Top news articles for financial advisors and personal finance
Week of 5/2
Each week, we are giving you Sora’s weekly report highlighting the top insights and relevant articles for financial advisors and personal finance. This week's recap focuses on the Fed’s recent spike in rates and what it means for the housing market, generational financial planning, gender disparities in wealth management, and how to survive a bear-ish market.
What the Fed’s Interest-Rate Increase Means for You (Julia Carpenter, The Wall Street Journal)
Truly the last few years have been a golden-age in the housing market – low rates, high bids on homes, and an influx of people moving from cities to suburbs. While a 5% mortgage rate is high compared to a year ago, historically it is still a low rate. With everything being more expensive, prioritizing your monthly payments is highly emphasized. Read more to understand how increasing rates will affect your home, auto, and student loan payments.
Record-Low Share of Americans Say It’s a Good Time to Buy a Home (Molly Smith, Bloomberg)
Only a third of Americans surveyed say that now is a good time to buy a house, likely driven by high home prices and mortgage rates. It is the first time since the survey’s inception in 1978 that Americans have collectively agreed that now is a bad time to buy despite 45% of Americans believing that real estate is the best long-term investment.
Multigenerational Planning and ‘The Most Important thing to Parents’ (Greg Bartalos, Barron’s)
With a new generation of young adults exploring the best money management practices, advisors are coming to realize that parents don’t care to pass on their wealth, but rather the practices that made them wealthy. This podcast/article explores capturing the younger generation client segment and the best ways to do so.
Managing the Next Decade of Women’s Wealth (Anna Zakrzewski, Kedra Newsom Reeves, Michael Kahlich, Maximilian Klein, Andrea Real Mattar, and Stephan Knobel, Boston Consulting Group)
Women control 32% of the world’s wealth and add $5 trillion to the wealth pool every year. However, women are largely ignored or underserved by the wealth management community. Read more to learn about how women approach wealth management differently and what advisors can do to serve this segment.
The Ideal Portfolio to Survive a Bear Market (Gary Shilling, A. Gary Shilling & Co.)
With a recession anticipated later this year, advisors must be cognizant of how they can protect their clients portfolios from a bear market. However, tactics that have worked in the past may not be as effective given current unique situations such as the war in Ukraine and dramatic shifts in the Fed’s policy. Read on to learn about what to expect in upcoming bear market conditions and how to minimize risk.