What You Should Know About Retirement

Jacqueline Runnberg, CFP®, Vice President/Wealth Advisor

Runnberg_2015 (1)For most, retirement is what you save for. It’s an activity that keeps you focused on accumulating assets and making long-term investment decisions. But, it’s hard to know how much to save and if you’ve saved enough. To do that, you need to know what your retirement will look like and when it will begin—things that are different for everyone.

To help you gain clarity, here are some factors to consider as you think about what you want to happen next, after the saving stops.

➢ Be realistic: Age 62 might be a little premature for retirement.
Although the age of 62 is still associated with retirement, if your birthday is between 1943 and 1954, your full retirement age for Social Security purposes is actually 66. The age increases gradually for those born in subsequent years, until it tops out at 67 for those born in 1960 or later.

While you can still initiate benefits at age 62, they will be seriously discounted (between 25% and 32.5%) from your full retirement age benefit for those born after 1942.1

This is why retiring early may not make financial sense—quite a bit of money could be left on the table, unless you’ve saved enough to cover expenses in the early years of your retirement without Social Security benefits.

➢ Think long term: Savings (and benefits) need to last longer than ever before.
According to the Social Security Administration, a man who reaches age 65 can expect to live, on average, until age 84.3. A woman can expect to see age 86.6. But, these are just averages. One-fourth of 65-year-olds will live past 90 and one-tenth can expect to live past 95.2 This means you’ll need a strategy for how your savings can be invested (and withdrawn) in a way that lasts your lifetime, a period that could rival the number of years you spent working.

➢ Rethink expenses: Your retirement spending level may not change as much as you think.
It’s entirely possible your expenses in retirement won’t change so much as what you spend your money on. And, that is likely to keep changing. For instance, in early retirement more of your budget will probably be devoted to entertainment and travel than in the past. If your health needs change, entertainment and travel expenses may fall as home care and medical needs rise.

➢ Sweat the details: It’s what you can’t control that you most need to plan for.
Both inflation and health care costs can seriously impact your financial footing in retirement. Any financial strategies you develop will need to be flexible enough to accommodate these factors. They are also the reason you can’t afford to be a conservative investor—you will need to keep a portion of your assets growing if these factors are to be addressed. You’ll also need a withdrawal strategy that can tolerate the unknowns as well as the knowns.

Retirement Is Another Beginning
Retirement is really more like the last quarter of a game that is likely to see multiple overtimes. That’s why envisioning what your retirement will look like and how you will sustain it over three to four decades is so critical while it’s still early in the game.

This is something our wealth management professionals can assist you with. Working together, we can create a plan that helps ensure what you save over your working life will support the retirement you envision and deserve.

 

1 Social Security Administration website, retrieved November 3, 2015.
2 Social Security Administration website, retrieved November 3, 2015.

Non-deposit investment products are not insured by the FDIC; not a deposit of, or guaranteed by, the bank; may lose value.

Wealth Management Economic Update November 23, 2015

U.S. and World News

  • eiffel_tower_000059158860_320Following the coordinated terrorist attacks in Paris last week, signs are already emerging showing that they have had a large economic impact on one of the most visited cities in the world. Surveys suggest that restaurant sales in Paris have plunged 44% during the past week compared to the same period last year, while hotels have seen a 57% decline in their business. Airlines have also reported that travel to the French capital has plummeted.
  • Minutes from the October Federal Reserve meeting did not reveal anything significant as most participants thought that the conditions for a hike in interest rates “could well be met by the time of the next meeting.” Participants held off from raising rates in October due to worries about weaker than expected reading on labor market measures, though after the positive October jobs reports, these worries may have been alleviated.
  • Japan has slid back into recession after the 3rd quarter showed a -0.8% contraction as consumer spending has remained soft and businesses have cut back on investments. This follows a -0.7% growth rate in the 2nd quarter and marks just the latest setback for Prime Minister Shinzo Abe and his “Abenomics” policies as the country tries to battle deflation and return to growth.

