Market Extra: ‘Proceed with caution’: here’s what Wall Street analysts see for the U.S. stock market in 2022

The recent spike in market volatility may herald a bumpier U.S. stock market in 2022, as investors come to grips with an inflection point in monetary policy in the pandemic.

“There probably will be some elevated volatility around the potential tightening of Fed policy,” said Shawn Snyder, head of investment strategy at Citigroup’s U.S. consumer wealth management division, in a phone interview. “Omicron throws in a bit of a wrench” to the 2022 outlook, he said of the new variant of the coronavirus, though investors have appeared encouraged by some early signs that it may be less dangerous than initially feared.

The CBOE Volatility Index VX00, -13.51%, or VIX, jumped in late November and remains above its 200-day moving average even after subsiding since last week, according to FactSet data. The VIX broke above 30 last week for the first time since the first quarter of 2021, the data show, amid market jitters over the emergence of omicron and the potential move by the Federal Reserve to remove some accommodation from the market faster than investors had anticipated.

“That’s a big transition that creates tension for investors,” said Lauren Goodwin, economist and director of portfolio strategy at New York Life Investment, in a phone interview. The Fed looks to be positioning for more flexibility for potential interest rate hikes next year, with increased inflationary pressure likely to mean more rate rises in 2022 than currently expected, creating more market risk, she said.

Some investors worry that interest rate-sensitive growth and technology stocks would be particularly vulnerable should the Fed aggressively tighten its monetary policy through rate hikes. The S&P 500 index, SPX, +0.08% which has a large exposure to tech, is on track for a third straight year of strong gains after rising almost 25% in 2021 through Tuesday, according to FactSet.

The U.S. stock market will probably deliver more modest gains “accompanied by higher volatility” next year, Jeffrey Kleintop, chief global investment strategist at Charles Schwab, told MarketWatch by phone.

Goodwin said she also expects increased volatility, amid transitions that include the fading of the fiscal stimulus that provided direct support to consumers during the COVID-19 crisis and the Fed taking its “foot off the gas” in the economic recovery. She expects “much lower” stock-market returns next year compared to gains so far in 2021.

“Most of the equity upside should be realized between now” and the first half of 2022, “when monetary and fiscal policy tailwinds will be strongest,” JPMorgan Chase & Co. strategists said in a 2022 outlook report Wednesday.

Wall Street banks have been rolling out their 2022 forecasts for the S&P 500, with Goldman Sachs Group and JPMorgan being among the most bullish on U.S. stocks. 

Goldman expects the S&P 500 will end 2022 at 5,100, according to a portfolio strategy research report from the bank dated Dec. 3. Meanwhile, JPMorgan analysts predicted in a research report at the end of November that the U.S. stock benchmark will rise next year to 5,050, partly on “robust earnings growth” and easing supply chain woes. RBC Capital Markets has forecast the same price target as JPMorgan, while Deutsche Bank predicts the S&P 500 will end next year at 5,000, according to a slide presentation from its chief investment office. 

Meanwhile, Citigroup set an S&P 500 target of 4,900 for the end of 2022, a research report from the bank in late October shows. Coming in below that level, Barclays predicted in a U.S. equity strategy report this month that the index will finish next year at 4,800.

“Proceed with caution,” the Barclays analysts wrote in their 2022 outlook report dated Dec. 2. “We see limited upside for equities next year,” they said. In their view, “household and corporate cash hoards should support modest earnings growth but persistent supply chain woes, reversal of goods consumption to trend and China hard-landing are key tail risks.” 

Bank of America’s analysts have a lower price target than Barclays for the S&P 500 next year, with a BofA Global Research report last month showing the benchmark will end 2022 at 4,600. 

“Unfortunately we see a lot of similarities between today and 2000 — the tech bubble peak,” said Savita Subramanian, head of equity and quant strategy at BofA, during a late November media briefing on their U.S. stock market outlook.

See: S&P 500 may end ‘pretty flat’ in 2022 amid previously ‘unthinkable’ negative real rates, says BofA strategist

Morgan Stanley has a more bearish outlook for next year that puts the S&P 500 below the index’s close Tuesday at 4,686.75. A report Monday from the bank’s wealth management division shows a base-case forecast of 4,400 for the S&P 500 at the end of 2022 even with an expected gain in earnings.

