Float Like A ButterflyJun 19, 2017 | Wealth Management
There’s an old adage in boxing that the match is won or lost before you ever enter the ring. The match itself only reveals who was best prepared. Angelo Dundee is regarded as one of the best boxing trainers in history. He began working with a young Cassius Clay in 1960 and worked with him for 21 years making Cassius, later known as Muhammad Ali, the greatest of all-time. By many accounts, Ali’s preparation and work ethic were unmatched and was evidenced in the ring time after time. As explained by Ali: “The fight is won or lost far away from witnesses - behind the lines, in the gym and out there on the road, long before I dance under those lights.” Together, Ali and Dundee made an awesome team and Ali may not have reached the heights he did without Angelo giving him direction throughout his career.
Just like in boxing, your retirement is won before you step into the retirement “ring”. Your success in retirement is a function of how well you have prepared and your preparation begins years in advance. Retirement planning is not a one-time thing. It is a continual process that needs to be reviewed often. There may be some challenges and adjustments made along the way, but your retirement reward will be worth any sacrifice. However, don’t go it alone. One wrong decision can have a lasting effect on your overall plan. Just like Ali knew he couldn’t execute his plan by himself, you need someone on your side to add direction to your passions. You need someone that will work closely with you, your CPA, estate attorney and other members of your financial team to ensure you have an effective plan and stay on course. If you need help getting started or would like a second opinion on your current plan, just give me a call.
“I hated every minute of training, but I said, ‘Don’t quit. Suffer now and live the rest of your life as a champion.’” — Muhammad Ali
Live your retirement life as a champion! I want each of you to lift that retirement championship belt over your head and repeat the words of one of the great philosophers of our time, Rocky Balboa, who exclaimed, “Yo, Adrian, I did it!”
Below is our recent Market Update.
Have a great week!
Senior Wealth Advisor
DOW 30 OUTPACES S&P 500
Rising 0.53% in five days, the Dow Jones Industrial Average ended the week at 21,384.28. The S&P 500 made a weekly advance of 0.06% to a Friday close of 2,433.15. Tech shares kept selling off, resulting in the Nasdaq Composite’s 0.90% weekly descent to a Friday settlement of 6,151.76. The Dow Jones Utility Average had the best week among consequential U.S. equity indices, rising 1.75%.
FED DELIVERS EXPECTED & UNEXPECTED NEWS
As Wall Street anticipated, the Federal Reserve raised interest rates on June 14. The Federal Open Market Committee voted 8-1 to take the benchmark interest rate north by a quarter-point to the 1.00-1.25% range. The Fed also said it would begin to reduce its $4.5 trillion balance sheet at some point “this year” by slowing reinvestments. As a start, it will let $6 billion per month in Treasury holdings run off, along with $4 billion per month in agency debt and mortgage-linked securities. This implies upward pressure on long-term interest rates.
RETAIL SALES, HEADLINE INFLATION BOTH RETREAT
The Consumer Price Index declined 0.1% in May, noted the Bureau of Labor Statistics; core consumer inflation rose 0.1%. A bigger May decline came for retail purchases – the Census Bureau said that they fell 0.3% even with car sales factored out.
HOUSING STARTS SLIP
The Census Bureau’s new residential construction snapshot showed groundbreaking at an 8-month low, with total housing starts down 5.5% in May. Total building permits decelerated 4.9% last month to their slowest pace since April 2016.
GAUGE OF SENTIMENT DESCENDS
In its preliminary June edition, the University of Michigan’s consumer sentiment index fell short of expectations. Economists, polled by Briefing.com, forecast a reading of 97.0 for the index, but it came in at 94.5.
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