News from the Control Tower: Our weekly curated list of news stories affecting you and your finances.
There’s a lot of buzz around AI, but there are so many legal risks that many just gloss over. Remember when Napster was really fun and exciting until Metallica showed up? Lina Khan, the chair of the Federal Trade Commission, lays out some of her thinking on regulation of AI in this New York Times Op-Ed.
Speaking of legal risks, Wells Fargo seems to love them. They recently agreed to pay $1 billion for misleading shareholders that they’ve cleaned up their act.
There’s been a lot of media attention around the pandemic relief funds pumping too much money into the economy as a driver of inflation. Often overlooked is the impact of the extra funds from those refinancing their homes when the Fed dropped interest rates. The New York Fed recently put some numbers to it: 5 million people extracted $430 billion in home equity – that’s the same as the estimated size of the Inflation Reduction Act recently passed by Congress.
The Wall Street Journal highlights TikTokers (mostly women) who do deep dives on their budgets, and I love to see more women opening up about money. Emily and I discussed the pros and cons of this type of sharing on a recent podcast episode: “There is No Free Lunch: When it Comes to Financial Advice Who Do You Trust?” https://propelfinancialadvisors.com/connecting-the-dollars/13-there-is-no-free-lunch-when-it-comes-to-financial-advice-who-do-you-trust
Finally, psychologists say that if you’re able to visualize yourself in retirement, then it makes it easier to save for that future version of you. Why not visualize your life as one of the Golden Girls? I’m sure there are worse places to start.
A group of shareholders had claimed that the bank misled investors about its progress in cleaning up after a sham accounts scandal a decade ago.
14 million homeowners refinanced during the pandemic boom
5 million borrowers extracted a total of $430 billion in home equity
9 million didn't extract any equity but lowered housing expenses by $24 billion annually
Many Americans at all income levels struggle to rein in spending. Talking about it more can sometimes help.
Roommates, a part-time job and renting out your vacation home could be ways to save early in retirement to cover more expensive years later on.