On December 15, 2021, the Federal Open Market Committee (FOMC) of the Federal Reserve System made a significant shift in monetary policy in response to rising inflation. The Committee accelerated the reduction of its bond-buying program in order to tighten the money supply and projected three increases in the benchmark federal funds rate in 2022, followed by three more increases in 2023. Both steps were more aggressive than previous FOMC actions or projections.1 To understand how these steps … [Read more...]
Weekly Economic Update
In this week’s recap: Volatile week as Fed speaks of multiple rate hikes. THE WEEK ON WALL STREET Deteriorating investor enthusiasm for high-valuation growth companies and a mixed start to the fourth-quarter earnings season made for a volatile week. The Dow Jones Industrial Average lost 0.88%, while the Standard & Poor’s 500 slipped 0.30%. The Nasdaq Composite index fell 0.28% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, gained … [Read more...]
Outlook for 2022
It’s a new year, full of new possibilities for what may lie ahead. By any measure, 2021 was a strong year for investors. But what’s in store for 2022? From my perspective, I expect that many of the same forces that influenced markets last year will play a role again in the year ahead. COVID-19 remains tragic and unpredictable. The pandemic was one of the primary drivers of financial market activity in 2021. I hope that the worst is behind us, but I would not be surprised to see … [Read more...]
Updated Premiums and Deductibles for Medicare
This is the final week of open enrollment. As Medicare’s open enrollment period is due to end December 7, recipients of the program are preparing for a larger-than-expected jump in prices for premiums and deductibles.1,2 For example, Medicare Part B monthly premiums are set to rise to $170.10, a 14.5% increase and much higher than the estimate of 6.7%. The deductible for Part B will rise to $233, a 14.8% increase. The Part A deductible will increase to $1,556, up $72 in 2022.2 While … [Read more...]
Your Year-End Financial Checklist
Aspects of your financial life to review as the year draws to a close. The end of the year can help remind us of last-minute things we need to address and the goals we want to pursue. To that end, here are some aspects of your financial life to think about as this year leads into the next. Keep in mind, this article is for informational purposes only and is not a replacement for real-life advice. Make certain to contact a tax or legal professional before modifying your tax strategy. The … [Read more...]
Wise Decisions with Retirement in Mind
Certain financial & lifestyle choices may lead you toward a better future. Some retirees succeed at realizing the life they want; others don’t. Fate aside, it isn’t merely a matter of investment decisions that makes the difference. There are certain dos and don’ts – some less apparent than others – that tend to encourage retirement happiness and comfort. Retire financially literate. Some retirees don’t know how much they don’t know. They end their careers with inadequate financial … [Read more...]
The Social Security Administration Announces 2022 COLA
5.9% is the biggest COLA increase in decades. On October 13, 2021, the Social Security Administration (SSA) officially announced that Social Security recipients will receive a 5.9 percent cost-of-living adjustment (COLA) for 2022, the largest increase in four decades. This adjustment will begin with benefits payable to more than 64 million Social Security beneficiaries in January 2022. Additionally, increased payments to more than 8 million Supplemental Security Income (SSI) beneficiaries … [Read more...]
End-of-the-Year Money Moves
Here are some things you might consider before saying goodbye to 2021. What has changed for you in 2021? For some, this year has been as complicated as learning a new dance. Did you start a new job or leave a job behind? That’s one step. Did you retire? There’s another step. If notable changes occurred in your personal or professional life, then you may want to review your finances before this year ends and 2022 begins. Proving that you have all the right moves in 2021 might put you in a … [Read more...]
Fed Rescues September
Bond purchases may end entirely by the middle of 2022. A funny thing happened in the investment markets the other day. September was living up to its reputation as a volatile month, but then the Federal Reserve came to the rescue. The Fed concluded its Federal Open Market Committee meeting on Wednesday, September 22. It announced that it might start tapering its monthly bond purchases soon, perhaps as early as November, and could raise interest rates sometime next year.1 Before the Fed … [Read more...]
The Best, the Brightest, and Inflation
The Fed may be ready to alter course. If you are feeling a bit confused about the direction of inflation, you’re in good company. Some of the best and brightest economists in the country are having a tough time getting their arms around the current inflation trends. The most recent Producer Price Index reading came in above economists’ estimates at a record level of 8.3% compared with a year earlier. Producer prices can be an indicator of future price changes at the consumer level.1 One … [Read more...]