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Is My Home an Asset Or Liability?

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Have you ever heard the expression, “It’s a buyer’s market?” That phrase describes what’s happening with today’s residential real estate: homes are selling for under their asking price and are taking longer to sell. Good news for buyers; not good news for sellers.

I’m not a real estate professional, but I do understand that a home is often a critical asset for families. So, I would be remiss if I didn’t periodically update you on real estate trends and statistics.

As you can see, homes are selling at nearly 2 percent below the asking price. Perhaps even more concerning, homes are taking 56 days to go under contract–the longest in almost five years. So you may be seeing “for sale” signs up in your neighborhood for longer than you expect.
As you would expect, higher mortgage rates are the main reason for the slowdown. Higher mortgage rates mean monthly payments are near record highs.

If you have questions about your home, I encourage you to speak with a real estate professional with insight into your local market. But if you have questions about your home’s role in your overall personal finances, please let me know.

I’ll continue to pass along any information I have, including any updates on the outlook for interest rates.
RedFin.com, February 12, 2025
JMC Wealth Blog Retirement & Recession

Retirement Confidence Rebounds, But Inflation Looms Large

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The 2024 Employee Benefit Research Institute (EBRI) Retirement Confidence Survey was recently released, and it provides an illuminating look at the current state of retirement preparations and mindsets across the country.

While the findings show reason for optimism, with 68% of workers and 74% of retirees feeling confident about their retirement prospects, this represents only a modest rebound from 2023’s significant dip in confidence levels. Inflation remains the overarching concern, with 83% of workers worried that rising costs may impede their ability to accumulate sufficient savings.1

The survey data reveals a few other key themes that reinforce the importance of prudent, personalized retirement preparation:

Social Security Expectations
Social Security remains the bedrock of most retirement income strategies. An overwhelming 91% of retirees report receiving Social Security benefits, with 62% indicating it’s a significant income source. However, only 25% of retirees say they grasp the program’s nuances and how to optimize their benefits.1

Savings Imbalance
While Americans have ambitious retirement savings goals (one-third of workers believe they’ll need $1.5 million or more), there’s a disconnect with current realities. One-third of workers have less than $50,000 saved, and 14% have under $1,000 put away. This disparity underscores the necessity of developing a tactical, long-term strategy.1

Emergency Savings Needs
Two-thirds of workers would like more opportunities to save for unexpected expenses through their workplace retirement plans. Nearly one in five people admit to tapping their retirement funds for emergencies.1

Lifetime Income Appeal
There’s been a notable uptick in interest regarding products that can provide a guaranteed income stream throughout retirement. 83% of workers contributing to an employer’s plan want to convert some of their savings into a product that generates a steady income. As the risk of outliving one’s assets remains a pressing concern, these products may play a greater role.1

Annuities can be structured to provide an income stream in retirement, but it’s critical to understand they have benefits and limitations. We can explore this in greater detail if you are interested.2

The 2024 EBRI survey highlights retirement preparation’s complexity and evolving nature in the modern era. While no two individuals’ situations are alike, constant monitoring, being proactive, and adaptability are required to navigate the challenges and maximize the opportunities.

Every year, when the EBRI study comes out, I’m one of the first to read through it to see what’s on the minds of today’s retirees. It helps me stay focused on current and future priorities for retirees. As your financial advocate, I’m here to provide the guidance, tools, and solutions to position you for the comfortable, worry-free retirement you’ve envisioned and worked diligently to achieve. If you have any questions or concerns, I’m happy to help.
1. EBRI.org, 2024

2. The guarantees provided by an annuity contract are contingent upon the claims-paying ability of the issuing company. Annuities come with certain limitations, fees, and charges, which may include account and administrative fees, underlying investment management fees, mortality and expense fees, and charges for optional benefits. It’s worth noting that annuities generally impose surrender fees, which are typically highest if you withdraw your funds within the initial years of the contract. Withdrawals and income payments from annuities are subject to ordinary income tax. If a withdrawal is made before reaching age 59½, a 10% federal income tax penalty may apply unless an exception is applicable.
Stubborn child testing mothers resolve at breakfast

Stubborn Inflation Tests Fed’s Resolve

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Stubborn doesn’t seem like a strong enough word, but that’s how Fed officials are describing inflation.

