This Week’s Takeaways:
- 84% of wealthy retirement investors prefer to invest in something other than a target-date-fund so they can create tax-efficient withdrawal strategies from different buckets and asset classes versus a one-size fits all approach.
- Mortgage rates dipped below 6% and are currently at reasonable levels compared to historical averages. To increase the odds of a better rate, have a great credit score, maintain a low debt-to-income ratio and shop around.
- $200 billion in mortgage bond purchases likely won’t help mortgage rates much.
- December’s CPI report was good news, putting the Fed on pace to keep cutting rates to support the labor market.
- 2025 was another reminder that short-term market and economic forecasts aren’t helpful, stock markets can keep getting more expensive and valuations aren’t a short-term signal, the US dollar isn’t invincible, international diversification still works, and cryptocurrency is still a speculative asset.
- Latest book recommendation
- Boston Corner with Things to Do This Weekend in Boston
Why Most Wealthy Investors Avoid These Retirement Funds and What It Means for You by Investopedia
More than 2/3 of 401(k) account holders have money in target-date-funds, but 84% of investors with higher investable assets prefer other options primarily so that they can customize a tax-efficient withdrawal strategy from different types of accounts and choose with asset class they want to sell to fund their next withdrawal.
Current mortgage rates report for Jan. 14, 2026: Finally, a dip below 6% by Fortune
The average 30-year, fixed rate conforming mortgage is down about 15 bps from a week ago – hitting 5.99%. Other mortgage rates are down about the same. They were over 7% a year ago and absent another widespread disaster we won’t see them in the 2% to 3% range. Rates at this level aren’t historically high. To get the best rate you can, ensure your credit is in excellent condition, maintain a low debt-to-income ratio, and shop around.
The mortgage bond purchases would theoretically help lower mortgage rates by reducing the spread – difference between the 10-year Treasury yield and the average 30-year fixed mortgage rate – that is currently above its historical average by .29%. It’s not clear how much these will help as there is $9.26 trilling in agency mortgage-backed securities outstanding and in the past such purchases made for the same reasons were much bigger.
December CPI: No Coal in the Stocking by Wells Fargo
Consumer Price Inflation came in a bit slower than expected to finish 2025. On a year-over-year basis we’re at 2.6%. Wells Fargo believes we’re making continuing progress toward 2% in 2026 and the Fed will continue to cut rates to support the jobs market.
See also: December Jobs Report: Deteriorating Trend Continues
8 Lessons for Investors From Market Turbulence in 2025 by Morningstar
2025 was another reminder that short-term market and economic forecasts aren’t helpful, stock markets can keep getting more expensive and valuations aren’t a short-term signal, inflation isn’t dead yet, the US dollar isn’t invincible, international diversification still works, gold is getting riskier, cryptocurrency is still a speculative asset, and there’s no free lunch in private credit and other semiliquid strategies.
Book Recommendation
Devil in a Blue Dress (30th Anniversary Edition): An Easy Rawlins Novel (Easy Rawlins Mystery) by Walter Mosley
The first novel by “master of mystery” (The New York Times) Walter Mosley, featuring Easy Rawlins, the most iconic African American detective in all of fiction. Named one of the “best 100 mystery novels of all time” by the Mystery Writers of America, this special thirtieth anniversary edition features an all new introduction from the author.
