THIS ARTICLE IS FROM DIMENSIONAL ADVISORS. READ THE ORIGINAL ARTICLE HERE.
How quickly things change.
Two years ago, the New York Times reported, "Federal Reserve officials are increasingly worried that inflation is too low and could leave the central bank with less room to maneuver in an economic downturn."1 More recently, a Wall Street Journal article presented a sharply different view, with a headline that likely touched a raw nerve among investors: "Everything Screams Inflation." The author, a veteran financial columnist, observed, "We could be at a generational turning point for finance. Politics, economics, international relations, demography, and labor are all shifting to supporting inflation."2
Is inflation headed higher?
Whether it's a fun night out with friends or investment returns, it's natural to have a fear of missing out (aka FOMO). As companies rise to become some of the largest firms, the performance that got them there can be impressive. But just because the largest companies gain attention in the headlines, it doesn't mean they can maintain performance over the long term.
Whether you consciously realize it or not, money topics and your emotions are considerably intertwined. If you have been considering estate planning as a way to secure your family’s long-term financial security and to put plans in place for the next generation, you may find yourself navigating unexpected emotions or difficult family dynamics. That is because estate planning is about much more than just numbers on a spreadsheet – it’s about family, feelings, and honest discussions.
If you prepare yourself ahead of time for the emotional aspects of such planning, you’ll find the process easier to manage. Below, we’ll discuss four helpful tips you should consider as you discuss your estate.
If there was ever a year that we were reminded of the difficulty of making stock market predictions, it was 2020. Yet, many clients continue to search for "expert" market outlooks in hopes of positioning their portfolio to outperform. A well-known financial publication surveyed 10 Wall Street analysts1 at the beginning of 2020, to make a few predictions of the year ahead:
- The general consensus was that the S&P 500 would rise 4.1% in 2020. Even the panel’s most bullish predictor undershot the final S&P 500 gain for the year.
- These same strategists predicted that the 10-Year Treasury would end the year yielding 1.89%, more than double the 0.919% yield on December 31st.2
- When reviewing different sectors, 8/10 of the panel were overweight financials heading into 2020. The financial sector was one of the four sectors that experienced losses in 2020.
When it comes to retirement, men and women face many of the same challenges. However, because women have a longer life expectancy and are still struggling with a gender wage gap, planning for an early retirement becomes a different equation altogether. It may come as a surprise to learn that women all around the world tend to retire earlier than their male counterparts.
If you’re a woman and you’re thinking about retiring early, here are some things to keep in mind before you make your big decision.