Wealth and Wisdom: Week of October 18, 2021
We learned some astonishing news in recent days: 4.3 million Americans voluntarily quit their jobs in the month of August. The mass exodus is being led by bar, restaurant, and retail workers, and it’s the highest number ever recorded.
They are trying to improve their lives with better pay and working conditions, and as employers try to meet their demands to fill job openings, it will cost them more – and those costs will be passed along to the rest of us. It’s the world’s largest economy trying to sort itself out after more than a year-and-a-half of pandemic-related interruption, and it can be a painful process likely to last a while longer.
As I advised some newly-retired clients last week, we can’t understand – much less solve – all the world’s problems. Instead, focus on the things that directly impact your world, and find ways to adapt to the changes we’re all facing.
I hope Wealth and Wisdom will be a timely and valuable resource for you in the weeks to come. Have a fantastic week!
This could be a strange holiday season
Inventories are low, deals are scarce, and delivery schedules are suspect. Shop early and protect yourself from overspending. (Reading time: 4 minutes)
Selling online? The IRS is watching you
New tax-reporting rules go into effect in 2022 – and even small-time income will be automatically reported to the government. (Reading time: 3 minutes)
Rents are on the rise
The cost to rent a home is up nearly 10% nationwide this year – even sparking bidding wars in some markets. (Reading time: 3 minutes)
Lower U.S. birth rates might damage economy
Women gave birth to fewer children during the COVID-19 pandemic – which could have a lasting impact on retirement and Social Security benefits. (Reading time: 4 minutes)
Even a broken clock is right twice a day
Author and “investment guru” Robert Kiyosaki is calling for a “giant market crash” in October. The problem: he’s been making the same prediction for over a decade. (Reading time: 5 minutes)
Medicare open enrollment is underway
If you want to make changes in your coverage, now’s the time to do it. Here’s what to expect this year. (Reading time: 6 minutes)
Did you receive an ‘ANOC’ letter?
Medicare recipients receive an Annual Notice of Change that spells out any changes in coverages, costs, and service areas. (Reading time: 2 minutes)
How to choose a health insurance plan for your family
Okay, big article here. Lots of information to work through at your leisure if you’re trying to find affordable health care coverage. Good stuff. (Reading time: 22 minutes)
The world’s most valuable brands 2021
As this graphic illustrates, the biggest are getting bigger. (Reading time: 3 minutes)
Mike’s Pro Tip of the Week
We live in a world where banks pay something around 0.50% interest per year on savings accounts – and Americans are happy enough today to keep trillions of dollars in them. You might think it’s risk-free, but after accounting for taxes and rising inflation, you are losing purchasing power every day, which is its own form of risk. Here’s a better idea: determine the minimum dollar amount you need to protect you from an emergency, and invest the rest as appropriate for your other financial goals. Money has enormous power to compound in your favor, but only if you allow it to.
Words To The Wise
“All the greatest gains in life – in wealth, relationships, or knowledge – come from the magic of compounding interest – amplifying small, steady gains. All you need for abundance is to keep adding one-percent more than you subtract on a regular basis.”
Kevin Kelly
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