Financial Term of the Day: Double Dip
In the financial media lately, there's been a lot of chatter around the concept of a "double-dip." In short, this term refers to a situation in which GDP is on the rise out of a recession, but then begins to fall again, signifying another recession.
The chart, courtesy of Macroeconomic Advisers, shows monthly U.S. nominal GDP figures from the first two quarters of 2010. As you can see, nominal GDP rose through April but started to decline in May and June.
So what does this mean? Are we, in fact, heading into another recession? It’s too soon to say–The Economist cautions readers to take the figures with a grain of salt because of the instability of monthly numbers. In the meantime, as always, it’s important to practice healthy long-term investing strategies.
We recommend that you shouldn’t base your investing decisions on near-term worries; it’s better to think about your long-term goals. Betterment’s investment advice tools help you figure out how long your saving for, and how much risk you’re comfortable with. That’s the right way to think about investing, rather than reacting to current events, because current events and future expectations are already reflected in stock prices. What happens next is anybody’s guess, but in the long term, the market tends to rise.
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Based on our estimation, using Betterment’s retirement recommendations could earn you 38.8% more after-tax money in retirement compared to investing on your own.
Reducing Your Biggest Retirement Expense: Where You Live
You’ll probably want to retire somewhere different than where you live right now. Let’s make that part of your retirement plan.
Goal-Based Investing: A Decade In Review
As we all look forward to and plan for the future, let’s stop and take a look at the past decade to see what we can learn from it.
Explore your first goal
Our high-yield account built to help you earn more on every dollar you save.
This is a great place to start—an emergency fund for life's unplanned hiccups. A safety net is a conservative portfolio.
Whether it's a long way off or just around the corner, we'll help you save for the retirement you deserve.
If you want to invest and build wealth over time, then this is the goal for you. This is an excellent goal type for unknown future needs or money you plan to pass to future generations.