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Mecca on Mondays - 7/25/2016

Continuing in partnership with SFG, we proudly publish Mecca on Mondays as a thoughtful weekly news and commentary communication prepared exclusively for active clients and select special invited guests. Relevant and  timely financial topics are designed to help inform and educate while deliberately chosen and personally authored to help promote your future financial security. Issues addressed in these news and commentaries can be further discussed with more personalized strategies. Call 888-363-7147 Ext. 212. 

Feature Article

Mid Year Modifications

It is common. It happens quite often. What is that? At the end of the year, people look back and see that they have not contributed the maximum to their company retirement plans. And there is no way to make up that lost opportunity after teh calendar year ends. Investing to 401k and Simple IRAs must come from payroll deductions.

Don't make that mistake this year. Look at your 6/30 pay stub and see how much you contributed year to date. Tax law allows a maximum $18,000 employee contribution to a 401k. If you are age 50 or over, the max is $24,000.  For a Simple IRA, the max is $12,500 or $15,500 for those age 50 and over this year.

Take advantage of this as our government provides enormous tax advantages to you. First, money you contribute is not subject to income tax for 2016. Next, the earnings on the money you contribute can compound tax deferred until taken out. The power of compound tax deferred earnings is huge. Properly invested - with our help - you may witness growth in your retirement nest egg over time. Finally, if you don't plan for your own retirement, who will? Most firms do not have a traditional defined benefit pension plan. Some believe social security will be negatively altered when ready to collect. Therefore, you are on your own.

After you review your 6/30/16 pay stub and might see that you will fall short of investing the max to your company plan,  make modifications to future payroll deductions now. We can help you analyze the changes necessary. Also, for our active clients, we help design specific investing strategies in the 401k plans.

There is more you can do to prepare your financial future. Make an IRA or Roth IRA investment. Tax law allows $5,500 max contribution or $6,500 if age 50 or over this year. After you max out the 401k, then work on the IRA. Even if you cannot invest $5,500, then invest $2,000 or $2,200 or $1,500. And if you cannot afford to invest lump sum, then start now by investing a portion each paycheck. You have until mid-April 2017 to invest up to the maximum in an IRA or Roth IRA. Based on your income level, IRA contributions may not be tax deductible, but you still benefit from tax deferred compounding of earnings. Again, we will help you. Start doing it now.

Mid year is a great time to make select  modifications to key strategies which can help your future financial security.

Learn About Finances

The fall, 2016 class schedule is coming out. Each class is only one day. There is no long term commitment.

  1. September 13, 6:30 pm - Financial Planning Primer: Class number LPF 0102-001, Harper College
  2. October 15, 9:00 am - Financial Planning Workshop With The Pros: Class number LPF 0001-001, Harper College
  3. October 18, 6:30 pm - Basic Principles Of The Bond And Stock Market: Class number LPF 0101-001, Harper College

To enroll, call 847-925-6300.

If you want details on each class, call our office 888-363-7147, extension 212.

There will be more classes identified soon.

Partnering With Strategic Financial Group, LLC

Partnering with Strategic Financial Group, LLC and heading the SFG Mecca Division, our team will continue to work hard on your behalf to help promote your future financial security. As in the past, I remain your primary contact and financial advisor. I am supported by highly skilled professionals who bring substantial value to you.

Henceforth, please use my new phone number, 1-888-363-7147, extension 212, and email address ramecca@sfgweb.com.

Week In Review With Commentary

Economic indicators continue to paint the same picture; that being our US economy is moving forward at a slow clip. Even so, our recovery progress is far ahead of most global nations, to the extent that the FOMC is talking about raising rates in the future, not lowering.  I can see one rate hike towards the end of the year, but need to examine more economic data. Contrary to some opinions, I don't believe we will fall back into a recession, you will be pleased to hear.

Markets In Review With Commentary

There is a saying about the stock market. It goes something like this: "Sell in May and go away. Come back after Labor Day." Sometimes this strategy works but not other times. So for in 2016, those who stayed in stocks were rewarded. Where do we go from here? As 6/30/16 financial numbers are published by public US corporations, we see that they are not great but not as bad as Wall Street expected. However Wall Street set low targets.  With exceptions, US firms continue to struggle with revenue growth. Global recessions combined with a sluggish US economy are the culprits. Meanwhile intermediate term bonds are reflecting year to date returns between 3% and 6% so far; not bad for six month returns for bonds.

Mecca Moment

Combining the resources of the Mecca Division of Strategic Financial Group with the rest of Strategic, we have successfully negotiated lower transaction fees with TradePMR. Mutual fund transaction fees are reduced 25% to $14.95 per trade. Individual bond transactions are reduced 50% to $25 per trade. Individual stock and ETFs are reduced 50% to $9.95 per trade. And, remember, there are NO commissions.

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You may have the referral call us for an initial chat or we can contact them.

One great way to introduce us to your referral is to share this news and commentary with them. Think of family, neighbors, friends, and fellow co-workers. Have them contact us at 888-363-7147 Ext. 212 to have their email address added to our news and commentary distribution list.

We Feel Strongly About Communication

We believe communication is vital which is why we publish our Mecca On Mondays newsletter weekly. No other financial advisor communicates as often as we do.  We welcome your feedback to anything stated in this newsletter.  Feel free to contact us by calling us at 888-363-7147 Ext. 212.