It seems that there is a never ending stream of economic data coming from all directions. Actually, that is true. However, it usually isn’t as dynamic as it has recently been. Typically, the economy moves in one direction, at one speed for a certain period and then adjusts and moves in a mostly predictable manner yet again. However, with the U.S. economy still recovering slowly from the Great Recession, things seem to be a little more erratic.
The latest economic data, released Wednesday, suggests a big bounce back from the surprising decline from earlier this year. If you remember, the beginning of the year, a major weather system in the northeast knocked the economic recovery off track, and led to a mixed mid-year review of the American economy. While every major economist at the time considered the dip to be a temporary phenomenon, things got even trickier when the already down news was revised further downward. The latest data suggest that the recovery is back on track for this year, at least.
The U.S. economy grew at an annual pace of 4 percent in the second quarter. (There is a misconception that this means the economy actual grew the full 4 percent during the quarter. That is not correct. This data means that if the economy grew at the same rate for the whole year as it did in the second quarter, then the growth rate for the year would be 4 percent.) In addition, consumer spending increased, and more jobs were added to the economy as well.
Overall, the results were much more positive than economists were predicting. Data can be revised after as more information comes in, but if these numbers stick around, then this is good news for those hoping the economy can finally get fully turned around and back into a real expansion going forward.
By now, many people are familiar with the basic concepts of a 401k retirement savings plan. But, did you know there are different kinds of 401k plans? Do you know what a 457 plan is, or what its variation, the Roth 457 plan is? If you already have a good understanding of regular 401k plans, […]
Microsoft recently announced a big round of layoffs. According to reports, this is Microsoft’s biggest round of layoffs ever, at nearly 18,000 employees, all within the next year. Often, layoffs are all about Wall Street, rather than the company itself. Cutting jobs shows you are serious about cutting costs, which investors seem to care about […]
Each year, the IRS adjusts numerous tax numbers due to either tax law changes, or statutorily mandated adjustments. In several cases, these tax amounts are indexed to inflation so that they adjust automatically to keep up with inflation. In several cases, numbers are only modified for the current tax year when a certain limit or […]
If you have a small business, the taxes can be pretty tough to swallow. That’s why you need to be sure that you take all the tax write offs you possibly can to lower your small business tax bill. These small business tax deductions are particularly important for solo entrepreneurs and other self-employed business owners […]
The only question I get asked more often than, do I need a financial advisor, is do I need an accountant. The answer isn’t that complicated for most people, however, as with all things money and finance, there are always some exceptions that seem to throw off the ability for anyone to give a straight […]
Most of the time, if you find information for saving money on travel, you’ll find tips on how to get the lowest airfare, or how to get discounted hotel rooms. Unfortunately, these tips are often impractical for the vacation traveler, or even the business traveler. While it may be true that new airfares on released […]
Is the U.S. economy falling? Recently reports from various economic organizations, including the International Monetary Fund, or IMF, have begun to predict that the American economy will not grow as much as had been predicted by many organizations at the beginning of 2014. So, what does that mean? Is America Heading for Another Recession? Thanks […]
Scamming investors is a very old practice. Way before a centralized stock market institutionalized the dreams of investors looking to get rich, there were unsavory tricksters looking to pray on those dreams. Are Investing Newsletters Scams? Not all newsletters are scams. However, it is important to remember that even legitimate newsletters seldom have a solid, […]
It’s the middle of 2014. Have you opened that 529 plan account yet? A while back, while discussing whether or not you need a financial advisor, I talked about how just knowing what to do isn’t always enough. As an example, I pointed out that just knowing you need a 529 plan for your college […]