While planning your giving, have you considered donating stocks and bonds? Donating appreciated securities is an easy and tax-effective way for you to make a gift. You'll avoid paying capital gains tax on the sale of appreciated stock and receive a charitable income tax deduction.
For more information about giving stocks and bonds, visit our website or contact us at913.577.2983 or info@nazarenefoundation.org.
Blessings,
Kenneth R. Roney, J.D.
President
PERSONAL PLANNER
Your Family Letter - Memorial Services
A family letter is a key part of a good estate plan. It is much more personal than many of your estate documents. A family letter allows you to share your heart and show appreciation and gratitude to family members. During a time when family members are grieving, it also helps them to complete many practical steps to protect your property.
The family letter may have up to ten different sections. Each section will cover an important but separate topic.
Estate Data
Your estate organizer usually has four parts. It will explain the family names and key information, identify your attorney, CPA and other financial and health advisors, cover all of your assets and financial information and outline your estate planning choices.
The estate organizer may be printed or you may use an online version. Your family letter should explain where the information is located. If you are using an online estate planner, it's important to know your account name and password so the information will be available.
Important Documents
Your important documents will generally be safeguarded in three different ways. First, many individuals have a safe deposit box. The safe deposit box typically holds birth certificates, death certificates, degrees and other legal agreements, marriage or divorce documents, military discharge records, property deeds, a personal property inventory, stock and bond certificates and vehicle titles.
Second, you may have a fireproof box at home. This box will frequently include your insurance policies, your living will, medical power of attorney or advance directive, trust documents and your will.
Third, there are some items that should be left with your attorney, friend, agent or another trusted person. These are items that may be needed while you are still living or will be necessary very soon after you pass away. These documents (or copies of documents) could include your financial power of attorney, a durable power of attorney for healthcare or advance directive, your living will, trusts and your will.
Accounts and Passwords
Because an increasing number of records and information are retained online in personal accounts, you will want to be certain that your personal letter lists all accounts. You may decide to include passwords with the personal letter. Alternatively, if you are entrusting all of this information to a specific person or other location, that should be identified.
With the rapid movement to online banking, online mutual funds and securities accounts, donor advised fund accounts, health savings accounts and your email accounts, you may have six to 10 accounts with various passwords. It will be important to have all of this information recorded.
Your Family History
While your estate organizer will include basic information about you and your family members, there is an excellent opportunity in your family letter to discuss your family history. This can include a few short paragraphs that give the names and background of your parents. List all of their children or other key relatives in your family. Your history may discuss marriages, divorces and any blended family relationships. Finally, the family history will show the date of death for persons who have passed away.
Family history can include discussions of your activities, interests and career. It enables all of your extended family to have a good picture of your entire life.
Care for Children, Grandchildren or Pets
If you are responsible for any children, grandchildren or pets, this is an opportunity for you to explain your plan for their care. While your estate planning documents will normally appoint guardians for your children or grandchildren who are under your care, it still may be beneficial for the guardian to receive recommendations from you on their education and other areas of development that you understand very well. If someone is to care for pets, you may have recommendations on the way in which that is done.
Memberships
You may have memberships in a number of organizations. Some memberships, such as those in a golf course or in a club that purchases various types of sporting event tickets, are transferable to heirs. It would be helpful to your family for you to list any memberships that you have so they can handle them properly.
Care of Your Body
When you pass away, your body may be in the custody of a medical center or nursing home. If you have previously decided to make any organ donations, it is helpful to explain that decision in your family letter. The requirements for making organ donations are typically covered under state law. In many cases, decisions on organ donations are made when you sign your living will or advance medical directive.
Funeral or Memorial Services
The cost of many funerals now exceeds $10,000. If you would like to assist family members in the decisions surrounding your funeral or memorial service, the family letter is an excellent way to do so.
First, your family will need to decide whether to have a burial in a cemetery with a casket or to use cremation services and an urn. You may have personal or religious reasons for preferring one or the other.
