![[Valid RSS]](images/valid-rss-rogers.png "Valid RSS")
This is a valid RSS feed.
This feed is valid, but interoperability with the widest range of feed readers could be improved by implementing the following recommendations.
<rss version="2.0"
line 163, column 207: (8 occurrences) [help]
... 's campus in Paoli, Pennsylvania]]></media:text>
^
line 164, column 165: (8 occurrences) [help]
... 's campus in Paoli, Pennsylvania]]></media:title>
^
... 101@gmail.com (Brian O'Connell) ]]></author> ...
^
<?xml version="1.0" encoding="UTF-8"?><rss version="2.0" xmlns:content="http://purl.org/rss/1.0/modules/content/" xmlns:dc="https://purl.org/dc/elements/1.1/" xmlns:media="http://search.yahoo.com/mrss/" xmlns:atom="http://www.w3.org/2005/Atom"> <channel> <atom:link href="https://www.kiplinger.com/feed/all" rel="self" type="application/rss+xml" /> <title><![CDATA[ Latest from Kiplinger ]]></title> <link>https://www.kiplinger.com</link> <description><![CDATA[ ]]></description> <lastBuildDate>Wed, 05 Feb 2025 03:48:23 +0000</lastBuildDate> <language>en</language> <item> <title><![CDATA[ The Best Communication Services Stocks to Buy ]]></title> <dc:content><![CDATA[ <p>Artificial intelligence. 5G. Streaming video. Video games.</p><p>These are the most substantive markets in technology … and yet, to find some of the biggest and best investment opportunities within these trends, you'll have to travel <em>outside</em> the technology sector.</p><p>To communication services.</p><p>Communication services stocks, the newest of the market's 11 sectors, are composed of various tech-adjacent firms involved in media and communications. It's a mishmash of names that once belonged to other sectors, spanning high-growth innovators to stodgy near-monopolies with jumbo-sized dividends.</p><p><strong>Today, we'll explore communication services stocks, including how the sector is defined, why investors are attracted to its component companies, and how to find the best ones to buy.</strong></p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_TZ5u6hI1_a7GJFMMh_div' class='future__jwplayer'><div id='botr_TZ5u6hI1_a7GJFMMh_div'></div></div></div></div> <h2 id="what-are-communication-services-stocks-2">What are communication services stocks?</h2><p>We've said this before in our discussion of <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/best-tech-stocks-to-buy"><u>technology stocks</u></a>:</p><p><em>"You can typically guess a firm's sector based on a gut feeling. If a business has mining operations, it's probably a </em><a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/best-materials-stocks"><u><em>materials stock</em></u></a><em>. If a company's predominant business is banking services, it's probably a </em><a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/best-financial-stocks-to-buy"><u><em>financial stock</em></u></a><em>."</em></p><p>But you wouldn't be the first person to confuse a communications services stock with a technology stock. You wouldn't be the hundredth. For some pretty good reasons:</p><ul><li>Communication services is the youngest slice of the sector pie. The <a href="https://www.kiplinger.com/article/investing/t022-c009-s001-do-you-own-etfs-you-need-to-heed-the-gics-shakeup.html" target="_blank"><u>Global Industry Classification Standard (GICS)</u></a> – a framework used by major index providers to help classify public companies – created the communication services sector in 2018.</li><li>Communication services companies, such as Meta Platforms (which deals in social networks, artificial intelligence and virtual reality) and Alphabet (which deals in internet search, streaming video, AI, and cloud computing), have businesses that your average person might identify as "technology."</li><li>The sector was literally created by Frankenstein-ing companies from various existing sectors. From <a href="https://www.msci.com/documents/10199/bbdd3ff9-b66e-975b-d35d-1028d1013837" target="_blank"><u>GICS' original release</u></a>: "In addition to the companies currently classified in the Telecommunication Services sector, the new Communication Services sector will include companies from the Information Technology sector that are in the business of facilitating communication, including Alphabet and Facebook, as well as media companies moved from the Consumer Discretionary sector, including Disney (Walt) and Comcast Corp."</li></ul><p>You might reasonably ask "Why bother?" Without getting too lost in the weeds, sectors, industries and other categories exist to help us better understand which businesses are like other businesses. In turn, this helps us make useful comparisons for valuation, growth and other metrics we seek out the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/best-stocks-to-buy-now"><u>best stocks to buy</u></a>.</p><p>And, well, over time, some lines of business evolve.</p><p>"This change reflects the fact that the way people communicate, share information and entertain themselves has significantly and fundamentally changed as a result of the rapid convergence between technology, media and telecom."</p><p>So, what does the communication services sector include? Well, business types are largely broken down into <a data-analytics-id="inline-link" href="https://www.indexologyblog.com/2018/07/31/why-is-the-gics-telecommunications-sector-becoming-the-communication-services-sector/"><u>two groups</u></a>:</p><p><strong>Networks:</strong> Internet, broadband, cellular, broadcast, cable and landlines</p><p><strong>Content:</strong> Information, advertising, entertainment, news, social media</p><h2 id="why-do-investors-buy-communication-services-stocks-2">Why do investors buy communication services stocks?</h2><p>When you buy stocks within a sector, you generally expect to get a certain trait or characteristic out of it.</p><p>For example, you'd probably buy <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/best-consumer-staples-stocks-to-buy"><u>consumer staples stocks</u></a> or <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/best-utility-stocks-to-buy"><u>utility stocks</u></a> for a stream of <a data-analytics-id="inline-link" href="https://youngandtheinvested.com/best-dividend-stocks-to-buy/" target="_blank"><u>steady dividends</u></a>. Or you might buy <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/best-financial-stocks-to-buy"><u>financial stocks</u></a> or <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/best-industrial-stocks-to-buy"><u>industrial stocks</u></a> in anticipation of cyclical growth. While there are always going to be exceptions to the rule – you can find growthy utilities or defensive tech stocks – most sectors have broadly defining traits.</p><p>Communication services? Well … it's all over the place.</p><p>"Over the near term, digital advertising revenue – which is the lifeblood of sector heavyweights like Meta Platforms (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=META" target="_blank">META</a>) and Google-parent Alphabet (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=GOOGL" target="_blank">GOOGL</a>) – is likely to stay robust as long as the U.S. consumer and broader economy remain strong," says Priyanshu Bakshi, Fidelity Sector Portfolio Manager, in his <a data-analytics-id="inline-link" href="https://www.fidelity.com/learning-center/trading-investing/outlook-communication-services" target="_blank"><u>2025 sector outlook</u></a>.</p><p>Bakshi adds that the diverse sector includes "more defensive companies, such as wireless providers and broadband service providers" and tends to hold up well in times of weakness and volatility in the broad market. "Over the longer term, the sector looks to be competitively positioned as one of the key beneficiaries of AI advancements and adoption," the portfolio manager notes.</p><p>In just two paragraphs, we've covered three very different types of businesses – longstanding de facto monopolies (telcos), established cyclicals (digital ad revenues) and disruptive innovation (AI). And several sector components actually boast more than one of these business types.</p><p>Thus, the answer to the question "Why do investors buy communication services stocks?" is "It depends. Tell me which stocks they're buying."</p><h2 id="how-to-find-the-best-communication-services-stocks-2">How to find the best communication services stocks</h2><p>More than any other sector, communication services mutual funds or ETFs can have a dilutive effect that runs counter to how you want to invest in the sector.</p><p>Let's say you want to invest in communication services to achieve better-than-average growth. Well, a sector index fund will be forced to hold both the growthy and defensive members of the sector, weighing down that upside potential.</p><p>If that's the case, you might be better off picking individual stocks … and at that point, your search comes down to what you want. For instance, if you're primarily concerned about yield, your screening process might end up populating established telecoms such as AT&T (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=T" target="_blank"><u>T</u></a>) and Verizon (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=VZ" target="_blank"><u>VZ</u></a>).</p><p>If you're more focused on the potential growth plays in the sector, however, you can start with this basic quality screen. To get to the following list of the best communication services stocks to buy, we've looked for comm-sector firms …</p><p><strong>Within the S&P 1500: </strong>The S&P 1500 is made up of the S&P 500, S&P MidCap 400 and S&P SmallCap 600. In other words, our search will include a wide variety of large- and mid-cap stocks, as well as the market's larger small-cap stocks.</p><p><strong>With a long-term estimated earnings-per-share growth rate of at least 15%: </strong>We're focused on the long game here, so we want to set a high bar for long-term earnings growth. And a bar of 15% should be well ahead of your average company across <em>all</em> sectors. (Just remember: Expectations aren't a guarantee of results.)</p><p><strong>With at least 10 covering analysts:</strong> We'd like to look at stocks that are on Wall Street analysts' radar, which makes it likelier that there's both more reporting and more insights on these companies. The more research we have at our disposal, the more educated a decision we can make.</p><p><strong>With a consensus Buy rating:</strong> All of the communication services stocks on our list must have an average broker recommendation of 2.5 or less within <a data-analytics-id="inline-link" href="https://www.spglobal.com/market-intelligence/en" target="_blank"><u>S&P Global Market Intelligence</u></a>'s ratings scale. S&P Global Market Intelligence converts analysts' ratings into a numerical scale. Anything with a score of 2.5 or less is considered a Buy.</p><h3 class="article-body__section" id="section-related-content"><span>Related content</span></h3><ul><li><a href="https://www.kiplinger.com/investing/stocks/the-deepseek-crash-what-it-means-for-ai-investors">The DeepSeek Crash: What It Means for AI Investors</a></li><li><a href="https://www.kiplinger.com/investing/how-do-tariffs-impact-the-stock-market">How Do Tariffs Impact the Stock Market?</a></li><li><a href="https://www.kiplinger.com/investing/if-youd-put-usd1-000-into-google-stock-20-years-ago-heres-what-youd-have-today">If You'd Put $1,000 Into Google Stock 20 Years Ago, Here's What You'd Have Today</a></li><li><a href="https://www.kiplinger.com/investing/if-youd-put-dollar1000-into-disney-stock-20-years-ago-heres-what-youd-have-today">If You'd Put $1,000 Into Disney Stock 20 Years Ago, Here's What You'd Have Today</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/investing/stocks/best-communication-services-stocks-to-buy</link> <description> <![CDATA[ Communication services stocks represent a diverse segment of the market that includes media companies, internet giants and telecoms. Here's how to find the best ones. ]]> </description> <guid isPermaLink="false">AFRcUX472jxxRb5sYa7ZBW</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/eGxdk88SdcaLwNbPD4LEqC.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Tue, 04 Feb 2025 22:19:45 +0000</pubDate> <category><![CDATA[Stocks]]></category> <category><![CDATA[Investing]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/eGxdk88SdcaLwNbPD4LEqC.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[digital rendition of earth lit up by red lights and blue lines connecting us all]]></media:text> <media:title type="plain"><![CDATA[digital rendition of earth lit up by red lights and blue lines connecting us all]]></media:title> </media:content> </item> <item> <title><![CDATA[ Stock Market Today: Earnings Speak Louder Than Tariffs ]]></title> <dc:content><![CDATA[ <p>Big moves for a couple of high-profile names masked a steady undercurrent of basically healthy earnings on Tuesday. Softer-than-expected but still stable employment data continue to support the Federal Reserve's chosen policy path. And a one-month truce in the North American trade war has encouraged market participants who expect the Trump administration to use tariff threats as negotiating tools.</p><p>"The postwar bipartisan consensus that the U.S. prospers by fostering cooperation and integration with allies and neighbors is gone," writes <a data-analytics-id="inline-link" href="https://www.wsj.com/economy/trade/trumps-tariffs-usher-in-new-trade-wars-his-goals-remain-a-mystery-559d3190"><u>Greg Ip</u></a> in The Wall Street Journal. "In its place looms the prospect of continuous trade war driven not by traditional alliances and ideology, but the priorities of the day."</p><p>That's a stark statement, but research from DataTrek shows President Donald Trump's actions are "not a real surprise" to investors.</p><p>The standard deviation for daily S&P 500 price returns is 1.1% over the trailing 10 years. According to DataTrek co-founders <a data-analytics-id="inline-link" href="https://www.linkedin.com/in/nick-colas-a623937/"><u>Nick Colas</u></a> and <a data-analytics-id="inline-link" href="https://www.linkedin.com/in/jessica-rabe-0b3b3a69/"><u>Jessica Rabe</u></a>, daily moves of less than 1% this past Friday (-0.5%) and Monday (-0.8%) were "entirely normal" and indicate "markets were not entirely surprised by whatever has just happened."</p><p>Indeed, the early data show "investors are largely seeing through worrisome trade war headlines."</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_TZ5u6hI1_a7GJFMMh_div' class='future__jwplayer'><div id='botr_TZ5u6hI1_a7GJFMMh_div'></div></div></div></div><p>Meanwhile, according to FactSet, with 36% percent of its components reporting actual results through Friday, 77% of S&P 500 companies have reported a positive earnings per share surprise and 63% have reported a positive revenue surprise.</p><p>"The blended (year-over-year) earnings growth rate for the S&P 500 is 13.2%," notes FactSet Senior Earnings Analyst <a data-analytics-id="inline-link" href="https://www.linkedin.com/in/john-butters-3242005/"><u>John Butters</u></a>. "If 13.2% is the actual growth rate for the quarter, it will mark the highest (year-over-year) earnings growth rate reported by the index since Q4 2021."</p><p>At the closing bell, the tech-heavy <strong>Nasdaq Composite</strong> was up 1.4% to 19,654. The broad-based <strong>S&P 500 Index</strong> added 0.7% to 6,037. And the blue-chip <strong>Dow Jones Industrial Average</strong> was higher by 0.3% to 44,556.</p><div class="tradingview-widget-container"> <div class="tradingview-widget-container__widget"></div> <div class="tradingview-widget-copyright"><a href="https://www.tradingview.com/" rel="noopener nofollow" target="_blank"><span class="blue-text">Track all markets on TradingView</span></a></div> <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-market-overview.js" async>{"source":"marketOverview","id":"e8813d5f-3ebb-4c9e-bdaa-d51faec48bdb","showFloatingTooltip":false,"showSymbolLogo":true,"showChart":true,"plotLineColorGrowing":"rgba(41, 98, 255, 1)","symbolActiveColor":"rgba(41, 98, 255, 0.12)","colorTheme":"light","width":"400","height":"550","isTransparent":false,"gridLineColor":"rgba(240, 243, 250, 0)","scaleFontColor":"rgba(19, 23, 34, 1)","belowLineFillColorFalling":"rgba(41, 98, 255, 0.12)","largeChartUrl":"","dateRange":"12M","belowLineFillColorGrowing":"rgba(41, 98, 255, 0.12)","belowLineFillColorFallingBottom":"rgba(41, 98, 255, 0)","plotLineColorFalling":"rgba(41, 98, 255, 1)","locale":"en","tabs":[{"title":"Indices","symbols":[{"s":"FOREXCOM:SPXUSD","d":"S&P 500 Index"},{"s":"FOREXCOM:DJI","d":"Dow Jones Industrial Average Index"},{"s":"NASDAQ:IXIC","d":"Nasdaq Composite"}],"originalTitle":"Indices"},{"title":"Futures","symbols":[{"s":"CME_MINI:ES1!","d":"S&P 500"},{"s":"CME:6E1!","d":"Euro"},{"s":"COMEX:GC1!","d":"Gold"},{"s":"NYMEX:CL1!","d":"WTI Crude Oil"},{"s":"NYMEX:NG1!","d":"Gas"},{"s":"CBOT:ZC1!","d":"Corn"}],"originalTitle":"Futures"},{"title":"Bonds","symbols":[{"s":"CBOT:ZB1!","d":"T-Bond"},{"s":"CBOT:UB1!","d":"Ultra T-Bond"},{"s":"EUREX:FGBL1!","d":"Euro Bund"},{"s":"EUREX:FBTP1!","d":"Euro BTP"},{"s":"EUREX:FGBM1!","d":"Euro BOBL"}],"originalTitle":"Bonds"},{"title":"Forex","symbols":[{"s":"FX:EURUSD","d":"EUR to USD"},{"s":"FX:GBPUSD","d":"GBP to USD"},{"s":"FX:USDJPY","d":"USD to JPY"},{"s":"FX:USDCHF","d":"USD to CHF"},{"s":"FX:AUDUSD","d":"AUD to USD"},{"s":"FX:USDCAD","d":"USD to CAD"}],"originalTitle":"Forex"}],"belowLineFillColorGrowingBottom":"rgba(41, 98, 255, 0)","realType":"embed"}</script></div><h2 id="labor-market-data-is-stable-2">Labor market data is stable</h2><p>The first Jobs Friday of 2025 is looming at the end of this week's <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/economy/this-weeks-economic-calendar"><u>economic calendar</u></a>. In the interim, we'll see the private ADP employment summary on Wednesday and weekly initial jobless claims numbers on Thursday.</p><p>Today, Job Openings and Labor Turnover Survey (JOLTS) data from the <a data-analytics-id="inline-link" href="https://www.bls.gov/news.release/jolts.nr0.htm"><u>Bureau of Labor Statistics</u></a> showed that job openings decreased by 556,000 to 7.6 million on the last business day of December.</p><p>"Today's JOLTS readings are unlikely to have a significant effect on the Fed's overall policy outlook," writes Barclays Senior U.S. Economist <a data-analytics-id="inline-link" href="https://www.linkedin.com/in/jonathan-millar-4410b05/"><u>Jonathan Millar</u></a>. The economist expects policymakers to hold <a data-analytics-id="inline-link" href="https://www.kiplinger.com/economic-forecasts/interest-rates"><u>interest rates</u></a> steady at the next <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/when-is-the-next-fed-meeting"><u>Fed meeting</u></a>, citing a resilient economy and 100 basis points of cuts to the target range for the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/what-is-the-federal-funds-rate"><u>federal funds rate</u></a> since September.</p><p>"Indeed," Millar adds, "we think the bar for cuts at upcoming meetings remains elevated unless the data present evidence of an abrupt deterioration in activity or labor market conditions."</p><h2 id="merck-has-trouble-in-china-2">Merck has trouble in China</h2><p><strong>Merck & Co.</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=MRK" target="_blank">MRK</a>) was the worst performer among the 30 <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/blue-chip-stocks/602319/all-30-dow-jones-stocks-ranked-the-pros-weigh-in"><u>Dow Jones stocks</u></a> on Tuesday, sliding 9.1% after management reported that sales of Gardasil, its second-best-selling drug, declined by 18% during the fourth quarter and that shipments of the HPV vaccine to China are on hold through at least the middle of 2025. MRK has been sliding since late July on talk of its Gardasil trouble in China.</p><p>But the big problem for Merck stock could be Keytruda, the pharma giant's blockbuster cancer treatment. "The reaction also seems due to two questions that have nothing to do with the vaccine," posits STAT senior writer <a data-analytics-id="inline-link" href="https://www.statnews.com/2025/02/04/merck-gardasil-keytruda-cancer-drug-china/"><u>Matthew Herper</u></a>. "How much should investors expect sales of Keytruda, the best-selling drug in the world, to decline in the coming years? And can they trust Merck's guidance on that decline?"</p><p>Merck stock has generated a negative total return of nearly 20% over the trailing 12 months. And yet Wall Street is bullish on MRK.</p><p>Of the 26 analysts who cover the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/best-healthcare-stocks"><u>healthcare stock</u></a> that are tracked by <a data-analytics-id="inline-link" href="https://www.spglobal.com/market-intelligence/en"><u>S&P Global Market Intelligence</u></a>, 14 rate it a Strong Buy and five say it's a Buy. Seven have it at Hold. The average 12-month price target is $123.97, 36.6% upside from Tuesday's closing price.</p><h2 id="ai-revolution-drives-palantir-stock-2">AI revolution drives Palantir stock</h2><p><strong>Palantir Technologies</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=PLTR" target="_blank">PLTR</a>) stock surged 24% and was the top-performing stock in the S&P 500 after the AI software provider <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/why-palantir-pltr-best-sp-500-stock-after-earnings"><u>beat top- and bottom-line expectations</u></a> for its fourth quarter and issued a better-than-expected outlook for its first quarter and full year.</p><p>CEO Alex Karp highlighted "our deepening position at the center of the AI revolution," noting that "our early insights surrounding the commoditization of large language models have evolved from theory to fact." Palantir is seeing momentum in commercial and government sectors "unlike anything that has come before." And this "revolution," Karp intones, "will play out over years and decades."</p><p>Wall Street is in wait-and-see mode with Palantir after an explosive run, with 13 analysts rating the stock Hold. Two analysts have it at Strong Buy, and one calls PLTR a Buy. Four rate it a Sell, and two have it as a Strong Sell.</p><p>Downside from here based on an average 12-month price target of $57.26 is 44.9%.</p><h3 class="article-body__section" id="section-related-content"><span>Related content</span></h3><ul><li><a href="https://www.kiplinger.com/stocks-politicians-are-selling-buying-trading-congress">What Stocks Are Politicians Buying and Selling?</a></li><li><a href="https://www.kiplinger.com/investing/should-you-be-investing-in-buffered-etfs">Buffered ETFs: What Are They And Should You Invest in One?</a></li><li><a href="https://www.kiplinger.com/investing/stocks/what-vanguards-massive-fee-cut-means-for-investors">What Vanguard's Massive Fee Cut Means for Investors</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/investing/stocks/stock-market-today-earnings-speak-louder-than-tariffs</link> <description> <![CDATA[ Recent market reaction to Trump administration policy announcements has been "entirely normal." ]]> </description> <guid isPermaLink="false">fqVuhCwJMwv5StMy2sa54d</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/paQsrNSwmJmeLssyCr5ht.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Tue, 04 Feb 2025 21:05:37 +0000</pubDate> <category><![CDATA[Stocks]]></category> <category><![CDATA[Investing]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/paQsrNSwmJmeLssyCr5ht.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[stocks rally on earnings]]></media:text> <media:title type="plain"><![CDATA[stocks rally on earnings]]></media:title> </media:content> </item> <item> <title><![CDATA[ State Farm Seeks Emergency Insurance Rate Hikes in California After Wildfires ]]></title> <dc:content><![CDATA[ <p>State Farm General, the largest provider of Fire insurance in California, has requested an emergency rate hike of 22% for homeowners following one of the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/slideshow/business/t019-s001-most-expensive-natural-disasters-in-u-s-history/index.html">most expensive natural disasters in U.S. history</a>. The company has already paid out over $1 billion in claims, with more expected in the coming months.</p><p>In a <a data-analytics-id="inline-link" href="https://newsroom.statefarm.com/download/90ab44d3-54d6-42b7-8d69-0d883fa5de78/february32025lettersenttocadepartmentofinsurance.pdf" target="_blank">letter</a> to the California Department of Insurance (CDI), State Farm argues that these increases are necessary to maintain financial stability and continue offering coverage in wildfire prone areas. “This request will help avert a dire situation for our customers,” the company stated.</p><p><a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/home-insurance/california-wildfires-home-insurance-crisis">California has an insurance crisis</a>, as residents already pay some of the highest home insurance premiums in the country, and major insurers have pulled back from the market in recent years due to rising wildfire risks. With this latest request, homeowners could face even higher costs and fewer coverage options.</p><h2 id="the-growing-financial-toll-of-wildfires-in-california-2">The growing financial toll of wildfires in California</h2><p>The recent wildfires in California have caused an estimated $135 billion to $150 billion in total damage and economic losses, according to <a data-analytics-id="inline-link" href="https://www.accuweather.com/en/press/media-advisory-accuweather-increases-estimate-of-total-damage-and-economic-loss-ascatastrophic-wildfires-in-southern-california-continue-to-ravage-the-los-angeles-area-updated-preliminary-estimate-i/1732268" target="_blank">AccuWeather</a>. The Los Angeles region alone saw 12,000 homes destroyed, adding to the growing financial strain on insurers.</p><p>As of February 1, State Farm General has received more than 8,700 claims, already paying out over $1 billion, with additional claims expected. In a statement, the company emphasized that rate increases are necessary to cover future claims, given the growing risks in the state.</p><p>However, the California Department of Insurance has raised concerns about State Farm’s financial situation, questioning the justification for these rate hikes. "To protect millions of California consumers and the integrity of our residential property insurance market, the Department will respond with urgency and transparency to recommend a course of action for Commissioner Ricardo Lara," CDI stated.</p><p>Currently, there is no proposed timeline for approval or denial of State Farm’s request.</p><h2 id="state-farm-seeks-sharp-rate-increases-across-california-2">State Farm seeks sharp rate increases across California</h2><p>State Farm is proposing substantial rate hikes across different property types, including:</p><ul><li>22% increase for homeowners</li><li>15% increase for renters and condo owners</li><li>Up to 38% increase for rental dwellings</li></ul><p>The company cites rising wildfire risks and mounting financial losses as justification, claiming these increases are crucial to offset claims and ensure long-term stability.</p><p>However, consumer advocacy groups like <a data-analytics-id="inline-link" href="https://consumerwatchdog.org/insurance/trying-to-cash-in-on-wildfire-tragedy-state-farm-demands-immediate-740-million-bailout/" target="_blank">Consumer Watchdog</a>, have strongly opposed the request. Critics argue that homeowners should not bear the burden of corporate losses, especially when State Farm’s parent company holds $135 billion in reserves. They also point to State Farm’s $1.4 billion in profits from 2020 to 2022, questioning the timing and necessity of such a drastic hike.</p><p>State Farm has pursued similar increases before. A previous 20% rate hike took effect in March 2024. In June 2023, the company applied for a 30% rate increase totaling $1.3 billion, arguing that California policyholders — not its parent company — should help shore up its finances.</p><p>Other insurers, including Allstate and Farmers, have also sought double-digit rate increases or reduced their presence in California, citing similar financial pressures.</p><h2 id="how-homeowners-can-navigate-rising-insurance-costs-2">How homeowners can navigate rising insurance costs</h2><p>With rising insurance costs and fewer options, California homeowners must explore alternatives to protect their properties. Some may turn to the <a data-analytics-id="inline-link" href="https://www.cfpnet.com/" target="_blank">California FAIR Plan</a>, a last-resort insurance program for high-risk areas, though it often comes with <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/home-insurance/what-factors-affect-your-home-insurance-cost">higher premiums</a> and limited coverage. Others might try bundled policies or regional insurers that still operate in wildfire-prone areas.</p><p>Another way to manage rising costs is through mitigation <a data-analytics-id="inline-link" href="https://www.kiplinger.com/real-estate/home-improvement/602297/protect-your-home-from-natures-wrath">efforts to protect your home from natural disaster</a>, which may make homeowners eligible for discounts or expanded coverage. For wildfires, this includes fire-resistant roofing, defensible space around properties and improved sprinkler systems. Some insurers, including State Farm, offer incentives for wildfire-resistant improvements but availability and savings vary.</p><p>Use our tool below, in partnership with Bankrate, to compare today’s home insurance rates:</p> <p>State Farm’s proposed rate hikes underscore the worsening crisis in California’s home insurance market. Insurers face mounting wildfire-related losses, and homeowners struggle with rising costs. The outcome of State Farm’s emergency request will set a precedent for future rate increases and could influence how other insurers approach coverage in high-risk regions.</p><p>Beyond California, this issue has broader implications for other disaster-prone states, where hurricanes, floods and wildfires are driving higher insurance costs and insurer withdrawals. As regulators weigh consumer protection against insurer solvency, the uncertainty surrounding State Farm’s request leaves many homeowners wondering just how much higher premiums can go before coverage becomes unattainable.</p><h3 class="article-body__section" id="section-related-content"><span>Related content</span></h3><ul><li><a href="https://www.kiplinger.com/personal-finance/home-insurance/surprising-things-home-insurance-doesnt-cover">Surprising Things Home Insurance Doesn't Cover</a></li><li><a href="https://www.kiplinger.com/article/insurance/t028-c000-s002-how-to-get-your-insurer-to-pay-your-claims.html">How to Get Your Insurer to Pay Your Home and Auto Claims</a></li><li><a href="https://www.kiplinger.com/article/insurance/t028-c000-s002-trim-your-home-insurance-premium.html">How to Lower Your Home Insurance Premium</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/personal-finance/home-insurance/state-farm-emergency-insurance-rate-hikes-california-wildfires</link> <description> <![CDATA[ State Farm has requested emergency rate increases of up to 38% in California, citing wildfire-related losses. Here’s what homeowners need to know. ]]> </description> <guid isPermaLink="false">3gHKZQ5xDef5w2cB7eseSD</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/RWniuRmFafkKuAiHotNQjD.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Tue, 04 Feb 2025 20:46:54 +0000</pubDate> <category><![CDATA[Home-insurance]]></category> <category><![CDATA[business]]></category> <category><![CDATA[Personal-finance]]></category> <category><![CDATA[Insurance]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/RWniuRmFafkKuAiHotNQjD.