Changes to the “FAFSA” (Free Application for Federal Student Aid) Process for 2017–18
SUBMIT A FAFSA EARLIER: Students will be able to submit a 2017–18 FAFSA as early as Oct. 1, 2016, rather than beginning on Jan. 1, 2017. The earlier submission date will be a permanent change, enabling students to complete and submit their FAFSAs as early as October 1 every year. (There is NO CHANGE to the 2016–17 schedule. The 2016–17 FAFSA became available Jan. 1, 2016.)
USE EARLIER INCOME AND TAX INFORMATION: Beginning with the 2017–18 FAFSA, students will be required to report income and tax information from an earlier tax year. For example, on the 2017–18 FAFSA, students (and parents, as appropriate) will report their 2015 income and tax information, rather than their 2016 income and tax information.
Here’s a summary of key dates for submitting the FAFSA depending on when you plan to go to school:
Most of the time, the U.S. stock market looks to 3 factors (call them the “pillars” which support the stock market) to support its upward trend – let’s grade each of the pillars.
CONSUMER SPENDING: This grade is A- (very favorable). Favorable activity in the housing market continues to support growth in the level of spending.
THE FED AND ITS POLICIES: This factor is rated A (very favorable). Economic reports indicate the U.S. economy is improving.
BUSINESS PROFITABILITY: This factor’s grade is aC-(below average). So far this quarterly reporting period, quarterly profits are slightly ahead of expectations but down from the prior period. Looking ahead, comparable profits will be easier to beat, on average, because lower energy sector profits are in the base period. This factor’s grade may be increased after more data becomes available.
OTHER CONCERNS: The “Heat Map” is indicating the U.S. stock market is in OK shape ASSUMING no international crisis. On a scale of 1 to 10 with 10 being the highest level of crisis, we rate these international risks collectively as a 4. These risks deserve our ongoing attention.
Last week, US Stocks advanced. Foreign Stocks and Bonds declined. During the last 12 months, STOCKS outperformed BONDS.
Returns through 9-16-2016
1-week
Y-T-D
1-Year
3-Years
5-Years
10-Years
Bonds- BarCap Aggregate Index
-.1
5.2
5.6
4.3
3.0
4.8
US Stocks-Standard & Poor’s 500
.6
6.3
9.6
10.3
14.4
7.2
Foreign Stocks- MS EAFE Developed Countries
-2.5
-.7
-.9
-.1
6.0
1.7
Source: Morningstar Workstation. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. Three, five and ten year returns are annualized excluding dividends.
The show airs on WDIY Wednesday evenings, from 6-7 p.m. The show is hosted by Valley National’s Laurie Siebert CPA, CFP®, AEP®. This week Laurie will discuss:
“Itemizing deductions on your tax return – when is it time to revisit and what can you deduct?”
Laurie will take your calls on these topics and other inquiries this week. Questions may be submitted early through www.yourfinancialchoices.com by clicking Contact Laurie. This show will be broadcast at the regular time. WDIY is broadcast on FM 88.1 for reception in most of the Lehigh Valley; and, it is broadcast on FM 93.9 in the Easton and Phillipsburg area– or listen to it online from anywhere on the internet. For more information, including how to listen to the show online, check the show’s website www.yourfinancialchoices.com and visit www.wdiy.org.
In a roller-coaster week, stocks eked out a small victory. Though the major stock indexes all rose, it didn’t much feel like a positive trend.
Blame that on heightened uncertainty and rising volatility, which began the previous week after Federal Reserve officials stirred up fears of an interest-rate increase happening sooner rather than later. Moreover, recent polls suggest that the U.S. presidential election has tightened, contributing to investor insecurity.
This Tuesday and Wednesday, the policy-setting Federal Open Market Committee meets in what is likely the most-watched Fed confab of the year. On balance, the U.S. economic data released last week—including statistics on August retail sales and industrial production—were soft, reinforcing the market’s expectation a hike won’t come this week.
The probability of a rate hike, as measured by the fed-futures market, sank to 20% from more than 30% a week earlier. Still, investors fear a September surprise. The market was also pushed down by lower oil prices, but received some support from Apple (ticker: AAPL). Its shares rose 11%, to $114.92, on indications of strong sales of its new iPhone 7.
Financials stocks were hurt Friday in particular, after Deutsche Bank (DB) confirmed that it is negotiating with the U.S. Department of Justice to settle a $14 billion civil claim resulting from an investigation into its sales of mortgage-backed securities. Shares fell 12% to $13.38, even though the bank says it has “no intent” to accept that figure.
