Wealth and Wisdom: Week of February 21, 2022

We’re getting more discouraging news on inflation: prices at both the wholesale and retail levels are rising faster than they have in the last four decades. The Fed’s response will involve several interest rate hikes throughout 2022 and likely into 2023.

How can you protect yourself? By being more careful in how you spend your money (see this week’s Pro-Tip below), paying down credit card debt, and investing in companies that have the ability to pass their higher costs on to their customers. 

‘People are unhappy’

Rising inflation is hurting everyday Americans – and the head of the St. Louis Fed is worried the central bank isn’t responding fast enough.  (Reading time: 2 minutes) 

An interest rate primer

Here’s how it will work when the Fed starts raising interest rates next month – and how it might affect you.  (Reading time: 6 minutes) 

401(k) or credit card debt?

You might be tempted to pull money from your 401(k) to pay off credit cards before rates rise. Be very careful with your decision.  (Reading time: 4 minutes) 

Preparing for the ‘silly season’

Mid-term election campaigns will start soon – but don’t make the mistake of letting them rule your investment decisions.  (Reading time: 4 minutes) 

Before you change jobs

Calculate the true value of what your current job pays, including benefits. It might be more than the new one.  (Reading time: 6 minutes) 

Are you really ready to retire?

These three financial exercises can help you decide if you’re really ready for life after work.  (Reading time: 6 minutes) 

Making money last in retirement

Here are four tested methods for living off your retirement savings. See if any of them is right for you.  (Reading time: 8 minutes) 

Taking Social Security early

Delaying Social Security can dramatically increase your retirement benefits – but sometimes it might not be the best idea.  (Reading time: 3 minutes) 

Rethinking college

More and more American students are being priced out of a college education – but that doesn’t have to stop them from succeeding.  (Reading time: 4 minutes) 

Mike’s Pro Tip of the Week

Food costs are a big component of what’s driving inflation higher. With a little planning, however, you can find ways to cope. Here are four ideas for holding down the cost of a trip to the grocery store. 

Words to the Wise

“An economist is an expert who will know tomorrow why the things he predicted yesterday didn’t happen today.”

– Laurence J. Peter

 

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