Have you seen the news about Tesla and Apple lately? Their stock prices are surging to new highs after the announcement of a stock split. Is this what is supposed to happen with a stock split? Learn more about stock splits and what they mean for you by listening to this episode of Retirement Starts Today.
After we the Retirement Headlines I answer several listener questions. Have you been wondering about you and your spouse’s Social Security timeline? Should you roll over funds if you are happy with your 401K? Which is better--to dollar cost average or to max fund your retirement as quickly as possible? You’ll hear my take on the answers to these questions by pressing play now.
Before I share my thoughts about the recent announcement of the Apple and Tesla split, I want to clarify what a stock split is. A stock split is simply dividing the price of a stock. When a stock split happens shareholders double the number of their shares but, essentially, they should hold the same monetary value. So if I own 1 share of Ben Brandt Industries at $10 per share before the split then afterward I’ll own 2 $5 shares that also equal $10. The whole point of a stock split is to bring down the price so that it becomes more affordable for everyday investors.
Recently Apple and Tesla both announced an upcoming stock split at about the same time. When they did so their share prices soared. This isn’t a typical market response of a stock split and is actually a surprising outcome. Listen in to discover why you should stay well away from announcements like these and you’ll even learn why stock splits should be obsolete in today’s world.
Are you wondering what the best timeline is for setting up your Social Security benefits? If you have listened to my show at all, you know by now that I am a fan of maximizing the largest of the Social Security checks by delaying those benefits for as long as possible. Grow the larger Social Security check for as long as possible to help you build the foundation of your retirement plan.
If you are married then you likely have 2 Social Security checks to look forward to. Should you delay taking that benefit until age 70 as well?
I recommend waiting until full retirement age to file for this benefit, but keep it in your back pocket as a contingency plan. So, in case of a market downturn, you can be ready to turn on this benefit rather than dip into your savings before the market bounces back.
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