Today, I'd like to tell you a story of faithfulness, a story of a family who impacted their local church through their giving..
This is a story about a big egg business. Coming out of the military service at the close of the Korean war, Randall decided to put his agriculture degree to work, so he went into the chicken business. Randall and his wife, Janet, put it all on the line. For several years they struggled to make ends meet and finally, during one real desperate business cycle, they decided to turn their chicken business over to God. Janet said they prayed, "Lord, this is your business, do what you will with it." Click here to read the rest of the story.
To learn more about the Church of the Nazarene Foundation, visit our website,www.NazareneFoundation.org. You can also contact us at 913.577.2983 orinfo@nazarenefoundation.org.
Blessings,
Kenneth R. Roney, J.D.
President
PERSONAL PLANNER
Seven Questions on Gifts to Children
Many questions arise when we consider the options for giving to children. Why should we give? When, what and how should we give? Will gifts impact the self-esteem and initiative of the child? Can a gift plan transfer values to children?
These are all very important questions. Clearly there are better ways to give and a prudent parent will consider carefully the manner, nature and amount of gifts. If the gifts are given in a proper way, they can be very beneficial for the child. Alternatively, gifts given at the wrong time or in the wrong amounts can lessen the initiative and even weaken the character of the child. Thus, it is important to make gifts in the optimum manner at the right time.
Why Give to Children?
There are several reasons why you may choose to make gifts to children during life. Some parents wish to start the inheritance process. If they have substantial resources, it is desirable to begin the inheritance while the children are in their 30s, 40s and 50s. Many children can use the help at that time to start careers, purchase a home and assist in the cost of raising their own children.
Another reason for making gifts is to teach conservation. Most parents who have significant resources have been careful to conserve their assets and build them up during life. By making transfers of assets during life, the parents can see how the children handle those assets and, in turn, offer advice and encouragement. In addition, when the parents have the opportunity to see the effect of inheritance on children, it helps to clarify the parents' goals. Goals for inheritance should include the amount transferred during life, the time of transfer, the principal and income amounts and times for transfer of those items to family in the estate.
Starting the property transfer process during life enables parents to understand how to plan for the optimum inheritance for children.
When Should a Parent Start Giving?
There is both an easy answer and a difficult answer to this question. First, parents should start giving to children when they reach the "age of financial responsibility." But what is that age? Some children reach the "age of financial responsibility" at 25, while others might not attain that status at age 75.
Another factor that affects the "when to give" question is the resources of the parent. Many people in our society live to be age 80, 90 or even older. The parents should make certain that they have sufficient assets to provide for long-term care, if that is needed. Some parents may wish to purchase long-term care insurance prior to making gifts to children. Alternatively, other parents of retirement age may determine that they have adequate resources to provide for their long-term care and can make gifts to family members. In making this determination, you will want to consider pensions, Social Security, IRAs and other assets.
If a parent determines that there are sufficient assets and that the children have reached an appropriate age (which in most cases is when children are in their 30s, 40s and 50s), then the parent may choose to start making gifts.
What Should I Give?
In the book The Millionaire Next Door, the authors studied the impact of gifts of cash to children in their 30s and 40s. The essence of their research was that, for most children, gifts of cash are typically spent.
Furthermore, with the exception of elementary school teachers and college professors, children in other professions who received cash gifts actually had less in savings by retirement age than those who received no gifts. Those who received cash gifts not only spent the gifts, but also continued to spend other personal cash and ended up with smaller estates than those who had received no gifts.
If parents are not concerned about whether or not the gift is spent, then the gift of cash is appropriate. However, many parents make gifts to children with the hope that the child will invest and build up some reserve assets. If the hope is that children will invest and begin to build their estates, then gifts of property show much more promise.
For example, many parents hold stock and can transfer shares by gift to the children. Alternatively, some parents hold real property or have created family limited partnerships and can transfer either the real property or the partnership units to children.
