Insightful Ideas

What Dow 40,000 Means for Consumer Net Worth. The Dow Jones Industrial Average reached 40,000 for the first time recently as markets continue to rebound from a 5% decline earlier this year. While this has felt like a difficult year for many investors due to inflation, high interest rates, and growth concerns, the reality is that the broad market has achieved 23 new all-time highs. Other asset classes, including international stocks, commodities, and even gold, have surged alongside the U.S. stock market as interest rate expectations have fallen.

Cash is an essential part of any financial and investment plan. It's important to have enough cash to serve as an emergency fund in case of unexpected personal events such as injury or illness or broader events such as an economic downturn. From an investment standpoint, cash can also serve important roles including reducing overall portfolio risk and by allowing investors to take advantage of attractive market prices.

If you are a participant in a 401K plan, it likely you are invested in a Target Date Fund or have the option to do so. But do you know what a Target Date fund is? Let’s dig in!

Check out our "Questions for the year ahead" video

Check out this video on the SECURE Act 2.0

The IRS has released record high contribution increase for 2023. This article details the changes.