Hagen Financial Network, Inc.: Medicare supplement insurance

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Monday, March 14, 2016

Stim-u-late mar-kets! Come on! It’s monetary easing. That and more in today's PEEK of the WEEK financial newsletter

Peek of the Week

March 14, 2016

The Markets

Stim-u-late mar-kets! Come on! It’s monetary easing.^*

The European Central Bank (ECB) was singing a tune that invigorated financial markets last week. The Wall Street Journal explained:

“The fresh measures included cuts to all three of the ECB’s main interest rates, €20 billion a month of additional bond purchases atop the ECB’s current €60 billion ($67 billion) program, and an expansion of its quantitative easing program to highly rated corporate bonds – all more aggressive steps than analysts had anticipated. The central bank also announced a series of ultracheap four-year loans to banks, some of which could be paid to borrow from the ECB.”

Most national indices in Europe gained ground last week. The Financial Times Stock Exchange Milano Italia Borsa (FTSE MIB), which measures the performance of the 40 most-traded stocks on the Italian national stock exchange, was up almost 4 percent. Spain’s Indice Bursatil Español Index (IBEX 35), which is comprised of the most liquid stocks trading on the Spanish continuous market, gained more than 3 percent. Major markets in the United States moved higher, as well.

Of course, the harmony provided by global oil markets proved pleasing to investors, too. An International Energy Agency (IEA) report suggested more equitable supply and demand balances could mean oil prices have bottomed out.

Barron’s offered a word of caution, “Investors shouldn’t get too comfortable when it seems that oil moves and central-bank maneuvers are the main reason stocks go up or down, not earnings and economic growth.”

^*Set to the tune of Kool and the Gang’s ‘Celebration.’ You know, “Cel-e-brate good times! Come on! It’s a celebration.”

Data as of 3/11/16	1-Week	Y-T-D	1-Year	3-Year	5-Year	10-Year
Standard & Poor's 500 (Domestic Stocks)	1.1%	-1.1%	-0.9%	9.1%	9.2%	4.7%
Dow Jones Global ex-U.S.	1.1	-2.5	-9.6	-2.3	-1.6	1.3
10-year Treasury Note (Yield Only)	2.0	NA	2.1	2.1	3.4	4.8
Gold (per ounce)	-1.0	19.1	10.0	-7.1	-2.2	8.8
Bloomberg Commodity Index	2.0	1.8	-19.6	-16.5	-13.3	-6.8
DJ Equity All REIT Total Return Index	1.7	1.7	4.7	9.0	11.0	6.4

S&P 500, Dow Jones Global ex-US, Gold, Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; the DJ Equity All REIT Total Return Index does include reinvested dividends and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods.

Sources: Yahoo! Finance, Barron’s, djindexes.com, London Bullion Market Association.

Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.

Here’s some Good News: Healthcare spending is expected to increase more slowly during 2016! It’s projected to grow by 6.5 percent this year, according to a report from PWC. That’s still a lot faster than inflation. The Economist projects overall consumer prices in the United States will increase by 1.2 percent this year.

The report suggested several factors are contributing to lower healthcare spending, including:

· The Affordable Care Act’s Cadillac Tax. PWC reported the tax “…is motivating businesses to enact high cost-sharing. Their workers are already responding to the higher deductibles by scrutinizing what services are necessary and which are not…cost sharing can backfire if the employee foregoes preventative care and faces years of chronic illness.” Twenty-five percent of employers offer only high-deductible healthcare plans for employees.

· Virtual healthcare. Telemedicine appears to be the next big thing in medicine. Doctors making house calls using real-time audio and video is the gold standard for service, according to the Modern Medicine Network. Remote patient monitoring, pre-recorded videos, and computer-assisted or message-based communications also are being offered.

· New health advisors. A new variety of healthcare company is making information about facilities, providers, services, and pricing more accessible. In some cases, financial incentives encourage employees to seek treatment at a preferred facility.

These gains are more than offset by factors that are pushing healthcare spending higher, including:

· High-cost specialty drugs. PWC reported specialty drugs are becoming a focus for the pharmaceutical industry. “With 700 specialty products currently in development, these investments will soon surpass traditional drug investments…According to a recent Express Scripts report, total national prescription spending increased 13.1 percent last year to about $980 per person.”

