Wealth and Wisdom: Week of May 10, 2021
What do you get when you pour up to $6 trillion dollars of new government spending into an economy that’s already growing at its fastest rate since the early 1980s, creating nearly a million jobs in March, while the Federal Reserve holds interest rates near zero?
Inflation. It’s no longer a question of whether price increases will accelerate, but how much: new evidence is appearing almost daily.
Cause for alarm? It’s certainly not a reason to make big changes to your long-term investment strategy, which should be based on your goals, time horizon, and tolerance for risk. But I do believe this is a theme we’ll be revisiting here in Wealth and Wisdom for some time to come.
Have a great week!
Warren Buffett sees inflation ahead
Read what the legendary investor recently had to say about inflation, SPACs, climate change, tax hikes and more. (Reading time: 4 minutes)
Retirees face ‘perfect storm’
Paltry interest rates, market risk, and now the prospect of higher inflation make it especially tough on today’s retirees. (Reading time: 6 minutes)
Update: Secure Act 2.0
Here’s the latest on legislation that would extend the starting age for RMDs from 72 to 75, among other things. (Reading time: 3 minutes)
Anything but average
U.S. stocks have returned about 10% annually on average for nearly a century – but the market rarely gets close to that number in any given year. (Reading time: 4 minutes)
Still making the same mistakes
A book written nearly a century ago shows that we continue to make the same investment mistakes as our parents and grandparents. (Reading time: 7 minutes)
Buying vs. getting sold
The pros and cons of permanent life insurance – and why many sales pitches for it are misleading. (Reading time: 5 minutes)
Saving an extra $100 a month
A small bump in your savings rate can work wonders when time is on your side. (Reading time: 3 minutes)
And here’s where to find that $100
Try this online budget calculator to help decide where to spend your next paycheck. (Reading time: 3 minutes)
Making the most of your time
You can always make more money, but wasted time is gone forever. Here are some ideas for making the most of yours. (Reading time: 5 minutes)
Mike’s Pro Tip of the Week
Ask for higher limits on your credit cards. Even if you don’t need or plan to use it, a higher borrowing limit will lower your credit utilization and potentially lead to an increase in your credit score. The trick is not to tap that extra credit or make sure you can pay it off in full every month.
Words to the Wise
“A government that robs Peter to pay Paul can always depend on the support of Paul.”
George Bernard Shaw
Neither The Mike Brown Financial Group nor its employees provide tax and legal advice. Please consult your tax and legal advisors regarding your personal circumstances.
Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Mike Brown Financial Group is not a registered broker/dealer and is independent of Raymond James Financial Services.