Wealth and Wisdom: Week of January 9, 2023

So here’s the new narrative as we enter 2023: tamer inflation, an end to rising interest rates, fewer job openings, and a mild recession. And just like New Year’s resolutions, the new narrative probably won’t last very long.

Two-thirds of economists who work for major financial institutions now believe there will be a recession in 2023, and most of them are predicting the downturn will be “shallow” or “mild”. As a group, they expect the economy and stock prices to rebound later this year, with corresponding gains in both the equity and fixed-income markets (Wall Street Journal, Jan. 3, 2023). This comes after the worst year for stocks since 2008, and the worst year for bonds since, well… ever.

As always, we plan to have lots of good information, resources, and advice to help you cope with whatever gets thrown at you in the year ahead.

Make emergency savings your priority this year

In times of economic uncertainty, a cash reserve can be your best friend. Here are 5 ways to start building one. (Reading time: 4 minutes)

Holidays add to debt problems

Millions of Americans are starting 2023 in the hole – thanks to a big jump in holiday credit card spending. (Reading time: 3 minutes)

New law could help with emergencies

SECURE Act 2.0 – recently signed into law – allows you to pull up to $1,000 from a 401(k) or IRA without penalty for a financial hardship. (Reading time: 7 minutes)

SECURE 2.0 brings big retirement changes

Higher RMD ages, lower penalties if you don’t take them, higher catch-up contributions – they are all now the law of the land. (Reading time: 4 minutes)

Should you delay your RMDs?

The new law pushes required minimum distributions from age 72 to age 73 – and eventually to age 75. But that doesn’t mean you should wait. (Reading time: 3 minutes)

Financial resolutions for 2023

To see and hear what I’m advising our clients to do this year, watch this client briefing webinar recording. (Running time: 57:24)

Older and unappreciated

While many of their younger counterparts believe working should be optional, older Americans would like to take their jobs – but can’t. (Reading time: 5 minutes)

Managing sequence-of-return risk

The market doesn’t know you’re about to retire. Here’s how to keep the odds of success on your side. (Reading time: 4 minutes)

Thrifty After Fifty

Here’s how a growing number of seniors are learning to help each other control their expenses. (Reading time: 7 minutes)

How to check out your tax preparer

Did you know the IRS keeps a database of qualified tax preparers? Use this directory to check their credentials before tax season. (Reading time: 1 minute)

Words to the Wise

“On what principle is it, that when we see nothing but improvement behind us, we are to expect nothing but deterioration before us?”
– Thomas Babington

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