Planned Giving News and Information
July, 2009
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How to Check Your Financial Health For Free
Americans looking to figure out just where they stand financially don't necessarily need to hire a pricey financial planner -- not when there are a slew of no-cost financial planning software models that give you the financial equivalent of a health check-up and a prescription for what to do next.

A caveat though … we're simply talking the basics here. For any complicated personal financial planning moves, like crafting an estate plan, allocating investment assets, or handling an inheritance, using a savvy financial professional is still the best way to go.

Click here for the complete article

Fake Checks
Many consumers don't realize that if they deposit a phony check into their bank account and then draw on those funds, they are liable for the money, even if they've been swindled. Roughly one of every three adults has been approached by someone offering a fake check at one point, the group said. About 2% of those are taken for amounts averaging between $3,000 and $4,000 each.

You, the depositor, are responsible for the money that goes in and out of your account. If you deposit a fake check but don't draw against it, the worst that can happen is that the money temporarily credited to your account will evaporate. But if you use that phony balance, you're responsible for any check or money order you've sent, even if you've been swindled.

Click here for the complete story.

5 Big Financial Changes for Retirees in 2010
Retirees should start getting ready now for major changes next year that will affect their income and health expenses. The precise impact of these changes will vary by individual, so consumers should take stock of their financial situations and plan accordingly. Many economists say inflation will be a serious concern in a few years after the economy recovers, so factor this into plans as well. Here are five things to look out for:

  • No cost-of-living boosts for Social Security
  • Higher Medicare Advantage costs
  • New Roth IRA rules
  • Mandatory retirement plan withdrawals suspended
  • Estate tax changes

For the complete article, click here.

10 Ways to Lower Retirement Costs
For many Americans, the recession means putting dreams on hold: it's tougher to scrape together a house down payment, find a new job, pay off debt, and retire in this economic climate. Some baby boomers are even deferring their retirement indefinitely and may work considerably longer than they originally planned. Still, there are things you can do now that will help you avoid that fate, such as downsizing your retirement expenses. Here are 10 frugal ideas to get you started:

  1. Delay retirement withdrawals this year
  2. Remember to take future distributions
  3. Sign up for Medicare on time
  4. Delay claiming Social Security
  5. Spend taxable accounts first
  6. Avoid investment fees
  7. .Find more affordable housing
  8. Cut transportation costs
  9. Prioritize spending
  10. Comparison shop senior discounts

For the complete article, click here.

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THE ECONOMY: SEVEN INDICATORS - From CNN Money (as of 7/2/09)

The Indicator
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What It's Telling Us
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Next Update
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Consumer Confidence falls on gloomier jobs view July 28
Retail sales 2-month slump is over July 14
Leading Economic Indicators Sharp increase, second month July 20
Manufacturing Activity (ISM) Up for 6th straight month Aug 3
Industrial Production Sinks 1.1% in May July 16
Job Growth Unemployment Reaches 9.5% Aug 6
Inflation (CPI) Price pressures are tame July 15

You can also see the current US Treasury Monthly Economic Data report

Recent Economic News

U.S. May factory orders rise 1.2% - 7/2/09 MarketWatch
Orders for U.S.-made factory goods climbed 1.2% in May on a big jump in orders for transportation equipment, the Commerce Department reported Thursday. The overall orders number was the highest since June 2008. Excluding transportation equipment, new factory orders were up just 0.8% in May. Economists surveyed by MarketWatch were expecting factory orders to rise by 1.3% in May.

U.S. Job Losses Rise in June as Unemployment Reaches 9.5% - 7/2/09 NY Times
The American economy lost 467,000 jobs in June and the unemployment rate edged up to 9.5 percent in a sobering indication that the most painful downturn since the Great Depression has yet to release its hold. The latest monthly snapshot of the nation's job situation, released on Thursday by the Labor Department, reinforced a consensus that high levels of unemployment were likely to remain for many months and perhaps years. That will almost surely increase the difficulties of finding work for millions of jobless people while limiting wages and working hours for those employed. After a May report that showed the pace of deterioration was moderating - with a revised figure of 322,000 net jobs lost for the month - some economists expressed hopes that an economic recovery might finally be emerging. But the June report tempered such visions with the monotony of continued decline. For another month, manufacturing jobs disappeared, dipping by 136,000, while construction jobs shrank by 79,000 and retail by 21,000. Health care remained a rare bright spot, adding 21,000 jobs. The losses for June brought the tally of jobs shed since the beginning of the recession to 6.5 million - a figure equivalent to the net job gains over the previous nine years. According to MarketWatch, economists had expected the unemployment rate to rise to 9.6%. Average hourly earnings were flat at $18.53. Economists had been expecting a 0.2% gain.

