Reason Financial

08/29/2023

In summary:

- American Economy: a surprisingly robust start to 2023.
- Pandemic cash is running out and student loan forbearance is coming to an end.
- Short-term savings and emergency fund alternatives abound; now is a good time to look at how you are holding your money and whether better yielding alternatives are appropriate.

To learn more click on this blog.

EXECUTIVE SUMMARY American Economy: a surprisingly robust start to 2023. Pandemic cash is running out and student loan forbearance is coming to an end. Short-term savings and emergency fund alternatives abound; now is a good time to look at how you are holding your money and whether better yielding....

07/10/2023

In financial planning, people love to ask what their “number” is for retirement. One of the most frequently asked questions is: How much do I need to have in order to retire? To learn more about it visit our blog "Your kids’ college: How much will it cost?"

In financial planning, people love to ask what their “number” is for retirement. One of the most frequently asked questions is: How much do I need to have in order to retire? A lesser-asked question is: How much do I need to save to pay for my kids’ college? This…

06/23/2023

For many Americans, the decision to buy a house is the biggest financial decision of their lives up to that point. It’s also a topic surrounded by misinformation, from TikTok videos advocating real estate over a 401(k) to experts who warn against incurring any debt even in the form of a mortgage.

With home prices and mortgage rates in a constant state of flux in the wake of COVID-19, inflation, and the Federal Reserve’s response to inflation, we wanted to take a moment to review what you should consider when deciding whether to buy.

For many Americans, the decision to buy a house is the biggest financial decision of their lives up to that point. It’s also a topic surrounded by misinformation, from TikTok videos advocating real estate over a 401(k) to experts who warn against incurring any debt even in the form of…

06/09/2023

When we asked AI if they are coming for us this is how they responded: If you’re asking whether AI will replace jobs or disrupt industries, it’s important to note that AI has the potential to both create and replace jobs, depending on the industry and specific roles. Some jobs may be automated, while others might be enhanced or transformed by AI technologies. The key for individuals and businesses is to adapt to these changes by learning new skills and staying informed about advancements in AI and related fields.

More about this in our blog called "We Asked AI."

Great Question – Let Ask AI When we asked AI if they are coming for us this is how they responded: If you're asking whether AI will replace jobs or disrupt industries, it's important to note that AI has the potential to both create and replace jobs, depending on the…

05/26/2023

How important is a 20% down payment?

When it comes to putting a down payment on a home, the 20% rule may be less important than your personal budget. Ultimately, your ongoing monthly mortgage payments are going to have a much bigger impact on your finances than your initial down payment, so as you think about how much to save and put down, it’s important to keep the different moving pieces in mind.

If you want to learn which ones, then check out our latest blog!

When it comes to putting a down payment on a home, the 20% rule may be less important than your personal budget. Ultimately, your ongoing monthly mortgage payments are going to have a much bigger impact on your finances than your initial down payment, so as you think about how…

05/09/2023

April 2023 – Economic and Market Update

This year is better than last year so far, especially for fixed income. We are maintaining our focus on shorter duration due to a sustained inverted yield curve.

Inflation continues to ease. The costs of housing will likely take longer to correct than hoped for, with most loans being at very low interest rates obtained during the COVID pandemic.

The markets are still mismatching the Federal Reserve on interest rate expectations. We think this is a bad call based on language from Chair Powell and on the strength of the job market providing room for them to move.

To learn more click on our newest article below.

EXECUTIVE SUMMARY This year is better than last year so far, especially for fixed income. We are maintaining our focus on shorter duration due to a sustained inverted yield curve. Inflation continues to ease. The costs of housing will likely take longer to correct than hoped for, with most loans…

03/24/2023

We're just about a quarter of the way through the year. Here were some predictions for 2023 we posted earlier this year. Take a look at the infographic on our website and see how these are holding up.

03/15/2023

How do Americans spend their money? Check out this graph to find out..

06/03/2022

Congratulations to Jessica Folsom on her CPA Certification! It gives us enormous pleasure to congratulate one of our star employees, Jessica, on obtaining her CPA certification in Q1 2021. Jessica worked incredibly hard to accomplish this achievement – she obtained her Master’s in Accounting, accrued 2000 hours working under a licensed CPA, and passed the grueling 4-part CPA exam. No one attains this certification without a lot of determination.

Long nights of studying after long days of working are all that’s required – a strange sense of humor probably helps too. Congratulations, Jessica!

SAN DIEGO – Reason Financial is committed to the development, training, and support of our entire team in the financial services industry. It gives us enormous pleasure to congratulate one of our star employees, Jessica, on obtaining her CPA certification in Q1 2021. Jessica worked incredibly hard...

05/26/2022

A Pupdemic: The Pandemic Pet Boom Was Real, But It's Faded More Recently.

05/19/2022

How the Fed impacts rates: We get a lot of questions about the role of the Federal Reserve in interest rates. These questions range in specificity and are often influenced by the high volume of headlines speculating about what the Fed will do next or analyzing its role in the stock market and economy.

With the Central Bank forecasting a number of rate hikes in 2022, now is a good chance to go over how the Fed influences interest rates, including how the elusive “fed funds rate” works.

We get a lot of questions about the role of the Federal Reserve in interest rates. These questions range in specificity and are often influenced by the high volume of headlines speculating about what the Fed will do next or analyzing its role in the stock market and economy. With…

05/14/2022

April 2022 – Please take a look at our most recent Economic and Market Update.

Executive Summary Common sense discussions around inflation are starting to take place, but the voices are still out in the wilderness. Market performance during times of high inflation (4.4% - 10%) is vastly different from periods of severe inflation ( >10%).The SECURE Act 2.0 has passed the House....