Wealth and Wisdom: Week of August 7, 2023

Playing politics has consequences.

Fitch Ratings has downgraded the nation’s credit rating from AAA to AA+. Why? “The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management,” Fitch said. Massive government deficits and the soaring federal debt burden can’t have helped, either.

Meanwhile, in a parallel universe, investors are getting euphoric over the idea that Fed policymakers have pulled off a magical “soft landing” by getting inflation under control without stalling the U.S. economy. Let’s all hope that one works out, but don’t let yourself be blindsided if and when a recession happens. Not that you should act on it, however – just be emotionally ready not to overreact to bad news.

Perhaps we can make some sense of it on the radio next weekend! The KMOX Money Show will air live this Sunday, August 13 from 3 to 5 p.m. I’ll also be talking about my new book, Your Way to True Wealth: How to Make It Happen, Make It Last, and Make It Matter. I hope you can join me.

6 out of 10 live paycheck-to-paycheck

Even with inflation receding, more than half of Americans say they are barely scraping by – and they’re taking on more debt to do it. (Reading time: 2 minutes)

Why can’t we save?

As I say in my new book, Your Way to True Wealth: How to Make It Happen, Make It Last, and Make It Matter, the key to saving more is to focus on how you spend. (Reading time: 5 minutes)

Car repair costs have jumped 20% in a year

The reasons are many: rising labor costs, lingering supply chain issues, more complex technology – and yes, the pandemic. (Reading time: 4 minutes)

Grad students are drowning in debt

Graduate degrees are supposed to be the ticket to better jobs with higher salaries – but for many it’s turning into an expensive pipe dream. (Reading time: 3 minutes)

…and it’s hurting their parents, too

More than half of parents say they might have to delay retirement after co-signing college loans for their children. (Reading time: 5 minutes)

How to boost confidence in your retirement plans

Take action in these four areas to increase your chances for a successful retirement. (Reading time: 5 minutes)

Designing a retirement spending plan

Begin with this list of 10 expenses you’ll likely face after you decide to stop working. (Reading time: 6 minutes)

Before you tap your home equity

If you’re thinking of borrowing against the equity in your home to cover a big expense, do these things first. (Reading time: 3 minutes)

Your financial legacy

There’s a lot to consider when it comes to leaving an inheritance. (Reading time: 4 minutes)

Teaching children about money

Managing money offers many lessons – about finances and life itself. (Reading time: 9 minutes)

Words to the Wise

“The next generation never learns anything from the previous one until it’s brought home with a hammer. I’ve wondered why the next generation can’t profit from the generation before, but they never do until they get knocked in the head by experience.”
- Harry Truman

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