Another day, another record for averages

Federal Reserve Chairman Powell testified to Congress that interest rates will come down this year, but the Fed is not confident that inflation is under control yet.  At least that is what he said on his first day of testimony.  Today, his second day of testimony, he was much clearer that rates are very high compared to what they would be in a normal economic/inflation environment.  The Fed goal for inflation is still 2% and currently inflation is hovering just above 3%.  Powell said current rates are restrictive to the economy and should be coming down soon.  He said he does not want the highest interest rates in 21 years to drive the economy into recession.  Much of the dissatisfaction with the economy some economists think can be attributed to continued high interest rates.  Auto loans, mortgages, and credit card interest rates that remain high are directly impacting many Americans not only in their pocketbook but psychologically in the sense that even if you are not directly affected by these high interest rates you probably know someone that is.  These same economists expect that when interest rates fall, it will have a positive effect on Americans' opinion of the economy.  We shall see when rates come down and if that improves the view of the economy.  It is an election year so…….

As the baby boomers grow older (that’s me and my wife) issues of aging and caring for the aging loom larger.  In our work, we encounter this challenge both for our clients and clients who have aging parents.  The lack of infrastructure to accommodate aging is palpable not only in America but around the world.  Like any other anticipated change, the first step is to recognize that each of us needs to acknowledge that this happens to everyone including ourselves and that having a discussion about what are our options to create a personal infrastructure for aging is necessary to have the best outcome. Denial is the worst plan, and it is a plan.  The earlier the discussion and acknowledgement the more options are available.  In our practice, we have recognized that like all of life, planning for aging is very important.  Parts of solving this puzzle involve having a comprehensive estate plan including advanced medical directives as well as power of attorney for finances.  If we have not asked you about your plans for aging if you are older than 50, I would be surprised.  But there is no necessary age to start the discussion because if you are younger than 50 you probably have parents that are dealing with aging issues.  Minna Fernan, our team member is a professional fiduciary who can help with the discussion as well as provide the options available to you, as well as the tools and resources to develop a specific plan.  Let us know if you have any questions in regard to this issue.