It is a daily ritual for millions of Australians, but if you have noticed the price of your morning flat white or soy latte increase, brace yourself — it is likely to get worse.
By the end of the year,...
It is a daily ritual for millions of Australians, but if you have noticed the price of your morning flat white or soy latte increase, brace yourself — it is likely to get worse.
By the end of the year,...
Rising bond yields are putting pressure on stocks, and, according to Goldman Sachs, once the 10-year Treasury yield surpasses 5%, it could spell trouble for equities. Historically, higher yields have correlated with weaker stock performance. The current yield of 4.67% suggests the market is in an "optimism phase," but as yields approach 5%, investors may shift towards bonds, leaving stocks vulnerable.
An upcoming book, "Financially Lit!", discusses financial success and its challenges. The author realized the pressure to buy a home isn't always suitable and highlights the importance of understanding your own values and lifestyle before making such decisions. The American dream may be redefining as younger generations face financial hurdles, making it less accessible than in the past.
The American Dream, including homeownership and retirement savings, is becoming unattainable for many due to rising living costs and stagnant wages. A $100,000 salary, once a benchmark for financial security, is now inadequate. People are increasingly relying on debt to cover expenses and are struggling to make ends meet. This shift has eroded the financial freedom that was once associated with a high income.
Mohamed El-Erian, an economic expert, criticizes the Federal Reserve for relying too much on data, leading them to deviate from their strategy. He suggests a more long-term approach and potentially adjusting the inflation target closer to 3%. Recent statements from Fed policymakers indicate a potential shift towards this conservative stance.
With tax season approaching, be cautious of scams attempting to steal personal and financial information. The IRS urges you to avoid contact from unknown sources claiming to assist with tax savings or refunds. Identity theft can lead to fraudulent tax returns, credit card accounts, or loans. If you suspect a scam, report it to the IRS or other government officials. Remember, the IRS typically contacts taxpayers by mail, not phone or email.
UBS, a Swiss bank, has launched a new $2 billion share buyback program. The bank plans to repurchase up to $1 billion of its shares this year, with the aim of exceeding its pre-acquisition levels by 2026. This move follows the completion of a $5.2 billion buyback program in 2022. Share buybacks allow companies to return cash to shareholders and often indicate a positive outlook for the company's stock.
On Friday, the government will release its latest inflation report, which shows how much prices have changed for things we often buy. This report is especially important to the Federal Reserve, which uses it to make decisions about interest rates. Financial markets will be watching closely to see how inflation has changed because the Fed wants to keep inflation low and stable.
The Mega Millions jackpot has reached $1.1 billion, but the winner could face challenges if they aren't prepared. They must choose between a lump sum or annuity payout, both of which are subject to taxes. Additionally, claiming the prize via a trust or LLC and creating a written agreement when pooling money are important considerations to protect the winner's privacy and avoid legal disputes.
Over the last decade, financial planners have transitioned from focusing solely on Roth savings to embracing a diversified investment strategy. They now prioritize pretax and Roth 401(k) deferrals to maximize employer matches, make Roth IRA contributions, and maintain taxable brokerage and health savings accounts. This approach provides flexibility, allowing for varied withdrawals based on yearly tax circumstances. While asset location can affect tax bills, financial decisions should prioritize overall wealth accumulation over tax optimization.
Webull, a digital investing platform, is set to go public through a merger with a special purpose acquisition company (SPAC), valuing the company at $7.3 billion. The combined company will trade on Nasdaq as "Webull." Webull has gained popularity with experienced investors who use its analytical tools to make trading decisions, and experienced a surge in users during the pandemic as people began trading stocks.
Despite educational advancements, women encounter pay disparities that hinder wealth accumulation and retirement savings. Vivian Tu's mentorship instilled a wealth mindset, and by investing her earnings and seeking higher compensation, she became a self-made millionaire at 27. Financial planners suggest consistent saving and investing, starting with 401(k) contributions and considering increasing stock allocations. These strategies combat challenges like caregiving responsibilities that potentially diminish earning capacity and retirement savings.
Federal Reserve Chairman Jerome Powell testified that the Fed might consider reducing interest rates later in 2023 if inflation falls back to the target of 2% annually. His testimony before a congressional committee hinted at a possible shift in policy amid concerns about rising inflation. Powell is expected to face further questioning on Thursday.
