Happy Fall,
As the leaves turn golden and the air becomes crisp (maybe not for San Diegans😜), we’re reminded of the passage of time and the opportunities that come with it. October isn’t just about pumpkin spice lattes and cozy sweaters; it’s also Financial Planning Month! It’s the perfect time to re-evaluate, adjust, and set the stage for a strong financial close to the year.
Here’s a checklist of things you should consider doing this October to get your finances in tip-top shape:
- Schedule a Meeting with Your Advisor:If you have not done so already. Please use the schedule link button See all available times
- Budget Review:Compare your actual spending to your budget. Adjust categories as needed for the holidays and end-of-year expenses.
- Tax Planning:Start gathering documents and consider any last-minute deductions. If you’re uncertain about tax changes, now is a great time to schedule a consultation. Have RMDs been withdrawn?
- Retirement Check:Are you maximizing your 401(k) or IRA contributions? Consider increasing them if not. For IRAs you have until the following year tax deadline to contribute retro-actively.
- Estate Planning:Review your will, trust, and other estate planning documents. Ensure beneficiaries are up-to-date.
- Debt Review:List all your debts and consider if there’s any you could pay down before the year ends.
- Insurance Audit:Review your insurance policies – health, life, auto, home. Are there any changes or updates needed?
- Holiday Budgeting:It might seem early, but planning your holiday budget now can save you stress (and money!) later.
- Charitable Giving:If you’re planning year-end charitable gifts, start organizing now.
The beauty of October is that it gives us a moment of reflection before the end-of-year rush. By taking proactive steps now, you can enjoy the holiday season with peace of mind, knowing your finances are in order.
Now, turning our attention to other matters in our newsletter. Today, we’re diving into the changing dynamics of the housing market, Nike’s latest challenges, and innovative efforts to combat the plastic crisis. Grab your morning brew, and let’s dive in!
Renting vs. Buying: The Great Debate
Fun Fact: Did you know the term “American Dream” was popularized during the Great Depression to describe the ideal that every U.S. citizen should have an equal opportunity to achieve success and prosperity through hard work and determination? A major part of that dream has been homeownership.
But times are changing! CBRE’s recent analysis reveals a dramatic twist in this tale. For those seeking to get a foot on the property ladder, buying a house in the U.S. currently seems like a financial misstep. Monthly mortgage payments are a whopping 52% pricier than typical apartment rents (1). The gap between renting and buying has never been this wide in the 27-year history of CBRE’s research.
Several reasons, including escalating prices, dwindling inventory, and climbing mortgage rates, have made buying a home appear more like a fairy tale for many. And remember those days in the 2010s when buying seemed more economical than renting? Well, it’s a distant memory for many Americans today, especially the 51% who fear they may never be able to make that inaugural purchase.
So, what’s next? Will rents skyrocket or will housing prices dip? Only time will tell.
Nike’s Unexpected Trip
Storytime! Nike, a name synonymous with shoes, successfully straddled two worlds – fashion and performance, akin to walking a tightrope in heels! But even the best sometimes stumble.
Despite their massive annual sales, Nike has faced recent challenges. Fitness brands like Hoka and On are giving them a run for their money, no pun intended! In fact, On, backed by tennis sensation Roger Federer, saw its sales spike by 52% recently (2).
Nike’s response? They’ve been adopting a direct approach, eliminating middlemen, and selling directly to customers, aiming for higher profit margins. However, there’s been a hiccup, with sales dipping in North America. Time to retie those laces, Nike!
The Plastic Predicament
Before we wrap up, let’s touch on a global challenge. Imagine every year, mankind produces 80 times the weight of the Empire State Building in plastic waste!
Recently, a group of dedicated chemists unveiled a potential game-changer: recyclable polymers. These can be transformed into various plastic-like materials and then broken-down post-use. While it’s still in its early stages, it’s a glimmer of hope in our quest to find sustainable alternatives to single-use plastics. Despite significant advances in recycling since the 1950s, our plastic addiction remains unsatiated. Here’s hoping innovations like these pave the way for a greener future.
That’s a wrap for this edition! Keep dreaming big and making informed decisions. Until next time, financial aficionados!
Warmest regards,
Alan Grismore
Author Alan Grismore, WMCP ®
Alan is the founder and Wealth Advisor of Alta Private Wealth, Inc. (APW)
You can check out more info @ Altaprivatewealth.com
APW and Axxcess Wealth Management, LLC (AWM) are not affiliated.
(1) https://www.wsj.com/economy/housing/theres-never-been-a-worse-time-to-buy-instead-of-rent-bd3e80d9