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[Aerial view of fire damage after Palisades Fire in Los Angeles ]]></media:text> <media:title type="plain"><![CDATA[Aerial view of fire damage after Palisades Fire in Los Angeles ]]></media:title> </media:content> </item> <item> <title><![CDATA[ Will Elon Musk's Treasury Access Derail Your 2025 Tax Refund? ]]></title> <dc:content><![CDATA[ <p>As the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/new-tax-season-changes-to-know">2025 tax filing season</a> continues, Elon Musk's influence over government systems and recent claims about "deleting" an agency are creating confusion and alarm about potential tax return disruptions.</p><p>The concerns come as the IRS is in flux. The agency lost its Commissioner, who resigned on Jan. 20 and awaits confirmation hearings for <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/how-trump-commissioner-pick-could-change-your-taxes">President Trump’s controversial pick</a> for the role, who has limited experience with tax matters. Additionally, the tax agency faces an indefinite<a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/what-trump-federal-hiring-freeze-means-for-your-tax-return"> hiring freeze</a> and a <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/irs-could-lose-another-20-billion-in-funding">loss of billions in funding</a> initially intended to modernize operations and improve customer service and tax enforcement.</p><p>It’s also worth mentioning that Musk, who has been deemed a “special government employee” tasked by Trump with cutting government spending through a Department of Government Efficiency (DOGE), heads Tesla, which paid zero income tax last year despite making billions.</p><p>Wondering what this means for you? Here’s more to know.</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_hEB3ir3W_a7GJFMMh_div' class='future__jwplayer'><div id='botr_hEB3ir3W_a7GJFMMh_div'></div></div></div></div><h2 id="did-elon-musk-delete-the-direct-file-tax-program-2">Did Elon Musk delete the Direct File tax program?</h2><p>On Monday, Musk<a data-analytics-id="inline-link" href="https://x.com/elonmusk/status/1886498750052327520"><u> declared</u></a> on his social media platform X that he had "deleted" <a data-analytics-id="inline-link" href="https://18f.gsa.gov/"><u>18F</u></a>, the digital services agency responsible for developing the IRS Direct File system.</p><p>Despite Musk's claim, the Direct File program remains operational and is accepting tax returns for the current tax season, which officially began on January 27, 2025. However, Musk's statement has confused people and raised concerns about the program's future.</p><ul><li>This free tax filing program, which <a href="https://www.kiplinger.com/taxes/irs-direct-file-some-states-wont-get-the-program">expanded to 25 states</a> for the 2025 tax season, allows eligible taxpayers to file their federal returns directly with the IRS at no cost.</li><li>With an estimated 30 million taxpayers eligible for <a href="https://www.kiplinger.com/taxes/irs-direct-file-what-it-is-how-it-works">Direct File </a>this year, any disruption to the service could have far-reaching consequences.</li><li>The uncertainty surrounding the program comes at a critical time for people preparing their tax returns, adding extra stress to an already complex process.</li></ul><p>During his confirmation hearing on January 16, Scott Bessent, who has since been <a data-analytics-id="inline-link" href="https://home.treasury.gov/news/press-releases/sb0001" target="_blank">sworn in </a>as U.S. Treasury Secretary, committed to maintaining the IRS Direct File program for the 2025 tax season.</p><p>Though Bessent didn’t make any long-term commitment, saying, "If confirmed, I will consult and study the program and understand it better and make sure that it works to serve the IRS' three goals of collections, customer service and privacy."</p><h2 id="musk-treasury-access-unprecedented-2">Musk Treasury access unprecedented</h2><p>Adding to the concerns, Musk's DOGE team gained unprecedented access to sensitive government payment systems earlier this week. That includes those controlling tax refunds and <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/social-security/could-elon-musk-be-paying-your-social-security-check">Social Security payments</a>.</p><p>This access, reportedly granted by Secretary Bessent, has alarmed lawmakers who expressed concern over the security of taxpayer data and the potential for politically motivated interference in critical payment systems.</p><p>Sen. <a data-analytics-id="inline-link" href="https://www.wyden.senate.gov/" target="_blank">Ron Wyden</a> of Oregon, ranking Democrat on the Senate Finance Committee, expressed worry that Musk-linked officials might attempt to unlawfully withhold payments for various government programs, including tax refunds. Congresswoman Madeleine Dean (D-Pa) echoed these concerns, calling Musk's access to sensitive data "an outrage" and a violation of Americans' privacy.</p><p>Sen. <a data-analytics-id="inline-link" href="https://www.murphy.senate.gov/" target="_blank">Chris Murphy</a> (D-Conn.) told CNN’s Jake Tapper, “Every American needs to know that your information, your personal tax records, have been potentially compromised, that unelected billionaires and his Silicon Valley right-wing friends may have access to all of your personal information.”</p><p>Sen. Minority Leader <a data-analytics-id="inline-link" href="https://www.schumer.senate.gov/" target="_blank">Chuck Schumer</a> (D-N.Y.) told reporters, “We must protect people’s Social Security payments, their Medicare payments, tax refunds, from any possible tampering by DOGE or any other unauthorized entities.”</p><p>The Trump administration responded by noting that Musk is a special government employee. Such employees typically work for the government temporarily, usually no more than 130 out of a given year. And Bessent <a data-analytics-id="inline-link" href="https://www.politico.com/news/2025/02/03/bessent-musk-doge-treasury-payments-00202278" target="_blank">reportedly</a> told lawmakers that Musk doesn't control the Treasury system.</p><p>Trump defended the access, telling press reporters, “Elon can’t do and won’t do anything without our approval and we’ll give him the approval where appropriate. Where not appropriate, we won’t.”</p><p>For his part, Musk posted <a data-analytics-id="inline-link" href="https://x.com/elonmusk/status/1886701194782892524" target="_blank">the following</a> Tuesday on his social media platform X: "We're never going to get another chance like this. It's now or never. Your support is crucial to the success of the revolution of the people."</p><h2 id="tesla-income-tax-2">Tesla income tax?</h2><p>Musk has previously advocated simplifying the tax code, suggesting a federal flat tax. Critics argue that such changes could disproportionately affect individuals with lower incomes.</p><p><em>Note: Since taking office, Trump has called for </em><a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/whats-wrong-with-trumps-plan-to-abolish-income-tax"><em>abolishing income tax</em></a><em> in favor of tariffs, and other lawmakers have reintroduced a bill to </em><a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/bill-aims-to-abolish-the-irs-for-consumption-tax"><em>eliminate the IRS</em></a><em> in favor of a national consumption tax.</em></p><p>Additionally, while Musk pushes for government cost-cutting and efficiency, his own company, <a data-analytics-id="inline-link" href="https://www.tesla.com/" target="_blank">Tesla</a>, has largely avoided significant federal taxes.</p><ul><li>Tesla reported $2.3 billion of U.S. income in 2024 but paid zero federal income tax.</li><li>Over three years, Tesla reported $10.8 billion in U.S. income while paying only $48 million in federal taxes, an effective tax rate of 0.4%.</li><li>The company has reportedly benefited from various tax breaks, including accelerated depreciation and credits for executive stock options.</li></ul><p>This contrast between Musk's crusade for government efficiency, his company's tax avoidance strategies, and his federal <a data-analytics-id="inline-link" href="https://www.spacex.com/" target="_blank">SpaceX</a> contracts (billions of dollars worth) has led some to question the appropriateness of his role in shaping federal fiscal policy. Some argue further that Musk and his non-government staff operate without proper oversight and potentially violate laws.</p><p>In a<a data-analytics-id="inline-link" href="https://www.murray.senate.gov/murray-schumer-wyden-schatz-warren-sound-alarm-over-musk-forcing-way-into-highly-sensitive-government-payment-system-threatening-to-choke-off-funding-for-the-american-people/"><u> release</u></a>, Sen. <a data-analytics-id="inline-link" href="https://www.murray.senate.gov/" target="_blank">Patty Murray</a> (D-Wash.) said, “I’ve been hearing from people across my state who are truly alarmed about what Musk and his associates having access to this system could mean for their data—and for funding that they count on.”</p><p>Murray went on to describe Musk as "an unelected, unaccountable billionaire with extensive conflicts of interest."</p><p>So far, Republican lawmakers in Congress have been mostly silent or supportive of Elon Musk’s access to Treasury systems. Meanwhile, some federal employee unions have already filed a lawsuit to block Musk from accessing the system.</p><h2 id="bottom-line-trump-elon-and-your-taxes-2">Bottom line: Trump, Elon, and your taxes</h2><p>While IRS Direct File is operational for the 2025 tax season, and the agency had hoped to make it permanent, the program's long-term future remains uncertain.</p><p>In December, 29 Republican lawmakers called for the then-incoming Trump administration to end the program and have since introduced legislation proposing to do so. Industry giants like <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/ftc-orders-h-and-r-block-to-revamp-practices-and-pay-millions">H&R Block</a> and Inutit’s <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/ftc-turbotax-free-filing-ads">TurboTax</a> have long opposed the IRS entering the tax preparation business.</p><p>As the 2025 tax season progresses, taxpayers are left to try to navigate this uncertain landscape. Hopefully, the confusion surrounding Elon Musk’s Treasury payment systems and <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/how-trump-commissioner-pick-could-change-your-taxes">shakeups at the IRS</a> don’t disrupt the tax filing experience or tax refunds.</p><p>At this point, the impacts, if any, are unclear. So, stay tuned and consult a tax or financial professional with questions about your tax situation and liability.</p><h3 class="article-body__section" id="section-related"><span>Related</span></h3><ul><li><a href="https://www.kiplinger.com/taxes/irs-direct-file-what-it-is-how-it-works">IRS Direct File 2025: What You Need to Know</a></li><li><a href="https://www.kiplinger.com/retirement/social-security/could-elon-musk-be-paying-your-social-security-check">Could Elon Musk Be Paying Your Social Security Check?</a></li><li><a href="https://www.kiplinger.com/news/live/tax-season-2025-tips-information-updates">Kiplinger Tax Season 2025 Live Coverage: Updates, News, Tax Tips and More</a></li><li><a href="https://www.kiplinger.com/taxes/whats-wrong-with-trumps-plan-to-abolish-income-tax">Back to the Old Days? What's Wrong With Trump's Plan to Abolish Income Tax</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/taxes/elon-musk-treasury-access-tax-refund</link> <description> <![CDATA[ Elon Musk's growing power and unprecedented access to sensitive payment systems are raising concerns about tax season impacts. ]]> </description> <guid isPermaLink="false">Jf8ux7yjHJJLZbU4yXMGpe</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/eHvDYDwueX9fjNMWXxcb8F.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Tue, 04 Feb 2025 18:18:00 +0000</pubDate> <category><![CDATA[taxes]]></category> <category><![CDATA[Tax-refunds]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/eHvDYDwueX9fjNMWXxcb8F.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[Tesla, SpaceX and X CEO Elon Musk arrives to the inauguration of U.S. President-elect Donald Trump in the Rotunda of the U.S. Capitol on January 20, 2025 in Washington, DC. Donald Trump takes office for his second term as the 47th president of the United States. (Photo by Chip Somodevilla/Getty Images)]]></media:text> <media:title type="plain"><![CDATA[Tesla, SpaceX and X CEO Elon Musk arrives to the inauguration of U.S. President-elect Donald Trump in the Rotunda of the U.S. Capitol on January 20, 2025 in Washington, DC. Donald Trump takes office for his second term as the 47th president of the United States. (Photo by Chip Somodevilla/Getty Images)]]></media:title> </media:content> </item> <item> <title><![CDATA[ What Vanguard's Massive Fee Cut Means for Investors ]]></title> <dc:content><![CDATA[ <p>In early February, investment services firm <strong>The Vanguard Group</strong> announced its <a data-analytics-id="inline-link" href="https://corporate.vanguard.com/content/corporatesite/us/en/corp/articles/announcing-largest-fee-cut-vanguard-history.html"><u>largest fee cut ever</u></a>, slashing costs on 168 share classes across 87 funds. The move went into effect on February 1 and is expected to save investors more than $350 million in 2025, according to Vanguard.</p><p>"This fee cut speaks to what our founder, <a data-analytics-id="inline-link" href="https://www.kiplinger.com/article/investing/t030-c000-s002-the-legacy-of-john-bogle.html">Jack Bogle</a>, set out to do, which was to create an investment company that was designed for one constituency, and that's our investors," said Vanguard CEO Salim Ramji in a statement. "Bogle had a great phrase: 'You get what you don't pay for.'"</p><p>Ramji added that "there's a false dichotomy between, Do you want great performance or high quality, or do you want low costs? At Vanguard, you can get both."</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_TZ5u6hI1_a7GJFMMh_div' class='future__jwplayer'><div id='botr_TZ5u6hI1_a7GJFMMh_div'></div></div></div></div><p>Following the fee reduction, Vanguard proudly noted that 86% of its mutual fund and exchange-traded fund (ETF) assets have the lowest-cost declines in their peer groups. The average expense ratio for Vanguard's index fixed-income ETFs is now just 0.037% and its actively managed fixed-income ETFs have an average expense ratio of 0.105%.</p><h2 id="how-vanguard-s-lower-fees-benefit-investors-2">How Vanguard's lower fees benefit investors</h2><p>As Kiplinger contributor and Head of Investment & Trading Services at Vanguard, James Martielli, CFA, explains in his piece "<a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/investment-costs-a-frugal-savers-guide"><u>A Frugal Saver's Guide to Spotting Investment Costs</u></a>," expenses are often one of "the best predictors of future returns of funds with a similar investment strategy."</p><p>Specifically, he says that "the higher the average expense ratio, the lower the average return." Let's say you have $1,000 to invest in a fund that charges an expense ratio of 0.20% or another that charges 0.05% to invest. Your return from the fund that costs 0.05% will accrue a bigger return over time than the one that charges 0.20% because you're left with more money to invest.</p><p>"Like interest, costs compound and <a data-analytics-id="inline-link" href="https://corporate.vanguard.com/content/corporatesite/us/en/corp/articles/costs-matter-other-axioms-tax-efficient-investing.html#:~:text=Costs%20are%20one%20factor%20that,seek%20out%20low%2Dcost%20investments."><u>can really add up over time</u></a>," Martielli writes.</p><p>If you're in the market for a low-cost fund or just want to know what your options are, here are the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/etfs/603214/kip-etf-20-the-best-cheap-etfs-you-can-buy"><u>Kiplinger ETF 20</u></a>, our favorite cheap ETFs to buy. We also have the Kiplinger 25, the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/mutual-funds/602176/kip-25-best-low-fee-mutual-funds">best no-load mutual funds</a>, several of which are <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/mutual-funds/603157/best-vanguard-mutual-funds-investors-all-stripes">top Vanguard funds</a>.</p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/article/investing/t041-c007-s001-vanguard-etfs-vs-mutual-funds-which-are-better.html"><u>Vanguard ETFs vs Mutual Funds: Which Make for Better Investments?</u></a></li><li><a href="https://www.kiplinger.com/investing/etfs/many-mutual-funds-are-converting-to-etfs-what-to-know"><u>Many Mutual Funds Are Converting To ETFs: What To Know</u></a></li><li><a href="https://www.kiplinger.com/retirement/vanguard-sec-fine-target-date-funds-retirement"><u>Why Vanguard Was Ordered to Pay a $106 Million Fine Related to Target-Date Funds</u></a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/investing/stocks/what-vanguards-massive-fee-cut-means-for-investors</link> <description> <![CDATA[ Vanguard just announced its largest fee cut in the asset manager's history, which is great news for investors. Here's what you need to know. ]]> </description> <guid isPermaLink="false">ow9u4wtFTXRuMSdHgcJpsh</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/3tfUz7kZqxr3SqGhpjCjkD.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Tue, 04 Feb 2025 18:00:23 +0000</pubDate> <category><![CDATA[Stocks]]></category> <category><![CDATA[Investing]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/3tfUz7kZqxr3SqGhpjCjkD.jpg"> <media:credit><![CDATA[Hannah Beier/Bloomberg via Getty Images]]></media:credit> <media:text><![CDATA[Vanguard signage backlit by red lights outside the company's campus in Paoli, Pennsylvania]]></media:text> <media:title type="plain"><![CDATA[Vanguard signage backlit by red lights outside the company's campus in Paoli, Pennsylvania]]></media:title> </media:content> </item> <item> <title><![CDATA[ PepsiCo Stock Falls Despite Earnings Beat, Dividend Hike ]]></title> <dc:content><![CDATA[ <p><strong>PepsiCo</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=PEP" target="_blank">PEP</a>) stock is falling Tuesday as the snack food and beverage maker's revenue miss offsets an earnings beat and another dividend increase.</p><div class="tradingview-widget-container"> <div class="tradingview-widget-container__widget"></div> <div class="tradingview-widget-copyright"><a href="https://www.tradingview.com/" rel="noopener nofollow" target="_blank"><span class="blue-text">Track all markets on TradingView</span></a></div> <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-single-quote.js" async>{"source":"singleQuote","id":"e2d8c019-d02b-4cc7-81d6-0920acbe4c27","colorTheme":"light","isTransparent":false,"locale":"en","width":"350","symbol":"NASDAQ:PEP","realType":"embed"}</script></div><p><a data-analytics-id="inline-link" href="https://investors.pepsico.com/docs/default-source/investors/q4-2024/q4-2024-earnings-release_tgzvps60bh39qrbu.pdf" target="_blank"><u>In the quarter ending December 28</u></a>, PepsiCo's revenue slipped 0.2% year over year to $27.8 billion. Its earnings per share (EPS) were up 10.1% from the year-ago period to $1.96.</p><p>"Our businesses remained resilient in 2024, despite subdued category performance trends in North America, the continued impacts related to a recall in our Quaker Foods North America division and business disruptions due to geopolitical tensions in certain international markets," said PepsiCo CEO Ramon Laguarta in a statement.</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_TZ5u6hI1_a7GJFMMh_div' class='future__jwplayer'><div id='botr_TZ5u6hI1_a7GJFMMh_div'></div></div></div></div><p>Laguarta added that Pepsi's "multiyear productivity initiatives" have allowed the company the ability to invest in its business "and deliver improvements in our gross margin, operating margin expansion and EPS in 2024."</p><p>The results were mixed compared with analysts' expectations. Wall Street was anticipating revenue of $27.9 billion and earnings of $1.94 per share, according to <a data-analytics-id="inline-link" href="https://www.cnbc.com/2025/02/04/pepsico-pep-q4-2024-earnings.html" target="_blank"><u>CNBC</u></a>.</p><p>For its full <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/fiscal-year-definition-what-every-investor-should-know">fiscal year</a>, PepsiCo said it expects to achieve a low-single-digit increase in organic revenue and a mid-single-digit rise in earnings per share.</p><p>"Looking ahead to 2025, we will continue to build upon the successful expansion of our international business, while also taking actions to improve performance in North America," Laguarta said.</p><p>PepsiCo also announced a 5% increase to its quarterly dividend, bringing its annual rate to $5.69 per share. This marks the 53rd consecutive annual increase to PEP's dividend, making it one of the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/dividend-stocks/best-dividend-stocks-you-can-count-on"><u>best dividend stocks to buy for dependable dividend growth</u></a>.</p><h2 id="is-pepsico-stock-a-buy-sell-or-hold-2">Is PepsiCo stock a buy, sell or hold?</h2><p>PepsiCo has struggled on the price charts over the past 12 months, down 9% on a total return basis (price change plus dividends) vs the S&P 500's 22% gain. Yet Wall Street is bullish on the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/best-consumer-staples-stocks-to-buy"><u>consumer staples stock</u></a>.</p><p>According to <a data-analytics-id="inline-link" href="https://www.spglobal.com/marketintelligence/en/" target="_blank"><u>S&P Global Market Intelligence</u></a>, the average analyst target price for PEP stock is $172.62, representing implied upside of roughly 17% from current levels. Additionally, the consensus recommendation is Buy.</p><p>CFRA Research analyst <a data-analytics-id="inline-link" href="https://www.linkedin.com/in/garrett-nelson-382b31125" target="_blank">Garrett Nelson</a> is one of those with a Buy rating on the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/blue-chip-stocks/605147/hedge-funds-top-blue-chip-stocks-to-buy-now">blue chip stock</a>, though he lowered his price target after earnings to $175 from $190.</p><p>PepsiCo's bottom-line beat was "driven by stronger-than-expected margins," Nelson says, as both revenue and volume declined over the three-month period. And while PEP's full-year EPS guidance arrives "slightly below the current consensus," Nelson notes that the "company's masterful track record of providing conservative guidance and then exceeding it."</p><p>He adds that despite industry headwinds, he still sees value in PEP despite the stock's recent slide.</p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/investing/stocks/17494/next-week-earnings-calendar-stocks"><u>Earnings Calendar and Analysis for This Week</u></a></li><li><a href="https://www.kiplinger.com/investing/stocks/paypal-stock-falls-despite-earnings-beat-strong-outlook"><u>PayPal Stock Falls Despite Earnings Beat, Strong Outlook</u></a></li><li><a href="https://www.kiplinger.com/investing/stocks/why-palantir-pltr-best-sp-500-stock-after-earnings"><u>Why Palantir Is the Best S&P 500 Stock Today</u></a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/investing/stocks/pepsico-pep-stock-earnings-dividend-hike</link> <description> <![CDATA[ PepsiCo stock is lower Tuesday after the soft drink maker's top-line miss offsets an earnings beat and dividend hike. Here's what to know. ]]> </description> <guid isPermaLink="false">uZoCQJqNeZCEmLtLNmTEKW</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/9weXxvkpocpmE2YCPcRrPK.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Tue, 04 Feb 2025 16:55:23 +0000</pubDate> <category><![CDATA[Stocks]]></category> <category><![CDATA[Investing]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/9weXxvkpocpmE2YCPcRrPK.jpg"> <media:credit><![CDATA[Jevone Moore/Icon Sportswire via Getty Images]]></media:credit> <media:text><![CDATA[ Sofi stadium Pepsi display before the Baltimore Ravens game versus the Los Angeles Chargers on November 25, 2024]]></media:text> <media:title type="plain"><![CDATA[ Sofi stadium Pepsi display before the Baltimore Ravens game versus the Los Angeles Chargers on November 25, 2024]]></media:title> </media:content> </item> <item> <title><![CDATA[ PayPal Stock Falls Despite Earnings Beat, Strong Outlook ]]></title> <dc:content><![CDATA[ <p><strong>PayPal Holdings</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=PYPL" target="_blank">PYPL</a>) stock is sinking Tuesday despite the payments company beating top- and bottom-line expectations for its fourth quarter and issuing a better-than-expected first-quarter and full-year outlook.</p><div class="tradingview-widget-container"> <div class="tradingview-widget-container__widget"></div> <div class="tradingview-widget-copyright"><a href="https://www.tradingview.com/" rel="noopener nofollow" target="_blank"><span class="blue-text">Track all markets on TradingView</span></a></div> <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-single-quote.js" async>{"source":"singleQuote","id":"a86611c7-ed27-4562-bfd6-c506bcadcca4","colorTheme":"light","isTransparent":false,"locale":"en","width":"350","symbol":"PYPL","realType":"embed"}</script></div><p><a data-analytics-id="inline-link" href="https://s205.q4cdn.com/875401827/files/doc_financials/2024/q4/PYPL-4Q-24-Earnings-Release.pdf" target="_blank"><u>In the three months ending December 31</u></a>, PayPal's revenue increased 4.2% year over year to $8.4 billion. Earnings per share (EPS) rose 4.4% from the year-ago period to $1.19.</p><p>"We set out at the beginning of 2024 to narrow our focus, improve execution, and reposition the business," said CEO Alex Chriss in a statement. "One year later, I'm proud that we've laid a strong foundation for long-term, profitable growth across the company's most important areas." Chriss cited improvements to branded checkout, peer-to-peer and Venmo as well as progress on the company's price-to-value strategy.</p><p>The results topped analysts' expectations. Wall Street was anticipating revenue of $8.3 billion and earnings of $1.12 per share, according to <a data-analytics-id="inline-link" href="https://www.cnbc.com/2025/02/04/paypal-pypl-q4-earnings.html" target="_blank"><u>CNBC</u></a>.</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_TZ5u6hI1_a7GJFMMh_div' class='future__jwplayer'><div id='botr_TZ5u6hI1_a7GJFMMh_div'></div></div></div></div><p>PayPal's total payment volume increased 6.8% to $437.8 billion in the quarter, driven by active accounts increasing 2.1% to 434 million and payment transactions per active account increasing 3% to 60.6 on a trailing-12-month basis.</p><p>For the first quarter, PayPal said it expects to achieve earnings in the range of $1.15 to $1.17 per share, ahead of analysts' expectations for earnings of $1.13 per share. For the full year, it expects earnings of $4.95 to $5.10 per share, also ahead of Wall Street's forecast for earnings of $4.90 per share.</p><p>"The strong momentum we've created sets us up well for 2025, which is about scaling adoption," Chriss said.</p><h2 id="is-paypal-stock-a-buy-sell-or-hold-2">Is PayPal stock a buy, sell or hold?</h2><p>During the 12 months leading up to its earnings announcement the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/the-best-large-cap-stocks-to-buy">large-cap stock</a> outperformed the S&P 500, rising 43.4% vs 22.5% for the index. And Wall Street remains bullish on the payments stock.</p><p>According to <a data-analytics-id="inline-link" href="https://www.spglobal.com/marketintelligence/en/"><u>S&P Global Market Intelligence</u></a>, the average analyst target price for PYPL stock is $96.25, representing upside of more than 17% from current levels. And the consensus recommendation is Buy.</p><p>Financial services firm Mizuho has an Outperform rating (equivalent to a Buy) and $100 price target on the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/best-financial-stocks-to-buy">financial stock</a>.</p><p>"Expectations likely ran ahead of themselves," said Mizuho analyst <a data-analytics-id="inline-link" href="https://www.linkedin.com/in/dan-dolev-02b63010/" target="_blank">Dan Dolev</a> in response to the market's initial reaction to PayPal's earnings report. "We are not concerned," Dolev added, noting that PayPal’s "branded button has been consistently growing in line with its major merchant partners."</p><p>In a recent research note, Dolev said his analysis "shows that PYPL is growing in line with/faster than the weighted-average, share-adjusted growth of its major partners."</p><p>The analyst noted that stability in its branded segment as well as new initiatives including PayPal Everywhere, gradual migration of merchants to an updated checkout experience and Fastlane "makes the stock an attractive candidate for further re-rating in 2025."</p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/investing/stocks/17494/next-week-earnings-calendar-stocks"><u>Earnings Calendar and Analysis for This Week</u></a></li><li><a href="https://www.kiplinger.com/investing/analysts-top-sandp-500-stocks-to-buy-now"><u>Analysts' Top S&P 500 Stocks to Buy Now</u></a></li><li><a href="https://www.kiplinger.com/investing/stocks/stocks-to-buy/604302/stock-picks-that-billionaires-love"><u>Stock Picks That Billionaires Love</u></a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/investing/stocks/paypal-stock-falls-despite-earnings-beat-strong-outlook</link> <description> <![CDATA[ The payments stock is suffering Tuesday under the weight of high expectations. Here's what you need to know. ]]> </description> <guid isPermaLink="false">8NxsWF7TMPzNmBejovrcde</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/mwePukR6S9R88wyafPGYWW.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Tue, 04 Feb 2025 16:38:30 +0000</pubDate> <category><![CDATA[Stocks]]></category> <category><![CDATA[Investing]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/mwePukR6S9R88wyafPGYWW.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[Bangkok, Thailand - July 27, 2019 : Apple iPhone 7 showing its screen with PayPal app icon.]]></media:text> <media:title type="plain"><![CDATA[Bangkok, Thailand - July 27, 2019 : Apple iPhone 7 showing its screen with PayPal app icon.]]></media:title> </media:content> </item> <item> <title><![CDATA[ Why Palantir Is the Best S&P 500 Stock Today ]]></title> <dc:content><![CDATA[ <p><strong>Palantir Technologies</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=PLTR" target="_blank">PLTR</a>) is the best S&P 500 stock Tuesday by a mile after the software provider beat top- and bottom-line expectations for its fourth quarter and issued a strong outlook for its first quarter and full <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/fiscal-year-definition-what-every-investor-should-know">fiscal year</a>. At last check, shares were up more than 20%.</p><div class="tradingview-widget-container"> <div class="tradingview-widget-container__widget"></div> <div class="tradingview-widget-copyright"><a href="https://www.tradingview.com/" rel="noopener nofollow" target="_blank"><span class="blue-text">Track all markets on TradingView</span></a></div> <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-single-quote.js" async>{"source":"singleQuote","id":"070167d9-05be-421b-9cd7-06ac3b6531f2","colorTheme":"light","isTransparent":false,"locale":"en","width":"350","symbol":"NASDAQ:PLTR","realType":"embed"}</script></div><p><a data-analytics-id="inline-link" href="https://investors.palantir.com/news-details/2025/Palantir-Reports-Q4-2024-Revenue-Growth-of-36-YY-U.S.-Revenue-Growth-of-52-YY-Issues-FY-2025-Revenue-Guidance-of-31-YY-Growth-Eviscerating-Consensus-Estimates/" target="_blank"><u>In the three months ending December 31</u></a>, Palantir's revenue increased 36% year over year to $827.5 million, boosted by 52% growth in the U.S. to $558 million. Its earnings per share (EPS) rose 75% from the year-ago period to 14 cents.