Wealth and Wisdom: Week of February 7, 2022
The volatility continues on Wall Street as investors try to calibrate the impact of high inflation, rising interest rates, and the recent COVID surge on the economy. We were spoiled in 2021, which will go down as one of the best-performing, lowest-volatility years we have seen in decades. Don’t look for a repeat performance in 2022.
Have a great week!
What rising rates might mean for you
Borrowing costs are likely to increase this year – but so might the rate you earn on savings deposits. (Reading time: 4 minutes)
If you have an adjustable-rate mortgage
Now’s the time to brace for higher mortgage payments – or consider refinancing. (Reading time: 4 minutes)
What you should know about market corrections
They are more common than you might realize – and completely survivable if you are mentally prepared. (Reading time: 4 minutes)
New RMD tables this year
The IRS has updated life-expectancy assumptions, and that means lower required minimum distributions from retirement accounts. (Reading time: 3 minutes)
Finding qualified tax help
What to look for – and what to look out for – when it comes to hiring a tax professional. (Reading time: 6 minutes)
Handling an inheritance
Inheriting a lot of money can change your life – and make it more complicated. Here’s what you need to know. (Reading time: 9 minutes)
3 reasons to update your estate plan
The pandemic has triggered renewed interest in estate planning. When’s the last time you looked at yours? (Reading time: 5 minutes)
The rising cost of long-term care insurance
What do you do if the insurance company wants to sharply raise the premiums on your LTC policy? (Reading time: 9 minutes)
Your 2022 reading list
If you want to become more financially literate this year, here some ideas for your bookshelf. (Reading time: 6 minutes)
Mike’s Pro Tip of the Week
With employers scrambling to hang onto their workers, year-end pay raises have gotten more common. If you’re earning more money in 2022, now’s the time to bump up what you’re putting into your retirement savings plan at work – especially if you’re not taking full advantage of matching contributions from your employer. Here’s a helpful guideline: whatever percentage your income increased this year, bump up your savings rate by at least half that amount.
Words to the Wise
“When your outgo exceeds your income, your upkeep becomes your downfall.”
Jim Rohn
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