401k, IRA: How to Choose a Retirement Plan That’s Best for You
Are you looking for a retirement savings plan? There are several options available, including traditional IRA, Roth IRA, 401k. It may be difficult for you to decide which plan is the best fit for you. This article will guide you in picking the right retirement plan to help you reach your financial goals.
US News: Market Outlook and Impact on Your Investments
The announcement last week about inflation being lower than anticipated in October points towards the Federal Reserve ending its aggressive rate-hike campaign. This news comes as great news for those invested in the stock market. Historically, after the last rate increase by the Fed, the S&P 500 index has experienced an average increase of 14.3% over the following 12 months. However, the average returns over a longer period of time are lower: 7.5% over 5 years, 10.4% over 10 years, 7.5% over 30 years, and 10% over the last century, according to NerdWallet.
The stoppage of rate hikes has a significant impact on the economy, market, and investment options. A pause in rate hikes leads to a more optimistic economic projection, making stocks more desirable than bonds. This move also diminishes uncertainty in the market, according to Adam Turnquist, chief technical strategist at LPL Financial.
What the Future holds and Your Investment’s Fate
While the outlook for stocks appears positive following the last hike, there are some exceptions. The S&P 500 index suffered significant losses following the stoppage of rate hikes during two episodes. Therefore, while history indicates that the market should generally perform well following a fed decision, external factors or unforeseen events can impact the stock market and your investments in different ways.
Investors should also take into account stock valuation and the economy’s performance as they consider their investments. The hope for the future is a stock market that continues to grow, but sometimes, it’s more complicated than that.