If the gifts are less than the annual exclusion amount per parent, per child each year ($14,000 in 2015 and potentially higher in future years), then the gift is not subject to gift tax. It should be noted that the child takes the cost basis of the parent when property is gifted. Thus, if the child were to sell the appreciated stock or land, he or she would have to pay a capital gains tax. Many parents actually look at this as a favorable circumstance, since their intention is for the child to hold the asset. If there is significant appreciation, these parents deem it beneficial since that potential gain could dissuade children from selling the asset, paying the capital gains tax, and spending the money.
How much can be transferred using annual gift exclusions? There are cases in which appreciated stock gifts were held by family members and there was significant value transferred. After a ten-year period, the stock transferred with annual exclusions may be worth several hundred thousand dollars. In one case, the parents used gift exclusions over a period of 30 years and the children held the gifted stock. At the conclusion of that gifting program, the children were all multimillionaires—and all with zero gift or estate tax!
Should I Give Different Amounts?
Most parents will attempt to treat all children equally. From the perspective of the child, the gift is viewed as a representation of the love of the parent. Thus, it seems appropriate in most circumstances for there to be equal transfers to the children.
However, most rules have reasonable and logical exceptions. The two most common exceptions in this area are the special needs trust and a family business. If one child has a disability, the rest of the family understands the need for additional provision for that child through what is commonly called a special needs trust. This is a trust with an independent trustee who has discretion to make distributions to the child, but is not normally required to do so. The special needs trust makes provision for the maximum benefit of the child and could potentially allow some beneficiaries to also receive government benefits.
The other exception to equal treatment for children may occur with a family business. If some children are involved in the business and other children are not, it is desirable to provide a substantial inheritance for all children. However, maintaining business viability may require the transfer of a majority of the business interest to the child that is involved in the business.
In addition, many parents believe that transfer is fair because the efforts of the children in the business have contributed to the overall growth of the business and the overall growth of the parents' estate. These are delicate questions to which parents should give careful thought, but in the case of the special needs trust and the family business, it is common for one child to receive a greater benefit than the other children.
Will My Gift Decrease Motivation and Self-esteem?
This is a concern of all parents. If an estate is substantial, it is a very important issue to consider. Nearly everyone knows of cases where a large inheritance was transferred to an individual and it was spent in very unhealthy ways. Indeed, sometimes the size of the inheritance contributes to tearing down rather than building up the child's character.
Perhaps the best gift most parents and grandparents should consider is education, which can be used during an entire lifetime. Because one competes with other students in the class, education is also a very good character-building exercise.
A second very fine gift that may not involve significant financial resources is help with a career or business. Many businesspeople are able to assist their children in starting careers or businesses through advice and financing. These opportunities are excellent because the child then has the self-esteem derived from building a career or a business of his or her own.
Another strategy is to wait for a reasonable level of maturity. Some parents wait until the children are in their 40s or 50s to start gifting programs. At that time, values are more likely to be established for the children and they are more likely to make productive use of the property.
Why Don't My Children Think Like Me?
This question surely has crossed the mind of nearly all parents. A parent may consider a particular property or asset and say, "If I had that property, this is what I would do with it."
As all parents know, children quite often hold different opinions. They have generally not been tested in as many different circumstances as their parents. The children need "time to learn." When transferring an inheritance to children, parents need to remember that they have quite often acquired that property over 30 or 40 years. The parents had many opportunities to learn the value of thrift, conservation, investment and careful planning.
Children will not learn these principles from a ten-minute discussion with their parents. They will need to learn some of these lessons out in the real world, operating with real money and real property. It is inevitable that some children will make mistakes. However, their parents also made mistakes along the way. This is the educational part of the gift process.
Parents should be willing to provide "opportunity to make mistakes" property to their children. This does not necessarily mean that the property must have enormous value. However, there must be some value to the property. This "opportunity to make mistakes" property can best be gifted during life. After one or two such episodes, the children may suddenly have a greater understanding of some of the values held by the parents.
