Hi there! We all know that thinking about our finances can be intimidating to say the least, but we at Sherman Wealth Management are here to help you improve your financial well-being. There’s so much information out there, so I wanted to share what I think are the most important reads of the day.
INVESTING & THE ECONOMY
The U.S. gained 312,000 jobs in December, capping off the biggest increase in hiring in 3 years and showing the economy still has plenty of staying power despite growing worries about a slowdown from @jbartash
Strong hiring has also given workers more bargaining power with their bosses. The amount of money the average worker earns climbed 11 cents, or 0.4% to $27.48 an hour last month. What’s more, the increase in pay in the past 12 months rose to 3.2% from 3.1%, matching a post-recession high set earlier in the year.
The partial government shutdown is nearly two weeks old, with no end in sight and threatens to impact the IRS filing season. Tax professionals haven’t received word yet on when the IRS will begin accepting returns for the 2019 filing season. Coupled with the dramatic changes to the tax code with the 2018 tax law changes, and the IRS may be in for a bumpy ride. It is possible that IRS refunds will be delayed due to the shutdown
Fewer federal employees impacted by the partial government shutdown are signing up for unemployment benefits than in the last instance of agencies shuttering for an extended period, but the cash-strapped workers increasingly have other options
Goals-based financial planning offers an effective and motivating solution for investors. Research by David Blanchett, Morningstar’s head of retirement research, found that using a goals-based framework in financial planning led to an increase in client wealth of more than 15%; behavioral research also suggests that investors get a sense of motivation and satisfaction with their financial plans when advisors focus on a client’s personal goals versus arbitrary benchmarks.
RIP to a great founder and visionary…