Markets

  • Equity markets bounced back this week, posting their strongest week so far this year. The S&P 500 ended the week up 3.32%, closing at 2,089. Similarly, the Dow Jones increased 3.45% and closed at 17,824. Year to date, the S&P is up 3.37% and the Dow is up 2.24%.
  • Yields in the Treasury markets were little changed this week. The 10 year Treasury bond now yields 2.26% while the 5 year Treasury bond now yields 1.69%.
  • The spot price of WTI Crude Oil fell again this week. Prices decreased by 0.86% closing at $40.39 per barrel. In 2015, WTI Oil prices are down 24.18%.
  • The spot price of Gold decreased this week, losing 0.54% and closing at $1,078.01 per ounce. Year to date, gold prices are down 8.98%.

Economic Data

  • Initial jobless claims came in at 271,000 which was a decrease from the prior week’s figure of 276,000. The Labor Department noted that there were no special factors that affected the claims figure. The four week moving average for claims now stands at 270,750.
  • The Consumer Price Index (measure of inflation) increased by 0.2% in October, in line with expectations. Headline CPI is now up just 0.2% over the last 12 months, thanks to the steep decline in energy prices. Core CPI (excludes food and energy prices) was up 0.2% in October and is now up 1.9% over the last year.

Fact of the Week

  • According to the Social Security Administration, 43% of men and 37% of women take their Social Security retirement benefits at their FRA (full retirement age) or older.

Please contact a member of the Wealth Management Department if you have any questions about this information.

Rich Gartelmann CFP® – (630) 844-5730 rgartelmann@oldsecond.com
Jean Van Keppel CFA® – (630) 906-5489 jvankeppel@oldsecond.com
Brad Johnson CFA®, CFP® – (630) 906-5545 bjohnson@oldsecond.com
Joel Binder, SVP – (630) 844-6767 jbinder@oldsecond.com
Jacqueline Runnberg CFP® – (630) 966-2462 jrunnberg@oldsecond.com
Tamara Wiley, CFP® – (630) 844-3222 twiley@oldsecond.com
Ed Gorenz, VP – (630) 906-5467 ejgorenz@oldsecond.com

Visit Old Second Wealth Management

Non-deposit investment products are not insured by the FDIC; not a deposit of, or guaranteed by, the bank; may lose value.

Wealth Management Economic Update November 16, 2015

U.S. and World News

  • The President of the European Central Bank hinted this week at the possible need for the Eurozone to expand is QE program. This is based on comments that Mario Draghi made in Brussels in which he said that downside economic risks are clearly visible, which may translate to an increase in the ECB’s monetary policy measures at the next policy meeting in December.
  • China has taken another step to boost its yuan currency’s global usage by announcing it will start direct trading with the Swiss franc. The franc marks the 7th major currency outside of the U.S. dollar that can be exchanged directly for the yuan. The announcement comes ahead of an International Monetary Fund meeting this month that will consider the inclusion of the yuan in its Special Drawing Rights Basket, putting it on par with the U.S. dollar, yen, euro and pound sterling in terms of international acceptance.
  • The leaders of the world’s 20 largest economies, known as the G20, are set to meet in Turkey starting on Sunday. Among others, items to be discussed at the global forum include bank regulation, tax cooperation, global growth, the Syrian civil war and the Iranian nuclear deal. G20 countries account for 85% of the world economy, 75% of world trade and 67% of the world’s population.

Markets

  • Equity markets reversed their recent course, heading negative this week. The S&P 500 ended the week down 3.56%, closing at 2,023. Similarly, the Dow Jones decreased 3.64% and closed at 17,245. Year to date, the S&P is up 0.08% and the Dow is down 1.13%.
  • Yields in the Treasury markets moved lower this week after last week’s spike upwards. The 10 year Treasury bond now yields 2.28% while the 5 year Treasury bond now yields 1.67%.
  • The spot price of WTI Crude Oil fell significantly again this week. Prices decreased by 7.97% closing at $40.76 per barrel. In 2015, WTI Oil prices are down 31.44%.
  • The spot price of Gold decreased this week, losing 0.55% and closing at a 52-week low of $1,083.82 per ounce. Year to date, gold prices are down 8.49%.

