Last week I hosted a gathering of clients and friends to talk about the process of a year end check up. I know, you’re probably thinking more about football, weekend gatherings and getting ready for the holidays, and so were they. But a little time invested now, can payoff in multiple ways.
3 Key Takeaways:
Mortgage rates are the lowest they have been since 2016 and applications to refinance are up. The national average for a 30 year fixed mortgage has fallen to 3.6% as of August 14, 2019, down almost 1% from the average rate of 4.54% in 2018. A good rule of thumb – refinancing makes sense if rates are at least ½% to 1% lower than your current rate. If your current rate is more than 4.375%, and it likely is if you purchased your house in the last 3 years, you may be a prime candidate to benefit from refinancing.
The topic of being a fiduciary came up again with a recent SEC ruling. Fiduciaries are legally required to act in their clients’ best interests. One would think that anyone calling themselves a financial advisor would be a fiduciary, however, that is not the case.
As I get older, I’ve become more curious about Social Security. I’m in my mid 40s and I have been paying into the system since high school. Hopefully, I’m 20+ years out from claiming benefits but given how fast life goes by, it’s never too early to start thinking about and planning for Social Security. It’s a topic that many people shy away from, but in planning for your financial future, it’s an income stream that needs to be accounted for in a financial plan.
To kick off our series of articles on this topic, I am starting with 5 myths about Social Security:
Politics aside, it was tragic to hear that many government workers ran into trouble paying their bills when they did not have a paycheck for a month. Unfortunately, this cash shortfall is not unusual, as a Federal Reserve survey last year showed that 40% of American adults would not be able to cover a $400 emergency expense or would do so by borrowing or selling something.