Top news articles for financial advisors and personal finance
Week of 5/30
This week's recap focuses on alternative investment opportunities, democratizing certain asset classes, and the rising cost of housing and its effects on Americans.
Refinanced student loans offer big returns — and risks (Diana Li, Financial Planning )
With student loans bringing in a higher rate of returns, financial advisors and other investors are looking to them as alternatives to traditional investment such as stocks and bonds. However, student loans have their risks as they are unsecured loans. Read more to learn about whether adding student loans to your client’s portfolio could be the right move.
Private equity funds for retail investors? Advisors see serious risks (Diana Li, Financial Planning)
Recently, private equity index funds have been targeting advisors to access mass affluent clients. While the opportunity to access these funds may be appealing, advisors should consider whether the risk that comes with these funds is worth it. Read more about what advisors should consider before investing their clients’ money in these funds.
Home Prices Rise More Than 20% Year-Over-Year, Biggest Surge in 35 Years (Nicole Friedman, WSJ)
The average home price in major metropolitan areas rose by 20.6% year-over-year in March. This rate was the highest rate in price observed since they started collecting data in 1987. Read more about when we can expect home price growth to slow down
Rising Interest Rates Concern Apartment-Building Owners, Renters (Konrad Putzier and Will Parker, WSJ)
With home and especially apartment prices at record highs, apartment landlords are finding it increasingly difficult to pay back their loans. With increased prices and high interest rates, landlords are finding their return rates shrinking, sometimes resulting in landlords making less money on their apartments than their banks. Read more to learn about what this means for landlords as well as tenants.
One-third of Americans making $250,000 live paycheck to paycheck, survey finds (Alex Tanzi, Bloomberg)
36% of households making $250,000 use nearly all their income on household expenses. A large proportion of these expenses can be attributed to housing costs. Read more to learn about the spending habits of this segment.