Economic Data

  • Initial jobless claims came in at 276,000 which was unchanged from the prior week’s figure. The Labor Department noted that there were no special factors that affected the claims figure. The four week moving average for claims now stands at 268,000.
  • Retail sales in October disappointed against consensus expectations, rising just 0.1%. Core retail sales (excluding auto sales) showed a gain of 0.2% in October, also missing estimates.
  • The University of Michigan’s measure of consumer sentiment was stronger than expected in the preliminary November reading at 93.1, an increase from the 90.0 level seen in October. Both consumers’ assessment of current conditions and household expectations of the future increased during the month.

Fact of the Week

  • A large portion of the Friday the 13th superstition can be traced to the 1907 novel by Thomas Lawson, entitled Friday, the Thirteenth. In it, the antagonist, an evil stock broker takes advantage of the public’s fear of the number 13 to crash the market and cause Wall Street panic on Friday the 13th. Despite the negative connotation, the Dow Jones has been positive 66% of the time on these dates. Although it is a different story when the occurrence is in the month of November; the market has fallen 70% of those November occurrences (including today). (Source: Art Cashin)

Please contact a member of the Wealth Management Department if you have any questions about this information.

Rich Gartelmann CFP® – (630) 844-5730 rgartelmann@oldsecond.com
Jean Van Keppel CFA® – (630) 906-5489 jvankeppel@oldsecond.com
Brad Johnson CFA®, CFP® – (630) 906-5545 bjohnson@oldsecond.com
Joel Binder, SVP – (630) 844-6767 jbinder@oldsecond.com
Jacqueline Runnberg CFP® – (630) 966-2462 jrunnberg@oldsecond.com
Tamara Wiley, CFP® – (630) 844-3222 twiley@oldsecond.com
Ed Gorenz, VP – (630) 906-5467 ejgorenz@oldsecond.com

Visit Old Second Wealth Management

Non-deposit investment products are not insured by the FDIC; not a deposit of, or guaranteed by, the bank; may lose value.

Can a Loan Actually Pay You Back?

Ankur Patel, Vice President—Commercial Banking
Roger Schnorr, Senior Vice President—Commercial Banking

Roger Schnorr

Roger Schnorr

Did you know there is a commercial loan structure that may provide borrowers with an opportunity to do more than pay interest to their lender? It can actually help contain a company’s long-term borrowing expense, improve the predictability of cash flow and, potentially, produce a benefit upon repayment—especially in today’s interest rate environment.

The downside is mainly one of terminology. We’re about to drop the word “swap” into this posting.

Yes, Swaps May Be Good for Your Bottom Line
While the word “swap” can cause concern and flashbacks to 2008, the product can be beneficial when used prudently.

An interest rate swap is a hedge against the unpredictability of future interest rate moves. With rates likely to change directions and rise in the near future, incorporating a swap into a loan structure can be advantageous. Here’s why.

Ankur Patel

Ankur Patel

As a commercial borrower, the ideal time to borrow is when rates are low and the best way to borrow is to lock into a long-term, fixed-rate loan. The problem is that as beneficial as this is to a borrower, it is admittedly not such a great deal for the lender. It shifts the interest rate risk entirely to the bank. This is why, traditionally, when rates are low and expected to rise, fixed-rate loans tend to be offered with shorter maturities or the lender’s adjustable-rate products often end up priced more competitively.

However, a more efficient transaction can be created for both sides using an interest rate swap. The bank is happy to lend long term to its commercial borrowers on a floating-rate basis and then—in a separate swap contract—convert that floating-rate loan to a fixed rate. This enables the bank to isolate the interest rate risk of the longer-term loan and manage that risk on its own balance sheet, as it does in its normal course of operations.

As the borrower, this enables you to lock into a lower rate for a longer time period. That makes budgeting and planning much easier. If interest rates do the unexpected and fall, it will not change anything if the loan remains in place until it matures. Once repayment is made as agreed, and on maturity, the swap contract will expire and be worthless.

