Sound Advice

  "In the end, it's not the years in your life that count. It's the life in your years" — Abraham Lincoln.  N. Russell Wayne Weston, CT  06883 203-895-8877

The Magnificent Seven vs. the Stock Market: A Showdown in 2024   In 2024, when we talk about the "Magnificent Seven" in the stock market, we're referring to seven tech giants that have become the cornerstone of market growth, led by companies such as Apple, Microsoft, Alphabet (Google), Amazon, Nvidia, Tesla, and Meta (formerly Facebook). These companies have dominated both the tech landscape and the broader market, often driving the majority of the market's gains. This domination substantially distorts the apparent returns of the overall market.   Through the second week of November, the S&P 500 Index “appears” to have provided a year-to-date return of 17%, but that’s largely a reflection of the impact of these megacap tech stocks.   When taking a closer look, it turns out that the average return of the seven giants was over 40%.   At the same time, the average return of all the other stocks in the index was about 8%.   So if you’re wondering how the ma...

Debt Relief Offers Are Time Bombs Many of these "offers" can come with hidden costs, high fees or unfavorable terms that can make your financial situation worse in the long run. Some common reasons to be cautious about these offers: 1.      High Fees : Some companies offering to reduce credit card debt may charge hefty upfront fees, or they may require you to pay monthly fees. In some cases, these fees can eat into any savings you might get from the debt reduction. 2.      Debt Settlement Scams : There are a number of debt settlement companies that claim they can reduce your debt by negotiating with your creditors, but they may ask you to stop paying your credit card bills entirely while they "negotiate." This can cause late fees, higher interest rates, and seriously damage to your credit score. 3.      Tax Implications : If a company settles your debt for less than what you owe, the amount of the debt forgiven may be...

Why do consumers know so little about personal finances and what do they need to do to learn what's important? Consumers often lack knowledge about personal finances due to several factors:   Inadequate Education Financial education in schools is often insufficient or nonexistent. Only 25 states in the U.S. currently require personal finance courses in high schools This leaves many young adults unprepared to manage their finances as they enter the workforce. Complexity of Financial Landscape The financial world is constantly evolving, with new products, technologies, and regulations emerging. This complexity can be overwhelming for many consumers, making it difficult to stay informed and make sound financial decisions. Lack of Practical Experience Many people don't gain hands-on experience with financial matters until they're faced with important decisions, such as taking out student loans or buying a home. This lack of practical experience can lead to costl...