TODAY | January 02, 2014
>> your money to watch it grow? here is debra borchar market analyst for the streets. good see you.
>> good to see you.
>> you say interest rates will pick up a little this year. what does that mean for say buying a home?
>> absolutely. when rates go up. it's going to affect everything. it's going to affect car loans , home loans. it will affect maybe if you are in a fixed income fund in your 401k.
>> does that mean i want to buy my home earlier in the year?
>> absolutely. if you think you will get a better rate in the first six months versus the last six months of the year.
>> you are saying with a car?
>> it will affect everything. it will be a trickle down on those prices of the bonds with the yields going up.
>> so you are talking about buying a car this time of the year, what about the difference of buying a car as opposed to leasing and of the time you should do that?
>> i'm a firm believer of owning your car. i think that people should own it and that way your money is going into something with leasing. it's just, you know, you are borrowing the car for a limited amount of time. so again if you are going to buy a car t. car dealerships have been subsidizeing these loans for years, because they want us to buy their products. i think if you are looking at buying a car, do it at the beginning of the first six months of the year, of the summer, as opposed to the end of the year. you will get a better rate.
>> if i'm thinking of buying a house, it's not urgent, i can do it a couple years, can i sit or wait?
>> you definitely want to look at that more in 2014 . now the mortgage rates are lower than the ten-year average. we are right about 4.5% on a 30-year fixed. the ten-year average 5.3%. so we're still in a sweet spot . but those are going to start going up.
>> i'm sorry. the stockmarket, you know, you had a good year last year.
>> wow. we had a phenomenal year in 2013 for stocks. i'm sure all of you saw your 401ks to go up. it was great. i think we will have a good january and see good returns for the year. certainly not the size of numbers we saw if 2014 .
>> now you said, the as good idea to buy gold ?
>> i am always confused about. that i see those commercials.
>> right. here's the thing, gold had a horrible year. oh my go, everyone in gold, they lost their money, but here's the thing, everybody jumping out of gold with the price down, you will be able to get it at a very good price. i think everyone should have about 10% of their savings inled go. it's a safe place to be and gold even though it does come down, it always goes back up.
>> where do you put your money? what kind of banks?
>> when we are talking about banks, you talk about a mortgage, a savings account , a big bank is going to give you a good deal if you get all your accounts in one place. if you are in a smaller town and need a small business loan or mortgage, maybe a local bank because they will be very vested in the community. if you are very cost conscious about your checking account or something, look at a credit union . if you are okay with their hours, their hours sometimes aren't that friendly. if you are okay with that, they have great bargains on accounts.
>> quickly, before we go, debra, you mentioned 401ks. we have a graph. allocation. run through that for us.
>> most of us have money in our 401ks. we kind of ignore it. make sure you have a lot in large cap , wal-mart, coca-cola. have a bit in international. we will see a recovery in europe and asia. now that fixed income , those are the bonds we are talking about. keep that low about 10%. the rest of that cash is good, small caps . those are the smaller companies. they're still very strong.
>> good for you, brooke, all gold, all the time.