If you have more than $250,000 in a bank account, recent changes to FDIC insurance coverage may affect you. Trust account limits have changed, and some investments that were previously covered may no longer be fully insured. To ensure your deposits are fully covered, consider spreading your money across multiple FDIC-insured banks or opening accounts with different ownership categories.
While it's unclear when the Federal Reserve will lower interest rates, cash savings are currently yielding the highest returns in years due to the high inflation rates. Options for savers include CDs, Treasury bills, and I bonds, offering after-inflation returns. Online high-yield savings accounts also offer high rates but may require minimum balances or limited access to funds. Consider your financial goals when choosing between locking in returns with long-term investments or the flexibility of liquid savings accounts.
The Powerball jackpot has reached an astounding $1 billion, with the next drawing scheduled for Monday night. The winner has two payout options: a lump sum of $483.8 million or an annuity worth $1 billion paid out over 29 years. While the lump sum may be tempting, experts warn that it could be difficult to manage without financial guidance. The annuity provides a guaranteed stream of income, which could be a wiser choice for some winners.
Overspending can sabotage financial goals, whether it's big purchases like homes and education or smaller habits like dining out. Financial advisors recommend being mindful of spending and setting priorities to avoid overspending. By tracking expenses, adjusting small habits, and considering emotions in big purchases, individuals can ensure their spending supports their financial well-being. Consulting with a financial advisor can provide objective guidance on whether spending is aligned with financial goals.
Morgan Stanley has appointed Jeff McMillan as its first firm-wide AI chief. The move reflects the growing significance of AI in financial services, as firms seek to integrate AI-powered solutions across their business lines. McMillan's previous experience in wealth management and his involvement in implementing OpenAI solutions position him well to lead Morgan Stanley's AI strategy.
Parents' homeownership impacts their children's likelihood of becoming homeowners. Homeowner parents provide financial assistance and insights, creating opportunities for children to save and learn about homeownership. Conversely, those without homeowner parents face challenges due to limited financial capacity and knowledge. Cultural upbringing also influences a person's motivation to pursue homeownership, with those raised in cultures that value homeownership more likely to become homeowners.
