Good news for the cheery: A Boston study published this month suggests people who tend to be optimistic are likelier than others to live to be 85 years old or more.
Sharing Our Thoughts and Insights
Economics 101 tells us that lower supply (all else equal) will result in higher prices. And that’s just what’s happened, as Municipal bond returns have outpaced taxable bond returns over the last ten years (4.1% to 3.9%).
The U.S. 10-Year Treasury Yield has been cut in half since the fourth-quarter last year (3.2% 1.6%), causing bond prices to rise significantly (taxable bond index is up nearly 9% year-to-date).
One component of any retirement plan is making a smooth transition by “practicing retirement.” Think of it as a dress rehearsal before you take the big (and often irreversible) step to fully retire.
The financial world has been atwitter about the inversion of the yield curve. It is a phenomenon in the bond market in which longer-term interest rates fall below shorter-term interest rates, and has historically been a warning sign that a recession could be on the way.
The inversion of the yield curve (where short-term rates are higher than long-term rates) is one of the most reliable predictors of a recession. As it happens, the Treasury yield curve is currently inverted with the 10-Year yield (1.6%) well below that of the 3-Month yield (2.0%). So does that mean all signs are pointing to a recession?
A happy retirement is about so much more than having enough money to pay your bills. So once you have a retirement plan in place to help secure your financial future, be sure that you also consider the non-financial aspects of a successful retirement.
Change is a constant and continuous process in life. As we grow older, we change how we dress, what we eat, where we live and who we become friends with.
Monetary policy (meaning the Federal Reserve lowering short-term interest rates) has become less effective at spurring economic growth in the recent past. One big reason may be the weakening link between company borrowing and company spending on capital expenditures, which is thought to be a major driver of economic growth.