The Ascend Letter
Planning Corner: How Should I Be Saving?
Most people know they should be saving. The paycheck comes in, the bills get paid, and whatever survives the month gets pushed into a savings account or an investment. Save what's left over. For most households, that's the whole plan.
The question people ask themselves is "Can I save money?" I think that's the wrong question. The better one is "How can I save money?" And then, "Where should that money actually go?"
When I ask people where they're saving, the answer is almost always the same two words: "a savings account," or "a retirement account." Both are fine instincts but are also too vague to do you much good.
- A bank savings account? It's likely paying you less than 1%.
- A Roth IRA? Earn above $150,000 filing single, or $236,000 married filing jointly, and that option starts to fade.
- A 401(k)? Excellent for long-term retirement. But if you're hoping to retire before 60, a big chunk of your money is locked away. Not to mention if you're self-employed, you can't just "open one." It must be built to pass the IRS testing rules, or it turns into a headache instead of a plan.
So the point I am trying to make is yes, when you have extra income, it's good to remember to save (better if you save FIRST then spend). But coming up with a proper game plan on HOW to save is the difference between maximizing your savings for your situation and just blindly hoping it all works out.
The Macro Environment
The Nasdaq 100 had its worst week since April 2025. Corporate credits led the way as investors are beginning to worry about the debt these Neoclouds and Hyperscalers are taking on to fund their future infrastructure. CoreWeave corporate bonds hit nearly 15%! That tells you investors are demanding massive premiums above the risk-free 5% in order to carry their debt. This interest alone on these issuances is enough to bankrupt a lot of smaller players.
This weekend has been full of events. Ukraine hitting Russia oil infrastructure with drones, France and Italy are burning due to riots, questionable commentary around midterms in the US. Events like this create A LOT of noise. It may cause some short-term panic and it's important not to be a bottom seller.
What I am looking at this week. I will be watching to see how corporate credits unfold this week. We have some major earnings between SpaceX and Tesla as well. After the Roadster event where investors left feeling like flying, fundamental data could act as the gravity that brings them back to earth. Or it could be the rocket fuel. I will also be curious to see the pending home sales data seeing as housing affordability has been a major hot topic over the last few months. More sellers than buyers but buyers unwilling to step in at their mortgage rates.
See something you want to dig into? Reach out, I read every one.
Christian Cardoso, CFP®
Ascend Investment Management
Educational purposes only. This newsletter is not financial advice and is not a recommendation to buy or sell any security. Any companies mentioned are for illustration and are not recommendations. Past performance is no guarantee of future results. For guidance specific to your situation, let's talk.