How Do I Support Charity and Transfer Values to Children?
One goal of parents is to teach values to children. We all hope that our children will be honest, loving, loyal, faithful, true and upright. How do you teach those values? First, values are caught and not taught. Fortunately, many parents have shared the lesson of the importance of family and extended family with the children. The family includes children and, in some cases, nephew, nieces and other relatives. The extended family includes the wider group of individuals who are helped by charities that the parents support.
One especially effective way to teach the principle of helping others is to model that behavior through support of charities that benefit the extended family. Children realize that they are here on Earth not just to acquire the best homes, fastest cars and most exotic vacations, but also to find a sense of purpose and value through assisting others. The extended family example of the parents is one of the best lessons that encourage children to acquire values similar to the parents. This lesson is taught during life both through contribution of time and gifts of cash and property to charity.
In addition, a very effective teaching method is to use planned giving concepts. These planned giving opportunities can provide benefits for children and a remainder to charity. In using these gift plans, the parent teaches the child to consider both the family and the extended family in planning. If major benefit for the extended family can be realized through tax savings, this becomes a particularly powerful lesson.
Gifts to children during life can accomplish many goals and objectives. Parents need to give careful thought to the children's needs and opportunities. If your assets permit, you may have the ability to give children "time to learn," provide them the "opportunity-to-make-mistakes" property and to facilitate the transfer of values. Truly, these objectives make giving during life an important part of your efforts to "help the child become a better person."
SAVVY LIVING
Choosing a Home Blood Pressure Monitor
Can you offer me any tips on choosing a home blood pressure monitor? I just found out I have high blood pressure and my doctor told me I need a monitor for the house so I can keep an eye on it.
Almost everyone with high blood pressure or prehypertension should have a home blood pressure monitor. Home monitoring can help you keep tabs on your blood pressure in a comfortable setting. Also, if you're taking medication, monitoring your blood pressure is the best way to make sure the medication is working and alerts you to a health problem if it arises. Here are some tips to help you choose a good monitor.
Types of Monitors
The two most popular types of home blood pressure monitors on the market today are (electric and/or battery powered) automatic arm monitors and automatic wrist monitors.
With an automatic arm monitor, you simply wrap the cuff around your bicep and with the push of one button the cuff inflates and deflates automatically giving you your blood pressure reading on the display window in a matter of seconds.
Wrist monitors work similarly, except they attach to the wrist. Wrist monitors are also smaller in size and somewhat more comfortable to use than the arm monitors, but they tend to be a little less accurate.
To help you choose the best monitor for you, here are several things you need to consider:
Fit: Using a cuff that is the wrong size can result in a bad reading. Most arm models have two sizes or an adjustable cuff that fits most people. Make sure your choice fits the circumference of your upper arm.
Accuracy: Check the packaging to make sure the monitor has been independently tested and validated for accuracy and reliability. You can see a list of validated monitors atdableducational.org.
Ease of Use: Be sure the monitor has large enough buttons and that the display is easy to read and understand. The directions for applying the cuff and operating the monitor should be clear.
Extra Features: Many monitors come with additional features such as irregular heartbeat detection that checks for arrhythmias and other abnormalities; a risk category indicator that tells you whether your blood pressure is in the high range; a data-averaging function that allows you to take multiple readings and get an overall average; multiple user memory that allows two or more users to save previous readings; and computer connections so you can download the data to your computer.
Portability: If you plan to take your monitor with you while traveling, look for one with a carrying case.
Where to Shop
You can find blood pressure monitors at pharmacies, medical supply stores or online and you don't need a prescription to buy one.
Prices will range from $30 to $120 or more. Unfortunately, original Medicare does not pay for home blood pressure monitors unless you're receiving dialysis at home. However, if you have aMedicare Advantage plan or a private health insurance policy it is worth checking into, because some plans may provide coverage.