With a casket and burial in a cemetery, your family will generally make use of a funeral home. Because there now is significant competition in the industry, funeral homes are starting to offer advance prices and package services. If you desire a specific range of services, type of casket or prefer not to be embalmed, those directions are helpful to your family.
There are funeral consumers' alliances in many locations. Your family may find assistance and guidance on www.funerals.org. This guidance may help them make good decisions during a very difficult time in the midst of grief over your loss.
If you are a veteran, your family may want to contact the Department of Veterans Affairs. You may qualify for a gravesite at no cost in one of the 130 national cemeteries for veterans and their spouses.
Obituary
In your funeral or memorial service, there will be eulogies. It is also customary to have a printed description of your lifetime. This will frequently include your basic history, awards, achievements, military service and lifetime employment. If you have specific requests for information to be included in the obituary, it is helpful to your family to give them guidance. You may have certain principles or values that are important to you that you would like to share through the obituary. This is an opportunity for you to communicate your values to the public.
Final Words and Blessings for Family
Your family letter may conclude with a word of blessing. It is a tradition in many cultures for the elders to provide a blessing for the next generation. This is frequently done when the elder is still living, but certainly your family letter provides a similar way to bless your children, grandchildren, nephews, nieces and other family members.
Your final words of wisdom and blessing for family members will be of great comfort as they grieve for your loss. It is an appropriate and fitting way to conclude your family letter.
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SAVVY LIVING
How to Protect Your Eyes from Macular Degeneration
Is macular degeneration hereditary? My mother lost her vision from it before she died a few years ago, and now at age 65, I'm worried I may get it. What can you tell me?
Having a parent or sibling with macular degeneration does indeed increase your risk three to four times. The good news is there are things you can do to protect your eyesight and a number of treatments are available if you do happen to get it. Here's what you should know.
What is AMD?
Macular degeneration, also known as age-related macular degeneration (or AMD) is the most common cause of vision loss in people over age 50, affecting about 10 million Americans.
AMD is a progressive eye disease that damages the macula, the part of the eye that allows us to see objects clearly, causing vision loss in the center of your vision. This affects the ability to read, drive, watch television and do routine daily tasks, but it does not cause total blindness.
There are two types of AMD - wet and dry. Dry AMD, which affects about 90% of all people that have it, progresses slowly and painlessly over a period of years. Wet AMD is much more aggressive and can cause severe vision loss in a matter of weeks or months.
Factors that can increase your risk of getting AMD include age (60 and older); smoking; excessive exposure to sunlight, especially if you have light-colored eyes; certain genetic components; a family history of AMD; high blood pressure; obesity; and being Caucasian.
For anyone over the age of 60, it's a smart idea to get your eyes examined by an ophthalmologist every year. They can spot early signs of AMD before vision loss occurs. Early signs may include shadowy areas in your central vision or unusually fuzzy or distorted vision. The Amsler grid at amslergrid.org is a good tool to check your eyes for AMD.
Preventing AMD
While there's currently no cure for AMD, there are some things you can do if you're high risk. One option is to talk to your doctor about taking a daily dose of antioxidant vitamins and minerals known as AREDS - vitamins C and E, plus copper, lutein, zeaxanthin and zinc. Studies by the National Eye Institute have shown that AREDS can reduce the risk by about 25% that dry AMD will progress.
Most drug stores sell these eye supplements in tablet or soft gel form over-the-counter for around $20 to $30, but be aware that not all eye supplements contain the proper formulation. Choose either the PreserVision Eye Vitamin AREDS Formula, PreserVision Eye Vitamin Lutein Formula, PreserVision AREDS2 Formula or ICAPS AREDS. These four options contain the right formula mix.
Other lifestyle adjustments that may help prevent or delay AMD include eating antioxidant-rich foods such as dark green, leafy vegetables, and cold-water fish for their omega-3 fatty acids; protecting your eyes from the sun by wearing UV protective sunglasses; controlling high blood pressure; exercising regularly; and if you smoke, quitting.
Wet AMD Treatments
For wet AMD, there are several effective medications (Lucentis, Avastin and Eylea) available that can stop vision loss and may even restore it. These medications are given by injection into the eye and repeated every month or two, perhaps indefinitely.
