What’s happening in the world matters to your personal finances. The larger socioeconomic trends filter down to your own pocketbook whether or not you want them to. Following are current trends that may affect your finances over the next five years, according to the experts:
Interest income will continue to be dismal.
Cash and savings accounts are being affected by global debt, aging populations and low energy prices. Countries have lowered interest rates they pay on short-term notes, in some cases paying negative interest rates. That means the lenders have to pay a fee to own debt securities. The results trickle down to the individual. To offset, the experts advise that you modestly increase your allocation to global stocks and real estate.
Too much information can swamp you.
Technology makes an excess of data available through blogs, social media and emails. With so many options and relatively easy access to competitive products, analysis paralysis can cloud decisions. Turn off the “cookies” feature in your browser and avoid an overabundance of ads.
The costs of investing will continue to drop.
In the investing world, where so many factors are beyond the control of individuals, it is smart to lower expenses in hopes of increasing returns. But cost isn’t the only factor. Consistent savings, investment diversification and comfort with volatility are also to be considered. The experts say that instead of focusing solely on low fees, you should create an investment strategy that aligns with your goals.
Life insurance costs are going up.
Insurance companies earning less on their portfolios may opt for premium increases for whole and term life policies. The companies make their money on premium income and investment performance and they share the pain with customers when things are not going well for them. To counter, you might consider buying term insurance for the longest time span that makes sense to you. Term life, unlike whole life and other so-called permanent policies, has no cash component and usually expires after a set number of years, so it usually is cheaper. If you want permanent life insurance, look at a variably policy from a lower-cost but reliable provider. You then take a moderate risk over a longer time and grow the policy’s investment.
Cash and savings accounts are being affected by global debt, aging populations and low energy prices. Countries have lowered interest rates they pay on short-term notes, in some cases paying negative interest rates. That means the lenders have to pay a fee to own debt securities. The results trickle down to the individual. To offset, the experts advise that you modestly increase your allocation to global stocks and real estate.
Too much information can swamp you.
Technology makes an excess of data available through blogs, social media and emails. With so many options and relatively easy access to competitive products, analysis paralysis can cloud decisions. Turn off the “cookies” feature in your browser and avoid an overabundance of ads.
The costs of investing will continue to drop.
In the investing world, where so many factors are beyond the control of individuals, it is smart to lower expenses in hopes of increasing returns. But cost isn’t the only factor. Consistent savings, investment diversification and comfort with volatility are also to be considered. The experts say that instead of focusing solely on low fees, you should create an investment strategy that aligns with your goals.
Life insurance costs are going up.
Insurance companies earning less on their portfolios may opt for premium increases for whole and term life policies. The companies make their money on premium income and investment performance and they share the pain with customers when things are not going well for them. To counter, you might consider buying term insurance for the longest time span that makes sense to you. Term life, unlike whole life and other so-called permanent policies, has no cash component and usually expires after a set number of years, so it usually is cheaper. If you want permanent life insurance, look at a variably policy from a lower-cost but reliable provider. You then take a moderate risk over a longer time and grow the policy’s investment.
Technology makes an excess of data available through blogs, social media and emails. With so many options and relatively easy access to competitive products, analysis paralysis can cloud decisions. Turn off the “cookies” feature in your browser and avoid an overabundance of ads.
The costs of investing will continue to drop.
In the investing world, where so many factors are beyond the control of individuals, it is smart to lower expenses in hopes of increasing returns. But cost isn’t the only factor. Consistent savings, investment diversification and comfort with volatility are also to be considered. The experts say that instead of focusing solely on low fees, you should create an investment strategy that aligns with your goals.
Life insurance costs are going up.
Insurance companies earning less on their portfolios may opt for premium increases for whole and term life policies. The companies make their money on premium income and investment performance and they share the pain with customers when things are not going well for them. To counter, you might consider buying term insurance for the longest time span that makes sense to you. Term life, unlike whole life and other so-called permanent policies, has no cash component and usually expires after a set number of years, so it usually is cheaper. If you want permanent life insurance, look at a variably policy from a lower-cost but reliable provider. You then take a moderate risk over a longer time and grow the policy’s investment.
In the investing world, where so many factors are beyond the control of individuals, it is smart to lower expenses in hopes of increasing returns. But cost isn’t the only factor. Consistent savings, investment diversification and comfort with volatility are also to be considered. The experts say that instead of focusing solely on low fees, you should create an investment strategy that aligns with your goals.
Life insurance costs are going up.
Insurance companies earning less on their portfolios may opt for premium increases for whole and term life policies. The companies make their money on premium income and investment performance and they share the pain with customers when things are not going well for them. To counter, you might consider buying term insurance for the longest time span that makes sense to you. Term life, unlike whole life and other so-called permanent policies, has no cash component and usually expires after a set number of years, so it usually is cheaper. If you want permanent life insurance, look at a variably policy from a lower-cost but reliable provider. You then take a moderate risk over a longer time and grow the policy’s investment.
Insurance companies earning less on their portfolios may opt for premium increases for whole and term life policies. The companies make their money on premium income and investment performance and they share the pain with customers when things are not going well for them. To counter, you might consider buying term insurance for the longest time span that makes sense to you. Term life, unlike whole life and other so-called permanent policies, has no cash component and usually expires after a set number of years, so it usually is cheaper. If you want permanent life insurance, look at a variably policy from a lower-cost but reliable provider. You then take a moderate risk over a longer time and grow the policy’s investment.