“We expect the S&P 500 to be range-bound and volatile, and bond returns to be negative net of inflation,” said Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management, in the note. “Fixed income should be reduced to fund greater exposure to real assets and to absolute return funds.”

The core of Morgan Stanley’s “cautious” view on the S&P 500 is based on price-to-earnings ratios typically compressing during “a midcycle transition,” Shalett said. She pointed to a chart in her note showing that “median stock has traversed the midcycle transition.”


The chart shows “the median S&P 500 stock has corrected 15% from its 52-week high,” but the index has been kept aloft by the 15 largest companies now accounting for 40% of its market capitalization, according to her note. 

“While they may be great companies, we are less convinced they will all be great stocks in 2022 as financial conditions tighten, interest rates rise, employment costs increase and inflation remains challenging,” Shalett said. “We think profit margins for the top 15 have peaked.”

In Morgan Stanley’s view, “this suggests investors should move toward stock picking and away from passive index funds,” her note shows. 

JPMorgan expects that “international equities, emerging markets and cyclical market segments will significantly outperform,” according to its report Wednesday.

“The reason for this is our expectation for increasing interest rates and marginally tighter monetary policy that should be a headwind for high-multiple markets such as the Nasdaq,” the JPMorgan strategists wrote, citing the tech-laden Nasdaq Composite Index COMP, +0.42%.

Citi’s Snyder told MarketWatch that during “midcycle” he likes high-quality stocks, “dividend-growers” and global healthcare  equities. Consistent earnings growth and “reasonable valuations” make healthcare attractive, he said, and stock bets in the area can serve as “a volatility dampener” in portfolios.

Immunology is one of three megatrends poised to accelerate next year as “a range of next-gen oncological therapeutics come up for approval and enable more targeted cancer treatment,” according to Jeff Spiegel, head of U.S. iShares megatrend and international ETFs. Shares of the iShares Genomics Immunology and Healthcare ETF IDNA, +1.42% were up about 0.2% this year based on midday trading Wednesday, FactSet data show, at last check.

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Two other megatrends to watch in 2022 are “digital transformation” intensifying through the cloud, 5G and cybersecurity, and “automation technologies” such as robotics and artificial intelligence, Spiegel wrote in a report this month. Automation technologies should grow “in response to ongoing supply chain bottlenecks and wage inflation” in the pandemic, he wrote.

“I think we’ll actually be dealing with gluts next year rather than shortages,” said Charles Schwab’s Kleintop. “That will help drive down inflation, particularly in the second half of next year, making an aggressive path of rate hikes unlikely.”

The market is expecting three rate hikes by the U.S. central bank in 2022 after Fed Chair Jerome Powell signaled last week that it may speed up the tapering of its monthly asset purchases, said Deepak Puri, Deutsche Bank’s CIO for the America, during a media briefing Monday on his outlook for next year.

While the Fed may become more aggressive in tapering its bond purchases, potentially completing the process in March instead of June, said Puri, he expects the Fed will still be “dovish” on rates next year. Puri forecasts that the Fed will raise rates just once next year, which is below consensus, he said.

“We expect two rate hikes next year,” said New York Life Investment’s Goodwin.

Morgan Stanley’s Shalett wrote in her 2022 outlook note that “we see a classic reflationary rebalancing in which higher nominal and real rates reflect higher average growth and inflation rates.” She also expects yield curves will steepen, profit margins to be squeezed by rising costs, and price-to-earnings ratios to compress in “rate-sensitive sectors.” 

“Within the U.S., we like reopening and reflationary themes and beneficiaries of higher bond yields,” JPMorgan said in its report Wednesday. The bank’s strategists expect the yield on the 10-year Treasury note TMUBMUSD10Y, 1.512% will rise to 2.25% by the end of next year, the report shows.

“Our view is that 2022 will be the year of a full global recovery, an end of the global pandemic, and a return to normal conditions we had prior to the COVID-19 outbreak,” Marko Kolanovic, chief global markets strategist at JPMorgan, and the bank’s global co-head of research Hussein Malik wrote in the report Wednesday.

According to Shalett, “on most counts, 2022 will be a critical year when the imbalances wrought by the global pandemic begin to resolve and the business cycle normalizes from extremes.”

The Margin: ‘Every step we take toward this catastrophe’: A ‘black box’ the size of a city bus will log the climate crisis

A reportedly indestructible steel box that will be roughly the size of a city bus will digitally collect and store climate-related conversations, data and artifacts, creating a blueprint of the environmental crisis for future generations and policy-makers, its Australian creators say.

