A digest of news from publications around the nation about finance, investing, and retirement.
If your idea of effective financial advice sounds like a fitness instructor who pushes you to get better, read this article. The author pairs time-tested wisdom with some important hard truths. The importance of saving for the future, for example, is a universally accepted money mantra but isn’t universally achieved. Excuses for not saving wither under the author’s tough observation: “Accept that living below your means requires suppressing your ego to below your income.”
Pop quiz: At what age can you contribute more to your 401(k)? What’s the earliest you can leave your job and start withdrawing from your 401(k)? When do you need to sign up for Medicare? For answers to these and other age-related retirement questions, consult this summary from US News.
Inflation has held relatively steady for years. The last time the inflation rate swung 5% up or down in one year was 1990. This radio piece from NPR addresses the question: will COVID-19 change this? Trying to read traditional economic metrics isn’t as easy in current conditions. We’re simultaneously experiencing a supply shock, as businesses shut down for months reducing output, and a demand shock, as millions of people lost jobs, hours, and those who didn’t still were reducing spending. A recovery is unlikely to be linear, as hot spots pop up and are put down. “There are so many things broken in our economy that our future depends on which one of them gets better first,” said host Robert Smith. “If demand picks up first before supply you get inflation. And if supply is raring to go but there’s no demand, we might get deflation.”
After a tumultuous March and April, the stock market roared back in May and June. Meanwhile, millions remain out of work. Is the worst over? Will the recent uptick in cases have ramifications for investors? This analyst can’t predict where we’re going but won’t be surprised if we see turbulence along the way.