Wealth and Wisdom: Week of May 20, 2024

People who want to retire all want to know three things:

1. Do I have enough money?
2. How much can I spend each year?
3. How should I invest in retirement?

If you’re planning to retire soon – or perhaps you recently retired – circle this date on your calendar: Saturday, June 8. We’re holding another Help Me Retire workshop that will help you get the answers to all three of these key questions. Wealth and Wisdom subscribers will be getting a personal invitation by email soon, but if you want us to hold a seat for you, visit our website now and let us know you plan to attend.

Retirees are getting impatient waiting for inflation to cool off (see first item below), and last week’s news showing only a modest improvement didn’t make them feel much better. It’s especially concerning for those who settled for a fixed income when they retired. Our workshop will explain the fallacy of trying to live on a fixed income in a rising-cost retirement and help you avoid that huge mistake by following a goals-based investing approach. I hope you can join us.

Retirees are worried about inflation

A new survey finds that two-thirds of retirees worry about outliving their assets – and persistent inflation isn’t helping to ease their fears. (Reading time: 2 minutes)

IRS boosts HSA limits for 2025

Health savings accounts offer three big tax advantages – and you might be able to contribute even more to them next year. (Reading time: 2 minutes)

Long rate pauses have been good for stocks

The Fed’s higher-for-longer approach to interest rates isn’t necessarily a negative for long-term equity investors. (Reading time: 5 minutes)

Election year market myths

The idea that the market will crash if your candidate loses the election is among many myths that don’t stand up to historical scrutiny. (Reading time: 4 minutes)

Climbing the market’s ‘wall of worry’

It’s hard for some investors to understand how stocks can be near record highs given today’s headlines. But success requires looking past them. (Reading time: 3 minutes)

What long-term investment returns look like

This colorful chart dramatically illustrates how investors have been rewarded for their patience. (Reading time: 2 minutes)

New Roth 401(k) rules could trigger tax surprises

It all depends on whether your employer’s Roth 401(k) match is made before or after taxes. (Reading time: 3 minutes)

Today’s retirees are heading out-of-state

Roughly one of every four Americans move to a different state when they retire. Here are their top-5 choices. (Reading time: 3 minutes)

10 items for your retirement spending plan

Where will you be spending your money once you stop working? (Reading time: 5 minutes)

Caring for your aging parents

Here’s a 7-step guide to help you navigate the often-stressful process of providing care for elderly parents. (Reading time: 4 minutes)

Words to the Wise

“If… you decide to invest in stocks directly or with a mutual fund with a one-year horizon or a two-year horizon, that’s silly. That’s just like betting on red or black at the casino. What the market’s going to do in one or two years, you don’t know. Time is on your side in the stock market. It’s on your side.”

– Peter Lynch

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