Planning Ahead | Budgeting and Better than AirPods

Considering Your Purchases:  According to a study by the Bureau of Labor Statistics, this is how Americans are spending their money:

These are, of course, generalized averages. But, according to the Bureau, this is fairly typical. Americans spend nearly half their budget on housing and transportation. The biggest culprit is the purchase of trucks and SUVs. This chart shows the percentage of residents by state who are paying $1000 or more per month for their auto payment:

And despite the supply chain issues affecting car purchases, luxury vehicle purchases are up 5%. If you’re feeling the squeeze, it’s real. And a look at the personal budget, making real decisions might help in unlocking the key to personal wealth even in the market downturn.

Thinking Ahead: It’s not the most popular topic to think about when it comes to your finances, but it really is a necessary one. We spend a lot of time talking about and saving for retirement. But what about the time after retirement? Like a sound financial plan, waiting until the last minute to think about and make decisions regarding end of life isn’t wise. Maximizing quality of life in your final days shouldn’t depend on family emotions. Understanding how hospice care works before you or a loved one needs it is a great first step. The majority of families enrolled in hospice give it a high grade (see chart). Too many people delay and don’t receive the full benefits of the service. Accessing these benefits early on as you care for a loved one, or walk through this season yourself, can allow you and your family to maximize your time together. If you’d like to discuss ways to go about learning more with your advisor today, don’t hesitate to reach out.

Business Briefing

• Redfin: Real estate company Redfin Corp., said on Wednesday that it was laying off 13 percent of its workers and shutting down its home flipping unit. Redfin’s decision to close the RedfinNow home-flipping business came after larger rival Opendoor Technologies reported record losses last week after selling too many homes for less than their purchase price.
• China Lockdown: China has locked down large sections of the southern city of Guangzhou as authorities try to keep a widening COVID-19 outbreak from getting worse. The restrictions affect more than five million of the manufacturing hub’s 19-million residents. The snap lockdowns continue to drag down the Chinese economy.
• Meta Layoffs: Facebook-parent Meta is laying off thousands of employees starting with nearly 11,000 to be exact. The Meta layoffs are the biggest yet in a series of announcements of cutbacks at big technology companies.

Never Too Young: A 14-year-old in San Diego, CA was named the grand prize winner of this year’s 3M Young Scientist Challenge. Leanne Fran developed Finsen Headphones, a low-cost headphone device that uses machine learning and blue light therapy to detect and treat mid-ear infections in children—potentially preventing up to 60% of hearing loss in children. The incoming freshman won a $25,000 cash prize, a special destination trip and the prestigious title of “America’s Top Young Scientist.” Perhaps something to add to your Christmas list!