</p><p>"Our business results continue to astound, demonstrating our deepening position at the center of the AI [artificial intelligence] revolution," said CEO Alex Karp in a statement. "Our early insights surrounding the commoditization of large language models have evolved from theory to fact."</p><p>The results beat analysts' expectations. Wall Street was anticipating revenue of $776 million and earnings of 11 cents per share, according to <a data-analytics-id="inline-link" href="https://www.cnbc.com/2025/02/03/palantir-pltr-q4-earnings-2024.html" target="_blank"><u>CNBC</u></a>.</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_TZ5u6hI1_a7GJFMMh_div' class='future__jwplayer'><div id='botr_TZ5u6hI1_a7GJFMMh_div'></div></div></div></div><p>For its first quarter, Palantir said it expects to achieve revenue in the range of $858 million to $862 million, ahead of the $799 million in revenue analysts are expecting. For all of 2025, the company anticipates revenue of $3.741 billion to $3.757 billion. This compares to analysts' estimates for revenue of $3.52 billion.</p><p>"We are still in the earliest stages, the beginning of the first act, of a revolution that will play out over years and decades," Karp wrote in his <a data-analytics-id="inline-link" href="https://www.palantir.com/q4-2024-letter/en/" target="_blank"><u>Letter to Shareholders</u></a>. "This is not an incremental advance or marginal acceleration of our business. This is a new phase. And the momentum we are seeing across sectors, both commercial and government, is unlike anything that has come before."</p><h2 id="is-palantir-stock-a-buy-sell-or-hold-2">Is Palantir stock a buy, sell or hold?</h2><p>Palantir's share price has surged fivefold in the past 12 months, yet Wall Street is on the sidelines when it comes to the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/the-best-large-cap-stocks-to-buy">large-cap stock</a>.</p><p>According to <a data-analytics-id="inline-link" href="https://www.spglobal.com/marketintelligence/en/" target="_blank"><u>S&P Global Market Intelligence</u></a>, the average analyst target price for PLTR stock is $73.90, representing a discount of nearly 30% to current levels. Additionally, the consensus recommendation is Hold.</p><p>Still, there are bulls to be found and financial services firm Wedbush is one of them. It maintained an Outperform rating (equivalent to a Buy) on the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/tech-stocks/604842/smart-artificial-intelligence-ai-stocks-to-buy">AI stock</a> after earnings and raised its price target to $120 from $90.</p><p>"There are some transformational <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/best-tech-stocks-to-buy">tech stocks</a> that come along every decade and change the landscape ... Palantir is one of them in our view and proved it for all the tech world to see last night," says Wedbush analyst <a data-analytics-id="inline-link" href="https://www.wedbush.com/analysts/daniel-ives/" target="_blank">Daniel Ives</a>. "Palantir is helping lead the AI Revolution into the use case phase as its AIP [Artificial Intelligence Platform] product moat is unmatched in our view."</p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/investing/stocks/17494/next-week-earnings-calendar-stocks"><u>Earnings Calendar and Analysis for This Week</u></a></li><li><u></u><a href="https://www.kiplinger.com/investing/stocks/the-deepseek-crash-what-it-means-for-ai-investors"><u>The DeepSeek Crash: What It Means for AI Investors</u></a></li><li><a href="https://www.kiplinger.com/investing/analysts-top-sandp-500-stocks-to-buy-now"><u>Analysts' Top S&P 500 Stocks to Buy Now</u></a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/investing/stocks/why-palantir-pltr-best-sp-500-stock-after-earnings</link> <description> <![CDATA[ Palantir stock is soaring Tuesday after the AI software giant beat Q4 expectations and gave a strong outlook for the year ahead. Here's what you should know. ]]> </description> <guid isPermaLink="false">FKp3VwMw2Yf4e8gXBEkCpT</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/Td4HX9PFWDz8KByTt2uZMM.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Tue, 04 Feb 2025 14:53:50 +0000</pubDate> <category><![CDATA[Stocks]]></category> <category><![CDATA[Investing]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/Td4HX9PFWDz8KByTt2uZMM.jpg"> <media:credit><![CDATA[Stefan Wermuth/Bloomberg via Getty Images]]></media:credit> <media:text><![CDATA[Palantir logo outside of 2024 World Economic Forum in Davos, Switzerland]]></media:text> <media:title type="plain"><![CDATA[Palantir logo outside of 2024 World Economic Forum in Davos, Switzerland]]></media:title> </media:content> </item> <item> <title><![CDATA[ What's Going on With New Jersey Property Tax Programs? ]]></title> <dc:content><![CDATA[ <p>For the first time, New Jersey has streamlined the process for property tax relief. Programs ANCHOR, Senior Freeze, and Stay NJ offer eligible homeowners <em>(and</em> <em>sometimes renters)</em> savings in property taxes. The combined application is called PAS-1.</p><p>“This new one-stop application will make it simpler for residents to apply for the property tax relief benefits they’re entitled to,” said State Treasurer Elizabeth Maher Muoio in a <a data-analytics-id="inline-link" href="https://www.nj.gov/treasury/news/2025/01292025.shtml#:~:text=The%20PAS%2D1%20combined%20application%20replaces%20the%20former%20Senior%20Freeze,property%20tax%20relief%20program%2C%20StayNJ." target="_blank"><u>press release</u></a>.</p><p>Last year, over $2.2 billion in property tax relief was paid out, and that number is expected to increase with the new program, Stay NJ.</p><p>So how do you apply for New Jersey property tax relief? And what do the PAS-1 application and Stay NJ have to offer? Read on.</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_hEB3ir3W_a7GJFMMh_div' class='future__jwplayer'><div id='botr_hEB3ir3W_a7GJFMMh_div'></div></div></div></div><h2 id="nj-tax-relief-for-senior-freeze-and-anchor-programs-2">NJ tax relief for ‘Senior Freeze’ and ANCHOR programs</h2><p>New Jersey’s “Senior Freeze” and ANCHOR programs are open for eligible residents, including those 65 or older, homeowners with disabilities, and mobile homeowners.</p><p>While the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/new-jersey-senior-freeze-program-checks"><u>NJ “Senior Freeze”</u></a> reimburses eligible <a data-analytics-id="inline-link" href="https://www.kiplinger.com/state-by-state-guide-taxes/new-jersey"><u>New Jersey</u></a> residents for property tax increases, ANCHOR is a tax rebate paid to New Jersey-eligible residents. Both programs calculate how much you receive based on income.</p><p>For the tax year 2024, there are also new eligibility standards for <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/new-jersey-anchor-program-payments"><u>NJ ANCHOR</u></a> and “Senior Freeze” programs:</p><ul><li>Eligible ANCHOR homeowners will no longer be required to have an Identification Number and PIN to file for benefits.</li><li>“Senior Freeze” recipients must have had $168,268 or less in total annual income to qualify.</li></ul><p>Also, “Senior Freeze” recipients are no longer required to provide proof of property taxes paid when applying, which may make this year’s application a bit easier for many people.</p><h2 id="new-jersey-stay-nj-application-2">New Jersey STAY NJ application</h2><p><a data-analytics-id="inline-link" href="https://www.nj.gov/treasury/staynj/" target="_blank"><u>Stay NJ</u></a> is a new property tax relief program designed to help eligible New Jersey homeowners.</p><p>Here are some more details about how to save on property taxes with Stay NJ:</p><ul><li>Eligible homeowners must be 65 and older to qualify (mobile homeowners are not eligible).</li><li>You must have owned and lived in your home for 12 months of the tax year.</li><li>Your income must be below $500,000.</li><li>The program reimburses you for 50% on up to $13,000 of your property tax bill (said in another way, the benefit cap is $6,500).</li></ul><p><strong>The deadline to file is October 31, 2025. </strong>Eligible recipients apply via the PAS-1 application. Stay NJ benefits are calculated after ANCHOR and Freeze benefits are determined.</p><h2 id="pas-1-how-to-apply-for-the-nj-property-tax-freeze-program-2">PAS-1: How to apply for the NJ property tax freeze program</h2><p>The new process for applying to New Jersey’s property tax relief programs is to fill out a <a data-analytics-id="inline-link" href="https://www.nj.gov/treasury/taxation/propertyreliefforms.shtml" target="_blank"><u>“PAS-1” application</u></a>. This replaces the separate applications for “Senior Freeze” and ANCHOR programs for many applicants <em>(more on that below). </em>PAS-1 also introduces the new Stay NJ program.</p><p>Here are some tips for how you may apply for property tax relief with PAS-1:</p><ul><li>The state will mail out application information for PAS-1 by early March 2025.</li><li>Eligible applicants file a single PAS-1 application for all property tax relief (ANCHOR, “Senior Freeze,” Stay NJ).</li><li>Applications can be mailed in.</li><li>Or, applicants can <a href="https://www.nj.gov/treasury/taxation/relief.shtml" target="_blank"><u>file online</u></a> starting mid-February.</li><li>The deadline to apply for PAS-1 is October 31, 2025.</li></ul><p><strong>However, if</strong><em><strong> </strong></em><strong>you are under 65 and not receiving Social Security Disability benefits, do not complete PAS-1. </strong>You will need to apply for ANCHOR in the summer of 2025.</p><h2 id="do-i-need-to-file-a-pas-1-if-i-ve-completed-a-separate-application-before-2">Do I need to file a PAS-1 if I’ve completed a separate application before?</h2><p>Some homeowners and renters may be confused about the New Jersey property tax relief process. Below are some helpful tips for PAS-1 applicants:</p><ul><li>If you have received ANCHOR benefits in the past, you will receive a letter this summer confirming automatic eligibility. Typically, this means you do not need to file a new application to receive ANCHOR.</li><li>But if you haven’t filled out an ANCHOR application before, the state may mail you an application to apply.</li><li><strong>If you meet eligibility requirements for the other property tax relief programs, you should fill out a new PAS-1 application. </strong>This will help you receive the maximum benefit for property tax relief (“Senior Freeze,” ANCHOR, and Stay NJ).</li></ul><p><strong>Payments</strong> <strong>related to PAS-1 are expected to roll out as early as July 2025. </strong>A letter from the Division of Taxation will be sent out in late 2025 detailing the property tax relief benefits amounts you received for each program.</p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/taxes/new-jersey-anchor-program-payments"><u>When are NJ ANCHOR Benefits Going Out?</u></a></li><li><a href="https://www.kiplinger.com/taxes/new-jersey-gas-tax-increase-what-to-know"><u>New Jersey Gas Tax Increase: What to Know</u></a></li><li><a href="https://www.kiplinger.com/taxes/new-jersey-senior-freeze-program-checks"><u>What is the NJ ‘Senior Freeze’ Property Tax Program?</u></a></li><li><a href="https://www.kiplinger.com/taxes/nj-tax-on-electric-vehicles"><u>New Jersey Ends Sales Tax Break on EVs</u></a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/taxes/new-jersey-property-tax-programs</link> <description> <![CDATA[ ANCHOR and ‘Senior Freeze’ just got a refresh, and there’s a new program: Stay NJ. Learn how to save on New Jersey property taxes. ]]> </description> <guid isPermaLink="false">XfQUDSpAouhWwprCaPJpwC</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/VHb4r9CFo7jEUcMfpf3Vj7.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Tue, 04 Feb 2025 14:37:00 +0000</pubDate> <category><![CDATA[taxes]]></category> <category><![CDATA[State-tax]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/VHb4r9CFo7jEUcMfpf3Vj7.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[orange house on a seesaw with a pile of dollar bill signs on the other side weighing it down]]></media:text> <media:title type="plain"><![CDATA[orange house on a seesaw with a pile of dollar bill signs on the other side weighing it down]]></media:title> </media:content> </item> <item> <title><![CDATA[ Another Down Year for Agriculture ]]></title> <dc:content><![CDATA[ <p><em>To help you understand what's going on in the economy and what we expect to happen in the future, our highly experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (</em><a data-analytics-id="inline-link" href="https://subscribe.kiplinger.com/servlet/OrdersGateway?cds_mag_code=KWP&cds_page_id=268559&cds_response_key=I3ZWZ001"><em>Get a free issue of The Kiplinger Letter or subscribe</em></a><em>). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest…</em></p><p>2025 will be another down year for farmers. Farm income will decline for the third year in a row, with lower prices for crops and poultry outweighing higher livestock prices and a moderation in production expenses, such as fertilizer, and more. Plus, the industry faces numerous risks, particularly in the areas of trade and immigration.</p><p><strong>1. Farm income</strong><br>Net farm income will fall to $129 billion in 2025, down 6% from last year and 29% from 2022’s record of $182 billion. The main culprit: A decline in cash receipts for major staple crops, particularly for oilseeds like soybeans (down 6.9% from last year and 17.8% from 2022). Cheaper grains like corn are good for livestock producers, whose herds have shrunk in recent years because of higher costs. Livestock cash receipts will fall 2.3% from last year, but are actually up compared with 2022 levels.</p><p>Production expenses will also decline, with farmers paying less for key inputs like fertilizer and pesticides, and interest rates having eased. That will help take some of the sting off.</p><p>Expect the U.S. agricultural <a data-analytics-id="inline-link" href="https://www.kiplinger.com/economic-forecasts/trade-deficit">trade deficit</a> to continue growing this year, surpassing $45.5 billion, mainly due to weaker prices and shipments of soybeans, for many years the largest U.S. agricultural export by value ($27.7 billion in 2023).</p><p><strong>2. Trade tariffs</strong><br>The Trump administration has trade beefs with China, Canada and Mexico, the three largest destinations for U.S. agricultural exports. The new president has threatened to impose <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/prices-to-spike-if-trump-levies-canada-mexico-tariffs">tariffs on all three countries</a> as soon as next month, raising the cost of imports and inviting retaliatory duties on U.S. farm products.</p><p>Officials and farmers hope that the tariffs prove an effective negotiating tool, as was the case in a recent <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/trumps-tariff-tiff-with-colombia-a-sign-of-whats-to-come">dustup between the U.S. and Colombia</a> over immigration. But Trump also seems willing to impose duties while negotiations are under way.</p><p><strong>3. Immigration</strong><br>The president’s <a data-analytics-id="inline-link" href="https://www.kiplinger.com/politics/us-economic-growth-hinges-on-immigrants">immigration</a> crackdown could also have consequences for agriculture. Nearly 13% of the industry’s workforce is undocumented, second only to construction, with agricultural visa programs failing to keep up with demand. As with trade, Trump seems serious about following through on his pledges, unleashing a flurry of immigration-related executive orders in his first days on the job.</p><p><strong>4. Bird flu</strong><br>Another wild card: The ongoing outbreak of avian flu, which has affected more than 138 million commercial birds and has started spreading to humans. Even if the current outbreak doesn’t become a more worrisome pandemic, it will still have a pronounced effect on <a data-analytics-id="inline-link" href="https://www.kiplinger.com/economic-forecasts/retail-sales">consumer pocketbooks</a>.</p><p>Grocery prices are expected to increase by 1.3% this year, according to the <a data-analytics-id="inline-link" href="https://www.ers.usda.gov/data-products/food-price-outlook/summary-findings" target="_blank">Department of Agriculture</a>, compared with 1.2% last year and 11.4% in 2022. Egg prices will buck the trend, growing by 20.3%, and representing yet another upside risk to U.S. grocery bills.</p><p><em>This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money.</em><a data-analytics-id="inline-link" href="https://subscribe.kiplinger.com/servlet/OrdersGateway?cds_mag_code=KWP&cds_page_id=268559&cds_response_key=I3ZWZ001&_ga=2.192777900.740702480.1683021336-2127508840.1666781584"> <em>Subscribe to The Kiplinger Letter</em></a><em>.</em></p><h3 class="article-body__section" id="section-related-stories"><span>Related stories</span></h3><ul><li><a href="https://www.kiplinger.com/politics/what-trump-will-do-next">What Trump Will Do Next</a></li><li><a href="https://www.kiplinger.com/taxes/how-tariffs-impact-your-wallet">Tariffs: What They Are and How They Impact Your Wallet</a></li><li><a href="https://www.kiplinger.com/taxes/which-states-will-bear-the-brunt-of-trump-tariff-plan">Trump Tariff Plan: Which States Would Be Hit the Hardest?</a></li><li><a href="https://www.kiplinger.com/investing/stocks/should-you-buy-food-stocks">Should You Buy Food Stocks? We All Gotta Eat</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/business/another-down-year-for-agriculture</link> <description> <![CDATA[ Farmers brace for falling incomes, widening trade deficits ]]> </description> <guid isPermaLink="false">J7Yh38jSujAiNJkf7Bvp38</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/oxYurSJUUB3FJVPthgFR5H.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Tue, 04 Feb 2025 13:50:00 +0000</pubDate> <category><![CDATA[business]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/oxYurSJUUB3FJVPthgFR5H.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[Combines at work at sunset during the wheat harvest, Shields &amp; Sons Farming in Goodland, Kansas ]]></media:text> <media:title type="plain"><![CDATA[Combines at work at sunset during the wheat harvest, Shields &amp; Sons Farming in Goodland, Kansas ]]></media:title> </media:content> </item> <item> <title><![CDATA[ Contingency Planning for Your Personal Budget: Why It Matters and How to Do It Right ]]></title> <dc:content><![CDATA[ <p>When I first started working on my personal budget, I quickly realized how important it was to prepare for unexpected events. Life has a way of surprising us, and financial preparedness can make the difference between staying afloat and sinking into debt. That’s where contingency planning comes into play.</p><p>Contingency planning is about creating a financial safety net. It's a proactive approach to <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/financial-tips-to-help-you-plan-for-the-unexpected">managing unexpected expenses</a>, ensuring you're not caught off guard. Here's how I go about building a solid contingency plan within my budget — and how you can do the same.</p><h2 id="start-with-an-emergency-fund-2">Start with an emergency fund</h2><p>The cornerstone of any good contingency plan is an <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/steps-to-build-an-emergency-fund">emergency fund</a>. I made it a priority to build a fund that could cover three to six months' worth of living expenses. This fund acts as a cushion for unforeseen circumstances such as medical emergencies, job loss or major car repairs.</p><p>To start, I automated small contributions from each paycheck into a <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/banking/what-is-a-high-yield-savings-account">high-yield savings account</a>. It was easier than I thought to build momentum by starting small and increasing contributions over time. If you haven’t started an emergency fund yet, begin with whatever you can afford — even $20 a week adds up over time.</p><h2 id="identify-potential-risks-2">Identify potential risks</h2><p>Understanding what you’re planning for is key. I took some time to identify potential risks in my life — things like medical issues, job instability and home repairs. Once I identified those risks, I could make better decisions about how much to set aside and what kinds of insurance might help cover them.</p><p>I suggest making a list of the top five financial risks you might face. This helps prioritize where your contingency funds should go and ensures you’re not underprepared for high-impact situations.</p><h2 id="create-budget-categories-for-unexpected-expenses-2">Create budget categories for unexpected expenses</h2><p>When I first built my budget, I noticed that I hadn’t accounted for those "surprise" costs like last-minute travel or appliance breakdowns. So, I added specific categories for unexpected expenses. Now I have a line item for "unforeseen costs," which I contribute to monthly.</p><p>If you’re using a <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/how-to-save-money/best-budgeting-apps">budgeting app</a>, you can create a flexible category labeled "Miscellaneous" or "Contingency." Allocating even a small portion of your income each month can prevent financial strain later.</p><h2 id="diversify-your-savings-2">Diversify your savings</h2><p>While having a primary emergency fund is essential, I also set aside money for smaller, predictable contingencies. For example, I have a separate savings account for home maintenance and another for personal development like courses or certifications.</p><p>You can do the same by creating multiple savings buckets for different goals or emergencies. This way, you don’t have to tap into your core emergency fund for smaller, planned expenses.</p><h2 id="consider-insurance-as-a-contingency-tool-2">Consider insurance as a contingency tool</h2><p>Insurance plays a crucial role in my contingency planning. I reviewed my health, renters and <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/all-about-types-of-auto-insurance-coverage">auto insurance</a> policies to ensure they covered the major risks I had identified earlier. Having adequate coverage gives me peace of mind, knowing I’m protected from catastrophic expenses.</p><p>If you’re reviewing your insurance, ensure you understand your coverage limits and deductibles. Adjust policies where needed to <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/when-it-comes-to-insurance-how-much-risk-can-you-take">align with your risk profile</a> and budget capacity.</p><hr><p><em><strong>Kiplinger Advisor Collective is the premier criteria-based professional organization for personal finance advisors, managers, and executives. </strong></em><a data-analytics-id="inline-link" href="https://advisor.kiplinger.com/learn-more?utm_campaign=Member%20Articles&utm_source=kiplinger&utm_medium=referral&utm_term=in-article" target="_blank"><u><em><strong>Learn more ></strong></em></u></a></p><hr><h2 id="reduce-debt-to-minimize-risk-2">Reduce debt to minimize risk</h2><p>Debt can be a significant hurdle in contingency planning. Early in my budgeting journey, I made it a priority to <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/credit-cards/how-to-pay-off-credit-card-debt">reduce high-interest debt</a>. By doing so, I freed up more of my income for savings and emergencies.</p><p>If you’re dealing with debt, consider strategies such as the debt <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/2025-financial-new-years-resolutions#:~:text=No%20matter%20what,lowest%20to%20highest.">snowball or avalanche methods</a>. Reducing debt not only helps your financial health but also reduces the stress of managing multiple obligations in an emergency.</p><h2 id="plan-for-income-disruptions-2">Plan for income disruptions</h2><p>One of my biggest fears was losing my primary source of income. To prepare for this, I created a backup plan, including a list of side gigs and freelance opportunities that could provide supplemental income.</p><p>Consider developing a <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/7-online-side-hustles-worth-your-time">side hustle</a> or learning new skills that can keep you financially secure if your primary job is impacted. Having a backup plan can significantly reduce stress during uncertain times.</p><h2 id="review-and-adjust-your-contingency-plan-regularly-2">Review and adjust your contingency plan regularly</h2><p>I’ve learned that <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/one-time-financial-plan-valuable-or-dangerous">a contingency plan isn’t a "set it and forget it"</a> part of budgeting. Life changes, and so should your plan. I review my budget and contingency funds quarterly to ensure they still align with my financial goals and current risks.</p><p>I suggest setting a reminder to review your plan periodically. Adjust savings goals, insurance coverage and expense categories as needed to stay prepared.</p><h2 id="final-thoughts-2">Final thoughts</h2><p>Contingency planning has become a crucial part of my personal budgeting strategy. It gives me confidence knowing that I’m prepared for life’s surprises. Whether you’re just starting your budgeting journey or refining an existing plan, taking proactive steps can protect your financial future.</p><p>Start small, stay consistent and make contingency planning a habit. Your future self will thank you for the peace of mind and financial security you've created.</p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/article/saving/t007-c032-s014-how-to-budget.html">How to Budget</a></li><li><a href="https://www.kiplinger.com/personal-finance/604267/budgeting-basics-for-wealth-health-and-happiness">Budgeting Basics for Wealth, Health and Happiness</a></li><li><a href="https://www.kiplinger.com/personal-finance/personal-debt-management-tips">Three Tips for Personal Debt Management</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/kiplinger-advisor-collective/contingency-planning-for-your-personal-budget-how-to-do-it-right</link> <description> <![CDATA[ Contingency planning is about creating a financial safety net. It's a proactive approach to managing unexpected expenses, ensuring you're not caught off guard. ]]> </description> <guid isPermaLink="false">TukZMEEYDyd6zp74r8EDBX</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/XL4jobWQRvzRq82NwLxTKL.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Tue, 04 Feb 2025 13:15:00 +0000</pubDate> <category><![CDATA[Kiplinger Advisor Collective]]></category> <category><![CDATA[Personal-finance]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/XL4jobWQRvzRq82NwLxTKL.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[A couple look at paperwork and a laptop together while sitting on a bed.]]></media:text> <media:title type="plain"><![CDATA[A couple look at paperwork and a laptop together while sitting on a bed.]]></media:title> </media:content> </item> <item> <title><![CDATA[ Here’s What You Should Know About Spirit Airlines’ New Passenger Dress Code ]]></title> <dc:content><![CDATA[ <p>Spirit Airlines recently announced a stricter dress code for its passengers. Following a couple of recent incidents in which Spirit staff barred passengers from boarding for wearing crop tops or hoodies with swear words, the airline chose to clarify its dress code and provide additional training to staff.</p><p>According to the updated <a data-analytics-id="inline-link" href="https://content.spirit.com/Shared/en-us/Documents/Contract_of_Carriage.pdf" target="_blank"><u>contract of carriage</u></a>, passengers may not be allowed to board if they are barefoot, “inadequately clothed” or have clothing or tattoos that are “lewd, obscene or offensive.” If a passenger is barred from the plane for violating the new dress code, the contract states that they aren’t entitled to a <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/spending/winter-storm-ruining-your-holiday-travel-plans-heres-how-to-get-a-flight-refund"><u>flight refund</u></a>.</p><p>This dress code may be new for Spirit, but the rules are pretty standard for the industry. You’ll find similar restrictions in the fine print for other U.S. airlines. Even if you have no plans to fly with Spirit, it’s worth brushing up on the rules to make sure you don’t run into any issues at the gate.</p> <blockquote class="tiktok-embed" cite="https://www.tiktok.com/@nbcchicago/video/7463616256147524910" data-video-id="7463616256147524910" style="max-width: 605px; min-width: 325px;"> <section> <a target="_blank" title="@nbcchicago" href="https://www.tiktok.com/@nbcchicago">@nbcchicago</a> <p></p><a target="_blank" title="♬ original sound - NBC Chicago" href="https://www.tiktok.com/music/original-sound-NBC-Chicago-7463616411823508266">♬ original sound - NBC Chicago</a></section> </blockquote> <h2 id="spirit-s-new-dress-code-is-similar-to-existing-rules-on-other-airlines-2">Spirit’s new dress code is similar to existing rules on other airlines</h2><p>The updated guidelines on Spirit are in line with the rules already in place on other airlines. Delta, United and American Airlines all refuse to board passengers who are barefoot, for example. All three also include some guidelines around passenger appearance.</p><p>In fact, Spirit’s new dress code is surprisingly clear compared to other major carriers. While Spirit includes detailed examples of what constitutes inadequate clothing, the rules for other airlines are decidedly vague.</p><p>American Airlines simply <a data-analytics-id="inline-link" href="https://www.aa.com/i18n/customer-service/support/conditions-of-carriage.jsp#passengerresponsibilities" target="_blank"><u>states</u></a> that passengers must “dress appropriately” while <a data-analytics-id="inline-link" href="https://www.united.com/en/us/fly/contract-of-carriage.html" target="_blank"><u>United’s dress code</u></a> bans passengers who are “not properly clothed.” Meanwhile, <a data-analytics-id="inline-link" href="https://www.delta.com/content/dam/delta-www/pdfs/dl-dgr-master-22jan25.pdf" target="_blank"><u>Delta’s dress code</u></a> includes a broad ban on attire that “creates an unreasonable risk of offense or annoyance to other passengers.”</p> <h2 id="what-fliers-need-to-know-to-make-sure-they-can-board-their-next-flight-2">What fliers need to know to make sure they can board their next flight </h2><p>Whether you’re flying with Spirit or another airline, it’s worth checking out the contract of carriage – sometimes called “conditions of carriage” – to see what the airline’s dress code is. This is especially important for those flying standby, <a data-analytics-id="inline-link" href="https://www.kiplinger.com/slideshow/spending/t061-s001-what-you-need-to-know-about-travel-rewards-program/index.html"><u>travel rewards program</u></a> members or those with <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/travel/why-im-not-chasing-airline-status-this-year"><u>airline status</u></a> using a companion pass or enjoying a free upgrade. These non-revenue passengers – fliers using free or discounted tickets – are sometimes held to stricter dress code enforcement than other passengers.</p><p>If the dress code language is vague, err on the side of caution, because enforcement of the dress code falls on the staff. For travelers, this means that whether or not a travel outfit is deemed appropriate depends on the subjective interpretation of these often vague rules by the agent at the gate that day.</p><p>This has led to some controversial incidents, including a Delta passenger who was <a data-analytics-id="inline-link" href="https://www.news10.com/news/national/delta-crew-member-reportedly-made-marine-remove-threatening-shirt-what-is-the-dress-code-on-planes/" target="_blank"><u>escorted off a plane</u></a> last October for wearing a shirt that read “Do not give in to the war within. End veteran suicide.” Similarly, United came under fire for <a data-analytics-id="inline-link" href="https://www.npr.org/sections/thetwo-way/2017/03/27/521649877/outrage-explanations-after-united-bans-girls-from-flight-for-wearing-leggings" target="_blank"><u>refusing to board</u></a> two teens who were wearing leggings.