Wealth and Wisdom: Week of January 31, 2022
There’s a lot going on right now: Russia’s military build-up near Ukraine, the Fed planning to hike interest rates as early as March, persistent inflation, and volatility pushing stock prices toward correction territory.
We’ve got a lot of meaty content for you this week, with longer reading times than usual. I encourage you to focus on the pieces below that directly impact you – and find the information in them that might help you through whatever challenges and concerns you’re facing right now.
And if you want to talk with me directly about it, set a reminder to tune in to The KMOX Money Show this Sunday, February 6, from 3 to 5 p.m.
What you should know about corrections
They happen more often than you might think, and they are a natural – sometimes even healthy – part of the business cycle. (Reading time: 8 minutes)
Preparing for tough times
If the recent market volatility turns into something more serious and prolonged, you will benefit from having a plan ready. (Reading time: 7 minutes)
Where inflation is hurting the most
Inflation may well moderate later this year – but several essentials have seen spiking prices that may be with us for a while. (Reading time: 3 minutes)
How long will it take to get your tax refund?
Despite a huge backlog and warnings about delays, the IRS says most Americans will get their refunds withing 21 days – if we do our part. (Reading time: 6 minutes)
What’s new on Form 1040
A lengthy article – but worth a skim to see which changes apply to you this year. (Reading time: 24 minutes)
Factoring in your RMD
Required minimum distributions can have a huge impact on your tax situation – especially if you don’t need the money. (Reading time: 5 minutes)
Roth IRA conversions
One strategy to lower future RMDs involves paying taxes before you have to. Here are the nuts and bolts of converting to a Roth IRA. (Reading time: 8 minutes)
Hedging against higher interest rates
With the Fed poised to raise rates later this year, consider using a “bond ladder” to help manage the risks of owning fixed-income investments. (Reading time: 4 minutes)
Job opportunities for retirees
Another long read – but it will only take you a few minutes to scan it for some ideas you can use to earn extra money in retirement. (Reading time: 20 minutes)
Mike’s Pro Tip of the Week
Qualified workers are in great demand and short supply right now – a big advantage if you’re in the job market. The next time you get an offer, don’t be afraid to politely make a counter-offer on salary and benefits. Employers expect it and will likely negotiate with you – as long as you don’t turn it into an ultimatum.
Words to the Wise
“Big opportunities come infrequently. When it’s raining gold – reach for a bucket, not a thimble.”
Warren Buffett
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