BIG CITY PEOPLE 50% of the US population lives in just 143 counties in the USA, i.e., just 4.6% of the 3,142 counties throughout the nation are home to half our citizens. (Source: Census Bureau) DISCRETIONARY  VS. MANDATORY Over the next decade (fiscal years 2019-2028), estimated discretionary spending by the US government is $14.1 trillion, an amount that is dwarfed by the government’s $35.9 trillion of projected mandatory spending. (Source: Department of Labor) MORE OUT THAN IN The total … [Read more...]

UP vs. DOWN The split between “up” and “down” trading days for the S&P 500 over the last 50 years (i.e., 1969-2018, encompassing a total of 12,611 trading days) is 53% “up” and 47% “down.” The split during calendar year 2018 (there were 251 trading days last year) was also 53/47. (Source: BTN Research) TEN-YEAR NOTE The yield on the 10-year Treasury note ended 2018 at 2.68%, up 0.27 percentage points from the 2.41% it finished at on 12/31/17. The 10-year note yield was 2.57% on 08/05/11, … [Read more...]

THAT WOULD HURT Individual income taxes paid by American taxpayers would have to increase by +46% in order to eliminate our $779 billion deficit from fiscal year 2018. (Source: Treasury Department) PRODUCING MORE, IMPORTING LESS As of the end of October 2016, the USA was producing 8.5 billion barrels of crude oil per day while we were importing 9.0 million barrels. As of the end of October 2018, the USA was producing 11.2 million barrels of crude oil per day while we were importing 7.3 … [Read more...]

TRILLIONS The size of the US bond market is $42 trillion. The size of the US stock market is $32 trillion. The size of the US economy is $20 trillion. The size of Chinese economy is $12 trillion. (Source: BTN Research) THERE FOR THE TAKING 60% of American workers have access to an employer-sponsored defined contribution plan, e.g., 401(k) plan. 26% of American workers have access to an employer-funded defined benefit pension plan. (Source: Bureau of Labor Statistics) HOSPITAL STAY A day in … [Read more...]

SHIFTING THE RISK Between 1975 and 2014, the number of defined benefit pension plans in the private sector fell by 57% while the number of defined contribution plans increased by +208%. (Source: DOL) NOT A PENNY 39% of Millennials have accumulated no funds for their eventual retirement. Millennials were born between 1981-97 and are age 21-37 in 2018. (Source: Personal Capital) STATUS To be in the top 1% worldwide, you need a net worth of $871,320 in U.S. dollars. To be among the top 10%, a … [Read more...]

START SAVING NOW A child born in 2018 that begins kindergarten in the fall of 2023 would attend college between the years of 2036 and 2040. If that child attended an average public in-state 4-year college and if the annual price increases for public colleges experienced over the last 30 years (+5.4% per year) continued into the future, the aggregate 4-year cost of the child’s college education (including tuition, fees, room & board) would be $237,262 or $59,315 per year. (Source: College … [Read more...]

IF IT HAPPENED TODAY When the S&P 500 fell 58 points on “Black Monday” (10/19/87), the tumble represented a fall of 20.5%. A 20.5% decline on last Friday’s (10/19/18) closing index value of 2768 would equate to a fall of 567 points. The largest drop for the index this year has been 113 points. (Source: BTN Research) JUT FIVE SURPLUS YEARS The budget deficit for the United State in fiscal year 2018 (i.e., the 12 months that ended 9/30/18) was $799 billion. The USA has run a budget deficit … [Read more...]

WAITING FOR THE RIGHT MATE For Americans who got married in 2017 for the first time, the median age for men was 29.5 years old and the median age for women was 27.4 years old. (Source: Census Bureau) LOSE In the first three months of 2018, 83% of initial public offerings were companies that lost money in the 12 months leading up to the IPO- the highest level in history. (Source: Wall Street Journal, October 1, 2018) HOLIDAY SPENDING It is expected that this year will be the first … [Read more...]

SOUNDS LIKE A TRILLION PER YEAR The national debt as of 9/30/18 (i.e., the end of fiscal year 2018) was $21.5 trillion, up $1.3 trillion in the last year, up $4.8 trillion in the last 5 years and finally up $11.5 trillion in the last 10 years. (Source: Treasury Department) WAY OFF In January 2008, the Congressional Budget Office released a 10-year forecast of our nation’s national debt. The debt projection made in 2008 for the end of fiscal year 2018 (i.e., 9/30/18) was $12.704 trillion. Our … [Read more...]

GET READY A 65 year old American male in 2018 is expected to live another 19.2 years (to 84.2 years old), an increase of 5 years in the last 40 years. A 65-year old American female in 2018 is expected to live another 21.6 years (to 86.6 years old), an increase of 3 years in the last 40 years. (Source: Social Security Administration) IT JUST DEPENDS Life expectancy at birth varies by as much as 20 years depending upon the country where you are born in the United States. (Source: Dwyer-Lindren … [Read more...]

