Wealth and Wisdom: Week of March 27, 2023

Walking on eggshells now, the Fed is keeping up its campaign of hiking interest rates with a quarter-point increase last week. In the background, growing concerns about a fragile U.S. banking system and the negative impact rising rates are having on banks’ fixed-income portfolios. In light of those concerns, the Fed is hinting now that those rate hikes may be nearing an end.

There are more signs that the Fed has been successful at slowing down economic growth and inflation: home prices fell last month – for the first time in 11 years.

This week, a few quick reads on the moral implications of endless bailouts – and some actionable advice for retirees. Happy reading!

‘Is my money safe?’

Recent bank failures are unsettling many depositors. Here’s what to know about your bank – and how FDIC insurance works. (Reading time: 3 minutes)

Letting bad businesses fail

Succeed and reap the rewards. Make bad decisions and get a government bailout. What’s fair about that? (Reading time: 3 minutes)

The bill has come due

Many people blame the current banking crisis on an era of easy money and soaring debt. Will politicians ever get around to fixing it? (Reading time: 4 minutes)

When to consider breaking a CD

You’ll pay a penalty for early withdrawal – but sometimes it can make sense when interest rates are climbing. (Reading time: 3 minutes)

An affordable place to live

St. Louis has its share of problems, but compared with other major U.S. cities, inflation doesn’t seem to be one of them. (Reading time: 3 minutes)

Tax season: a time of opportunity

Whether you get a big refund this year – or wind up owing the IRS – this is a great time to make improvements in your finances. (Reading time: 2 minutes)

Can an all-stocks portfolio ever make sense?

The potential rewards can be greater, your decision should be based on when you’ll need the money – and how you’ll react when markets fall. (Reading time: 5 minutes)

Managing ‘sequence-of-return’ risk

It’s what happens when you’re forced to sell stocks at low prices to pay for retirement expenses. (Reading time: 4 minutes)

9 big myths about retirement

If you want some valuable perspective on what retirement is like financially – ask somebody who’s actually doing it. (Reading time: 4 minutes)

Donating IRA money to charity

Qualified charitable distributions (QCDs) can reduce the tax bite from your IRA distributions while doing some good for the world. (Reading time: 5 minutes)

Words to the Wise

“Buy a business any fool can manage, because eventually one will.”
Warren Buffett

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