However, if interest rates rise more than expected during the term of the interest rate swap, the value of the swap could become an asset to the borrower.


A Large-Corporation Strategy for any Community Bank Client

Because Old Second is a community bank, your access to an interest rate swap is as straightforward as your access to any of our commercial loans. This is because all of our commercial clients are served through the same department.

The general qualifications for this type of borrowing also make it easily accessible to many of our commercial borrowers. However, the swap structure is only available for loan amounts greater than $1 million and where a borrowing entity’s net worth is in excess of $1 million (or individual owners have at least $5,000,000 in assets invested on a discretionary basis).

Because swaps can benefit corporate balance sheets, and facilitate cash flow, they represent a valuable alternative for established companies, especially those looking to fund growth.

For more information about whether or not an interest rate swap might be a good option for your company given today’s interest rate environment, give us call.

Old Second salutes our veterans on-staff

In honor of Veteran’s Day, Old Second would like to salute and thank several of our employees who are active or veteran military personnel. Read their bios below.

ALFRED VIDRIO

Alfred Vidrio

Currently I am a Second Lieutenant in charge of second Platoon in Joliet, Gold Company 634th BSB. I have been in the military for over three years. I have been in the Illinois Army National Guard since Aug. 9, 2012. In my entire time with the military, Old Second National Bank has been extremely supportive with me being stationed around the United States. Every time I come back, Old Second welcomes me with open arms and helps me find a position where I can use all my knowledge and military skills. Last year on October 5, 2014, I was activated for military training for several months. When I came back, Old Second welcomed me right away. Every time I have drill Old Second accommodates the dates I need so I can prepare and be there on time. While at Old Second, I have gone through OCS (Officer Candidate School), BOLC (Basic Officer Leadership Course) and a number of Annual Trainings. I feel extremely grateful that Old Second supports the military and does not hesitate to accommodate my military time.

 

TAMMY HANKINS

Tammy Hankins

Tammy Hankins

After graduating High School in 1984 I decided to join the United States Marine Corp.  I didn’t know what I wanted to do with my life, but I knew that I wanted to be self-sufficient and be on my own.  I attended Boot Camp at Parris Island in South Carolina from November 1984 to January 1985. From there, I was stationed at Camp Lejeune in North Carolina while I attended school at Camp Johnson close by.  There I learned the details of the Admin Job I had posted for.  My Military Occupational Specialties (MOS) was 0121 Service Record Book clerk.  I remained at Camp Lejeune doing the various admin tasks assigned to me until a position opened up for someone with my MOS.  In February of 1986 I received orders to be transferred to Marine Corps Air Station Cherry Point, NC where I was assigned to H&HS 28.  My position required that I keep personnel records up to date for the service personnel in my squadron per the Marine Corp standards.  This required much attention to detail and has vastly helped me with the tasks under my responsibility here at Old Second.  While stationed at Cherry Point, I had the privilege and honor of meeting the now retired Commandant, General P.X. Kelly.  I left the service after my term expired in November 1988 as I was a single mother. I served during peace time and was not deployed overseas.  But since I was a single mother, at the time, I greatly appreciated that they allowed me to remain stateside.  I think serving in the Military was one of my greatest experiences.  I learned at a young age what it means to be a team.  When I was hired at Old Second in 1991, my manager told me that my military experience helped her to decide on me for the position.  Hard work, attention to detail and dedication is what I took away from the military and have applied to my position at Old Second.

