Tips and resources that everyone can use

First-time Home Buyers Rely More on Family for Mortgage Help

The way that people are financing their first home purchase is changing. More than 26% of mortgage borrowers who used FHA-insured loans received help from a relative to make the down payment, according to 2018 FHA data reported by the Wall Street Journal. That number is up from 22% in 2011. Rising home prices and interest rates made it difficult for buyers to save enough for down payments — not to mention generally higher debt loads from college loans.[1] Further adding to borrower stress is the fact that the gap between owning and renting continues to widen, according to Freddie Mac.[2]

Q&A

How can I include funds that consider ESG in my portfolio?

The companies you choose to invest in can matter to you just as much as the financial results. Many 401(k) plans offer funds that incorporate environmental, social and governance (ESG) criteria as well as financial fundamentals in their investment process. Studies show that a growing number of investment managers consider ESG factors when selecting companies for investment. To learn how to incorporate more ESG exposure into your portfolio, talk to your plan administrator or HR department.

Quarterly Reminder

With changes in the new tax law, you may have decided to lower your federal tax withholding so that you’re taking home more pay. It may be very tempting to use a fatter wallet to buy more things. But if you are falling short of your retirement goals, consider increasing your 401(k) contribution instead.

Tools & Techniques

Investment concepts you should understand

Fraud is a rapidly growing risk for all Americans, not just the elderly. The AARP Fraud Watch Network has useful tips to avoid credit card scams, get scam alerts delivered to your phone and offers a scam-tracking map to see (and report) what’s been perpetrated in your local area — and much, much more: https://www.aarp.org/money/scams-fraud/.

Corner on the Market

Basic financial terms to know Inflation

Inflation measures the rate at which the average price level of a basket of selected goods and services in the economy rises over a period of time. When prices rise, money loses value. That’s why it’s important that your investments keep pace with inflation — so that you don’t lose purchasing power.

[1] Source: “More First-Time Home Buyers Are Turning to the Bank of Mom and Dad,” Wall Street Journal, Jan. 4, 2019. https://www.wsj.com/articles/more-first-time-home-buyers-are-turning-to-the-bank-of-mom-and-dad11546597800?cx_testId=16&cx_testVariant=cx&cx_artPos=3&cx_tag=collabctx&cx_navSource=newsReel#cxrecs_s

[2] Freddie Mac Multifamily Research Center, 2019 Outlook, Jan. 2019. http://www.freddiemac.com/research/pdf/2019-Outlook.pdf

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

ONLY RP-517-0219 Tracking #1-826115 (Exp. 02/21) 2Q 2019 Plan Participant Newsletter

Kmotion, Inc., 412 Beavercreek Road, Suite 611, Oregon City, OR 97045; www.kmotion.com

© 2019 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this newsletter are those of Kmotion. The articles and opinions are for general information only and are not intended to provide specific advice or recommendations for any individual. Nothing in this publication shall be construed as providing investment counseling or directing employees to participate in any investment program in any way. Please consult your financial advisor or other appropriate professional for further assistance with regard to your individual situation.