Wealth and Wisdom: Week of November 20, 2023

If you’re wondering why your portfolio isn’t keeping up with the S&P 500 this year, you are in some excellent company. Through the first 10 months of 2023, the Bloomberg US Aggregate Bond index is down more than 2%. And if you owned an equal dollar amount of every stock in the S&P 500, you would be down about the same amount.

But investors are comparing their portfolio performance – as they sadly often do – to the S&P 500 index (up more than 10% through October), which is overwhelmingly dominated right now by the so-called Magnificent Seven technology stocks. So if you are disappointed in your results so far this year – it might be because your portfolio is properly diversified.

In other words, in this long race between the tortoise and the hare, the hare has pulled away. And historically, the farther ahead it gets, the greater the risk to the market.

For this week at least, however, let us ponder neither tortoise nor hare, but on the turkey – or whatever might grace your Thanksgiving feast in a few days. I’ll be back with you with more Wealth and Wisdom in two weeks, thankful as ever that you find value in reading it.

What’s so wrong with ‘normal’?

The economy – and the markets – are slowly getting back to normal after the pandemic. So why are we so anxious about what’s happening? (Reading time: 4 minutes)

Stock prices have gone up most of the time

Whenever you get nervous about the market’s short-term performance – and who doesn’t – keep this illustration handy. (Reading time: 2 minutes)

What to do if you have an interest-only mortgage

Here are four options to consider if your mortgage is about to reset to a higher interest rate. (Reading time: 3 minutes)

2024’s new tax brackets

For the second straight year, the IRS is shifting income limits for each of its seven tax brackets due to the rising cost of living. (Reading time: 3 minutes)

What you need to know about RMDs this year

If you haven’t taken the required minimum distribution from your retirement accounts this year, read this article while there’s still time. (Reading time: 8 minutes)

Social Security estimates may be way off

If you’ve been on the Social Security website recently for a projection of your benefits, you might want to double-check them. (Reading time: 1 minutes)

Is it a COLA or a pay cut?

Many seniors will see next year’s Social Security cost-of-living increase eaten up by even higher expenses – notably for healthcare. (Reading time: 5 minutes)

Medicare vs. Medicare Advantage

The annual open enrollment period ends December 7. Here are the key differences you’ll need to consider if you want to make a change. (Reading time: 5 minutes)

Gen Z’s new retirement hack

FIRE is out; YOLO is in. Would someone remind me to check back in a few years to see how the “soft saving” approach worked out? (Reading time: 4 minutes)

Alternatives to the Mint budget app

Here’s a follow-up to last week’s news that Mint’s popular app is going away: 9 simple and free budgeting tools to keep your spending under control. (Reading time: 8 minutes)

Words to the Wise

“As we express our gratitude, we must never forget that the highest appreciation is not to utter words, but to live by them.”

– John F. Kennedy

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