đź’°Investing with the stars

Jun 26, 2024

We've got an intriguing mix of stories for you this week. First, we'll dive into the unconventional world of investing guided by astrology—yes, you read that right. Then, we’ll tackle the ever-rising costs of college tuition and what it means for prospective students. On a more hopeful note, we'll discuss the Biden administration's new steps toward making housing more affordable amidst soaring living costs. Finally, we'll debunk the myth that all financial advisors have your best interests at heart, helping you navigate the world of financial advice with a bit more savvy. Let's get started!

- Milan

IN THE KNOW

Written In The Stars 

Some investors turn to brokers for advice, but young people are increasingly looking to the stars for guidance. TikTokers are now using astrology, tarot, and intuition to guide day trading, scanning the market and using a single tarot card pull to confirm their stock choices. 

Gen Z investors are increasingly mixing traditional finance with unconventional methods like astrology and lunar cycles. However, experts warn against making investment decisions based on perceptions rather than evidence. While some people’s success is impressive, it's important to approach such strategies with caution, recognizing that what works for one might not be suitable for everyone. Start investing the right way with any of our recommended brokers here.

Tuition Is Rising 

Pursuing a bachelor's degree can be a rewarding investment, but it often comes with a hefty price tag. The cost of tuition and mandatory fees at 4-year U.S. colleges and universities has skyrocketed over the past 60 years, rising from an inflation-adjusted average of $5,369 per year in 1963 to $17,709 in 2023, according to the National Center for Education Statistics.

Beyond tuition, students face additional expenses like books, supplies, food, and housing. Over four years, these costs can add up to staggering amounts. For instance, Columbia University estimates the total cost for tuition, housing, and fees for the 2023-24 school year at $89,587, potentially reaching $500,000 or more over a full college career. Off-campus living and the high cost of living in expensive cities like New York can drive these figures even higher. If you’re looking to finance a degree anytime soon, here’s something that could help. Also remember to add college as a savings goal and stick to it by budgeting your expenses.

More Affordable Housing 

The Biden administration is stepping up its game to tackle the housing affordability crisis, which has been made worse by soaring grocery prices and high interest rates. Treasury Secretary Janet Yellen recently announced a $100 million fund to support affordable housing over the next three years, along with other measures to boost housing finance. In a speech in Minneapolis, Yellen highlighted the urgent need to address the significant housing supply shortfall that has driven up home prices and rents.

Despite these new initiatives, the housing market is still tight, with home prices having jumped 46% from March 2020 to March 2024. Low-income Americans are feeling the pinch the most, facing a shortage of over 7 million affordable homes. Biden's administration is pushing for a range of solutions, including tax credits for first-time homebuyers and plans to build more than 2 million homes. However, experts argue that more congressional action and federal funding are needed to truly solve the housing affordability crisis.

MONEY MYTH OF THE DAY

“All Financial Advisors Have Your Best Interests At Heart”

While many advisors are dedicated professionals who prioritize their clients' financial well-being, it's important to remember that not all advisors operate under the same standards. Some may work on commission, meaning they earn money based on the products they sell you, which can create potential conflicts of interest. They might be more inclined to recommend investments that benefit their bottom line rather than your financial goals.

To navigate this, look for a fiduciary financial advisor, as they are legally obligated to act in your best interests. Always do your research, ask about how your advisor is compensated, and seek transparency in their recommendations. By understanding the distinctions and asking the right questions, you can find an advisor who genuinely prioritizes your financial health.

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