The trade dispute with Mexico has been avoided and the markets are reacting very positively, despite lots of economic data slowing a upcoming slow down. Case in point was the May 2019 jobs report that you can read more about by viewing this week’s Weekly Market Review. Please also note the ”Thought of the Week” and corresponding “Chart of the Week” in the Weekly Market Recap provided by JP Morgan. Our team believes it is a good time to make sure you are not over exposed to risk. We have some great tools to help you better understand your portfolio's risk and your level of comfort in general with risk assets/investments. Certainly a large gap between the two should be discussed and potentially reconciled.
Notable Number 1 in the Weekly Market Review digs in on the Medicare taxes you pay while working and compares that to the Medicare benefits you are projected to receive over your retirement. It is interesting research, but do you know what your monthly Medicare Part B cost will be? It could vary greatly and in 2019 cost between $135 and $460 per month. The large variance in cost is based on your income…more accurately your income from two tax years ago. Yes, that is right, your 2019 Medicare Part B cost is based on your 2017 taxable income. For folks whose income declines significantly when they retire, this can create a cash flow challenge in those first couple of years in retirement. Certainly, it is something that should be understood and planned for. Please let our team know if you’d like any educational resources on this issue.
Have a great week.
Trevor N. Coe, CFP®