OVERALL GAIN In spike of tumbling 20.5% on the single trading day of 10/19/18 (31 years ago this week), the S&P 500 gained +5.3% (total return) for the entire 1987 calendar year. The S&P 500 consists of 500 stocks chosen for market size, liquidity and industry group representation. It is a market value weighted index with each stock’s weight in the index proportionate to its value. (Source: BTN Research) JAPAN OUT, CHINA IN In 2008, China’s economy ($4.5 trillion) was smaller than … [Read more...]

BEST EVER If the current US business expansion lasts through July 2019, it will be the longest expansion in the history of the United States at 121 months in length. (Source: National Bureau of Economic Research) MORE THAN JUST WAGES For every $1 spent for wages and salaries in the private sector, employers spend an additional 44 cents on benefits. Average compensation is $23.78 per hour for while the cost of benefits average an additional $10.41 per hour. (Source: Bureau of Labor … [Read more...]

BLANK CHECK An estimated 44.4% of all US individual taxpayers will legally pay zero federal income tax for the tax year 2018 on their Tax Form 1040 that is due 4/15/19. (Source: Tax Policy Center) BONDS There is less outstanding municipal bond debt today ($3.8 trillion) than there was in 2010 ($4.0 trillion). Over the same time period, outstanding Treasury debt has increased +69% to $14.9 trillion. (Source: SIFMA) MORE OUT THAN IN The total cost of the Social Security program in 2018 … [Read more...]

NONE As of the end of 2017, 19% of Millennial's and 12% of Baby Boomers had no money (either pre-tax or post-tax) invested in the stock market. Millennial's were born between 1981-1997 and were ages 20-36 in 2017, while Baby Boomers were born between 1946-1964 and were ages 53-71 in 2017. (Source: Vanguard) BEAR AND BULL Over a painful 6-months from September 2008 through February 2009 (i.e., 9/01/08 to 2/28/09), the S&P 500 lost 41.8% (total return), including a drop of 16.8% in just the … [Read more...]

Join Wealth Distribution Strategies for an educational event on Tax Cuts and Jobs Act (TCJA) Wednesday, November 7th, 2018 at 6:00 p.m. The evening will focus on what changes were made and how this will affect you and your taxes in 2018. Find out how our team can provide proactive strategies in the year ahead. Location: Sheraton Madison, 706 John Nolen Dr. Madison, WI 53713 Cookies & Coffee will be provided.* Contact Ashley or Desiree if you would like to … [Read more...]

EDUCATION The unemployment rate in July 2018 for Americans with at least a bachelor's degree was 2.2%. The unemployment rate in July 2018 for Americans who stopped their education after graduating high school was 4.0%. (Source: Department of Labor) WHAT WE SPEND National Health expenditures were $3.34 trillion in 2016, projected to grow to $5.70 trillion by the year 2026. 37% of the $3.34 trillion are Medicare and Medicaid expenditures. (Source: Centers for Medicare & Medicaid … [Read more...]

Registration is still open for the last class of the year! Join us for our Retirement Planning Today Workshop, a financial education course offered through the Dane County UW-Extension  for adults that are between the ages 50-70. Date: Wednesday, October 10th & 17th, 6:30 p.m. - 9:30 p.m. Location: 5201 Fen Oak Dr. Madison, WI 53718 … [Read more...]

A SMALL NUMBER OF DAYS The total return of the S&P 500 stock index over the last 10 calendar years (2008-2017) is +126.0% (total return). The 10 best trading days during the 10 years (i.e., 10 days out of 2,518 trading days) produced an +97.9% gain. Thus, 10 trading days over the last 10 years were responsible for 78% of the index's total return i.e., less than 1/2 of 1% of the trading days drove 78% of the index's return. The S&P 500 consists of 500 stocks chosen for market size, … [Read more...]

SIGNIFICANT 19% of the US population is currently receiving a monthly benefit payment from Social Security, i.e., 62 million beneficiaries out of 328 million Americans. (Source: Social Security) TOP ONE The top 1% of US taxpayers in tax year 2015 made at least $480,930 of adjusted gross income (AGI), received 21% of all AGI nationwide and paid 39% of all federal income tax. (Source: IRS) OVERSPEND During the first 7 months of 2018 (i.e., 01/01/18 to 07/31/18), the total outstanding debt of … [Read more...]

JUST THREE STOCKS 37% of the S&P 500's YTD performance of +6.5% (total return) through 7/31/18 was driven by just 3 tech stocks in the index. The S&P 500 consists of 500 stocks chosen for market size, liquidity and industry group representation. It is a market value weighted index with each stock's weight proportionate to its market value. (Source: S&P Dow Jones Indices) WE OWE NOTHING 3 out of every 8 homeowners (38%) in the USA own their home free-and-clear of any debt, i.e., … [Read more...]