Manufacturing index up for 6th straight month - 7/1/09 CNNMoney.com
Manufacturing sector activity rose in June for the sixth straight month, but the index reading still indicates a contraction, a purchasing managers' group said Wednesday. The Tempe, Ariz.-based Institute for Supply Management's (ISM) manufacturing index rose to 44.8 in June, up from 42.8 the previous month. The reading narrowly beat estimates from economists, who expected a jump to 44.6, according to a Briefing.com consensus survey.

U.S. home prices down 18.1% in past year - 6/30/09 MarketWatch
U.S. home prices were down 18.1% in the year ended April, according to the national Case-Shiller home price index released Tuesday. On a month-to-month basis, prices in 20 selected cities fell 0.6% in April, with declines in 11 cities. Still, the overall pace of decline slowed in April.

Consumer confidence falls on gloomier jobs view - 6/30/09 MarketWatch
A reading on U.S. consumer confidence relapsed in June, falling to 49.3 from a slightly downwardly revised 54.8 in May, as worries grew about jobs and the economy, the Conference Board reported Tuesday. Following a large confidence jump in May, consumers grew more pessimistic in June about their present and future. Economists polled by MarketWatch had expected the June result to hit 55.5, continuing recent confidence gains. The present situation index declined to 24.8 in June from 29.7 in May, while the expectations index fell to 65.5 from 71.5.

U.S. Savings Rate at Highest Point in 15 Years - 6/26/09 NY Times
Tax cuts from the stimulus package and increases in Social Security checks lifted personal incomes sharply in May, the government reported on Friday, but it appeared that many people were putting that money away instead of spending it. Although personal spending increased slightly last month, the saving rate climbed to its highest level in 15 years as consumers tried to build a buffer against the threat of job losses and more economic hardships. The personal saving rate, which dipped below zero during the housing boom as Americans tapped home equity loans and other easy lines of credit, rose to 6.9 percent in May, the Commerce Department reported. That was its highest point since December 1993.

Consumer sentiment rises to 70.8 in June - 6/26/09 MarketWatch
U.S. consumer sentiment rose in June, but remained at relatively low levels, according to media reports of a survey released Friday by the University of Michigan and Reuters. The consumer sentiment index rose to 70.8 from 68.7 in May. In mid-June the estimate was 69. Economists were looking for a final June result of 69. The index hit a 28-year low of 55.3 in November, and has averaged 88.2 over the last 10 years. Recent readings show that the weak labor market continues to dampen consumer sentiment.

Incomes surge on one-time stimulus payments - 6/26/09 MarketWatch
U.S. personal incomes jumped 1.4% in May due to one-time $250 payments to Social Security beneficiaries as part of the stimulus program, the Commerce Department reported Friday. Consumer spending rose 0.3% in nominal terms. The results were in line with the consensus of economists surveyed by MarketWatch. With the boost to incomes, the savings rate rose to 6.9%. Excluding the one-time payments, disposable incomes rose 0.2%, the government said. Wages and salaries fell 0.1%. Real consumer spending (adjusted for inflation) rose 0.2%.

U.S. Jobless Claims Rise; G.D.P Revised Upward - 6/25/09 AP in the NY Times
The government said Thursday that the number of people filing first-time jobless benefits rose last week while its revised reading on the first quarter economy was slightly better than expected. On the unemployment front, the Labor Department says new jobless claims rose by 15,000 to a seasonally adjusted 627,000, partly because of layoffs related to the end of the school year. Economists expected a drop to 600,000 claims, according to Thomson Reuters. The number of people continuing to receive unemployment insurance rose by 29,000 to 6.74 million, slightly above analysts' estimates of 6.7 million. The four-week average of claims, which smoothes out fluctuations, was largely unchanged, at 616,750. Economists expect the number of initial unemployment insurance claims, which reflects the level of layoffs, to slowly decline over the coming months as the economy bottoms out. Still, claims remain far above levels associated with a healthy economy. A year ago they were 392,000. On the economy front, the Commerce Department said the economy declined at a 5.5 percent annual pace in the first quarter. The revised reading on gross domestic product shows the economy from January through March did not fall as deeply as the 5.7 percent annualized decline reported a month ago.

