Wealth and Wisdom Week of June 27 2022

Times seem pretty bleak lately. Inflation is still on a tear. The Fed has gone from tapping the economy’s brakes to slamming on them with both feet. And most economists now believe the U.S. is likely to suffer a recession in 2023.

A couple of key insights you should keep in mind, however. First, understand that the financial markets historically move in anticipation of economic conditions, good or bad. Stock prices often bottom when things are still gloomy. No one knows when that will be, of course, but it helps to know what to look for.

Second, realize that the more you react to all the bad news, the more it’s likely to hurt you. Abandoning your long-term investment plan might make you feel better in the short run, but it will probably lead to regrets that will last a long time.

‘4% Rule’ creator is now a market-timer

I’ve always had issues with this over-simplified approach to retirement spending – and now it may have lost its credibility altogether. (Reading time: 5 minutes)

Retiring into a bear market

If you’re about to retire, now is not the time to panic – but there are things you can do to make this bear market less damaging. (Reading time: 4 minutes)

For young investors, an opportunity

If you’re trying to build wealth, bear markets can be your best friend – and here are five things you can do to take advantage. (Reading time: 4 minutes)

Who’s making money when you buy gasoline?

Most of the cost of gasoline can be traced to crude oil prices – but the rest might surprise you. (Reading time: 4 minutes)

Inflation is hitting retirees hard

Their incomes aren’t keeping pace with rapidly-rising costs. (Reading time: 4 minutes)

Rate hikes: a bitter pill

The Federal Reserve is aggressively raising interest rates to combat inflation. This will not be a painless process. (Reading time: 9 minutes)

Mortgages are getting more expensive

Lending rates are up sharply, and the sizzling housing market is starting to cool down. (Reading time: 4 minutes)

Ignoring conventional retirement advice

When it comes to taking Social Security, downsizing your home, or paying off your mortgage, you might be better off not following the crowd. (Reading time: 5 minutes)

Medicare when you’re still working

Don’t assume that just because you’re still working at age 65 you don’t need to file for Medicare. The rules are a bit tricky. (Reading time: 4 minutes)

Mike’s Pro Tip of the Week

If you’re looking for a new job but aren’t sure what you’d like to do next, MyNextMove might be able to help. Answer a few questions about yourself and this government-sponsored website will give you guidance. You can also explore by career and industry, and there are special sites for veterans and people seeking apprenticeships.

Words to the Wise

“Your success in investing will depend on your character and guts – and in part on your ability to realize, at the height of ebullience and the depth of despair alike, that this too shall pass.”
– Jack Bogle

Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Brown Family Wealth Advisors and not necessarily those of Raymond James. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Expressions of opinion are as of this date and are subject to change without notice. Past performance does not guarantee future results. Prior to making an investment decision, please consult with your financial advisor about your individual situation.