Calm 'N Cent$

"Speaking at a meeting of the Kansas Bankers Association in Colorado, Bowman — a former Kansas banking regulator — said she expects “that additional rate increases will likely be needed to get inflation on a path down to the [Federal Open Market Committee]’s 2% target.”

Don't be afraid. Be prepared. Know what could be coming and learn how to best position yourself for success.

Fed's Bowman says more interest-rate hikes will likely be needed The Federal Reserve will likely need to raise interest rates even higher to bring inflation down to tolerable levels, Fed Gov. Michelle Bowman said Saturday.

I'll add 2 points to this list.
1) Adjust your expenses and your income by the DAY. Take what your income is AFTER expenses, and give yourself a dollar number of what you are going to allow yourself to spend every day to avoid spending more than you'll have left over after your expenses are paid. This will focus your financial decisions and put all your purchases into perspective. Perspective is key!
2) Check your bank account FIRST thing in the morning. We always check social media, the news, or our favorite show before we check what ALLOWS us to have all the "extras". Prioritize your funds and assets to be the first thing you deal with because everything else flows from there. Everything else is a distraction. The thing you focus on the most gets the most attention and statistically, tends to grow the most.
Check out this article and I hope it helps you!

8 Steps To An Organized Financial Life Disorganization makes planning difficult, and that can cost you big-time. Follow these eight steps to an organized financial life.

I have a principled problem with paying interest. Not because I think it's evil (though some might make that argument). No. My issue is with the idea that that money could be better spent elsewhere in my portfolio, in my business, or in my life. Now, I like the EFFECTS of calculating my costs as it pertains to interest. It focuses me and forces me to decide what is most valuable in my life and where my resources would be best spent. Fundamentally, this introspection is derived from a concept called "Opportunity Cost". Check out this concept and learn why thinking this way is so valuable here:

Opportunity Cost Formula, Calculation, and What It Can Tell You Opportunity cost is the potential forgone profit from a missed opportunity—the result of choosing one alternative and forgoing another.

The Fed plays a heavy role in our economic ecosystem. It's important to conduct even marginal research if you're interested in making good financial decisions.

Jerome Powell remarks today: Fed chair testifies before Senate on inflation, speeding up rate hikes Powell tells Congress the Fed could raise interest rates more than anticipated to tame inflation. Price increases and job growth have surged lately.

"Suppose the annual return is 9%, which is closer to historical averages for a 30-year period. With a $5,000 principal investment and $100 monthly contributions, the portfolio grows to $229,907.44. If the investor is able to save $200 a month for contributions, the future value of his portfolio is $393,476.48."
Give up a little, and get a lot. Check out this great article!

Investing $100 a Month in Stocks for 30 Years Find out how you could potentially earn hundreds of thousands of dollars just by investing $100 a month in stocks during your working years.

This is part of my mission. I want people to know that there is uncertainty even in the idea of social security. Already benefits can and regularly do get taxed, but you may not be able to draw full retirement until a later age. One of the solutions is to focus on multiple sources of retirement funding. IRAs are one of those tools. Work on as many retirement funding sources as you can. Your future self will thank you!

Lawmakers consider plan to raise Social Security's full retirement age to 70 According to a media report, the potential proposal calls for creating a sovereign-wealth fund and changes to ways benefits are calculated.

https://www.investopedia.com/terms/f/fundamentals.asp
Understanding Market fundamentals can help you make your best move. Nothing is ever 100% certain, but we can use certain metrics to point us towards a set of good choices.

What Are Fundamentals? Types, Common Analysis Ratios, and Example Fundamentals consist of the basic qualitative and quantitative information that underlies a company or other organization's financial and economic position.

Hey, we've got to live a little. But I can't lie, this is a great feeling!

"I believe historical evidence shows yet again why equities should form the foundation of any investment strategy. Equities offer growth potential, a store of value, and some measure of protection against inflation, not to mention the magic of compounding. Bonds have proven valuable as well, historically returning around 5% a year,"

How to protect your money from inflation | Portfolio plan | Fidelity As the global economy reopens, it's good time to think about adding some inflation protection to your portfolio. Learn more here.

https://www.capitalgroup.com/individual/planning/investing-fundamentals/time-not-timing-is-what-matters.html
"The chart below shows two hypothetical investments in the S&P 500 over the 20-year period ending December 31, 2018. Each investor contributed $10,000 every year. One investor somehow managed to pick the very best day (the market low) of each year to invest. The average annual return on that investment would have been 9.16%. The other investor was not so lucky and actually picked the worst day (market high) each year. Even with the worst investment timing, the average annual return would have been 6.91%. At the end of 20 years, the cumulative investment of $200,000 had a value of $415,560."

