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One survey found that military personnel has higher credit card debt and fewer tangible assets than their civilian counterparts.¹
While the financial situation of military personnel and their families mirrors the general population in many respects, heavy indebtedness and mismanagement of credit cards may be especially acute issues for service members.
Of course, military families face unique challenges, such as deployment to conflict zones, overseas assignments, and the constancy of change, making personal finance even more critical.
MONEY TIPS TO CONSIDER
As you think through your financial goals, remember, acting today is your first and most crucial step.
Stocks closed lower again yesterday, with the tech-heavy Nasdaq leading the way.
Rising bond yields, again, weigh on stocks as some worry that future inflation could cause the Fed to raise rates sooner rather than later.
It’s worth repeating that Fed Chair Jerome Powell has previously said rates are likely to stay near zero for the next three years. Last week, in testimony before Congress, he essentially said that the Fed has no plans to raise rates anytime soon and that their asset purchases will continue for the foreseeable future.
He expressed more concern over the lack of inflation than inflation rising.
I believe what we are seeing is just expected profit-taking and an ordinary pullback taking place.
Stocks usually pull back about -5% roughly 3-4 times per year. (A pullback is defined as a decline between -5% and -9.99%.) It’s quite common.
There could also be some unease over stimulus talks. Congress has said they are determined to pass something by March 14th, which is when millions will begin losing some of their extended federal unemployment benefits.
In the meantime, the economy is doing well. The Atlanta Fed is estimating Q1 GDP to come in at 10.0%. And other forecasts have full-year GDP growing at the fastest pace in 38 years!
With virus case counts dropping, more people getting vaccinated, and more big cities and states loosening restrictions and allowing businesses to open, we should see significant pent-up demand unleashed.
That’s bullish for the economy and the market.
If you’re feeling uneasy, that’s normal, and we should remember that staying disciplined towards your financial plan is especially critical during times of volatility. I’ve seen many investors move from logic to emotion during volatile times. The reaction to fear reduces their chances of long-term financial wellness. Stay the course!
Scott started his Financial Services industry career in 1998. He holds his FINRA Series SIE, 7, 9/10, 63, 66 licenses and is an Arizona Life and Health Insurance Agent. An active CERTIFIED FINANCIAL PLANNER™ practitioner (CFP®) and Accredited Investment Fiduciary® (AIF®). Scott is also a dynamic and effective Arbitrator for FINRA.