Looking To Teach a Child Some Important Money Lessons? Consider a Roth Custodial IRA. You started early and have saved hard in your 401(k). You’ve also paid close attention to your investing strategy over the years. And you definitely understand the benefits of tax-deferred compounding over the long term and the potential for growth. Heck, you’ve even remembered to change your account password every 90 days. Maybe now it’s time to pay it forward and pass along some of your retirement savings wisdom!
The Setting Every Community Up for Retirement Enhancement Act of 2019, popularly known as the SECURE Act, was signed into law in late 2019. Now called SECURE Act 1.0, it included provisions that raised the requirement for mandatory distributions from retirement accounts and increased access to retirement accounts.
A divorce can have a profound impact on your finances. We outline key considerations for maintaining your financial health as you proceed through the process.
Long-term care includes a whole host of services that you may require to meet various personal needs. And eventually, around [[https://acl.gov/ltc 60%]] of us will need assistance with things many take for granted, according to the Administration for Community Living, a division of the U.S. Dept. of Health and Human Services.
October is now behind us and it has delivered on its track record as a historically favorable month for stocks, offering some respite for investors as major equity indices rose for the month. The downside pressure on equities had gotten a bit overdone after investor pessimism during September reached lows not witnessed in quite a few years. From a contrarian perspective, extreme pessimism can often be followed by a market bounce. Such a reaction can...
Way, way back at the beginning of the Common Era, Epictetus offered some advice that remains relevant today:1 “It's not what happens to you but how you react to it that matters.”
So far, 2022 looks like it will go down in the history books as one of the worst years for stocks, bonds, and 60/40 portfolios ever. With nowhere to hide (except possibly in commodities), it is no wonder that people may feel despondent, at the very least. Yet, history tells us that staying invested is often the most rewarding course during periods of market turmoil. Let's review four points to keep in mind when talking about turbulent markets.
First, we want to acknowledge the tremendous damage and displacement caused by Hurricane Ian. Our thoughts are with those impacted by this devastating storm. This has clearly been a challenging year for households. Stocks and bonds are both down significantly. Elevated food and gas prices continue to stretch budgets, and higher interest rates have increased borrowing costs. But we continue to see signs that the worst may be behind us. Gas prices are falling. Inflation pressures stemming from supply chain disruptions are easing. And the Federal Reserve (Fed) has taken these price increases seriously and is doing its job by raising short-term interest rates. While the Fed may still gradually increase rates throughout this year, it has already done a lot even as asset prices have come under increasing pressure.
When it comes to stock market performance, August was “the best of times, and the worst of times.” The strong market rally that peaked in mid-August was viewed by many analysts as a transition from a bear to bull market, based on the surge in breadth that stocks enjoyed and the magnitude of the two-month rally that began in mid-June totaling 17%.
Make sure you think about potential disruptions and plan ahead of time.
With inflation continuing to grow, the Federal Reserve’s battle against it isn’t ending anytime soon. Higher interest rates make it harder for families and businesses to borrow money. Balancing inflation and interest rates is a complex issue and has a big influence on your wallet.
Markets rarely give us clear skies, and there are always threats to watch for on the horizon, but the right preparation, context, and support can help us navigate anything that may lie ahead. So far, this year hasn’t seen a full-blown crisis like 2008–2009 or 2020, but the ride has been very bumpy. We may not be flying into a storm, but there’s been plenty of turbulence the first part of 2022. How businesses, households, and central banks steer through the rough air will set the tone for markets over the second half of 2022.
