Often times, credit unions grow up around a community, or a place of business, and the PSE credit union is no exception. The PSE Credit Union has been around since 1955, and originally started as the “Parma City Employees” Credit Union, and now, anyone can become a member. Many people understand the difference between credit unions and “big banks”, but what is it specifically that sets them apart? At the PSE Credit Union, it’s that they are a not-for-profit business, as opposed to the big banks, which are for profit. Instead of having to appease their shareholders, their goal is to serve their members. In their eyes, what’s best for a bank’s shareholders isn’t always best for the customers – as a credit union, what’s best for their customers their primary goal. This can often translate to better service and member satisfaction. For example, according to the most recent annual American Customer Satisfaction Index, credit unions scored an average of 86% for customer satisfaction, while the average bank score 76%. Credit Unions are also generally able to offer better interest rates – meaning lower interest rates on loans, and higher interest rates on savings. This is because credit unions typically have less overhead than most banks, and don’t have to make a profit to pay shareholders. It’s important for people to be able to trust their financial institutions in these uncertain
Investment Directions - Staycation or Vacation? “Sell in May and go away” is an old maxim for investors. Evidence is mixed on its validity, but given this year’s rally, the temptation now is understandable. Our take: consider taking some profits and rotating into exposures that offer more resilience if volatility returns. Think of it as the investor version of a “staycation” and catch up on chores. With that in mind, our take on the major investor themes for the weeks ahead: U.S. Equities: Reverting to Technology We remain overweight U.S. equities, and one of our favored sectors is technology. Even with strong performance this year, we believe the sector remains appealing. Technology firms tend to have strong balance sheets and enjoy support from longer-term trends, attractive qualities in a late economic cycle. Furthermore, tech stocks have historically fared well through various yield curve regimes. Developed Markets: Europe Poised for Revival? Investors in Europe have had little reason for optimism for some time. But we expect European growth to accelerate this year given solid domestic demand. Valuations look attractive relative to history, although political and trade risks linger. China’s efforts to stimulate its own growth could help export-heavy economies, such as Germany. Emerging Markets: Brazil Waiting on Reform Brazilian assets have underperformed the broad emerging market index this year, despite signs that economic growth
There's no effective treatment for dementia, which affects 50 million people worldwide, but the World Health Organization (WHO) says there's much that can be done to delay or slow the onset and progression of the disease. In May, WHO issued the following recommendations to reduce the risk of dementia globally, and combat cognitive decline: Regular physical exercise Don't use tobacco Drink less alcohol Maintain a healthy blood pressure Eat a healthy diet, particularly Mediterranean foods Avoid dietary supplements such as Vitamins B and E WHO said there are 10 million new cases of dementia every year, and this figure is set to triple by 2050. The disease is a major cause of disability and dependency among older people and "can devastate the lives of affected individuals, their careers and families," the organization said. Although the report stressed that social participation and social support are strongly connected to good health and individual well-being, it said there was insufficient evidence linking social activity with a reduced of risk of dementia. Experts said that the advice issued by WHO was comprehensive and sensible, but some cautioned that the evidence that these steps would reduce dementia risk was not always strong. "Keep on doing the things that we know benefit overall physical and mental health, but understand that the evidence that these steps will reduce dementia risk is not strong," Robert Howard, a professor of old a
by LFG Tax Director, Mark Sipos On May 23rd, 2019, the U.S. House of Representatives voted overwhelmingly in favor of the SECURE Act, which stands for "Setting Every Community Up for Retirement Enhancement." Most of the provisions in the act are designed to make it easier for more people to save for retirement, and for more employers to offer retirement plans for their employees. One notable provision in the bill would essentially end what's known as the "stretch IRA." Under the current law, when a beneficiary inherits an IRA, the beneficiary can choose to have the IRA balance distributed in two ways: either in required minimum distributions based on his or her life expectancy, or during the five years after the original account holder passes. Making maximum use of the IRA's taxdeferred compounding like this is known as a "stretch IRA." Under SECURE, in most instances an inherited IRA would have to be fully distributed within 10 years of the original owner's death, although there are some exceptions. Some additional areas the bill covers are as follows: • The repeal of the maximum age for traditional IRA contributions, which is currently 70½ • An increase of the required minimum distribution age for retirement accounts to 72 (up from 70½) • Allowing long-term part-time workers to participate in 401(k) plans • Increase of the auto-enrollment safe harbor cap to 15% from 10% • Allowing more annuities
by Jim Lineweaver, CFP®, AIF® There’s an old saying you’ve probably heard that says “Sell in May and Go Away.” But is that good advice? What’s the best thing for you and your investments over the historically slower summer months? The phrase “sell in May and go away” is thought to originate from an old English saying, and it turns out it did have some validity, at least from 1950 to around 2013. During that time, the Dow had an average return of only 0.3% during the May to October period, according to Forbes. But, since 2013 there’s good reason to believe that’s no longer the case. For example, the S&P 500 rose nearly 7% from the beginning of May 2017 through the end of October, according to YCharts. The blue-chip index was up 5% during May through October of 2016 as well. Another common myth is the October Effect, which is the perception that stocks tend to decline during the month of October. Most statistics go against the theory. Some investors may be nervous during October because the dates of some large historical market crashes occurred during this month. But fortunately, this seeming concentration of days is not statistically significant. From a historical perspective, October has marked the end of more bear markets than it has acted as the beginning. We try to help all of our clients keep these things in mind when making decisions, and don’t let these myths cloud their judgment.