Note that each of these three drugs works equally in treating wet AMD, but there's a big cost difference. Avastin costs just $50 per month, compared with $2,000 for the other two. So experts recommend Avastin as the first choice for most people with wet AMD, especially if you don't have supplemental Medicare coverage.
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.
SAVVY LIVING
How to Protect Your Eyes from Macular Degeneration
Is macular degeneration hereditary? My mother lost her vision from it before she died a few years ago, and now at age 65, I'm worried I may get it. What can you tell me?
Having a parent or sibling with macular degeneration does indeed increase your risk three to four times. The good news is there are things you can do to protect your eyesight and a number of treatments are available if you do happen to get it. Here's what you should know.
What is AMD?
Macular degeneration, also known as age-related macular degeneration (or AMD) is the most common cause of vision loss in people over age 50, affecting about 10 million Americans.
AMD is a progressive eye disease that damages the macula, the part of the eye that allows us to see objects clearly, causing vision loss in the center of your vision. This affects the ability to read, drive, watch television and do routine daily tasks, but it does not cause total blindness.
There are two types of AMD - wet and dry. Dry AMD, which affects about 90% of all people that have it, progresses slowly and painlessly over a period of years. Wet AMD is much more aggressive and can cause severe vision loss in a matter of weeks or months.
Factors that can increase your risk of getting AMD include age (60 and older); smoking; excessive exposure to sunlight, especially if you have light-colored eyes; certain genetic components; a family history of AMD; high blood pressure; obesity; and being Caucasian.
For anyone over the age of 60, it's a smart idea to get your eyes examined by an ophthalmologist every year. They can spot early signs of AMD before vision loss occurs. Early signs may include shadowy areas in your central vision or unusually fuzzy or distorted vision. The Amsler grid at amslergrid.org is a good tool to check your eyes for AMD.
Preventing AMD
While there's currently no cure for AMD, there are some things you can do if you're high risk. One option is to talk to your doctor about taking a daily dose of antioxidant vitamins and minerals known as AREDS - vitamins C and E, plus copper, lutein, zeaxanthin and zinc. Studies by the National Eye Institute have shown that AREDS can reduce the risk by about 25% that dry AMD will progress.
Most drug stores sell these eye supplements in tablet or soft gel form over-the-counter for around $20 to $30, but be aware that not all eye supplements contain the proper formulation. Choose either the PreserVision Eye Vitamin AREDS Formula, PreserVision Eye Vitamin Lutein Formula, PreserVision AREDS2 Formula or ICAPS AREDS. These four options contain the right formula mix.
Other lifestyle adjustments that may help prevent or delay AMD include eating antioxidant-rich foods such as dark green, leafy vegetables, and cold-water fish for their omega-3 fatty acids; protecting your eyes from the sun by wearing UV protective sunglasses; controlling high blood pressure; exercising regularly; and if you smoke, quitting.
Wet AMD Treatments
For wet AMD, there are several effective medications (Lucentis, Avastin and Eylea) available that can stop vision loss and may even restore it. These medications are given by injection into the eye and repeated every month or two, perhaps indefinitely.
Note that each of these three drugs works equally in treating wet AMD, but there's a big cost difference. Avastin costs just $50 per month, compared with $2,000 for the other two. So experts recommend Avastin as the first choice for most people with wet AMD, especially if you don't have supplemental Medicare coverage.
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.
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YOUR PLANA God-Honoring Estate Plan
Like so many others, my wife and I found ourselves without a current and viable estate plan in place. Although we had drawn up a pair of wills years before, it was a shock to see how out-dated and inadequate they had become. Our circumstances, finances, and interests had changed; but our wills had not. A last will and testament is supposed to provide instructions to family and friends about who and what was important to the will-maker in life. With time, our estate plan no longer reflected those values. And to just discard our old wills would leave us without a viable estate plan, causing state laws to take over and leaving our assets to be distributed to distant or unintended relatives, or possibly to the state itself. Neither result was what we wanted to leave behind.
