Wealth and Wisdom: Week of September 27, 2021

We got some big news out of the Federal Reserve last week, as expected. The Fed signaled that it could start pulling back on its massive pandemic stimulus program as early as November. You’re going to start hearing the term “taper” more often, and this is what they’re referring to.

If inflation persists, the Fed seems prepared to raise interest rates by the end of 2022.

And if economic growth continues to slow and prices keep rising, we could be in for some “stagflation” (see first item below), which would really put the Fed in a pickle.

Things are going to get interesting pretty soon. Hang in there – and have a great week!

Are we heading for ‘stagflation’?

It’s stagnant economic growth combined with high inflation – and if you were around in the 1970s, you don’t want any part of it. (Reading time: 6 minutes)

Americans eager to retire younger

A new survey says the average investor now wants to retire as early as 62. Whether they can afford to is another question. (Reading time: 3 minutes)

Social Security COLA could top 6%

The cost-of-living adjustment will be announced in late October, but most of the data for the calculation is already in the books. (Reading time: 2 minutes)

Long-term care needs vary widely

New research says 40% of 65-year-olds will need little or no long-term care – but another 25% will need expensive care for several years. (Reading time: 4 minutes)

Thinking of quitting your job?

Here are four things to take care of before you join the Great Resignation. (Reading time: 4 minutes)

$10 trillion in assets is sitting idle

Cash is earning next to zero right now – which means its value is eroding due to inflation. What’s keeping it there? (Reading time: 3 minutes)

What exactly is a fiduciary financial advisor?

This comprehensive article will help you separate the ones who talk the talk from the ones who walk the walk. (Reading time: 13 minutes)

Optimists and pessimists

Investors run the gamut from Pollyannas to gloom-and-doomers. Where do you fall on the spectrum? (Reading time: 4 minutes)

What to keep in your safe deposit box

They’re a secure, convenient place to store valuables – but some things don’t belong in there. (Reading time: 5 minutes)

Mike’s Pro Tip of the Week

Give your savings accounts a name. Behavioral finance experts say it’s human nature to use “mental accounting” to categorize different “pockets” of money. If that’s your tendency and you’re trying to save money for a specific goal, create different savings accounts and name them for the goals you are pursuing. Would you be more motivated to add to your “Trip-to-Tahiti” account or your “Money-I-shouldn’t-be-spending-right-now” account?

Words To The Wise

“If you have trouble imagining a 20% loss in the stock market, you shouldn’t be in stocks.”
John Bogle

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