REACH YOUR GOALS
Are You Saving Too Much for Retirement?
Saving for our retirement is the #1 financial priority for Americans, with over half of us putting away at least 9% of our annual income for it. However, quite a few of us are actually overdoing it.
Research conducted by a major investment firm found that some respondents had overestimated what they would need to retire, and had set a goal of banking at least 30 years’ worth of income. This is actually three times more than what financial experts usually recommend. Also, if you find yourself needing cash before you retire, a withdrawal from a retirement account may be penalized.
Instead, setting an investment goal of 10 years’ of your annual salary will repay you with around 75% of your pre-retirement income when your Social Security payments begin. However, this works best if you limit post-retirement withdrawals to around 4% of your savings each year, as this leaves plenty of your funds intact and earning interest. Some survey respondents believed they could safely withdraw 10% of their savings each year, which could deplete their investment funds too soon.
Source: money.com
MORTGAGE IQ
Retiring Soon? A Reverse Mortgage Can Help You Move
If you’ve seen ads for reverse mortgages on television, you may think they’re limited to providing a source of funds after retirement. But if you’re age 62 or better, you can use a reverse mortgage product called HECM for Purchase to buy your next home.
It’s an option for seniors who have recently sold or are planning to sell their existing home so they can buy something more suitable. This could be a smaller home near family members, or a condo that allows them to retire their lawn mower.
Since these loans require a larger down payment (currently 45% or more), borrowers are offered flexible repayment terms. This makes it easier for buyers to buy what they want, preserve their savings and retirement funds, and keep their cash flow healthy.
Buyers may choose a single-family home, an FHA-approved condo or townhome, a home in a Planned Unit Development (PUD), a 2-to-4-unit property, or a manufactured home that meets HUD guidelines.
Borrowers are required to keep up with their taxes and insurance, and to keep the home maintained. Repayment is required when they sell or move out.
Source: reversemortgage.org
FINANCIAL NEWS
2025 Financial Trends Every Homeowner and Homebuyer Should Watch
As we dive into 2025, there are some big financial trends that could impact homeowners and future home buyers. While specific policies or rates may shift, these broader themes are worth keeping an eye on as you plan your real estate goals this year.
A Competitive Housing Market
Even with shifts in the economy, demand for homes remains steady in many areas. Limited inventory is keeping competition high, so if you’re looking to buy, preparation is key. Getting pre-approved, setting a clear budget, and working with a trusted real estate agent can give you an edge.
Home Equity Is Still a Bright Spot
Homeowners who bought in recent years may have built significant equity thanks to rising home prices. If you’re a current homeowner, this equity can be a tool for achieving other financial goals, such as renovating your home, consolidating debt, or investing in property. Exploring options like a home equity loan or cash-out refinance might be worth considering.
Smarter Home Management Saves Money
From rising energy costs to the push for greener living, smart home technology and energy-efficient upgrades are becoming more popular. Adding programmable thermostats, energy-efficient windows, or even solar panels can lower your monthly bills and make your home more appealing if you decide to sell.
Mortgage Technology Is Improving the Experience
The mortgage industry continues to evolve with new technology that makes the home financing process faster and easier. Digital tools allow you to apply, track your loan progress, and sign documents online—saving you time and hassle. If you’re planning to buy or refinance, look for lenders who offer these modern conveniences.
Affordability Is Shaping Buying Choices
Affordability is top of mind for many buyers, especially first-timers. Smaller homes, condos, or homes in suburban or rural areas are growing in popularity as buyers balance their needs with what’s realistic in today’s market. If you’re thinking about buying, explore all your options to find the right fit for your lifestyle and budget.
Planning Ahead
No matter where you are in your homeownership journey, staying informed and adaptable is key. Whether you’re buying your first home, refinancing, or simply trying to make the most of the home you have, keeping these trends in mind can help you navigate the year ahead with confidence.
DID YOU KNOW?
The Fowl Plague That’s Making Eggs Pricey
If you’ve been shopping recently, you may not have been able to buy eggs…and if you did, the price may have surprised you. The cost of eggs is nearing a record high, and it may be a while before the situation improves.
The USDA recently reported that the wholesale price of eggs, which is the price grocery chains pay before the retail markup, hit $6.55 this month.
While surging egg prices became a political sticking point last year, the reason behind this price spike never inhabited the White House. Instead, it’s inhabiting the country’s poultry farms. This is because bird flu is the culprit.
While bird flu was identified in Italy over 140 years ago and dubbed “fowl plague”, the H5N1 variant arrived here in early 2022. It’s been wreaking havoc ever since, infecting more than 145 million chickens and causing widespread egg shortages.
Farmers are suffering almost as much as their birds. A flock with just one infected chicken must be killed, and some egg producers have had to do this several times.
Getting rid of the H5N1 virus relies on farmers’ stringent disinfection practices and isolating egg-laying flocks. In the meantime, consumers may have to consider a new breakfast menu and using egg replacements when baking.
Source: money.com
PERSONAL FINANCES
Change Your Relationship with Money
While February is the traditional month to think about romantic relationships, you may also want to re-evaluate your relationship with your money. One or more of these strategies may help you feel better about your income, savings and future plans.
Review how you feel about money. If you hate budgeting, are embarrassed to talk about debt, or convinced you’re a terrible money manager, consider changing that mentality. Forgive yourself for past mistakes and create one or more financial goals instead.
Know your “why”. If you’ve already made one or more resolutions for this year, it’s not too late to tweak them. For example, if you can attach a financial goal to a bigger life goal, you’ll feel considerably more motivated.
Be assertive with credit costs. If you’ve noticed that a credit card’s APR is higher than before, pick up the phone. Research from 2024 found that most people who called their credit card issuer and asked for a lower rate were successful, with average reductions of around 6 points or more.
Set realistic deadlines. Getting into too much of a hurry to achieve a goal may backfire, as you’ll be unhappy if you miss your deadline. Instead, consider financial planning as a marathon, not a 50-yard dash.
Source: apnews.com
FOOD
Sparkling Sweetheart Cookies
Want to create a special treat for one or more special people? This recipe for Sparkling Sweetheart Cookies combines cream cheese and basic baking ingredients with your choice of heart-shaped chocolates.
REAL ESTATE TRENDS
Get Away from It All Without Leaving Home
Whether you enjoy solitude for meditation, yoga, or relaxing, it’s easier and more rewarding when you create your own relaxation room. Chances are there’s an area in your home that you can repurpose for this use. Here are a few guidelines:
Find a Quiet Space. Ideally, the room or area you pick will offer some degree of privacy. This can be a guest room, attic area or even an upstairs bathroom with minimal traffic. Outdoors spaces are fine if weather won’t interfere…it can actually improve your sense of serenity.
Keep It Minimal. You’ll need enough room to comfortably sit or lie down, so concentrate on eliminating items that crowd you. Find a simple cozy chair, floor cushion or several pillows.
Remove Distractions. If you’re using a room or area previously used for storage, you’ll need to declutter. Keep decor minimal and stick to a few plants or a vase of flowers to soothe you.
Customize Comforts. Make sure your area has just what you need to relax, from a yoga mat to a reading lamp. Keep your area tidy—clutter can actually be depressing.
Source: houzz.com