·
Fed Beige Book implies no change in course…Federal Reserve issued its “beige book” survey today,
which covers past six weeks of economic data it gathers from its 12 regions.
The readings reflect an improving economic outlook.
What’s
the point? The beige book survey is
considered key economic data for investors because it is almost “real time”,
fresh, and comes from a credible source. Today’s beige book release represents
a double dose of good news. First, the data portrays an improving growth across
all Fed regions; and second, growth appears to remain moderate, thereby
reducing pressure on the Fed to accelerate its long-anticipated interest rate
hike process. We would note that it also supports our view for a moderately
improving economy, which is an optimal scenario for the stock market, a “goldilocks”
environment in which growth is not too slow, and not too fast, but “just right”
to support economic growth with low to moderate inflation.
·
CCRCs: Do your homework…..The article in the link below provides an excellent
discussion of pitfalls and factors to be aware of when buying into a senior
living community.
What’s
the point? The aging of the baby
boomers will significantly increase demand for senior living facilities (SLF).
A popular form of SLF currently is known as “continuing care retirement
communities” or CCRCs. This is form of SLF which provides residential alternatives
under one contract that cover client living needs as their level of care
changes. These can be an excellent option for many seniors. We have a number of
clients who have chosen CCRCs as their form of residence. The article points
out a number of factors to consider when contemplating this form of living. A
few of the key points we believe are most important: do a comprehensive due
diligence, which involves understanding the CCRC’s financial condition and the
track record of its operator, talking with current residents, and fully
understanding in what ways one’s deposit can be accessed by the operator. Also
the fee structure for CCRCs differs from one facility to another. Be sure to
understand what all the fees are, such as entrance or buy-in fee, service fees,
monthly fees, and other fees, and how these are charged and under what
conditions the fees can be increased. Annual increases of 3-5% are about the
norm. The process of considering a
senior living facility can be daunting. If one is totally overwhelmed by
the process, consider talking with a financial or senior care advisor who has
experience in helping people transition to this type of living arrangement.
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