Wealth and Wisdom: Week of January 24, 2022
There is some good news and bad news this week, along with a nice piece of research on how dividend-paying stocks have historically performed as a hedge against inflation.
We’ll dispense with the bad news first, and then get on to the good stuff.
IRS is overwhelmed
As tax season approaches, the IRS has yet to process millions of returns from last year – and is warning of even bigger delays in 2022. (Reading time: 4 minutes)
Are some colleges price-fixing tuition?
A new lawsuit accuses 16 colleges of fixing prices, minimizing financial aid, and inflating costs to appear exclusive. (Reading time: 4 minutes)
Inflation was way worse last time
Recent price spikes are the sharpest we’ve seen in nearly 40 years – but today’s inflation pales in comparison to the 1970s and early 1980s. (Reading time: 6 minutes)
And now some good news…
Medicare Part B premiums might be reduced this year after the price of an expensive new Alzheimer’s drug was cut in half. (Reading time: 2 minutes)
…and pension plans are in great shape again
The 100 biggest employer pension plans are now almost 100% funded – thanks to better investment returns since the 2008 financial crisis. (Reading time: 4 minutes)
Deep dive: dividends and inflation
Research shows that stock dividends have historically been a better inflation hedge than more conventional approaches. (Reading time: 3 minutes)
Raiding the piggybank
Nearly a third of Americans have withdrawn from their retirement funds early – which could turn out to be an expensive mistake. (Reading time: 4 minutes)
If you need more retirement income
Here are three strategies for generating additional cash flow in retirement. (Reading time: 3 minutes)
Big mistakes wealthy investors make
Having lots of money won’t protect you from making bad decisions. (Reading time: 5 minutes)
Mike’s Pro Tip of the Week
They say time is money, but in truth – money is time. And once you calculate what an hour of your time is worth, you might want to consider paying someone else to do some of the chores you’ve been handling. Here are five areas where it might make sense to hire out.
Words to the Wise
“The wages of sin are death, but by the time taxes are taken out, it's just sort of a tired feeling.”
Paula Poundstone
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