Wealth and Wisdom Week of November 7 2022

As expected, Federal Reserve policymakers increased short-term interest rates by 75 basis points, or three-quarters of a percent – and signaled that they may slow the pace of future rate hikes.

With that news out of the way this week, investors will now be focusing on Tuesday’s midterm elections – and the next in a series of corporate earnings announcements.

Meanwhile, inflation and the rising interest rates that accompany it continue to reshape the financial landscape.

New interest rate for I-bonds

The Treasury has lowered what these bonds pay for the next six months – but at nearly 7%, it’s still one of the highest rates ever. (Reading time: 1 minute)

Contribution limits increase

Here’s one upside to higher inflation: it means you’ll be able to contribute a lot more to your retirement savings plans next year and beyond. (Reading time: 3 minutes)

Higher rates driving up U.S. debt

We were told that massive government borrowing wouldn’t be a problem as long as interest rates remain low. So what happens now? (Reading time: 5 minutes)

How millionaires build wealth

He spent five years interviewing 225 millionaires – and he discovered the three habits that set them apart. (Reading time: 3 minutes)

Think twice about taking COBRA

It’s a valuable safety net for maintaining health insurance after you leave your employer – but it might not be the cheapest option. (Reading time: 2 minutes)

Negotiating insurance rates

Haggling with your insurance company – sounds like a great way to save some money. Problem is, it’s a myth. (Reading time: 3 minutes)

How to think about Roth IRA conversions

This year’s market downturn is creating opportunities to build up your tax-free investments. Pain today could mean gain in the future. (Reading time: 3 minutes)

Retiring solo

Whether you’re divorced, widowed, or simply single – retirement poses some unique challenges. (Reading time: 6 minutes)

Doing well by doing good

Charitable gift annuities allow you to make a tax-advantaged gift to a charity while creating a stream of retirement income for yourself. (Reading time: 4 minutes)

Mike’s Pro Tip of the Week

We’re heading into the time of year when it’s hard to hold back on spending – but thanks to inflation, the stakes are really high this year. That’s why it’s important to be strategic. For example, whether you’re buying groceries or holiday gifts, always shop from a list. Before you make big purchases, give yourself 48 hours to look for deals and promotions, and download any coupons that might be available. Delaying your buying decision could also help you make certain it’s how you want to spend your money.

Words to the Wise

“Never spend your money until you have it.”
– Thomas Jefferson

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.