Wealth and Wisdom: Week of January 22, 2024

What’s the latest worry facing investors while they await the quadrennial anguish of selecting a president? Right now, it appears to be China.

It’s the world’s second-largest economy, and it’s run by communists. It’s a major player in the global free market system, despite denying basic freedoms to its own citizens. And now some serious cracks are showing. China’s economy grew 5.2% last year, but that growth rate is slowing dramatically – brought on by a deepening real estate crisis and plunging consumer confidence. Its national population decline is accelerating.

Why should you care, especially if you don’t have money invested in China? Because there’s a good chance you actually do. Most of the largest U.S. companies – those that dominate the S&P 500 – do a lot of business in China. They make products there, sell goods and services there, and now China’s problems are hurting their bottom lines. For better or worse, if you own stocks, you have a vested interest in how this plays out.

For investors who need something to stress over at the expense of what really matters – their long-term financial goals – the latest news from China should be a sufficient distraction. If not, Super Tuesday is only six weeks away.

Are dividends back in style?

Dividend-paying companies took a back seat to high-growth technology stocks in 2023 – but some Wall Street strategists are looking for a comeback. (Reading time: 4 minutes)

Stock returns are inconsistent

In any given year, equity returns appear random. The longer you stay invested, however, the more likely you are to be rewarded for your patience. (Reading time: 3 minutes)

Easy money creates bad investors

Ultra-low interest rates encourages investors to take excessive risks – which can ultimately lead to lower returns. (Reading time: 3 minutes)

What happens to markets in election years?

Our Washington policy analyst says investors should pay attention to three key months. (Reading time: 6 minutes)

529 plans are better now

Starting this year, college savers can now roll unused 529 assets into a Roth IRA. Here’s how the new rule works. (Reading time: 3 minutes)

Making money online

If you have the time, here are 10 legitimate ways you might be able to create a stream of internet income. (Reading time: 5 minutes)

5 signs you’re not ready to retire

If any of these conditions apply to you, you might need to rethink your retirement plans. (Reading time: 7 minutes)

Retiring with your spouse

When it comes to a successful retirement, two heads are clearly better than one. (Reading time: 5 minutes)

Estate tax rules will change in 2026

The amount you’ll be able to pass estate-tax-free gets cut in half in less than two years. Here’s how to get out in front of the changes. (Reading time: 5 minutes)

Saving for long-term care

With sufficient savings, it’s possible to cover the potential high cost of long-term care without buying expensive insurance. Here are your options. (Reading time: 5 minutes)

Words to the Wise

“A mind once stretched by a new idea never regains its original dimension.”

– Oliver Wendell Holmes

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