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Monday Money Report

| August 22, 2022
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The markets fell last week, ending a four-week winning streak. It’s uncertain if we have reached bottom, and stocks will continue their upward trend, or if this was a bear market rally – where stocks briefly rise only to fall even further.  What does an individual investor do with this? Not much, really.  Stocks are, or should be, a long-term play.  Short-term fluctuations need to be ignored, and downturns should be capitalized on – buying low means you can buy more shares for the same dollar amount.

The stock market plays a large role in individual and family wealth in this country.  Together, home equity and retirement accounts make up 65% of total household net worth.[1] Three takeaways from that study of household wealth: college graduates generally have higher net worth.  The caveat here is a degree that leads to a career.  Getting a general degree for the sake of a degree does not always translate into success.  Before investing in tuition, consider the return on investment.  How much does a job in your chosen field pay?

The next contributor to wealth is marriage.  Incomes are generally higher for a couple than singles, and expenses are lower. This allows for great savings. Married couples on average had a net worth of $269,000 in 2019 compared to $50,160 for single men and $36,600 for single women.[2]

Finally, home ownership makes a huge difference. As of 2019, the average homeowner’s equity was $130,000.  Retirement accounts amounted to just under $70,000.[3]

These are all averages, though.  But education, marriage, and home ownership do correlate with higher net worth.

Your action item this week is to review your credit card statements for any unrecognized or recurring charges.  Ideally, this should be done every month, but with electronic statements many of us don’t check them as thoroughly. 

Be sure to follow us on Facebook and check out our website at covingtonalsina.com.

Investment advice offered through Great Valley Advisor Group, a Registered Investment Advisor.

All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. 

The opinions voiced in this show are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investment(s) may be appropriate for you, contact the appropriate qualified professional prior to making a decision.


[1] The wealth gap: These traits are common with affluent Americans, USA Today, by Russ Wiles, 08/09/22

[2] The wealth gap: These traits are common with affluent Americans, USA Today, by Russ Wiles, 08/09/22

[3] The wealth gap: These traits are common with affluent Americans, USA Today, by Russ Wiles, 08/09/22

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