By Stephen Kyne

We’re halfway through 2017, so it’s time to take a look at how the year is progressing, and where we see the remainder of the year going, in terms of risks and opportunities in the economy.

The economy has grown at a faster-than-expected pace so far this year. First quarter GDP has been revised up, twice, and well exceeds expectations. Almost all of the S&P has reported earning for its first fiscal quarter of the year, and are trending toward a year-over-year growth of upwards of 20 percent (12 percent, not including the energy sector). These are largely due to top line revenue increases, meaning that increased profits are largely due to business growth, rather than cost cutting. We expect this trend to continue throughout the year.

Inflation is holding steady, in line with 2016 figures, at roughly 2 percent. Some inflation, perhaps counter-intuitively, is fundamentally good for the economy. When we expect goods and services to be more expensive tomorrow than they are today, we make purchases today, which means inventories need to be replenished, which puts people to work and gives them money to spend on the things they want and need. Without some inflation, the economy stagnates.

Another driver of spending this year may be interest rates. The Fed increased rates another .25 percent in June, as was expected. With the Fed finally making good on promises to increase the rates they charge banks, we’ll see that increase reflected in higher mortgage rates. The expectation of higher future rates pushes fence-sitting potential buyers into the housing market. As a result we’ve seen, and will likely continue to see, increased sales of new and previously owned homes. The same will likely be true of any purchases which are typically made on credit, including automobiles and business capital items.

An asset class that may be hurt by rising interest rates, however, would be bonds – specifically many bond funds. As newly issued bonds carry higher interest rates, the value of previously issued bonds, with relatively lower interest rates, should decrease. These changes should be reflected in the overall value of the funds that hold them.

By Brian M. Johnson, MBA, CLTC

If you’re approaching age 50 or thinking of retirement, keep this acronym in mind “SWAN.”

Surveys from folks in this retirement planning age group are interesting because these concerns are almost always in their answers to questions such as:  What do you worry about after your working years are over?

Here are some top-concerns:

• Outliving my money.

• Keeping my nest-egg secure (no or little risk of principal).

• Dieing to soon.

• Becoming sick or disabled which in turn could eat up my retirement nest-egg.

• Becoming dependent on my children.

• Leaving a meaningful and significant legacy to my children/grand-children/charity.

These concerns are real-life and can happen to any of us without proper planning

By Liz Witbeck

As people get older, homes they have lived in for so many years may start to seem too spacious for their need. There are maintenance issues and money issues involved with a larger place.

Downsizing is an option for many people, and there are many options available in the Capital Region.

“A lot of people are retiring here” said Joan Taub, a licensed associate real estate broker at Berkshire Hathaway HomeServices in Saratoga Springs. “This area offers so much. People aren’t fleeing New York like they used to. This area offers things for you intellectually and physically. You have the ability to stay right downtown living in a condo. You can walk everywhere. You’ll stay young living here.”

Meg Minehan, an associate broker with Roohan Realty in Saratoga Springs, said the area “is much more responsive now to the 50-and-older community. We couldn’t say that 10 or 15 years ago.”

“A good portion of my clients are baby boomers,” said Jane Sanzen, a licensed associate broker at Julie Co. Realty in Saratoga Springs. “Empty nesters are driving this growth. High-end, luxury living is a very attractive segment for this population.”

Properties available in this area range from $200,000 up to a $1 million, said Minehan, “So there is something for everybody,” she said. She said there are many active 50-year-olds living in the area and for them, being in Saratoga Springs is a good way to keep up with their active lifestyle.