So began our journey to develop a God-honoring estate plan that would include our family and the local church, as well as national and international ministries, after we are gone.
In 1985, my wife and I purchased a small family business from my parents. Over the years, the Lord blessed our hard work and commitment to quality products and services. After operating the business for a number of years, we began to realize that we had many employees who depended on us as well as a great deal of corporate responsibilities. It became obvious we needed an estate plan that would deal with the business issues as well as our personal goals.
About that time, we were invited to our first World Challenge in Tacoma, Washington. The effectiveness of the JESUS Film was very impressive. We appreciated how the JESUS Film Harvest Partners teams work with indigenous peoples to identify pastoral and lay leadership, and how they help establish preaching points and organize local churches to disciple new believers. As a result of that invitation to the Tacoma World Challenge, we included the JESUS Film Harvest Partners ministry in our new estate plan.
Some time later, in a more recent World Challenge, my wife and I were struck with the urgency of getting JESUS Film teams and equipment out to the field. We realized we didn't want to wait until we were dead and gone to support this ministry in a more meaningful way. We wanted to be a part of the ministry during our lifetime. So, we decided to make an immediate and significant pledge.
In order to implement this pledge, we engaged the services of the Foundation. With their help, we were able to establish an endowment fund, which will be funded over a five-year period. Each year, 95 percent of the endowment earnings will go the JESUS Film Harvest Partners ministry and the remaining 5 percent will be plowed back into the endowment to help grow the fund.
After we are gone, our estate will be distributed to various ministries through the Foundation in a God-honoring way. We are so impressed with the Foundation and thankful that we can have the joy of giving now and seeing the results because of our endowments. We are confident the ministries that are important to us will keep on receiving income in perpetuity.
YOUR PLANA God-Honoring Estate Plan
Like so many others, my wife and I found ourselves without a current and viable estate plan in place. Although we had drawn up a pair of wills years before, it was a shock to see how out-dated and inadequate they had become. Our circumstances, finances, and interests had changed; but our wills had not. A last will and testament is supposed to provide instructions to family and friends about who and what was important to the will-maker in life. With time, our estate plan no longer reflected those values. And to just discard our old wills would leave us without a viable estate plan, causing state laws to take over and leaving our assets to be distributed to distant or unintended relatives, or possibly to the state itself. Neither result was what we wanted to leave behind.
So began our journey to develop a God-honoring estate plan that would include our family and the local church, as well as national and international ministries, after we are gone.
In 1985, my wife and I purchased a small family business from my parents. Over the years, the Lord blessed our hard work and commitment to quality products and services. After operating the business for a number of years, we began to realize that we had many employees who depended on us as well as a great deal of corporate responsibilities. It became obvious we needed an estate plan that would deal with the business issues as well as our personal goals.
About that time, we were invited to our first World Challenge in Tacoma, Washington. The effectiveness of the JESUS Film was very impressive. We appreciated how the JESUS Film Harvest Partners teams work with indigenous peoples to identify pastoral and lay leadership, and how they help establish preaching points and organize local churches to disciple new believers. As a result of that invitation to the Tacoma World Challenge, we included the JESUS Film Harvest Partners ministry in our new estate plan.
Some time later, in a more recent World Challenge, my wife and I were struck with the urgency of getting JESUS Film teams and equipment out to the field. We realized we didn't want to wait until we were dead and gone to support this ministry in a more meaningful way. We wanted to be a part of the ministry during our lifetime. So, we decided to make an immediate and significant pledge.
In order to implement this pledge, we engaged the services of the Foundation. With their help, we were able to establish an endowment fund, which will be funded over a five-year period. Each year, 95 percent of the endowment earnings will go the JESUS Film Harvest Partners ministry and the remaining 5 percent will be plowed back into the endowment to help grow the fund.
After we are gone, our estate will be distributed to various ministries through the Foundation in a God-honoring way. We are so impressed with the Foundation and thankful that we can have the joy of giving now and seeing the results because of our endowments. We are confident the ministries that are important to us will keep on receiving income in perpetuity.
