Wealth and Wisdom: Week of September 13, 2021

Inflation at the wholesale level – known as the Producer Price Index – came in above expectations on Friday. They increased at an annual rate of 8.3 percent in August, the biggest increase in more than a decade.

We’ll get another key reading on inflation this week with the Consumer Price Index for August set for release tomorrow. And next week we may get a better idea what the Federal Reserve plans to do about it. The Fed’s open market committee holds its two-day meeting on September 21-22.

Beyond that, we start looking for changing leaves, old sweaters, and new chili recipes. Have a fantastic week!

The retirement crisis

A new report says nearly 700,000 retirees have fallen behind on their mortgages. (Reading time: 2 minutes)

Scam alert: Crypto

The SEC is warning consumers about a rise in investment-related fraud involving cryptocurrency and other digital assets. (Reading time: 3 minutes)

Other ‘fad’ investments

Cryptocurrencies, cannabis, SPACs – it seems there’s never a shortage of ways to gamble with your life’s savings. (Reading time: 4 minutes)

Which retirement account is best for you?

Understanding the differences between 401(k) plans, traditional IRAs, and Roth IRAs. (Reading time: 6 minutes)

The downside of pensions and annuities

If your expenses aren’t going to be fixed in retirement, why should your income be? (Reading time: 7 minutes)

Will your Social Security benefits be taxed?

That depends on your other sources of income – even if it’s tax-free. Here’s how to calculate it. (Reading time: 3 minutes)

When you inherit someone’s IRA

New rules make it trickier to decide how soon to withdraw the funds and what taxes you will owe. (Reading time: 4 minutes)

Stop living paycheck-to-paycheck

The pandemic has put a lot of people on a financial treadmill – but there are little things you can do to start getting ahead. (Reading time: 5 minutes)

Teaching your kids about money

Here are some clever ways to teach children – at different ages – how to make and manage their own money. (Reading time: 6 minutes)

Mike’s Pro Tip of the Week

Use the price-to-rent ratio to see if it’s more cost-effective to purchase a home or rent one. How to calculate it: Say you can afford to pay up to $300,000 to buy a house, and you can rent something comparable for $1,000 per month, or $12,000 per year. Your price-to-rent ratio would be 25x (300,000 divided by 12,000). When the ratio exceeds 15x, you’ll likely be better off financially by renting.

Words To The Wise

“When America’s early pioneers first turned their eyes toward the West, they did not demand that somebody take care of them if they got ill or got old. They did not demand maximum pay for minimum work, or even pay for no work at all.”
Oprah Winfrey

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