I hope this Tuesday finds you in good spirits. If not, then what needs to change in order to get you there? Life is short and thus I’m sending good karma your way. With the market down over the last week, many people are in poor spirits. Trust me, market swings will come and go. But, do not let it steal your thunder as this reflects the natural ebb and flow of the market. When I worked as a stock analyst at JPMorgan, I would experience stomach pains when the market moved more than a few percentage points downward. Over time, I had to learn not to let a down market affect my mood and physical well-being. It’s easier said than done, but with time will come perseverance.
My BIG hits from the week
Home Price Growth is Up. U.S. home prices rose in January at 5.9% for the first time since 2014. Seattle, Portland, and Denver are leading the way, but it’s also clear that home-price growth remains half of what it was in the mid-2000s bubble. Why is this happening?
“The accelerating gains are being driven by job growth, a large demographic of people entering their 30s and looking to buy homes, and limited supply of homes on the market”
Are you looking at your home as a dwelling place, or as an investment where you are banking on price appreciation? Real estate is still an asset class, and depending on your view, it can provide good diversification to your overall portfolio. Leave a comment with your thoughts.
Would you rather have $1 million or $5,000 a month in retirement? The WSJ raised this interesting question yesterday and it’s perfect. Which do you prefer? Your answer dictates whether you have an illusion of poverty or an illusion of wealth.
More importantly, the article encourages us to focus less of our attention on small daily fluctuations in overall wealth, as such changes rarely matter anyway—and think about how our savings will impact our lifestyle in retirement. I’m all about this way of thinking because we must plan for our future lifestyle. A small practical approach might soon hit your 401k plan because a pending Congressional bill would require employer-sponsored retirement plans to provide you with a projection of monthly income in retirement based on their savings.
What’s been your bold move over the past few weeks – are you staying the course or changing direction? I want to know. Until then, have a great week.