First Quarter – 2018

Quarterly Newsletter to Retirement Plan Participants

Market Update

After a fabulous run in 2017, stocks have been a lot more volatile this year. Trade tensions, together with concerns about inflation and interest rates, have caused some fairly wild price swings in the past few months.

With all of the up and down movement, stocks finished essentially flat on the quarter. Bonds were down a bit because interest rates are ticking higher.

We still believe in the global growth story, and the positive corporate earnings momentum associated with it. We do not think the current tit-for-tat trade rhetoric will derail GDP growth or the secular bull market in equities, but do anticipate a tougher year overall. We also expect short-term volatility to present attractive opportunities, which will be to the benefit of long-term retirement plan investors.

With the markets volatile and the economy on solid footing, it is an excellent time for dollar cost averaging. Sharp swings in the market create opportunities to add to your holdings at lower prices. If you have received a year-end bonus or a salary increase in the past several months, consider increasing your contribution in order to grown your savings more aggressively.

EMBREE  FINANCIAL  works diligently  with  the  401(k) Investment  Committee  to  provide you  a  best‐in‐class  Retirement Savings  Plan.    Together,  we regularly  monitor  investment performance,  mutual  fund  quality and plan costs.

Grow After-Tax Savings, As Well

Take advantage of the Roth 401(k) if it’s available to you. The major difference between Roth and traditional pre-tax savings is the tax treatment when you ultimately spend the money. Roth distributions are tax free in retirement, whereas you must pay ordinary income tax when distributing traditional pre-tax savings.

The younger you are, the more beneficial Roth savings are. Compounding tax-free savings over a long period of time is a powerful way to accumulate wealth. If you are currently contributing 5% of your pay to the 401(k) pre-tax, consider adding  3 – 5% to the Roth as well. It will make a huge difference in retirement!

If you have any questions, or need help with any aspect of your retirement plan, please don’t hesitate to call us at 312-527-5565.

Market Returns: First Quarter 2018

Please  contact  us  at  312‐527‐5565  if you  have  any  questions  regarding your Plan, expenses, industry trends or your own retirement strategy.