• New Data from the NFIB Small Business Optimism Index

    Small Businesses Feeling More Optimistic But This is the 17th Month in a Row Below the 49-Year Average

    There are over 30 million small businesses in the United States, according to the Small Business Administration and small businesses comprise about 99% of all U.S. businesses. Further, about half of all Americans – 48% – are employed by small businesses, meaning almost 60 million employees in the U.S. work for a smaller company.

    Small Businesses Feeling More Optimistic

    On June 13th, “the NFIB Small Business Optimism Index increased 0.4 points in May to 89.4, which is the 17th consecutive month below the 49-year average of 98. The last time the Index was at or above the average was in December 2021. Small business owners expecting better business conditions over the next six months declined one point from April to a net negative 50%. Twenty-five percent of owners reported that inflation was their single most important problem in operating their business, up two points from last month and followed by labor quality at 24%.

    Key findings include:

    • Forty-four percent of owners reported job openings that were hard to fill, down one point from April and remaining historically very high.
    • The net percent of owners raising average selling prices decreased one point to a net 32% (seasonally adjusted), still an inflationary level but trending down.
    • The net percent of owners who expect real sales to be higher deteriorated two points from April to a net negative 21%.”

    Job Openings Still Hard to Fill

    Further, as reported in the NFIB’s monthly jobs report:

    • Owners’ plans to fill open positions remain elevated, with a seasonally adjusted net 19% planning to create new jobs in the next three months.
    • Overall, 63% of owners reported hiring or trying to hire in May, up three points from April.
    • Of those hiring or trying to hire, 89% of owners reported few or no qualified applicants for their open positions.

    In addition:

    • A net 41% of owners reported raising compensation, up one point from April.
    • A net 22% plan to raise compensation in the next three months, up one point.
    • Ten percent of owners cited labor costs as their top business problem.
    • 24% said that labor quality was their top business problem.

  • Retail Trade Corporations’ After-Tax Profits Up in Q1

    Manufacturing Corporations’ Profits are Down in Q1

    The U.S. Census Bureau today announced the following seasonally adjusted quarterly after-tax profits for retail trade industries statistics for First Quarter 2023:

    After-Tax Profits and Sales, 1Q 2023 – Seasonally Adjusted, Retail Trade Corporations

    • Seasonally adjusted after-tax profits of U.S. retail corporations with assets of $50 million and over totaled $36.6 billion, up $5.6 billion from the $31.0 billion recorded in the fourth quarter of 2022.
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    • This is up $1.7 billion from the $35.0 billion recorded in the first quarter of 2022.
      •  
    • Seasonally adjusted sales for the quarter totaled $1,001.6 billion, not statistically different from the $1,002.3 billion in the fourth quarter of 2022 and not statistically different from the $994.2 billion in the first quarter of 2022.

    Manufacturing Industries

    The U.S. Census Bureau also announced today the following seasonally adjusted quarterly after-tax profits for manufacturing industries statistics for First Quarter 2023:

    After-Tax Profits and Sales, 1Q 2023 – Seasonally Adjusted, Manufacturing Corporations

    • U.S. manufacturing corporations’ seasonally adjusted after-tax profits in the first quarter of 2023 totaled $230.5 billion, down $4.1 billion from the after-tax profits of $234.6 billion recorded in the fourth quarter of 2022.
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    • This is down $35.8 billion from the after-tax profits of $266.3 billion recorded in the first quarter of 2022.
      •  
    • Seasonally adjusted sales for the quarter totaled $2,050.4 billion, down $19.7 billion from the $2,070.1 billion recorded in the fourth quarter of 2022, but not statistically different from the $2,019.9 billion in the first quarter of 2022.

    Sources: census.gov

  • Summer Vacation Budgeting

    Tips for Saving Money While Traveling

    How You Can Enjoy the Season without Breaking the Bank

    Summer is the perfect time to take a break from the daily grind and go on a vacation. However, if you’re not careful, the cost of travel can quickly add up and leave you with a hefty bill. The good news is that with some careful planning and budgeting, you can enjoy a memorable vacation without breaking the bank. Here are some summer vacation budgeting tips for saving money while traveling this summer.

    Summer Vacation Budgeting Tip #1: Choose Your Destination Wisely

    The first step in saving money on your summer vacation is to choose your destination wisely. Consider destinations that are less popular or off the beaten path, as these are often more affordable. Look for deals on airfare and accommodations and consider traveling during the week instead of on weekends, as this can also save you money.

