Wealth and Wisdom: Week of May 9, 2022

The S&P 500 fell more than 13% in the first four months of this year- the worst start to any year since 1939. We know at least three things about market downturns: (1) they can be unsettling; (2) they are inevitable if not predictable; and (3) history tells us they are temporary.

What we don’t know about market downturns is exactly when or how they end – yet they always have. And one more thing we know for sure: the way to convert temporary volatility into permanent losses is to sell at today’s lower prices. Whether this pullback turns into something more serious remains to be seen – but now is not the time to let your emotions get the better of you.

Focus on what you can control

Market downturns can be scary – especially for retirees on a fixed income. Use these tips to help get you through. (Reading time: 6 minutes)

Squeeze more from your spending

With inflation at a 40-year high, you might need a plan to reduce expenses or supplementing your retirement income – maybe both. (Reading time: 4 minutes)

Inflation advice from Warren Buffett

The legendary investor believes the way to beat inflation is to ‘be exceptionally good at something’ – and invest in companies that do the same. (Reading time: 2 minutes)

One small silver lining from inflation

If you are putting money into a health savings account (HSA), you’ll be able to contribute hundreds of dollars more next year and thereafter. (Reading time: 2 minutes)

HSAs when you’re on Medicare

Congress may change the rules that prohibit you from HSA contributions once you enroll in Medicare – but it will be an uphill battle politically. (Reading time: 4 minutes)

Premiums may still be reduced

Regulators may still cut Medicare Part B premiums after a big increase this year, but you likely won’t see it until next year – if it happens at all. (Reading time: 3 minutes)

The pandemic created new women investors

A new survey shows the healthcare crisis is prompting women to take more control over their finances. (Reading time: 3 minutes)

Could the housing market crash – again?

Home prices and mortgage rates are zooming higher, but there are at least four reasons to believe the boom won’t end in a bust. (Reading time: 6 minutes)

Travel tips from a retired airline pilot

This is some great advice I’ll definitely be using the next time I fly. (Reading time: 3 minutes)

Mike’s Pro Tip of the Week

Follow Warren Buffett’s advice and start investing in yourself. One of the best place to get started is learning about money, investing, and personal finance. Here’s a great list of a dozen online finance courses you can take for free.

Words to the Wise

“Ancora imparo (I’m still learning).”
– Michelangelo

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