Clients and potential clients often admit to being uninformed and/or overwhelmed by the myriad of terms and ideas that are thrown around by investment professionals. Here at Propel, we strive to reduce some of that discomfort by answering questions and repeating ideas in different ways to give our clients a chance to understand how these concepts apply to them. As we approach the end of 2019, we are thrilled to have had a recent influx of new clients (lately they have come from Tennessee, Illinois and Florida) who are brand new to investing.

Recently, Bank of America Merrill Lynch published data on cumulative flows (money movement) in equity and fixed income for their retail investor accounts, i.e., accounts not managed by an investment advisor.

In late May 2019, the House passed the Secure (Setting Every Community Up for Retirement Enhancement) Act by a bipartisan majority (417-3). The bill currently awaits passage by the Senate. Many analysts expect it to pass substantially as-is, although there is some squabbling over revised rules for 529 plans (college savings plans). The impetus behind the bill is to help rectify the looming retirement crisis – the majority of Americans are not on track with their retirement savings. One goal of the act is to incentivize employers to put retirement plans in place.

Financial Stability does not have a simple definition in terms of the American household. We polled friends, family and clients to see how they would define it. Most of our responses alluded to having enough money to cover your bills and being able to address emergencies. One response was very direct and simply stated, “Uncommon.” My favorite response was, “when your kids move out of the house.”

Happy New Year! Now is a great time to assess your retirement and savings strategies and plan for the year to come. Keep in mind you can still contribute to an existing traditional IRA, Roth IRA or Coverdell Education IRA for 2018 until April 15th.