The Federal Reserve raised the target federal funds rate by 0.75 percentage point for the fourth time in a row on Wednesday, marking an unprecedented pace of rate hikes. The U.S. central bank has raised the benchmark short-term borrowing rate a total of six times this year, including 75 basis point increases in June, July and September, in an effort to […]
The U.S. Treasury Department in Washington. Al Drago/Bloomberg via Getty Images Investors purchased Series I bonds in record numbers from the U.S. Department of the Treasury on Friday, just beating a key deadline to lock in a historically high rate of return. I bonds are a nearly risk-free asset tied to the rate of inflation. They’ve proven to be a […]
Skynesher | E+ | Getty Images As inflation has pushed the cost of living higher, those eligible for Social Security retirement benefits may be tempted to claim benefits sooner than they had planned. Social Security beneficiaries stand to get a record 8.7% cost-of-living adjustment in 2023 that will help them contend with higher costs. But the COLA adjustment alone is […]
Catherine Yeulet | Getty Images As investors brace for another interest rate hike from the Federal Reserve, many are closely watching signals about the future of the economy. This week, investors are expecting the fourth 0.75 percentage point increase, which may continue to affect government bond yields. As the Fed takes further action to fight inflation, many are watching the […]
Lauren Bates | Moment | Getty Images If history is a guide, insurance claims for unexplained disappearances will jump this Halloween. Renters and homeowners insurance claims related to a “mysterious disappearance” increased by 5% on Halloween and 3% on Mischief Night, which is the night before Halloween, according to Travelers Insurance claims data from 2011 to 2021. But insurers don’t […]
Dimitri Otis | Stone | Getty Images The U.S. economy grew in the third quarter, reversing a negative trend from the first half of the year — but weakness looms under the surface and households shouldn’t be lulled into a false sense of financial security, economists and financial advisors said. “I think investors should still continue to be cautious … […]
Fg Trade | E+ | Getty Images A key federal program providing benefits to elderly, blind and disabled people — Supplemental Security Income — is turning 50 years old. The program, which currently serves nearly 8 million beneficiaries, was created by legislation signed by President Richard Nixon on Oct. 30, 1972. But even as Supplemental Security Income — called SSI […]
Charles Rettig, IRS Commissioner, testifies during the Senate Finance Committee hearing in Washington, D.C., June 8, 2021. Tom Williams | Pool | Reuters The IRS said it has passed a milestone of hiring 4,000 new customer service workers as the agency prepares for the 2023 tax filing season. Hired over the past several months with funds allocated by the Inflation […]
amriphoto Amid the nationwide flurry of tax cuts, two states are voting on whether to enact a “millionaire tax” on top earners in November. In California, Proposition 30 would add a 1.75% levy on annual income of more than $2 million, in addition to the state’s top income tax rate of 13.3%, beginning Jan. 1. The Fair Share Amendment in […]
Brandon Bell | Getty Images It’s no secret that higher prices are taking a bite out of household budgets. They also appear to have made some people change their retirement savings habits: Inflation has caused 54% of adults to either reduce or stop their contributions, according to a new report from Allianz Life. Additionally, 43% say they have dipped into […]
Shapecharge | E+ | Getty Images Investors crashed the Treasury Department website for Series I bonds on Friday as they clamored to lock in a record-high interest rate before a key deadline. I bonds have proven to be a bright spot for investors amid declines in the broad stock and bond markets this year. They are a nearly risk-free asset […]
Fly View Productions | E+ | Getty Images For individuals or families that get — or could get — health insurance through the public marketplace, the opportunity to choose coverage for 2023 is nearing. Open enrollment, when you can pick a health plan for next year, runs Nov. 1 through Jan. 15 for the federal marketplace at HealthCare.gov and most […]
Zoom In IconArrows pointing outwards The average cost to attend a private college in 1970 was about $3,000 a year. Today, it costs more than $50,000. How we got to this point, and its seemingly endless consequences on families and U.S. society, are the issues explored in Will Bunch’s new book, “After the Ivory Tower Falls: How College Broke the […]
nd3000 | iStock | Getty Images Despite signs of a cooling housing market, home prices are still relatively high, resulting in bigger down payments. Over the past year, average down payments in the country’s 50 biggest metros have grown by more than 35%, according to a LendingTree report, based on 30-year fixed-rate mortgage data from Jan. 1 through Oct. 10, […]
Rohit Chopra, director of the Consumer Financial Protection Bureau, testifies during a Senate Banking, Housing and Urban Affairs Committee hearing on April 26, 2022. Tom Williams | Cq-roll Call, Inc. | Getty Images The nation’s consumer watchdog is upping its efforts to clamp down on so-called junk fees that some banks charge consumers. The Consumer Financial Protection Bureau on Wednesday […]
Insta_photos | Istock | Getty Images If you’re eager to secure 9.62% annual interest for Series I bonds for six months, the deadline is quickly approaching. You must purchase I bonds and receive your confirmation email by Oct. 28 to lock in the record 9.62% rate, according to TreasuryDirect. The rate is expected to drop to roughly 6.48% in November, […]
The Biden administration announced Tuesday it is making permanent changes to its public service loan forgiveness plan to make it easier for borrowers to have their loans forgiven. “Our team has worked to turn public service loan forgiveness from a promise broken into a promise kept,” U.S. Secretary of Education Miguel Cardona said during a press call about the changes. […]
BartekSzewczyk | Getty If you’ve already maxed out 401(k) plan contributions for 2022 and you’re eager to save more for retirement, some plans have an under-the-radar option, experts say. For 2022, you can defer $20,500 into a 401(k), plus an extra $6,500 for investors 50 and older. But the total plan limit is $61,000 per worker, including matches, profit sharing […]
JPMorgan Chase brought its Advancing Black Wealth Tour to Philadelphia on October 8, 2022. Photo: Steven CW Taylor & Salim Weldon of Steven Taylor Photography A new endeavor from JPMorgan Chase is trying to help close the racial wealth gap. The bank’s Advancing Black Wealth Tour, launched this spring, aims to give attendees the tools they need to manage their […]
Getty Images If you’re eager to save more for retirement in 2023, there’s good news from the IRS, which just announced higher limits for your annual 401(k) plan and individual retirement account contributions. The employee contribution limit for 401(k) plans is increasing to $22,500 in 2023, up from $20,500, and catch-up deposits for savers age 50 and older will jump […]