Time, Not Timing, Is What Matters The time you’re invested in the market is more important than investment timing. The longer you invest, the more you improve your chances of a positive outcome.

Know thy funds and how they work!
"-Fees and expenses ratios or operating expenses can vary between index funds and erode an investor's return.
-An index fund might not track the underlying index or sector exactly causing tracking errors or variances between the fund and the index.
-Some index funds might only hold a few components, and the lack of diversification can expose investors to the risk of losses."

The Hidden Differences Among Index Funds Not all funds match index returns. Find out how to avoid costly surprises.

Know your investments: Mutual Funds edition! Great read here.

Mutual Funds: What They Are and How to Invest - NerdWallet Mutual funds pool money from investors to purchase stocks, bonds and other assets. Investing in mutual funds can help create a diversified investment portfolio.

https://www.investopedia.com/articles/active-trading/120814/life-insurance-smart-investment.asp
"But after 20 years, if she had bought term for $480 a year and invested the $8,890 difference, at an average annual return of 8%, she would have $421,064 before taxes.

"Sure," you say, "but the permanent life insurance policy guarantees its return. I'm not guaranteed an 8% return in the market." That's true. But even if the woman described above had put the extra $8,890 a year in a savings account with 1% interest, she would have $196,425 after 20 years, which is still more than the permanent policy's guaranteed cash value of $181,630."

Is Life Insurance a Smart Investment? Compared to other options, does it ever make sense to include cash-value life insurance in your investment portfolio? A look at the pros and cons.

https://www.marketwatch.com/livecoverage/stock-market-today-dow-futures-falls-over-100-points?mod=home-page
Keep your eyes on interest rates! The only constant is uncertainty so consume as much news as possible. There are still opportunities out there, even in this market!

Stock Market Today: Dow ticks higher with Fed meeting set to start Follow all the latest U.S. market action for Tuesday here.

Know your types of life insurance! Good article to start with.

Term vs. Whole Life Insurance: Differences, Pros & Cons - NerdWallet Term life insurance is temporary, covering you for a fixed period of time, while whole life usually lasts a lifetime.

Know your Roth! Simple facts that people need to know. Good read.

8 Things Millennials Need to Know About Roth IRAs Young people can take advantage of decades of tax-free investment growth.

Time to stir the pot a little bit. Do you prefer a nice house and average car or an average house and nice car?

https://www.forbes.com/advisor/retirement/maximize-ira-contributions/
Solid investing advice if you're thinking about or have already invested in an IRA. Don't make some of these mistakes!

How To Maximize Your IRA Contributions You put money in an individual retirement account (IRA). Great! A whopping 42% of those under 30—and 26% of those between 30 and 44—have no retirement savings, according to recent research by PwC. So just by doing that, you’re already ahead of the game. But don't stop there. Many retirement sa...

Right now, there's a lot of chatter about Social Security. We all started out expecting it to be there for us when we retire. But what if Social Security was just the gravy on your Thanksgiving dinner retirement plan? The icing on your post-work cake? It's possible, but you have to start planning now. Talk with a professional who can help you make a solid financial plan.

"When the share price is the highest in January and February, your investment buys you fewer shares. During the March lows, the same $10,000 fixed investment bought you nearly 50% more shares!"
Your investment can be any size, large or small. Don't be afraid of volatility. Learn how to deal with it, and learn why it can (perhaps counterintuitively) be your best friend!

Is Dollar-Cost Averaging In Volatile Markets Better Than Investing A Lump Sum? Dollar-cost averaging helps minimize the impact of volatility by investing over time instead of a lump sum. This can help investors stick to their plan as market conditions change. Since we only know the best time to invest in hindsight, dollar-cost averaging helps avoid buying at market extremes.

For FY 2023, IRA's are projected to finally get a contribution limit increase from $6000 to $6500 ($7500 for "catch-up" contributions post age 50). Hey, every extra $500 counts!

