Wealth and Wisdom: Week of December 27, 2021
Well, it would appear that we have nearly made it through another year. I hope 2021 made you wealthier and wiser than you were a year ago – and that 2022 brings you the greater peace and prosperity that you deserve.
Investors are still trying to make sense of the uncertainties that lie ahead: the extent to which an upswing in COVID cases will slow the economy, the persistent surge in inflation, and the Federal Reserve’s plan to raise interest rates to combat it in the new year. Stock prices will likely remain volatile until it all gets sorted out.
My advice to you as we forge ahead into the unknown: don’t overthink, don’t over-worry, and don’t overreact. Focus on developments that directly affect you; the world’s problems aren’t for you to solve on your own. Stick to your long-term plan, and if you don’t have one – make it a priority in 2022.
We’ll be here to help you, as always. Happy New Year!
An update on retirement legislation
Congress has stalled on the Build Back Better bill, but retirement reforms still have bipartisan support. Here’s where they stand now. (Reading time: 5 minutes)
BNPL plans face scrutiny
The Consumer Financial Protection Bureau is investigating ‘buy now, pay later’ loans – fearing they could lead to higher debt and data-harvesting. (Reading time: 3 minutes)
Positioning your portfolio for inflation
Trying to hedge your investments against rising inflation might cause you more problems than it solves. (Reading time: 4 minutes)
Paying for health care after you retire
Medical expenses are a major budget item for retirees. Here’s how to pay for what Medicare doesn’t. (Reading time: 5 minutes)
Buying a new home next year?
Competition among buyers is still fierce – but there are some ways to give yourself an edge. (Reading time: 4 minutes)
Lower your property taxes in 2022
If you don’t mind a little legwork – and paperwork – you might just be able to pay less in property taxes next year. (Reading time: 3 minutes)
A Roth IRA for your teenager
What better way to learn about saving, investing, and the magic of tax-deferred compounding? (Reading time: 5 minutes)
Finding money for college
College is expensive, but negotiable. Here’s where to start looking for help. (Reading time: 3 minutes)
The Biggest Companies in the World
Seven of the top 10 are U.S. companies – but I’ll bet a few of the names on this list will surprise you. (Reading time: 4 minutes)
Mike’s Pro Tip of the Week
If you want to get the Debt Demon behind you once and for all – keep making payments on loans after you’ve paid them off. But going forward, make those payments to yourself in the form of savings deposits. It works for credit card debt, student loans, mortgages, car loans – you name it. I have clients who make car payments to themselves every month, and when it’s time to get a new car, they pay cash for it.
Words to the Wise
“Those who cry out that the government should ‘do something’ never even ask for data on what has actually happened when the government did something, compared to what actually happened when the government did nothing.”
– Thomas Sowell
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