Wealth and Wisdom: Week of May 22, 2023
Inflation continues to ease, but higher prices and rising interest rates are beginning to exact a toll on consumers and the economy at large.
Investors have been nervous about two additional things lately: (1) whether the debt ceiling showdown will turn from a self-inflicted political problem into a true fiscal crisis; and (2) the possibility that there might be more shoes to drop when it comes to regional bank failures.
Choose your crisis, or simply wait for the next one. Or try to stay focused on your long-term financial goals and objectives, something neither politicians nor bank executives seem overly interested in.
Is inflation mostly behind us?
This former economist shares some compelling reasons he believes the Fed should be cutting interest rates now instead of raising them. (Reading time: 3 minutes)
How to avoid ‘lifestyle inflation’
It’s what happens when your spending grows every time you get a raise – making it difficult to save for the future. (Reading time: 5 minutes)
Higher costs = deeper debt
Americans now owe almost $1 trillion in credit card debt at an average interest rate of nearly 21%. Add in student loans, mortgage, and auto loans, and our total debt exceeds $17 trillion. (Reading time: 2 minutes)
A strategy for rising rates
With this approach you won’t have to guess which way interest rates are heading when it comes to investing your short-term savings. (Reading time: 3 minutes)
Opportunities in SECURE Act 2.0
It’s potentially the most comprehensive retirement legislation in 40 years. Learn the highlights of SECURE 2.0 in this recent client briefing webinar. (Running time: 48:00)
Stock dividends keep rising
Stock prices are still down 14% since peaking 16 months ago – but dividends have risen to record levels. (Reading time: 2 minutes)
Retiring can be a shock
It starts with a lifetime of weekends and more money than you’ve ever had – but unless you’re prepared, retirement can quickly become disappointing. (Reading time: 3 minutes)
An estate-planning checklist
Here’s a list of 10 important documents you might need to get your financial affairs in order – and keep them that way. (Reading time: 6 minutes)
When they raise your LTC premium
Many policyholders are facing a tough decision: pay a lot more for long-term care insurance, or accept lower benefits. (Reading time: 8 minutes)
Before you buy that vacation home
How to look for a property, find ways to pay for it, and decide whether to rent it out. (Reading time: 4 minutes)
Words to the Wise
“Because stock prices nearly always sell on the basis of expected earnings growth rates, shareholders collect the dividend income for free. This advantage adds up year after year because when most investors, or Wall Street, or the media, make comparisons, they don’t include the yield. A dividend increase is one kind of ‘free plus.’”
– John Neff
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