Thank you for joining me today for two minutes. This is quick news on the economy, an interesting story, and a financial planning tip.
Economy
Home prices hit a record high. In May, the national median price for existing homes reached a record $419,300, driven by low inventory and competitive bidding wars. This marks a 5.8% increase from last year. High prices and elevated mortgage rates deter potential sellers, keeping the housing market's competitive inventory low. The affordability of homeownership remains a significant hurdle for many young families.
Interesting Story
The private sector is more efficient with taxpayers' money than government agencies. For example, SpaceX has reduced the cost of launching rockets from $1 billion per flight to $3-5 million, primarily through reusable boosters. The trend of the government allowing the free market, private contracts, and competition will increase so that they can steward taxpayers' money wisely and everyone can benefit.
Financial Planning Tip
Planning for a long-term health event is essential for a successful retirement. Most health events last three years and cost around $125,000 yearly. Create a plan with your family. Two ways to prepare are to stress test your retirement assets (self-insurance) or purchase long-term health care insurance. If your children are willing and able to assist, that is an important element. Some couples don't want to be a burden to their children. For couples, it's critical to run what-if projections in your financial plan to ensure the surviving spouse is financially secure if an event happens.
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About the Author
Noah Schwab CFP® is a financial advisor in Spokane, Washington, specializing in helping couples with 401k five years from retirement.
- Fiduciary. No commission, no products
- Investment management and financial planning
