Wealth and Wisdom: Week of September 19, 2022
Investors got a major surprise – actually a shock – last week when the Consumer Price Index for August showed a slight increase. Prices were up just 0.1% for the month, but the markets were expecting them to fall by the same percentage.
That all but makes certain that the Federal Reserve will hike interest rates another 75 basis points (0.75%) when it meets on Wednesday. In fact, there’s now a real possibility that the Fed will have to raise rates above its 4% target in order to bring inflation under control. And that increases the odds of an economic slowdown.
Waiting for the rally
Many believe that whenever the inflation rate does start falling – stocks may do just the opposite. (Reading time: 4 minutes)
Getting a jump on holiday shopping
Shoppers are buying this year before prices go even higher – and they are actively looking for ways to stretch every dollar they spend. (Reading time: 4 minutes)
A credit card strategy for inflationary times
Credit-card use is climbing along with prices – but here’s how to leverage them to combat inflation. (Reading time: 6 minutes)
Are college rankings a rigged game?
U.S. News & World Report is coming under fire for putting colleges’ wealth and exclusivity ahead of how well they educate students. (Reading time: 8 minutes)
Roth IRAs for early-career investors
Take advantage of Roth IRA contributions as soon as possible after you start working. You may not always have the option. (Reading time: 3 minutes)
Pay for college or save for retirement?
Listen to your flight attendant – and make sure your mask is secure first. (Reading time: 3 minutes)
Why you should check your Social Security statement
There’s a lot more on this valuable report than just how much money you’ll receive when you retire. (Reading time: 4 minutes)
Is it time to downsize your home?
Here’s how to make a side-by-side comparison of your current and future housing options. (Reading time: 10 minutes)
Financial lessons from the pandemic
In my latest blog post, I outline half-a-dozen insights we all should have gained from living through the last few years. (Reading time: 3 minutes)
Mike’s Pro Tip of the Week
It pays to use self-checkout at the grocery store. A recent study by IHL Consulting Group discovered that you are less likely to make impulse purchases when you scan yourself – probably because you’re paying more attention to what you’re buying and how much you’re paying. Plus, you won’t be as tempted by the gum and magazine racks at the cashier stand.
Words to the Wise
“A democracy cannot exist as a permanent form of government. It can only exist until the voters discover they can vote themselves largess from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury.”
– Alexis de Tocqueville
Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.
The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Brown Family Wealth Advisors and not necessarily those of Raymond James. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Expressions of opinion are as of this date and are subject to change without notice. Past performance does not guarantee future results. Prior to making an investment decision, please consult with your financial advisor about your individual situation.