U.S. May durable goods orders up 1.8 percent - 6/24/09 Reuters in Forbes.com
New orders for long-lasting U.S. manufactured goods rose by a much stronger-than-expected 1.8 percent in May, Commerce Department data on Wednesday showed, providing further evidence that the battered U.S. economy was finding its feet. Analysts polled by Reuters had forecast durable goods orders would decline 0.6 percent last month. Economists surveyed by MarketWatch were forecasting a 0.5% decline. May's increase, the third gain in 4 months, followed a revised 1.8 percent gain in April, previously reported as a 1.7 percent rise. New orders excluding transportation advanced 1.1 percent last month, compared with a forecast for a 0.4 percent decline, buoyed in part by a 7.7 percent rise in new machinery orders. This was the largest percentage increase in that category since March 2008, the Commerce Department said. Orders excluding defense were 1.4 percent higher, versus a Reuters' poll prediction for a 0.4 percent drop. Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending, jumped 4.8 percent in May, the largest gain since September 2004, when they were up 8.2 percent. May's sharp rise compared with analyst forecasts for a 0.6 percent drop, and followed a revised 2.9 percent fall in April. In one area of particular weakness, orders for motor vehicles and parts dropped 8.1 percent in May, the sharpest fall since August.

U.S. May existing-home sales up 2.4% - 6/23/09 MarketWatch
Falling prices boosted sales of pre-owned homes in May to the highest level since October, the National Association of Realtors estimated Tuesday. Existing-home sales rose 2.4% to a seasonally adjusted annual rate of 4.77 million, the trade group said. Sales have risen in three of the past four months, and are down 3.6% in the past year. The sales increase was less than the 4.85 million rate expected by economists surveyed by MarketWatch. The median sales price fell 16.8% in the past year to $173,000, the third largest year-over-year decline on record. Inventories of unsold homes fell 3.5% to 3.80 million, representing a 9.6-month supply at the May sales pace.

Jobless Numbers Fall, but New Claims Rise - 6/19/09 AP in the NY Times
The total number of people on the unemployment insurance rolls dropped for the first time since early January, the government said on Thursday, while new claims for benefits rose slightly. The report showed that job losses were easing after companies made deep cuts earlier this year. But nearly half of the recipients at the end of last month had exhausted the 26 weeks of benefits provided under the regular state-level programs without finding work, according to Labor Department data. That was a record; the number was about 36 percent in December 2007, when the recession began. The department said the total unemployment insurance rolls fell by 148,000, to 6.69 million, in the week ended June 6, the largest drop in more than seven years. The decrease also breaks a string of 21 consecutive increases in continuing claims, the last 19 of which were records. A decline in continuing claims several weeks ago was later revised higher.

Freddie Mac: Fixed-rate mortgages head lower - 6/18/09 MarketWatch
The national average interest rate on the benchmark 30-year, fixed-rate loan averaged 5.38% in the week ending Thursday, down from last week's 5.59% and the year-ago 6.42%, according to Freddie Mac's weekly survey. The 15-year fixed-rate loan averaged 4.89%, down from the week-ago 5.06% and the year-ago 6.02%. The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 4.97%, compared with 5.17% a week ago and 5.89% a year ago. One-year Treasury-indexed ARMs averaged 4.95% this week, down from last week's 5.04% and the year-ago 5.19%.

