Welcome to Viewpoints, a monthly bulletin from PDS Planning to our valued clients and friends. Our goal with each issue of Viewpoints is to provide you with a wide variety of perspectives on life and wealth. Feel free to share with others.
Economic and Investment News Bits
- Gridlock is Good?: Over the last 80 years, the best stock market returns have occurred when different parties controlled the two houses of Congress. The best S&P 500 returns under a Republican president occurred while Congress was split (as it now is) with +12% annual returns. (Sources: CNBC, Bank of America Merrill Lynch)
- Thanksgiving Travel: 54.3 million Americans will drive 50 miles or more away from home this Thanksgiving, a 4.8% increase over last year and the highest volume of drivers since 2005. A record-breaking 30.6 million airline passengers are expected to travel within the 12-day Thanksgiving air travel period. (Source: MarketWatch, AAA)
- Baby Boomers: Currently, approximately 10,000 Americans turn 65 each day. Within the next 10 years, the number of Baby Boomers turning 65 each day will peak around 12,000 people. By 2030, all Baby Boomers will be older than 65. (Source: Yahoo! Finance)
- Senior Citizens: In 2017, 15% of the U.S. population was at least age 65. By 2030, this is expected to increase to 20% (an increase of 44% in the number of Americans aged 65+ while the overall population is forecasted to increase just 11%). (Source: Social Security Administration)
- OPERS Lowers Investment Assumptions (again): The Ohio Public Employees’ Retirement System (OPERS) is lowering its assumed rate of return from 7.5% to 7.2% (following a reduction of 8.0% to 7.5% in 2016). (Source: OPERS)
- Start Saving Now: For 2018’s newborns, a 4-year degree from a private university is estimated to cost a whopping $302,700 in 2036 (up from $166,800 today). Assuming a 4% annual return over 18 years, to fully fund their education, $980 per month would need to be saved. Four-year public universities are expected to cost $183,600 in 2036 (up from $101,200 today) which would require $580 in monthly savings earning 4% per year to fully fund. (Source: MarketWatch)
Thought for the Month
“My motto is ‘Excelsior’. That’s an old word that means ‘upward and onward to greater glory.’ Keep moving forward, and if it’s time to go, it’s time. Nothing lasts forever.”
– Stan Lee, American comic book writer, editor, and publisher (1922-2018)
Commentary – Thanksbuying
Many of us have fond Thanksgiving memories with too much food (and sometimes too much family). From the leftover turkey that lasts for days to the numerous side dishes and pies, Thanksgiving is widely associated with overindulging. Many people view the weekend after Thanksgiving as the ideal time to shop, both for holiday gifts for others, as well as, the latest gadgets and gizmos for themselves.
While we all aspire to follow the mantra “Don’t buy stuff you don’t need”, most of us will discover irresistible holiday deals that allow us to “save” money. Shopping online, we can now research products, compare prices, and make purchases from home more easily than ever. A few resources you can use to find deals and ensure you receive the best possible price are:
- SlickDeals.net: User-posted deals, coupon codes, etc.
- JoinHoney.com: An internet browser add-on, researches and applies coupon codes to your order at many online retailers
- CamelCamelCamel.com: For Amazon only, compares historical prices, can set deal alerts for when a product reaches your set target price
Chart for the Month – The Billion-Dollar Holiday
Thanksgiving has traditionally been a time to cherish the blessings of the year and to enjoy time with family and friends while overeating. Many also spend the holiday weekend shopping, both in stores and online. This year’s Thanksgiving weekend is expected to shatter online shopping records with total e-commerce sales forecast at $23.4 billion. Cyber Monday is expected to become the largest online shopping day in U.S. history…at least until next year.
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment, strategy, or product or any non-investment related content, made reference to directly or indirectly in this newsletter, will be suitable for your individual situation, or prove successful. This material is distributed by PDS Planning, Inc. and is for information purposes only. Although information has been obtained from and is based upon sources PDS Planning believes to be reliable, we do not guarantee its accuracy. It is provided with the understanding that no fiduciary relationship exists because of this report. Opinions expressed in this report are not necessarily the opinions of PDS Planning and are subject to change without notice. PDS Planning assumes no liability for the interpretation or use of this report. Consultation with a qualified investment advisor is recommended prior to executing any investment strategy. No portion of this publication should be construed as legal or accounting advice. If you are a client of PDS Planning, please remember to contact PDS Planning, Inc., in writing, if there are any changes in your personal/financial situation or investment objectives. All rights reserved.