· Cyber security investments. Healthcare organizations are spending heavily on cyber security to protect patients from data breaches. The cost of a breach is about $200 per patient record. The cost of security is about $8 per patient record.

It’s critical to factor healthcare spending into retirement plans. In 2015, the Employee Benefits Research Institute (EBRI) found a 65-year-old man needs $124,000 in savings and a 65-year-old woman needs $140,000 if each wants a 90 percent chance of having enough money saved to cover healthcare expenses in retirement. EBRI’s analysis did not include the savings needed to cover long-term care expenses.

Weekly Focus – Think About It

“Yesterday is not ours to recover, but tomorrow is ours to win or lose.”

--Lyndon B. Johnson, Former U.S. President

Best regards,

Leif M. Hagen

Leif M. Hagen, CLU, ChFC

LP Financial Advisor

Securities offered through LPL Financial Inc.,

Member FINRA/SIPC.

www.FINRA.com

www.SIPC.com

P.S. Please feel free to forward this commentary to family, friends, or colleagues.

If you would like us to add them to our list, please reply to this e-mail with their e-mail address and we will ask for their permission to be added.

P.S.S. Also, please remind your friends and family members becoming Medicare eligible that we offer Medicare insurance and Part D options with NO COST to work with Leif as their agent

For more information and resources visit our website at www.HagenFN.com

For Medicare supplement and part D information and resources, please visit MEDICAREforSENIORS.info

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* This newsletter was prepared by Peak Advisor Alliance. Peak Advisor Alliance is not affiliated with the named broker/dealer.

* The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be

representative of the stock market in general. You cannot invest directly in this index.

* The Standard & Poor’s 500 (S&P 500) is an unmanaged index. Unmanaged index returns do not reflect fees,

expenses, or sales charges. Index performance is not indicative of the performance of any investment.

* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S.

Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

* Gold represents the afternoon gold price as reported by the London Bullion Market Association.

The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.

* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.

* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.

* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.

* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

* Past performance does not guarantee future results. Investing involves risk, including loss of principal.

* You cannot invest directly in an index.

* Consult your financial professional before making any investment decision.

* Stock investing involves risk including loss of principal.

* To unsubscribe from the “Peek of the Week”, please reply to this email with “Unsubscribe” in the subject line, or write us at: Hagen Financial Network, Inc. 4640 Nicols Road, Suite 203; Eagan, MN 55122.

Sources:

http://www.wsj.com/articles/ecb-announces-raft-of-new-measures-1457617839

http://online.barrons.com/mdc/public/page/9_3063-economicCalendar.html?mod=BOL_Nav_MAR_other (Click U.S. & Intl Recaps, then "Reaction then overreaction," and scroll down to chart) (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/03-14-16_Barrons-Global_Stock_Market_Recap-Footnote_2.pdf)

http://www.bloomberg.com/quote/FTSEMIB:IND

http://www.bloomberg.com/quote/IBEX:IND

http://www.reuters.com/article/us-global-markets-idUSKCN0WD027

http://www.barrons.com/articles/stocks-up-1-1-as-oil-rises-europe-eases-1457760085?mod=BOL_hp_we_columns (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/03-14-16_Barrons-Stocks_Up_1.1_Percent_as_Oil_Rises_Europe_Eases-Footnote_6.pdf)

http://www.pwc.com/us/en/health-industries/behind-the-numbers/key-findings.html

http://www.economist.com/news/economic-and-financial-indicators/21694506-output-prices-and-jobs (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/03-14-16_TheEconomist-Output_Prices_and_Jobs-Footnote_8.pdf)

http://www.pwc.com/us/en/health-industries/behind-the-numbers/cadillac-tax.html

http://www.pwc.com/us/en/health-industries/behind-the-numbers/virtual-care.html

http://managedhealthcareexecutive.modernmedicine.com/managed-healthcare-executive/news/five-forces-driving-telemedicine-expansion-2016?page=0,1