The Dow Jones Industrial Average rose 38 points, or 0.2%, to 18,123.80, while the Standard & Poor’s 500 index added 11 points to 2139.16. Both indexes have fallen, however, in six of the past eight trading sessions. The Nasdaq Composite rose 2.3%, to 5244.57, largely due to Apple’s gain.
“A step-up in volatility doesn’t make anyone comfortable,” says David Kelly, chief global strategist at J.P. Morgan Asset Management.
The smooth summer sailing is over, adds Peter Kenny, an independent market strategist at Kenny & Co. Since Labor Day, there’s been heavy volume on down days, and institutional investors are net sellers in this slide, he says. The odds are greater for a December hike, but that doesn’t mean the Fed won’t move Wednesday, says Kenny.
“The Fed’s in a tough spot,” says Aaron Clark, a portfolio manager at GW&K Investment Management. “The governors want to hike but the window is closing.” The Fed can cry wolf so many times before it loses credibility and dilutes the power of “Fedspeak” in the future. There’s also an important Bank of Japan meeting Wednesday.
A Fed hike Wednesday could be followed by a knee-jerk selloff below 2100 on the S&P 500, says Kenny. That would be a buying opportunity, Clark believes, saying a likely quarter-point hike won’t make a big difference to economic fundamentals.
A relief rally is likely if there’s no hike. But, says Kelly, much depends on how the Fed explains its action or inaction. Ironically, the best outcome for stock markets could be a hike and an announcement that the Fed is likely done for the year. Everyone clear now?
“Pay yourself first.” Many have heard that term but fail to implement it into their personal finance strategy. Those who either have a savings goal OR have trouble prioritizing their savings may want to set up a routine, automatic “periodic investment program” into a solid growth and income mutual fund. It’s less complicated than its name. Just specify the amount per month (say $100) that you think you can afford. The amount can be withdrawn automatically from your checking account. And, try to save at least 25% of annual bonuses or windfalls to this periodic investment program. This investment style, sometimes referred to as “dollar cost averaging” is a good approach to investing because you end up purchasing more shares when the price of the fund is low. It’s a proven technique, but remember, dollar cost averaging does not assure a profit or protect again loss in declining markets.
Most of the time, the U.S. stock market looks to 3 factors (call them the “pillars” which support the stock market) to support its upward trend – let’s grade each of the pillars.
CONSUMER SPENDING: This grade is A- (very favorable). Favorable activity in the housing market continues to support growth in the level of spending.
THE FED AND ITS POLICIES: This factor is rated A (very favorable). Economic reports indicate the U.S. economy is improving.
BUSINESS PROFITABILITY: This factor’s grade is aC-(below average). So far this quarterly reporting period, quarterly profits are slightly ahead of expectations but down from the prior period. Looking ahead, comparable profits will be easier to beat, on average, because lower energy sector profits are in the base period. This factor’s grade may be increased after more data becomes available.
OTHER CONCERNS: The “Heat Map” is indicating the U.S. stock market is in OK shape ASSUMING no international crisis. On a scale of 1 to 10 with 10 being the highest level of crisis, we rate these international risks collectively as a 4. These risks deserve our ongoing attention.
Last week, US Stocks, Foreign Stocks and Bonds all increased. During the last 12 months, STOCKS outperformed BONDS.
Returns through 9-2-2016
1-week
Y-T-D
1-Year
3-Years
5-Years
10-Years
Bonds- BarCap Aggregate Index
.2
5.7
5.8
4.3
3.1
4.9
US Stocks-Standard & Poor’s 500
.6
8.3
14.3
12.5
15.6
7.5
Foreign Stocks- MS EAFE Developed Countries
.5
2.0
4.1
2.5
5.8
1.8
Source: Morningstar Workstation. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. Three, five and ten year returns are annualized excluding dividends.
The show airs on WDIY Wednesday evenings, from 6-7 p.m. The show is hosted by Valley National’s Laurie Siebert CPA, CFP®, AEP®. This week Laurie will discuss:
“Required Minimum Distributions – understanding the concept and requirements”
Laurie will take your calls on these topics and other inquiries this week. Questions may be submitted early through www.yourfinancialchoices.com by clicking Contact Laurie. This show will be broadcast at the regular time. WDIY is broadcast on FM 88.1 for reception in most of the Lehigh Valley; and, it is broadcast on FM 93.9 in the Easton and Phillipsburg area– or listen to it online from anywhere on the internet. For more information, including how to listen to the show online, check the show’s website www.yourfinancialchoices.com and visit www.wdiy.org.
