Fueled by more plentiful jobs, the U.S. residential real-estate market is skyrocketing. In some areas, particularly major metropolitan cities, buyers are struggling to either find or afford a home. Those lucky enough to find the right place have to move quickly — gone are the days of extensive deliberation on whether a house fits every needs.1
According to Zillow, houses in 2017 sold in a median of 81 days, including the time to negotiate contracts and close, meaning many homes were on the market for less than a month.2 For homeowners thinking about downsizing in retirement, this may be the time to take advantage of the current housing price bubble. If you are in the market to sell your home, many real estate experts recommend selling before 2020 when another recession is expected.3
Market trends come and go. Whether you’re considering changes to your financial strategy or living circumstances, it’s a good idea to take a long-term perspective despite current trends. The ages of retirees range from 50 to 100+, so we understand off-the-shelf, cookie-cutter advice just doesn’t cut it.4
Today’s planning focus is often goals-based, rather than performance-based, with a customized financial strategy rather than just an investment portfolio.5 If we can help you develop a long-term financial strategy designed to meet your goals, with the flexibility to take advantage of current market trends, please give us a call.
While some wealth managers caution that the current long-running bull market is due for a correction, at least two Wall Street strategists claim this trend of rising stock prices could last a total of 20 years. But take caution; even in this optimistic scenario, investors should expect periodic volatility and corrections of up to 10 percent.6
Today’s market environment — characterized by rising inflation, the strengthening dollar and a less predictable global market for multi-national corporations — lends itself to a rise in small-cap stocks. So far this year, the Russell 2000 Index has outperformed the S&P 500 Index’s large-cap stocks.7
The price of oil is another market trend ready to skyrocket, which could increase the average gas price in the U.S. above $4 per gallon — about 40 percent higher than today. While the average household may feel the pinch, businesses can offset the capital expense with additional spending, and shale-productive areas like New Mexico and Texas are poised for higher growth.8
Content prepared by Kara Stefan Communications.
1 Aaron Brask. Apha Architect. April 19, 2018. “Quantifying the Value of Retirement Accounts.” https://alphaarchitect.com/2018/04/19/quantifying-value-retirement-accounts/. Accessed June 2, 2018.
2 Craig Stephens. U.S. News & World Report. May 18, 2018. “6 Low Risk Investments to Build Retirement Income.” https://money.usnews.com/money/blogs/on-retirement/articles/2018-05-18/6-low-risk-investments-to-build-retirement-income. Accessed June 2, 2018.
3 Nathan Slaughter. Nasdaq. May 11, 2018. “The Simplest Move To Reduce Your Tax Bill.” https://www.nasdaq.com/article/the-simplest-move-to-reduce-your-tax-bill-cm962117. Accessed June 2, 2018.
4 Larry Light. Forbes. May 15, 2018. “Does Switching To A Roth IRA From A Regular One Still Make Sense?” https://www.forbes.com/sites/lawrencelight/2018/05/15/does-switching-to-a-roth-ira-from-a-regular-one-still-make-sense/#2a16f2664436. Accessed June 2, 2018.
5 Brian O’Connell. Insurance News Net. May 20, 2018. “Investors Perk Up As Bank CD Rates Near 3 Percent.” https://insurancenewsnet.com/innarticle/investors-turn-flirtatious-eye-toward-bank-cds. Accessed June 2, 2018.
Neither our firm nor its agents or representatives may give tax advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions.
We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.