This week on Inside the Economy with SH&J, we discuss what the next brewing bubbles in the U.S. economy may be, and whether or not their imbalances could cause the next recession. In addition, we review the capital inflows of international money into U.S. commercial real estate and why China is selling off a portion of their U.S. Treasury holdings. Listen in to hear the economic chances of a recession in the near future.
The Economics of Presidency: A Look Back
Happy President’s Day! Each presidency comes with its fair share of champions and naysayers and we all know the numbers can be interpreted to support both sides of the aisle.
We’re celebrating this President’s Day with a look at various economic statistics during each President’s term since Eisenhower (1953 – 1961) as most data wasn’t consistently tracked before then. Enjoy the look back!
Inside the Economy with SH&J: February 13, 2017
This week on Inside the Economy with SH&J, we review the driving forces for raising interest rates and inflation including unemployment, consumer debt, and retail pricing. Also covered is the longer-term potential growth slope for GDP. Listen in to hear this week’s discussion, which includes insight on the United States’ dependence on trade and an update on the Eurozone.
5 Reasons to be Frugal Even When You Can Spend More
Why go out of your way to save $20 when you can make it back in a few minutes of work? What’s the point in shopping for a deal when you have extra income? The difference between being frugal and being cheap is caring about value as opposed to caring about cost.
Retirement is Coming
Whether it’s 5 years or 25 years away, your dream of retirement is coming. If you’re living the life of luxury now instead of pushing money into your retirement plan, you may end up having to pinch pennies during retirement. Do what you can to cut your costs now, while still living comfortably, so you can live with less financial worry during retirement. Talk with your CFP® about about your plans to help get you on the right path for a comfortable retirement.
Financial Planning for Blended Families: 3 Stages of Life
The idea of a “traditional” family is ever evolving, and the United States Census Bureau has the research available that clearly outlines the profound shift in family formation. The reports show that families made up of two married heterosexual parents raising their biological children under age 18 now comprises only 20% of households, down from 40% in 1970.
As the traditional family reforms into modern day living, the financial challenges felt by blended families continue to increase. Although there are many definitions of blended families, we are focusing on second marriages and parents sharing custody of children from previous marriages for the purposes of this article.
There is no clear cut “right or wrong” way of managing household finances. Each family needs to find the method that works best for them. We have helped many blended families organize their financial lives, and here are a few themes we find in three different general stages of life.
Inside the Economy with SH&J: January 30, 2017
This week on Inside the Economy, we discover why the age of low inflation may be ending and how yields are likely to be pushed higher. The Dow crossed above 20,000 for an all-time high on January 25, 2017, creating a stir in media headlines. Which sectors are being positively and negatively impacted by the incoming administration’s new policies? Listen in to find out more!
5 Important Questions to Ask Yourself Before Deciding to Go Back to School
Going back to school can give you a sense of accomplishment and open the door to new opportunities, but is going back to school for a new or advanced degree worth the investment? We all know pursuing a degree can have a strong impact on finances, career and family.
Here are our 5 questions to ask yourself before going back to school:
Why do I want to go back to school?
Exploring why you want to go back to school is an important and necessary first step. Are you interested in learning something new? Are you looking to move to a new career? Maybe you are hoping an advanced degree will give you a significant income boost. Whatever your reasons for thinking about going back to school, take some time to write them down. Discuss your list with trusted mentors and family members to get their honest input. Their advice could help you find other avenues to reach the same result without the cost and time required by pursuing a degree, or determine that a degree is your best option.
Our Thoughts on the Dow and 20K
You’ve likely heard noise in the media recently about the potential of the Dow hitting 20,000. We recently wrote about the history of the Dow and want to remind you that the media has a tendency to add hype where it is not warranted. In our reading over the weekend we found an article that illustrates our feelings about the Dow and the recent hype around it quite well.
In the article, Why Dow 20k doesn’t matter, published in the Chicago Tribune, author Jill Schlesinger said, “I think the Dow is perhaps the least meaningful U.S. stock index available. Sure, it’s got history on its side — it was created by Charles Dow in 1896 in order to provide investors with a snapshot of how the overall stock market was doing. But it includes only 30 large companies, and considering that Amazon, Google and Facebook are not part of the Dow, it is hard to make the case that it reflects the broader market.” (source)
The full article can be read here and we think it is a worthwhile read.
The Aging Brain and Decision Making
Regardless of age, we all have moments when we walk into a room and forget what we were looking for or start a sentence and forget what we were going to say. However, as we get older and these occurrences perhaps become more frequent, it is important to consider how our aging brain may be impacting other areas of our lives.
In 2015, the Center for Retirement Research at Boston College released a report on how a decline in cognitive skills affects financial decision making. The study conducted an annual review of a group of aging individuals’ financial literacy or knowledge, confidence in making financial decisions, and level of responsibility for managing their finances.
The study found that while a decline in cognition lead to a significant decline in financial literacy, it did not reduce individuals’ confidence in their ability to manage their finances. As a result, many individuals maintained primary responsibility over their finances despite a decline in their ability.
Inside the Economy with SH&J: January 16, 2017
This week on Inside the Economy, we review how a strong U.S. dollar and higher interest rates have affected the exporting sector of the U.S. economy and borrowing costs over the last year. Can you guess what the next bubble may be? Listen in to find out, and hear more on expectations for manufacturing’s share of total employment here in the U.S., as well as what a cut in corporate tax receipts could mean for Federal Revenue.