Author: admin

Can You Borrow Money From Your 401(k) Plan?

Nov 8, 2023

If you have a 401(k) plan at work and need some cash, you might be tempted to borrow or withdraw money from it. But keep in mind that the purpose of a 401(k) is to save for retirement. Take money out of it now, and you’ll risk running out of money during retirement. You may also face stiff tax consequences and penalties for withdrawing money before age 59½. Still, if you’re facing a financial emergency — for instance, your child’s college tuition is almost due and your 401(k) is your only source of available funds — borrowing or withdrawing money from your 401(k) may be your only option.

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Market Update – Call it a Comeback?

Nov 6, 2023

• Oversold conditions and tumbling interest rates have brought buyers back into equity markets this week. The S&P 500 has recaptured its closely watched 200-day moving average (dma).
• Historically, index returns following a move back above the 200-dma have yielded positive but underwhelming returns, suggesting crossovers should be used more as a confirmation of trend than a binary trading signal.
• Seasonal tailwinds could keep this recovery moving forward. The S&P 500 has generated an average return of 7.0% from November through April, marking the best six-month return period for the market since 1950.
• While the comeback in stocks this week has been constructive, there is more technical work to do before considering that the correction is complete. Specifically, we are watching for the S&P 500 to clear resistance at 4,400, for market breadth to expand, and for 10-year yields to reverse their current uptrend.

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Market Update: The Fed Remains Unchanged Again

Nov 3, 2023

In a unanimous decision yesterday, The Federal Reserve (Fed) left interest rates unchanged following its Federal Open Market Committee (FOMC) meeting. This marks the second straight meeting in which a rate hike was skipped, however, Chair Jerome Powell, didn’t rule out future increases. For now, the target rate remains at 5.25%-5.50%. Markets reacted positively to the news as stock prices rallied and bond yields fell. (more…)

Market Update: Spending Growing Faster Than Income

Oct 30, 2023

• Adjusted for inflation, consumers increased spending in each of the last four months while real disposable income fell over the same period. Clearly, this can’t last much longer.
• Auto incentives brought in buyers last month as real spending on goods was driven by spending on autos, both new and used. The use of incentives obviously has implications for profit margins in the near future.
• Not surprisingly, international travel was the largest contributor to the increase in real services spending in September. Airlines should not expect this level of spending in coming months.
• The annual core inflation metric decelerated to 3.7% from 3.8% in August and 4.3% in July.
• Markets will likely struggle with processing the sharp 0.8% monthly rise in restaurant and hotel prices, the highest rate since October.
• Bottom Line: Although consumer prices rose faster than expected from a month ago, core inflation continues to lose speed and this report will not likely change the Fed’s view that inflation will slow in coming months as demand slows. Eventually, spending will moderate after consumers spend more than they earn for several more months.

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Healthcare in Retirement?

Oct 25, 2023

At any age, health care is a priority. When you retire, however, you will probably focus more on health care than ever before. Staying healthy is your goal, and this can mean more visits to the doctor for preventive tests and routine checkups. There’s also a chance that your health will decline as you grow older, increasing your need for costly prescription drugs or medical treatments. That’s why having health insurance is extremely important.

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Tags: a, Health Care Needs

Market Update: Powell Tries to Calm Markets

Oct 23, 2023

Key Takeaways:

• The Federal Open Market Committee (FOMC) is proceeding carefully, something we highlighted here almost a month ago.
• Geopolitical tensions post key risks to the outlook, something that could ensure the Federal Reserve (Fed) takes a wait-and-see approach with further tightening.
• Additional hikes are in the cards only if there is additional evidence of a strong economy.
• The Fed is not yet convinced where inflation will settle over the next few quarters, which means the committee will not pre-commit. Each meeting will be a live meeting.

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How Do I Evaluate an Early Retirement Offer?

Oct 16, 2023

In today’s corporate environment, cost cutting, restructuring, and downsizing are the norm, and many employers are offering their employees early retirement packages. But how do you know if the seemingly attractive offer you’ve received is a good one? By evaluating it carefully to make sure that the offer fits your needs.

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Do I Qualify for Home Office Deduction?

Oct 13, 2023

Working from home can certainly provide you with personal benefits, such as a flexible schedule and more family time. But increasing numbers of people are discovering the tax advantages as well. It’s no secret that you generally can’t deduct certain personal expenses (e.g., homeowners insurance, utilities, and home repairs) on your federal income tax return. But if you’re using part of your home as a home office, you may be able to write off part of these expenses. To qualify for the home office deduction, you must first understand the IRS requirements.

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Market Update – Assessing Potential Market Impact of Israel-Hamas War

Oct 11, 2023

On Saturday, Hamas, a Palestinian militant group designated as a terrorist organization by the U.S. government, launched an attack on Israel, killing hundreds of civilians and taking dozens more hostage. In response to the attack, Israel launched a counteroffensive on Hamas positions in the Gaza Strip (one of two Palestinian territories, the other being the West Bank), a territory home to 2.3 million Palestinians under Hamas rule. (more…)

How Much Money Do I Need in Retirement?

Oct 9, 2023

You know how important it is to plan for your retirement, but where do you begin? One of your first steps should be to estimate how much income you’ll need to fund your retirement. That’s not as easy as it sounds, because retirement planning is not an exact science. Your specific needs depend on your goals and many other factors.

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