“Humor is also a way of saying something serious.” – T.S. Eliot
Remember that there are two kinds of 529 plans: the prepaid tuition plan and the college savings plan. A prepaid tuition plan lets you pay some of the future cost of a university education today. A college savings plan offers you a choice of equity investments for your savings and has variable returns.
I went into the woods and got it. I brought it home in my hand and removed it. What am I talking about?
Last week’s riddle:
It can be high or low;
it may run between your toes. It relates to the sun and the sky,
and it may make things fall and rise. What is it?
Last week’s answer:
JOBLESS RATE HITS 18-YEAR LOW
Unemployment fell to 3.9% in April, the Department of Labor said Friday – the smallest percentage seen since late 2000. Additionally, the U-6 underemployment rate declined to 7.8%, a 17-year low. Payrolls expanded with 164,000 net new jobs last month; the economy has created an average of 200,000 jobs a month so far in 2018, compared to 177,000 a month in 2017.1
PERSONAL SPENDING IMPROVES 0.4%
The March gain reported by the Bureau of Economic Analysis was the best since the 0.5% advance in December. Personal wages increased 0.3% for March, replicating the gain from February.2
INSTITUTE FOR SUPPLY MANAGEMENT (ISM) INDICES RETREAT
Purchasing manager indices at the Arizona-based Institute for Supply Management showed the factory and service sectors of the economy cooling down in April from a red-hot degree of expansion. ISM’s manufacturing PMI fell 2.0 points to 57.3, and its non-manufacturing PMI dropped by the same amount to 56.8.3
NASDAQ RISES; DOW, S&P FALL SLIGHTLY
All three major Wall Street indices rallied on Friday, but only the Nasdaq Composite ended up higher on the week. Across five trading sessions, the tech-heavy benchmark gained 1.26% to 7,209.62. The S&P 500 declined 0.24% for the week to 2,663.42, while the Dow Jones Industrial Average lost 0.20% to settle at 24,262.51.4
THIS WEEK: AMC Entertainment, Andeavor, Hertz Global Holdings, Invacare, Sempra Energy, Sysco, and Tyson Foods announce earnings Monday. Before Tuesday’s open, Federal Reserve chair Jerome Powell comments on monetary policy in Switzerland; after the open, Wall Street considers earnings calls from Aramark, Dean Foods, Discovery, DISH Network, Electronic Arts, Etsy, La Quinta Holdings, Marriott, Monster, Papa John’s, Planet Fitness, TripAdvisor, U.S. Auto Parts, Valeant, Walt Disney Co., Wendy’s, and William Lyon Homes. April’s Producer Price Index arrives Wednesday, plus earnings from Anheuser-Busch, Coty, Green Dot, Groupon, Horizon Pharma, Hostess, Office Depot, Roku, Siemens AG, Spectra Energy Partners, Sunoco, 21st Century Fox, and Weibo. Thursday, the April Consumer Price Index and new initial claims figure complement earnings from AMC Networks, Duke Energy, News Corp., Nvidia, Symantec, TiVo, and Yelp. On Friday, the University of Michigan unveils its preliminary May consumer sentiment index, and ArcelorMittal and Thomson Reuters make earnings news.
|% CHANGE||Y-T-D||1-YR CHG||5-YR AVG||10-YR AVG|
|REAL YIELD||5/4 RATE||1 YR AGO||5 YRS AGO||10 YRS AGO|
|10 YR TIPS||0.79%||0.50%||-0.53%||1.53%|
Sources: wsj.com, bigcharts.com, treasury.gov – 5/4/184,5,6,7
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.
Greg R. Solis, AIF®
President and CEO
Bob Medler, CRPC®, CMFC®, AIF®
Wealth Advisor / Investment Analyst
78-075 Main Street
La Quinta, CA 92253
Office: (760) 771-3339
Fax: (760) 771-3181
The Wealth Advisors of Solis Wealth Management are also Registered Representatives with and securities and advisory services are offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC
The information contained in this email message is being transmitted to and is intended for the use of only the individual(s) to whom it is addressed. If the reader of this message is not the intended recipient, you are hereby advised that any dissemination, distribution or copying of this message is strictly prohibited. If you have received this message in error, please immediately delete.
P.S. You have my permission to forward this commentary to family, friends, or colleagues. If you would like us to add them to the list, please reply to this e-mail with their e-mail address and we will ask for their permission to be added.
*Prior to investing in a 529 Plan investors should consider whether the investor’s or designated beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results.
Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.
1 – jamiedupree.blog.ajc.com/2018/05/04/nations-jobless-rate-drops-under-4-percent-for-first-time-since-2000/ [5/4/18]
2 – tradingeconomics.com/united-states/personal-spending [5/4/18]
3 – instituteforsupplymanagement.org/ISMReport/NonMfgROB.cfm?SSO=1 [5/4/18]
4 – markets.wsj.com/us [5/4/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F4%2F17&x=0&y=0 [5/4/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F4%2F17&x=0&y=0 [5/4/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F4%2F17&x=0&y=0 [5/4/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F3%2F13&x=0&y=0 [5/4/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F3%2F13&x=0&y=0 [5/4/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F3%2F13&x=0&y=0 [5/4/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F5%2F08&x=0&y=0 [5/4/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F5%2F08&x=0&y=0 [5/4/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F5%2F08&x=0&y=0 [5/4/18]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [5/4/18]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [5/4/18]