Wealth and Wisdom: Week of September 26, 2022
As expected, Federal Reserve policymakers raised interest rates by 75 basis points last week. And that came after the benchmark 10-year Treasury rate hit a 10-year high and 30-year mortgages broke the 6% mark for the first time since 2008. The Fed is now playing a dangerous game of chicken against U.S. economic growth.
Other interesting trends we are seeing this week:
- Your heating and electric bills could jump sharply this winter, thanks to a doubling of natural gas prices this year (see first item below).
- Automakers were skeptical about the demand for electric cars a few years ago – and now they can’t build them fast enough to keep up with surging demand. (Wall Street Journal)
- Home sellers are increasing choosing to rent out their properties instead of lowering prices in the face of rising mortgage rates and shrinking demand.
- Workers are heading back to the office at the highest rate since the pandemic began. Why? Covid-19 infection rates have fallen, and employers now have more leverage.
A cold and expensive winter ahead?
American families will pay about 17% more on average this winter to heat their homes. (Reading time: 3 minutes)
How to save money on food
Food prices are increasing at a double-digit pace. Here are some tips for saving more at the grocery store. (Reading time: 4 minutes)
Living frugally without looking cheap
Here are 15 low-profile ideas for spending less without looking like a total tightwad. (Reading time: 8 minutes)
Inflation’s silver lining for retirees
Social Security’s cost-of-living increase won’t be announced until October – but 2023’s COLA could be the largest ever. (Reading time: 3 minutes)
Get ready for Medicare open enrollment
From October 15 to December 7, you can make changes to your Medicare plan. Here’s what you should be thinking about now. (Reading time: 2 minutes)
10 great rules for retirement
Successful retirement isn’t all about the money. (Reading time: 4 minutes)
To save or to shred?
Here’s a comprehensive guide for which financial documents to retain, for how long, and where to store them. (Reading time: 5 minutes)
The success habits of ‘super-savers’
They save at least 15% of their income and fund their retirement plans nearly to the limit each year. Here’s how they do it. (Reading time: 3 minutes)
Mike’s Pro Tip of the Week
For every item you never use and would love to give away, there’s a person looking for a sweet deal. You should both try these websites: Craigslist (click ‘Free’ in the ‘For Sale’ category, Buy Nothing Project, the Freecycle Network, OfferUp (download the app and search for ‘Free’, and Nextdoor.
Words to the Wise
“If there is any one thing that will bring peace and contentment into the human heart, and into the family, it is to live within our means. And if there is any one thing that is grinding and discouraging and disheartening, it is to have debts and obligations that one cannot meet.”
– Heber J. Grant
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.