    Summer Vacation Budgeting Tip #2: Set a Budget

    Before you start planning your vacation, it’s important to set a budget. Determine how much you can afford to spend on airfare, accommodations, food, and activities, and stick to this budget as closely as possible. Keep in mind that unexpected expenses can arise, so it’s a good idea to set aside some extra money for emergencies.

    Summer Vacation Budgeting Tip  #3: Look for Deals and Discounts

    There are many ways to save money on travel, such as using travel reward points, booking early, and looking for deals and discounts. Consider using a travel rewards credit card to earn points that can be redeemed for airfare or hotel stays. Check with your employer, school, or membership organizations for any travel discounts that may be available. If you’re a veteran, you may qualify for special travel discounts, too.

    Related Article: Financial Planning For Recent College Graduates

    Summer Vacation Budgeting Tip #4: Plan Your Meals

    Eating out at restaurants can be a major expense while traveling. To save money, plan your meals in advance and look for affordable dining options, such as street food or local markets. Consider staying in accommodations that have a kitchen so you can cook some meals yourself.

    Summer Vacation Budgeting Tip #5: Choose Free or Low-Cost Activities

    One of the best ways to save money while traveling is to choose free or low-cost activities. Look for outdoor activities, such as hiking or biking, that don’t cost anything. Visit local museums or parks that offer free admission or take a self-guided walking tour of the city.

    Summer Vacation Budgeting Tip #6: Be Flexible

    Finally, be flexible with your travel plans. If you’re willing to travel during off-peak times or stay in less expensive accommodations, you can save a significant amount of money. Consider taking a road trip instead of flying or staying in a vacation rental instead of a hotel.

    Are You Financially Prepared for the Summer Season?

    For many people, summer is the time to enjoy travel and time off with family and friends. With some careful planning and budgeting, you can enjoy a memorable summer vacation without breaking the bank or veering off the path to achieving your financial goals. By choosing your destination wisely, setting a budget, looking for deals and discounts, planning your meals, choosing free or low-cost activities, and being flexible with your plans, you can save money and have a great time on your summer vacation.

    If you’d like to discuss more personal finance tips or create a financial plan, contact Lane Hipple Wealth Management Group at our Moorestown, NJ office by calling 856-249-4342, emailing info@lanehipple.com, or to schedule a complimentary discovery call, use this link to find a convenient time.

    Illuminated Advisors is the original creator of the content shared herein. I have been granted a license in perpetuity to publish this article on my website’s blog and share its contents on social media platforms. I have no right to distribute the articles, or any other content provided to me, or my Firm, by Illuminated Advisors in a printed or otherwise non-digital format. I am not permitted to use the content provided to me or my firm by Illuminated Advisors in videos, audio publications, or in books of any kind.

  • Housing Prices Hint at Recovery

    All 20 Major Metro Areas Rise in March

    S&P Dow Jones Indices today released the latest results for the S&P CoreLogic Case-Shiller Indices, the leading measure of U.S. home prices. Data released today for March 2023 show a continuing recovery in housing prices, as all 20 major metro markets reported month-over-month price increases.

    Month-Over-Month

    Before seasonal adjustment, the U.S. National Index posted a 1.3% month-over-month increase in March, while the 10-City and 20-City Composites posted increases of 1.6% and 1.5%, respectively.

    After seasonal adjustment, the U.S. National Index posted a month-over-month increase of 0.4%, while the 10-City Composite gained 0.6% and 20-City Composites posted an increase of 0.5%.

    Analysis

    “The modest increases in home prices we saw a month ago accelerated in March 2023. The National Composite rose by 1.3% in March, and now stands only 3.6% below its June 2022 peak. Our 10- and 20-City Composites performed similarly, with March gains of 1.6% and 1.5% respectively. On a trailing 12-month basis, the National Composite is only 0.7% above its level in March 2022, with the 10- and 20-City Composites modestly negative on a year-over-year basis.

    The acceleration we observed nationally was also apparent at a more granular level. Before seasonal adjustment, prices rose in all 20 cities in March (versus in 12 in February), and in all 20 price gains accelerated between February and March. Seasonally adjusted data showed 15 cities with rising prices in March (versus 11 in February), with acceleration in 14 cities.

    One of the most interesting aspects of our report continues to lie in its stark regional differences.

    Miami’s 7.7% year-over-year gain made it the best-performing city for the eighth consecutive month. Tampa (+4.8%) continued in second place, narrowly ahead of bronze medalist Charlotte (+4.7%). The farther west we look, the weaker prices are, with Seattle (-12.4%) now leading San Francisco (-11.2%) at the bottom of the league table. It’s unsurprising that the Southeast (+5.4%) remains the country’s strongest region, while the West (-6.2%) remains the weakest.