Some of the best arm monitors as recently recommended by Consumer Reports include the Rite Aid Deluxe Automatic BP3AR1-4DRITE, iHealth Dock BP3 (requires an Apple iOS device), Omron 10 Series BP786, A&D Medical UA767F and the ReliOn BP200. The top recommended wrist monitor is the Omron 7 Series BP652.
After you buy a monitor it is a good idea to take it to your doctor's office so they can check its accuracy and teach you the proper technique for how and when to use it.
For more information on how to measure your blood pressure accurately at home, see the American Heart Association Blood Pressure Monitoring tutorial page at homeBPmonitoring.org.
Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living” book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization’s official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.
YOUR PLAN
Capital Gains Tax Bypassed
Peter and Gail were nearing retirement. Over the years, with the help of their financial advisor, they made solid investments in securities and built a sizable portfolio. While their investments increased substantially in value, their potential capital gains tax bill was rising. Now with retirement on the horizon, they were looking for a way to sell their highly appreciated stock, generate income for their future and avoid paying high capital gains tax.
Peter: For many years we had supported the work of our favorite charity. Through an e-mail we learned that we could make a gift of our appreciated stock to charity and bypass the potential capital gains tax cost we were facing. I was thrilled to learn that after transferring our portfolio to a charitable remainder trust, the trust would sell the stock tax free.
Gail: I liked the fact that the trust would provide us with income for our retirement years. If something happened to Peter, I would still be taken care of for the remainder of my life.
Peter and Gail decided to make a gift of their appreciated stock to establish a charitable remainder unitrust. They were thrilled at the prospect of creating future income while bypassing capital gains tax.
Peter: When I heard that in addition to the other benefits we would receive a charitable deduction for our gift, it was just icing on the cake! I wondered why everyone nearing retirement doesn't set up a charitable trust.
*Please note: The name and image above is representative of a typical donor and may or may not be an actual donor to our organization. Since your unitrust benefits may be different, you may want to click here to view a color example of your benefits.
WASHINGTON NEWS
Identity Fraud Security Summit
On June 11th IRS Commissioner John Koskinen announced a new partnership between federal, state and private companies to fight stolen identity refund fraud (SIRF). Koskinen noted, “This agreement represents a new era of cooperation and collaboration among the IRS, states and the electronic tax industry that will help combat identity theft and protect taxpayers against tax refund fraud. We have made tremendous progress, and we will continue these efforts. Taxpayers filing their tax returns next season should have a safer and more secure experience.”
The IRS Commissioner had convened an Identity Theft Security Summit on March 19. The result of the discussions by those parties is an agreement with five specific initiatives.
1. Taxpayer Authentication – The transmitting of the tax return, the repetitive use of Internet Protocol (IP) numbers, use of the same computer for multiple returns and other data will be used to authenticate fraudulent claims.
2. Fraud Identification – The IRS, states and commercial venders agreed that there will be sharing of information to identify fraudsters.
3. Information Assessment – The Information Sharing and Assessment Center (ISAC) at the federal level will facilitate efficient coordination between all parties.
4. Cyber Security Framework – The IRS and state entities agreed to follow the National Institute of Standards and Technology (NIST) cyber security guidelines to protect their servers.
5. Taxpayer Awareness – All parties agree to develop educational programs to enable taxpayers to learn more about protecting their personal, tax and financial data.
Senate Finance Committee Chair Orrin Hatch (R-UT) and Ranking Member Ron Wyden (D-OR) welcomed the partnership. They jointly issued a statement and noted, “Today’s action by the IRS is welcome news. Over the past five years, we have seen a significant uptick in tax refund fraud. Fake returns have put victims’ identities at risk and every taxpayer suffers as their hard-earned dollars fall by the wayside and into the hand of fraudsters.”
One of the largest private companies in the tax preparation field is Intuit, Inc. CEO Brad Smith agreed with the Senate leaders and noted, “Today marks an important milestone in a multi-step journey for government and industry to work together to drive fraud out of the U.S. tax system. We applaud this new set of security standards and data protocols that create a strong foundation for deepening the partnership between the IRS, the states and industry.”