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WASHINGTON NEWS
Senate Finance Committee Passes Tax Extenders
On a bipartisan vote of 23-3 on July 21, the Senate Finance Committee passed "An Original Bill to Extend Certain Expired Tax Provisions." The tax extenders bill is retroactive to January 1, 2015 and applicable until December 31, 2016. The bill extends 54 tax provisions for a two year period.
Five of the provisions are important to nonprofit organizations and donors.
1. IRA Charitable Rollover - IRA owners over age 70½ may transfer up to $100,000 each year directly from the IRA custodian to qualified charities.
2. Conservation Easements - There are expanded charitable deductions for gifts of conservation easements.
3. Food Inventory Gifts - Apparently wholesome food inventory gifts qualify for an enhanced charitable deduction.
4. Subchapter S Corporation Gifts - Appreciated property gifts from Subchapter S corporations are facilitated by favorable basis rules.
5. Rent Payments by Charitable Subsidiaries - If they are at fair market value, rent payments from subsidiaries of charitable organizations will not cause unrelated business taxable income.
Chairman Hatch (R-UT) expressed a strong preference to pass permanent provisions. However, he acknowledged that it would be difficult "to create more permanence in our tax code system so that individuals, families, and businesses do not have to wonder whether the tax code is going to change from year to year."
Although he prefers permanent tax extenders, Hatch continued, "For the sake of making this markup less contentious and to ensure we can move more quickly to provide much needed relief to taxpayers, I have agreed to defer litigating the issue of permanence until a later time. But, make no mistake, as Chairman of this committee, my goal is to see many of these provisions made permanent."
Chairman Hatch noted that during the markup of the bill he would enforce a fairly strict "germaneness rule" that limited the number of amendments.
Ranking Member Ron Wyden (D-OR) agreed that the bill should go forward but also preferred permanence. Wyden noted, "We need to extend these tax provisions now in order to provide greater certainty and predictability for middle class families and business alike. However as we look beyond next week, it is critical we all recognize and take action to end this stop and go approach to tax policy through extenders."
Editor's Note: The tax extenders bill is expected to be voted on by the full Senate prior to the August recess. The House leadership also prefers permanent extenders, but could very easily decide to pass this bill in September. If the House and Senate pass the bill, the President may sign it by the end of September. This potential timeframe would allow donors and charitable organizations greater opportunity to plan for 2015 IRA charitable rollover gifts.
WASHINGTON NEWS
Senate Finance Committee Passes Tax Extenders
On a bipartisan vote of 23-3 on July 21, the Senate Finance Committee passed "An Original Bill to Extend Certain Expired Tax Provisions." The tax extenders bill is retroactive to January 1, 2015 and applicable until December 31, 2016. The bill extends 54 tax provisions for a two year period.
Five of the provisions are important to nonprofit organizations and donors.
1. IRA Charitable Rollover - IRA owners over age 70½ may transfer up to $100,000 each year directly from the IRA custodian to qualified charities.
2. Conservation Easements - There are expanded charitable deductions for gifts of conservation easements.
3. Food Inventory Gifts - Apparently wholesome food inventory gifts qualify for an enhanced charitable deduction.
4. Subchapter S Corporation Gifts - Appreciated property gifts from Subchapter S corporations are facilitated by favorable basis rules.
5. Rent Payments by Charitable Subsidiaries - If they are at fair market value, rent payments from subsidiaries of charitable organizations will not cause unrelated business taxable income.
Chairman Hatch (R-UT) expressed a strong preference to pass permanent provisions. However, he acknowledged that it would be difficult "to create more permanence in our tax code system so that individuals, families, and businesses do not have to wonder whether the tax code is going to change from year to year."
Although he prefers permanent tax extenders, Hatch continued, "For the sake of making this markup less contentious and to ensure we can move more quickly to provide much needed relief to taxpayers, I have agreed to defer litigating the issue of permanence until a later time. But, make no mistake, as Chairman of this committee, my goal is to see many of these provisions made permanent."
Chairman Hatch noted that during the markup of the bill he would enforce a fairly strict "germaneness rule" that limited the number of amendments.
