The Retired Investor: Wealth Effect Cuts Both WaysBy Bill Schmick,
04:54PM / Thursday, May 26, 2022 | |
Economists know that consumers spend more when their wealth increases, even if their income remains the same. However, if wealth decreases, the opposite occurs.
The concept, known as the wealth effect, has spurred the economy for well more than a decade as savers' 401(k) and other retirement accounts increased year after year. At the same time, real estate values have also risen. Of course, most of the time these gains are only paper profits unless you sell your house or withdraw money from your portfolios.
Nonetheless, there is a behavioral element to this concept. People tend to spend more when stocks and housing prices continue to climb 0 Comments
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The Retired Investor: Interest-Only mortgages Risky In Rising Rate Environment.By Bill Schmick,
10:06AM / Saturday, May 21, 2022 | |
Over the past decade, as interest rates declined, some home buyers gravitated towards interest-only loans. However, times are changing, and borrowers should be careful in considering this kind of mortgage loan.
During the past two years, many financial lenders have tightened credit standards across most loan types. The combination of the coronavirus pandemic, supply shortages, inflation and the impact of the Ukraine war has created a drag on the U.S. economy. A slowing economy increases the risks of lending, thus tighter standards emerge.
Fannie Mae and Freddie Mac, the two government-sponsored enterprises that back most mortgages exclude interest-only 0 Comments
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The Retired Investor: Roe v. Wade Versus Corporate AmericaBy Bill Schmick,
04:21PM / Thursday, May 12, 2022 | |
The impending Supreme Court decision to strike down Roe v. Wade will have enormous ramifications for American corporations. Legal issues, user data privacy practices, and workforce challenges will prove impossible to ignore.
Businesses of all kinds face the following facts: most Americans (53 percent), according to a recent Washington Post-ABC News poll, believe the Supreme Court is wrong and that the court should uphold the landmark ruling that established a constitutional right to abortion. Only 28 percent believe it should be overturned.
Nonetheless, if the Supreme Court hands down its expected decision to overturn Roe v. Wade, 13 states have trigger laws 0 Comments
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The Retired Investor: Cryptocurrencies & Your Retirement AccountsBy Bill Schmick,
04:04PM / Thursday, May 05, 2022 | |
Investing in cryptocurrency has been legal in some retirement accounts since 2014. Few if any entities, however, have offered savers this option. That may be changing.
The IRS issued Virtual Currency Guidance back in 2014. Since then, cryptocurrencies have been considered acceptable assets for self-directed IRAs (SDIRA) and Solo 401(k)s. A self-directed IRA, which represents less than 3 percent of all IRAs, is a type of Individual Retirement Account that can hold a variety of alternative investments normally prohibited from regular IRAs. It can invest in things like precious metals, real estate, private placements, and cryptocurrencies. It is directly managed by the 0 Comments
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The Retired Investor: ShrinkflationBy Bill Schmick,
04:30PM / Thursday, April 28, 2022 | |
By now, you may have noticed that something doesn't look quite right on your grocery shelves. Could be that bag of chips, or maybe that roll of toilet paper seems to have shrunk? Let me assure you it is not your eyes; we have all come down with a bad case of shrinkflation.
Shrinkflation is an actual term, according to Wikipedia, which means "a rise in the general price level of goods per unit of weight or volume, brought about by a reduction in the weight or size of the item sold." I must admit that, until recently, the shrinkage that has now become commonplace in most grocery stores and supermarkets, thanks to a generational high in the inflation rate, went 0 Comments
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