Tax Extenders and Western Civilization
On June 10 Sen. Roy Blunt (R-MO) addressed the New Markets Tax Credit Coalition Conference in Washington. He explained that Majority Leader Mitch McConnell (R-KY) does not expect to move forward with a major tax reform act this year.
Blunt stated, “There is not going to be a big tax rewrite with this Congress and this President, so let’s do the things we can. Let’s not have an embarrassing 17-day extension of the tax extenders.” Blunt was referring to the passage of the Tax Increase Prevention Act of 2014 that retroactively extended the tax provisions last year. It was passed in late December and expired 17 days later on December 31, 2014.
Senate Finance Committee Chairman Orrin Hatch (R-UT) also suggested that tax reform was not likely this year. He noted, “We have not seen any bills from the White House or any suggestions on what they want to do on tax reform.” As a result of the current status, Hatch suggested that the House and Senate will not take up tax reform this year.
Because Congress is not likely to move forward with a major tax reform effort, Blunt suggested that “Congress should focus on extenders first.” By moving forward with the tax extenders bill, Blunt believes that businesses and nonprofits will be able to make appropriate plans that will benefit the economy.
Senate Finance Committee Ranking Member Ron Wyden (D-OR) predicted that the calls for passage of tax extenders would grow stronger as the fall approaches. Wyden suggested that those who advocate passage will state, “Whoa, look at those tax reform guys, we will see if they ever produce anything. If we do not get our extenders, Western civilization is going to end.”
Editor’s Note: As the year progresses, the potential for another one-year extension passed late in the year grows. Hopefully, Congress will follow the advice of Sen. Blunt and move forward this summer with a tax extenders bill.
FINANCES
Stocks - Men's Wearhouse Reports Strong Earnings
The Men’s Wearhouse, Inc. (MW) reported its latest quarterly earnings on Wednesday, June 10. The company reported strong earnings and continues to announce initiatives to grow its business.
The company reported quarterly revenue of $885.09 million. This represents an increase from the comparable period last year when Men’s Wearhouse reported revenue of $847.90 million.
“We are very pleased to report another strong quarter with all brands performing well. Comparable salesincreased 6.8% at Men’s Wearhouse, 0.8% at Moore’s and 7.3% at K&G and decreased 1.5% at Jos. A Bank. Traffic increased year over year at all of our U.S. brands and while Moores’ traffic decreased, their average ticket increased. While the retail business has continued to perform well, the tuxedo business slowed this quarter with a decrease in comps of 1.2% at Men’s Wearhouse. Based on recent studies, the overall wedding industry is experiencing a slow-down but we believe that our market share is holding and possibly increasing.”
Men’s Wearhouse reported net income of $10.4 million. This represents a decrease from the same quarter last year when the company reported net income of $16.5 million. Earnings per share came in at $0.21 per share.
This week Men’s Wearhouse announced that it will be the exclusive retailer of the Awearness collection, a special collection of men’s tailored clothing by Kenneth Cole. In addition, the company announced an agreement with Macy’s to operate men’s tuxedo rental shops inside 300 Macy’s stores.
The Men’s Wearhouse, Inc. (MW) shares ended the week at $62.22, up 4.8% for the week.
Restoration Hardware Reports Impressive Results
Restoration Hardware Holdings, Inc. (RH) reported its latest quarterly earnings on Thursday, June 11. The company reported impressive earnings and increased guidance for the year.
The company reported revenue of $422.45 million for the quarter. This represents a significant increase over the comparable period last year when Restoration Hardware reported revenue of $366.25 million.
“RH continues to outperform the home furnishings industry by a wide margin,” said Gary Friedman, Chairman and CEO of Restoration Hardware. “Net revenues exceeded our outlook and increased 15% on top of a 22% increase last year. The business momentum we are experiencing thus far in 2015, coupled with the launch of new business and the opening of four next generation Design Galleries later this year, gives us further confidence in our financial outlook for fiscal 2015.”
