July 2019 E-Newsletter

July 2019 Q & A

Q: I didn't enroll in Medicare when I was eligible at age 65, even though I wasn't working at the time. Now I want to enroll, but heard I can only do this during certain times. Is this true?

A: You can sign up for Medicare Parts A and B during the general enrollment period, which is January 1 - March 31 each year, if you didn't sign up when first eligible and you weren't eligible for a special enrollment period. If you didn't have health insurance through your employer or spouse's employer and you didn't take Medicare when eligible, you may have to pay higher premiums for late enrollment.

Q: Last year, I lost some principal in a mutual fund that invested only in U.S. Treasury securities. How could I lose money with them when there are federal guarantees?

A: Treasury bills, bonds and notes held until maturity are guaranteed. Not so for these securities if you sell them before maturity or a fund manager sells them within a mutual fund. When interest rates go up, your lower-rate bonds aren't as attractive if you try to sell them before maturity. Mutual funds, including those with bonds, can lose money at any time if they buy and sell these securities at less than peak values.

PPI SLOWING.

The Producer Price Index (PPI) for final demand for the year ending February 2019 rose just 1.9%, calming inflation fears. When adjusted to eliminate foods, energy and trade services, the PPI increased 2.3% for the same period. When the annual price increases experienced by producers are relatively low, consumers typically can expect prices they pay to stay stable.

EARNINGS UP.

Real average hourly earnings for all employees increased 1.9%, seasonally adjusted for the year ending February 2019, according to the Bureau of Labor Statistics (BLS). The change in real average hourly earnings, combined with a 0.3% decrease in the average workweek, created a 1.6% increase in real average weekly earnings. Production and nonsupervisory employees, who are typically among the lower paid, saw real average hourly earnings increase 2.2%. After factoring in the 0.6% decrease to their average workweek, real average weekly wages rose 1.5%.

WHAT'S UP?

. . . and what's down? According to the BLS, lettuce (14.5%), tax prep and accounting services (13.8%), laundry equipment (8.9%) and health insurance (7.7%) showed some of the biggest price increases for the year ending February 2019. The price of televisions dropped 16.8%, followed by telephone hardware and calculators (-15.1%), infants' equipment (-11.5%), and dishes and flatware (-9.1%).

MORE CONFIDENT.

Americans in January 2019 were feeling more confident about their finances than a year prior, according to a recent Gallup Poll. More than two-thirds of respondents said they expected to be better off in the year ahead. Half said they were better off than the year before.

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