Blog

New rules aim to make it easier for Americans to qualify for Supplemental Security Income (SSI) benefits and increase payments. Starting September 30th, changes will expand the definition of who qualifies for SSI and make it less likely that renting or receiving food assistance will affect eligibility or payments. These updates address outdated practices and reduce burdens for beneficiaries, improving access to benefits for millions of Americans who rely on them.

Adding your child as an authorized user on your credit cards can teach them financial responsibility. They can make purchases while you oversee their spending, and they can start building their credit history. Set clear limits and rules to prevent misuse, and be prepared to strike a balance between trust and monitoring.

Germany's top trading partner, once China, may soon be replaced by the United States. US-German trade has surged, while German-Chinese trade has dipped due to China's weakening economy, the US's growing demand, and Germany's de-risking strategy from China. This shift reflects increased tensions between the EU and China and a gradual move towards decoupling from the Asian giant.

The UK has ended its short recession with economic growth of 0.6% in the first quarter of 2023. The services sector, including transport, led the recovery. While Prime Minister Sunak hailed this as a positive sign, experts caution that economic challenges remain, such as high inflation and low productivity. The Bank of England is closely monitoring inflation and has kept interest rates unchanged.

Traders and economists are reconsidering when the Bank of England (BOE) will lower interest rates. Initially, August was expected, but a strong economic growth report has led many to predict a June cut. The GDP exceeded expectations, growing by 0.6% in the first quarter of 2024, ending a technical recession. This indicates the economy may be more resilient to high interest rates and persistent inflation, potentially delaying BOE rate cuts until later in the year.

A new regulation aimed at lowering credit card late fees from $32 to $8 faces a legal challenge. The US Chamber of Commerce has sued to prevent its implementation, which could save Americans billions in fees. The industry argues the rule is unfair and would harm responsible borrowers. A federal judge in Texas is expected to decide soon whether to grant an injunction to delay the regulation.

European businesses in China are facing challenges due to slower growth and overcapacity issues. Their profit margins have decreased since 2016, and payment delays have become common. While Beijing has made efforts to attract foreign investment through measures like visa-free policies, concerns remain over regulatory barriers and intensifying competition. A record number of companies are skeptical about their growth potential and plan to cut costs. The lack of predictability in the regulatory environment continues to be a major issue.

Closing a bank account usually won't hurt your credit score. But watch out for negative balances! Unpaid debt sent to collections can damage your credit. Similarly, a bad mark on your ChexSystems report (used by banks) can block new accounts. To close safely, open a new account first, update automatic payments to avoid missed bills, and monitor your credit report for errors. Closing smartly protects your credit score.

Facing an underwater mortgage (owing more than your home's worth) can be scary, but a short sale offers an alternative to foreclosure. In a short sale, you sell for less than owed and the lender forgives the difference. There are drawbacks like potential tax implications and credit score hit, but it allows you to avoid a foreclosure and potentially recover your ability to buy a home sooner. Explore all options with a HUD counselor before proceeding.

Retiring soon? A Roth IRA conversion can lower your future tax bill. Convert your pretax IRA funds to a Roth IRA now, pay taxes upfront, and enjoy tax-free growth later. Ideal timing is during low-income years or before potential tax law changes in 2025. Be aware though, conversions can raise your Medicare Part B and D premiums due to higher MAGI. Consider smaller conversions to avoid jumping to a higher premium bracket. Talk to a financial advisor to see if a Roth IRA conversion is right for you.

Only about a third of people have wills, despite them simplifying inheritance. Even though 80% intend to get one, 44% of those without one delay because of procrastination. A will ensures your assets and wishes go to your desired parties, avoiding the potential difficulties of state intestacy laws. While a will can involve paperwork, it's crucial for everyone, not just the wealthy, to ensure loved ones are protected in the event of an unexpected situation.

Over 34,000 people have expressed their opinions on President Biden's student loan forgiveness plan, which aims to alleviate the debt of millions of Americans before the November election. Feedback ranges from support for its potential economic benefits and as a step toward addressing inequities to opposition due to the cost to taxpayers and concerns about fairness to those who have already paid off their loans.