You hear it all the time: you should make sure your retirement savings at least keep pace with inflation. But what is inflation and how does it really affect your retirement savings? Let’s explore. In simple terms, inflation is defined as an increase in the general level of prices for goods and services. Deflation, on the other hand, is defined as a decrease in the general level of prices for goods and services. If inflation is high, at say 10%
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Trying to reconcile the recent market advances with awful economic data U.S. stock markets continue to trend up as optimism returns to Wall Street while Main Street USA continues to reopen. Yes, there is plenty of social unrest around the country, geopolitical tensions with China are increasing and horribly negative economic data continues to be released almost daily, but the major U.S. markets are trading at levels not seen since the very early days of COVID-19. In fact, while the
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A Pew Research Center poll showed that most Americans are worried that their states are opening too early. In fact, the research shows that: 68% of Americans think that state governments will lift coronavirus-related restrictions on public activity too quickly 31% say that states will not lift restrictions quickly enough Unsurprisingly, the researchers noted that “views seem to be more divided along partisan and ideological lines.” Notwithstanding where we each stand, as states begin to reopen for business and while
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Success is achieved by time in the market, not in timing the market For the past two months, the market declines and market rallies have been historic, as COVID-19 introduced a level of uncertainty that was difficult to quantify, let alone predict. And if the stock markets hate one thing, it is uncertainty. Consider this: The stock market took just 23 days to drop 34% from its all-time high, the fastest bull to bear drop in history. During this time, the market ended negative 74% of the time. The stock market has
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A summary of the biggest economic bill in history for businesses The Coronavirus Aid, Relief, and Economic Security act – the CARES Act – is the largest economic bill in U.S. history and was designed to “provide emergency assistance and health care response for individuals, families, and businesses affected by the 2020 coronavirus pandemic.” Spanning close to 900 pages, the CARES Act builds upon earlier versions of federal government support and is the third such bill, coming shortly after the
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A summary of the biggest economic bill in history for individuals The Coronavirus Aid, Relief, and Economic Security Act – the CARES Act – is the largest economic bill in U.S. history and was designed to “provide emergency assistance and health care response for individuals, families, and businesses affected by the 2020 coronavirus pandemic.” Spanning close to 900 pages, the comprehensive aid package covers a lot, including direct payments to Americans, expanded unemployment insurance, changes to retirement rules, and billions
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Markets Close 1st Quarter of 2020 by Rewriting the Record Books The first quarter of 2020 is over and investors are glad that it’s in the rear-view mirror. Remember when your parents said, “if you can’t say anything nice, don’t say anything at all?” It was that kind of quarter. Here is a quick snapshot: The DJIA lost more than 23% for the quarter, its worst since the fourth quarter of 1987 It was the worst first quarter for the
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The Coronavirus Bear Kicked The 11-year Bull Off Of Wall Street Very Fast A “bear market” occurs when stock prices are falling, and then widespread pessimism sustains the continued drop in prices. The stock market becomes a bear market whenever stock prices have fallen over 20% from their previous highs, as seen in market indexes like the S&P 500. Investors lose confidence in the market as they anticipate further losses. A “bull market”, on the other hand, comes with rising stock prices and increasing investor confidence. Stock prices rise by at least
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Make sure they can certify your tax returns and have the right credentials Tax season looms, but who will prepare your return? If you don’t do your own, then make sure your preparer has the right professional designation. Two warning signs: If the person who prepares your return does not sign it, certifying that it is complete and accurate to the best of their knowledge; or, The preparer does not have one of the right credentials. Either way, beware. You
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On Thursday, February 27, 2020, stocks around the world fell sharply amidst a huge spike in volatility as investors were bombarded with more news about the coronavirus and its impact on corporate earnings and global economies. In the U.S., the major indices retreated into official correction territory, having dropped 10% from their recent highs earlier in the month. By the time the final bell tolled on February 27th, stunned investors saw that: The DJIA gave back 1,190 points and came
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