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REACH YOUR GOALS
How To Think Wealthy If You're Not Into Numbers
If you've been avoiding investing, you're not alone. Nearly half of America's adults report owning no investable assets, according to a 2024 survey. However, it isn't because they don't have the funds: it's their mindset that's holding them back. Investing seems too complicated to consider, which isn't surprising as math is not a popular subject for students.
Psychologists call this outlook complexity aversion. We don't want to make a mistake or appear foolish in front of our money-savvy friends. However, if you postpone setting up an investment account, you're losing out on an asset you may not have considered: time.
Let's say you put $200 a month into a retirement portfolio that will earn an annualized total return of 8%. If you begin when you're 20 years old, this account will be worth $1.25 million by the time you're 67 years old. If you wait until you're 30, you'll only have $547,000 to help finance your retirement.
Getting started is easy, especially if a 401(k) is part of your benefits. You can begin with smaller deposits and increase them later. Or find an online investment option with a smaller minimum opening deposit.
Source: cnbc.com
MORTGAGE IQ
Fannie Mae's 2025 Predictions
If you're considering buying or refinancing a home, chances are you've visited your favorite news sources for the latest mortgage interest rate predictions. However, different sources have their own reasons for telling you why they think mortgage rates will rise, fall, or stay the same.
This is why you may want to check out Fannie Mae's ESR Group data, too.
While Fannie Mae doesn't loan money to home buyers, it's directly involved in buying and selling mortgages from lenders. Fannie Mae's predictions—called Market Expectations—are created by her Economic and Strategic Research (ESR) Group.
The ESR Group's predictions are followed by many of the nation's bigger banking and investment groups.
So...what's the ESR Group predicting for 2025? Pretty much what we saw in 2024. Rates are predicted to remain above 6%. While new construction will continue to offer opportunities to buyers, homeowners with low-interest loans are expected to retain their reluctance to sell. However, the ESR Group projects a rebound in 2026, with existing home sales forecast to grow by 17%.
No matter what predictions are in your daily news sources, keep in mind that they're almost always national averages, and that our area's outlook may not be similar.
Source: fanniemae.com
FINANCIAL NEWS
Tax Bracket Changes May Increase Your Take-Home
Last October, the IRS announced new tax brackets for 2025 that raised income thresholds by around 2.8%. While this doesn't look like a major change, it may translate into a bigger paycheck for you.
For 2025, the standard deduction increases to $30,000 for married couples filing jointly, up from $29,200 in 2024. The tax break is also larger for single filers, who can claim $15,000 in 2025, which is an increase from $14,600.
The federal income tax brackets show how much you owe on each part of your taxable income. You can calculate this by subtracting the greater of the standard or itemized deductions from your adjusted gross income.
Whether your 2025 take-home pay is higher or lower than expected, it's important to monitor your state (if applicable) and federal income tax withholdings throughout the year, especially during major income or life changes.
Source: nbcnews.com
DID YOU KNOW?
Medical Debts Leaving Credit Scores
Chances are, you've seen recent news items about the removal of medical debt from credit reports. Here's some background.
The White House recently finalized a rule that states that consumers' credit reports will no longer include medical debt. The change means that some $49 billion in medical bills will be struck from the credit reports of about 15 million Americans. In addition, lenders will not use medical information in their lending decisions.
"People who get sick shouldn't have their financial future upended," stated Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra.
The CFPB expects the rule will lead to the approval of some 22,000 additional mortgages every year, and that anyone with medical debt dragging down their credit scores could see their numbers improve by an average of 20 points.
It's also a follow-up to the removal of medical debts under $500 from credit scores. The three major U.S. credit bureaus (Equifax, Experian, TransUnion) announced in 2023 that these would no longer appear on credit reports.
Source: nbcnews.com
PERSONAL FINANCES
Earned Wage Access Basics
If you or a family member noticed the phrase "earned wage access" while checking out employment ads, you may be wondering what it is. Here's a definition.
Employers offer staff earned wage access—an advance payment of wages already earned—to help them with unexpected expenses. It's a benefit that helps workers avoid high-interest loans. It can even improve staff attendance, as earned wage access can finance auto repairs, dental emergencies and solutions to similar situations.
Earned wage access products are offered by a variety of employers, including Target, Hilton, Amazon and McDonalds. During 2022, more than 10 million workers cashed in with earned wage products totaling $32 billion.
These come in two forms: employer-integrated and direct-to-consumer.
- Employer-integrated wage access is set up when a company contracts with a fintech or payroll provider. These may be offered to staff free of charge, although some incur fees.
- Direct-to-consumer wage access may be set up as a monthly subscription. Other providers charge fees on a per-transaction basis.
While you may never need to tap into earned wage access, it could be something to keep in mind, especially if life hands you more unexpected expenses than usual.
Source: empower.com
FOOD
Winter Vegetable Soup
This recipe is an opportunity to combine your favorite winter vegetables into a dish that can be served as a starter or main course. For a thicker broth for your Winter Vegetable Soup, cook the potatoes until they begin to crumble, or add a bit of cornstarch.
REAL ESTATE TRENDS
Create a Welcoming Bath Spa for Everyone
While many homeowners enjoy redecorating, they tend to overlook the humble bathroom. This year, decorators are encouraging their clients to transform a bigger bathroom into a luxurious wet room.
A wet room is a fully waterproofed bathroom where users can relax and rejuvenate, as the tile, hardware, and even the wallcoverings can handle heavy splashes. This means you aren't limited to the classic shower. You can replace it with a multi-spray, rain or steam shower.
If you hate shower doors that sag or steam up, you can lose them and go for an open shower. You may also be able to add a sauna for a total self-care experience.
Last but not least: a wet room's design can offer easier, safer access for aging family members. Check out these examples of wet rooms designed for those with limited mobility.
Source: housebeautiful.com
