Daily Commentary

MarketMinder’s View: Beneficiary designation is rarely newsworthy and is, therefore, easy for many investors to overlook. But it is critical, as this frustrating tale of a family struggling to have their deceased relatives’ retirement assets divided according to their wishes illustrates. These people had an estate plan and powers of attorney, but because there appears to have been a simple mishap in beneficiary designation, the assets have sat in limbo for years. Take the lesson here to the bank. If you haven’t reviewed your retirement account beneficiaries, it is a good idea to put it on your “to do” list. That is doubly true if you have had a recent life event like marriage, divorce, death, birth of a child or grandchild. These seemingly minor and simple things can cause major issues if left unattended.

MarketMinder’s View: So this coverage is a bit jumbled, includes several outright errors (it refers to the first quarter several times in the body, but as the title correctly notes, the forecasts are for the second quarter) and is generally unclear. (Sorry if that seems harsh, but we call a spade a spade ‘round here.) This isn’t a survey of “top forecasters” as ranked by some impartial referee, it is a group of professional forecasters the Federal Reserve Bank of Philadelphia surveys each quarter. Some are anonymous. Some named, including around 50 economists whose outlooks frequently dot headlines. The inflation rate they forecast is the annualized quarterly change in the Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) Price Index. So, let us consider the 6% annualized inflation number the headline touts. One, it is headline CPI (the same economists project an average 4.5% annualized PCE price rise in Q2, core CPI and PCE of 3.2% and 3.4%, respectively). The article treats that 6% annualized number as new and earthshattering. But April’s 0.6% m/m CPI annualizes to ~7.4%. So what these economists are forecasting is slower month-over-month CPI in May and June. This is further highlighted by the fact the group’s average inflation rate in Q3 is 3.0% annualized. So it is really just a way of spinning what we already knew (prices were hot in April, largely on oil) in a different manner. Furthermore, we would note: Stocks are well aware of all of this. Again, the economists’ forecasts here are widely covered in headlines. They comprise the consensus stocks pre-price day by day. This really isn’t a shock no matter how you slice and dice it.

MarketMinder’s View: Many folks approaching or in retirement consider relocating. No longer tied down by a job, they might think it finally time to move to their cherished dream destination, get closer to the kids and grandkids or follow friends and find community elsewhere. No matter the reason, however, make sure you know what you are getting into before you up sticks. As this article sagely advises, the grass always seems greener on the other side, and “the focus tends to stay on the positives—better weather, how much you could save, and what kinds of new activities you’ll have available to you. Those upsides can absolutely be true, but they don’t tell the full story of what it’s like to relocate in retirement. Relocating can also bring new costs that could upend your retirement budget if you’re not careful.” With that in mind, be sure you know the nuts-and-bolts expenses about your potential new locale, e.g., the taxes there, travel costs, Medicare Advantage plan provisions, insurance premiums, access to services and local living costs, including for new activities and adventures you plan to undertake. “For example, if you’re someone who enjoys fishing and you plan to retire on a lake or near an ocean, you might decide you want a boat in retirement. But that means you’ll have to pay for the boat itself, gas, maintenance, boat insurance and possibly storage in the winter.” Doing your homework may not be fun, but getting your financial ducks in a row before you go can save you a lot of grief, making your time in any new place that much more enjoyable.