In this week’s Steady Investor, we look at Saudi Armaco’s eye-popping
profit, declining mortgage rates and the latest updates on Brexit. Read on to
get the details:
Attention Future
Homebuyers! Mortgage Rates on the Decline – Lower long-term
interest rates have been setting off alarms for many market watchers and
analysts, in that it signals low inflation expectations and flattens/inverts
the yield curve – which throughout history has been a recession indicator. But
for homebuyers, falling long-term interest rates have been a boon via lower
30-year fixed mortgage rates. This week, mortgage rates approached 4% for the
first time in well over a year, which could very well spur a nice pop in the
housing market come spring, when many homebuyers step out to enter the market.
About 40% of home purchases of the year take place between the months of March
and June.1 While borrowing has become cheaper, home inventory has
also been on the rise and prices have not been rising as quickly. All good
signs, in our view.
9 of the biggest
financial mistakes you should avoid!
Many investors fall prey to common investing mistakes. Are you one of them?
See what we believe are the biggest mistakes investors make and how to avoid
them with our guide, “9 Retirement Mistakes to Avoid.”
If you have $500,000 or more to invest and want to learn more, click on the
link below:
Learn About the 9
Retirement Mistakes to Avoid!2
Turns Out Apple
Inc. Isn’t the World’s Most Profitable Company – Most
market-watchers have known for some time that Saudi Arabia oil giant, Saudi
Aramco, was raking in profits in astronomical sums. What many didn’t figure was
that it would be the most profitable company in the world. But this week, in
Saudi Aramco’s continued effort to posture itself for what could be history’s
biggest IPO, the oil giant released more detailed financial information for the
first time. The numbers were eye-popping – Saudi Aramco stated a net income in
2018 of $111 billion, which is more than Apple and Exxon’s combined 2018 income.
Saudi Aramco stated this financial information to secure financing for a $69.1
billion stake in Saudi Arabia’s national petrochemicals company, but it
revealed to the public so much more.3
Is a Retirement System
Overhaul on the Way? Here’s a word we haven’t heard much
recently: bipartisanship. But
it’s that very word, bipartisanship, that could in fact be in the works this
year for a new retirement bill. Both the Senate and the House have been
developing new retirement bills that intend to encourage more saving and make
setting up retirement plans easier, and both versions are close enough to each
other that they may even be reconciled to become law. The Senate is proposing
removing the age cap on contributing to traditional IRAs (currently 70 ½) and
also making it easier for small businesses to set up 401(k)s. The House plan
also has that provision, but would also push the RMD age out to 72 versus the
current 70 ½. Both plans would encourage 401(k) type plans to include an
annuity option to offer retirees the ability to generate guaranteed income, and
both plans would seek to pay for the changes by changing the rules surrounding
inherited IRAs. Under current law, beneficiaries of IRAs can often withdraw
money according to the deceased’s RMD schedule and stretch out the tax
payments, but both the House and Senate plan will look to require having the
money be withdrawn more quickly.4
Brexit, Again and
Again and Again – We’ve managed to make it a couple of weeks without
having to wade back into the Brexit story, but the issue is getting far too
close to the wire now. In this week’s developments, Prime Minister Theresa May
took the bold step of going across the aisle to try and pursue a deal with the
opposition Labour Party, since members of her own party have thrice rejected
her proposed deals for leaving the European Union. The end result was not a
breakthrough deal (which seems just about impossible at this stage), but a plan
to request yet another extension from the European Union, this time to May 22.5
Prime Minister May’s move is a bold one, as it may anger and frustrate members
of her own party as she pursues a far from certain deal with the opposition.
We can’t predict or control what is in store for the market, but investors can
stay focused on making sure their own actions help guide their investments to
succeed. One way to do this is not to fall prey to common investing mistakes.
There are common mistakes and habits that can help some investors succeed while
others fail. To help you understand some of these mistakes and how to avoid
them, we have created the guide, “9 Retirement Mistakes to Avoid.”6
In this guide, we provide our thoughts on what we believe are 9 of the biggest
retirement mistakes investors should avoid. If you have $500,000 or more to
invest and want to learn more, click on the link below:
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