Data in “Earth’s Black Box” might include land and sea temperature changes, ocean acidification, measurements of greenhouse gases in the atmosphere, human population figures, energy consumption CL00, +0.29%, military spending, legislative ideas and more.

The system will also store news headlines, trending social media posts and readouts from climate-change meetings. It is designed to grab old data, too, building a historical record of climate change.

The project, to officially launch next year, will include storage drives constantly downloading web-available information. Solar panels TAN, +0.65% and battery storage will power this function.

The Earth’s Black Box site shows a real-time scroll in beta to give an idea of the scope of data it will track.

“Earth’s Black Box will record every step we take toward this catastrophe,” write the project’s creators, including Australia’s University of Tasmania researchers and a marketing communications company, Clemenger BBDO.

“The purpose of the device is to provide an unbiased account of the events that lead to the demise of the planet, hold accountability for future generations, and inspire urgent action,” according to the website. “How the story ends is completely up to us.”

The ‘black box’ concept is akin to the term used for flight-data recorders, which log cockpit conversations and plane functions, typically helpful after accidents.

It also takes on a sculptural quality against Tasmania’s landscape, which the creators, including art groups, say gives it permanence.

Read: It’s got Leo and Meryl and the return of Jennifer Lawrence: ‘Don’t Look Up’ is the darkly comedic climate-change film that doesn’t mention climate change

Tasmania was chosen to host the climate project, the groups said, because of its relative geopolitical and geological stability, meaning it is considered resilient to the the climate change factors it is tracking. The location scored ahead of other candidates — including Malta, Norway and Qatar.

Environmental watchdog Climate Action Tracker has warned that under current policies, excluding proposals, the world is on track for 2.7 degrees Celsius of warming above pre-industrial levels. Scientists have said the planet should stay below a 1.5-degree increase to avoid the worst consequences of the climate crisis, including droughts, shore erosion, flooding, wildfires and more.

“This project is reminiscent of the Svalbard Global Seed Vault, but unlike the precious seeds in this northern Norwegian vault, the data to be stored within Earth’s Black Box doesn’t seem inherently useful, or at least not to me,” writes George Dvorsky, in a commentary on technology site Gizmodo, who said artful messages carry weight, but may not do enough toward actually cooling Earth. 

: A couple who earns $220,000 a year with almost no debt thinks they never have enough — how can they see things differently?

Ms. MoneyPeace,

I’d like to ask what my spouse and I should be thinking about and doing differently over the next decade before retirement.

We are 53 years old and married. Our home is worth $450,000, with just under four years to pay off the mortgage, and we have a $20,000 car loan and zero credit card debt. We are trying to be aggressive with our investing and debt reduction, and while we make $220,000, we live on considerably less.

We have been saving $3,000 a month and have $1.45 million earmarked for retirement. We are invested 100% into equities, including a large percentage of bitcoin BTCUSD, -0.07% and FAANG stocks. [FAANG stocks include Apple AAPL, +1.85% and Alphabet GOOG, -0.01%. ]

Until about two years ago we were invested completely in broad market mutual funds with a very low cost basis, but I feel a more hands-on investing focus is both satisfying and necessary for one’s largest asset.

In the past, we had an investment adviser who I never felt like they earned their 0.75%-1.25% fee to manage our investments.

We would like to retire by 62 at the latest — and leaving the workforce at 59 1/2 sounds even better. As we enter the final years of our careers, what should we do differently? What should we keep the same? And when do you think we could retire? 

Never feeling like it is enough

Dear Enough:

First, I will congratulate you on the determination you and your wife have had to accumulate your assets. Getting your children through college and nearing your mortgage payoff has taken hard work.

There is a reason “peace” is in my name. Your retirement and finances are about much more than numbers. Your laser focus on saving and investing seems to have overshadowed the realities of retirement details.

Send your questions to

Looking around and seeing others retired is appealing, especially those who adapted life plans as a result of priorities changing during the pandemic. According to the Pew Research Center, over half of U.S. adults over age 55 are retired.

Do not jump on the early retirement bandwagon just because it looks good. Retiring is more like planning a career than building a nest egg alone. Without understanding and preparing for this complex and emotional time, the idea of retirement may be more appealing than actuality of a major lifestyle change.

