This week we’re sharing tips on rebalancing retirement investments, what to do with an old health savings account, and how to determine if you’re ready to become a homeowner. Here’s what you need to know now:

  • With the stock market off to a rocky start in 2016, you’re likely one of the millions of Americans concerned about the current state of your 401(k). Yahoo! Finance Reporter Mandi Woodruff suggests meeting with your financial advisor at least once a year to revisit your investment strategy and get help navigating these rough financial waters. She also stresses the importance of continuing to contribute to your account even when the market is shaky. More often than not, it pays to stay in the market, especially during times of short-term volatility.
  • Reserving an old health savings account (HSA) for out-of-pocket medical expenses is a financially sound tax strategy, but Reporter Ashley Ebeling of Forbes warns against using the account for student loans or other debt, as it will incur major tax penalties. However, if you’re more concerned with retirement than any current medical expenses, Ebeling suggests growing the account with annual contributions and then investing the money in mutual funds. Or, if you decide to keep your HSA open until retirement, the savings can likely help to cover expenses like Medicare premiums and long-term care insurance premiums.*
  • Low mortgage rates and skyrocketing rent prices make becoming a first-time homeowner seem like an attractive option. Kathryn Vasel from CNN Money explains that while buying can be financially beneficial in the majority of housing markets, there are a few factors to consider. To determine if you are financially capable of buying a home, start by calculating your debt-to-income ratio to determine if you will qualify for a mortgage. Vasel then suggests evaluating your down payment options, comparing interest rate payments over the life of the mortgage to current rent payments, and considering the responsibilities that come with homeownership.*

*All investment& tax information provided in this blog post is intended as a convenient source of information. This information is general in nature, is not complete, and may not apply to your specific situation. Please consult with your own investment or tax advisor regarding your specific investment needs.

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