</p> <h2 id="the-bottom-line-2">The bottom line</h2><p>Your go-to, <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/travel/what-to-take-on-a-plane-for-a-comfortable-trip">comfy travel outfit</a> might not seem like a dress code violation to you. But all it takes is one staff member deciding the outfit is non-compliant to keep you from flying.</p><p>If you do get stopped at the gate, make sure you have a sweater or pair of sweatpants in a tote bag or your carry-on that you can throw on. Covering up will allow you to make your flight, and you can still file a complaint with the airline or with the <a data-analytics-id="inline-link" href="https://www.transportation.gov/airconsumer/file-consumer-complaint"><u>Department of Transportation</u></a> if you disagree with the decision.</p><h3 class="article-body__section" id="section-related-content"><span>Related content</span></h3><ul><li><a href="https://www.kiplinger.com/personal-finance/travel/how-to-get-money-back-vacation-abroad-goes-awry"><u>How You Can Get Your Money Back When a Vacation Abroad Goes Awry</u></a></li><li><a href="https://www.kiplinger.com/personal-finance/travel/why-im-not-chasing-airline-status-this-year"><u>Why I'm Not Chasing Airline Status This Year</u></a></li><li><a href="https://www.kiplinger.com/personal-finance/travel/what-to-take-on-a-plane-for-a-comfortable-trip"><u>What To Take on a Plane for a More Comfortable Trip</u></a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/personal-finance/travel/what-you-should-know-about-spirit-airlines-new-passenger-dress-code</link> <description> <![CDATA[ Spirit Airlines’ new passenger dress code asks fliers to cover up, wear shoes and conceal offensive attire or tattoos. ]]> </description> <guid isPermaLink="false">wPAeYmUYNhgho5amYSGEVo</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/V6XoC7EGLUqCwisSiUrV8S.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Tue, 04 Feb 2025 12:00:00 +0000</pubDate> <category><![CDATA[travel]]></category> <category><![CDATA[Personal-finance]]></category> <category><![CDATA[Spending]]></category> <category><![CDATA[Leisure]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/V6XoC7EGLUqCwisSiUrV8S.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[travelers checking in at Spirit Airlines counter]]></media:text> <media:title type="plain"><![CDATA[travelers checking in at Spirit Airlines counter]]></media:title> </media:content> </item> <item> <title><![CDATA[ The New JetBlue Premier Card Is Packed With Perks – But Is It Worth the Annual Fee? ]]></title> <dc:content><![CDATA[ <p>JetBlue kicked off the year by launching a new elite credit card with perks that rival some of the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/credit-cards/605269/the-best-travel-rewards-credit-cards"><u>best travel rewards cards</u></a> on the market today. The JetBlue Premier World Elite Mastercard offers cardholders exclusive perks that you can’t get with any of the airline’s other cards. That includes complimentary lounge access, a variety of statement credits and new ways to earn <a data-analytics-id="inline-link" href="https://www.jetblue.com/trueblue" target="_blank"><u>TrueBlue points</u></a>.</p><p>As part of the launch, JetBlue is also offering a generous bonus offer of 70,000 TrueBlue points and five tiles to help you reach Mosaic elite status faster this year. To qualify for the intro offer, you need to spend $5,000 on your new card and pay the annual fee within the first 90 days.</p><p>With TrueBlue points valued at an estimated 1.3 cents each, that sign-up bonus is worth over $900. Since TrueBlue loyalty program members earn one tile for every $100 on JetBlue flights or vacation packages, that five tile bonus will put you $500 closer to Mosaic elite status.</p><p>While the perks and bonus offer on the new JetBlue Premier Card look great, it’s worth noting that the airline’s newest card also comes with a $499 annual fee. That’s $400 more than its JetBlue Plus and JetBlue Business cards. With that dramatically higher fee, travelers need to do the math to figure out if the perks are really worth it.</p> <h2 id="the-new-jetblue-premier-card-offers-exciting-new-perks-for-travelers-2">The new JetBlue Premier Card offers exciting new perks for travelers</h2><p>The latest addition to JetBlue’s credit card lineup comes with a slate of brand-new perks not offered on any of the airline’s lower-tier cards. One of the most noteworthy new perks is <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/travel/how-to-get-access-to-airport-lounges"><u>airport lounge access</u></a>. Premier cardholders can get Priority Pass Select, a program that grants access to over 1,500 airport lounges around the globe. You’ll also get access to JetBlue’s new airport lounges in New York and Boston when they open in late 2025 and early 2026.</p><p>Lounge access aside, the new JetBlue Premier Card also comes with a $120 statement credit on Global Entry or TSA PreCheck so cardholders can get to their favorite <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/travel/best-us-airport-lounges-for-your-money"><u>airport lounges</u></a> faster. Travelers can also earn up to $300 in statement credits on <a data-analytics-id="inline-link" href="https://www.paisly.com/" target="_blank"><u>Paisly</u></a> purchases each year. The travel booking platform allows you to book cars, hotels, vacation packages and more. Cardholders earn $50 in credits for each purchase of $250 or more on the travel booking site. So you would need to make six separate qualifying purchases to maximize that benefit.</p><h2 id="earn-trueblue-points-faster-with-the-jetblue-premier-card-2">Earn TrueBlue Points faster with the JetBlue Premier Card</h2><p>For travelers who care more about racking up points toward free flights than lounge access, the elite credit card offers more ways to earn and redeem TrueBlue points. In addition to the 6x points JetBlue Plus and Business card holders earn on JetBlue purchases, Premier cardholders will also earn 6x points on Paisly purchases. That means you can enjoy that 6x point bonus on your hotel booking, car rental and other trip-related purchases rather than just your flight.</p><p>With the new card, travelers also have the option to redeem TrueBlue points for statement credits, effectively turning them into a cashback rewards program. While that perk is available on the JetBlue Plus card, there’s a $1,000 credit cap per year. The Premier Card has no limit.</p> <h2 id="jetblue-s-499-premier-card-a-good-deal-or-too-expensive-2">JetBlue’s $499 Premier card – a good deal or too expensive?</h2><p>While the new perks are nice, the JetBlue Premier Card also carries a $499 annual fee. That seems exorbitant when you consider that the credit card one tier down only costs $99 per year. The JetBlue Plus Card has many overlapping benefits with the Premier Card, including a 5,000-point bonus every year, a free checked bag and the ability to earn 6x points on JetBlue purchases.</p><p>The key benefits exclusive to the Premier card include the $120 Global Entry credit, up to $300 Paisly credit, the Priority Pass Select membership and the ability to earn 6x points on Paisly purchases.</p><p>For travelers who would make use of those perks, the value would be more than enough to offset the $499 annual fee. However, for less frequent fliers or travelers who aren’t interested in lounge access, sticking with one of the lower-tier cards may make more sense.</p><h3 class="article-body__section" id="section-related-content"><span>Related content</span></h3><ul><li><a href="https://www.kiplinger.com/personal-finance/travel-credit-cards/best-airline-credit-card-bonuses-with-a-free-ticket"><u>Best Airline Credit Card Bonuses With a Free Ticket</u></a></li><li><a href="https://www.kiplinger.com/personal-finance/credit-cards/605269/the-best-travel-rewards-credit-cards"><u>Best Travel Rewards Credit Cards</u></a></li><li><a href="https://www.kiplinger.com/personal-finance/credit-cards/604723/using-a-credit-card-travel-portal"><u>Should You Use a Credit Card Travel Portal?</u></a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/personal-finance/credit-cards/the-new-jetblue-premier-card-is-packed-with-perks-but-is-it-worth-the-annual-fee</link> <description> <![CDATA[ Travelers can now apply for the JetBlue Premier Card, the airline’s new elite card packed with perks. Find out how it compares to other, more affordable JetBlue cards. ]]> </description> <guid isPermaLink="false">h8RoY2vgA3XsHu8K5HjzRU</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/6TqQGfThPxoeDLrdZL6gkd.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Tue, 04 Feb 2025 11:00:00 +0000</pubDate> <category><![CDATA[Credit-cards]]></category> <category><![CDATA[Travel-credit-cards]]></category> <category><![CDATA[Personal-finance]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/6TqQGfThPxoeDLrdZL6gkd.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[An airplane at sunrise flying over the clouds, away from the camera]]></media:text> <media:title type="plain"><![CDATA[An airplane at sunrise flying over the clouds, away from the camera]]></media:title> </media:content> </item> <item> <title><![CDATA[ Retirement Income Planning for Unfunded Health Care Costs ]]></title> <dc:content><![CDATA[ <p>At lunch recently, a friend said he was about to meet with his financial adviser, who had prepared a 20-page report that, he told me, “will wrap up everything” about his retirement. I asked whether it would address long-term care or similar needs. He wasn’t sure.</p><p>I followed up: “Do you and your wife have LTC insurance?” Nope. He didn’t qualify when they applied years back.</p><p>So, the 20-page report will not cover “everything” my friend needs to consider for retirement.</p><p>Expenses for health care are often referred to as <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/retirement-income-plan-to-cover-unplanned-expenses">unplanned expenses</a>, but actually they are expected; at least 70% of us will experience a long-term health event in our later years. So, I refer to these expenses as planned but not currently funded. The best plans account for them in retirement. (Unplanned expenses are what thousands of Los Angeles residents are experiencing now with the wildfires.)</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_KQr60TxC_a7GJFMMh_div' class='future__jwplayer'><div id='botr_KQr60TxC_a7GJFMMh_div'></div></div></div></div><h2 id="what-the-usual-practice-is-2">What the usual practice is</h2><p>Sometimes I question ChatGPT to round up current options and possible alternatives to big-picture questions. This time, I asked for a survey of retirement planning and withdrawal strategies.</p><p>According to AI, most retirement planning software tends to focus on planned withdrawals, such as those based on living expenses, income replacement or longevity protection. AI responded, as I expected, that “not currently funded” expenses, particularly those related to health crises, <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/home-based-planning-and-long-term-care-costs">long-term care</a>, or other unexpected family needs, are not actively incorporated in these models.</p><p>I also regularly search the usual sources of financial advice. A<em> </em>recent <a data-analytics-id="inline-link" href="https://www.nytimes.com/2024/12/28/business/retirement-accounts-withdrawals-ira-401k.html" target="_blank">article in the <em>New York Times</em></a> pointed out that your working years, when you build up savings, aren’t like your retirement years, when you need a plan to spend your savings without running out.</p><p>The article suggested setting aside an <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/steps-to-build-an-emergency-fund">emergency fund</a> that could cover “surprise” health care and other costs. (“Surprise” is another label for “life risks,” which you know will likely happen but not “when and how much they’ll cost.”)</p><p>If you use the emergency fund approach for LTC costs, however, you could be setting aside 40% to 50% of your savings. A better solution might be a funding design that sets aside a smaller liquid fund and establishes a future source of liquidity that could pay these costs. Most retirement plans don’t consider this.</p><h2 id="three-strategies-for-covering-unplanned-expenses-2">Three strategies for covering unplanned expenses</h2><p>The investor we often use as an example is 70-year-old Sally, who has saved $1 million in her <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/iras/ira-rollover-rules-tax-letter">rollover IRA</a> and owns her home, worth $1 million without a mortgage. She read one of my earlier articles, <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/transform-your-retirement-plan-with-hecm-and-qlac">Transform Your Retirement Plan With This Powerful Combo</a>, which describes a combination of a HECM and a <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/for-longevity-protection-consider-a-qlac">QLAC</a>. (If you’re interested in getting a quote, you can use the <a data-analytics-id="inline-link" href="https://www.go2income.com/qlac/calculatorQLAC0.html" target="_blank">QLAC Calculator</a>.)</p><p>We looked at three ways for Sally’s Go2Income retirement plan to cover a large expense in retirement. In this case, the expense is assumed to be $100,000, to pay for Sally’s long-term health care costs at age 85. (She doesn’t have <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/long-term-care-insurance/things-you-should-know-about-long-term-care-insurance">long-term care insurance</a>.) In one option, the money could come from her IRA account. Under the second, the source is a line of credit from a home equity conversion mortgage, or HECM. And the third is a combination that takes 50% from each. What we found is that the final two strategies work and produce very similar results at age 95 — $2.4 million in legacy and $1.7 million in liquidity. Circumstances could call for more expenses, so a 50/50 strategy may work best.</p><p>With these approaches, Sally is not stashing her retirement money in one or two emergency accounts at age 70 and then hoping for the best. Planning for all future events requires consideration of alternatives and possible adjustments along the way. Here are some opportunities:</p><ul><li>The costs for both an emergency health event and long-term care may be deductible, but the withdrawal from an IRA is creating a taxable event, while the loan against the HECM line of credit is not taxable. This could be significant, but it depends on the personal tax situation.</li><li>Another issue: You’re not subject to <a href="https://www.kiplinger.com/investing/market-volatility-avoid-common-investing-pitfalls">market volatility</a> when borrowing from the HECM. To reduce that risk, an allocation between the two sources, however, may be a smart strategy.</li><li>If you expect a multi-year health event, and think you might need $400,000 for four years of expenses instead of just $100,000 for one year, don’t take the full $400,000 out of your IRA, but invest a portion — say, half — more conservatively within the account. This will save a considerable amount in taxes. A HECM can provide the other $200,000.</li></ul><p>When you consider all your assets, a <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/a-retirement-income-plan-that-covers-caregiver-costs">plan for retirement income</a> can and should include a strategy to fund both planned expenses and unfunded costs like health and long-term care — at the same time that you consider taxes, lifetime income and legacy.</p><p><em>Order a Go2Income plan today based on the answers to three or four questions about your goals. </em><a data-analytics-id="inline-link" href="https://lp.go2income.com/?ref=kb53" target="_blank"><em>Get started here</em></a> <em>with no obligation. Consult with your own qualified adviser, find an analytical tool to provide some guidance or talk to a </em><a data-analytics-id="inline-link" href="https://app.acuityscheduling.com/schedule.php?owner=11442726&appointmentType=15224319" target="_blank"><em>Go2Specialist</em></a><em>.</em></p><p><em>Want more guidance on retirement savings? Sign up for Kiplinger's six-week series, </em><a data-analytics-id="inline-link" href="https://www.kiplinger.com/business/get-the-invest-for-retirement-series"><em>Invest for Retirement</em></a><em>.</em></p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/retirement/a-retirement-income-plan-that-covers-caregiver-costs">How to Create a Retirement Income Plan to Cover Caregiver Costs</a></li><li><a href="https://www.kiplinger.com/retirement/how-to-create-a-retirement-plan-that-checks-all-your-boxes">How to Create a Retirement Plan That Checks All Your Boxes</a></li><li><a href="https://www.kiplinger.com/retirement/how-to-grow-your-ira-in-retirement-rather-than-spend-it-down">How to Grow Your IRA in Retirement Rather Than Spend It Down</a></li><li><a href="https://www.kiplinger.com/retirement/ways-to-generate-retirement-income">10 Ways to Generate Retirement Income</a></li><li><a href="https://www.kiplinger.com/retirement/if-not-long-term-care-insurance-then-what">If Not Long-Term Care Insurance, Then What?</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/retirement/retirement-income-planning-for-unfunded-health-care-costs</link> <description> <![CDATA[ Retirement income plans often don't include late-in-life health or long-term care expenses. Here's how to cover for the unplanned withdrawals to pay for those. ]]> </description> <guid isPermaLink="false">gKEY7NegGcEwErnjSVQfGk</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/JcwWcEZhxst8mYqF4r3vPA.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Tue, 04 Feb 2025 10:40:00 +0000</pubDate> <category><![CDATA[Retirement]]></category> <category><![CDATA[Retirement-planning]]></category> <category><![CDATA[Long-term-care-insurance]]></category> <category><![CDATA[long term care]]></category> <category><![CDATA[Wealth-creation]]></category> <category><![CDATA[Investing]]></category> <category><![CDATA[Wealth-management]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/JcwWcEZhxst8mYqF4r3vPA.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[A doctor consults with his patient, an older man.]]></media:text> <media:title type="plain"><![CDATA[A doctor consults with his patient, an older man.]]></media:title> </media:content> </item> <item> <title><![CDATA[ Federal Employees Buyout Offer: Five Things to Consider ]]></title> <dc:content><![CDATA[ <p>If you’re a federal employee, there’s a good chance you’ve recently crunched the numbers on your finances as you evaluate the government’s buyout offer — to resign and receive about eight months of salary. In this article, we offer key considerations to help you make an informed choice if you are seriously weighing this unexpected decision.</p><p>For workers who have been in the federal government for some time, you may have accrued a constellation of retirement benefits and now face the task of assessing — very rapidly — whether you have the financial capacity to retire.</p><p>The cold, hard truth? There’s no easy answer — and it’s different for everyone.</p><p>Federal employees have a combination of pension benefits, the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/retirement-planning/thrift-savings-plan-contribution-limits">Thrift Savings Plan</a>, <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/social-security/601708/social-security-basics-12-things-you-must-know-about-claiming-and">Social Security</a>, the Federal Employee Retirement System (<a data-analytics-id="inline-link" href="https://www.opm.gov/retirement-center/fers-information/" target="_blank">FERS</a>) annuity (a time- and comp-weighted annuity), insurance options and, for longtime employees, possibly even the Civil Service Retirement System (<a data-analytics-id="inline-link" href="https://www.opm.gov/retirement-center/csrs-information/" target="_blank">CSRS</a>). It’s complicated.</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_KQr60TxC_a7GJFMMh_div' class='future__jwplayer'><div id='botr_KQr60TxC_a7GJFMMh_div'></div></div></div></div><p>As a firm specialized in comprehensive <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/financial-planning-the-best-defense-against-financial-fear">financial planning</a>, and with many clients in the federal workforce, <a data-analytics-id="inline-link" href="https://www.merceradvisors.com/" target="_blank">Mercer Advisors</a> helps families simplify this decision by outlining their immediate cash flow needs, their full range of government benefits and their specific financial plan for the years ahead — a plan that allows them to continue to pursue their financial goals.</p><p>In addition to crunching these numbers, we’ve identified five high-stakes decisions that federal employees contemplating retirement will need to make quickly, and which can’t necessarily be changed later.</p><h2 id="1-when-and-how-should-i-take-my-pension-option-2">1. When and how should I take my pension option?</h2><p>The federal government offers spousal benefits in exchange for a reduction in your pension. The tradeoff means having a somewhat lower pension now in exchange for your spouse receiving a benefit for the rest of their life.</p><p>Typically, in exchange for a 10% reduction in benefits, your spouse will be entitled to a 50% survivor benefit pension. There is also an option to take a smaller reduction, such as 5% in exchange for a 25% survivor benefit pension.</p><p>The specifics of your situation will matter, and it’s worth modeling this tradeoff and considering it in the context of other retirement assets, pension benefits or Social Security benefits that would be available to your spouse.</p><h2 id="2-should-i-continue-with-government-provided-health-life-and-long-term-care-insurance-2">2. Should I continue with government-provided health, life and long-term care insurance?</h2><p>In many situations, federal employees have the option to continue paying premiums to receive key insurance benefits including health, life and <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/long-term-care-insurance/things-you-should-know-about-long-term-care-insurance">long-term care insurance</a>, even after retirement.</p><p>Not all are eligible, but those who are can continue health insurance via the Federal Employees Health Benefits (<a data-analytics-id="inline-link" href="https://www.opm.gov/healthcare-insurance/healthcare" target="_blank">FEHB</a>) program. This is often a good option, but you will want to consider if you have access through a spouse to a better plan. That could be a plan that saves you money: Perhaps their employer pays all premiums, for example, or the plan has better coverage.</p><p>Federal employees who use the Federal Employees’ Group Life Insurance (<a data-analytics-id="inline-link" href="https://www.opm.gov/healthcare-insurance/life-insurance" target="_blank">FEGLI</a>) may also be eligible to continue their coverage into retirement, or to continue with reduced coverage.</p><p>Take the time to review your current premiums. Because some FEGLI premiums increase with age at five-year intervals, some employees are surprised to see how much higher they are than when they first signed up and may decide it’s no longer worth making those payments in retirement.</p><h2 id="3-how-does-medicare-work-with-the-federal-employee-health-care-program-2">3. How does Medicare work with the federal employee health care program?</h2><p>Federal employees who are age 65 have the option to keep their federal employee health care plans or switch to <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/medicare">Medicare</a> as their medical insurance. This can be a complex calculation because <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/medicare/medicare-premiums-2025-projected-irmaa-for-parts-b-and-d">Medicare premiums</a> are income-based. If your spouse is still working and is a high earner, the Medicare premiums will be accordingly higher.</p><p>If you do enroll in <a data-analytics-id="inline-link" href="https://www.medicare.gov/what-medicare-covers/what-part-b-covers" target="_blank">Medicare Part B</a>, however, your Federal Employees Health Benefits can serve as the secondary insurance providers.</p><h2 id="4-should-i-keep-my-retirement-savings-in-the-thrift-savings-plan-tsp-or-roll-them-over-to-an-ira-2">4. Should I keep my retirement savings in the Thrift Savings Plan (TSP) or roll them over to an IRA? </h2><p>The TSP offers just five fund options. If you roll over your TSP into an <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/retirement-plans/traditional-ira/602169/traditional-ira-basics-contributions-rmds">IRA</a>, you may have access to thousands of options including stocks, bonds, mutual funds, exchange-traded funds (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/slideshow/investing/t022-s002-9-things-you-must-know-about-etfs/index.html">ETFs</a>), real estate investment trusts (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/real-estate/real-estate-investing/things-you-should-know-about-reits">REITs</a>) and more.</p><p>But be careful: More options aren’t always better. The TSP may suit your investment objectives just fine, and it also offers extremely low fees. If the TSP’s options match what you need for your portfolio, then it can be a good option to keep funds there.</p><p>To take a simple example, a family who wants to invest in index funds may be better off keeping their assets in the TSP due to the low expense ratios in the TSP's suite of fund options. But if they're interested in mutual funds, sector ETFs or other products, they'd be able to access those only via an IRA.</p><h2 id="5-when-should-i-take-social-security-2">5. When should I take Social Security?</h2><p>Like any retiree, federal workers face the tradeoff of taking a reduced Social Security payment early or waiting until reaching <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/social-security/603439/whats-my-social-security-full-retirement-age">full retirement age</a> to receive a larger payment. The basic tradeoff is that if you wait five years to begin receiving payments, they’re larger, but you’ve missed out on receiving any payment for those five years.</p><p>Federal workers may not know that those retiring before age 62 may be eligible for a benefit called the <a data-analytics-id="inline-link" href="https://www.opm.gov/retirement-center/fers-information/types-of-retirement/#url=Annuity-Supplement" target="_blank">FERS Annuity Supplement</a>, which can function as a stopgap until you reach the age to claim Social Security. Most people will find it valuable to model this out.</p><h2 id="resources-for-federal-workers-considering-retirement-2">Resources for federal workers considering retirement</h2><p>If you think you might be able to retire but aren't quite sure, know that <a data-analytics-id="inline-link" href="https://www.merceradvisors.com/landing-page/federal-workers-and-mercer-advisors" target="_blank">resources</a> are available. The Social Security Administration (SSA) offers a <a data-analytics-id="inline-link" href="https://www.ssa.gov/OACT/anypia/index.html" target="_blank">range of calculators</a> to estimate benefits, and FEGLI offers a <a data-analytics-id="inline-link" href="https://www.opm.gov/retirement-center/calculators/fegli-calculator/" target="_blank">calculator</a> for various permutations of its life insurance benefits.</p><p>Even if you are confident that now is not the moment to retire, it’s never too soon to be aware of these considerations and begin the planning process with an adviser experienced in serving federal employees. Having a plan in place helps ensure continuity in your daily life and confidence in your financial future, with the flexibility to adapt as needed.</p><p>If there’s one overarching lesson to be taken, it’s that it’s prudent to be prepared for the unexpected in our financial lives.</p><p><em>The opinions expressed by the author are his own and are not intended to serve as specific financial, accounting, or tax advice. They reflect the judgment of the author as of the date of publication and are subject to change. The information is believed to be accurate but is not guaranteed or warranted by Mercer Advisors. Mercer Global Advisors Inc. is registered with the Securities and Exchange Commission and delivers all investment-related services. Mercer Advisors Inc. is a parent company of Mercer Global Advisors Inc. and is not involved with investment services.</em></p><p><em>Mercer Advisors is offering complimentary consultations to all federal employees considering the buyout offer.</em></p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/taxes/what-trump-federal-hiring-freeze-means-for-your-tax-return">No New IRS Agents? What Trump’s Federal Hiring Freeze Means for Your Tax Return</a></li><li><a href="https://www.kiplinger.com/retirement/retirement-planning/should-you-retire-at-62">Should You Retire at 62? Five Tips to Know You're Ready</a></li><li><a href="https://www.kiplinger.com/retirement/retirement-planning/five-signs-its-time-to-retire-in-2025">Five Signs It's Time to Retire in 2025</a></li><li><a href="https://www.kiplinger.com/taxes/which-states-will-bear-the-brunt-of-trump-tariff-plan">Trump Tariff Plan: Which States Would Be Hit the Hardest?</a></li><li><a href="https://www.kiplinger.com/retirement/trump-buyout-should-you-take-a-buyout-from-your-employer">Trump Offers Millions of Workers Buyouts. If You're Near Retirement, Should You Take a Buyout?</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/retirement/federal-employees-buyout-offer-what-to-consider</link> <description> <![CDATA[ Federal workers have a constellation of retirement benefits, and assessing them can get complicated fast. Here are five high-stakes decisions to focus on. ]]> </description> <guid isPermaLink="false">S2Yasd8Lh6JFQN245UMXyf</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/4en8pGCc3rzV7ygeTJVZy5.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Tue, 04 Feb 2025 10:35:00 +0000</pubDate> <category><![CDATA[Retirement]]></category> <category><![CDATA[Retirement-planning]]></category> <category><![CDATA[Wealth-creation]]></category> <category><![CDATA[Investing]]></category> <category><![CDATA[Wealth-management]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/4en8pGCc3rzV7ygeTJVZy5.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[An office worker looks thoughtful while sitting at her desk in the office.]]></media:text> <media:title type="plain"><![CDATA[An office worker looks thoughtful while sitting at her desk in the office.]]></media:title> </media:content> </item> <item> <title><![CDATA[ Insurance Bad Faith After Natural Disasters: What to Know ]]></title> <dc:content><![CDATA[ <p>The recent wildfires in Southern California and natural disasters elsewhere in the country have left thousands of people grappling with enormous loss — and the complex insurance claims process that follows.</p><p>Insurance companies owe a duty of good faith and fair dealing with policyholders. Unfortunately, some carriers are notorious for using unfair, manipulative and deceptive practices to delay, deny or minimize payouts of valid claims through unethical or illegal means. This is known as <a data-analytics-id="inline-link" href="https://www.justia.com/injury/insurance-bad-faith/">insurance bad faith</a><strong> </strong>— and it is crucial to be on the lookout for these tactics as you begin to rebuild your life.</p><p>While I do not recommend immediately hiring an attorney, under some circumstances — such as when bad-faith tactics are suspected — there is no choice. This is where lawyers experienced in bad-faith insurance practices are worth their weight in gold.