Stay informed about the latest financial news affecting your wallet this week.
This Week In Your Wallet: My New Puppy + Economic Updates
There's been a lot happening recently, especially in the realm of money. However, I can't help but be distracted by adorable puppy videos! Training tips, common mistakes, and survival guides seem to dominate my thoughts.
Can you blame me? Allow me to introduce Norman.
He’s a 9-week-old cockapoo who joined us on Sunday. Sleep? What's that? As my husband likes to say, it’s a good thing he’s so cute.
If you have tips or tricks for surviving puppy training, I’m all ears. Now, let’s shift focus to your finances.
How’s Your Financial Outlook?
Unemployment has dropped significantly following last Friday’s employment report, and savings are increasing. According to a report, “the median household’s checking account balance was 50 percent higher this past July than in 2019,” with wages rising at unprecedented rates. Despite this, many still view the economy negatively, reminiscent of the early 2010s, when unemployment was much higher and financial stability was lacking.
What’s driving this sentiment? Inflation is up 5.4 percent over the past year, a significant increase from the previous average of around 2.8 percent. This rise is causing discontent even among those whose incomes have risen enough to offset the impact, particularly given that gasoline prices have surged 74 percent since May 2020. Yale economist Robert J. Shiller suggests that many believe the effects of inflation will be worse than they typically are. The concerns are set to escalate, especially as home heating costs are expected to rise dramatically this winter.
Considering Inflation Protection? Explore I-Bonds
When was the last time you thought about savings bonds? I can’t recall either! My children received some as gifts when they were born, but aside from that, they’ve slipped my mind. If inflation is a worry, Series I Savings Bonds (I-Bonds) deserve your attention. Currently, they offer an interest rate of 7.12 percent until the end of April 2022, which is among the highest ever offered. This is far superior to most high-interest savings accounts, and they are a secure investment. An economist describes them as “America’s best-kept investing secret” that everyone with a Social Security Number should consider.
However, purchasing I-Bonds can be tricky. You must create an account with Treasury Direct, and electronic purchases are capped at $10,000 annually per person. You can also acquire up to $5,000 in paper bonds through your federal tax refund. Keep in mind that you cannot redeem them within the first year, and cashing them in before five years means losing three months' worth of interest. They have a maximum term of 30 years.
Health Insurance Costs: What to Expect During Open Enrollment
If you obtain health insurance via Healthcare.gov, it’s open enrollment time! Each year brings new changes, and this year is no different. The enrollment period has been extended (from November 1 to January 15, 2022), with more plans available in many states and pandemic-related subsidies helping millions.
Don’t just default to last year’s plan—about 40 percent of participants have made this mistake in the past. You might miss out on better deals or valuable subsidies. If you find it challenging to choose, consider clicking here for assistance from a free navigator who can guide you in selecting the right option.
And if your insurance comes through your employer, explore your options thoroughly instead of simply renewing last year’s plan. Investigate what’s available and consider if a high deductible plan with a Health Savings Account (HSA) suits you better.
