline of April 18th.

A Lesson on Mortgages I hope you can Share with Someone

You most likely at one time in your life had a goal to pay of the Mortgage on your home. We commend you on this goal and we think it is a very prudent step at achieving financial peace of mind, however we are sure you know of someone whether it be a friend, child or relative who still holds a mortgage if you have accomplished this goal already. An important thing to remember when you hold a mortgage is you want to have a payment that works for your budget with the lowest interest rate possible. Rates have recently dropped to pre-election lows and we again are seeing an opportunity for homeowners to refinance. Just dropping 1/2 percentage point on your mortgage can really add up over time.

For example, someone with a $200,000 mortgage who can lower their interest rate from 4.0% to 3.5% will save approximately $20,000 over the course of their mortgage lowering their payment from $955 monthly to $898 monthly before taxes and insurance. If you know someone with a mortgage now is a great time to consider refinancing to a lower rate or reducing the term length on the loan to pay off the house. Please give us a call if you would like help in this arena to find a solution that works for you. While we do not offer loans, we work with some very good lenders locally who can serve your needs.

The Economy in the 1st Quarter 2017

Riding the momentum following the presidential election, stocks surged for much of the first quarter of 2017. Buoyed by the anticipation of tax cuts and policies favorable to domestic businesses, the benchmark indexes listed here reached historic highs throughout the quarter. At the end of January, the Dow reached the magic 20000 mark for the first time, while the tech-heavy Nasdaq gained almost 4.50% for the month. The trend continued in February, as stocks posted solid monthly gains. The Dow closed the month with a run of 12 consecutive daily closings that reached all-time highs. The S&P 500 also achieved a milestone — 50 consecutive trading sessions without a daily swing of more than 1.0%. At the close of trading in February, each of the benchmark indexes listed here posted year-to-date gains, led by the Nasdaq, which was up over 8.0%.

March began with a bang but ended with a whimper. The Dow closed the first week of the month at over 21000, while the Nasdaq gained over 9.0% year-to-date. However, energy stocks slipped as the price of oil began to fall. Entering mid-March, investors exercised caution pending the potential Fed interest rate hike and the push for a new health-care law. Following its mid-March meeting, the Fed raised interest rates 25 basis points, while the move to replace the ACA with a new health-care law failed for lack of congressional support.

While the Market is good – it is only good for now. We should remain cautiously optimistic and expect turbulence throughout the year like any other year of investing, and therefore remain invested in a diversified portfolio of Stocks and Bonds to achieve your long-term goals.

Tax Deadline Approaching April 18th, 2017

Yes, that is correct, April 18th is the tax filing deadline this year. You are getting a little extra time to file your taxes thanks to a holiday that may be completely unknown to you – Emancipation Day. If you have any last-minute tax concerns or still need to make an IRA contribution for 2016 you have until the filing deadline. Again, if you are still working or have children who are working - maximizing a Roth or a Traditional IRA is a great strategy for tax purposes to save for retirement.

Wishing you the best in the Spring of 2017.

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