In addition, your signature says it all. The “feeling” that there is never enough cannot be eradicated by more money. Emotions and money are intimately tied together. So first and foremost, reach out to a financial therapist in your area through the Financial Therapy Association. There you can find someone to help you sort out that feeling of scarcity.

Second, you need professional guidance on your investments. I do not know what your career is, but your approach to handling your own investments demonstrate a lack of education on investing.

Focusing on the returns rather than being well-diversified is a pitfall for many do-it-yourself investors. For example, FAANG stocks have done very well over the past decade. But this is not guaranteed to continue. The aggressiveness of your investments may have served you well to date, but you are now heading into retirement, and it is time to taper your investment approach. Last weekend’s 20% bitcoin drop may have already been getting you to reconsider your strategy. And remember, the stock market does not always bounce back like it did from the March 2020 dip.

Investing is only one piece of the equation. Hire someone like a certified financial planner (CFP) who will help with all aspects of finances, from cash savings to charitable giving and loans. You are in need of this type of advice, as having a car loan on a depreciating asset demonstrates you are not saving for intermediate needs. Even if the interest rate is 0%, a car loan demonstrates a lack of an overall financial strategy.

For example, a CFP would suggest you put more in your 401(k)s and paying down debt even quicker. The 2022 401(k) individual contribution limit is $20,500, up from $19,500 in 2021. If you are 50 years old or older, you can also contribute up to an additional $6,500. That’s putting away $27,000 tax-free each year. For you and your wife, that is a whopping $54,000. Any costs in hiring a CFP will be offset by what they save you.

Plus, you and your wife need to prepare for the many aspects of retirement. Too many people are emotionally thrown when they realize it is time to withdraw money after decades of saving. I have seen individuals with plenty of money for retirement carry around this fear of not having enough in retirement and, as a result, make poor decisions. (This is why I can’t recommend financial therapy enough.)

The details and complexity in cash-flow planning continue in retirement, including Medicare premiums, tax issues and the ups and downs of investing. Knowledge in these areas is essential to a productive retirement, and a dedicated planner has this knowledge. The time to engage a planner is now, not a few months before retirement when you need to evaluate health-insurance options and a tax-efficient strategy for withdrawals.

Read: You could unwittingly triple your Medicare premiums — here’s what to watch for

Finally, you do not mention what you will be doing in retirement. This is a critical conversation to start having with your wife. You are both young and may be retired for 30 years. Where will you live? What will you do? What will your daily schedule be like?

Also read: Want a better relationship? Talking about money will help

Knowing what you are going to do in retirement is an essential part of the life-planning process. That will provide some information on what you will spend, making a connection with your investment needs. You will be financially better prepared for the long, healthy retirement you desire. Start seeking some professional advice now to make a better transition.

CD Moriarty is a certified financial planner, a columnist for MarketWatch and a personal-finance speaker. She blogs at MoneyPeace.

BookWatch: This surprising investing strategy crushes the stock market without examining a single financial metric

I am not a professional stock picker, but over the past decade my portfolio has beaten the stock market by a factor of three to one.

Unlike Peter Lynch, who advocated investing in the makers of products you love and who, in my estimation, stands out as one of the greatest of all stock pickers, I did not examine a single financial metric to build my portfolio. Instead, I simply ranked competitors in each industry based on customer love and then bet on the winner.

My portfolio has performed so well because the market undervalues the economic power of customer love. When customers feel loved, they come back for more and refer their friends. This is the economic flywheel that drives sustainable prosperity, and companies built on it generate surprising levels of profitable growth.

To measure customer love, I used the Net Promoter Score (NPS) that I created 20 years ago. It captures how likely a customer is to recommend a product or service to a friend or colleague. I relied on the market to incorporate all financial insights into the current stock price.

My buy-and-hold investing portfolio started with the 11 public NPS leaders profiled in my 2010 book, “The Ultimate Question 2.0“: Amazon AMZN, -0.11%, Meta Platforms (formerly Facebook) FB, +2.49%, Apple AAPL, +1.84%, Costco Wholesale COST, -2.63%, Google parent Alphabet GOOG, -0.01% GOOGL, -0.07%, Southwest Airlines LUV, +1.46%, American Express AXP, +1.36%, JetBlue Airways JBLU, +3.87%, Verizon Communications VZ, -0.75%, T-Mobile US TMUS, -2.91%, NortonLifeLock NLOK, -1.37% and Metro PCS Communications (which merged with T-Mobile in 2013).

