Blog
Market Timing: Gotta Be Right Twice, Twice
Market timing requires a skill that’s almost impossible to master.An investor not only has to determine when stock prices have peaked (so you can sell), but also when they have bottomed (so you can buy).In recent weeks, many people...
Read MoreNew Retirement Contribution Limits for 2026
The Internal Revenue Service recently released new limits for 2026. Although these adjustments won’t bring any major changes, there are some minor elements to note.Individual Retirement Accounts (IRAs)IRA contribution limits are up...
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2026 Federal Tax Updates Announced
When the One Big Beautiful Bill (OBBB) Act was passed on July 4, the legislation left several unanswered questions that the IRS is now addressing. The IRS undergoes this process every year, but this time around, the OBBB has added to...
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AI Valuation Concerns
As an investor, should you be more concerned about the value of your groceries or artificial intelligence? It may seem like a silly question, but there’s a serious answer. One way to measure a stock’s valuation is by looking at what’s...
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What's the Purpose of a Retirement Strategy?
“What’s the purpose of a retirement strategy?” It’s a simple question, but most get the answer wrong. Artificial intelligence got it wrong. AI Gemini says, “The purpose of creating a retirement strategy is to act as a comprehensive,...
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3 Critical Words: Adjusted for Inflation
“Adjusted for inflation” is a phrase you may think isn’t important. But when you see it in action, you might change your mind. Let’s examine how “adjusted for inflation” has affected a couple of tax rules and their impact on Social...
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What Happens When the Fed Adjusts Rates?
Hardly a day goes by that someone doesn’t say to me, “I’m putting off a decision until the Fed changes interest rates.” But I’m quick to remind people that the “rate dominoes” don’t always fall as you may expect. Here’s what could...
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Shipping Traffic to US Nears an All-Time High
Sometimes unconventional indicators can shed some light on what’s happening with the economy. As you can see, traffic from 20-foot ocean containers is at its highest level since January 2022. That’s a solid rebound from earlier in the...
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Is TINA Managing Your Money?
Who the heck is TINA? TINA is an acronym that stands for “There Is No Alternative” to stocks. And for most retirement-minded investors, TINA is their money manager. As you can see, 71% of 401(k) account balances were allocated to...
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Upbeat Inflation Report Lost in Tariff Shadow
The March consumer inflation report, which showed some prices at their lowest level in more than four years, was overlooked among all the tariff headlines. Core inflation, which excludes the volatile food and energy factors, rose at a...
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Rainy Days & Mondays (& Fridays) Gets Stocks Down
The price action in this year’s stock market has me humming the 1970s tune by The Carpenters called “Rainy Days and Mondays.” As the chart shows, Mondays and Fridays have been awful for investors, while the mid-week days have...
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Why So Bearish?
“Be fearful when others are greedy and greedy when others are fearful” is one of my favorite quotes by Warren Buffett. His words of wisdom encourage investors to be contrarian. He challenges investors to “go against the grain” when...
Read MoreWhat is the Social Security Fairness Act?
You may have heard about the recently signed Social Security Fairness Act and wondered what it was and how it might affect you.The Social Security Fairness Act eliminates two longstanding provisions for Social Security: the Windfall...
Read MoreWhat will 2025 hold?
With 2024 coming to a close, I want to share my thoughts on America's current fiscal policy, geopolitical elements, and other factors that may help shape 2025's financial landscape. This transition period offers both challenges and...
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Fed Cuts Rates; Focuses on Dual Mandate
The Federal Reserve approved its second consecutive interest rate cut following its November meeting, telling investors that it’s continuing its push to “right-size monetary policy.” The benchmark Fed funds rate has a target range of...
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Rainy-day Money
When I meet with people, one of the first topics we discuss is "emergency fund" money. I ask a few questions, such as, “Do you have any funds set aside?”, “Where is it located?”, and, most importantly, “What would trigger you to tap...
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Jackson Hole: The Time Has Come for Policy to Adjust
Now the only question is, “How much will short-term interest rates drop in September?” At his annual speech to global central bankers in Jackson Hole, Wyoming, Fed Chair Powell laid out a strategy to cut short-term interest rates, but...
Read MoreHow to Be an Olympian
As the Olympic Games are being held this year in Paris, I thought it would be interesting to explore how the Olympians earn their chance at gold, silver, or bronze. It turns out that, just like in the world of finance, the path to the...