 

KEITH MCINTOSH

Keith McIntosh

Keith McIntosh

On July 9, 1968, I had the proud honor of enlisting with the United States Air Force and 2 days after, I was in basic training at Lackland Air Force Base in San Antonio, Texas. I was 19 years young and eager to learn and wanted to help my country in any way that I could. After 6 weeks of basic training I was sent to Chanute Air Force Base in Rantoul, Illinois and learned to be a Petroleum, Oils and Lubricants Specialist, or more commonly known as a Fuels Specialist. I drove various ground refueling vehicles used for refueling the various aircraft the Air Force had in their arsenal. After receiving my training I was sent to the 126th Air Refueling Wing located at O’Hare Field in Chicago and remained there for 6 years performing my refueling duties as required in support of air refueling aircraft that flew various missions throughout the United States and into Western Europe. I was a part of the Illinois Air National Guard and periodically was sent to Rhein- Main Air Base in Frankfort, Germany for maneuvers sanctioned by NATO, and supporting all the free countries in Western Europe during the Cold War. If you asked me if I would do it over again, I would say in a heartbeat…  These were some of the best times of my life!

 

HECTOR ESPINO

Espino

Hector Espino

I went to basic training in October of 2011 and graduated in January 2012. I then proceeded to Marine Combat Training for a month. In March I attended Financial Management School in Camp Johnson, North Carolina for my MOS (Military Occupation Specialty) school. In June 2012, I was stationed at Camp Pendleton, California with Combat Logistics Regiment 17, while at CLR-17 I was as an auditor for travel claim and as customer service. In July 2014 I was deployed to Camp Leatherneck in Helmand Province, Afghanistan with Combat Logistics Battalion 1 (CLB-1). While in Afghanistan I was a UPA (Unit Paying Agent) Representative and trainer, in a nutshell I paid out any sort of debt we owed to Afghanistan nationals for causing any accident harm to civilians and/or property. On top of being a UPA agent I was the trainer, I worked with MARSOC (Marine Special Operations Command) and Army special forces as well to teach them all the regulations and the procedures to be a UPA Rep. I came back from Afghanistan in October 2015. I was one of the last Marines out of Camp Leatherneck before we handed over control to the Afghanistan Army. When I came back from Afghanistan I was assigned a special duty of being a member of the Inbound Platoon for CLR-17 now known as Headquarters Regiment 17. The inbound platoon was new program in charge of receiving new Marines into the Marine Corps Fleet and helping them settle into the fleet in regards to any questions with housing or their new way of life. The Marine Corps not only set me up to be able to be successful at Old Second National Bank, but be set for anything to come my way in life after the Corps. I believe Old Second hired me not only for my cash handling experience but just for the fact I was enlisted in the United States Marine Corps and we Marines are known to be professional and give our all to whatever the mission may be.

 

TIMOTHY VAUGHAN

vaughan

Timothy Vaughan

I have been in the US Army Reserves for nearly 27 years, since November 1988.  Prior to that, I was active duty from 1983-1988.  Old Second has supported my participation in the Army Reserve by consistently granting me time off to attend Battle Assemblies (previously known as Drills), Annual Training, Army schools attendance, and for deployments and mobilizations. My annual training ranges year to year from a few days spread out over the year to several weeks in one month.  Army schools attendance has ranged from one week to my culminating leadership training at the Sergeants Major Academy which was 11 months.  I have had 2 deployments, one each to Iraq in mid-2007 to mid-2008 and Afghanistan from mid-2009 to mid-2010.  The bank supported me again when I mobilized in support of overseas operations at Fort Bliss, Texas for just over 3 years from mid-2011 to mid-2014.  I have spent over 6 years on active duty as a reservist out of the last 8 years and have never had to worry about having a job to come home to as Old Second has always honored their pledge to me to return to my same position and salary.  This has helped me to focus on my mission as a Soldier and not having to worry about employment once I return back home. Old Second helped to provide comfort items for the troops that were deployed in support of Operation Iraqi Freedom and Operation Enduring Freedom by having their branches collect toiletries and other items for Project Santa which sent stockings stuffed with these items to units overseas.  I was the recipient of these items during both deployments (picture attached).  In one of the years in which I was not deployed, the bank let me deliver the supplies raised one fall to the group that packed and mailed the items to Soldiers during working hours.  The box truck used was packed with around 1,000 lbs of supplies which provided for well over 500 large stockings for troops overseas (picture attached). As my time left in the Army Reserve is drawing to a close, I look back over the last 26 years plus in which I have been able to perform my duty as a Soldier and have to give credit to Old Second National Bank for allowing me to pursue that passion while being a supported employee.