Restoration Hardware reported net income of $7.16 million for the quarter. This represents a slight increase from the same period last year when the company reported net income of $7.15 million.
The company increased its guidance for Fiscal 2015. It increased its net income guidance from growth between 25% and 30% to between 30% and 36%. In addition, it increased its revenue growth guidance to growth between 15% and 17%. After its earnings release shares of Restoration Hardware jumped from about $95 per share to $100 per share.
Restoration Hardware Holdings, Inc. (RH) shares ended the week at $96.22, up 4.2% for the week.
Vail Resorts Reports Quarterly Earnings
Vail Resorts, Inc. (MTN) reported its latest quarterly earnings on Monday, June 8. The company reported an increase in both revenue and net income despite a difficult winter season at its Lake Tahoe properties.
The company reported revenue of $579.34 million for the quarter. This represents an increase over the comparable quarter last year when the company reported revenue of $543.05 million.
“We are pleased with our performance in the third quarter of fiscal 2015,” said Rob Katz, CEO of Vail Resorts. “Our results reflect the continued momentum from our growing season pass products, our ability to attract high end destination guests to our collection of resorts and the profitable growth that we are driving across our business. Despite the challenging conditions we experienced in Tahoe throughout the season and in Utah this quarter, we continued to see meaningful growth across the business and we are pleased to reaffirm our previously released commentary from April 24, 2015 on our fiscal 2015 guidance range which excluded any impact from the Perisher acquisition.”
Vail Resorts reported quarterly net income of $133.40 million. This represents an increase over the same quarter last year when the company reported net income of $117.95 million.
On March 30, 2015, Vail Resorts announced that it will be acquiring its first international mountain resort, the Perisher Ski Resort in New South Wales, Australia for $176.6 million. Perisher is the largest and most visited ski resort in Australia.
Vail Resorts, Inc. (MTN) shares ended the week at $105.89, up 2.7% for the week.
The Dow started the week of 6/8 at 17,849 and closed at 17,899 on 6/12. The S&P 500 started the week at 2,092 and closed at 2,094. The NASDAQ started the week at 5,067 and closed at 5,051.
Bonds - Treasury Prices Rise After Auction
The company reported quarterly revenue of $885.09 million. This represents an increase from the comparable period last year when Men’s Wearhouse reported revenue of $847.90 million.
“We are very pleased to report another strong quarter with all brands performing well. Comparable salesincreased 6.8% at Men’s Wearhouse, 0.8% at Moore’s and 7.3% at K&G and decreased 1.5% at Jos. A Bank. Traffic increased year over year at all of our U.S. brands and while Moores’ traffic decreased, their average ticket increased. While the retail business has continued to perform well, the tuxedo business slowed this quarter with a decrease in comps of 1.2% at Men’s Wearhouse. Based on recent studies, the overall wedding industry is experiencing a slow-down but we believe that our market share is holding and possibly increasing.”
Men’s Wearhouse reported net income of $10.4 million. This represents a decrease from the same quarter last year when the company reported net income of $16.5 million. Earnings per share came in at $0.21 per share.
This week Men’s Wearhouse announced that it will be the exclusive retailer of the Awearness collection, a special collection of men’s tailored clothing by Kenneth Cole. In addition, the company announced an agreement with Macy’s to operate men’s tuxedo rental shops inside 300 Macy’s stores.
The Men’s Wearhouse, Inc. (MW) shares ended the week at $62.22, up 4.8% for the week.
Restoration Hardware Reports Impressive Results
Restoration Hardware Holdings, Inc. (RH) reported its latest quarterly earnings on Thursday, June 11. The company reported impressive earnings and increased guidance for the year.
The company reported revenue of $422.45 million for the quarter. This represents a significant increase over the comparable period last year when Restoration Hardware reported revenue of $366.25 million.
