T his Week from Jesse Hurst
Jesse W. Hurst, II
CFP® CERTIFIED FINANCIAL PLANNER™
AIF ® ACCREDITED INVESTMENT FIDUCIARY
 
Should I buy travel insurance?

  
One of the things that many of our clients look forward to as they transition from their work life to their retirement life, is being able to start traveling more extensively and checking long dreamed of places off their bucket list.
 
If these travels include heading overseas, we believe that you should seriously consider travel insurance. This protects you against more than lost luggage and weather-related travel delays. It generally includes coverage for medical care in a foreign country and if necessary medical evacuation and travel back to the United States.
 
It's very important to understand that Medicare, the primary source of insurance for Americans age 65 and older, stops at the US border, and most Medicare supplement plans provide limited coverage overseas. If you are still in your working years and covered by group insurance or your own private insurance, you should check with your provider to see if there is oversees coverage before making this critical decision.
 
I have had more than one client and/or friend have to deal with these issues. This includes a client of mine who became ill with meningitis while traveling in India. After getting her stabilized, she was able to be transported back to the United States for additional treatment. If they had not had travel insurance, this would have cost hundreds of thousands of dollars.
 
I have a friend who fell in a gym at a hotel in Mexico and broke his arm. The care he received in the local medical facility was sub-par and overpriced at best. His travel insurance helped get him back to the United States for additional surgery.
 
We have found that travel insurance generally costs 6-10% of the total trip expenses. A recent travelinsurance.com survey found that 22% of retired Americans will spend more than $5,000 on leisure travel this year. We know that our clients, who have saved and accumulated wealth for their retirement years, generally have greater disposable income, take longer trips, and spend more time and money on vacation travel than they did when they were working.
 
Having a travel insurance policy could be a lifesaver for some people. If you are on vacation and have a medical emergency, you will not have to navigate a foreign healthcare system. You are just a phone call away from help. We wanted you to keep this in mind, as it is a topic that does not often occur during financial planning discussions. Please keep it in mind as you plan your trips in the future and make sure you ask your travel providers about this valuable coverage. We thought this was an important topic to cover as we all keep "Moving Life Forward", and possibly overseas.


Jesse


Weekly Market Commentary
April 15, 2019
 


The Markets
 
Investors took an intermission.
 
The curtain appeared to close on the first act of 2019 last week - and what an impressive act it was. The Standard & Poor's 500 Index delivered some dramatic returns and is less than 1 percent away from a new all-time high.
 
Despite relatively few shares changing hands, major U.S. indices eked out gains. Ben Levisohn of Barron's explained:
 
"Trading volume was tepid at best. This past Monday, fewer shares changed hands than on any day since December 24 - when the market closed early for Christmas. Tuesday's volume was lower than Monday's, Wednesday's was lower than Tuesday's, and...well, you get the point. That was just another sign that no one wanted to place any big bets on the market this past week - in either direction."
 
Investors were complacent even though news suggested trade talks with China were progressing well. They remained unruffled in the face of a Presidential tweet suggesting the United States will impose tariffs on Europe in retaliation for illegal subsidies to a European aerospace firm.
 
There was another interesting development in the United States last week. It was widely reported that a number of companies in retail and banking sectors increased entry-level hourly wages to levels well above the national minimum wage of $7.25 an hour. The companies are paying $13 to $20 an hour, according to Renae Merle of The Washington Post and a report from Reuters.
 
That is good news for workers, but not such good news for investors since higher wages could lead to lower corporate profits, reported Joe Wallace and Akane Otani of The Wall Street Journal.


