Dear Plenty Community,

Welcome back to the Love and other assets: 2 x 1 x 1 newsletter.

This week brought an expected change: an eagerly anticipated 0.5% drop in the federal reserve rate. In this week’s quick hits, we’ll talk about how this is expected to help or hurt consumers over the coming weeks and months.

Goldman Sachs recently announced a Harris-Walz presidency would likely lead to greater economic growth. As we enter the final months before election day, we look back to see how the market / S&P 500 has performed in past election years to see if there are any patterns.

For our deep dive this week, we cover the 5 ways prenups can strengthen your relationship. In that post, I write about:

• How common prenups are becoming?

• 3 reasons to consider a prenup (and why we got one)

• 3 ways prenups can strengthen your relationship

We brought double the advice to Love and other assets. We welcomed Nathan Astle and Aja Evans to our most recent episodes. Nathan and I dove into the world of debt within a relationship. Aja and I chatted through ready-to-use tips for building your future together, while preserving the things that are important to each of you.

As always, if you have ideas or questions you’d like us to answer, write in to [email protected] - I’d love to hear from you.

~Emily

Start your 1 month free trial with Plenty today

How the 0.50% rate drop will impact your wallet

The Federal Reserve recently dropped rates by 0.50%. If you’re a borrower / soon-to-be borrower for a car loan, mortgage, etc… that’s good news. Rates are now 4.75% - 5% and expected to drop as low as 3.5% next year, meaning interest on loans will keep decreasing. Refinancing next year could bring some savings. 

For savers - when savings rates start to go down, investing becomes more important. Before the announcement, Credit Karma dropped rates by 1%... a clear sign they’re focused on growing company profitability (their customers now earn even less). If you’re looking for profit transparency, Plenty’s cash+ accounts are pegged to the federal funds rate and we take a 0.2% annual fee whether the rates go up or down. 

Over the months to come, a rate drop usually encourages businesses to grow. When businesses grow, they hire more people and that moves the employment rate up - a key measure that likely factored into this rate drop. With more expected drops on the horizon, time will tell whether that boosts economic growth.

What election years usually mean for the stock market

Since 1952, the S&P 500 has seen an average 7% gain during U.S. presidential election years. While 7% isn't bad, it's lower than the typical 10% annual return for the S&P 500. And while the polls show signs tighter than ever, there’s been a strong correlation of stock market performance in predicting election results. 

Since 1984, whenever the S&P 500 had positive returns from August through October in a presidential election year, the incumbent party won. On the other hand, if the market was down during that period, the incumbent party lost. So far, the S&P500 is up since August. That all said, past performance doesn’t predict future results and averages are across the past 18 presidential elections since 1952.

3 reasons to consider a prenup (and why we got one)

Prenups used to be a thing for the wealthy and famous. But for over 50% of today’s adults, it’s now something they’re open to. In my latest blog post, I break down why prenups are becoming more common, how they can actually strengthen your relationship, and 3 key reasons to consider a prenup (and why we got one ourselves). 

While prenups might feel like expensive lawyers battling it up, I’ve included the #1 tip I have for couples getting a prenup (and it’s from first hand experience). Keep reading here..

The 5 x 2 gratitude challenge

For 5 days, I’ll thank my partner for 2 things they do each day….

What if a small “I appreciate you” is powerful enough to predict whether or not you’ll stay together? Researchers found that couples that stayed together showed at least five times as many positive interactions as negative ones. A study by the University of Virginia’s National Marriage Project looked into the power of generosity - basically, sweet little gestures like making morning coffee, and showing affection or appreciation. The higher the generosity score, the more likely they were to say they’re "very happy" in their marriages. 

On this week’s episode

In this episode of Love & Other Assets, Debt expert Nathan Astle, talks about turning those tough debt talks into something that actually brings you and your partner closer, with practical tips on how to avoid the blame game that’s common with debt.

Financial therapist Aja Evans also joined us to give the tips-you’ll-actually-want-to-try when navigating emotions around money talks. She talks about the way to stay aligned financially while staying true to your own goals. 

Plenty is a wealth platform helping modern couples invest and plan for their future together. We bring the investment strategies and products of the wealthy to the everyday household. Plenty was started by a husband and wife team dedicated to growing together. For more information, visit withplenty.com. If you ever have any feedback or questions, please do reach out to us at [email protected].

At Plenty, no financial topic is off-limits for modern couples. We offer straight talk and judgment-free guidance to help modern couples navigate the tricky and important intersection of money and relationships. Join thousands of couples who’ve signed up for our free newsletter today.

For those that are new: 2 x 1 x 1 means

• 2 news moments in business/finance to keep you in the loop

• 1 deep dive to help you and your partner with money

• 1 tidbit for your relationship

Plenty was founded to democratize access to financial products and tools that accelerate wealth building.  Plenty Financial and affiliated entities. (“Plenty Financial”) provide a web, mobile, personal financial management, and educational platform to consumers; some of these tools are freely accessible to all consumers, others require a fee-based subscription. Advisory services are provided in the form of software-first financial planning and investment advisory services for fee-based Subscribers. Plenty Financial RIA, LLC is an SEC-registered investment Advisor. Registration as an investment adviser does not imply a certain level of skill or training. All investments made are legally owned by you. Investment accounts are not bank guaranteed or FDIC insured. Investments are held in accounts at BNY Mellon - Pershing, one of the world’s largest securities servicing companies and are SIPC insured. Please see Plenty’s full general disclosures here.