Wealth Management Blog | WrapManager (8)

The True Cost of Homeownership

Posted by Michael J. O'Connor | CWS®, Vice President Investments

April 11, 2018

The act of buying a first home is often framed as a wonderful, life-changing experience. And to be sure, it almost always is. But it’s the process of buying the home that’s not always so picture-perfect, and in fact usually comes with an odd set of juxtaposed emotions: joy and frustration, surprise and shock, relief and anxiety, a feeling of stability but then also a feeling of uncertainty. In short, it’s somewhat of a wild ride for first-time homebuyers!

Much of the ‘negative’ side of the emotion equation stems from a common source: unexpected costs. Many first-time homebuyers simply aren’t aware of the extensive list of fees and costs associated with buying a home, which is why a recent survey by TD Bank found that nearly 50% of homebuyers incurred more than $2,000 in unexpected charges during the home buying process. 10% of those surveyed said they spent at least $5,000 more than expected.[1]

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Financial Planning

How to Research a Money Manager

April 10, 2018

The age of the internet has given us a lot of good information, and it’s made research easier for the average person. Wondering who won the Oscar for Best Picture in 2017, what happens to muscles as you age, or how to train a cat? The answers are just a few keystrokes away. As information becomes more and more accessible, it’s become easier and easier to learn how to DIY thousands of activities that used to be regulated to the realm of learned experts (ie. car repair, investment management, and self-diagnoses). Even for those things that you choose to outsource to an expert – and there are more than a few things that are still worth outsourcing to a trustworthy expert – there is a huge amount of power in understanding (at least the basics) how their processes work. [+] Read More

J.P. Morgan Releases 2Q 2018 Guide to the Markets

April 5, 2018

J.P. Morgan Quarterly Guide to the Markets Now Available JP Morgan's Guide to the Markets (GTM) for the second quarter of 2018 is now available for your review. The comprehensive 71-page includes detailed charts illustrating: S&P valuation measures The length and strength of economic expansions Interest rates and inflation [+] Read More

Should You Be Concerned About Rising Interest Rates?

April 3, 2018

With interest rates spiking unexpectedly in early 2018 and the Fed poised to continue raising interest rates throughout 2018, some bond investors have become very concerned about experiencing negative returns in their bond holdings. While rising rates will have a negative impact on the price return of a bond investment, this impact can be offset by the positive impact of coupon income. A rising rate environment isn’t necessarily bad for bond investors in the long run because it will lead to higher coupon payments in the future. As interest rates rise, investors will demand higher coupon payments from newly issued bonds. Also, coupon payments from existing bonds can be reinvested in these newer, higher yielding bonds. [+] Read More

Nuveen Believes Market Fundamentals Remain Solid Over the Long-Term

March 29, 2018

Are investors overly pessimistic about downside market risks? While fundamentals haven’t changed significantly, volatility has picked up recently and stocks have been trading in a broad range between their early February highs and the low established in last month’s correction. The U.S. and global economies appear on sound footing, inflation pressures appear contained, the labor market remains strong, corporate earnings are solid and interest rates have been rising only modestly. Given this divergence between our views and market behavior, we think it makes sense to focus on why we think some risks may be overstated. Read a summary of Nuveen Asset Management's weekly investment commentary below, or download as a PDF. [+] Read More

Managing Health Care Costs in Retirement

March 28, 2018

It’s the retirement planning topic that, candidly, cannot be overstated or discussed enough: planning for healthcare costs. Crucial as this subject is, it arguably does not receive a proportionate amount of attention in retirement planning conversations around the country – which is ironic, given that retirees over the age of 65 are likely to spend a sizable percentage (~13% according to J.P. Morgan) of their total retirement income on healthcare. Let’s jump right into the numbers. AARP has created a useful calculator for estimating healthcare costs in retirement, which you can access here: Estimate Your Healthcare Costs in Retirement. [+] Read More

JP Morgan Examines Economic Growth and Employment

March 22, 2018

JP Morgan's weekly update offers investors an at-a-glance summary of economic news and reports.This week's update looks at: • Economic growth • Corporate profits • Employment • Changes at The Fed Read an excerpt from this week's update below, or download JP Morgan's complete economic commentary. [+] Read More

How Does Loss Aversion Affect Your Investment Goals?

March 20, 2018

Many readers have probably heard the axiom that investors “loathe losses about twice as much as they enjoy gains.” This notion that losses loom larger than gains is a behavioral finance idea known as “loss aversion,” and it’s been around since 1979 when two economists, Kahneman Tversky, formalized the idea in a paper called Prospect Theory. To give you an idea of just how widely accepted the idea of loss aversion is, Prospect Theory is the most cited paper in all of economics and the third most cited paper in psychology. [+] Read More

What’s the Best Way to Make Tax Efficient Gifts to Adult Children? – Doug’s Quiz Corner

March 16, 2018

Quizmaster, Doug Hutchinson, presents his quiz for the month. Here, Doug helps you navigate tax efficient gifting strategies to help a friend transfer wealth to his adult son for school tuition and a future home purchase. Consider this Scenario: Your friend Gus is considering helping his son, Walter, with the cost of paying tuition and purchasing a new home over the next couple of years. Walter has two years of school left (including this year) and he is planning to purchase a home next year. [+] Read More

Nuveen Weighs the Effect of Trade Tariffs & Investors Bidding Up Stock Prices

March 15, 2018

Investors look past trade risks as stocks gain ground... President Trump’s proclamation of 10 - 25% trade tariffs dominated most of the financial headlines last week, but investors looked past the negatives to bid up stock prices. The S&P 500 Index rose 3.6% last week. Half of that gain came on Friday, following a strong labor market report that showed jobs increases and stable wages. For the week, industrials, financials, technology and materials were all up over 4%, while utilities lagged. Treasury yields also rose last week in the face of stronger economic data. Read a summary of Nuveen Asset Management's weekly market review below, or download the entire investment commentary as a PDF. [+] Read More