Unburdening | Personal Finance & Retirement Boom

Unburdening: In this week’s reflection from advisor Evan Hewitt: “There’s a recurring moment that happens in our work as advisors. The only way I can describe the moment would be the word unburdening.”

This unburdening happens when our wealth stops restricting our freedom and begins enabling it. This is the true aim of our financial planning process. If you or someone you love is currently feeling the strain of financial uncertainty, we would be honored to help you re-experience the unburdening your financial plan can provide. Watch the video below.

Personal Finance: It can, at times, feel like everyone around us is doing better financially than we are. However, when we look at the overall picture, that’s not really the case—typically, people’s worries and questions are very similar. We found this chart supports that observation:

I Bonds: I bonds purchased between May and November 2022 initially paid 9.62%. But today’s return on those bonds is under 4%. Moving forward, please reach out to us regarding cash management and we can discuss a wide variety of options that coordinate liquidity, tax efficiency, and competitive rates.

Retirement Boom: We are experiencing a second wave of the post-COVID retirement boom. An aging country, combined with a booming stock market and a nudge from return-to-office policies, is enough to make retirement look more attractive. The U.S. has about 2.7 million more retirees than predicted from a model designed by an economist at the Federal Reserve Bank of St. Louis. That number was 1.5 million six months ago—a more than 80% increase. Before the pandemic, there were often fewer retirees than expected.

The pandemic fundamentally altered the labor force, making the jobs market historically tight. The increasing number of 401(k) millionaires is outstripped by the number of graying citizens who aren’t prepared financially for retirement, especially as the social safety net frays. The 65-and-older cohort is set to soar by nearly 50% by 2050, with its share of the population rising from 17% to 23%, according to the Population Reference Bureau. Social Security is also flirting with insolvency as millions of Baby Boomers retire—raising serious questions about whether the same level of benefits will be available for Generation X and Millennials when they get set to call it quits.

Free Tuition: A pretty amazing act of generosity happened this week. Dr. Ruth Gottesman was left an inheritance of $1 billion from her late husband’s estate. She used the money to pay it forward, covering students’ tuition at the Albert Einstein Medical College in the Bronx. Her late husband was an early investor with Berkshire Hathaway, and it is the largest gift ever received by any American institute of higher education. With the donation, all current fourth-year students will be reimbursed for their spring 2024 semester tuition, and effective August of this year, all students moving forward will receive free tuition. Dr. Gottesman said, “I feel blessed to be given the great privilege of making the gift to such a worthy cause.”