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Bill’s By The Number$

Posted by: Kim Vo | Posted on: April 17th, 2017 | 0 Comments

1. AT THE END – The S&P 500 gained +8.3% (change of the raw index not counting the impact of reinvested dividends) over the final 6 months of the 5-year bull market that ended on 10/09/07. The S&P 500 gained +19.6% over the final 6 months of the 9 ½ year bull market that ended on 3/24/00. The S&P 500 gained +12.9% over the final month of the 9 ½ year bull market that ended on 3/24/00. The S&P 500 consists of 500 stocks chosen for market size, liquidity and industry group representation. It is a market value weighted index with each stock’s weight in the index proportionate to its market value (source: BTN Research).

2. BEARS FOLLOW BULLS – The average decline for the S&P 500 during the 11 bear markets that have taken place since the end of World War II is 34% (source: BTN Research).

3. HARDER TO CATCH UP – A 30-year old employee that invests $500 at the beginning of every month in a tax-deferred 401(k) account will accumulate $588,032 by age 60 if the funds grow at +7% per year. If that individual was forced to suspend his/her monthly deferral for just 5 years from ages 35-39, he/she would have to earn +8.8% per year from ages 40-60 in order to accumulate $588,032 by age 60. This mathematical calculation ignores the ultimate impact of taxes on the account which are due upon withdrawal, is for illustrative purposes only and is not intended to reflect any specific investment or performance. Actual results will fluctuate with market conditions and will vary (source: BTN Research).

4. HALFWAY THROUGH THE YEAR – The USA’s budget deficit for the first 6 months of fiscal year 2017 (i.e., the 6 months ending 3/31/17) was $527 billion (source: Treasury Department).

5. TAX DATA – The top one-tenth of 1% of US taxpayers (based upon adjusted gross income) paid more federal income tax ($273 billion) during tax year 2014 (the latest year that tax information has been released) than the federal income tax paid ($182 billion) by the bottom 75% of taxpayers, i.e., the top taxpayer out of 1,000 average taxpayers pays more in federal income tax than the bottom 750 taxpayers (source: Internal Revenue Service).

6. DOLLAR CUT-OFFS – For tax year 2014 (the latest year that tax data has been released), it took $465,626 of adjusted gross income (AGI) to rank in the top 1% of taxpayers, $188,996 of AGI to rank in the top 5%, $133,445 of AGI to rank in the top 10%, and $77,714 of AGI to rank in the top 25% (source: IRS).

7. JOBS, JOBS, JOBS – Each one-tenth of one percentage point increase in our GDP (e.g., 2% growth to 2.1%) due to a rise in manufactured goods translates into +80,000 new American jobs (source: Commerce Department).

8. PUT IT ON THE CARD – Credit card debt in the USA was $1.00036 trillion (i.e., $1 trillion, $360 million) as of February 2017, the highest level nationwide since January 2009 (source: Federal Reserve).

9. COLLEGE DEBT BUBBLE – Of the 44 million Americans that have accumulated $1.31 trillion of student loans, just 16% (of the 44 million) have at least $50,000 of debt each but collectively this group has incurred 56% of the $1.31 trillion of student debt (source: New York Federal Reserve).

10. HIGH AND LOW – Of metropolitan areas with populations of at least 1 million, Salt Lake City (3.0%) has the lowest unemployment rate nationwide while Cleveland (6.6%) has the highest (source: Department of Labor).

11. PROCRASTINATORS – Congressional action that was taken on 12/09/16 avoided our nation’s 13th government shutdown since 1980. The agreement bought Congress 20 additional weeks, i.e., to midnight on Friday 4/28/17. Congress started a 2-week recess on Friday 4/07/17 and will not return until Monday 4/24/17, giving lawmakers just 5 days to agree on fiscal year 2017 spending levels (source: Congress).

12. OWE ZERO – 2 of every 5 homeowners (41%) between the ages of 65-74 and 3 of every 5 homeowners (63%) at least age 75 own their home free and clear of debt (source: Center for Retirement Research at Boston College).

13. RETIRE HERE – Social Security benefits are taxed by just 13 US states, i.e., 37 states do not count monthly Social Security benefits as taxable income at the state level (source: Internal Revenue Service).

14. PLEASE STAY – Connecticut lawmakers are considering a state bill that would provide a state income tax credit that averages $1,200 to students who stay in the state to work following their graduation from a Connecticut college with an associate’s, bachelor’s, master’s or doctoral degree after January 2018 (source: Hartford Courant).

15. HE FINALLY DID IT – Sergio Garcia, 37-year old Spaniard, had played in 73 professional golf majors before winning the Masters on Sunday 4/09/17. Garcia had 22 previous top-10 finishes in golf’s majors before beating Britain’s Justin Rose in a sudden death playoff following their tie after 72 holes (source: BTN Research).

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