Inflation’s “stubbornness” has been on full display in recent weeks: First, the Producer Price Index (PPI) showed that costs remain high for producers of goods and services. Then in September’s more widely followed Consumer Price Index (CPI) high prices continued to persevere.

To address inflation, the Fed’s primary tool is short-term interest rates. As it pushes rates higher, the Fed aims to slow the economy by raising borrowing costs. As economic activity cools, the Fed expects to see the CPI and PPI trend lower.

In the table below, you can see what professional traders anticipate will happen with interest rates over the next year. They expect the Fed will have to raise short-term rates to nearly 5% in 2023 to lower inflation.
We know this year has had its ups and downs. Just when it appears to have turned a corner, something else happens, and the financial markets are under pressure again.

You may have heard the old saying: “Don’t worry about the horse, just load the wagon.” Now is an excellent time to stay focused on what you can control, like your “wagon,” and we’ll keep an eye on the “horses” in the meantime.

 

 

 

This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.

Copyright 2022 FMG Suite.
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Weekly Market Insights, April 18, 2022

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Stocks posted losses in a holiday-shortened trading week as the first-quarter earnings season kicked off and investors digested new inflation data.The Dow Jones Industrial Average declined 0.78%, while the Standard & Poor’s 500 fell 2.13%. The Nasdaq Composite index dropped 2.63% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, lost 1.20%.1,2,3

Watching Bonds

Stocks began the week moving lower as bond yields climbed higher, with growth stocks suffering some of the steepest declines. Investors considered China’s ongoing lockdown warily, worried it might worsen supply-chain issues.

Historically high consumer and producer price inflation reports were shrugged off by the stock and bond markets in the main, with bond yields slipping despite the hot inflation numbers. Despite an encouraging start to the first-quarter earnings season, stocks pulled back on Friday as bond yields resumed their move higher ahead of a three-day holiday weekend.

An Eye on Inflation

On Tuesday, March’s Consumer Price Index (CPI) report offered little indication that inflation may be moderating, as prices increased 8.5% year-over-year, the fastest pace in 40 years. Core inflation, excluding food and energy prices, recorded a 6.5% jump, the steepest rise since August 1982. One encouraging note was that core inflation showed potential signs of ebbing, posting a monthly increase of 0.3% versus expectations of a 0.5% increase.4

The following day, March’s Producer Price Index, a potential insight into future inflation, rose 11.2% year-over-year. A March survey by the National Federation of Independent Business released earlier in the week, indicated that half of the respondents were likely to raise prices in the next three months.5

This Week: Key Economic Data

Tuesday: Housing Starts.

Wednesday: Existing Home Sales.

Thursday: Jobless Claims. Index of Leading Economic Indicators. 

Friday: Purchasing Managers’ Index (PMI) Composite Flash.

Source: Econoday, April 14, 2022
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.

This Week: Companies Reporting Earnings

Monday: Bank of America Corporation (BAC), J.B. Hunt Transport Services, Inc. (JBHT).

Tuesday: Netflix, Inc. (NFLX), Johnson & Johnson (JNJ), International Business Machines Corporation (IBM), Lockheed Martin Corporation (LMT), Prologis, Inc. (PLD).

Wednesday: Tesla, Inc. (TSLA), The Procter & Gamble Company (PG), Lam Research Corporation (LRCX), CSX Corporation (CSX).

Thursday: AT&T, Inc. (T), United Airlines Holdings, Inc. (UAL), Snap, Inc. (SNAP), Blackstone, Inc. (BX), Union Pacific Corporation (UNP), Dow, Inc. (DOW).

Friday: Verizon Communications, Inc. (VZ), American Express Company (AXP), KimberlyClark Corporation (KMB). 

Source: Zacks, April 14, 2022
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.

 

 

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advisory services offered through Sequoia Wealth Management LLC, a registered investment advisor.  Sequoia Wealth Management LLC and JMC Wealth Management, Inc are separate entities from LPL Financial.

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