“RH continues to outperform the home furnishings industry by a wide margin,” said Gary Friedman, Chairman and CEO of Restoration Hardware. “Net revenues exceeded our outlook and increased 15% on top of a 22% increase last year. The business momentum we are experiencing thus far in 2015, coupled with the launch of new business and the opening of four next generation Design Galleries later this year, gives us further confidence in our financial outlook for fiscal 2015.”
Restoration Hardware reported net income of $7.16 million for the quarter. This represents a slight increase from the same period last year when the company reported net income of $7.15 million.
The company increased its guidance for Fiscal 2015. It increased its net income guidance from growth between 25% and 30% to between 30% and 36%. In addition, it increased its revenue growth guidance to growth between 15% and 17%. After its earnings release shares of Restoration Hardware jumped from about $95 per share to $100 per share.
Restoration Hardware Holdings, Inc. (RH) shares ended the week at $96.22, up 4.2% for the week.
Vail Resorts Reports Quarterly Earnings
Vail Resorts, Inc. (MTN) reported its latest quarterly earnings on Monday, June 8. The company reported an increase in both revenue and net income despite a difficult winter season at its Lake Tahoe properties.
The company reported revenue of $579.34 million for the quarter. This represents an increase over the comparable quarter last year when the company reported revenue of $543.05 million.
“We are pleased with our performance in the third quarter of fiscal 2015,” said Rob Katz, CEO of Vail Resorts. “Our results reflect the continued momentum from our growing season pass products, our ability to attract high end destination guests to our collection of resorts and the profitable growth that we are driving across our business. Despite the challenging conditions we experienced in Tahoe throughout the season and in Utah this quarter, we continued to see meaningful growth across the business and we are pleased to reaffirm our previously released commentary from April 24, 2015 on our fiscal 2015 guidance range which excluded any impact from the Perisher acquisition.”
Vail Resorts reported quarterly net income of $133.40 million. This represents an increase over the same quarter last year when the company reported net income of $117.95 million.
On March 30, 2015, Vail Resorts announced that it will be acquiring its first international mountain resort, the Perisher Ski Resort in New South Wales, Australia for $176.6 million. Perisher is the largest and most visited ski resort in Australia.
Vail Resorts, Inc. (MTN) shares ended the week at $105.89, up 2.7% for the week.
The Dow started the week of 6/8 at 17,849 and closed at 17,899 on 6/12. The S&P 500 started the week at 2,092 and closed at 2,094. The NASDAQ started the week at 5,067 and closed at 5,051.
Bonds - Treasury Prices Rise After Auction
Treasury prices rose this week and yields fell as the U.S. government’s auction of 30-year bonds drew strong demand and there was a setback in the negotiations over Greece’s debt. In contrast, inflation gained more than expected in May causing some investors to pull out of bonds.
On Thursday, the U.S. Treasury Department auctioned $13 billion in 30-year bonds at a yield of 3.138%. This is the highest yield since December 2014 and the demand at auction was also the strongest it has been since December 2014. The same day, the 10-year Treasury note yield fell from 2.47% to 2.38%, the largest drop in one day since March 18. Treasury prices rise as yields fall.
In addition, the International Monetary Fund announced on Thursday that it halted negotiations with Greece over repayment of the country’s debt to creditors. The possibility of Greece defaulting on its obligations caused investors in European markets to look for safer assets, including U.S. Treasury bonds.
On the other hand, bond prices fell in early trading after inflation at the wholesale level came in higher than expected. A 0.5% rise in the producer-price index was reported for May. Rising inflation threatens bond value over time.
In early Friday trading, the 10-year Treasury note yield fell as low as 2.34%. The 30-year yield fell to 3.09%.
Adding to this mix is the constant specter of increasing interest rates. The Commerce Department released a report Thursday that showed retail sales increased 1.2% last month. This was ahead of expectations that retail sales would increase 1.1%. As a result, many investors are speculating that the Federal Reserve may raise interest rates as early as September of this year.
