Weekly Market Review: December 9, 2019

first_imgThe Federal Reserve meets this week, its final scheduled gathering of 2019, with zero market expectations of a fourth consecutive rate cut taking place. The three Fed rate cuts implemented since July were seen as a boost to “jump start” consumer spending, i.e., lower interest rates incent Americans to borrow/spend more. This latter activity could ultimately lead to higher inflation as the increased demand for goods and services drives prices higher. Higher inflation, in and of itself, can also spur additional spending as consumers accelerate purchases before prices go any higher (source: BTN Research).Lower interest rates have created an unintended consequence in the pension world. The discount rate used to calculate the present value of pension liabilities has historically been benchmarked to high-quality corporate or Treasury bond yields. Many key interest rates have been cut in half over the last 12 years, e.g., the yield on the 10-year Treasury note has fallen from 4.02% (12/06/07) to 1.84% (12/06/19). Every one percentage point drop in the discount rate produces an approximate +12% increase in the present value of pension liabilities, a reality that is causing funding difficulties for retirement plans nationwide (source: Center for Retirement Research at Boston College).The UK general election on Thursday 12/12/19 is its first December election since 1923. Prime Minister Boris Johnson is seeking to gain a majority backing in Parliament which would allow him to enact his Brexit plan, 3 years after voters approved UK’s divorce from continental Europe (source: BTN Research).Notable Numbers for the Week:SOME DO IT ON THEIR OWN – 61% of 1,000 workers surveyed in January 2019 are working with a financial advisor(s) or expect to work with an advisor(s) as they prepare for their eventual retirement (source: Employee Benefit Research Institute).ARE WE TWICE AS HEALTHY? – The United States spends 18% of its $21.5 trillion gross domestic product (GDP) on health care expenditures, more than double the 8.6% of GDP spent by 35 other major economies throughout the world (source: Organization for Economic Cooperation and Development).SOURCE OF PAYMENT – 42.6% of the cost to deliver a baby for the 3.95 million births in the United States in calendar year 2016 was paid for by Medicaid (source: National Vital Statistics System).EVEN WHEN YOU’RE SLEEPING – If you were paid $1 a minute for an entire year you would make $525,600 for the year, i.e., $60 per hour x 24 hours a day x 365 days in the year (source: BTN Research).last_img read more

The power of monthly giving—to you and credit unions

first_img 15SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Mike Reuter Mike Reuter is the Executive Director of the Worldwide Foundation for Credit Unions, the 501c3 charitable nonprofit that supports the World Council of Credit Unions in its mission of providing … Web: https://www.woccu.org Details You should get a confirmation email and special message, welcoming you as a new member of a special group, those that take a step into our global movement to change the world. We hope you’ll join us today! The Worldwide Foundation for Credit Unions is rolling out a new feature to ensure everyone across our movement has an opportunity to #DoGlobalGood for members everywhere—a Monthly Giving Program. A monthly giving program is designed to give a charity the ability to reach out to individuals and organizations that want to spread their generosity out over the course of the year in smaller installments that are automatically withdrawn from a credit card or bank account. It’s easy to see why a monthly giving program is good for nonprofits; it provides a stable, recurring flow of donations, and adds another revenue stream to compliment an annual appeal or sponsorship program. Over the next few months, we will be profiling our special group of Champions who are monthly donors to hear their “WHY” for supporting the global credit union movement through the Worldwide Foundation. How can a monthly giving program be good for potential global champions? It’s convenient For them.Subscription models are everywhere nowadays, and even before services like Netflix revolutionized how we consume and pay for things like TV, we were used to monthly billing. The difference is that they just weren’t as smooth or as automated as they are today. Monthly payments spread out the cost over a series of months, making them more tolerable for budgets and allowing people to plan better.The same is true with regular giving. It’s just plain convenient to add in charitable giving to organizations as a budget item and have it come off a paycheck, credit card or right out of their bank. We’ll do the work of making sure you get one tax receipt at year’s end that illustrates each monthly donation, making it easier for Champions to keep tabs on their giving. They (should) get fewer asks, more updatesThis should leave more time for them to get updates and reports on the progress of the organization’s work and what their regular donation is helping us achieve. There also will be fewer requests to give—as they are already giving—and more updates on the difference they are making. That’s a good thing for our champions.Becoming a global Champion has never been easier!An easy, five-step process to become a monthly global Champion starts by:  Visiting DoGlobalGood.org/give2. Select which fund or program you’d like to support with the monthly amount3. Check the “Make This a Monthly Donation” box 4. Fill out your contact and payment info5. Click the “Support WF” buttonlast_img read more