Data as of 4/12/19
1-Week
Y-T-D
1-Year
3-Year
5-Year
10-Year
Standard & Poor's 500 (Domestic Stocks)
0.5%
16.0%
9.1%
12.1%
9.7%
13.0%
Dow Jones Global ex-U.S.
0.3
11.9
-6.3
6.3
1.0
5.9
10-year Treasury Note (Yield Only)
2.6
NA
2.8
1.8
2.6
2.9
Gold (per ounce)
0.5
1.0
-3.5
1.0
-0.5
3.9
Bloomberg Commodity Index
0.4
7.8
-7.2
0.7
-9.7
-3.1
DJ Equity All REIT Total Return Index
0.3
18.7
24.2
8.3
10.3
16.5
S&P 500, Dow Jones Global ex-US, Gold, Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; the DJ Equity All REIT Total Return Index does include reinvested dividends and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods.
Sources: Yahoo! Finance, Barron's, djindexes.com, London Bullion Market Association.
Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.

Thought required.
P eople make everyday decisions based on the information they possess at any given moment, explained The Economist. As understanding of an issue changes, so do the decisions people make.
 
For example, a lot of people dislike plastic grocery bags. Many shoppers choose to take cloth bags to the grocery store rather than use plastic bags provided by the store. In fact, some 240 cities and counties have laws that ban or tax plastic bags, according to Planet Money, and there is a national movement afoot to ban the bags.
 
However, the economics of plastic grocery bags is not as straightforward as many believe. Banning plastic bags appears to be an effective solution to a serious environmental issue. Unfortunately, it is not. An Australian economist studied the effects of plastic bag bans and discovered bans helped and hurt the environment:
 
  • The good news: Cities with bans used fewer plastic bags, and 40 of those cities generated about 40 million fewer pounds of plastic trash annually.
 
  • The bad news: Sales of plastic garbage bags increased by 120 percent after the ban, possibly because people reused grocery bags to line trashcans and clean up after dogs. Since trash bags are made of heavier plastic than grocery bags, about 30 percent of the plastic trash gains associated with the bans were lost.
 
In addition, paper bag use rose, creating 80 million pounds of paper trash annually. Paper is biodegradable and can be composted; however, producing paper bags requires water, fuel, and trees, so that should be considered as well, reported Stanford Magazine.
 
A separate study conducted by the Danish government found, "The most environment-friendly way to carry groceries is to use the same bag over and over again...the best reusable ones are made from polyester or plastics like polypropylene."

Weekly Focus - Think About It

Monday, April 15 is tax day in the United States. Below is an excerpt from a radio show:
 
"Vanek Smith: Joe and his California tax team are eating lunch and talking shop. And they tell Joe they have this idea, an idea they think would save California a bunch of money and time and help taxpayers. They say, most people in California have really simple taxes. They get all of their income from a regular paycheck, and taxes are already withheld from those paychecks.
 
Bankman : So their idea was - why don't we start off giving them a tax return that's already filled out with the income we know they have? And then they can make corrections on it. That was their idea...
 
Vanek Smith : So they did a pilot program in California. In the 2004 tax season, they sent [completed forms] out to about 11,000 taxpayers along with this little survey.
 
Bankman : So we asked people, do you think you'd like to use this again next year? And 99 percent of the people said yes. Ninety-nine percent of people don't say yes to anything."
                                                       --Joseph Bankman, Stanford Professor of Law and Business and
                                                                                     Stacey Vanek Smith, Planet Money radio host



Best regards, 
 
Jesse Hurst
 
Impel Wealth Management 
 
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Securities and advisory services offered through Cetera Advisors LLC, member FINRA/SIPC, a broker/dealer and a Registered Investment Adviser. Cetera is under separate ownership from any other named entity.
  
These views are those of Carson Group Coaching, and not the presenting Representative or the Representative's Broker/Dealer, and should not be construed as investment advice.
 
* This newsletter was prepared by Carson Coaching. Carson Coaching is not affiliated with the named broker/dealer.

 
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.  However, the value of fund shares is not guaranteed and will fluctuate.

 
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* The Dow Jones Industrial Average (DJIA), commonly known as "The Dow," is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.
* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.
* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* You cannot invest directly in an index.
* Stock investing involves risk including loss of principal.
* The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete.
* There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
* Asset allocation does not ensure a profit or protect against a loss.

 
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Sources:



 
 
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