Wealth and Wisdom: Week of March 20, 2023

What a difference a week makes. The sudden failure of three banks with heavy exposure to the tech sector and cryptocurrency might give the Fed a reason to ease up on its campaign of hiking interest rates. Last week’s report that inflation fell to 6% in February – its eighth straight monthly decline – might sway the decision as well.

Deeper, longer-lasting concerns remain, however – especially as to the strength of the U.S. banking system and why so many lessons learned in the 2009 financial crisis seem to have been forgotten or ignored.

Bank failures: what happens now

Recent bank failures will likely have ripple effects on the economy, interest rates, and stock prices for some time to come. (Reading time: 8 minutes)

Is this another bank bailout?

Technically, no. But promising to insure bank deposits beyond FDIC limits might place the government in a role some say it shouldn’t be playing. (Reading time: 6 minutes)

A strategy for owning bonds

The “bond ladder” strategy takes some of the guesswork out of selecting maturities – and today’s volatile interest rates are making it more popular. (Reading time: 3 minutes)

Another bonus from SECURE 2.0

This new law allows you to use leftover college money to start saving for retirement – with some limitations. (Reading time: 3 minutes)

Time to adjust your tax withholding

If you’re getting big income tax refund this year, use this IRS online calculator to fine-tune your withholding in the future. (Reading time: 1 minute)

Pay off student loans or invest for retirement?

In the end, you need to do both. But here’s how to decide which should take priority now given your current situation. (Reading time: 5 minutes)

And which credit card to pay off first?

The one with the highest interest rate, or the one with the smallest balance? (By the way, I prefer the ‘avalanche’ approach.) (Reading time: 6 minutes)

Money can make you happier

But only up to a certain level of income, according to new research – and there are no guarantees. (Reading time: 4 minutes)

Retirees' a new hobby: Keep away from IRMAA

It involves keeping their income below the level that triggers higher Medicare premiums. Anyone over 65 can play. (Reading time: 3 minutes)

What to keep in your safe deposit box

Here’s an exhaustive list of what you should consider keeping at the bank under lock and key. (Reading time: 10 minutes)

Words to the Wise

“The three enemies of happiness: hurry, worry, and debt.”
Newell Dwight Hillis

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