Ranking Member Ron Wyden (D-OR) agreed that the bill should go forward but also preferred permanence. Wyden noted, "We need to extend these tax provisions now in order to provide greater certainty and predictability for middle class families and business alike. However as we look beyond next week, it is critical we all recognize and take action to end this stop and go approach to tax policy through extenders."
Editor's Note: The tax extenders bill is expected to be voted on by the full Senate prior to the August recess. The House leadership also prefers permanent extenders, but could very easily decide to pass this bill in September. If the House and Senate pass the bill, the President may sign it by the end of September. This potential timeframe would allow donors and charitable organizations greater opportunity to plan for 2015 IRA charitable rollover gifts.
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FINANCES
FINANCES
Stocks - Apple Reports Record Earnings
Apple Reports Record EarningsApple Inc. (AAPL) reported its latest quarterly earnings on Tuesday, July 21. The company reported record third quarter results.
Apple reported net sales of $49.61 billion for the quarter. This represents a significant increase from the same quarter last year when the company reported net sales of $37.43 billion.
"We had an amazing quarter, with iPhone revenue up 59% over last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch," said Tim Cook, Apple's CEO. "The excitement for Apple Music has been incredible and we're looking forward to releasing iOS9, OS X El Capitan and watchOS 2 to customers in the fall."
The company reported quarterly net income of $10.68 billion. This also represents an increase over the comparable quarter last year when Apple reported net income of $7.75 billion. Earnings per share came in at $1.85 per share.
Apple released the Apple Music smartphone app on June 30. Apple music is a streaming music service available for $9.99 per month. Using the app, a smartphone user can listen to any song, album or playlist in the Apple Music catalog. In addition, the app includes access to Apple's Beats 1 radio, which features radio stations created by DJs in Los Angeles, New York and London.
Apple Inc (AAPL) shares ended the week at $124.48, down 4.96% for the week.
Coke Still Looking for a Solution
The Coca-Cola Company (KO) reported its latest quarterly earnings on Wednesday, July 22. The company's earnings were in line with expectations.
The company reported quarterly revenue of $12.16 billion. This represents a slight decrease from the same period last year when Coca-Cola reported revenue of $12.57 billion.
"Our second quarter results were in line with our expectations and mark continued progress toward restoring momentum in our global business," said Muhtar Kent, Chairman and CEO of The Coca-Cola Company. "We are executing against our strategic initiatives and remain focused on driving efficiencies through productivity and making disciplined investment decisions to accelerate growth. While there is more work to do, we remain confident that we have the right plans in place and are committed to leveraging our superior brand portfolio together with our unparalleled global distribution system to continue creating long-term shareowner value."
Coca-Cola reported net income of $3.11 billion for the quarter. This represents an increase from the comparable quarter last year when the company reported net income of $2.60 billion.
Coke offset sluggish soda sales by reducing the size of packaging and increasing prices. In addition, the company received a boost from sales of non-carbonated drinks like bottled water, milk and tea. However, the company still receives 70% of its revenue from soda. The company is still looking for a long-term solution to the drop-off in sales plaguing sugary soft drinks.
The Coca-Cola Company (KO) shares ended the week at $40.44, down 2.2% for the week.
Microsoft Earnings Disappoint Investors
Microsoft Corp. (MSFT) reported its latest quarterly and annual earnings on Wednesday, July 22. Microsoft's earnings disappointed investors after an $8.4 billion charge in the company's mobile phone operation caused a $3.20 billion loss for the quarter.
The company reported quarterly revenue of $22.18 billion and annual revenue of $93.58 billion. The annual revenue represents an increase compared to last year when Microsoft reported revenue of $86.83 billion.
"Our approach to investing in areas where we have differentiation and opportunity is paying off with Surface, Xbox, Bing, Office 365, Azure and Dynamics CRM Online all growing by at least double-digits," said Satya Nadella, CEO at Microsoft. "And the upcoming release of Windows 10 will create new opportunities for Microsoft and our ecosystem."
Microsoft reported a quarterly net loss of $3.20 billion and annual net income of $12.19 billion. The company's annual net income was much higher last year when Microsoft reported net income of $22.07 billion. Earnings per share came in at $1.48 for the year compared with $2.63 last year.
