A good plan helps steer behavior toward more positive outcomes. It helps prepare you mentally for the challenges ahead, with a predetermined plan of how to respond to them. Here are three reasons why I think everyone needs a financial plan.
Well, here we are. Not only are the stocks in your portfolio down significantly this year, but due to raising interest rates your bonds (the “safe” stuff) are probably down too. And the icing on the cake? Cash is being eaten away too due to high inflation.
The stock market has had a rough spell this past quarter. It’s common for stocks to experience this kind of turbulence, but the drop in bond values has surprised investors.
What’s going on here? Aren’t bonds the “safe” part of an investment portfolio?
I’ve been surprised at how many conversations I’ve had with retirees about debt over the last few years, and how to get it paid off before they officially retire. Frankly it’s a relief, since I believe all retirees should head into retirement debt free.
Federal income taxes are fairly straightforward for most individuals during their working years. In a progressive income tax system like ours, you pay taxes at a certain rate. Once your income exceeds the top tier of that rate bucket, the next dollar you earn is paid at a higher rate.
