• Nate Baim, MBA, CFP®

Got a New Job or Planning Open Enrollment?


Enjoy this week's edition of the Planner's Beta


Beta (n) - climber's jargon that designates information about a climb This digest's purpose is to share observations, ideas, and treasures found this week which you may also find insightful. Sharing does not mean it's an endorsement. I am endorsing the pursuit of knowledge and exploration.


Becky and I hiked up to Silver Star Mountain this past weekend. This photo is looking north to Mt. Adams. It was nice to get out and hike up a mountain (something we've not done in a while). The air was relatively clear at the top, but it was apparent there are still fires burning on the West Coast. We scouted out the area around the summit for a possible future overnight. Hopefully, we can grab a good sunset, some excellent stars, and an incredible sunrise when we make it out there



Chart of the Month - Issues to Consider When Starting a New Job / Planning Open Enrollment

When you start a new job, this shift can come with several changes that might impact your financial situation both positively and negatively. The same is true if you are planning open enrollment. New health plans and benefits may be available. And I find it useful for folks each year to use the open enrollment period as a way to reevaluate your job's income, benefits, and retirement plan. Use this checklist to review the potential impact of a job change or enrollment options such as:

  • Cash Flow and Income

  • Employee Benefits

  • Retirement Plans and Deferred Compensation

  • Taxes

  • Non-compete or other job restrictions

Financial planning can help you make the most of life's transitions.




This Week's Articles

Why, despite the coronavirus pandemic, house prices continue to rise (The Economist) - Globally, residential real estate prices continue to increase despite the massive contraction in economic activity due to COVID-19. At the onset of the coronavirus, many forecasters suspected housing prices would decrease due to falling employment. However, monetary policy, fiscal policy, and buyer's preferences are defying those early expectations. Central banks around the world reduced interest rates. Decreasing interest rates made mortgages more affordable for individuals and incentivized them to buy homes.


Additionally, governments worldwide increased employment welfare programs allowing individuals to stay afloat and not default on housing payments. Due to lockdowns, potential buyers seek different living conditions to meet life needs when confined to one space for such long times. This behavior further expands the demand for residential real estate. And last, the housing supply is relatively constrained. Many home builders are reluctant to build for fear of reliving the post housing boom of the 2007-08 financial crisis.


So what does this mean for you? If you are looking to purchase real estate, it is essential first to understand your goals and values. Be careful not to let the headlines dictate your decisions. Chasing increasing housing prices for fear of missing out can spell disaster for an individual's overall financial health. Knowing your values and goals will begin to help you understand where a new home fits in your life, if you can afford it, and if you are taking the appropriate steps to manage risk in your plan. Need help developing your home purchase plan? Feel free to review Pursuit Planning and Investments, Home Purchase Plan Package.

How student loan forgiveness is altering consumer behavior (The Hill - Opinion) - Economics 101 teaches us if you incentivize a behavior, you should expect more of that behavior. Our education financing system is full of incentives, and we can see this with student loans. If you hold student loans, it is essential to understand the loans you have, the programs that may be available to you, and thoroughly think through the consequences of your repayment strategy.  Need help creating a student loan repayment plan? Feel free to review Pursuit Planning and Investments, Student Loan Analysis Package.

Christine Lagarde hints at a major tweak for the ECB's inflation target (CNBC) - The European Central Bank's President, Christine Lagarde, suggested that the bank is considering reevaluating its inflation target. This year, the ECB's counterpart, the Federal Reserve, stated it would be willing to allow inflation to increase above its target rate of 2%. The European monetary union faced persistently low inflation for the past decade, which concerns policymakers and market participants. If the ECB adopts new guidance language and the policy is seen as credible, it could significantly impact the union's economies.


Quote of the Week

"At his best, things do not happen to the artist; he happens to them." - William Saroyan


 

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