Stock market weirdness, Ted Lasso, & Crypto 401k ๐Ÿ’ธ

May 3, 2022

Good morning! โ˜•๏ธ

And welcome to Edition #2 of the HTM newsletter! You won’t believe it… since launching last week, we already have over 2 million email subscribers! ๐Ÿคฏ What!!?? (Just kidding, but seriously, we are blown away by the number of peeps signing up. THANK YOU, we love you, and we hope to keep sending you good stuff each week.)

And cheers to those who replied to last weekโ€™s email!. Here’s a fun story we got from Paul in San Diego…
๐Ÿ‘‡๐Ÿ‘‡๐Ÿ‘‡


COMMUNITY

“A Crisp Hundo”…

“Last week was rough for me. I work for a small business owner which means wearing multiple hats and always doing things outside my normal duties. Last week was particularly rough because of the number of projects our company is taking on so Iโ€™ve been putting in extra effort to help our overworked team and my poor boss who is stressed.

Then on Friday when I was just packing up to leave for the day, my boss walked over and gave me a fresh $100 bill, and said thank you for all my hard work. I know it’s not a massive amount of compensation for the time I put in, but boy do I feel appreciated. That’s why I’m happy at my job. A crisp hundo and a thank you is all I needed to feel acknowledged”

– Paul in San Diego

Love it, Paul! Congrats and thanks for sharing your win with us. ๐Ÿฅณ


INVESTING

Now, about this weird stock market…

It’s been pretty volatile the last couple weeks, and investors are getting nervous.

But, like Ted Lasso says…

We talked about crashes and corrections a couple weeks back on Episode 473, but it’s never hurts repeating some of these reminds:

When the market acts bonkers:

  • It’s OK to feel nervous and anxious! We are human, after all. ๐Ÿคทโ€โ™‚๏ธ
  • Just don’t *act* on any of those emotions or impulses. Stay patient. ๐Ÿง˜โ€โ™€๏ธ
  • This “not normal” activity, is actually pretty normal! Downturns of 5-10% occur nearly every year! ๐Ÿ“ˆ
  • Think loooong term. Stay your course. ๐Ÿงญ
  • If you are dollar cost averaging, or early in your wealth building journey, market downturns actually work in your favor. ๐Ÿ˜Ž

And if you want a ton more encouragement *with compelling data to back it up*, check out our buddy Nick Maggiulli’s new book Just Keep Buying. You’ll love it.


INTEREST RATES

The federal bean counters are meeting…

Over the next couple days, the Federal Reserve are meeting to discuss and adjust interest rates. Here’s the low down…

What’s expected?
The Fed is likely raising interest rates this week (probably by 50 basis pts) to make borrowing more expensive.

Why are they doing this?
It’s one of tools the Fed uses to cool down inflation. There’s a trickle down effect of raising the Fed rate — it makes businesses and consumers want to borrow less, spend less, and therefore brings down demand for stuff.

Does it impact you?
๐Ÿ‘‰ For anyone with a variable interest rate loan, (HELOCS, most credit cards, some personal loans, etc.) your payments will increase. We recommend a focus on paying down your variable rate debts.

๐Ÿ‘‰ For anyone looking to take out new variable rate loans (and buy luxury depreciating assets with the money), consider delaying your project. It is anticipated that the Fed rates will be raised continually throughout 2022 and your payments will keep getting higher and higher.

๐Ÿ‘‰ If you own stocks and bonds, there may be a decline in value. BUT, just like we said in the prior segment, lulls are temporary and dips represent a great buying opportunity for investors. ๐Ÿค‘


ICYMI

Recent buzz around the water cooler…

Travel ๐Ÿš
A New York Times article pooped all over the “Van Life” movement. Sleeping in a Van is not for everyone; actually, it’s a good reminder to pursue the experiences that YOU truly enjoy (vs. doing it for the ‘gram photos) ๐Ÿ“ธ

Saving ๐Ÿ’ฐ
Apparently 90% of US households are under-insulated! Stop wasting money on cooling this summer and insulate your house, yo! (๐Ÿคซ Psst… your electric company might even give you rebates and/or you might also qualify for insulation tax credits!)

Fin Lit ๐Ÿ‘ฉโ€๐ŸŽ“
Our home state of Georgia just became the latest US state to mandate personal finance education in High School! Yaaay! ๐Ÿฅณ Our kids won’t be broke in the future!

Crypto ๐Ÿ’ธ
Fidelity thinks it’s a good idea to offer Bitcoin as an investment within their 401k plans. They plan to launch this mid-2022. (Vanguard disagrees btw.) Is this a good or bad move for retirement savings? We shall see!

Mother Day ๐Ÿคฐ
It’s THIS weekend!!! Don’t forget to get your mama a gift and make her feel like the most special Mom in the world. She deserves it.


Happy Tuesday and have an awesome week ahead!

Best friends out ๐Ÿป

PS. “May the fourth” be with you tomorrow.

* Advertiser Disclosure: How to Money has partnered with CardRatings for our coverage of credit card products. How to Money and CardRatings may receive a commission from card issuers.
* User Generated Content Disclosure: Responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiserโ€™s responsibility to ensure all posts and/or questions are answered.

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