Summer is coming, I think! A few days of heat, then cooler than normal, as unpredictable as the Stock market. As of this writing (June 10), the S&P 500 is up 2.9% year to date, more importantly, ranging over 27% over the last year. Like watching a pickleball rally! President Trump poses a new strategy, the world and the markets react. He pares back his proposal and the markets react. He and Elon Musk get into a spat over the BBB and everyone speculates on what will happen to DOGE or has it been effective at all? I’d love to sit back and watch the waves roll in, but I don’t think it is that kind of Summer (sell in May and go away).
There’s lots going on at harvest Financial. Some of you got the chance to meet Tim Wenger when he was here. Discussion continue about his interest in working with us more closely. He has his own business in Colorado Springs but is a young man looking to grow. Technology today allows us to work together effectively. It is great to get new perspective. I look forward to everyone meeting Tim via Zoom, phone or in person.
As a caution, Cetera has set a deadline for paperwork given possible changes in the regulatory environment and strategies. Most paperwork will expire after 30 days. Lidia is hard at watching the clock on paperwork and we know it’s Summer, so things take a bit longer. Obviously, digital forms save trees but we know some like to review the documents in paper. We will do our best to keep things moving.
Summer time may mean summer jobs for your children. A great opportunity to teach about finance. Where is the money going once it gets into their hands; fun, filling the gas tank, trying to buy a car, saving for school, saving for retirement. The possibilities are endless. Let’s say at age 14, Johnny gets job and put $1,000 into a Roth IRA and does the same each summer until he is 20 (6X$1,000= $6,000 invested). Johnny doesn’t add another dime to the fund because he now has more money, more bills and a 401(k) Let’s say he has an average annual return of 7% for the life of the fund to age 65. How much would Johnny’s Roth be worth at age 65? How does over $160.000 sound? The power of compounding, you can get wealthy on that kind of summer time learning!
This example does not reflect sales charges or other expenses that may be required for some investments. Rates of return will vary over time, particularly for long term investments.
Summer also brings holidays Juneteenth and 4th of July. Which means that the office will be closed Thursday, June 19th and Friday July 4th. Enjoy nice hot weather and time with the family.