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Embracing the Mess

From Josh Manifold, Principal | Advisor

People are messy, and therefore, relationships are messy. Don’t be surprised by the messiness.” – Tim Keller

When you look back on your life so far, how much has gone exactly to plan? Each of us has more than a few stories highlighting life’s unpredictable nature. Equally unpredictable–the people we become as we grow.

It’s common to pick our heads up from day-to-day life and sense that, maybe, we’re not where we thought we would be. What fascinates me is when this is true of our successes. We achieved what we aimed for, but it’s not the experience we assumed it would be.

During a recent interview, I asked marriage therapist Zack Brittle from the Marriage Therapy Podcast about this question. His response surprised me. (You can watch it below.)

If we want to experience true, lasting contentment, we need to build up a tolerance for life’s messiness. This is true of money, relationships, and even our sense of identity. Embrace the work of assembling your dream–intentionality makes all the difference.

Frozen Housing Market: High interest rates have greatly impacted U.S. housing. Instead of triggering a fall in home prices, as happened with commercial real estate, costlier mortgages have pushed residential values higher. The value of the median existing home rose to a record $419,300 in May, according to the National Association of Realtors. Before the pandemic, it was $270,000.

Some say the blame lies with the “lock-in” effect of ultracheap mortgages secured when interest rates were low, which is trapping owners in their homes. This is an unforeseen consequence of easy money. Two-thirds of U.S. mortgages have a rate below 4%. If these homeowners were to move, they would have to pay close to 7% for a new 30-year mortgage. The gap hasn’t been as wide since at least the late 1980s.

As more homeowners stay put, the number of homes on the market has fallen. Tight supply is pushing prices higher, shrinking the pool of buyers who can afford a house. According to the NAR, a household earning $100,000 a year can only afford 37% of home listings today. In a balanced market where there is around five months’ supply of inventory available, the number should be 62%.

The frozen housing market means that spending linked to home sales has dropped—renovations, professional work for those handling the logistics of home purchase transactions, and construction of new homes. On the flip side, millions of households are locked into cheap mortgage rates and can afford to spend elsewhere.

Reach out today if you find yourself confused about what to do with your current housing situation. We want to be part of the conversation and can help.

Planning with an Inheritance: Nearly daily, we talk with clients who have received an inheritance and the complications accompanying processing it. How does it impact your financial plan? How is it taxed?  What do you own now? What options do you have?  Inheritances come in different forms. For some, it’s bank accounts. At the same time, others receive IRAs, Roths, 401k, life insurance proceeds, brokerage accounts, or real estate. Regardless of its form, it takes careful planning and processing to ensure it is properly handled for your greatest benefit. We can help. If you have an inheritance coming, schedule a mid-year review today to consider how it impacts your current financial plan.




*The views expressed are those of the author as of the date noted, are subject to change based on market and other various conditions. Material discussed is meant to provide general information and it is not to be construed as specific investment, tax or legal advice. Keep in mind that current and historical facts may not be indicative of future results.