This Week’s Takeaways:
- Shifting to higher-yield cash savings could mean billions of dollars yearly in extra returns for U.S. investors who have too much set aside in cash in the wrong type of accounts.
- New Fed Chair Kevin Warsh’s preferred inflation reading shows inflation at 2.36%, which if adopted would allow him to declare victory on inflation and cut rates.
- The earlier you think about retirement tax planning, the better off you will be during retirement as contributing to different types of accounts earlier provides you tax flexibility when living off your assets.
- Rising rates isn’t necessarily bad for stocks. There’s no level at which rates are good or bad and the velocity of change matters more than the direction.
- Sharing a framework to decide whether to buy or rent your vacation home.
- Plus, my latest book recommendation and this week’s Boston Corner.
A practical guide to managing your cash by Vanguard
Shifting to higher-yield cash savings could mean billions of dollars yearly in extra returns for U.S. investors. Determine your cash need by figuring out your monthly spending and set aside three months of savings (more if your income and spending are variable) and hold that cash in a higher yielding short-term vehicles than what your checking account pays.
See also: The Easiest Way to Increase Your Investment Returns
New Era at the Federal Reserve by RiskSIGNAL Report
Kevin Warsh’s preferred inflation reading Trimmed Mean PCE removes the most extreme price movements each month instead of excluding whole categories and shows inflation at 2.36%, If adopted by the Fed, it could allow them to declare victory on inflation and cut rates.
The Most Common Tax Traps in Retirement — and How to Avoid Them by Bloomberg
At its core, retirement tax planning is not only about minimizing your tax bill but also exerting control over when and how those taxes are paid. The earlier you plan, which typically entails creating tax flexibility by investing in accounts with different tax treatment, the better you will be able to keep more of what you earn in retirement. Don’t forget to take advantage of tax-loss harvesting and potential Roth IRA conversions before Social Security kicks in as well.
3 stock market charts to consider as interest rates rise 📊📉📈 by TKer
Rates are rising and so far it hasn’t been an issue for stocks. As Sam points out, there is no level of interest rates that is historically bad for stocks, the rate of change matters more than the direction, and corporate balance sheets are strong right now which puts them in a good position to have to refinance debt at higher rates down the road.
How to Evaluate Buying vs. Renting Your Vacation Home by Savant Wealth
Sharing a five-step framework to help you decide whether it’s better to rent or buy that vacation home this summer.
Book Recommendation
Football For A Buck: The Crazy Rise and Crazier Demise of the USFL by Jeff Pearlman
From Jeff Pearlman―the New York Times best-selling author of Three Ring Circus―comes the rollicking, outrageous story of the USFL, full of larger-than-life characters and you-can’t-make-this-up stories featuring some of the biggest celebrities and buffoons in the game.
Boston Corner
Boston is on pace for the slowest year of housing construction in 16 years. The mayor’s policies and macroeconomic situation are both to blame, but policies may need to change to get things moving in the right direction.