</p><p>It never hurts to schedule a consultation, even at the very beginning, as a lawyer can help clarify your insurance coverages and be ready to help if it turns out that your carrier isn’t playing by the rules.</p><p>But as I stated in an earlier column, <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/property-insurance-claims-after-storms">How to Deal With Property Insurance Claims After Wildfires</a>, unless your carrier has flat out denied the loss or you suspect bad faith, allow the claims process to proceed and do not rush to retain an attorney, as the expense might not yet be justifiable.</p><p>I spoke with a friend of this column, Los Angeles attorney <a data-analytics-id="inline-link" href="https://www.kbklawyers.com/firm/shant-a-karnikian/" target="_blank">Shant Karnikian</a>, managing partner and trial attorney with one of our country’s leading bad-faith law firms, <a data-analytics-id="inline-link" href="https://www.kbklawyers.com/firm/shant-a-karnikian/" target="_blank">Kabateck LLP</a>. He addressed the following important points for how to proceed with an insurance claim and avoid common pitfalls.</p><ul><li><strong>Get a copy of your policy.</strong> Whatever renters or <a href="https://www.kiplinger.com/personal-finance/homeowners-insurance-limits">homeowners insurance</a> you have, contact your carrier to obtain a copy of the complete policy. Review it in detail to ensure you understand your coverage limits, deductibles and specific provisions related to the damage. Don’t forget to check other relevant policies, such as <a href="https://www.kiplinger.com/personal-finance/all-about-types-of-auto-insurance-coverage">auto insurance</a> or <a href="https://www.kiplinger.com/personal-finance/do-you-need-umbrella-insurance">umbrella insurance</a>.</li><li><strong>Document everything.</strong> When you can visit your home, take photos and videos of all the damage. You may need professional help, such as appraisers and structural engineers, to assess the full extent of the damage. An attorney can help connect you with the proper experts if necessary, but don’t be in a hurry to incur avoidable expenses. Allow the <a href="https://www.kiplinger.com/personal-finance/insurance/who-works-to-make-your-insurance-work#:~:text=What%20claims%20adjusters,at%20our%20worst.">claims adjusters</a> to do their work. Businesses should document all business losses and interruptions related to the incident.</li><li><strong>Save all receipts. </strong>You’ll need proof of whatever expenses you incur related to the disaster.</li><li><strong>Keep a diary.</strong> Take detailed notes and save records of every interaction with your insurer — letters, emails, calls, phone numbers, dates and times, names of the representatives you’ve spoken with and so on.</li><li><strong>Prioritize your health.</strong> Don’t return to your property until authorities have said it’s safe to do so.</li><li><strong>Secure affordable temporary housing.</strong> Most homeowners/renters policies cover a period of additional living expenses (ALE) for housing while you are displaced.</li><li><strong>Follow proof of loss requirements and meet all deadlines</strong>. Many insurance policies have strict policies and timeframes for reporting damage and filing claims.</li><li><strong>Stay on top of your insurance company.</strong> After filing, follow up on a regular basis to ensure your claim is being processed and that you have completed the requirements and provided all necessary information.</li><li><strong>Don't jump at your carrier's first offer.</strong> Do not feel pressured to accept an initial assessment or lowball offer, especially if you have not obtained a second opinion on valuation. Do not sign a release when accepting periodic payments.</li><li><strong>Don't rush into contracts. </strong>Don't sign contracts for repairs, rebuilds, clean-up/debris removal and so forth before you know the status of your claim. Be on the lookout for scammers targeting disaster victims.</li><li><strong>Inquire about resources. </strong>You may qualify for assistance through <a href="https://www.fema.gov/disaster/current" target="_blank"><u>FEMA</u></a> and/or the Small Business Administration (<a href="https://www.sba.gov/funding-programs/disaster-assistance" target="_blank"><u>SBA</u></a>).</li></ul><h2 id="consulting-with-an-attorney-2">Consulting with an attorney</h2><p>Seeking advice early in the process from an attorney experienced with property losses — before filing your claim<em> — </em>is advisable, but ethical lawyers will not rush to sign you up unless it becomes clear that you are being dealt with improperly.</p><p>If you do encounter bad-faith tactics, a lawyer can advocate for you, analyze and address every aspect of your claim, help you build a strong case, identify overlooked benefits, navigate disputes with your insurer, ensure your rights are protected and help maximize your claim — but only when it is necessary, as avoidance of unnecessary attorney fees is crucial.</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_sTWQUVku_a7GJFMMh_div' class='future__jwplayer'><div id='botr_sTWQUVku_a7GJFMMh_div'></div></div></div></div><h2 id="how-to-recognize-bad-faith-practices-2">How to recognize bad-faith practices</h2><p>I asked Karnikian to describe what insurance bad faith looks like. He said that insurance bad faith comes in many forms, including:</p><ul><li>Failure to respond to a claim promptly</li><li>Refusal to communicate</li><li>Lack of reasonable standards for prompt investigation or processing of a claim</li><li>Failing to conduct a fair investigation</li><li>Requiring unreasonable proof of a loss</li><li>Misrepresenting terms and policy provisions</li><li>Denying policy benefits without a clear or valid explanation</li><li>Nondisclosure of limitations or exclusions when the policy was sold, or including those in the “fine print”</li><li>Delaying decisions and resolution — failure to approve or deny a claim in a reasonable time period after the loss is submitted</li><li>Pressuring policyholders to accept a low-ball offer</li><li>Forcing the insured to litigate the claim because the insurer refuses to make an adequate settlement offer</li><li>Advising policyholders against retaining a lawyer</li><li>Threatening policyholders to compel acceptance of an unreasonable settlement offer</li></ul><p>If you believe your insurer is using bad-faith tactics to resist paying a valid claim, you can file a complaint with your state’s Department of Insurance, which will conduct an investigation and has the authority to impose penalties and fines on companies for violations.</p><p>In addition, depending on your circumstances, you may be entitled to pursue a bad-faith insurance claim in court to recover compensation and hold the insurance company accountable for its breach of contract.</p><p>A successful claim can help you gain compensation for:</p><ul><li><strong>Contract damages.</strong> The amount of wrongfully denied benefits, plus interest.</li><li><strong>Extra-contractual damages.</strong> Other significant economic losses, as well as mental and emotional distress caused by your insurance company's failure to fulfill its contractual obligations, including attorney fees.</li><li><strong>Punitive damages</strong>. Generally reserved for extreme bad-faith cases and considerably more difficult to prove, punitive damages can be awarded to punish the at-fault party.</li></ul><p>Proving insurance bad faith after a natural disaster can be very involved.</p><p>Your lawyer can help you build the strongest possible case to demonstrate that your insurer acted unreasonably and without proper cause.</p><p>“Lawyers who care will try every way possible to keep their clients out of court,” Karnikian says. “We are here to listen and help.”</p><p><em>Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to </em><a data-analytics-id="inline-link" href="mailto:Lagombeaver1@gmail.com" target="_blank"><em>Lagombeaver1@gmail.com</em></a><em>. And be sure to visit </em><a data-analytics-id="inline-link" href="https://dennisbeaver.com/" target="_blank"><em>dennisbeaver.com</em></a><em>.</em></p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/personal-finance/california-wildfires-and-insurance-looking-for-help">California Wildfires and Insurance: Looking for Help</a></li><li><a href="https://www.kiplinger.com/personal-finance/home-insurance/california-wildfires-home-insurance-crisis">California's Home Insurance Crisis: Rising Risks, Soaring Costs and Limited Options</a></li><li><a href="https://www.kiplinger.com/real-estate/home-improvement/602297/protect-your-home-from-natures-wrath">How to Protect Your Home from Natural Disasters with the Right Insurance</a></li><li><a href="https://www.kiplinger.com/taxes/california-tax-deadline-extensions">IRS Extends California Tax Deadline for Wildfire Victims: What to Know</a></li><li><a href="https://www.kiplinger.com/taxes/california-fires-how-to-recover-important-records">California Fires: How to Recover Tax Records and Other Important Documents</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/personal-finance/insurance-bad-faith-after-natural-disasters-what-to-know</link> <description> <![CDATA[ Understanding the basics of insurance claims after catastrophic losses is important, especially if you encounter insurance bad faith. Here's what to do if that happens. ]]> </description> <guid isPermaLink="false">MiS6wv26Mfr5oZKWwGke5Q</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/AXMQZRtZkUwPf4b8hfcdgA.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Tue, 04 Feb 2025 10:30:00 +0000</pubDate> <category><![CDATA[Personal-finance]]></category> <category><![CDATA[Insurance]]></category> <category><![CDATA[Home-insurance]]></category> <category><![CDATA[Wealth-creation]]></category> <category><![CDATA[Investing]]></category> <category><![CDATA[Wealth-management]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/AXMQZRtZkUwPf4b8hfcdgA.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[A structure burns in a wildfire.]]></media:text> <media:title type="plain"><![CDATA[A structure burns in a wildfire.]]></media:title> </media:content> </item> <item> <title><![CDATA[ Could Elon Musk Be Paying Your Social Security Check? ]]></title> <dc:content><![CDATA[ <p>Elon Must isn't just the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/wealth-management/the-richest-person-in-the-world">world's richest person</a>. He's also a man who may now have access to every single taxpayer's personal financial data.</p><p>On Jan. 31, Treasury Secretary Scott Bessent granted members of the <a data-analytics-id="inline-link" href="https://dogegov.com/" target="_blank" rel="nofollow">Department of Government Efficiency (DOGE)</a>, including Musk, access to the U.S. Treasury’s federal payment system. This system disburses trillions of dollars each year for programs that include <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/social-security/601708/social-security-basics-12-things-you-must-know-about-claiming-and">Social Security</a> and <a data-analytics-id="inline-link" href="https://www.nytimes.com/2025/02/01/us/politics/elon-musk-doge-federal-payments-system.html" target="_blank" rel="nofollow">Medicare</a>. It’s unclear what happens next.</p><p>With this move, Musk has effectively gained access to the federal government’s checkbook. As a result, Musk, tasked with cutting wasteful spending, has attained a level of control that many find unsettling.</p><p>The decision to grant Musk access to the Treasury’s payment system was not without controversy either. Last week, <a data-analytics-id="inline-link" href="https://thehill.com/homenews/administration/5119996-david-lebryk-retirement-treasury-doge-musk/" target="_blank" rel="nofollow">David Lebryk</a>, a top Treasury official who worked there for decades, was ousted after aiming to block Musk’s access. He was initially put on leave and subsequently announced his retirement.</p><h2 id="democrats-push-back-2">Democrats push back</h2><p>Senate Finance Committee Ranking Member <a data-analytics-id="inline-link" href="https://www.wyden.senate.gov/" target="_blank" rel="nofollow">Ron Wyden</a> (D-Ore.) questioned the decision to grant Musk access to the federal payment system. In a Jan. 31 <a data-analytics-id="inline-link" href="https://www.finance.senate.gov/chairmans-news/wyden-demands-answers-following-report-of-musk-personnel-seeking-access-to-highly-sensitive-us-treasury-payments-system" target="_blank">letter</a>, he stated, "I can think of no good reason why political operators who have demonstrated a blatant disregard for the law would need access to these sensitive, mission-critical systems."</p><p>Wyden also expressed concern that the mismanagement of the federal payment system could threaten the full faith and credit of the U.S., a concern echoed in a <a data-analytics-id="inline-link" href="https://www.warren.senate.gov/imo/media/doc/final_-_rm_warren_letter_to_bessent_re_treasury_payment_system.pdf" target="_blank">February 2 letter</a> from Senator <a data-analytics-id="inline-link" href="https://www.warren.senate.gov/" target="_blank">Elizabeth Warren</a> (D. -Mass) to the new Treasury secretary. Wyden noted that Musk was not only denied high-level security clearance but that his business dealings overseas could put the U.S. at greater risk of a cybersecurity attack.</p><p>When asked about Musk's control of the U.S. Treasury payment system, <a data-analytics-id="inline-link" href="https://thehill.com/policy/technology/5123525-president-trump-elon-musk-access-treasury/" target="_blank" rel="nofollow">President Donald Trump said</a>, "We’ll give him the approval when appropriate; where not appropriate, we won’t."</p><h2 id="americans-have-questions-2">Americans have questions</h2><p>Last week, the White House was <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/social-security/what-the-federal-grants-pause-means-for-social-security-and-medicare">blocked from freezing federal grants and loans</a>. Now, the concern shifts to other government programs Musk may or may not have the power to control. Here are a couple of the more pressing questions consumers will likely have.</p><h2 id="will-you-get-your-social-security-check-on-time-2">Will you get your Social Security check on time?</h2><p>Millions of Americans depend on <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/social-security/what-is-the-social-security-payment-schedule" target="_blank">Social Security's regular payments</a>, which are processed through the Treasury payment system. There's no reason to believe your next Social Security check will be late due to the change in management. However, there is little information about how DOGE intends to run the Treasury system.</p><p>There's also no indication that Musk's team will stop your Social Security check. According to <a data-analytics-id="inline-link" href="https://www.nytimes.com/2025/02/01/us/politics/elon-musk-doge-federal-payments-system.html" target="_blank" rel="nofollow">The New York Times,</a> Musk intends to focus cost-cutting efforts on blocking improper payments across government agencies rather than stopping individual checks.</p><p>Democrats vowed to protect Social Security and other payments <a data-analytics-id="inline-link" href="https://thehill.com/business/5124133-democrats-bill-treasury-system-musk/" target="_blank" rel="nofollow">with a bill</a>. “We must protect people’s Social Security payments, their Medicare payments, tax refunds, from any possible tampering by DOGE or any other unauthorized entities,” Senate Minority Leader <a data-analytics-id="inline-link" href="https://thehill.com/people/chuck-schumer/">Chuck Schumer </a>(D-NY.) said at a press conference on Monday.</p><p>Of course, the most significant risk to <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/social-security/when-will-social-security-and-medicare-trust-funds-run-out-of-money">Social Security is its funding shortfall</a>, as older Americans retire in droves and the program’s trust funds dwindle. There are <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/social-security/how-to-save-social-security-pay-more-taxes-cut-benefits">no easy fixes</a>. Potential solutions — including benefit cuts, <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/raising-the-social-security-retirement-age">raising the retirement age</a> and tax increases — are politically difficult to enact. However, <a data-analytics-id="inline-link" href="https://www.kiplinger.com/politics/trump-on-social-security-and-medicare">President Trump has stated</a> that he will not touch Social Security.</p><p>That said, the Social Security Administration’s Office of the Inspector General found that between fiscal years 2015 and 2022, the agency lost almost $72 billion to improper payments, most of which were <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/social-security/social-security-changes-how-overpayments-are-handled">overpayments</a>. Getting overpayments returned to Social Security fits within Musk's stated goal of blocking improper payments, though it would have only a marginal effect on the Social Security funding shortfall.</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_KQr60TxC_a7GJFMMh_div' class='future__jwplayer'><div id='botr_KQr60TxC_a7GJFMMh_div'></div></div></div></div><h2 id="is-your-personal-data-safe-2">Is your personal data safe?</h2><p>In theory, Musk and his team now have access to every American’s Social Security number and, in many cases, their banking information. However, the team is still bound by the law, which means any attempt to use that information for commercial or other purposes would likely result in <a data-analytics-id="inline-link" href="https://abcnews.go.com/US/treasury-dept-elon-musks-team-access-federal-payment/story?id=118380399" target="_blank" rel="nofollow">legal challenges from Congress</a>.</p><p>What's less clear is that this new, unidentified team will protect Americans' data security.</p><p>Unfortunately, <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/how-to-guard-against-identity-theft">identity theft is rampant</a>, and Americans need assurances that <a data-analytics-id="inline-link" href="https://home.treasury.gov/subfooter/privacy-policy" target="_blank">government data is secure</a>. Musk has been criticized for poor privacy and security decisions at some of his companies. For example, <a data-analytics-id="inline-link" href="https://foundation.mozilla.org/en/privacynotincluded/tesla/" target="_blank" rel="nofollow">Tesla, has a spotty record</a> when protecting user data.</p><p>Musk has floated the idea of using <a data-analytics-id="inline-link" href="https://www.msn.com/en-us/money/markets/elon-musk-pushes-for-us-treasury-to-embrace-blockchain-technology/ss-AA1yk00H?ocid=finance-verthp-feeds" target="_blank" rel="nofollow">blockchain technology</a> to track government payments and, ideally, to improve efficiency. Blockchain helps make payments more transparent and immutable, offering real benefits for tracking transactions. Some municipalities within the U.S. have <a data-analytics-id="inline-link" href="https://www.urban.org/urban-wire/what-are-promises-and-pitfalls-blockchain-local-governments" target="_blank">piloted blockchain initiatives</a>. However, this technology is still relatively young, and it's hard to know what kind of <a data-analytics-id="inline-link" href="https://www.wilsoncenter.org/article/blockchain-worlds-least-private-diary" target="_blank">privacy issues</a> might arise from its use in tracking the largest payment system in the world.</p><p>Whether you're a fan or a detractor of Elon Musk, ultimately, he is a private citizen who’s been handed the key to an unfathomably large vault. We are in uncharted territory.</p><h3 class="article-body__section" id="section-read-more"><span>Read More</span></h3><ul><li><a href="https://www.kiplinger.com/retirement/ways-trump-could-change-your-retirement">Eight Ways Trump Could Change Your Retirement</a></li><li><a href="https://www.kiplinger.com/retirement/social-security/what-the-federal-grants-pause-means-for-social-security-and-medicare">What a Federal Grants Pause Could Have Meant for Social Security and Medicare</a></li><li><a href="https://www.kiplinger.com/retirement/medicare/rfk-jr-confused-medicare-and-medicaid-heres-the-difference">RFK Jr. Confused Medicare and Medicaid: Here's the Difference</a></li><li><a href="https://www.kiplinger.com/retirement/social-security/what-is-the-average-social-security-check-by-age">What is the Average Social Security Check by Age?</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/retirement/social-security/could-elon-musk-be-paying-your-social-security-check</link> <description> <![CDATA[ Musk now has access the US Treasury payment system, which handles Social Security payments. Will your check be on time? Will your data be safe? ]]> </description> <guid isPermaLink="false">EKAYHu5PmH32cnsshdSJam</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/85mhiQJ7nFqEq2uh4uNYLg.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Tue, 04 Feb 2025 00:56:38 +0000</pubDate> <category><![CDATA[Social-security]]></category> <category><![CDATA[Retirement-planning]]></category> <category><![CDATA[Retirement]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/85mhiQJ7nFqEq2uh4uNYLg.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[Elon Musk at a conference.]]></media:text> <media:title type="plain"><![CDATA[Elon Musk at a conference.]]></media:title> </media:content> </item> <item> <title><![CDATA[ The DeepSeek Crash: What It Means for AI Investors ]]></title> <dc:content><![CDATA[ <p>Training a foundation model like those advanced artificial intelligence systems from OpenAI and Anthropic requires enormous amounts of data, the use of expensive GPUs and sophisticated fine tuning.</p><p>It's a process that can take months and hundreds of millions of dollars – or so it was thought until a tech startup from China upended this conventional approach.</p><p>In late January, DeepSeek claimed that it built its own foundation model for <a data-analytics-id="inline-link" href="https://www.cnbc.com/2025/01/27/nvidia-calls-chinas-deepseek-r1-model-an-excellent-ai-advancement.html"><u>less than $6 million</u></a>. The response from investors to this news was brutal and swift.</p><p>The price of Nvidia (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=NVDA" target="_blank">NVDA</a>) stock plunged 17% on January 27, wiping out <a data-analytics-id="inline-link" href="https://www.wsj.com/livecoverage/stock-market-today-dow-sp500-nasdaq-live-01-27-2025"><u>$590 billion in value</u></a>. It was the largest drop in <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/what-is-market-cap#:~:text=In%20its%20most%20basic%20definition,the%20stock's%20current%20share%20price."><u>market capitalization</u></a> for a company in a single day. Many other semiconductor and AI companies sold off amid a $1 trillion evaporation of wealth.</p><p>This may be an overreaction. <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/tech-stocks/604842/smart-artificial-intelligence-ai-stocks-to-buy"><u>AI stocks</u></a> have been on a major bull run for the past couple of years, and valuations certainly have reached lofty levels.</p><p>But there are real signs the AI market is undergoing fundamental changes. Here's what DeepSeek means for AI investors.</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_TZ5u6hI1_a7GJFMMh_div' class='future__jwplayer'><div id='botr_TZ5u6hI1_a7GJFMMh_div'></div></div></div></div><h2 id="what-is-deepseek-2">What is DeepSeek?</h2><p>The founder of DeepSeek, 40-year-old <a data-analytics-id="inline-link" href="https://fortune.com/asia/2025/01/23/deepseek-ai-china-vs-openai-stargate/?utm_source=iterable&utm_medium=email-blast&utm_campaign=spotlight-12411831&tpcc=NL_Marketing"><u>Liang Wenfeng</u></a>, is a billionaire who made his wealth as a <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/what-is-a-hedge-fund-and-should-i-invest-in-one"><u>hedge fund</u></a> manager. A key part of his approach has been to leverage AI for his investment strategies.</p><p>A few years ago, Wenfeng started buying up thousands of GPUs from Nvidia. He did this ahead of impending import restrictions on this technology from the U.S.</p><p>It's not clear if Wenfeng was able to obtain more high-powered GPUs. If not, his AI team was able to use innovative techniques to more efficiently train their models.</p><p>One of these is "distillation," which involves using larger modes to improve the performance of smaller models. Another approach is "mixture of experts," or training different parts of a model for specific tasks.</p><p>DeepSeek's latest foundation model is called R1, which is open source. This means the code and weights for the model are freely available (although the underlying training data has not been disclosed).</p><p>Based on a <a data-analytics-id="inline-link" href="https://www.cnbc.com/2025/01/24/how-chinas-new-ai-model-deepseek-is-threatening-us-dominance.html"><u>variety of tests</u></a>, the R1 model has been shown to be on par or even better than other models from OpenAI, Anthropic, and Facebook and Instagram parent Meta Platforms (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=META" target="_blank">META</a>).</p><p>As Andreessen Horowitz cofounder Marc Andreessen said in a <a data-analytics-id="inline-link" href="https://x.com/pmarca/status/1882719769851474108"><u>tweet</u></a> shortly after the results of its test were made public, "Deepseek R1 is one of the most amazing and impressive breakthroughs I’ve ever seen — and as open source, a profound gift to the world."</p><h2 id="the-immediate-impact-of-deepseek-2">The immediate impact of DeepSeek</h2><p>It's still early days for the R1 model. In the coming weeks, more details on its performance will emerge. It helps that the model is open source, which makes it easier for outsiders to conduct independent analysis.</p><p>There are big questions about the true costs of the system as well as how the model was trained. It may be that DeepSeek made <a data-analytics-id="inline-link" href="https://www.wsj.com/tech/ai/openai-china-deepseek-chatgpt-probe-ce6b864e?mod=hp_lead_pos2"><u>extensive use of OpenAI for the process</u></a>.</p><p>"It isn't clear yet if DeepSeek is the real deal or a DeepFake, but regardless of what we learn in the coming days, it's clear that this is a wake up call," said Dr. Robert Blumofe, the chief technology officer of Akamai Technologies (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=AKAM" target="_blank">AKAM</a>).</p><p>According to Blumofe, "The path of bigger and bigger large language models that rely on ever-increasing GPUs and massive amounts of energy is not the only path forward."</p><p>Even before the launch of R1, there were signs of commoditization for foundation models. The market has been intensely competitive, and pricing has been falling significantly.</p><p>This is not good news for those companies that rely mostly on these systems like OpenAI and Anthropic, which command substantial valuations.</p><p>In fact, economics of the recently announced <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/oracle-orcl-stock-surges-on-trumps-stargate-project"><u>$500 billion Stargate project</u></a> involving Oracle (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=ORCL" target="_blank">ORCL</a>), OpenAI, SoftBank and technology investment firm MGX already look dicey.</p><p>Nvidia could also face additional pressure and not just from upstarts like DeepSeek.</p><p>Nvidia's biggest customers – including Amazon.com (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=AMZN" target="_blank">AMZN</a>), Microsoft (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=MSFT" target="_blank">MSFT</a>), Google parent Alphabet (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=GOOGL" target="_blank">GOOGL</a>) and Meta – are building their own chipsets.</p><h2 id="the-potential-upside-of-deepseek-2">The potential upside of DeepSeek</h2><p>If DeepSeek's innovations prove to be real, there should be considerable benefits as well.</p><p>"The new-found AI competition could lead to breakthroughs in the compute resources needed to power AI workloads," said Lisa Martin, a research director at The Futurum Group.</p><p>Lower costs will help to make powerful AI technologies more pervasive, making it easier, for example, for software developers like ServiceNow (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=NOW" target="_blank">NOW</a>) and Salesforce (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=CMS" target="_blank">CMS</a>) to build their applications.</p><p>"The focus is shifting from innovation in the model itself to how effectively it can be deployed," said Qlik CEO Mike Capone.</p><p>Capone says the real winners of the AI race will be "companies that understand this pivot."</p><p>"The future isn't about chasing the next slightly better model," he explains. "It's about building the infrastructure to operationalize AI, leveraging proprietary data, and ensuring outputs reach the people who can act on them."</p><h3 class="article-body__section" id="section-related-content"><span>Related content</span></h3><ul><li><a href="https://www.kiplinger.com/investing/stocks/four-ways-to-invest-in-quantum-computing">Four Ways to Invest in Quantum Computing</a></li><li><a href="https://www.kiplinger.com/investing/stocks/604652/leading-lithium-stocks-worth-digging-into">The Best Lithium Stocks to Buy Now</a></li><li><a href="https://www.kiplinger.com/investing/stocks/upcoming-ipos">Hot Upcoming IPOs to Watch</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/investing/stocks/the-deepseek-crash-what-it-means-for-ai-investors</link> <description> <![CDATA[ DeepSeek's R1 model represents both risk and opportunity. Here's what DeepSeek means for AI investors. ]]> </description> <guid isPermaLink="false">C6uPCKD4e2Rhv3fuFKY4Gc</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/tcwvCRMxeNrYMRC4bG25AZ.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Mon, 03 Feb 2025 21:23:28 +0000</pubDate> <category><![CDATA[Stocks]]></category> <category><![CDATA[Investing]]></category> <author><![CDATA[ kiplinger@futurenet.com (Tom Taulli) ]]></author> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/tcwvCRMxeNrYMRC4bG25AZ.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[deepseek r1 is disrupting AI]]></media:text> <media:title type="plain"><![CDATA[deepseek r1 is disrupting AI]]></media:title> </media:content> </item> <item> <title><![CDATA[ Stock Market Today: Stocks Trim Losses After Trump Tariffs ]]></title> <dc:content><![CDATA[ <p>Stocks opened sharply lower Monday as Wall Street reacted to news that the Trump administration levied <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/prices-to-spike-if-trump-levies-canada-mexico-tariffs">tariffs against Canada, Mexico and China</a>. However, the main benchmarks finished well off their session lows after Trump delayed Mexico tariffs.</p><p>Over the weekend, President Donald Trump said the U.S. will levy 25% tariffs on Mexico and Canada and 10% tariffs on China. Stock market losses ranged from 1.4% to 2.5% in early trading Monday.</p><p>However, the main indexes closed well off these levels after Mexican President Claudia Sheinbaum said she would send 10,000 troops to the U.S. southern border. In return, Trump said he will delay tariffs on Mexico for one month.</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_TZ5u6hI1_a7GJFMMh_div' class='future__jwplayer'><div id='botr_TZ5u6hI1_a7GJFMMh_div'></div></div></div></div><p>At the close, the <strong>Dow Jones Industrial Average</strong> was down 0.3% at 44,421, the <strong>S&P 500</strong> was 0.8% lower at 5,994, and the <strong>Nasdaq Composite</strong> had lost 1.2% to 19,391.</p><p>While Monday's tariff-related slide is certainly an unwelcome way for investors to start the week and month, Carson Group Chief Market Strategist <a data-analytics-id="inline-link" href="https://www.carsongroup.com/insights/blog/team-members/ryan-detrick/" target="_blank"><u>Ryan Detrick</u></a> says "volatility is just the toll we pay to invest."