 

 

Wealth Management Economic Update November 9, 2015

U.S. and World News

  • taiwan_000050798696_320Marking the first talks between the neighbor nations in almost 70 years, the presidents of China (Xi Jinping) and Taiwan (Ma Ying-jeou) will meet in Singapore this weekend. This historic meeting between the two nations is viewed as a breakthrough in the relationship that has been tense since the end of the Chinese civil war in 1949. The two leaders are set to discuss topics such as the Taiwan presidential elections and potential unification.
  • China announced it will lift a four month ban on new stock listings after it has improved relevant policies aimed on making their equity markets operate more efficiently. The ban on IPOs had been imposed in early July following a dramatic decline in the country’s stock market.
  • Greece’s parliament has approved a bill containing the reforms that had been prescribed by the country’s international creditors. This comes ahead of a meeting of Eurozone finance ministers at which they will decide if Greece qualifies for new bailout funds. This was a crucial step for the country towards receiving those funds; however there are still issues that could hold up unlocking them.

Markets

  • Equity markets continued to advance upwards this week. The S&P 500 ended the week up 1.01%, closing at 2,099. Similarly, the Dow Jones increased 1.47% and closed at 17,910. Year to date, the S&P is up 3.74% and the Dow has gained 2.53%.
  • Yields in the Treasury markets moved substantially higher following the much better than expected jobs report that seems to have increased the probability of a December rate increase by the Federal Reserve. The 10 year Treasury bond now yields 2.33% while the 5 year Treasury bond now yields 1.74%.
  • The spot price of WTI Crude Oil fell this week. Prices decreased by 4.44% closing at $44.52 per barrel. In 2015, WTI Oil prices are down 25.11%.
  • The spot price of Gold decreased this week, losing 4.58% and closing at $1,089.80 per ounce. Year to date, gold prices are down 7.98%.

Economic Data

  • Initial jobless claims came in at 276,000 which was an increase from the prior week’s figure of 260,000. The Labor Department noted that there were no special factors that affected the claims figure. The four week moving average for claims now stands at 263,000.
  • The October employment report was better than expected, showing nonfarm payrolls growing by 271,000 which was significantly better than the consensus expectation of 185,000. August and September’s figures were revised up by a total of 12,000 jobs, bringing the three month average of job gains to 187,000.
    • The headline unemployment rate fell from 5.1% to 5.0%, in-line with forecasts. The labor force participation rate was unchanged in October at 62.4%.
    • Average hourly earnings surprised to the upside, showing an increase of 0.4% in October, bringing the year over year growth to 2.5%.

Fact of the Week

  • According to the Boston College Center on Wealth and Philanthropy, heirs of decedents are projected to inherit $36 trillion (after the payment of estate taxes) through the year 2061.

Please contact a member of the Wealth Management Department if you have any questions about this information.

Rich Gartelmann CFP® – (630) 844-5730 rgartelmann@oldsecond.com
Jean Van Keppel CFA® – (630) 906-5489 jvankeppel@oldsecond.com
Brad Johnson CFA®, CFP® – (630) 906-5545 bjohnson@oldsecond.com
Joel Binder, SVP – (630) 844-6767 jbinder@oldsecond.com
Jacqueline Runnberg CFP® – (630) 966-2462 jrunnberg@oldsecond.com
Tamara Wiley, CFP® – (630) 844-3222 twiley@oldsecond.com
Ed Gorenz, VP – (630) 906-5467 ejgorenz@oldsecond.com

Visit Old Second Wealth Management

Non-deposit investment products are not insured by the FDIC; not a deposit of, or guaranteed by, the bank; may lose value.

