As Q3 progresses, it’s a great time for investors to review their portfolios and explore new strategies. In this issue of Steady Investor, we examine three themes that could shape your investment approach:<\/p>\n\n\n\n
Why Utility Bills are Set to Go Higher \u2013 <\/strong>Utilities have generally tried to keep rate increases at or below the inflation rate, so as not to ruffle too many feathers with customers and regulators. Those days may be over. Electricity prices in the U.S. have risen by 4.4% over the past year, compared to the consumer price index (CPI) measure of inflation, which is up 3% over the same period. American households should expect these prices to continue rising, as utilities are poised to invest tens of billions of dollars to upgrade and stabilize the grid. In the next two years alone, utilities are expected to invest more than $165 billion in upgrades and replacements across the grid. Many of these costs get passed on to customers. The combination of old infrastructure and higher incidence of extreme weather events has led to a roughly 20% increase in outages over the past decade, with outage duration increasing by 46% over the same period. Utilities are scrambling to get moving on repairs that likely should have been underway for years now, and it\u2019s coming at a time when demand is expected to soar from the proliferation of electric vehicles and a massive build-out of data centers needed to power artificial intelligence.1<\/sup><\/p>\n\n\n\n The 2024 Presidential Election and Its Effects on Your Investing Portfolio<\/a><\/u><\/strong><\/p>\n\n\n\n The election is around the corner, and as challenging as it is to invest in this current economy, it’s still essential to stay focused on sound, objective decisions rather than emotions.<\/p>\n\n\n\n We recommend looking at historical market performance during election years to shape your current investing decisions. Our free guide,\u00a0Stock Market Returns in an Election Year<\/a><\/u><\/em><\/strong>, <\/em>shares insights into historical market performance during election years, including:<\/p>\n\n\n\n If you have $500,000 or more, fill out the form to get your free copy of this special report today\u2014and invest smarter during this election year!<\/p>\n\n\n\n Get Our FREE Guide: Stock Market Returns in an Election Year<\/em> <\/u><\/a><\/strong>2<\/a><\/sup><\/p>\n\n\n\n This 401(k) Oversight is Costing Investors Billions \u2013 <\/strong>New research from Vanguard Group shows that investors are giving up billions of dollars when they rollover 401(k)s. The problem is that they are not reinvesting the cash once the rollover is complete. In many cases, when 401(k) balances are rolled from an old company plan into an IRA, the custodian will liquidate the positions and transfer cash into the new account. And that\u2019s where investors run into trouble\u2014many believe that the funds are reinvested automatically, when in fact the funds sit idly in cash. According to Vanguard\u2019s research, Americans with cash-heavy IRAs miss out on more than $172 billion a year <\/em>in retirement wealth, as nearly one-third of those who rolled savings into IRAs in 2015 still had the balance in cash seven years later. In a recent survey, Vanguard also found that of 500 individuals who had completed a rollover in 2023, 68% did not know how their IRA money was invested. The opportunity cost of sitting in cash when the market is strong, as it has been in recent years, is high. Investors should make sure the funds in their investment accounts are allocated in accordance with their long-term goals and objectives.3<\/sup><\/sup><\/p>\n\n\n\n An Important Update for Social Security Recipients \u2013 <\/strong>Are you a recipient of Social Security benefits, or did you receive an email recently from the Social Security Administration? Don\u2019t ignore that email! For individuals who created an online Social Security account before September 18, 2021, those accounts will migrate to a Login.gov account where people will need to go to access their information. As of June, this means roughly 46 million of the 86 million people with an online Social Security account will need to shift to Login.gov. This change aims to streamline the sign-in process and align with federal authentication standards. Users who already have accounts with Login.gov or ID.me do not need to create new ones, while those without such accounts are encouraged to transition soon to avoid disruptions. Detailed online instructions are available to guide users through the transition process. This shift is part of SSA’s broader effort to enhance security and user experience. Login.gov offers round-the-clock customer support to assist users with any issues during the transition. The SSA recommends making the switch before the username option is phased out later this year.4<\/sup><\/p>\n\n\n\n Concerned with Your Investments During This Election Year? <\/strong>Investing during an election year requires setting aside political views to focus on objective, well-supported decisions.<\/p>\n\n\n\n To keep your portfolio on track during these turbulent times, we recommend taking a look at market performance from previous election years to guide your decision-making.<\/p>\n\n\n\n\n