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Empty nesters are migrating toward a new kind of multigenerational household.
You’ve likely heard about kids moving back home. But what about parents moving in with their kids? It’s happening more often, at younger ages. We’ll take a look at the forces behind the trend.
US stocks were largely flat Wednesday as investors digested another bout of quarterly results.
• Morgan Stanley (MS) surpassed Wall Street’s top-and-bottom line estimates with revenue of $14.52 billion and earnings per share of $1.70. Year-over-year earnings were down 19% due to declines in investment banking and trading, but the bank’s wealth and investment management businesses helped to offset those challenges.
• Netflix (NFLX) missed revenue estimates with $8.16 billion, but exceeded earnings per share expectations at $2.88. The company announced it will move forward with a rollout of its paid account sharing option, which was postponed last quarter. With more than 100 million households or 43% of its user base sharing accounts, Netflix said password sharing is affecting its ability to invest in new content.
• The average interest rate for a 30-year fixed-rate mortgage jumped to 6.43% in the week ending April 14th, marking the first increase in six weeks. As a result of this move higher, mortgage applications dropped 10% compared to the previous week, and year-over-year buyer demand is down 36%.
What to be on the lookout for today
• Investors will learn how many existing homes are selling in the US. In February, the number of homes sold jumped 14.5%. This snapped a 12-month decrease and was the largest monthly jump since July 2020.
• Wall Street can expect updates from both American Express (AXP) and AT&T (T). Amex may expand on its recently announced sustainability initiatives.
How to budget for home repairs: Know the 10% rule.
Even the experts say that trying to predict future home repairs is almost impossible. However, there are a few shortcuts that can help homeowners calculate how much to set aside.
The 10% rule suggests tacking an extra 10% onto your monthly housing expenses. Let’s say your monthly mortgage is $1,400, prorated property taxes come to $500, and your homeowners insurance is about $100. You’ll want to set aside another $200 for maintenance and repairs. (1400 + 500 + 100 = 2000 x 10% = 200).
The idea is that you probably won’t touch the fund most months. That $200 will keep accumulating until you need it.
Like the square-foot rule we talked about yesterday, this calculation is best for newer, well-maintained homes. If you anticipate having to replace your roof or electrical panel, you may be better off putting more aside.
And should your repair fund come up short, a low-fixed-rate personal loan is a smart option. A personal loan calculator can show you how much you qualify for.
Recommended reading: How to Pay for Emergency Home Repairs
Today’s top stories
Americans consumed $30 billion worth of marijuana last year — more than chocolate and craft beer sales combined. The recreational marijuana industry has undergone major changes over the past two decades. We’ll take a look at the current landscape, as well as some of the ongoing challenges the industry faces. Read more >> A proposed rule change could make it easier for you to work for your employer’s competition. The FTC’s fight to ban noncompete clauses is just getting started. Here’s what you should know. Read more >> What can investors glean from the market’s mixed signals? Volatility is lower, stocks are higher, yet everyone seems to be expecting the opposite. Read more >>Not-so-breaking news
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Lululmemon (LULU) is looking to sell Mirror, an at-home fitness startup it acquired for $500 million during the pandemic. The athleisure company approached Hydrow about a possible sale, but it’s unclear if the rowing company is interested.
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Google (GOOGL) plans to launch its first foldable smartphone for $1,700. This phone will compete with Samsung’s (SSNLF) line of foldable phones and boasts “the most durable hinge on a foldable phone.”
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Southwest’s (LUV) challenges continued as 5,400 flights were delayed and 100 were canceled on Tuesday due to a “technical glitch”. The airline previously saw more than 16,700 flights canceled over the 2022 holidays. Flights have since resumed.
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Tesla (TSLA) cut prices on its Model 3 and Y for the 6th time this year. So far in 2022, the EV maker has cut the price of these vehicles by 11% and 20%, respectively.
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Netflix (NFLX) finally sunset its 25-year-old DVD delivery service. This move was made as the streaming giant seeks to cut costs amid rising competition.
Financial planner tip of the day
“When shopping around for a checking account, consider your financial habits. If you shop frequently at certain retailers, it may be worth taking advantage of an account that offers discounts. Or if you use the ATM frequently, looking for a checking account that reimburses you for third-party ATM fees may be a smart choice.”
Brian Walsh, CFP® at SoFi