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.
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.