In hindsight some of those stocks look like no-brainers, but back when the book was written they were anything but. Amazon had a market cap below eBay’s. T-Mobile was considered by many to be the weakest player in mobile telephony.

In the years since, however, this group’s extraordinary customer focus has paid off. From Jan. 1, 2011 to Dec. 31, 2020 these stocks outperformed Vanguard’s Total Stock Market Index exchange-traded fund VTI, +0.27% by a factor of 2.8 to 1. (This performance is market-cap weighted and rebalanced quarterly akin to VTI’s rebalancing).

Fred Reichheld

Since then, Bain & Co., where I have worked since 1977, has applied NPS to a long list of industries, and created NPS Prism, a data benchmarking service that ranks competitor NPS on an apples-to-apples basis. As we X-ray more industries, we continue to uncover new NPS leaders, among them Texas Roadhouse TXRH, +2.78%, Discover Financial DFS, -0.46%, Tesla TSLA, +1.44%, Chewy CHWY, -0.61% and FirstService FSV, -0.64%.  

I serve on the board of directors at FirstService, a real-estate services company whose social media handle #FirstServeOthers provides a hint about its corporate philosophy. Over the 25 years since the IPO, its annual total shareholder return has been just under 22%, a better record than all but seven of the 2,800 firms with revenues of at least $100 million at the time of their NASDAQ listing. 

For a long time, like many great customer-focused organizations, it remained below investors’ radar screens. One reason: GAAP accounting is woefully lacking at measuring customer centricity. It doesn’t even require organizations to report the number of customers they serve, let alone how many are returning, increasing purchases, or referring friends and family. 

This makes it hard to find comparable data. I first discovered online pet supply retailer Chewy when its self-reported NPS appeared in its IPO documents. Chewy does a tremendous job tapping into the special emotional tie between owner and pet, with things like the hand-painted pet portraits the company mails as surprise thank-yous to customers, who, delighted, then post them, along with glowing testimonials, across social media.

By our calculations Chewy’s NPS beats Amazon’s by 24 points in its category — an extraordinary performance. Chewy’s own numbers are slightly different from ours, however, and the inconsistency of self-reported numbers is one reason we developed a new metric called earned growth rate. It measures the revenue growth generated by returning customers and their referrals by combining net revenue retention (NRR), the back-for-more battle-tested statistic used in the software-as-a-service (SaaS) industry among others, with earned new customers (ENC), measuring how much new customer spending is earned through referrals rather than bought through promotional channels.

NPS exemplar First Republic Bank FRC, -0.57% has in the past earned 82% of its deposit growth, with 50% coming from existing customers and another 32% from referrals. Warby Parker WRBY, -2.34%, the direct-to-consumer pioneer in prescription eyeglasses, earns almost 90% of its new customers through referrals.

You can use this calculator to estimate your company’s earned growth rate.

Abingdon Press

In addition to these metrics, it’s also possible to spot NPS leaders by their common features.  

  1. They apply the Golden Rule – love thy neighbor as thyself. This often means eschewing bad profits. Discover Card, for example, never sells receivables to collection agencies.
  2. They empower their front-line employees to serve customers in creative ways. Companies like Chewy that give employees the freedom to serve customers with empathy and creativity engender trust in and loyalty to their companies.
  3. They integrate in-store and online customer feedback. Technology-rich companies like Warby Parker augment direct feedback with digital signals from customers and front-line employees to guide decision-making—crucial in helping companies respond to holiday shopping trends this season.
  4. They make customers their primary purpose. By going the extra mile to provide a customer with an experience that’s not just good, but remarkable, companies can play a part in enriching their lives beyond the product they offer.

I have spent most of my 44-year career focused on understanding the role that loyalty plays in building great organizations and helping leaders inspire their teams to embrace a mission of purposeful service enriching the lives of customers and colleagues. That is the right way—and the best way—to win in business and the stock market. 

Fred Reichheld is the creator of the Net Promoter system of management and the author of “Winning on Purpose: The Unbeatable Strategy of Loving Customers” (together with Darci Darnell and Maureen Burns), among other books.

Retirement Weekly: Are your retirement savings falling short? Here’s what to do.

The answer to “how much savings do I need for a comfortable retirement?” is incredibly personal. There are a lot of factors that go into determining this value for each unique person.