</p><p>He adds that "every single year has some bad days and scary headlines" and to think that this year would be different isn't a good investing strategy. And while tariffs bring about "a lot of uncertainty … the bottom line is the underpinnings of this economy and <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/600938/bull-markets-10-things-you-must-know"><u>bull market</u></a> are still solid."</p><div class="tradingview-widget-container"> <div class="tradingview-widget-container__widget"></div> <div class="tradingview-widget-copyright"><a href="https://www.tradingview.com/" rel="noopener nofollow" target="_blank"><span class="blue-text">Track all markets on TradingView</span></a></div> <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-market-overview.js" async>{"source":"marketOverview","id":"e8813d5f-3ebb-4c9e-bdaa-d51faec48bdb","showFloatingTooltip":false,"showSymbolLogo":true,"showChart":true,"plotLineColorGrowing":"rgba(41, 98, 255, 1)","symbolActiveColor":"rgba(41, 98, 255, 0.12)","colorTheme":"light","width":"400","height":"550","isTransparent":false,"gridLineColor":"rgba(240, 243, 250, 0)","scaleFontColor":"rgba(19, 23, 34, 1)","belowLineFillColorFalling":"rgba(41, 98, 255, 0.12)","largeChartUrl":"","dateRange":"12M","belowLineFillColorGrowing":"rgba(41, 98, 255, 0.12)","belowLineFillColorFallingBottom":"rgba(41, 98, 255, 0)","plotLineColorFalling":"rgba(41, 98, 255, 1)","locale":"en","tabs":[{"title":"Indices","symbols":[{"s":"FOREXCOM:SPXUSD","d":"S&P 500 Index"},{"s":"FOREXCOM:DJI","d":"Dow Jones Industrial Average Index"},{"s":"NASDAQ:IXIC","d":"Nasdaq Composite"}],"originalTitle":"Indices"},{"title":"Futures","symbols":[{"s":"CME_MINI:ES1!","d":"S&P 500"},{"s":"CME:6E1!","d":"Euro"},{"s":"COMEX:GC1!","d":"Gold"},{"s":"NYMEX:CL1!","d":"WTI Crude Oil"},{"s":"NYMEX:NG1!","d":"Gas"},{"s":"CBOT:ZC1!","d":"Corn"}],"originalTitle":"Futures"},{"title":"Bonds","symbols":[{"s":"CBOT:ZB1!","d":"T-Bond"},{"s":"CBOT:UB1!","d":"Ultra T-Bond"},{"s":"EUREX:FGBL1!","d":"Euro Bund"},{"s":"EUREX:FBTP1!","d":"Euro BTP"},{"s":"EUREX:FGBM1!","d":"Euro BOBL"}],"originalTitle":"Bonds"},{"title":"Forex","symbols":[{"s":"FX:EURUSD","d":"EUR to USD"},{"s":"FX:GBPUSD","d":"GBP to USD"},{"s":"FX:USDJPY","d":"USD to JPY"},{"s":"FX:USDCHF","d":"USD to CHF"},{"s":"FX:AUDUSD","d":"AUD to USD"},{"s":"FX:USDCAD","d":"USD to CAD"}],"originalTitle":"Forex"}],"belowLineFillColorGrowingBottom":"rgba(41, 98, 255, 0)","realType":"embed"}</script></div><h2 id="tesla-leads-mag-7-losers-2">Tesla leads Mag 7 losers</h2><p>As for single stocks, several Magnificent 7 members saw outsized declines Monday. <strong>Tesla</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=TSLA" target="_blank">TSLA</a>), for one, plunged 5.2% as many automakers sold off on the tariff news.</p><p>As Kiplinger contributor Charles Lewis Sizemore, CFA, explains in his feature "<a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/how-do-tariffs-impact-the-stock-market"><u>How Do Tariffs Impact the Stock Market?</u></a>," while tariffs reduce competition for domestic car companies, they also increase costs for imported parts, such as aluminum.</p><p><strong>Nvidia</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=NVDA" target="_blank">NVDA</a>, -2.8%) and <strong>Apple</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=AAPL" target="_blank">AAPL</a>, -3.4%) also ended notably lower, while <strong>Alphabet </strong>(<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=GOOGL" target="_blank">GOOGL</a>, -1.4%) and <strong>Amazon.com</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=AMZN" target="_blank">AMZN</a>, -0.1%) – which appear on the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/17494/next-week-earnings-calendar-stocks"><u>earnings calendar</u></a> later this week – also finished in the red.</p><h2 id="why-meta-stock-s-a-dynamic-ai-play-2">Why Meta stock's a "dynamic AI play"</h2><p>Meanwhile, <strong>Meta Platforms</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=META" target="_blank">META</a>) outperformed its Mag 7 peers with its 1.2% gain, adding $21 billion in market value on a down day. The social media platform wowed Wall Street last week with its <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/is-meta-stock-a-buy-hold-or-sell-after-earnings"><u>solid fourth-quarter earnings report</u></a> thanks in part to the company's artificial intelligence (AI) initiatives.</p><p>Wedbush analyst <a data-analytics-id="inline-link" href="https://www.wedbush.com/profile/ScottDevitt/" target="_blank"><u>Scott Devitt</u></a> (Outperform, the equivalent of Buy), thinks Meta's runway for growth is long and calls the mega cap a "dynamic AI play."</p><p>He notes that "over time, Meta has the opportunity to monetize its AI assistant, Meta AI, expand AI agents for businesses, drive deeper automation of advertiser tools and creative, and further integrate generative AI capabilities in Meta hardware products."</p><h2 id="manufacturing-activity-expands-in-january-2">Manufacturing activity expands in January</h2><p>In economic news, the Institute for Supply Management's (ISM) <a data-analytics-id="inline-link" href="https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/pmi/january/" target="_blank"><u>Manufacturing Purchasing Managers Index</u></a> (PMI) showed that activity in the manufacturing sector swung into expansion territory in January, with the index rising to 50.9% from December's adjusted reading of 49.2%.</p><p>"Strong domestic and foreign demand catapulted the U.S. manufacturing sector into expansion territory for the first time since April," says <a data-analytics-id="inline-link" href="https://ibkrcampus.com/author/jose-torres/" target="_blank"><u>José Torres</u></a>, senior economist at Interactive Brokers.</p><p>Torres adds that new orders, prices, production and exports all contributed to the upside beat, while imports, deliveries and employment helped "at more modest degrees."</p><p>Separate data from the <a data-analytics-id="inline-link" href="https://www.census.gov/construction/c30/current/index.html" target="_blank"><u>Census Bureau</u></a> showed that construction spending rose 0.5% from November to December and was up 4.3% year over year. Economists expected a 0.2% monthly increase.</p><p>"Construction spending ended 2024 on a better-than-expected note" thanks to private single-family construction and home improvement outlays, says <a data-analytics-id="inline-link" href="https://www.wellsfargo.com/cib/insights/economics/about/" target="_blank"><u>Charlie Dougherty</u></a>, senior economist at Wells Fargo. He adds that the build-out of data centers was a "notable green shoot."</p><p>Still, Dougherty expects construction spending to "stay under pressure this year as <a data-analytics-id="inline-link" href="https://www.kiplinger.com/economic-forecasts/interest-rates"><u>interest rates</u></a> remain elevated and trade and immigration policy changes increase construction costs."</p><h3 class="article-body__section" id="section-related-content"><span>Related content</span></h3><ul><li><a href="https://www.kiplinger.com/investing/when-is-the-next-jobs-report">When Is the Next Jobs Report?</a></li><li><a href="https://www.kiplinger.com/investing/economy/this-weeks-economic-calendar">Kiplinger's Economic Calendar for This Week</a></li><li><a href="https://www.kiplinger.com/business/how-ai-will-impact-our-lives">How AI Will Impact Our Lives in 2025 and Beyond</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/investing/stocks/stock-market-today-stocks-trim-losses-after-trump-tariffs</link> <description> <![CDATA[ Stocks slumped at the start of Monday's session after the Trump administration's weekend tariff announcement. ]]> </description> <guid isPermaLink="false">GfRnuHrqTVRPyi6kiKXGpV</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/kXwP9L5Dq4dmpChR5Nn473.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Mon, 03 Feb 2025 21:08:18 +0000</pubDate> <category><![CDATA[Stocks]]></category> <category><![CDATA[Investing]]></category> <author><![CDATA[ karee.venema@futurenet.com (Karee Venema) ]]></author> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/kXwP9L5Dq4dmpChR5Nn473.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[closeup of stock market chart with red and green bars and Bollinger bands]]></media:text> <media:title type="plain"><![CDATA[closeup of stock market chart with red and green bars and Bollinger bands]]></media:title> </media:content> </item> <item> <title><![CDATA[ How Do Tariffs Impact the Stock Market? ]]></title> <dc:content><![CDATA[ <p>Tariffs.</p><p>They're the centerpiece of Donald Trump's second-term agenda. They're controversial, and they raise the price of imported goods. But what is their actual impact on the stock market?</p><p>The answer is complex because there are <em>a lot</em> of moving parts. Let's try to make it as simple as possible.</p><p>To start, you have to remember that the stock market is a market of stocks. While macro factors affect the market as a whole, there are also company-specific factors.</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_TZ5u6hI1_a7GJFMMh_div' class='future__jwplayer'><div id='botr_TZ5u6hI1_a7GJFMMh_div'></div></div></div></div><p>The macro impacts are harder to measure and are more widely dispersed, but the micro, company-specific factors are <em>very </em>visible and a lot easier to quantify. Even at the individual level, <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/how-tariffs-impact-your-wallet">tariffs</a> can cut both ways for publicly traded companies by reducing competition while also raising costs.</p><h2 id="what-is-a-tariff-2">What is a tariff?</h2><p>Let's go over the basics. A tariff is a tax on imported goods. Contrary to popular belief, the tax is paid by the importer, not the exporter.</p><p>Let's use the Trump administration's recently announced 25% <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/prices-to-spike-if-trump-levies-canada-mexico-tariffs">tariffs on Canada and Mexico</a> as an example. If a Canadian lumber mill sells plywood sheets to home improvement retailer<strong> </strong>Home Depot (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=HD" target="_blank">HD</a>), neither the Canadian mill owner nor the Canadian government pays the tariff. Home Depot or one of its domestic suppliers does.</p><p>Of course, this incentivizes them to buy from a domestic producer, and that's the rationale for the tariff. Any domestic mill now has a 25% price advantage over foreign competitors.</p><p>So, American lumber mills should enjoy fatter profits and a better-performing share price in this example.</p><p>But what about Home Depot?</p><p>Well, that's a different story. Home Depot is now stuck with the difficult decision of raising prices to maintain its profit margins … or eating the cost of the tariffs itself. All else equal, the tariffs would be damaging to Home Depot's profitability and presumably the share price of the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/blue-chip-stocks/605147/hedge-funds-top-blue-chip-stocks-to-buy-now"><u>blue chip stock</u></a>.</p><p>(I say "presumably" because stocks do not always move in lockstep with earnings expectations. In the short term, there can be a lot of noise.)</p><p>So, tariffs are going to affect companies differently. Retail operations such as Home Depot, Walmart (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=WMT" target="_blank">WMT</a>), Amazon.com (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=AMZN" target="_blank">AMZN</a>) and even mom-and-pop shops will be affected negatively. Logistics and shipping companies could also take a hit because demand for imports falls when tariffs are high.</p><p>On the flip side, domestic producers such as steel mills and automakers mostly benefit from reduced competition. However, these benefits are partly offset by increases in component costs. For example, the automakers might enjoy higher selling prices but they are also paying more for imported aluminum.</p><h2 id="are-tariffs-good-or-bad-for-the-stock-market-2">Are tariffs good or bad for the stock market?</h2><p>From a macro view, the economic impact of tariffs tends to be negative. The specific tie to the stock market is harder to measure except in extreme circumstances.</p><p>Free trade allows for specialization and creates a more efficient economy with lower prices and greater consumer choice. This has been a core belief of virtually all economists since Adam Smith first penned <a data-analytics-id="inline-link" href="https://www.amazon.com/Wealth-Nations-Adam-Smith/dp/1505577128" target="_blank"><u><em>The Wealth of Nations</em></u></a>. Tariffs disrupt free trade in goods and can lead to higher prices and lower consumer choice.</p><p>But again, this is hard to measure. Conceptually, it's easy to grasp that we are all a little poorer if we have to pay an extra $10 for a toaster. But how exactly does that flow through to gross domestic product (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/economic-forecasts/gdp"><u>GDP</u></a>) or to the aggregate profits of the S&P 500? There's no easy way to measure.</p><p>Another factor to consider is that the United States is primarily a services and information economy with world-leading tech, financial and healthcare firms. This means they stand to absorb the costs but with no benefits to compensate, as tariffs are levied on goods, not services. Tariffs will potentially increase a company's expenses, meaning they will pay more for imported electronics and equipment, but they won't get the same domestic sales bump as retailers.</p><p>Think of it like this. Tariffs will likely benefit an old-economy company like General Motors (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=GM" target="_blank">GM</a>). But General Motors only represents a small portion of the S&P 500 Index (0.11% at last check). However, tariffs will actually hurt the bottom lines of the services and information-based <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/what-are-the-magnificent-7-stocks"><u>Magnificent 7 stocks</u></a>. And these mega-cap names – Nvidia (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=NVDA" target="_blank">NVDA</a>), Apple (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=AAPL" target="_blank">AAPL</a>), Microsoft (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=MSFT" target="_blank">MSFT</a>), Amazon, Meta Platforms (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=META" target="_blank">META</a>), Alphabet (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=GOOGL" target="_blank">GOOGL</a>) and Tesla (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=TSLA" target="_blank">TSLA</a>) – currently make up over 30% of the broad-market index.</p><p>The one exception to the Mag 7 stocks is Tesla, which would indeed benefit from less competition in electric vehicles.</p><p>And finally, we have to mention the elephant in the room: <a data-analytics-id="inline-link" href="https://www.kiplinger.com/economic-forecasts/inflation"><u>inflation</u></a>. If inflation remains elevated due in part to the higher cost of imports, the Federal Reserve will be forced to keep <a data-analytics-id="inline-link" href="https://www.kiplinger.com/economic-forecasts/interest-rates"><u>interest rates</u></a> higher for longer. All else equal, higher interest rates are a headwind for stock prices.</p><p>None of this means the stock market is necessarily due for a tumble, of course. And while headlines around tariffs tend to create volatility, the dips are often short-lived and the long-term trend of the market is up. For investors looking for more immediate ways to protect their portfolios, check out these ways to <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/how-to-hedge-against-tariffs"><u>hedge against tariffs</u></a>.</p><h3 class="article-body__section" id="section-related-content"><span>Related content</span></h3><ul><li><a href="https://www.kiplinger.com/investing/stocks/stocks-to-buy-for-a-trump-presidency">Stocks to Buy for a Trump Presidency</a></li><li><a href="https://www.kiplinger.com/taxes/trumps-tariff-tiff-with-colombia-a-sign-of-whats-to-come">Trump's Tariff Tiff With Colombia on Hold, But Is It a Sign of What’s to Come?</a></li><li><a href="https://www.kiplinger.com/personal-finance/inflation/can-a-president-fix-inflation">Can a President Fix Inflation? Here's What Donald Trump Could Do</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/investing/how-do-tariffs-impact-the-stock-market</link> <description> <![CDATA[ There are plenty of moving parts when it comes to tariffs. Here, we look at what impact tariffs have on the stock market and your portfolio. ]]> </description> <guid isPermaLink="false">AwSXWpDqDaECpqccVG7T4U</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/EyfbuRjGxrdUPiiESJFCTk.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Mon, 03 Feb 2025 17:18:59 +0000</pubDate> <category><![CDATA[Investing]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/EyfbuRjGxrdUPiiESJFCTk.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[Digital concept of trade protectionism with continental United States covered by US flag and surrounded by a security fence ]]></media:text> <media:title type="plain"><![CDATA[Digital concept of trade protectionism with continental United States covered by US flag and surrounded by a security fence ]]></media:title> </media:content> </item> <item> <title><![CDATA[ What To Know if You’re in the Market for a New Car This Year ]]></title> <dc:content><![CDATA[ <p><em>To help you understand what is going on in the economy and beyond, our highly experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (</em><a data-analytics-id="inline-link" href="https://subscribe.kiplinger.com/loc/KWP/kipcomarticles"><em>Get a free issue of The Kiplinger Letter or subscribe</em></a><em>). You'll get all the latest news first by subscribing, but we publish many (but not all) of our forecasts a few days afterward online. Here’s the latest...</em></p><p>The car market is getting back to normal. Slowly. Sales are rebounding. Inventories are no longer abnormally scant. Financial incentives, which dried up during the pandemic, are reemerging. Still, it’s a tough environment for buyers. Here’s what to know if you might be in the market.</p><p><strong>1. Sales and costs<br></strong>Total sales should grow a bit this year: Figure on about 16.3 million, up slightly from 2024’s already-solid 15.9 million vehicles sold. Interest rates on car loans should decline, albeit only slightly, after the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/when-is-the-next-fed-meeting">Federal Reserve’s</a> cuts last year and a bit more Fed easing later this year. Slightly lower financing costs also bode well for sales.</p><p><strong>2. Inventories<br></strong>Buyers can expect a bit more selection as dealer inventories rebound — also good for sales. Among the most popular categories of cars this year, according to Joseph Yoon, consumer insights analyst at <a data-analytics-id="inline-link" href="https://www.edmunds.com/" target="_blank">Edmunds.com</a>:</p><ul><li><strong>Big and compact SUVs.</strong> Roomy three-rows and, on the other end of the spectrum, small ones. Families with kids are often looking to upsize. Retirees and empty nesters often want to downsize.</li><li><strong>Pickup trucks of all flavors.</strong> Nothing new, considering how dominant trucks once meant for work have become in recent years.</li><li><strong>And hybrids</strong>, which had a banner year in 2024 and figure to stay in demand. “Consumers have made it pretty clear” that they’re interested in electrification, but not necessarily pure electric vehicles, notes Yoon. Hybrids like Toyota’s RAV4 and Honda’s CR-V are thriving as buyers look to <a href="https://www.kiplinger.com/personal-finance/how-to-save-money/604390/gas-saving-tips-that-actually-work">save gas</a> but not abandon it. More hybrid versions of popular models are rolling out, particularly from Toyota — hybrid Tacomas, Tundras, 4Runners, etc.</li></ul><p>If you’re looking to score a big discount, EVs are the place to shop, Yoon says, provided that you are open to going electric. Between federal and state tax credits and discounts from manufacturers, there are juicy deals to be had. Note that any talk of doing away with the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/ev-tax-credit">$7,500 tax credit</a> on certain EV models could spur a huge wave of buying.</p><p>Brands with the most inventory in stock now, according to data from <a data-analytics-id="inline-link" href="https://www.coxautoinc.com/" target="_blank">Cox Automotive</a>, which could help buyers: Ford, Tesla and Stellantis-owned ones like Ram and Jeep. By contrast, inventories are tight at Toyota, Lexus, Honda and BMW, with scant room to haggle.</p><p><strong>3. Buying advice<br></strong>Some general buying advice, especially for folks who haven’t shopped lately:</p><ul><li><strong>Be prepared for sticker shock</strong>, both on the prices of new cars and the rates on auto loans, says Yoon of Edmunds. The pre-COVID days when salespeople were ready to negotiate and loans could be had with 0% interest are long gone. Assess your buying power accordingly.</li><li><strong>Be flexible about what you want </strong>vs what you need. If you set your heart on one particular model or trim level, it could be hard to find, or cost a pretty penny.</li><li><strong>Lay the groundwork</strong> before you walk into a dealership. Identifying the car you’re interested in and contacting the dealer before you go in to see or drive it can help expedite the purchase. Otherwise, you’ll be competing with lots of buyers.</li></ul><p><em>This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. </em><a data-analytics-id="inline-link" href="https://subscribe.kiplinger.com/loc/KWP/kipcomarticles"><em><strong>Subscribe to The Kiplinger Letter</strong></em></a><em>.</em></p><hr><h3 class="article-body__section" id="section-related-stories"><span>Related Stories</span></h3><ul><li><a href="https://www.kiplinger.com/personal-finance/cars/is-leasing-a-car-cheaper-than-buying">Is Leasing a Car Cheaper Than Buying? Know the Costs</a></li><li><a href="https://www.kiplinger.com/personal-finance/shopping/top-electric-cars-in-the-us">Top 10 Electric Cars in the US — Most Popular EVs</a></li><li><a href="https://www.kiplinger.com/personal-finance/models-that-show-hybrid-cars-might-be-right-for-you">5 Models That Show Hybrid Cars Might Be Right For You</a></li><li><a href="https://www.kiplinger.com/taxes/605201/federal-tax-credit-for-electric-vehicle-chargers">EV Charger Tax Credit: What You Need to Know</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/personal-finance/cars/new-car-buying-market</link> <description> <![CDATA[ Buying a new car will get a little easier, but don’t expect many deals. ]]> </description> <guid isPermaLink="false">yu4QddMqrDHkR9ZXq3xivN</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/Ro7YQazm8PbbCNfTtSvTFQ.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Mon, 03 Feb 2025 12:53:00 +0000</pubDate> <category><![CDATA[Cars]]></category> <category><![CDATA[business]]></category> <category><![CDATA[Car-loans]]></category> <category><![CDATA[Personal-finance]]></category> <category><![CDATA[Shopping]]></category> <category><![CDATA[Credit-debt]]></category> <category><![CDATA[Loans]]></category> <author><![CDATA[ kiplinger@futurenet.com (David Payne) ]]></author> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/Ro7YQazm8PbbCNfTtSvTFQ.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[A couple shakes hands with a car dealer in a parking lot full of cars to buy or lease.]]></media:text> <media:title type="plain"><![CDATA[A couple shakes hands with a car dealer in a parking lot full of cars to buy or lease.]]></media:title> </media:content> </item> <item> <title><![CDATA[ Popular Tax Breaks Are in Danger ]]></title> <dc:content><![CDATA[ <p><em>Getting the right tax advice and tips is vital in the complex tax world we live in. The Kiplinger Tax Letter helps you stay right on the money with the latest news and forecasts, with insight from our highly experienced team (</em><a data-analytics-id="inline-link" href="https://subscribe.kiplinger.com/servlet/OrdersGateway?cds_mag_code=KTP&cds_page_id=268703&cds_response_key=I4ZTZ00Z" target="_blank"><u><em>Get a free issue of The Kiplinger Tax Letter or subscribe</em></u></a><em>). You can only get the full array of advice by subscribing to the Tax Letter, but we will regularly feature snippets from it online, and here is one of those samples…</em></p><p>As President Trump, officials in his administration and congressional Republicans start working on a big tax bill to extend <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/tax-provisions-that-are-expiring">expiring tax breaks</a> in 2017's <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/what-is-the-tcja">Tax Cuts and Jobs Act</a> (TCJA) and to make other tax changes, they are eyeing lots of revenue-saving measures to help offset the cost of the bill or at least some of the cost. A 10-year extension of all the expiring provisions in the TCJA would add nearly $5 trillion to the debt, and that’s not counting the other tax breaks that President Trump promised to corporations and various groups on the campaign trail.<br><br>The House Budget Committee has floated an extensive list of revenue-savings options that are on the table. The list incorporates savings on multiple fronts, including <a data-analytics-id="inline-link" href="https://www.kiplinger.com/economic-forecasts/energy">energy</a>, transportation, education, health, welfare, customs and immigration, <a data-analytics-id="inline-link" href="https://www.kiplinger.com/economic-forecasts/trade-deficit">trade</a>, infrastructure, the federal workforce, and of course, taxes.<br><br>We will look at some current tax breaks that are under fire.</p><h2 id="1-home-mortgage-interest-write-off-2">1. Home Mortgage Interest Write-Off</h2><p>Prior to 2018, taxpayers who itemize on <a data-analytics-id="inline-link" href="https://www.irs.gov/forms-pubs/about-schedule-a-form-1040" target="_blank">Schedule A</a> of <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/tax-forms/form-1040">Form 1040</a> could deduct interest on up to $1 million of <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/mortgage-interest-deduction">mortgage indebtedness</a> secured by their primary home or a single secondary home incurred to buy, construct, or substantially improve the residence. The Tax Cuts and Jobs Act cut back the write-off, allowing interest to be deducted on up to $750,000 of total home acquisition debt. The $750,000 limit generally applies to debt incurred after December 15, 2017. If Congress does nothing, then the higher $1 million loan cap will automatically be revived after 2025.</p><p>However, instead Republicans are looking at paring this deduction back further to help pay for the cost of tax legislation. An option is to end the break or to lower the $750,000 cap on which mortgage interest can be deducted to $500,000. If Congress ends or lowers the cap, we would expect any change to apply to <a data-analytics-id="inline-link" href="https://www.kiplinger.com/real-estate/mortgages">mortgages</a> taken out on or after the date of any tax bill.</p><h2 id="2-municipal-bond-interest-2">2. Municipal Bond Interest</h2><p>Currently, interest earned on state and local bonds (munis) is tax-exempt for federal income tax purposes. Repealing this break is a revenue-raising option. The same goes for tax-free interest received from private activity bonds, Build American bonds and the like.</p><h2 id="3-tax-breaks-for-families-2">3. Tax Breaks for Families</h2><p>The <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/child-and-dependent-care-credit-how-much-is-it">child and dependent care tax credit</a> for working parents and the head-of-household filing status would be repealed. If the head-of-household filing status is eliminated, these filers will then have to use the filing status for single individuals, resulting in a lower <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/the-new-standard-deduction-is-here">standard deduction</a> amount and less favorable <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/tax-brackets/602222/income-tax-brackets">income tax brackets</a>.</p><p>Also, parents who claim the $2,000 (per child) child credit would need to have Social Security numbers. Currently, SSNs are required only for the children.</p><h2 id="4-education-tax-breaks-2">4. Education Tax Breaks</h2><p>Republicans want to scrap the up-to-$2,000 <a data-analytics-id="inline-link" href="https://www.kiplinger.com/slideshow/taxes/t054-s001-tax-deductions-and-credits-to-help-pay-for-college/index.html">Lifetime Learning Credit</a>, the up-to-$2,500 <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/american-opportunity-tax-credit-aotc">American Opportunity tax credit</a>, and the up-to-$2,500 Form 1040 above-the-line deduction for interest paid on student loans for higher education. They also propose taxing scholarship and fellowship grants.</p><h2 id="5-state-and-local-tax-salt-deduction-2">5. State and Local Tax (SALT) Deduction</h2><p>Taxpayers who itemize on Schedule A of the 1040 can currently deduct their state and local tax deductions up to a $10,000 cap. If Congress does nothing, this cap disappears at the end of 2025. At that point, taxpayers could then claim the SALT write-off — as they did prior to 2018.</p><p>The House Budget Committee's list of potential revenue options sets forth the following five alternatives to handle this tax break, some of which are revenue-saving measures, while others would hike the cost of any tax bill:</p><ul><li>Repeal the SALT deduction in its entirety</li><li>Double the $10,000 cap to $20,000 for married taxpayers filing a joint tax return</li><li>Increase the cap to $30,000 for joint-return filers and to $15,000 for all other filers</li><li>Let the $10,000 cap expire at year-end, but, beginning in 2026, allow filers to deduct only property taxes, and not state and local income or sales taxes</li><li>Eliminate the SALT deduction for businesses</li></ul><h2 id="6-other-tax-breaks-in-jeopardy-2">6. Other Tax Breaks in Jeopardy</h2><p>Here are some other actions that are being considered by Republican lawmakers that could impact popular tax breaks:</p><ul><li>Nix green-energy tax breaks that were enacted in the Inflation Reduction Act</li><li>Make various changes to Obamacare subsidies</li><li>End the employee tax exclusion for employer-paid meals, transportation and on-premise gyms</li><li>Have the COVID-19-related <a href="https://www.kiplinger.com/taxes/what-is-happening-with-the-employee-retention-tax-credit">employee retention tax credit</a> retroactively sunset on January 31, 2024</li><li>Repeal the federal tax exemption for nonprofit hospitals</li><li>Increase the current 1.4% excise tax on the net investment income of private colleges with large endowments to 14%</li><li>Repeal the federal tax exemption for credit unions</li><li>Ax <a href="https://www.kiplinger.com/taxes/tax-deductions/601993/charitable-tax-deductions-an-additional-reward-for-the-gift-of-giving">charitable contribution deductions</a> for donations made by individuals to hospitals and other tax-exempt health organizations</li></ul><hr><p><em>This first appeared in The Kiplinger Tax Letter. It helps you navigate the complex world of tax by keeping you up-to-date on new and pending changes in tax laws, providing tips to lower your business and personal taxes, and forecasting what the White House and Congress might do with taxes.</em> <a data-analytics-id="inline-link" href="https://subscribe.kiplinger.com/servlet/OrdersGateway?cds_mag_code=KTP&cds_page_id=268703&cds_response_key=I4ZTZ00Z" target="_blank"><em>Get a free issue of The Kiplinger Tax Letter or subscribe</em></a><em>.