While the company generated a loss for the quarter, tablet sales proved to be a bright spot in Microsoft's latest earnings report. The company's tablet sales jumped 64% during the latest fiscal year. This is during the same period that Apple's iPad sales dropped 22%. So, Microsoft may be finding its niche in a very competitive consumer technology market.
Microsoft Corp. (MSFT) shares ended the week at $45.97, down 1.46% for the week.
The Dow started the week of 7/20 at 18,086 and closed on 7/24 at 17,569. The S&P 500 started the week at 2,127 and ended at 2,080. The NASDAQ started the week at 5,223 and finished at 5,089.
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Bonds - Treasury Yields Fall Slightly
Treasury Yields Fall SlightlyBonds - Treasury Yields Fall Slightly
Treasury prices rose and yields fell slightly this week as investors wait for the Federal Open Market Committee (FOMC) to meet next week. In addition, disappointing news from China and Europe led to limited trading activity.
The FOMC plans to meet next Wednesday, July 29. This will be the final meeting before its September meeting, where some investors believe that the FOMC will announce its first rate hike since the recession began. These investors are looking for language in the minutes for next week's meeting pointing to the Committee's intent to raise rates.
This week the Caixin China Manufacturing Purchasing Manager's Index, a private survey of factory activity, came in at a 15-month low of 48.2. A reading above 50 shows expansion from the previous month and a reading below 50 shows contraction. This reading was much lower than analysts expected and shows that China's economy has yet to regain its momentum despite efforts by the Chinese government to provide a jumpstart.
On Thursday, the Greek parliament voted to support a package of reforms that will be the basis for a new round of debt talks with Greek's creditors. The reforms included privatizing state-owned assets, reforming pensions, reforming Greece's Value Added Tax and imposing spending cuts if Greece fails to meet its target surplus. Over the next month, Greece and its creditors will discuss a $93 billion bailout package to help Greece meet its more immediate debt obligations.
The news regarding the FOMC, China and Greece caused investors to engage in limited trading this week. Early Friday, the 10-year bond yield fell only slightly to 2.26%. The 30-year-bond yield fell to 2.96%. "The market appears to be at a relative standstill for the time being as investors continue to square positions and move to the sidelines, ahead of next week's crucial FOMC meeting decision," said Millan Mulraine, Head of U.S. Strategy at TD Securities.
The 10-year Treasury note yield finished the week of 7/20 at 2.27% while the 30-year Treasury note yield finished the week at 2.97%.
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CDs and Mortgages - Interest Rates Fall
Interest Rates FallCDs and Mortgages - Interest Rates Fall
Freddie Mac released the results of its latest Primary Mortgage Market Survey (PMMS) on Thursday, July 23. The results showed average fixed mortgage rates falling after mixed economic data released this week.
This week, the 30-year fixed rate mortgage averaged 4.04%. This represents a decrease from last week when it averaged 4.09%. One year ago, the 30-year fixed rate mortgage averaged 4.13%.
The 15-year fixed rate mortgage averaged 3.21% this week. This represents a decrease from last week when it averaged 3.25%. Last year at this time, the 15-year fixed rate mortgage averaged 3.26%.
"U.S. Treasury yields dropped following announcements that many blue chip companies' earnings failed to meet expectations," said Sean Becketti, Chief Economist at Freddie Mac. "This drove the 30-year fixed rate mortgage down 5 basis points to 4.04% this week. Housing continues to be the bright spot in the economic recovery. Existing home sales beat market expectations coming in at a seasonally adjusted annual rate of 5.49 million homes. This is up 9.6% from a year ago and the fastest pace since 2007. Also, housing starts jumped 9.8% responding to strong demand in the multifamily market."
The money market fund finished the week of 7/20 at 0.3%. 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.
The Global Church of the Nazarene Foundation
____________________________
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.
The Global Church of the Nazarene Foundation
17001 Prairie Star Parkway, Suite 200
Lenexa, Kansas 66220 United States
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