Wealth and Wisdom: Week of November 6, 2023

We’ve recently seen all three of the major equity indexes – the S&P 500, Dow Jones Industrial Average and Nasdaq Composite – dip into correction territory, with declines of more than 10% from their recent highs. That’s not to be confused with a bear market, which is defined by declines of 20% or more. In fact, the market has yet to fully recover from the bear market of 2022, which began on January 3 of last year.

Not that this has much to do with long-term equity investors, other than making it easier to find some bargains in the market’s discard pile. If you are trying to accumulate wealth, corrections and bear markets can help you more than they hurt in the long run. But first you’ve got to get past all the gloom-and-doomers who come out of the woodwork in times like these. Our first item below might help give you some helpful perspective.

Even a broken clock is right twice a day

You can pay attention to market forecasters, or you can pay attention to history. Only one of them is on your side. (Reading time: 4 minutes)

The financial state of American families

Where do you stand compared to the rest of the country when it comes to income, net worth, debt, home ownership, and investing? (Reading time: 3 minutes)

Your 401(k) can now help with college costs

A new rule says pre-tax contributions to retirement accounts no longer count as income in determining how much financial aid your child qualifies for. (Reading time: 3 minutes)

The old-school way to build wealth

Money has the power to make more money over time – if you are willing to do your part. (Reading time: 4 minutes)

A warning about Roth IRA conversions

Withholding taxes on a Roth conversion is a questionable strategy – especially If you are younger than 59½. (Reading time: 3 minutes)

Paying off your mortgage in retirement

Here’s when it makes sense – and when it doesn’t – to pay off your mortgage once you’re retired. (Reading time 6 minutes)

No, Social Security isn’t broke

The system needs fixing – and soon – but contrary to what many people think, Social Security is not running out of money. (Reading time: 3 minutes)

What you might not know about Medicare

For example, it isn’t free, you don’t always have to sign up when they tell you to, and most of the time, it won’t help you outside the U.S. (Reading time: 5 minutes)

The 6-month savings challenge

Try this plan to see how much money you can keep for yourself over the next six months. (Reading time: 7 minutes)

90 years of financial wisdom

When Byron Wien talked, Wall Street listened. And now we won’t get to anymore. (Reading time: 7 minutes)

Words to the Wise

“Never retire. If you work forever, you can live forever. I know there is an abundance of biological evidence against this theory, but I’m going with it anyway.”

– Byron Wien

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The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Brown Family Wealth Advisors and not necessarily those of Raymond James. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Expressions of opinion are as of this date and are subject to change without notice. Past performance does not guarantee future results. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

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