    Two months of increasing prices do not a definitive recovery make, but March’s results suggest that the decline in home prices that began in June 2022 may have come to an end. That said, the challenges posed by current mortgage rates and the continuing possibility of economic weakness are likely to remain a headwind for housing prices for at least the next several months.” The chart below depicts the annual returns of the U.S. National, 10-City Composite, and 20-City Composite Home Price Indices.”

    Sources: spglobal.com

  • Financial Planning for Recent College Graduates

    Six Steps to Prepare for Long-Term Success

    Graduating from college is a major milestone, but it can also be a daunting time for many young adults as they transition into the “real world”. If you have a recent college graduate in your life, they may be facing a number of financial challenges, from student loan debt to finding their first job. Financial planning may be the last thing on their mind, but you can use your influence and experience to help them see the benefit of taking financial planning steps as a recent college graduate in order to set themselves up for long-term success.

    Share the six steps below to help them get started.

    Financial Planning for Recent College Graduates Tip #1: Create a Budget

    The first step in any financial plan is to create a budget. Don’t think of it as something that constrains you. Rather, consider your budget a tool to balance spending on needs and wants, and to help you achieve your goals. Creating a budget helps you understand where your money is going and where you can make adjustments to save more. Start by listing all of your monthly income and expenses, including rent, utilities, groceries, transportation, and any debt payments, such as student loans. Then, look for areas where you can cut back, such as eating out less or finding a more cost-effective apartment. Be sure to set aside some money each month for savings, as well. (More on that below.)

    Financial Planning for Recent College Graduates Tip #2: Make a Plan to Pay Off Student Loans

    Student loan debt is a major concern for many recent college graduates. If you have student loans, make a plan to pay them off as quickly as possible. Consider consolidating your loans or refinancing them to get a lower interest rate. You may also want to explore income-driven repayment plans, which can reduce your monthly payments based on your income.

    Financial Planning for Recent College Graduates Tip #3: Start Saving for Retirement Now

    It’s never too early to start saving for retirement – even if you’re in your early twenties. When you begin your first professional job, be sure to take advantage of your employer’s 401(k). If they don’t offer one or you dislike the plan details, you can also open your own individual retirement account (IRA). The earlier you start saving, the more time your money has to grow. Your future self will thank you!

    Related Article: How Inflation Impacts Wealth Management and Investment Strategies

    Financial Planning for Recent College Graduates Tip #4: Plan to Navigate Rainy Days

    Life is unpredictable, and you never know when you might face an unexpected expense or job loss. That’s why it’s important to build an emergency fund so you won’t be forced into debt on rainy days – or seasons of life. Aim to save three to six months’ worth of living expenses in a separate savings account. This will give you a financial cushion in case of an emergency, and it will give you peace of mind, too.

    Financial Planning for Recent College Graduates Tip #5: Understand and Protect Your Credit Score

    Your credit score is an important factor in many financial decisions, such as getting a loan or renting an apartment. Make sure you understand what affects your credit score, such as paying bills on time and keeping your credit card balances low. It’s important to protect your credit score, too, so check your report regularly to make sure there are no errors or fraudulent activity. Check out this resource from the Consumer Financial Protection Bureau to learn more.

    Financial Planning for Recent College Graduates Tip #6: Set Financial Goals

    Another important step in financial planning for anyone – recent college graduates included – is to set financial goals. These could be anything from saving for a down payment on a house to paying off your student loans by a certain date. Having clear goals will help you stay motivated and focused on your financial plan.

    Recent College Graduates Should Begin Financial Planning Now

    Graduating from college is a big win and something to be proud of. It’s also a time of significant transition for many people, and it’s important to start off on the right foot financially in order to protect your future. Use the six steps above to take control of your finances now and set yourself up for long-term financial success.

    If you’d like to discuss financial planning for recent college graduates, contact Lane Hipple Wealth Management Group at our Moorestown, NJ office by calling 856-452-8026, emailing info@lanehipple.com, or to schedule a complimentary discovery call, use this link to find a convenient time.

    Illuminated Advisors is the original creator of the content shared herein. I have been granted a license in perpetuity to publish this article on my website’s blog and share its contents on social media platforms. I have no right to distribute the articles, or any other content provided to me, or my Firm, by Illuminated Advisors in a printed or otherwise non-digital format. I am not permitted to use the content provided to me or my firm by Illuminated Advisors in videos, audio publications, or in books of any kind.