The Inflation Reduction Act, or IRA, includes tax credits and rebates for homeowners who make energy-saving updates to their homes. Credits for improvements like new solar panels, windows, doors and air conditioners are available now, while rebates for larger energy-efficient updates are expected to become available later this year or next year.

Bonds have a long history of moving in the opposite direction of the stock market during times of market volatility, helping to provide your portfolio with a smoother journey. Bonds have lower returns than stocks, but they also have lower risk. Historically, US bonds have returned 5% per year and U.S. stocks returned 10% per year. But the stock market has lost more than 10% in a year 14 times in the last 100 years, but the bond market has only done this twice.

I Bonds can serve a purpose in your portfolio in certain instances. However, they have been somewhat overhyped throughout 2022 as investors have been enticed by the high yield. It is imperative to understand the nuances of I Bonds to determine if they are right for you.

Advisors need to charge fees that are aligned with the services that are provided. The most common fee model is a percentage of assets under management, but that doesn't mean that is always best for the client or best communicates the services that the advisor is providing. We are a flat fee financial planning firm because investment management is one of many services we provide to clients.

Saving money and personal finance more generally can be a lonely journey, since it’s not often something that’s talked about in social settings. It can be helpful to have someone, or a group of people, you can turn to that will hold you accountable and help talk through any financial questions you may have. This can often be a family member, a financially savvy friend or a financial planner.

When it comes to investing, it’s well known that time in the market is your most valuable asset—the sooner you begin your investment journey, the bigger the eventual payoff will be. That’s because you’re allowing your money to compound, taking your dividends and reinvesting them to create even greater returns. The ultimate goal for most people is achieving financial independence so you can control how you spend your time. Do you want to travel more? Retire early? Whatever your goal is, the sooner you get started on your financial journey, the better.

Most 401(k) investors very rarely trade, even during times of market turbulence. For instance, Morningstar found that fewer than 6% of 401(k) participants made any changes during the market crash in March 2020.

Crypto has been a popular investment for a new generation of retail traders, many of whom got into investing for the first time during the pandemic. Most cryptocurrency traders bought in the past year, surveys show. Bitcoin is now trading at its lowest level in 18 months.

During a bull market, investors say they are comfortable staying the course if the market goes down. But when the market is on a downward spiral? That can be a very different story. Unless you are actively spending down your savings (i.e., retirement) or are about to spend down your savings (i.e., near retirement), your risk capacity likely has not changed. Most people’s risk capacity doesn’t change much as a result of market volatility. But their risk tolerance can change considerably.

The path forward during this market decline depends on your current financial picture. For those who invest in the stock market to build long-term wealth, the best way to handle this market volatility is to do nothing out of the ordinary. They should continue to automatically buy low-cost, diversified index funds following an asset allocation that is aligned with their objectives. If they have the ability to increase the amount of money they put in the market, I would encourage that.