The 10-year Treasury note yield finished the week of 6/8 at 2.39% while the 30-year Treasury note yield finished the week at 3.10%.
CDs and Mortgages - Interest Rates Climb to 2015 Highs
Freddie Mac released the results of its latest Primary Mortgage Market Survey (PMMS) on Thursday, June 11. The results showed average fixed mortgage rates climbing to their highest levels of the year.On Thursday, the U.S. Treasury Department auctioned $13 billion in 30-year bonds at a yield of 3.138%. This is the highest yield since December 2014 and the demand at auction was also the strongest it has been since December 2014. The same day, the 10-year Treasury note yield fell from 2.47% to 2.38%, the largest drop in one day since March 18. Treasury prices rise as yields fall.
In addition, the International Monetary Fund announced on Thursday that it halted negotiations with Greece over repayment of the country’s debt to creditors. The possibility of Greece defaulting on its obligations caused investors in European markets to look for safer assets, including U.S. Treasury bonds.
On the other hand, bond prices fell in early trading after inflation at the wholesale level came in higher than expected. A 0.5% rise in the producer-price index was reported for May. Rising inflation threatens bond value over time.
In early Friday trading, the 10-year Treasury note yield fell as low as 2.34%. The 30-year yield fell to 3.09%.
Adding to this mix is the constant specter of increasing interest rates. The Commerce Department released a report Thursday that showed retail sales increased 1.2% last month. This was ahead of expectations that retail sales would increase 1.1%. As a result, many investors are speculating that the Federal Reserve may raise interest rates as early as September of this year.
The 10-year Treasury note yield finished the week of 6/8 at 2.39% while the 30-year Treasury note yield finished the week at 3.10%.
CDs and Mortgages - Interest Rates Climb to 2015 Highs
The 30-year fixed rate mortgage averaged 4.04% this week. This is a significant increase from last week when it averaged 3.87%. One year ago at this time, the 30-year fixed rate mortgage averaged 4.20%.
This week, the 15-year fixed rate mortgage averaged 3.25%. This represents an increase from last week when it averaged 3.08%. This time last year the 15-year fixed rate mortgage averaged 3.31%.
“Mortgage rates rose above 4% for the first time since November 2014 as Treasury yields surged,” said Len Kiefer, Deputy Chief Economist at Freddie Mac. “Markets are responding to strong employment data. In May, the U.S. economy added 280,000 jobs. Moreover, job openings surged to 5.4 million in April, up over 20% from a year ago.”
The money market fund finished the week of 6/8 at 0.4%. The 1-year CD finished at 0.6%.
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Are you a Nazarene Legacy Partner (NLP)? The answer is “YES” if you have designated any gift to a Nazarene ministry in your will, bequest, or estate plan. This could be a tithe on your estate, an insurance beneficiary designation to your local church, college, global mission, or any other Nazarene ministry you support.
Send us your name and contact information by reply email and indicate “I am a Nazarene Legacy Partner” and we will add your name to our NLP honor roll. To model generosity inspires others to do the same. Thank you for your interest in gift planning. To access any of this updated financial and gift planning information, please select our website.
Global Church of the Nazarene Foundation
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Are you a Nazarene Legacy Partner (NLP)? The answer is “YES” if you have designated any gift to a Nazarene ministry in your will, bequest, or estate plan. This could be a tithe on your estate, an insurance beneficiary designation to your local church, college, global mission, or any other Nazarene ministry you support.
Send us your name and contact information by reply email and indicate “I am a Nazarene Legacy Partner” and we will add your name to our NLP honor roll. To model generosity inspires others to do the same. Thank you for your interest in gift planning. To access any of this updated financial and gift planning information, please select our website.
Global Church of the Nazarene Foundation
17001 Prairie Star Parkway, Suite 200
Lenexa, Kansas 66220 United States
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