Month: June 2020



This is the Best State to Retire

With all of the doom and gloom in the world these days we wanted to provide a more upbeat article for you to read.  This article looks into retirement and what are the best states to live in during your retirement.  Florida came in as the best state to live in.  A quarter of the state’s population is age 60 or older and it obviously has sandy beaches and warm weather. The average home price in Florida is not at $252,000.  We could give you 5 guesses on who came in at number 2 on this list and we doubt that anybody would come up with the 2nd best state to live in during retirement – Minnesota!!!

Don’t Give Up the Dream of being a 401(k) Millionaire

This article makes a lot of great points regarding 401(k) investing and the need for employees to continue saving in their retirement accounts no matter what the circumstances.  If an employee were to review their first quarter statement they may have found themselves down 30 – 40% or more on their 401(k).  That turned around very quickly in the 2nd quarter and they may find themselves closer to breakeven now.   Fidelity Investments did a survey of 302 companies and found that 82% aren’t considering a match reduction or suspension of their plan.  While 9.6% of companies have cut or suspended their match, about half say they have active plans to reinstate it in the future.  Another important topic from this article is that if you have lost your job during this pandemic, don’t ignore your 401(K) account.  You should consider rolling it over to an IRA account and manage the account that way.  Just because you lost your job doesn’t mean you need to lose your 401(K) as well.

Mortgage Rates at Historic Lows

With interest rates at all time lows, that has also brought mortgage rates down to all time lows.  The 30-year fixed mortgage rate this week was at 3.18% while the 15-year is at 2.62%.  However, banks and lenders have retained tight underwriting standards for home loans, pushing the average credit score above 700.  This is causing younger buyers to delay their home purchase.  The average credit score among buyers between the ages of 30 and 39 is 673, which disqualifies them from financing a home.  Lenders have done this in order to reduce their risks and not put themselves in a position again like the 2008 housing crisis.