http://www.pwc.com/us/en/health-industries/behind-the-numbers/new-health-advisers.html

http://www.pwc.com/us/en/health-industries/behind-the-numbers/high-cost-drug.html

http://www.pwc.com/us/en/health-industries/behind-the-numbers/cyber-security-prevention.html

https://www.ebri.org/publications/notes/index.cfm?fa=notesDisp&content_id=3284

http://www.brainyquote.com/quotes/quotes/l/lyndonbjo103549.html?src=t_positive

#financialadvisorEaganMN #financialplannerEaganMN #wealthmanagementEaganMN

Monday, March 07, 2016

Who said: “The philosophy of the school room in one generation will be the philosophy of government in the next.”?

PEEK OF THE WEEK
March 7, 2016

The Markets

When Mark Twain’s death was reported in the United States, he was alive and well in London. He responded to news accounts with a note saying, “The report of my death was an exaggeration.”

Last week’s jobs data suggest the same is true of reports that a recession is imminent in the United States. Barron’s explained:

“Thank goodness the mid-February fears of recession that brought markets to their knees – and the 10-year Treasury yield to a low of 1.53 percent – were overblown. Friday’s nonfarm payrolls report was the latest confirmation. It showed that 242,000 jobs were created last month, far more than expected and up from the previous month’s reading, which was itself revised higher.”

The employment data weren’t all positive, though. Average hourly earnings declined when it was expected to increase and the number of hours worked was lower, on average, than it has been for two years.

Regardless, The Wall Street Journal said employment, consumer, and business spending reports helped calm investors’ fear the U.S. economy was losing momentum. Some investors sold bonds, which helped push the yield on 10-year Treasury notes higher.

Investors also were encouraged by last week’s oil price rally, according to CNBC. A better demand outlook, coupled with cuts in supply, boosted oil prices by 9.5 percent in one week.

U.S. stock market performance reflected investors’ renewed optimism. USA Today said, “Stocks have rebounded from their worst start to a year ever, with the benchmark S&P 500 trimming its year-to-date loss to 2.15 percent after being down by more than 10 percent on February 11.” At the end of last week, the Standard & Poor’s 500 Index was about 6 percent below its record high.

Data as of 3/4/16	1-Week	Y-T-D	1-Year	3-Year	5-Year	10-Year
Standard & Poor's 500 (Domestic Stocks)	2.7%	-2.2%	-5.1%	9.5%	8.7%	4.6%
Dow Jones Global ex-U.S.	5.0	-3.6	-13.2	-2.1	-2.5	-0.3
10-year Treasury Note (Yield Only)	1.9	NA	2.1	1.9	3.5	4.7
Gold (per ounce)	4.2	20.3	6.5	-6.7	-2.2	8.5
Bloomberg Commodity Index	3.9	-0.2	-23.2	-16.8	-14.3	-7.0
DJ Equity All REIT Total Return Index	3.9	0.0	0.6	8.4	10.7	6.2

Sources: Yahoo! Finance, Barron’s, djindexes.com, London Bullion Market Association.

Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.

are you leaving the same amount to all of your beneficiaries?

One-third of all parents with wills have divided their estates unequally among their children, according to the National Bureau of Economic Research (NBER). The study found bequests in complex families – families with stepchildren or estranged children – are more likely to be unequal. The Squared Away Blog reported:

“…parents with stepchildren are considerably less likely to include all of their children than are parents who have only biological offspring. This is more true for women with stepchildren than for men with stepchildren. Divorced and widowed parents are even less likely to divide their assets evenly if they have stepchildren.”

The blog reported there were some mitigating factors. Wealthier parents were more likely to include stepchildren and children with whom they had little or no contact during their lifetimes than less wealthy parents. However, parents who suffered from poor health were less likely to divide their estates equally. Bequests sometimes were used as an incentive to provide long-term care.

Since children may interpret unequal inheritance as an expression of unequal love, why do parents play favorites? Researchers at Ohio State University delved into the question in 2003 and reported altruism (equalizing income differences among children), exchange (bequests in return for services), and/or evolution (bequests to biological children rather than adopted or stepchildren) played a role when distribution of assets was uneven.