New 2023 IRS Retirement Plan Contribution Limits [Including 401(k) & IRA] | White Coat Investor The contribution limits for 401(k)s, 403(b)s, IRAs, and HSAs will change for 2023. Here's what you need to know.

I you're looking to keep an eye out for (mostly macro) economic numbers, check out this great economic calendar from Marketwatch. Don't forget to adjust for inflation if necessary 😃: https://www.marketwatch.com/economy-politics/calendar?&mod=home-page

U.S. Economic Calendar - MarketWatch U.S. economic calendar consensus forecasts from MarketWatch.

Some light reading suggestions for the financially inclined or financially curious. 🙂
https://www.marketwatch.com/story/these-5-great-easy-to-read-books-about-money-will-change-how-you-think-about-investing-11637165542?mod=mw_more_headlines

These 5 great, easy-to-read books about money will change how you think about investing Bogle, Ellis, the history of manias and the psychology of money can get new investors on the right track

What is "Dollar-Cost Averaging" and why would someone want to implement it as part of their investment strategy? Here's one of the main takeaways: "By using dollar-cost averaging, investors may lower their average cost per share and reduce the impact of volatility on their portfolios."
https://www.investopedia.com/terms/d/dollarcostaveraging.asp

Dollar-Cost Averaging (DCA) Explained With Examples and Considerations Dollar-cost averaging is the system of regularly buying a fixed dollar amount of a specific investment, regardless of the price.

Custodial Roth IRAs. More time for your kids to earn interest, but less initial investment before reaching peak earning years. "It's not about timing the market, it's about time IN the market". Does it pan out? Let's see...
https://www.today.com/money/roth-ira-kids-how-it-can-set-them-success-t210683

How to turbocharge your kids’ earnings from babysitting and other jobs A custodial Roth IRA has no age restriction, meaning children can get a head start on retirement and learn about the power of compound interest.

Some would say, "Don't hate the player, hate the game."
Well, Peter Thiel knows how to play the game. What are your thoughts?
https://www.marketwatch.com/story/how-peter-thiel-turned-2-000-in-a-roth-ira-into-5-000-000-000-11624551401

How Peter Thiel turned $2,000 in a Roth IRA into $5,000,000,000 Roth individual retirement accounts were created to help middle class earners set aside money for retirement that they wouldn’t have to pay taxes on at...

"Building a budget doesn't have to be overly complicated or time-consuming," says Brittany Castro, in-house certified financial planner for Mint. "It's actually the first step in putting yourself in control of your finances because it means you know where your money goes each month."
https://www.businessinsider.com/personal-finance/how-to-budget

How to budget your money in 5 easy steps Having a budget is critical to achieving your financial goals. Here's how to create one for yourself.

Who needs life insurance?
"...if you’re the primary provider for your dependents or have a significant amount of debt that outweighs your assets, then insurance can help ensure your loved ones are well taken care of if something happens to you. Having a life insurance policy could also make sense if you own a business or owe cosigned debts, such as private student loans, for which someone else could be held responsible if you pass away."
Life insurance is one of the pillars of wealth management.
This is a great article here that can guide you in the process of deciding whether or not you need life insurance and if so, how much you should carry.
Check it out!
https://www.investopedia.com/articles/pf/06/insureneeds.asp

How Much Life Insurance Should You Carry? Before purchasing life insurance, it is important to decide if you really need it, what type of policy is best, and how much coverage you should get.

Highlights:
-Start investing EARLY. 20 years old isn't too young to at least start planning an IRA or mutual fund (index if you're risk-averse).
-Be either a salary negotiator, a salary saver, or both.
-Go a little further and shoot for that extra 1%.
-It doesn't take a lot to build something beyond your wildest expectations!
-It might change your life!
Great article with awesome principles and guidelines. Use it to learn and get new ideas for your goals!
https://www.marketwatch.com/story/how-adding-1-to-your-saving-earning-and-investing-can-change-your-life-2019-10-18

How adding 1% to your saving, earning and investing can change your life Small changes can make a big difference in your net worth.

Have you heard the phrase "growth stock mutual fund"? Don't know what it really means? Check out this article and learn more!
https://www.thebalance.com/what-are-growth-stock-funds-2466757

Growth Stock Mutual Funds Growth stock mutual funds invest in companies that are likely to outperform the market. These are often younger companies in hot industry sectors.