</em></p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/taxes/hurdles-for-trumps-tax-bill">Six Hurdles for Trump's Tax Bill</a></li><li><a href="https://www.kiplinger.com/taxes/irs-tax-deductions-and-credits-to-know">A Bunch of IRS Tax Deductions and Credits You Need to Know</a></li><li><a href="https://www.kiplinger.com/taxes/what-is-the-tcja">The TCJA: What It Is and How Expiration and Proposed Changes Affect Your Taxes</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/taxes/tax-deductions/popular-tax-breaks-are-in-danger</link> <description> <![CDATA[ A number of tax breaks, including the home mortgage interest deduction, are in peril as lawmakers hunt for revenues to pay for the President's tax plan. ]]> </description> <guid isPermaLink="false">8uW2PZZdGpJ9zsvJFebJu9</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/2hSPHdo5DGwPKWUQ85cRmT.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Mon, 03 Feb 2025 12:34:00 +0000</pubDate> <category><![CDATA[taxes]]></category> <category><![CDATA[Tax-deductions]]></category> <author><![CDATA[ joy.taylor@futurenet.com (Joy Taylor) ]]></author> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/2hSPHdo5DGwPKWUQ85cRmT.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[picture of scissors cutting paper with &quot;tax&quot; written on it]]></media:text> <media:title type="plain"><![CDATA[picture of scissors cutting paper with &quot;tax&quot; written on it]]></media:title> </media:content> </item> <item> <title><![CDATA[ Five Reasons Not to Give Your Child Power of Attorney ]]></title> <dc:content><![CDATA[ <p>Appointing someone to act on your behalf under a <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/estate-planning/power-of-attorney">power of attorney</a> (POA) is one of the most important decisions you'll make in your <a data-analytics-id="inline-link" href="https://www.peakwealthplanning.com/post/estate-planning-checklist" target="_blank">estate planning process</a>. The POA grants significant authority over your finances, health care or both, so choosing wisely ensures that your wishes will be respected and carried out effectively. Here’s a deeper look into what you should consider before you grant POA to your child.</p><p>Key qualities to look for in a POA:</p><ul><li><strong>Trustworthiness. </strong>The person named in your POA, commonly referred to as your "agent" or "attorney-in-fact," will have legal authority to act on your behalf. It’s therefore vital that they are trustworthy, will prioritize your best interests and will follow your instructions.</li><li><strong>Competence and expertise. </strong>Ideally, the person you choose should be organized, detail-oriented and capable of managing financial or <a href="https://www.kiplinger.com/article/insurance/t027-c000-s002-how-to-pick-a-health-care-proxy.html">health care decisions</a>. Someone with experience in these areas — such as a <a href="https://www.kiplinger.com/retirement/ways-fiduciary-financial-planners-put-you-first">professional fiduciary</a> or financially savvy relative — can be a good choice.</li><li><strong>Emotional stability. </strong>Your agent must remain calm and logical in high-pressure or emotional situations, such as handling end-of-life decisions or managing your assets during a medical crisis.</li><li><strong>Proximity. </strong>While not mandatory, choosing someone who lives nearby can be helpful, especially for health care decisions or if frequent in-person actions are required (e.g. signing documents, meeting with attorneys).</li><li><strong>Willingness and availability. </strong>The role of an agent can be time-consuming and stressful. Ensure the person you choose is willing to take on the responsibility and has the time to dedicate to managing your affairs.</li></ul><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_KQr60TxC_a7GJFMMh_div' class='future__jwplayer'><div id='botr_KQr60TxC_a7GJFMMh_div'></div></div></div></div><h2 id="should-you-choose-your-child-2">Should you choose your child?</h2><p>Choosing an agent is a critical decision, and while many people consider naming their children, this option may not always be ideal. Here are five good reasons not to name your children in your power of attorney:</p><p><strong>1. Potential for family conflict</strong></p><p>If you have multiple children, appointing one child as your agent can lead to disagreements or jealousy among siblings. This may strain family relationships, especially if decisions made by the chosen child are perceived as unfair or self-serving.</p><p><strong>2. Lack of financial or legal expertise</strong></p><p>Managing someone else's financial or health care decisions can be complex. Your child may lack the necessary knowledge to handle these responsibilities effectively. Errors in judgment, even if unintentional, could have serious consequences for your finances or well-being.</p><p><strong>3. Emotional involvement</strong></p><p>Children, no matter how well meaning, may struggle to make objective decisions during emotionally charged situations. For example, in end-of-life health care decisions, they might allow their emotions to override your stated wishes or act out of guilt rather than logic.</p><p><strong>4. Conflicting priorities</strong></p><p>Your child may already have significant personal or professional obligations, such as managing their own family or career. Adding the responsibilities of a POA could overwhelm them, leading to delays or mistakes in managing your affairs.</p><p><strong>5. Risk of misuse or abuse of authority</strong></p><p>Although rare, there is always a risk that a child with POA might misuse the authority, whether intentionally or unintentionally. This could include mismanaging funds, making decisions that benefit them financially or ignoring your stated wishes. Choosing an impartial third party can mitigate this risk.</p><h2 id="alternative-solutions-to-naming-your-adult-child-as-poa-2">Alternative solutions to naming your adult child as POA</h2><p>If you decide not to appoint your child, consider naming:</p><ul><li>A trusted, objective relative with relevant expertise</li><li>A close friend or adviser who understands your wishes</li><li>A professional fiduciary, attorney or institution experienced in managing POA duties</li></ul><p>This approach ensures decisions are made objectively, professionally and in line with your best interests.</p><h2 id="when-to-consider-a-professional-agent-2">When to consider a professional agent</h2><p>If you’re concerned about conflicts of interest, emotional decision-making or lack of expertise, a professional agent might be a better option. Examples include:</p><ul><li>Attorneys</li><li>Certified public accountants (<a href="https://www.kiplinger.com/personal-finance/cfp-vs-cpa-whats-the-difference">CPAs</a>)</li><li>Licensed fiduciaries or trust companies</li></ul><p>These professionals are experienced, impartial and legally bound to act in your best interests.</p><h2 id="legal-and-practical-steps-to-take-2">Legal and practical steps to take</h2><ul><li><strong>Define your wishes clearly. </strong>Draft a <a href="https://www.peakwealthplanning.com/post/4-parts-of-an-estate-strategy" target="_blank">comprehensive POA document</a> that spells out your preferences, powers granted and any limitations.</li><li><strong>Consult an attorney. </strong>Work with an <a href="https://www.kiplinger.com/retirement/estate-plan-basic-components">estate planning</a> attorney to ensure your POA document is legally valid and tailored to your specific needs and state laws.</li><li><strong>Communicate with your chosen agent. </strong>Have an open discussion with the person you’re considering to ensure they’re comfortable with their <a href="https://www.kiplinger.com/slideshow/retirement/t021-s014-what-are-the-duties-for-financial-powers-of-attorn/index.html">power of attorney duties</a> and fully understand your wishes.</li><li><strong>Review and update regularly. </strong>Life circumstances change. <a href="https://www.peakwealthplanning.com/post/keep-your-trustees-and-agents-up-to-date" target="_blank">Revisit your POA decisions</a> every few years to ensure your chosen representative is still the best fit.</li></ul><h2 id="risks-of-not-having-a-poa-2">Risks of not having a POA</h2><p>If you do not designate a representative in a POA, decisions about your finances and health care could fall to a court-appointed guardian or conservator. This process can be lengthy and costly and may result in someone you wouldn’t have chosen managing your affairs.</p><h2 id="final-thoughts-7">Final thoughts</h2><p>Is your retirement savings plan on track? Is your education funding strategy for the next generation in place? Are you prepared with a tax-efficient plan for transferring wealth and minimizing estate taxes? <a data-analytics-id="inline-link" href="https://www.peakwealthplanning.com/hire-us" target="_blank">The Peak Wealth Planning team can assist</a>.</p><p><em>Peak Wealth Planning, LLC provides estate guidance in the context of financial planning. However, your estate attorney and CPA should be the final authority on your estate documents and tax matters.</em></p><p><em>Want more guidance on retirement savings? Sign up for Kiplinger's six-week series, </em><a data-analytics-id="inline-link" href="https://www.kiplinger.com/business/get-the-invest-for-retirement-series"><em>Invest for Retirement</em></a><em>.</em></p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/retirement/estate-planning/power-of-attorney">Why You Need a Power of Attorney</a></li><li><a href="https://www.kiplinger.com/retirement/power-of-attorney-types-which-is-right-for-you">Which Type of Power of Attorney Is Right for You?</a></li><li><a href="https://www.kiplinger.com/retirement/how-to-choose-power-of-attorney-when-remarried">How to Choose Your Power of Attorney When You’re Remarried</a></li><li><a href="https://www.kiplinger.com/retirement/estate-planning/advance-directive">Why You Need an Advance Directive</a></li><li><a href="https://www.kiplinger.com/retirement/financial-abuse-how-to-protect-older-adults">Seven Ways to Protect Older Adults from Financial Abuse</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/retirement/reasons-not-to-give-your-child-power-of-attorney</link> <description> <![CDATA[ When drawing up powers of attorney, older parents will most likely name adult children as their representatives. But is that always the smart choice? ]]> </description> <guid isPermaLink="false">8EipXaQNfEnn9hZCQ5XS3d</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/MWEHYBVKjUfZWuWifc3H3N.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Mon, 03 Feb 2025 10:35:00 +0000</pubDate> <category><![CDATA[Retirement]]></category> <category><![CDATA[Wealth-creation]]></category> <category><![CDATA[Estate-planning]]></category> <category><![CDATA[Retirement-planning]]></category> <category><![CDATA[Investing]]></category> <category><![CDATA[Wealth-management]]></category> <author><![CDATA[ info@peakwealthplanning.com (Peter Newman, CFA) ]]></author> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/MWEHYBVKjUfZWuWifc3H3N.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[A dad and his adult son stand next to each other and look at the son's smartphone.]]></media:text> <media:title type="plain"><![CDATA[A dad and his adult son stand next to each other and look at the son's smartphone.]]></media:title> </media:content> </item> <item> <title><![CDATA[ What the Great Wealth Transfer Means for Financial Advisers ]]></title> <dc:content><![CDATA[ <p>The Great Wealth Transfer is underway and will continue to have an impact on familial wealth over the next two decades. While awareness of this transfer may be high at this point, financial advisers play the critical role of ensuring their clients take action to follow through on suggested strategies to safeguard wealth.</p><p>And there’s room to improve as, according to <a data-analytics-id="inline-link" href="https://news.northwesternmutual.com/planning-and-progress-study-2024" target="_blank">research by Northwestern Mutual</a>, just 26% of Americans expect to leave behind an inheritance.</p><p>Wealth transfer isn't just a financial issue; it’s a deeply personal process that can profoundly impact family relationships. <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/estate-planning/things-you-should-know-about-estate-planning">Estate planning</a> is complex and carries significant emotional weight, especially for families with substantial assets. When developing an estate plan, the goal is to minimize conflict while ensuring each family member is cared for. Remember that you are one of your client’s most valuable resources.</p><p>Since the topic is emotionally charged, your clients may not want to tackle it. However, it is essential that you proactively raise estate planning with clients and encourage them to act before it’s too late in order to fully leverage planning strategies.</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_KQr60TxC_a7GJFMMh_div' class='future__jwplayer'><div id='botr_KQr60TxC_a7GJFMMh_div'></div></div></div></div><p>Estate planning is also logistically challenging. Even well-meaning plans can crack under pressure, leaving heirs to deal with unnecessary stress and legal entanglements. As a financial adviser, your expertise provides guidance and offers a critical, unbiased perspective to help families navigate this difficult but necessary process.</p><h2 id="where-to-begin-when-developing-an-estate-plan-with-your-clients-2">Where to begin when developing an estate plan with your clients</h2><p>I have seen many instances of both successful and detrimental <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/wealth-transfer-is-about-more-than-just-money">wealth transfers</a> throughout my career. I recall a case in which an estate plan left a family member in control of a significant <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/getting-an-inheritance-things-to-consider">inheritance</a>, but the individual failed to follow proper procedures or document decisions. This lack of discipline and consistency created costly problems for the heirs, including multiple trips to court.</p><p>Unfortunately, this situation is not uncommon. When estate plans are not executed properly, they can become more expensive and time-consuming than if they had been handled properly.</p><p>Often, the family member assigned to oversee a plan lacks the specific financial expertise needed to manage a wealth transfer, despite how smart they might be. While you might be aware that it is crucial to involve professionals who specialize in estate planning, your clients might think otherwise. Encourage them to consider both the emotional impact and the logistical challenges of wealth transfer early in the planning process. These two sides of estate planning are distinct and require separate but equally thoughtful strategies.</p><p>A helpful way to broach this topic is to reference the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/great-wealth-transfer-how-families-can-get-on-the-same-page">Great Wealth Transfer</a> to ease into a broader estate planning conversation. When guiding your clients through estate planning, the following considerations are helpful to keep in mind.</p><p><strong>Clearly define ownership and roles. </strong>When dealing with <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/leaving-property-to-multiple-heirs-what-to-consider">multiple heirs</a> — particularly with complex assets like real estate or family businesses — it’s vital to establish a structured plan. Will your children share ownership equally, or will some buy out others? Details like these should be discussed now to prevent future disagreements. A well-defined strategy ensures everyone knows their roles and responsibilities.</p><p><strong>Family buyout provisions. </strong>Pre-arranged buyout options can be a lifesaver if one heir wants to sell an asset while another prefers to keep it. These provisions help maintain family harmony and provide a clear path for handling such disputes.</p><p><strong>Regularly update estate plans. </strong>While your client may already have an estate plan, ask when it was created. Laws are routinely updated, and major life events can change minds. For example:</p><ul><li><strong>Life changes.</strong> Significant life events — like marriages, divorces, births or deaths — should prompt an immediate review of an estate plan. Many people neglect to make these updates, leaving outdated beneficiaries or instructions that no longer reflect their intentions.</li><li><strong>Tax law changes.</strong> With ever-evolving tax laws, failing to adjust an estate plan can lead to higher taxes or missed opportunities for savings. Keeping up with these changes is crucial to maximizing your client’s wealth.</li></ul><p><strong>Plan for liquidity needs. </strong>Ensure there is enough liquidity (cash or easily sold assets) to cover <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/changes-to-estate-tax-are-coming-congress-options">estate taxes</a>, pay off debts or fund family buyouts without having to sell cherished assets. A lack of liquidity can force heirs into difficult decisions at emotionally vulnerable times.</p><p><strong>Understand tax implications. </strong>Estate taxes can be significant if not planned properly. <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/financial-strategies-for-high-net-worth-individuals">High-net-worth families</a> often underestimate the importance of tax mitigation strategies, such as <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/revocable-trusts-the-most-common-trusts-in-estate-planning">trusts</a> or strategic gifting. You must be proactive in exploring these options with your clients.</p><h2 id="how-to-initiate-estate-planning-conversations-and-why-they-matter-2">How to initiate estate planning conversations and why they matter</h2><p>Estate planning conversations are inherently sensitive but avoiding them only increases the risk of family conflict. Many clients struggle to start these discussions, fearing hurt feelings or assuming that “everything will work out.” In reality, transparency about their wishes and expectations makes for a far smoother transition.</p><p>Encourage your clients to begin by reflecting on <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/in-estate-planning-your-values-can-play-a-key-role">their values</a> around wealth and legacy. Asking simple, open-ended questions about what they hope to achieve can open up meaningful dialogue. These conversations shouldn’t be put off until health declines or an unexpected event occurs. The earlier an estate plan is finalized, the more flexibility your clients will have to structure their legacy effectively.</p><p>Don’t wait for clients to initiate the topic; take the lead. As a financial adviser, you can facilitate these discussions alongside other professionals, like trust officers and estate attorneys. Your role is to balance financial strategy with family dynamics, guiding clients toward a comprehensive plan that meets both practical and emotional needs.</p><p>Estate planning isn’t just about managing assets; it’s about preserving relationships and protecting family bonds. Addressing these issues thoughtfully and with the help of a team of professionals ensures that your clients’ wealth can be a blessing, not a burden, for future generations. By proactively discussing estate plans, you can help your clients mitigate potential conflicts and secure their legacy.</p><p>Remember, you are there to guide your clients through this delicate and complex process. Encourage them to arrange family meetings, <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/estate-plan-check-ups-dont-just-set-it-and-forget-it">review their estate plans</a> regularly and explore trust structures that align with their goals. Above all, recognize the personal and nuanced nature of estate planning and handle each case with the care it deserves.</p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/retirement/wealth-transfer-is-about-more-than-just-money">Wealth Transfer Is About More Than Just Money</a></li><li><a href="https://www.kiplinger.com/retirement/inheritance-simplified-how-assets-are-passed-down">Inheritance, Simplified: How Assets Are Passed Down</a></li><li><a href="https://www.kiplinger.com/retirement/key-pillars-of-wealth-management-of-the-future">The Four Key Pillars of Wealth Management of the Future</a></li><li><a href="https://www.kiplinger.com/retirement/stages-of-retirement-and-how-to-skip-some-of-them">The Five Stages of Retirement (and How to Skip Three of Them)</a></li><li><a href="https://www.kiplinger.com/retirement/what-i-wish-id-known-before-i-retired">Five Things I Wish I’d Known Before I Retired</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/retirement/what-the-great-wealth-transfer-means-for-financial-advisers</link> <description> <![CDATA[ Clients depend on their financial advisers to encourage them to tackle estate planning and guide them through complex strategies and potential family disputes. ]]> </description> <guid isPermaLink="false">8wD2JBwRyFDieMshwN3fmh</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/ZVFAJDkhzNwsqVGeesBRoM.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Mon, 03 Feb 2025 10:35:00 +0000</pubDate> <category><![CDATA[Retirement]]></category> <category><![CDATA[Estate-planning]]></category> <category><![CDATA[Retirement-planning]]></category> <category><![CDATA[Wealth-creation]]></category> <category><![CDATA[Investing]]></category> <category><![CDATA[Wealth-management]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/ZVFAJDkhzNwsqVGeesBRoM.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[A financial adviser talks with an older couple at their dining room table.]]></media:text> <media:title type="plain"><![CDATA[A financial adviser talks with an older couple at their dining room table.]]></media:title> </media:content> </item> <item> <title><![CDATA[ Investment Management: A Return to Simplicity ]]></title> <dc:content><![CDATA[ <p>The investment management industry seems to have come full circle. After years of increasing complexity — moving from mutual funds to separately managed accounts (SMAs) and unified managed accounts (UMAs) — we’re witnessing a fascinating shift back toward simplicity. But this time, it’s simplicity with a purpose.</p><h2 id="the-evolution-of-portfolio-construction-2">The evolution of portfolio construction</h2><p>The industry’s journey has been driven by a noble goal: providing clients with increasingly sophisticated and customized investment solutions. We’ve built platforms that can help accommodate different managers for equities and fixed income, helping to offer increased flexibility in portfolio construction. Yet many advisers are now asking a fundamental question: How do we stack these pieces together into something meaningful for our clients, without sacrificing scalability in risk management and growth of the business?</p><p>ETF blends appear to show improved client retention rates and greater demonstrated staying power compared to some of the more complex alternatives. This trend could suggest that customization remains important, but there’s also significant value in packaging solutions in a way that helps enhance the client experience and promotes long-term investment discipline.</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_KQr60TxC_a7GJFMMh_div' class='future__jwplayer'><div id='botr_KQr60TxC_a7GJFMMh_div'></div></div></div></div><h2 id="finding-balance-core-and-satellite-approach-2">Finding balance: Core and satellite approach</h2><p>One of the current challenges for many advisers is finding the right balance between scalability and customization. Many advisers are adopting a hub-and-spoke approach, maintaining a core allocation while offering targeted solutions for specific client outcomes. These solutions might include customized tax management strategies or focused exposure to <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/what-to-know-about-alternative-investments">alternative asset classes</a>.</p><p>Advisers aren’t necessarily seeking to reinvent their entire approach or move away from using a model portfolio. Instead, they’re looking for ways to shore up their core strategies by stacking specific elements to address individual client needs. This “tug of war” between standardization and customization represents one of the most significant challenges — and opportunities — in investment management today.</p><h2 id="the-alternative-investment-dilemma-2">The alternative investment dilemma</h2><p>One debate that has arisen in our industry over recent years centers around the integration of alternative investments into ETF structures. The fundamental appeal of alternative investments lies in two key characteristics:</p><ul><li>Their ability to zig when markets zag</li><li>The illiquidity premium — the additional return investors earn for accepting limited liquidity</li></ul><p>While several fund providers have ventured into this space, there are legitimate concerns about whether this approach truly serves clients’ interests. When we package historically illiquid investments into highly liquid vehicles, we risk creating a fundamental mismatch. Advisers might want to carefully consider whether these new structures truly deliver the intended benefits of the underlying asset class. They might also ask: Will clients genuinely capture the advantages of private credit exposure? Or are they simply holding another <a data-analytics-id="inline-link" href="https://www.kiplinger.com/slideshow/investing/t022-s002-9-things-you-must-know-about-etfs/index.html">ETF</a> that happens to have different underlying assets?</p><p>More importantly, we should consider questioning whether these structures can maintain their promised liquidity during market stress. What happens when everyone rushes for the exits simultaneously? The ability to honor redemptions during challenging market conditions is an important consideration.</p><h2 id="human-behavior-the-financial-industry-s-persistent-challenge-2">Human behavior: The financial industry's persistent challenge</h2><p>The most significant challenge in investment management typically isn’t portfolio construction — it’s human behavior. While markets have historically delivered strong long-term returns, the average investor consistently typically captures only a fraction of these returns. Even professionally managed portfolios in recent years seem to have struggled to get close to or match their index targets.</p><p>As Morgan Housel astutely observed in his book, <a data-analytics-id="inline-link" href="https://www.penguinrandomhouse.com/books/672339/same-as-ever-by-morgan-housel/" target="_blank"><em>Same as Ever: A Guide to What Never Changes</em></a>, many investors believe that adopting a long-term perspective eliminates the need to manage short-term challenges. The reality is that a 30-year investment horizon consists of 30 one-year periods, each requiring investors to stay the course through uncertainty and <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/market-volatility-avoid-common-investing-pitfalls">volatility</a>. That level of commitment and patience is difficult to achieve, especially as our lives, circumstances and goals change.</p><h2 id="best-practices-for-modern-portfolio-management-2">Best practices for modern portfolio management</h2><p>Given all this, what are some ways advisers can help strike a balance between utilizing advanced investment strategies and creating more simplicity for their clients? The firms who are actively pursuing this balance typically share several key characteristics:</p><ul><li><strong>They design portfolios based on who their clients actually are, </strong><em><strong>not </strong></em><strong>who they wish them to be.</strong> This might mean sacrificing theoretical portfolio optimization in favor of structures that clients can stick with through market cycles and offering solutions like <a href="https://www.kiplinger.com/investing/should-you-be-investing-in-buffered-etfs">buffered ETFs</a>, which can provide psychological confidence for the consumer.</li><li><strong>They align their communication with their portfolio management style.</strong> There’s little value — and potential harm — in providing weekly updates on a portfolio that rebalances quarterly. This misalignment in communication can create unnecessary anxiety and prompt ill-timed requests from clients.</li><li><strong>They understand the power of 1%.</strong> While advisers may never completely bridge the gap between theoretical and realized returns, even modest improvements in investor behavior can generate significant value. Moving from a 5% to 6% realized return can potentially mean hundreds of thousands of dollars in preserved wealth over time.</li></ul><h2 id="looking-ahead-2">Looking ahead</h2><p>Investment management is always evolving. As we navigate the latest evolution, the key to progress lies not in choosing between simplicity and sophistication, but in thoughtfully combining them. Some of the most effective solutions will likely be those that maintain sophisticated underlying management while presenting a straightforward experience to clients.</p><p>For advisers, this could mean simultaneously focusing on portfolio construction and creating an investment experience that helps clients maintain their commitment through various market conditions. After all, the most well-designed portfolio in the world provides little value if clients can’t stick with it when it matters most.</p><p><em>1/25 – 4186911W</em> <em>–</em> <em>AE Wealth Management, LLC (AEWM) is an SEC Registered Investment Adviser (RIA) located in Topeka, Kansas. Registration does not denote any level of skill or qualification. Information regarding the RIA offering the investment advisory services can be found on </em><a data-analytics-id="inline-link" href="https://brokercheck.finra.org/" target="_blank"><em>brokercheck.finra.org</em></a><em>. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. The personal opinions expressed by Ben Sullivan are his alone and may not be those of AE Wealth Management or the firm providing this report to you. This information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. None of the information contained herein shall constitute an offer to sell or solicit any offer to buy a security or insurance product.</em></p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/retirement/key-pillars-of-wealth-management-of-the-future">The Four Key Pillars of Wealth Management of the Future</a></li><li><a href="https://www.kiplinger.com/retirement/what-the-great-wealth-transfer-means-for-financial-advisers">What the Great Wealth Transfer Means for Financial Advisers</a></li><li><a href="https://www.kiplinger.com/personal-finance/financial-strategies-for-high-net-worth-individuals">Five Financial Strategies for High-Net-Worth Individuals</a></li><li><a href="https://www.kiplinger.com/retirement/types-of-trusts-for-high-net-worth-estates">Eight Types of Trusts for Owners of High-Net-Worth Estates</a></li><li><a href="https://www.kiplinger.com/retirement/ways-to-generate-retirement-income">10 Ways to Generate Retirement Income</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/retirement/investment-management-a-return-to-simplicity</link> <description> <![CDATA[ Here's how financial professionals can find the sweet spot between using sophisticated investment strategies and creating more simplicity for their clients. ]]> </description> <guid isPermaLink="false">9sBAn9bH5seJrSBvjMWVFi</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/Mq5sFkxgy6PduKXoaqx2aJ.