Wealth and Wisdom: Week of November 15, 2021
Hello again to all of you who joined me on KMOX yesterday afternoon! And welcome to all of you who are reading Wealth and Wisdom for the very first time.
With each passing week, we seem to get more confirming evidence that inflation is here to stay a while. Wholesale prices – as measured by the October Producer Price Index – are now accelerating at a record pace, thanks to supply chain bottlenecks and shortages of materials. The Consumer Price Index, which tracks the retail prices you and I pay, was up 6.2% in October. We are now seeing more inflation than we have in more than 30 years.
Don’t overreact to these events by making wholesale changes to your investment strategy, but be prepared for prices to continue increasing for a while. And it’s now likely we will see the Fed hike interest rates at least once during 2022. We will continue keeping you informed and helping you cope financially with what lies ahead.
Have a great week!
2022 contribution limits for IRAs, 401(k)s
Higher limits for employer retirement plans – no such luck for IRAs and Roth IRAs, although more of us will qualify for tax breaks next year. (Reading time: 4 minutes)
Happiness factors for retirees
Research shows the happiest retirees have liquid assets, no debt, multiple income sources – and a reason to get up in the morning. (Reading time: 6 minutes)
4 strategies to help you get there
If you want to be a happy retiree one day, take these steps while there’s still time. (Reading time: 4 minutes)
Or maybe don’t retire at all!
There are at least five reasons to keep working for as long as you are able – and I plan to be right there with you. (Reading time: 3 minutes)
Building your retirement spending plan
Here’s a process for deciding how much money you’ll need to enjoy retirement – and where to find it. (Reading time: 5 minutes)
Busting myths about Social Security
Don’t fall for these common misperceptions about filing for Social Security benefits. (Reading time: 3 minutes)
Debt can be a pain – literally
New research out of Mizzou says the more money you owe, the more likely you are to suffer from physical pain. (Reading time: 4 minutes)
Do bonds make sense anymore?
With interest rates at historic lows, bonds probably won’t make you rich. But most investors cannot afford to ignore them. (Reading time: 4 minutes)
How to set financial goals
Yogi probably said it best: “If you don’t know where you’re going, you might wind up someplace else.” (Reading time: 12 minutes)
Mike’s Pro Tip of the Week
Don’t have a clue about how much of your income you should be spending – and on what? Use the simple “50/30/20 rule” to get you started: spend no more than 50% of your after-tax income on things you need, no more than 30% on things you want, and at least 20% for savings and paying down debt.
Words To The Wise
“I think everybody should get rich and famous and do everything they ever dreamed of – so they can see that it’s not the answer.”
Jim Carrey
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