Q. I’m on a fixed income and expenses are tight, but my home is valuable and I’m wondering if there is a way to use it to help with my living expenses?
A. You have several options to consider in using the equity in your home for expenses. There are advantages and disadvantages to each so you should tread lightly and educate yourself first before making a decision.
The Fed hiked interest rates by 25 basis points last week, as expected, but also projected three rate hikes in 2017, an increase from two previously. Investors were caught by surprise, but should not have been.
We advise clients to avoid blindly allocating to this asset class as rates are likely to move higher and risk spreads have created a market skewed toward overvaluation.
We remain positioned to take advantage of the coming moves towards faster growth in an environment of rising interest rates. While we do not expect this growth to materialize quickly, firms tend to make investments well in advance, as probabilities of policy improvements rise.
The 2016 tax year was relatively uneventful given the run-up to the election, with very little changed from last year and no last-minute changes expected from Congress. Any tax reforms proposed by the Trump administration cannot be adopted until 2017.