Top news articles for financial advisors and personal finance
Week of 8/8
This week's recap focuses on the surge in refinances, income during retirement, maximizing value during a bear market and using Roth IRAs for college savings.
Wild swings in mortgage rates last week caused a rare surge in refinancing (Diana Olick, CNBC)
While weekly changes in interest rates continue to be volatile, this week we saw even more drastic changes in daily interest rates. This drastic change is suggested to be the reason refinancing applications increased this week. Read more about the link between the two.
From saving to spending: A second front emerges in the US retirement challenge (Alex D’Amico, Renee de la Roche-Zhu, Jonathan Godsall, Aditi Jain, Philipp Koch, and Jimmy Zhao, McKinsey & Company)
A recent survey showed that 80% of baby boomers may be underprepared for retirement. An even higher percentage do not feel confident about their retirement. While plans have focused on accumulation of savings for retirement, ensuring a steady income in retirement through decumulation plans has become increasingly important. Read more about how these issues can be addressed for groups with different levels of preparedness.
The Tricky Math of Retiring Into a Downturn (Tara Siegel Bernard, The New York Times)
Falling stock and bond prices coupled with high inflation has been unnerving for retirees as they don’t have the luxury of waiting out the downturn. However, T.Rowe Price analyzed how individuals who retired during downturns fared. Read more about the results of their analysis and tactics these individuals can use.
How To Maximize Your Firm's Value During A Bear Market (Jim Dickson, Financial Advisor Magazine)
While the bear market can be a stressful time for clients and by extension their financial advisors, the bear market can also represent an opportunity for advisors to deepen their relationships with existing clients and bring on new ones. Read more about specific actions you can take to maximize the value of your business.
Millennials should consider Roth IRAs over 529 plans for college (Erin Lowry, Financial Planning)
While 529 college savings plans are often the most popular choice for families to save for their children’s education, Roth IRAs can be a good alternative, especially for young millennial parents. Read more about when using a Roth IRA may be a better option.