Federal student loan rates are expected to rise by around 1 percentage point in the upcoming academic year. This increase is due to the rise in 10-year Treasury note yields and the Federal Reserve's efforts to curb inflation. The new rates will apply to all federal student loans issued after July 1, 2024. Existing loans will not be affected. Borrowers should expect to pay higher interest rates for new loans.
To save on taxes when converting a traditional IRA to a Roth IRA, consider doing it early in retirement when your income is lower. This reduces the upfront tax bill. However, be aware that the conversion can raise your income and potentially increase your Medicare premiums. Choose the timing carefully to avoid being pushed into a higher income bracket for Medicare.
Many retirees are finding their dream retirement out of reach due to inflation, healthcare costs, and asset concerns. Experts disagree on whether a retirement savings crisis exists. Some believe it's urgent, citing a lack of retirement savings and dwindling pensions, while others refute this notion, pointing to survey data showing retirees are generally doing okay financially. Despite this debate, experts advise people to consider delaying Social Security benefits for higher returns and saving more over time.
Despite a strong job market, college graduates may face lower salaries and reduced hiring than previous years. However, they prioritize flexible work arrangements and mental health support. Despite a slight uptick in unemployment, the job market remains robust. However, graduates may need to adjust their salary expectations and consider a wider range of locations to maximize opportunities.
Initial unemployment claims in the US have risen to their highest level in nearly 9 months, suggesting a potential shift in the job market. Weekly jobless claims increased by 22,000 to 231,000, along with a rise in continuing claims. This follows a strong hiring report in April and a decline in job openings. While the overall job market remains healthy, the increase in jobless claims has raised concerns about a possible economic slowdown.
Robinhood, a popular online brokerage, recently reported better-than-expected financial results for the first quarter. Earnings per share and revenue set new records, driven by growth in cryptocurrency transactions and an increase in funded customers. Despite ongoing regulatory scrutiny related to its crypto business, shares of Robinhood rose in after-hours trading.
Airbnb's disappointing guidance led to an 8% drop, while Robinhood's beat estimates and surged 6%. Klaviyo's strong revenue outlook caused a 7% rise. Arm Holdings fell 6% on lower-than-expected guidance, while Equinix gained 11% on strong earnings. AppLovin's impressive earnings pushed it up 10%, and SolarEdge declined nearly 7% due to a wider loss and weak revenue guidance.
In a surprising move, BBVA, a Spanish bank, launched a hostile takeover bid for its rival, Banco Sabadell, after Sabadell rejected BBVA's previous offer. Experts describe the situation as unusual in the European banking sector, where such aggressive takeovers are rare. The takeover bid faces opposition from the Spanish government, which believes it could negatively impact the financial system. Despite the challenges, the offer from BBVA has been met with interest from shareholders due to its premium pricing.
Bank of England Governor Andrew Bailey is scheduled to hold a press conference at 7:30 a.m. ET, where he will discuss the bank's recent decision on monetary policy.
In the US, the 30-year fixed-rate mortgage is common – borrowers take the loan with a fixed interest rate for the entire loan term, making their monthly payments predictable. This type of mortgage is unique to the US due to its deep financial markets, which allows mortgages to be bundled and sold as investments. Unlike in many other countries, borrowers in the US can lock in low rates for long periods without refinancing or adjusting their interest rate.
College students protesting Israel's actions in Gaza have faced disciplinary action, including suspensions and expulsions. This has financial consequences such as losing scholarships, paid tuition, access to meal plans, and housing. Suspended students cannot complete courses, face early repayment of student loans, and potential transfer difficulties due to the disciplinary action on their transcripts. The consequences vary depending on the institution and the severity of the disciplinary action, but can be significant.
With soaring home values, more Americans are facing capital gains taxes on profits from selling their homes. Married couples filing jointly can exclude up to $500,000, while single filers can exclude $250,000. To reduce taxes, homeowners can increase the "basis," or original purchase price, by adding capital improvements to their homes.
