Jenni Stolarski: Top Producer 2017
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The Fed Raises Rates: How That Impacts You
This week, the Federal Reserve announced that it was raising interest rates 0.25%, to a range of 1.5% to 1.75%. While Fed-watching has become a spectator sport, the headline isn’t exactly a surprise. Market watchers have been anticipating the hike for months — and expect the Fed to raise rates several more times this year to keep inflation from rising too far too fast.
NerdWallet shares how this may impact you below:
| So how does this affect you? A small change — like this week’s — doesn’t move the needle so much, but further rate increases in 2018 will likely make money more expensive. Here’s what that means for four different financial scenarios:If you owe money on credit cards: Any change will take a month or two to be reflected in your annual percentage rate (APR), but when it hits it will become costlier to carry balances and monthly minimum payments may increase. If possible, reducing your credit card debt is always a good move. Here’s how to get out of credit card debt. If you have money in a savings account or CD: Banks don’t always move rates in lockstep with the Fed. Expect savings yields to change gradually, but look for steady increases at competitive online banks, which already offer yields more than 20 times the national average. This is a great time to comparison shop for a new savings account or CD. If you want to buy a house: The “historically low mortgage rates” you’ve heard of for the past few years will likely still be available for quite some time. If you’re ready to buy a home, don’t let moderately higher mortgage rates dissuade you. Keep in mind rates still fall far short of the historical average of 8%. Compare mortgage lenders to get the best rate, and also focus on fees, time to close and customer service. If you’re an investor: The stock market likely has already priced in this week’s rate move and maybe some future increases. So don’t try to outguess the stock market when the market zags. Instead, stick to your long-term plan. For many people, low-cost index funds make sense. Remember, rising rates are correlated with a strong economy. But to get you through any short-term anxiety, here’s more about what you can do across different accounts, including how to make a rate hike work for you. |
On Dreams and Mysteries
I’m a list-writer. Seriously, I have lists for everything…goals, travel, budget, business, life. Sometimes they’re in spreadsheet form, but mostly I rely on pen and paper. I try to keep them up in front of me, but they can fall to bottom of a pile. This week, while prepping for our upcoming trip to Alaska, I stumbled upon a list from 2010 of “50 things I want in life”. It was an exercise that my friend Pickert had me do. The funny thing is that, even though I haven’t seen this list in quite a while, many of the things have been accomplished. Which brings me to Alaska.
Number 31 on the list is “see the Aurora Borealis”. For a long time, I’ve wanted to witness this mystery. There’s a lot known about the Northern Lights, but it still remains unresolved as to the exact when & why of it. Something to do with electromagnetism, negative ions, solar flares, and fairies (just kidding about the fairies). I love that as much has been discovered about the Aurora, we still can’t accurately predict when they will be visible or what colors will show up. Last year, Val and I booked a trip to Alaska with Planetary Society guides to learn a bit more, and hopefully, see some lights.
Even, if by chance, I don’t see the Northern Lights and I don’t get to check this one off the list, I will be forever grateful for the opportunity to dream.
Jenni’s First Home: South Third in Austin, Tx
In 1996, Val and I were living in East Austin, in a leased garage apartment. It had no central air or heat, no shower, and more than a couple holes in the floor that looked onto the dirt base of the “garage” below. But rents were continuing to rise. And we knew we needed to buy a home to avoid being priced out of town.
We set our budget at $55,000. Our amazing Realtor, Marylin, found us a home in “up and coming” South Austin. It was a single family, but had rentable guest quarters. The whole package was $98,000. Above our budget, but the rent from the back house offset our monthly payment. By the time we bought in 1997, interest rates were hovering around 9% for FHA loans, so the home cost us $1000/month. For context, this loan today would be $445 monthly, before taxes/insurance.
We had bring $5600 to close. At the time, we were living paycheck to paycheck, so we borrowed these funds from Val’s mom (may you be forever blessed, Marlene Haskell, for your enduring support and faith). If you can’t tell, it was a stressful time in many ways. But it was also a time of much hope. Val and I were planning our wedding. She was training for her first marathon. We had both just launched new businesses. And our cute little 2/1 on South Third, all 990 square feet of it, was a springboard for the future we were planning.
Looking back at the home, the color was dark (we didn’t have money for paint), and the roof needed replacing. For us, though, the inside was bright and full of love. There was even an extra room, so we each had an office. There was this amazing Live Oak tree in the back yard that was so wide, it stretched across the entirety of our yard, as well as most of the neighbors’ on either side. When we first moved in, the peacocks from our back-fence neighbors, Green Pastures Restaurant, would roam up and down our fence. Eventually we got a dog who scared them out of their daily outings.
We loved our first home. We only stayed there a couple years, but still feel so fondly about it that we drove by last year on a trip to Austin.
Whatever your goals, whatever your budget, I will say that owning a home is a wonderful experience. Additionally, it can be a great asset for future financial goals. I love that I now get to the return the kindness that our Realtor bestowed on us, by helping first-time buyers achieve their dreams
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Briggs Freeman Sotheby’s Awards Ceremony
Celebrating 2017. Proud of our team, thankful for our clients, supporters and colleagues at Briggs and elsewhere. Smiling, laughing, dancing and celebrating into our best year yet.
Help us help you! Let’s make it your best year too!
