How Emotional Are You About Money? 😭

Here are our top 5 stories that could impact your money. 

1. Mortgage Rates @ Lowest Level In A Month 🏡
2. Can't Trust Your Kids With Your Inheritance? 💰
3. How Emotional Is Money To You? 😭
4. NY Landlords Challenge Rent Control In Court 👨🏻⚖️
5. How To Avoid A Tax Hit On The Required Minimum Distribution In Retirement 👴🏼

Before we get into our top 5 here is our weekly one question poll.

Markets: Year to Date as of 5/29

Our Top 5

Mortgage Rates @ Lowest Level In A Month 🏡

With mortgage rates on the decline amidst a slowing U.S. economy, the housing market is in for some positive news. The current 30-year mortgage rate hovers around 7%.

Historical data shows that whenever the 30-year mortgage rate dipped below 7% in the last two years, home buyers' reactions were varied. In November 2022, there was a notable 4% surge in mortgage applications following the dip, but in July 2023, a drop of 1.3% was observed.

The big question now is whether rates below 7% will entice home buyers to re-enter the market. This is especially crucial given the ongoing challenge of low housing inventory, a factor that continues to drive up home prices.

Can't Trust Your Kids With Your Inheritance? 💰

Here are some facts:

1. The median retirement savings for 55- to 64-year-olds is $185,000, according to the Federal Reserve’s Survey of Consumer Finances (2022).
2. One in four Americans over 50 told AARP they’ve no retirement savings and don’t expect to be able to retire.
3. The average 65-year-old couple can expect to spend $315,000 on healthcare, according to Fidelity. Nearly one-quarter of people over 65 will have a severe need for long-term care.

What type of financial position are you in for your retirement journey?

How Emotional Is Money To You? 😭

A few weeks ago, I was talking with another financial advisor about a friend of mine who reached out for help. The guy asked me, how my friend emotionally responded to money. Many of us might think, why does that matter? Money is a physical currency.

But, the physical money you see is just the tip of the iceberg. The emotions that go into how you manage your money are the ultimate driver of your long term financial success.

As one CFP put it, "The best investment is not necessarily the one that shows the highest long-term rate of return, it’s the investment that our clients can stick with."

How do you emotionally react to money?

NY Landlords Challenge Rent Control In Court 👨🏻⚖️

Newsweek had an article a few months back that shared the ongoing dispute going on in New York between landlords and tenants. 

The city voted to maintain rent stabilization laws that put in place protections against evictions and ensure tenants have access to several "required services" and lease renewal.

Last year, New York's Rent Guidelines Board said rents could only increase by 2.75 percent for the first year of two-year leases and 3.2 percent for the next year. 

Landlords have come out in opposition to the extended law, with some petitioning the U.S. Supreme Court to analyze its legality. The Supreme Court denied these requests three times in a row, but landlord rights groups say the rent hike and eviction protections violate their rights as homeowners. Especially as property taxes, inflation, insurance, and mortgage rates remain high.

It begs the question what will the city do if the landlords just give up on their properties if they can't turn a positive cashflow?

How To Avoid A Tax Hit On The Required Minimum Distribution In Retirement 👴🏼

Tax-deferred accounts like 401(k)s and traditional IRAs are fantastic tools for retirement savings, but they do come with some caveats.

When you defer taxes in these accounts, it's like entering into a financial partnership with the IRS. It's similar to getting a mortgage from a bank to purchase a home, except the IRS doesn't disclose the "interest rate" and becomes less patient once you reach 73.

According to current tax laws, the age of 73 marks the beginning of required minimum distributions (RMDs). This means account holders must start distributing and paying taxes on their account balances.

Given this scenario, finding ways to avoid the tax impact of RMDs is a common concern. This week's article by Smart Asset shares some strategies you can leverage to mitigate the tax consequences of RMDs below.

3 Things To Learn From Memorial Day 🇺🇸

Memorial Day is not merely a holiday for leisure activities or the unofficial start of summer, but a solemn occasion to reflect on the sacrifices made by military personnel to protect the freedoms and values of the United States. The day serves as a poignant reminder of the cost of freedom and the bravery of those who have given their lives in its defense.

With the November elections around the corner and a growing divide between the Left and the Right, I want to share 3 lessons that stick out to me as we honor Memorial Day.

3 Dad Jokes

Today at the bank, an old lady asked me to check her balance...

So I pushed her over. ⚖️ 

If your house is cold, just stand in the corner.

It’s always 90 degrees there. ⇱

Hi, I’m Cliff. Drop over sometime. 🧗🏻♀️