The S&P 500 has had six straight positive weeks, reaching another new high on Friday as corporations continued to exceed earnings expectations and the labor market holds steady. Concerns remain about inflation and the impact on fuel and fertilizer prices of the ongoing conflict in the Middle East.
For recent college graduates, they are facing the tightest job market in years. If that’s you, continue to utilize your school’s career center and alumni association. Continue to network, reaching out to have virtual informational meetings. Be sure you go into those meetings prepared: read about the person you are meeting and have questions to ask about their career path. Follow up with a thank you, connect with them on LinkedIn, and keep in touch as you continue your journey.
If you’ve found a job, be sure to sign up for your benefits. You may be able to delay enrolling in – and paying for – health insurance if you are still on your parents’ plan. You should still enroll in short- and long-term disability insurance. Contribute at least enough to your 401(k) or other retirement plan to receive the full employer match. The match is the same regardless of whether your contributions are traditional or Roth.
If you’ve moved to a new state, you need to register your vehicle and obtain a new driver's license, as well. Most states require this to be done within 30 days.
At a minimum, you also need to have a Power of Attorney and Advanced Medical Directive for your state. Many states have statutory forms, which can be downloaded from the Attorney General or Bar Association website. For other states, you may want to use an inexpensive online service.
Finally, open a High-Yield Savings Account, and have a small part of your paycheck direct deposited into it. Start with $10 or $20 a paycheck. As you’re able, increase the amount going into savings to slowly build your emergency savings.
Your action item this week is to adjust your withholdings. If you owed the IRS a large amount, or received a large refund, use the withholding calculator on the IRS website to determine how much you should be withholding. If you received a refund and are reducing withholding, take the extra you receive in your paycheck and put it to use, paying down debt, building emergency savings, or adding to your investments.
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CovingtonAlsina is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.