Many new retirees claim Social Security benefits before age 65, even though waiting until their full retirement age or later would significantly increase their lifetime benefits. Waiting even a few months can make a difference. Factors to consider include monthly benefit size, lifetime benefits, longevity protection, and immediate financial needs. While claiming early reduces monthly benefits, it's important to avoid thinking of age 62 as "early" and instead understand the penalties associated with that timing.
In recent weeks, first-time unemployment claims in the United States have consistently stayed at 212,000, sparking some concerns. However, officials attribute this stability to seasonal adjustments in the data. This indicates a steady jobs picture, with little volatility in unemployment over the past five weeks. The surprising consistency suggests that seasonal factors are effectively removing fluctuations from state data, providing a more accurate reflection of the labor market.
Shenita Leslie, a 40-year-old Houstonian, achieved financial independence by setting financial goals, creating multiple income streams, and living a frugal life. Despite student loans and the economic downturn, she prioritized debt repayment, budgeting, and well-being. Now debt-free, Shenita has redefined the American dream by valuing freedom above material possessions, inspiring others to pursue their own financial goals.
The US stock market experienced a sharp drop on Wednesday, extending a recent downward trend. Investors are uncertain about interest rate cuts by the Federal Reserve, which has lowered their expectations from five or six cuts to just one or two. Additionally, disappointing earnings from large companies like Travelers and Prologis contributed to the decline. However, some individual stocks like United Airlines performed well, indicating strong demand in certain sectors.
The housing market is intriguing. Despite low supply, sales are slowing due to high mortgage rates. However, new listings are gradually increasing. Interest rates are the key factor, as higher rates suppress demand. Lack of inventory prevents a price collapse but balances out the market. A rate drop could lead to more sales. High rates are having an inflationary impact as people spend less on housing but more on other things. However, apartment construction is slowing, which could create future supply issues and inflation concerns.
Mortgage applications have risen despite higher interest rates due to a complicated set of factors. Refinancing has dropped, while home purchase applications have stayed strong, suggesting demand for housing remains high. However, experts wonder how much higher rates can go before demand is crushed. Housing prices have remained stable due to a lack of available homes for sale. Future interest rates are uncertain, but predictions range from 8% to 5%.
The Bitcoin halving is coming, which means new Bitcoins created every day will be cut in half. This has historically led to price increases, with predictions of a 150-200% rise in the next year or two. However, the market is complex and the outcome is uncertain. Long-term investors should buy and hold, while short-term traders can hedge against volatility. The halving has also raised interest in Bitcoin as a gateway to other crypto investments.
Under the Secure Act, some heirs must deplete inherited retirement accounts within 10 years, facing penalties if they don't. However, to address confusion, the IRS has delayed penalties for missed withdrawals until 2024. While this may seem convenient, it could lead to larger future distributions and higher taxes. Experts advise weighing one's financial situation and considering starting withdrawals now, especially with potential tax bracket changes on the horizon.
China's strategy of pumping money into the economy (fiscal stimulus) is becoming less effective. The government hopes it will give them time to develop other measures to boost consumption and industry. But high debt levels limit local governments' ability to spend more. Wealthier cities have been more successful with fiscal stimulus because they have more stable industry and consumer spending. In the future, China will focus on supporting advanced technology sectors and reducing restrictions to encourage economic growth.
Small-cap stocks, representing companies with smaller market values, often offer higher growth prospects but also increased risk. Diversifying through ETFs that track small-cap companies is recommended to reduce risk. Here are four recommended ETFs: Schwab US Small-Cap, iShares MSCI Emerging Market Small-Cap, Pacer US Small Cap Cash Cows 100, and Vanguard Small-Cap Value Index Fund. The appropriate allocation depends on individual risk tolerance and investment goals.
Darrell McKissick, a fifth-generation architect from a family of builders, leads McKissick & McKissick Architects & Planners. Inspired by her family's legacy and her own determination, she overcame challenges to establish a successful company in 1990. McKissick has designed notable projects like the Obama Library and the National Museum of African American History and Culture, showcasing her firm's excellence.
Tesla, once the electric vehicle giant, is facing difficulties. Its stock has fallen significantly due to slower sales growth, increased competition, and production issues. The company's aggressive price cuts and workforce reduction show financial pressure. Despite promises of future innovations, analysts remain skeptical, and over 60% now recommend caution or selling Tesla shares.