When a Loved One Dies
Quote of the Week “If you want to grow old as a pilot, you’ve got to knowwhen to push it and when to back off.” – Chuck Yeager Technical Corner U.S. stocks climbed to fresh record highs after the October jobs report showed that the economy added more jobs than expected despite the negative impact from the GM worker strike and the loss of temporary U.S. Census jobs. On the surface, this report tends to look good. But if you look under the hood, most of the jobs created were in the service sector and especially in the hospitality area, which are generally lower paying jobs. Manufacturing jobs that are higher paying continued to decline. The Federal Reserve cut interest rates for the third time this year and signaled a pause in lowering rates to assess economic conditions. While economic growth has slowed, as the third quarter GDP estimate showed last week (from 2.0% to 1%), the forward looking GDP growth rate as estimated from the software we use is growth slowing to 1% growth in the fourth quarter. This is not good. We will know more in January of next year. Our software has the economy moving into a period of stagflation in this quarter. This is signaled by growth continuing to slow and inflation increasing. This is a time to be cautious. Because inflation is increasing, we will be taking a position in energy soon. We will maintain our other positions as they tend to do well in this type of environment. As the jobs report hinted that the economy is expanding, the economic picture was not all rosy. In fact, consumers looked like the only highlight, with business investments and exports subtracting from third quarter growth. In contrast to consumers, business sentiment has been notably downbeat, reflecting weakness in manufacturing. Also released last week was the IHS Purchasing Managers’ index, a measure of sentiment in the manufacturing sector. It was softer than expected and continued to show signs of contraction in goods production. We see manufacturing as a key pocket of weakness with the tariffs being the primary cause. Just think about it; if you were a manufacturer, would you be planning on expanding production with the uncertainty of what Mr. Trump will do next? The “China Deal” isn’t going to solve the underlying problems of China stealing our technology or China hacking our corporations. All it will represent is China buying more soybeans and pork from U.S. farmers. The damage has already been done to world commerce. Tom’s Thoughts Death of a Family Member Checklist This is not one of the cheeriest of subjects. Realistically, however, it is one that will confront all of us at some time. Accordingly, the following checklist (prepared by Broadridge Investor Communications Solutions, Inc.) may be helpful in attending to those matters that must be addressed when the time arises. Some of the following tasks may have to be completed by the estate’s executor. Initial tasks Within 3 to 9 months after death Within 9 to 12 months after death If your loved one was a veteran, you may be eligible for burial and memorial benefits. Call 1-800-827-1000 to find the nearest VA regional office. Duplicate copies of marriage and birth certificates are available at the county clerk’s office where the marriage and births occurred. Veterans and the next of kin of deceased veterans can submit an online request for separation documents and other service personnel records via eVetRecs, a service available through the National Archives at archives.gov. If there is no one authorized to open your loved one’s safe-deposit box, petition the probate court for an order to open. Do not be hasty when settling your loved one’s estate. Important decisions need to be made regarding distributions, which must be made in compliance with the will and applicable laws. Seek an experienced estate planning attorney for advice. If your family member didn’t already make final arrangements or leave final instructions, go to www.funerals.org for some helpful information about funerals, burials, and memorial services. How Lof Advisors can help Many of the tasks on this checklist involve accessing important documents. Lof Advisors has implemented an electronic document vault service that is complimentary to clients and their families. The service allows us to securely store important client documents and to retrieve them when needed. To find out more give us a call at 520-881-2523.