Wealth Management Economic Update November 2, 2015

U.S. and World News

  • The Federal Reserve chose to take no action on raising interest rates at its October meeting this week. This was the consensus expectation going into this meeting and the focus now shifts to the December meeting for possible ‘liftoff’. The statement following this month’s meeting showed reduced concern about international and stock market developments. It also expressly stated that Fed officials will be considering raising interest rates at the December meeting.
  • The House and Senate have passed a budget deal that would prevent the U.S. from breaching the debt ceiling next week and help avoid a government shutdown in December. The agreement will increase spending by $80 billion above the sequestration caps for military and domestic programs. Those increases would be offset by cuts in spending on Medicare and Social Security. The deal also lifts the debt ceiling through March 2017. The deal will now go to President Obama for final approval.
  • chinese_baby_320In a move aimed at improving growth, China has announced that it will abandon its one-child policy and allow Chinese couples to have two children. The country experienced significant social and demographic issues relating to the 35 year old policy, as China faces an aging population that doesn’t have the workers it needs for its large economy.
  • Despite rising expectations of an increase in stimulus, the Bank of Japan has kept its monetary policy on hold, holding asset purchases steady at ¥80 trillion. The decision comes amidst an output slowdown and declining consumer prices that threaten to push Japan back into deflation, something the BOJ has been fighting for two decades. BOJ Governor Hiroki Kuroda has insisted that Japan’s economy is in the middle of a moderate recovery and that the central bank has done all it can to boost growth.

Markets

  • Equity markets continued to advance upwards this week. The S&P 500 ended the week up 0.22%, closing at 2,079. Similarly, the Dow Jones increased 0.10% and closed at 17,663. Year to date, the S&P is up 2.71% and the Dow has gained 1.05%.
  • Yields in the Treasury markets moved higher this week. The 10 year Treasury bond now yields 2.15% while the 5 year Treasury bond now yields 1.52%.
  • The spot price of WTI Crude Oil rose this week. Prices increased by 4.00% closing at $46.38 per barrel. In 2015, WTI Oil prices are down 21.98%.
  • The spot price of Gold decreased this week, losing 1.92% and closing at $1,142.11 per ounce. Year to date, gold prices are down 3.57%.

Economic Data

  • Initial jobless claims came in at 260,000 which was an increase from the prior week’s figure of 259,000. The Labor Department noted that there were no special factors that affected the claims figure. The four week moving average for claims now stands at 259,000, which is a new low for this economic cycle.
  • The price index for personal consumption expenditures (PCE, measure of inflation) declined by 0.1% in September as was expected given the further drop in energy prices. The Core PCE measure (excluding food and energy) rose 0.15% during the month, bringing the one-year figure to 1.3%, well short of the Federal Reserve’s 2% target.
  • The Employment Cost Index (ECI, measure of wage inflation) increased by 0.6% during the 3rd quarter, in line with expectations. Over the past 12 months, compensation has increased by 2.0%.
  • The first estimate of 3rd quarter GDP showed growth of 1.5%, according to the Commerce Department’s report. The figure reflects solid growth in consumer spending with an offsetting drag from slow inventory accumulation.

Fact of the Week

  • According to the Federal Reserve, as of August 31st the total outstanding credit card debt in the U.S. was $918.5 billion. This translates to an average of $8,004 of credit card debt for every household in the country.

Please contact a member of the Wealth Management Department if you have any questions about this information.

Rich Gartelmann CFP® – (630) 844-5730 rgartelmann@oldsecond.com
Jean Van Keppel CFA® – (630) 906-5489 jvankeppel@oldsecond.com
Brad Johnson CFA®, CFP® – (630) 906-5545 bjohnson@oldsecond.com
Joel Binder, SVP – (630) 844-6767 jbinder@oldsecond.com
Jacqueline Runnberg CFP® – (630) 966-2462 jrunnberg@oldsecond.com
Tamara Wiley, CFP® – (630) 844-3222 twiley@oldsecond.com
Ed Gorenz, VP – (630) 906-5467 ejgorenz@oldsecond.com

Visit Old Second Wealth Management

Non-deposit investment products are not insured by the FDIC; not a deposit of, or guaranteed by, the bank; may lose value.