Wealth and Wisdom: Week of December 18, 2023

Treasury Secretary Janet Yellen says she believes the U.S. economy has now achieved a “soft landing” – a rare feat that involves getting inflation under control and maintaining a strong labor market, all without a significant economic slowdown. The Federal Reserve is getting credit for successfully engineering a series of interest rate increases – “pumping the brakes” enough to slow down the car without putting it into a skid.

Last week’s good inflation report will allow the Fed to coast for a while, even though inflation remains above pre-pandemic levels. There doesn’t seem to be any justification to cut rates yet, despite what the bond market is signaling (see Item 2 below).

While we wait for the next step on the long road back to normalcy, there are a few items in this week’s Wealth and Wisdom that might need your attention in the days ahead. Once they are checked off, we hope you can enjoy a warm and joyous holiday.

What recession?

A dwindling number of bankers, economists, and strategists are still calling for a recession – but the evidence is lacking so far. (Reading time: 4 minutes)

Interest rates are falling

The Fed may be sitting on the fence about the future direction of interest rates – but the financial markets have already decided. (Reading time: 2 minutes)

Use it or lose it

If you have money in a flexible spending account (FSA) to spend before year-end, here are 7 ideas for putting it to good use. (Reading time: 4 minutes)

Understanding the wash sale rule

Now might be a good time to sell stocks at a loss for tax purposes. Just be sure you wait long enough before buying them back. (Reading time: 4 minutes)

Help for tax season

Here are some updated online resources from the IRS that could make filing your taxes easier in the new year. (Reading time: 1 minute)

Take your RMDs ASAP

Time is running out if you are required to take distributions from any retirement plans this year. Here’s what you need to know. (Reading time: 7 minutes)

Which industries have good retirement benefits?

See if the industry you work in is known for generous retirement plan benefits. (Reading time: 4 minutes)

Bravo, Missouri

The Show-Me State earns top grades for requiring high schoolers to learn something about money before they graduate. (Reading time: 3 minutes)

The most charitable nation in the world

Despite inflation pressures, Americans gave nearly half a trillion dollars to charitable causes last year. (Reading time: 1 minutes)

Charlie Munger was no fan of crypto

In one of the last interviews before he died, investment legend Charlie Munger equated cryptocurrency promoters with drug dealers and scam artists. (Reading time: 2 minutes)

Words to the Wise

“I tell my father’s story of the gambler who lost regularly. One day he hears about a race with only one horse in it, so he bet the rent money. Halfway around the track, the horse jumped over the fence and ran away.”

– Howard Marks

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