Wealth and Wisdom: Week of October 11, 2021
It was nice being with so many of you on the radio yesterday. The KMOX Money Show will likely be back on the air more frequently as baseball season tapers down over the next several weeks. And we welcome all the new Wealth and Wisdom subscribers who are joining us this week.
Congress continues to debate a plan to spend trillions of dollars to stimulate the U.S. economy, which appears to be growing at a nice clip already. Consumer demand for goods and services is well ahead of the economy’s ability to satisfy it – which explains all the shortages we’re seeing, and the inevitable inflation that comes with them.
All of which could be why stock prices have gotten more volatile recently. We would expect that to continue – along with the likelihood of a market pullback. But don’t let the attention-seeking “pundits” frighten you. Market corrections of 10% or more have historically happened every year or so – so predicting the next one is like predicting leaves will start changing their colors soon. Now that’s something to look forward to.
Have a great week!
Is the market prepared for inflation?
Jeremy Siegel, author of Stocks for the Long Run, believes the Fed is underestimating inflation – and its impact on future stock prices. (Reading time: 3 minutes)
‘The Growing Danger of Index Funds’
Many investors believe S&P 500 index funds are an easy way to diversify a portfolio. But 40% of the index is now concentrated in one volatile sector. (Reading time: 5 minutes)
Pandemic’s double-whammy for seniors
Older Americans are most at-risk to COVID’s ill effects – and now it seems they are just as vulnerable financially. (Reading time: 4 minutes)
Social Security surprises
Don’t let these four common misconceptions throw your retirement plans off-track. (Reading time: 3 minutes)
Tapping your IRA funds early
It’s usually costly to withdraw from a traditional IRA before age 59½ – but there may be ways to soften the blow. (Reading time: 4 minutes)
How to use your HSA in retirement
Health savings accounts offer special tax advantages and can be a valuable source of income in retirement. (Reading time: 6 minutes)
Everything you’ve ever wanted to know about Roth IRAs
This comprehensive overview explains the benefits of Roth IRAs and Roth 401(k)s. (Reading time: 9 minutes)
12 ways to pay off debt
Use these strategies to become debt-free – and stay that way. (Reading time: 5 minutes)
529 savings plan myths
If you think 529 plans have to be used for college – or that they keep your child from getting financial aid – please read on. (Reading time: 4 minutes)
Mike’s Pro Tip of the Week
How do you know when you’ve borrowed too much? When your total debt payments are more than 36% of your gross income each month. When your monthly housing payments exceed 28% of your monthly gross income. When consumer debt payments consume 20% or more of your monthly take-home pay. Or when your total student debt exceeds your annual gross income.
Words To The Wise
“When anyone has enough money not to work – it's usually because he does.”
Malcolm Forbes
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