Recession losing steam, Conference Board says - 6/18/09 MarketWatch
The U.S. recession is "losing steam" and a slow recovery should begin by the end of the year, the Conference Board said Thursday as it announced that the index of leading economic indicators rose 1.2% in May, the second straight increase. The increase was in line with the MarketWatch consensus forecast of 1.1% increase. Seven of the 10 indicators improved in May, the private research organization said. The leading index is up 1.2% in the past six months, the first increase since April 2007. The coincident index fell 0.2% in May, "but the declines are less intense," said Ken Goldstein, an economist for the organization. U.S. continuing jobless claims fall by 148,000 - 6/18/09 MatketWatch Continuing jobless claims fell by 148,000 to 6.68 million during the week ending June 6, the Labor Department reported Thursday. It was the lowest since May 9. Initial claims, meanwhile, rose by 3,000 to 608,000. The four-week average of continuing claims rose by 2,250 to 6.75 million. The insured unemployment rate -- the proportion of insured workers who are collecting benefits -- fell to 5.0%, down 0.1 percentage point.

Consumer Prices Rose Less Than Expected in May - 6/18/09 Washington Post
Inflation remained subdued last month, the Labor Department said yesterday in a report that supports the view that prices are unlikely to rise significantly so long as the economy is operating well below its potential. The consumer price index rose 0.1 percent, as an increase in gasoline and other energy prices was offset by declines in the prices of food and clothing. An index that excludes volatile food and energy prices also rose 0.1 percent. The modest increase in prices was in line with expectations, following several months in which inflation, though low, has exceeded what economists forecast. Consumer prices inch 0.1% higher in May - 6/17/09 MarketWatch U.S. consumer prices increased a seasonally adjusted 0.1% in May as falling food prices largely offset higher gasoline prices, the Labor Department reported Wednesday. It was the first increase in three months in the consumer price index, which tracks inflation at the retail level. The core CPI -- which excludes often-volatile prices for food and energy -- also rose a seasonally adjusted 0.1% last month. The 0.1% rise in the headline CPI for May was much lower than the 0.3% forecast by economists surveyed by MarketWatch. The consensus on the 0.1% gain in core CPI was on the mark. The CPI has fallen 1.3% in the past year, the sharpest decline in prices since April 1950.

U.S. industrial production slumps 1.1% in May - 6/16/09 MarketWatch
The nation's industrial output tumbled 1.1% in May, led by big drops in motor vehicles, mining and high-technology products, the Federal Reserve reported Tuesday. The decrease was a bit worse than forecasts of a 1% drop. April's output was revised lower, to a decrease of 0.7% from 0.5% reported earlier. Output fell to the lowest level in 11 years in May, and is down 13.4% in the past year, the largest year-over-year decline since 1946. Output has fallen in 16 of the past 17 months since the recession began in December 2007. Industrial production is one of four key indicators used to judge whether the economy is in a recession. None of the four has turned higher, although the rate of decline in all four has eased over the past few months.

Data on Housing and Inflation Top Expectations - 6/16/09 NY Times
Construction of new homes leapt back in May after dropping sharply a month earlier, the government reported on Tuesday, signaling that the housing and construction markets may be hitting a bottom. Housing starts in the United States rose 17.2 percent from April - far exceeding economists' expectations - as construction of single-family homes increased for a third month. Construction of apartment buildings and condominiums rebounded after falling steeply in April. Over all, housing starts in May increased to a seasonally adjusted annual rate of 532,000, an improvement from earlier this year but still down 45.2 percent from the pace of home construction in May a year ago. In another report, the government said that prices received by producers for finished goods rose a smaller-than-expected 0.2 percent in May, hinting that Wall Street's fears of inflation may be exaggerated. Still, energy prices rose the most since January, with gasoline prices up nearly 14 percent for the month. So-called core producer prices, which exclude food and energy costs, fell 0.1 percent, indicating broad pressure on prices because of lower demand across the economy.

Producer prices rise 0.2% in May on energy prices - 6/16/09 MarketWatch
Producer prices rose 0.2% in May, after seasonal adjustments, with higher energy prices offsetting a drop in food prices, the Labor Department reported Tuesday. The core producer price index, which excludes food and energy prices, fell 0.1%. Economists polled by MarketWatch had expected the overall producer price index to rise 0.5% and for the core to gain 0.1%. In the past year the producer price index has dropped 5%, the biggest year-over-year decline since August 1949, the government said. However, the core producer price index has gained 3% over the past year. In April, the producer price index rose 0.3%, while the core rose 0.1%.

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