Whatever that perfect number is for you, the best way to get there is to start saving early. But if you’re closing in on retirement and feel like your savings are too lean, don’t worry—there are steps you can take, even late in the game, to set yourself up for a comfortable retirement.

1. Make a plan ASAP

Knowing how much money you need in savings to retire comfortably is the key question. And no matter what age you are, it’s never too late to make this calculation.

This value will be completely driven by how much you plan to spend on a monthly or annual basis when you retire. This is typically driven by your current lifestyle; however, lifestyles can fluctuate depending on what stage of life you’re in. For example, a young professional may prefer a more expensive lifestyle than they currently have, whereas a couple with three children may be currently spending more money on college savings than they will during retirement.

Whatever your individual case may be, sit down and map it out so you know the reality and can make sound financial decisions to help you reach your goal. If you aren’t sure how to begin, set up a meeting with a financial adviser to ensure you’re putting your best foot forward.

Read: The happiest retirees have at least $500,000, one financial adviser said. Here’s what readers had to say about that.

2. Avoid the comparison game

It’s human instinct—and we all do it—but when it comes to catching up on your retirement savings, it’s imperative to resist the urge to “keep up with the Joneses.”

When you’re building your wealth, try to quell your need for “the latest and greatest.” When you do buy something, buy quality so that it lasts and you won’t need to continually re-buy that item. Instead of wasting money on constant upgrades to items that still work just fine, you’ll be investing in your retirement and setting yourself up for a healthy financial future. Focus on you and your goals, not those of your neighbors or peers.

A good tactic to achieve this is reverse budgeting: living a lifestyle that’s affordable after your savings plans are in place. Once your savings and investments are tucked away, you’ll live day-to-day on the remainder. By not spending every dollar you make, and never “dipping into” your investments, you’ll set yourself up for successful savings.

3. Consider a backdoor Roth

If your cash flow and income level allow, a backdoor Roth could help you save more by building a tax-free bucket of money to use in retirement.

The backdoor Roth IRA allows high-income earners to put money into a Roth IRA for future tax-free savings that isn’t subject to Required Minimum Distribution requirements. There aren’t immediate tax benefits, but you’ll be able to take advantage of tax-free growth for the future—which can be key if you’re falling behind on your retirement savings.

Keep in mind that if you’re younger than 59.5, there is a rule that requires funds from a converted Roth to remain in the account for a minimum of five years, or you may be subject to an early-withdrawal penalty.

Read: Congress is about to kill this popular retirement tax move

4. Actions to take today

If you’re anxious to boost your retirement savings right away, here’s a list of quick tips to help you get started.

  • Use credit cards with benefit plans: Try to put most of your daily expenses on a credit card that offers points or mileage. Pay the balance off in full every month so you don’t incur fees, and use the rewards system to cover your leisure activities or vacations so the rest of your savings can go entirely to a retirement fund. 
  • Minimize your taxes: Lots of financial investments offer an element of tax savings to you—including retirement plans, home mortgage interest, charitable contributions, and health savings accounts. Consulting a financial and tax professional could be helpful to determine which of these options makes the most sense for you.
  • Consider college savings plans: If you have children and want to save for their education, there are many plans available that offer tax benefits. Review the benefits of custodial plans, 529 plans, and prepaid tuition plans to determine how much you might be able to save in future cash flow and tax savings.
  • Take advantage of “catch up” features: Retirement and IRA “catch up” features allow for savers age 50 and over to put away an additional $6,500 contribution for 401(k)s and $1,000 contribution for IRAs.
  • Invest in growth-focused investments: If you have five or more years until you need your retirement funds, adjust your portfolio to balance the risk of downturns in the stock market with bonds or stable-value investments.
  • Add investments with downside protection: Safeguard your savings in case the stock market makes an unexpected decline.
  • Consider you potential long-term care needs. Certain insurance policies allow you to purchase coverage that can be paid up in 10 years. It may be best to purchase these while you’re still working and earning income rather than when you retire.

It’s never too late to start saving aggressively for retirement. Making a comprehensive plan—covering savings, debt management, insurance, taxes, investments, retirement, and estate planning—is the best way to ensure you’re preparing today for what you’ll need tomorrow.

Faron Daugs, CFP, Wealth Advisor, is founder and chief executive of Harrison Wallace Financial Group.