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Does Newton’s Law of Inertia Apply to Economics?
The challenge with managing inflation is that there are no brakes. Nothing can make inflation “stop on a dime” and then resume at a nice, predictable two-percent annual rate. Policymakers can only guide inflation to pursue a desired...
Read MoreIs Social Security Going to Run Out in Your Lifetime?
We get regular updates on the Social Security trust fund. In early May, the Social Security Board of Trustees announced that the trust funds had revenue to pay full benefits until 2035. Generally speaking, the headline's tone is very...
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How Much Do You Need to Retire?
I don’t know about you, but every time I see headlines that say, “Top 10 Reasons” or “How Much Do You Need,” I click on it. So when I saw the CNBC article, “You’ll need at least $1 million to retire comfortably in these 10 U.S. States...
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It’s Feeling Like a Goldilocks Moment
Economists describe a Goldilocks economy as one that’s not too hot and not too cold; it’s just right. And 2024 is starting to feel just right. When the Fed started to raise short-term interest rates in early 2022 to rein in inflation,...
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The Fed’s Drive to 2% Inflation
Wall Street keeps asking, “When will the Fed start cutting interest rates?” But perhaps the better question is, “What is the Fed looking for before it would consider cutting interest rates?” As you may recall,...
Read MoreSEC Approves Bitcoin ETFs
The Securities and Exchange Commission (SEC) in early January made it easier to own Bitcoin, putting a smile on some faces but causing furrowed eyebrows on others.1 Mainstream investors have long wanted a way to buy and sell Bitcoin...
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Consumers Expect Better Days Ahead
Many consider the University of Michigan the gold standard for reporting on consumer sentiment and trends. Among its 50 monthly reports, the most well-known is the "UMich Consumer Sentiment" survey, which measures consumer confidence....
Read MoreIRS Releases 2024 Tax Brackets, Retirement Contribution Limits
The Internal Revenue Service recently released updated income tax brackets, standard deduction, and retirement contribution limits for the 2024 tax year. While these taxes are not due for some time, it may benefit you to start...
Read MoreGuiding the Boomerang Generation
I've seen the "Boomerang Generation" in more than a few headlines lately. These young adults return, or "boomerang," to their parents' homes as they attempt to navigate the property market. The key culprit is mortgage rates nearing...
Read MoreFortifying Your Digital Defenses
In light of the recent cyberattack in Las Vegas, I want to address an increasingly critical issue in today's digital age: cybersecurity. Hackers are increasingly using a tactic known as "social engineering," which involves hacking...
Read MoreThe 401(k) Millionaires Club
The stock market rebound has significantly increased the number of workers with $1 million or more in their workplace retirement accounts. According to Fidelity Investments, employees with 401(k) balances exceeding $1 million rose 26...
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Why the Drop in Inflation Was Such a Big Deal
Sometimes, a picture is worth 1,000 words. So I decided to include an image of the June Consumer Price Index (CPI) report to help put inflation in better perspective: Core CPI, which excludes volatile food and energy prices, rose just...
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Fed Hits Pause Button on Rate Hikes
Jerome Powell skipped an interest rate hike at the Fed’s June meeting, but the market isn’t buying what the Fed Chair is selling about what’s next with short-term rates.Powell signaled that two more rate increases may...
Read MoreHaving Financial Conversations with Adult Children
A recent survey reported that 68% of parents had made financial sacrifices to support their adult children. It's often a difficult decision that can stress relationships, impact retirement strategies, and harm overall financial...
Read MoreFeds Managing SVB, Inflation
For the Federal Reserve, credibility is everything. And its credibility is being tested by how it plans to manage the banking system in the days leading up to its March 21-22 meeting.Last month, Fed Chair Powell confidently told Wall...
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Is the Bear Market Over?
"Is the bear market over?"That's a question I've been asked a number of times in recent weeks. And my answer is the same, "Let's give it a little time."But people are quick to remind me that stocks are off to a good start in 2023,...
Read MoreNew Retirement Contribution Limits for 2023
The Internal Revenue Service has released new limits for the coming year. After months of high inflation and financial uncertainty, some of these cost-of-living-based adjustments have reached near-record levels.Individual Retirement...
Read More1.02 Billion Reasons to Be Prepared
What would you do with a windfall? It’s a question I’ve read or heard a lot lately. Considering the Mega Millions jackpot has now grown to $1.02 billion, it’s safe to say most of us have thought about what it would be...
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