SmartReads

The conventional wisdom suggests that now is a terrible time to buy a home. In September, the average rate for new 30-year mortgages hit 6.29% according to the St. Louis Federal Reserve, almost triple their 2021 low of 2.65%. At the same time, the median sale price for houses continues to climb, most recently reaching $440,300. While the market’s rate of growth has slowed down, houses continue to get more expensive. So with asking prices still on the rise and loans nearly three times more expensive than they used to be, it’s no wonder many are advising against buying a house at this junction. It makes a surface level sense. Rising interest rates will make monthly mortgage payments considerably more expensive, so buyers should wait until those prices come down. Except financial and housing experts say it isn’t that obvious. In fact despite or even because of rising mortgage rates, now might actually be an excellent time to buy a home. If, and this is a very big if, you intend to stay there for a while. Here’s why. For more help understanding whether buying a home in this environment is right for you and strategizing your overall financial plan, consider meeting with a trusted financial advisor. Read More...

A 529 plan can be a powerful way to save for college, offering tax-free growth and other tax benefits. These accounts are so powerful, in fact, that many grandparents choose to open them for their grandchildren. In the past, there was a downside to a grandparent 529, though. Distributions from these accounts were included on the Free Application for Federal Student Aid (FAFSA), which had a negative impact on a student’s federal financial aid eligibility. However, new changes to the FAFSA form mean that grandparents can now contribute to a 529 for their grandkids without hurting the student’s ability to get federal financial aid. Here’s how the grandparent 529 loophole works. A financial advisor could help you put a financial plan together for your family’s education needs and goals. Read More...

Alimony is a court-ordered sum that one former spouse must pay to another due to a separation or divorce agreement. You might sometimes hear about spousal maintenance or spousal support, which are other terms for alimony. This typically happens when the court decides that the lower income earner has earned the right to a minimum standard of living from the higher income earner. You can work with a financial advisor to help you navigate paying or receiving alimony by creating a financial plan.  Read More...