PARENTS RISKING RETIREMENT, BRAIN HACKS, AND A PERSONAL FINANCE CHECKLIST

Listen in on this discussion with Jake and Cory as they explore a comprehensive personal finance checklist, unravel the intriguing rotations in the stock market, and explore the phenomenon that more Americans than ever before are now proud stockholders.

Delve into the myth that inflation is to blame for overspending and confront the harsh reality of parents risking their retirement to care for their children. Join an empowering discussion that dismisses shame surrounding money control and concludes with compelling calls to action!

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1. The Ultimate Personal Finance Checklist to Get Ready for 2024

Jake: We came across an excellent article in Bloomberg that outlines the ultimate personal financial checklist for 2024. The first item on the list is getting your passwords in order. Whether you use a secure place to write them down or opt for password managers like LastPass or 1Password, it’s crucial to organize your digital security.

Cory: (laughs) Jake, I need to work on that. I haven’t quite made the move to a password manager yet.

Jake: (laughs) I get that. Next on the checklist is taking stock of your subscriptions. Look at your credit card statement and identify recurring charges. If you’re not actively using a service, consider cutting it to save money.

Cory: Absolutely, it’s like decluttering your financial life. Trim the excess and focus on what truly adds value.

2. Rotation More Than Just a Calendar Change

Jake: Now, let’s shift our focus to market trends. A recent report from Strategas Research Partners highlights interesting market dynamics. Since October 23rd, the equal-weight S&P 500 has outperformed the Magnificent 7 by almost five percent. It’s crucial to stay informed about sector rotations and be open to adjusting your investment portfolio accordingly.

Cory: That’s right, Jake. The markets are dynamic, and it’s essential to reassess your portfolio regularly. Don’t forget, we’re here to help our listeners make informed financial decisions.

3. More Americans Own Stocks Than Ever Before

Jake: In a surprising turn, 58% of U.S. households own stocks, up from 53% in 2019. While this may seem positive, it’s crucial to consider the reasons behind this increase. The article suggests that factors like the pandemic and apps like Robinhood have driven more people to the stock market.

Cory: It’s an interesting shift, but we need to be mindful of the potential risks, especially if investing turns into a form of entertainment rather than a thoughtful, long-term strategy.

4. Where Did All the Money Go? The Villain in Your Transaction History

Jake: An article from Bloomberg addresses lifestyle creep, where higher prices can lead to overspending. The key takeaway is the importance of differentiating between essential and discretionary expenses. The article suggests making a backward budget, analyzing your 2023 spending, and identifying essential expenses.

Cory: It’s a great reminder to be intentional with our spending and avoid blaming external factors like inflation for overspending.

5. Your 401(k) Is Up. Don’t Let It Go to Your Head

Jake: After a year of potential market gains, it’s common for investors to feel overconfident. The article advises against adjusting your risk profile based on short-term gains. Instead, consider rebalancing your portfolio and consult with your financial advisor to align your investments with your long-term goals.

Cory: Overconfidence can lead to risky decisions. It’s essential to stay disciplined and stick to your financial plan.

6. Parents Are Risking Their Retirements to Support Adult Children

Jake: Bloomberg reports that many parents are financially supporting their adult children, affecting their retirement plans. The study shows that parents spend about $500 billion annually on their 18 to 34-year-old children – double what they put towards retirement.

Cory: It’s a concerning trend. Parents need to balance supporting their children with securing their own financial future.

7. Trick Your Brain Into Being Better With Money

Jake: Lastly, an article suggests practical tricks to enhance money management habits. Tips include scheduling bill payments around payday, making spending hurt by not saving credit card info online, and breaking up your budgeting into manageable chunks.

Cory: Small changes can make a big difference. It’s about finding strategies that work for you and align with your financial goals.

Closing Thoughts

Jake: As we embark on 2024, let’s prioritize our financial well-being. Take small steps, reassess your investments, and be mindful of lifestyle inflation. Your financial health is an ongoing journey, and we’re here to help you navigate it. We hope you have a great week!

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