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Mon, 03 Feb 2025 10:30:00 +0000</pubDate> <category><![CDATA[Retirement]]></category> <category><![CDATA[Investing]]></category> <category><![CDATA[Retirement-planning]]></category> <category><![CDATA[Wealth-creation]]></category> <category><![CDATA[Wealth-management]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/Mq5sFkxgy6PduKXoaqx2aJ.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[A yellow sticky note says Keep It Simple, against a blue background.]]></media:text> <media:title type="plain"><![CDATA[A yellow sticky note says Keep It Simple, against a blue background.]]></media:title> </media:content> </item> <item> <title><![CDATA[ States That Won't Tax Your Retirement Income in 2025 ]]></title> <dc:content><![CDATA[ <p>Living in one of these states that don’t tax retirement income may sound exciting. Not only could you pay fewer <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/602202/taxes-in-retirement-how-all-50-states-tax-retirees"><u>taxes in retirement</u></a>, but you may save by not paying any state income tax. However, some states still tax certain earnings, so you may want to consult a tax professional depending on your type of<u> </u>taxable income.</p><p>But if your retirement income includes Social Security benefits, distributions from a 401(k) or IRA, or a <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/601819/states-that-wont-tax-your-pension"><u>pension</u></a>, read on: you won’t see a tax bill from any of the states listed below.</p><h2 id="states-with-no-retirement-taxes-2">States with no retirement taxes</h2><p>While these states don’t tax “traditional retirement income,” you may still have to pay tax on other income types you earn in retirement, like wages, interest, and dividends.</p><p>Not to mention, some states on this list have relatively high sales taxes, and several may have <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/inheritance/601551/states-with-scary-death-taxes"><u>estate and inheritance taxes</u></a>, too. These factors can influence how much money you could save as a resident of these states and may affect future outlays to your heirs.</p><p><em>Plus — don't forget: federal income tax applies in these states. </em></p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_hEB3ir3W_a7GJFMMh_div' class='future__jwplayer'><div id='botr_hEB3ir3W_a7GJFMMh_div'></div></div></div></div><h3 class="article-body__section" id="section-alaska"><span>Alaska</span></h3><figure class="van-image-figure inline-layout" data-bordeaux-image-check ><div class='image-full-width-wrapper'><div class='image-widthsetter' style="max-width:2121px;"><p class="vanilla-image-block" style="padding-top:66.67%;"><img id="dEAqnTfZmj2jBZDCSoMyVf" name="GettyImages-589734479" alt="Snowcapped mountain peak in Alaska with forest in the foreground." src="https://cdn.mos.cms.futurecdn.net/dEAqnTfZmj2jBZDCSoMyVf.jpg" mos="" align="middle" fullscreen="" width="2121" height="1414" attribution="" endorsement="" class=""></p></div></div><figcaption itemprop="caption description" class=" inline-layout"><span class="credit" itemprop="copyrightHolder">(Image credit: Getty Images)</span></figcaption></figure><h2 id="alaska-income-tax-2">Alaska income tax</h2><p><a data-analytics-id="inline-link" href="https://www.kiplinger.com/state-by-state-guide-taxes/alaska"><u>Alaska</u></a> has <a data-analytics-id="inline-link" href="https://www.kiplinger.com/slideshow/taxes/t054-s001-states-without-income-tax/index.html"><u>no state income tax</u></a>, meaning you won’t have to pay state taxes on:</p><ul><li>Social Security benefits or pension income.</li><li>401(k) and IRA distributions.</li></ul><p><strong>Some more good news?</strong> Alaska is one of the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/states-with-no-inheritance-estate-tax"><u>states with no inheritance or estate tax</u></a>. And you could also get paid to live in the state through Alaska’s <a data-analytics-id="inline-link" href="https://pfd.alaska.gov/" target="_blank"><u>Permanent Fund Dividend</u></a>, which is $1,702 this year.</p><p>Here are a few other things to keep in mind about paying Alaska tax:</p><ul><li>While there isn’t necessarily an Alaskan sales tax, businesses could pay excise taxes and pass these along as fees to their consumers.</li><li>Local sales taxes in Alaska can reach as high as 7.85% in some areas, according to the <a href="https://taxfoundation.org/data/all/state/2024-sales-taxes/" target="_blank"><u>Tax Foundation</u></a>.</li></ul><h3 class="article-body__section" id="section-florida"><span>Florida</span></h3><figure class="van-image-figure inline-layout" data-bordeaux-image-check ><div class='image-full-width-wrapper'><div class='image-widthsetter' style="max-width:2120px;"><p class="vanilla-image-block" style="padding-top:66.70%;"><img id="pfwu2JDCW8iqdyUJQojXTJ" name="GettyImages-2184390540" alt="Floridian beach in Miami with a sandy pathway leading to the ocean, and palm trees with the sun peeking through." src="https://cdn.mos.cms.futurecdn.net/pfwu2JDCW8iqdyUJQojXTJ.jpg" mos="" align="middle" fullscreen="" width="2120" height="1414" attribution="" endorsement="" class=""></p></div></div><figcaption itemprop="caption description" class=" inline-layout"><span class="credit" itemprop="copyrightHolder">(Image credit: Getty Images)</span></figcaption></figure><h2 id="florida-income-tax-2">Florida income tax</h2><p>Sunshine and sandy beaches aren’t the only <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/reasons-people-retire-in-florida"><u>reasons people retire in Florida</u></a>. The state also offers hefty tax breaks, like no state taxes on:</p><ul><li>Pension distributions.</li><li>401(ks), 403(b)s, and IRA distributions.</li><li>Estate or inheritance tax.</li></ul><p>Floridians pay a state sales tax. However, many essentials (like groceries) are tax-exempt. And <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/property-tax-explained-what-homeowners-need-to-know"><u>property taxes</u></a> are relatively low compared to other states.</p><h3 class="article-body__section" id="section-illinois"><span>Illinois</span></h3><figure class="van-image-figure inline-layout" data-bordeaux-image-check ><div class='image-full-width-wrapper'><div class='image-widthsetter' style="max-width:2120px;"><p class="vanilla-image-block" style="padding-top:66.70%;"><img id="AsSx6c48JhFPva2wvSFH6b" name="GettyImages-1181973765" alt="Red barn in Illinois landscape with grassy field, cornfield, and a couple trees." src="https://cdn.mos.cms.futurecdn.net/AsSx6c48JhFPva2wvSFH6b.jpg" mos="" align="middle" fullscreen="" width="2120" height="1414" attribution="" endorsement="" class=""></p></div></div><figcaption itemprop="caption description" class=" inline-layout"><span class="credit" itemprop="copyrightHolder">(Image credit: Getty Images)</span></figcaption></figure><h2 id="illinois-state-income-tax-2">Illinois state income tax</h2><p><a data-analytics-id="inline-link" href="https://www.kiplinger.com/state-by-state-guide-taxes/illinois"><u>Illinois</u></a> has a flat income tax rate of 4.95%. However, the state doesn’t tax retirement income, meaning Social Security benefits, pensions, IRA, and 401(k) distributions are state tax-exempt.</p><p>However, Illinois does tax:</p><ul><li>Investment income.</li><li>Gas (Illinois has one of the <a href="https://www.kiplinger.com/taxes/state-tax/603259/states-with-the-highest-gas-taxes"><u>highest gas taxes</u></a> in the U.S.).</li><li>Estates worth more than $4 million.</li><li>Groceries (Illinois is one of the few <a href="https://www.kiplinger.com/taxes/states-that-still-tax-groceries"><u>states that still tax groceries</u></a>, but will eliminate the 1% grocery tax on many foods next year).</li></ul><p>Additionally, the Prairie State has one of the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/state-tax/603200/states-with-the-highest-sales-taxes"><u>highest sales taxes</u></a> in the country.</p><h3 class="article-body__section" id="section-iowa"><span>Iowa</span></h3><figure class="van-image-figure inline-layout" data-bordeaux-image-check ><div class='image-full-width-wrapper'><div class='image-widthsetter' style="max-width:3870px;"><p class="vanilla-image-block" style="padding-top:56.18%;"><img id="tvZTWdki2hGUh8CY6X7n84" name="GettyImages-1162232627" alt="Aerial view of rolling farmlands in Iowa." src="https://cdn.mos.cms.futurecdn.net/tvZTWdki2hGUh8CY6X7n84.jpg" mos="" align="middle" fullscreen="" width="3870" height="2174" attribution="" endorsement="" class=""></p></div></div><figcaption itemprop="caption description" class=" inline-layout"><span class="credit" itemprop="copyrightHolder">(Image credit: Getty Images)</span></figcaption></figure><h2 id="iowa-state-income-tax-2">Iowa state income tax</h2><p><a data-analytics-id="inline-link" href="https://www.kiplinger.com/state-by-state-guide-taxes/iowa"><u>Iowa</u></a> is one of the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/601814/most-tax-friendly-states-for-retirees"><u>most tax-friendly states for retirees</u></a>. That’s largely because the state does not tax retirement income for retirees 55 and older.</p><p>Tax-exempt retirement income in Iowa includes:</p><ul><li>Roth conversion income.</li><li>Distributions from qualified 401(k), 403(b), and 457(b) plans.</li><li>SEP plans.</li><li>SIMPLE retirement plans.</li></ul><p><em>Note: For a complete list of all types of tax-exempt retirement income, visit the state’s </em><a data-analytics-id="inline-link" href="https://revenue.iowa.gov/taxes/tax-guidance/individual-income-tax/retirement-income-tax-guidance" target="_blank"><u><em>Department of Revenue</em></u></a><em> website. </em></p><p><strong>Regardless of age, Social Security benefits are not taxed in Iowa. </strong>Additionally, the state recently moved to a flat 3.8% tax rate on other types of income (like wages and investment income).</p><h3 class="article-body__section" id="section-mississippi"><span>MIssissippi</span></h3><figure class="van-image-figure inline-layout" data-bordeaux-image-check ><div class='image-full-width-wrapper'><div class='image-widthsetter' style="max-width:3022px;"><p class="vanilla-image-block" style="padding-top:80.68%;"><img id="QXXpazMBP8J4fPSfSBF6cJ" name="GettyImages-2136081477" alt="Mississippi river in Holly Springs with a bright blue and overcast sky" src="https://cdn.mos.cms.futurecdn.net/QXXpazMBP8J4fPSfSBF6cJ.jpg" mos="" align="middle" fullscreen="" width="3022" height="2438" attribution="" endorsement="" class=""></p></div></div><figcaption itemprop="caption description" class=" inline-layout"><span class="credit" itemprop="copyrightHolder">(Image credit: Getty Images)</span></figcaption></figure><h2 id="mississippi-income-tax-on-retirement-2">Mississippi income tax on retirement</h2><p><a data-analytics-id="inline-link" href="https://www.kiplinger.com/state-by-state-guide-taxes/mississippi"><u>Mississippi</u></a> exempts Social Security benefits, pensions, 401(k), and IRA distributions from state income tax, making The Hospitality State one of the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/601814/most-tax-friendly-states-for-retirees"><u>most tax-friendly states for retirees</u></a>.</p><p>However, you’ll still pay a flat income tax rate of 4.4% on all other types of income that exceed $10,000.</p><p>Here are a few more things to know about Mississippi tax:</p><ul><li>Mississippi taxes groceries at a 7% tax rate.</li><li>There is no estate or inheritance tax in Mississippi.</li><li>Mississippi’s income tax rate is set to gradually decrease annually until reaching 4% in 2026.</li></ul><h3 class="article-body__section" id="section-nevada"><span>Nevada</span></h3><figure class="van-image-figure inline-layout" data-bordeaux-image-check ><div class='image-full-width-wrapper'><div class='image-widthsetter' style="max-width:2121px;"><p class="vanilla-image-block" style="padding-top:66.67%;"><img id="J2MXovqyCxDnAsnxfLaV8B" name="GettyImages-643844740" alt="Nevada canyon in Las Vegas with desert foliage and a bright blue sky." src="https://cdn.mos.cms.futurecdn.net/J2MXovqyCxDnAsnxfLaV8B.jpg" mos="" align="middle" fullscreen="" width="2121" height="1414" attribution="" endorsement="" class=""></p></div></div><figcaption itemprop="caption description" class=" inline-layout"><span class="credit" itemprop="copyrightHolder">(Image credit: Getty Images)</span></figcaption></figure><h2 id="nevada-income-tax-2">Nevada income tax</h2><p><a data-analytics-id="inline-link" href="https://www.kiplinger.com/state-by-state-guide-taxes/nevada"><u>Nevada</u></a> has no income tax, which means the following types of earnings are state-tax-free:</p><ul><li>Retirement income.</li><li>Investment income.</li><li>Wages.</li></ul><p><strong>Additionally, Nevada has no estate or inheritance taxes. </strong>But, not everything is tax-free in Nevada:</p><ul><li>Homeowners still have to pay property taxes in Nevada, although the state has some of the <a href="https://www.kiplinger.com/taxes/states-with-the-lowest-property-tax"><u>lowest property taxes</u></a> in the country.</li><li>The Nevada sales tax rate is 6.85%, which is higher than in most states.</li></ul><h3 class="article-body__section" id="section-new-hampshire"><span>New Hampshire</span></h3><figure class="van-image-figure inline-layout" data-bordeaux-image-check ><div class='image-full-width-wrapper'><div class='image-widthsetter' style="max-width:2119px;"><p class="vanilla-image-block" style="padding-top:66.73%;"><img id="jGkoVS3UKaTskX994CiKmW" name="GettyImages-1465256229" alt="rural New Hampshire landscape." src="https://cdn.mos.cms.futurecdn.net/jGkoVS3UKaTskX994CiKmW.jpg" mos="" align="middle" fullscreen="" width="2119" height="1414" attribution="" endorsement="" class=""></p></div></div><figcaption itemprop="caption description" class=" inline-layout"><span class="credit" itemprop="copyrightHolder">(Image credit: Getty Images)</span></figcaption></figure><h2 id="new-hampshire-income-tax-2">New Hampshire income tax</h2><p><a data-analytics-id="inline-link" href="https://www.kiplinger.com/state-by-state-guide-taxes/new-hampshire"><u>New Hampshire</u></a> exempts retirement income from tax since the state doesn’t have a regular income tax. This means that you won’t have to pay tax on:</p><ul><li>Social Security benefits.</li><li>Pensions.</li><li>IRAs.</li><li>401(k) and other distributions.</li></ul><p>Additionally, the Granite State is one of <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/new-hampshire-mobile-home-and-condo-property-taxes"><u>five states with no sales tax</u></a>. But while the interest and dividends state tax has also been repealed, some <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/new-hampshire-mobile-home-and-condo-property-taxes"><u>New Hampshire mobile home and Condo property taxes have recently tripled</u></a>.</p><h3 class="article-body__section" id="section-pennsylvania"><span>Pennsylvania</span></h3><figure class="van-image-figure inline-layout" data-bordeaux-image-check ><div class='image-full-width-wrapper'><div class='image-widthsetter' style="max-width:2116px;"><p class="vanilla-image-block" style="padding-top:66.92%;"><img id="fmbmwWEgPwGuan2pGEor5m" name="GettyImages-157487746" alt="Blue train on tracks cutting through scenic Pennsylvania mountain range." src="https://cdn.mos.cms.futurecdn.net/fmbmwWEgPwGuan2pGEor5m.jpg" mos="" align="middle" fullscreen="" width="2116" height="1416" attribution="" endorsement="" class=""></p></div></div><figcaption itemprop="caption description" class=" inline-layout"><span class="credit" itemprop="copyrightHolder">(Image credit: Getty Images)</span></figcaption></figure><h2 id="pennsylvania-taxes-on-income-2">Pennsylvania taxes on income</h2><p>Pennsylvania’s flat income tax rate is 3.07%. But you won’t be taxed on certain types of income:</p><ul><li>Pensions.</li><li>Distributions from IRAs and 401(k)s.</li><li>Social Security.</li></ul><p>You will be taxed on investment income and wages in <a data-analytics-id="inline-link" href="https://www.kiplinger.com/state-by-state-guide-taxes/pennsylvania"><u>Pennsylvania</u></a>. Also, there are local income taxes, so you may not save as much as you think on your tax bill.</p><p><strong>On top of that, Pennsylvania levies a hefty inheritance tax:</strong></p><ul><li>Children over 21 years old pay an inheritance tax of 4.5% in Pennsylvania.</li><li>All other heirs may face a tax rate of up to 15%.</li></ul><p><em>Note: Children 21 and younger are exempt from Pennsylvania’s inheritance tax. </em></p><p><strong>Related:</strong> <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/when-to-expect-your-pa-property-tax-rent-rebate"><u>Pennsylvania Property Tax and Rent Rebate: Will You Get One?</u></a></p><h3 class="article-body__section" id="section-south-dakota"><span>South Dakota</span></h3><figure class="van-image-figure inline-layout" data-bordeaux-image-check ><div class='image-full-width-wrapper'><div class='image-widthsetter' style="max-width:2120px;"><p class="vanilla-image-block" style="padding-top:66.70%;"><img id="nHdmtBmrjjWcGtguVfim9D" name="GettyImages-2167428708" alt="South Dakota landscape with a buffalo against a sunset." src="https://cdn.mos.cms.futurecdn.net/nHdmtBmrjjWcGtguVfim9D.jpg" mos="" align="middle" fullscreen="" width="2120" height="1414" attribution="" endorsement="" class=""></p></div></div><figcaption itemprop="caption description" class=" inline-layout"><span class="credit" itemprop="copyrightHolder">(Image credit: Getty Images)</span></figcaption></figure><h2 id="south-dakota-taxes-for-retirees-2">South Dakota taxes for retirees</h2><p>Because <a data-analytics-id="inline-link" href="https://www.kiplinger.com/state-by-state-guide-taxes/south-dakota"><u>South Dakota</u></a> doesn’t tax personal income, your retirement income is safe from state taxes. You’ll also pay no state tax on:</p><ul><li>Income from dividends or interest in South Dakota.</li><li>South Dakota inheritance or estate taxes.</li></ul><p>…But, your groceries may be a little pricier. Here’s some information on the South Dakota grocery tax:</p><ul><li>Groceries are taxable at a rate of 4.2%.</li><li>South Dakota doesn’t offer a <a href="https://www.kiplinger.com/taxes/states-that-still-tax-groceries"><u>grocery tax</u></a> credit to offset the tax, unlike some other states.</li></ul><h3 class="article-body__section" id="section-tennessee"><span>Tennessee</span></h3><figure class="van-image-figure inline-layout" data-bordeaux-image-check ><div class='image-full-width-wrapper'><div class='image-widthsetter' style="max-width:2097px;"><p class="vanilla-image-block" style="padding-top:68.14%;"><img id="jL6hmdogPTp4zNjJLFmMJU" name="GettyImages-1184040558" alt="Tennessee bridge with autumnal colors and rocks in a river" src="https://cdn.mos.cms.futurecdn.net/jL6hmdogPTp4zNjJLFmMJU.jpg" mos="" align="middle" fullscreen="" width="2097" height="1429" attribution="" endorsement="" class=""></p></div></div><figcaption itemprop="caption description" class=" inline-layout"><span class="credit" itemprop="copyrightHolder">(Image credit: Getty Images)</span></figcaption></figure><h2 id="tennessee-taxes-for-retirees-2">Tennessee taxes for retirees</h2><p>Like many states on the list, <a data-analytics-id="inline-link" href="https://www.kiplinger.com/state-by-state-guide-taxes/tennessee"><u>Tennessee</u></a> doesn’t tax personal income, and that includes retirement income like Social Security benefits, pension, and 401(k) or IRA plan distributions.</p><p>However, not all taxes in the Volunteer State are low. You still pay Tennessee tax on:</p><ul><li>Groceries, at a tax rate of 4% (plus local sales taxes).</li><li>Other goods and services at a 7% state sales tax rate (Tennessee has one of the <a href="https://www.kiplinger.com/taxes/state-tax/603200/states-with-the-highest-sales-taxes"><u>highest sales tax rates</u></a> in the country).</li></ul><p>But, if you’re thinking of passing on a sizeable estate to your heirs, you may be in luck: Tennessee doesn’t enact a state inheritance or estate tax.</p><h3 class="article-body__section" id="section-texas"><span>Texas</span></h3><figure class="van-image-figure inline-layout" data-bordeaux-image-check ><div class='image-full-width-wrapper'><div class='image-widthsetter' style="max-width:2119px;"><p class="vanilla-image-block" style="padding-top:66.78%;"><img id="ZsjpiMkbAJNbYNcNqtv8W3" name="GettyImages-1251572208" alt="Texas landscape with a tall windmill" src="https://cdn.mos.cms.futurecdn.net/ZsjpiMkbAJNbYNcNqtv8W3.jpg" mos="" align="middle" fullscreen="" width="2119" height="1415" attribution="" endorsement="" class=""></p></div></div><figcaption itemprop="caption description" class=" inline-layout"><span class="credit" itemprop="copyrightHolder">(Image credit: Getty Images)</span></figcaption></figure><h2 id="texas-income-tax-2">Texas income tax</h2><p>A lack of personal income tax makes Texas one of the top <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/601814/most-tax-friendly-states-for-retirees"><u>ten most tax-friendly states</u></a>. Here are just a few income types <a data-analytics-id="inline-link" href="https://www.kiplinger.com/state-by-state-guide-taxes/texas"><u>Texas</u></a> does not tax:</p><ul><li>Retirement income.</li><li>Wage income.</li><li>Estate or inheritance tax.</li></ul><p>Plus, the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/what-the-texas-property-tax-debate-means-for-homeowners#:~:text=The%20homestead%20exemption%20is%20%24110%2C000,qualify%20for%20the%20homestead%20exemption."><u>Texas homestead property tax exemption</u></a> is $110,000 for homeowners 65 and older. However, the Lone Star State imposes a sales tax, which can be as high as 8.25% in some areas.</p><h3 class="article-body__section" id="section-washington"><span>Washington</span></h3><figure class="van-image-figure inline-layout" data-bordeaux-image-check ><div class='image-full-width-wrapper'><div class='image-widthsetter' style="max-width:2119px;"><p class="vanilla-image-block" style="padding-top:66.78%;"><img id="3rrHT2h6ZmYG8soquoZNrE" name="GettyImages-1276839668" alt="Forest of evergreens in the mountains with a singular road and a car driving on it" src="https://cdn.mos.cms.futurecdn.net/3rrHT2h6ZmYG8soquoZNrE.jpg" mos="" align="middle" fullscreen="" width="2119" height="1415" attribution="" endorsement="" class=""></p></div></div><figcaption itemprop="caption description" class=" inline-layout"><span class="credit" itemprop="copyrightHolder">(Image credit: Getty Images)</span></figcaption></figure><h2 id="washington-state-income-tax-2">Washington state income tax</h2><p>There is no <a data-analytics-id="inline-link" href="https://www.kiplinger.com/state-by-state-guide-taxes/washington"><u>Washington</u></a> income tax on retirement income such as Social Security, pension income, 401(k), or IRA distributions. This is because Washington does not have a personal income tax.</p><p>However, the Evergreen State taxes the sale of some capital assets (like stocks and bonds) at a hefty rate of 7%. But only for gains that exceed $250,000 annually.</p><p>Also, if you have a sizeable estate, here are a few things you should know about Washington’s 2025 estate tax:</p><ul><li>Washington’s estate tax exemption is $2,193,000.</li><li>Tax rates for estates that exceed the threshold range from 10% to 20%.</li></ul><h3 class="article-body__section" id="section-wyoming"><span>Wyoming</span></h3><figure class="van-image-figure inline-layout" data-bordeaux-image-check ><div class='image-full-width-wrapper'><div class='image-widthsetter' style="max-width:2095px;"><p class="vanilla-image-block" style="padding-top:68.31%;"><img id="SMTEPoa2r452ZkvkCAQgKn" name="GettyImages-1357718028" alt="Yellow flowers in the foreground and a Wyoming purple mountain range in the background" src="https://cdn.mos.cms.futurecdn.net/SMTEPoa2r452ZkvkCAQgKn.jpg" mos="" align="middle" fullscreen="" width="2095" height="1431" attribution="" endorsement="" class=""></p></div></div><figcaption itemprop="caption description" class=" inline-layout"><span class="credit" itemprop="copyrightHolder">(Image credit: Getty Images)</span></figcaption></figure><h2 id="wyoming-income-tax-2">Wyoming income tax</h2><p><a data-analytics-id="inline-link" href="https://www.kiplinger.com/state-by-state-guide-taxes/wyoming"><u>Wyoming</u></a> is one of the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/601819/states-that-wont-tax-your-pension"><u>states that don’t tax pension income</u></a>. Additionally, there’s no state tax on:</p><ul><li>Income from interest and dividends.</li><li>Personal or corporate income.</li><li>Estate or inheritance taxes.</li></ul><p>Also, the combined state and local sales taxes don’t exceed 6%, making Wyoming one of the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/best-states-for-middle-class-families"><u>best states for middle-class families</u></a>.</p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/taxes/states-with-no-inheritance-estate-tax"><u>States That Won't Tax Your Death</u></a></li><li><a href="https://www.kiplinger.com/retirement/602202/taxes-in-retirement-how-all-50-states-tax-retirees"><u>Taxes in Retirement: How All 50 States Tax Retirees</u></a></li><li><a href="https://www.kiplinger.com/retirement/social-security/603803/states-that-tax-social-security-benefits"><u>States That Tax Social Security Benefits</u></a></li><li><a href="https://www.kiplinger.com/taxes/tax-friendly-fun-retirement-activities"><u>Fun Things to Do in Retirement With Added Tax Benefits</u></a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/taxes/states-that-dont-tax-retirement-income</link> <description> <![CDATA[ Several states don’t tax Social Security benefits, 401(k)s, IRAs, and pensions. But you may still have to pay state taxes on some incomes. ]]> </description> <guid isPermaLink="false">Ly5WXawgQ9zRVZDBLqzueJ</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/jqdbGgAM9PFk5FPSLNaXTS.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Sun, 02 Feb 2025 14:47:10 +0000</pubDate> <category><![CDATA[taxes]]></category> <category><![CDATA[Retirement]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/jqdbGgAM9PFk5FPSLNaXTS.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[piggy bank on a table with US money and a wooden block that says "Retirement"]]></media:text> <media:title type="plain"><![CDATA[piggy bank on a table with US money and a wooden block that says "Retirement"]]></media:title> </media:content> </item> <item> <title><![CDATA[ Build Your Dream Retirement With These Five Steps ]]></title> <dc:content><![CDATA[ <p>Retirement is more than just the end of your working years; it’s the beginning of a new chapter filled with potential, purpose and possibility. While <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/many-older-adults-lack-financial-security-what-can-we-do">financial security</a> is a cornerstone, designing a fulfilling retirement requires a holistic approach that aligns your goals, passions and resources. Here’s how to lay the groundwork for a retirement that reflects your values and dreams:</p><h2 id="1-start-with-your-why-2">1. Start with your 'why'</h2><p>Understanding the core motivation behind your retirement is the first and most critical step. What are you seeking from this phase of life? Is it freedom from work, time to explore hobbies or deeper connections with family?</p><p><strong>Client story:</strong> Steve and Linda approached retirement with different visions. Steve pictured days on the golf course and evenings playing poker, while Linda dreamt of European adventures and wine tastings. By openly discussing their "why," they uncovered shared goals and crafted a <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/retirement-planning">retirement plan</a> that honored both their individual and collective dreams.</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_KQr60TxC_a7GJFMMh_div' class='future__jwplayer'><div id='botr_KQr60TxC_a7GJFMMh_div'></div></div></div></div><p><strong>Practical tip:</strong> Take time to journal your motivations for retirement. Reflect on questions like:</p><ul><li>What excites me most about retiring?</li><li>What legacy do I want to create?</li><li>How do I want to spend my time?</li></ul><p>By anchoring your plans in a clear "why," you’ll make more intentional and satisfying decisions.</p><h2 id="2-define-your-what-2">2. Define your 'what'</h2><p>With your "why" established, focus on defining what you want your retirement to look like. A detailed vision can help transform abstract dreams into actionable steps.</p><p><strong>Key areas to explore:</strong></p><ul><li><strong>Travel:</strong> Whether it’s <a href="https://www.kiplinger.com/retirement/15-reasons-youll-regret-an-rv-in-retirement">exploring national parks in an RV</a> or cruising the Mediterranean, envision your ideal adventures and set priorities.</li><li><strong>Social engagement:</strong> Without the natural social structures of work, <a href="https://www.kiplinger.com/retirement/the-cost-of-loneliness-in-retirement">staying connected is crucial</a>. Consider joining clubs, volunteering or fostering community relationships.</li><li><strong>Health and wellness:</strong> Retirement is an opportunity to prioritize physical and mental health. Activities like yoga, hiking or swimming can keep you active and engaged.</li><li><strong>Hobbies and passions:</strong> Dive into creative pursuits such as painting, gardening or woodworking. These outlets can provide <a href="https://www.kiplinger.com/retirement/happy-retirement">joy and fulfillment</a>.</li></ul><p><strong>Best practice:</strong> Test drive your retirement lifestyle. Before fully retiring, take an extended vacation or reduce work hours to simulate your envisioned routine. This trial run can reveal areas needing adjustment.</p><h2 id="3-map-out-your-how-2">3. Map out your 'how'</h2><p>Once your "why" and "what" are clear, it’s time to develop your roadmap for achieving them. Financial planning is a critical component, but it should align with your personal goals.</p><p><strong>Pro tip:</strong> Begin by crafting a year-one retirement budget. Include anticipated expenses such as travel, health care and discretionary spending. Be sure to account for <a data-analytics-id="inline-link" href="https://www.kiplinger.com/economic-forecasts/inflation">inflation</a> and unexpected costs.</p><p><strong>Case study:</strong> A couple we worked with had a robust plan for their first retirement year, focusing on traveling across the U.S. However, a family emergency required reallocating funds. Because they regularly reviewed their financial plan, they were able to adapt without sacrificing their long-term goals.</p><h2 id="4-stay-flexible-2">4. Stay flexible</h2><p>Retirement isn’t static. Your needs and desires may evolve as you settle into this new chapter. Flexibility is key to navigating these changes.</p><p><strong>Advice:</strong> Schedule regular check-ins with a <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/how-to-find-a-financial-adviser">fiduciary adviser</a> to reassess your financial and personal goals. Quarterly or annual reviews can help you:</p><ul><li>Adjust your budget based on market performance or unexpected expenses</li><li>Refine your goals as new opportunities or challenges arise</li></ul><p><strong>Real-life example:</strong> Steve and Linda found unexpected joy in RV travel, blending their love for adventure and sports. Their willingness to adapt ensured their retirement was both fulfilling and financially sustainable.</p><h2 id="5-build-a-legacy-2">5. Build a legacy</h2><p>Retirement isn’t just about enjoying life — it’s also an opportunity to leave a lasting impact. Whether through charitable giving, mentoring or supporting family, consider how you want to be remembered.</p><p><strong>Best practice:</strong> Establish a charitable giving plan that aligns with your values. Tools like <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/should-a-donor-advised-fund-be-part-of-your-estate-plan">donor-advised funds</a> can simplify the process and maximize tax efficiency.</p><p><strong>Client insight:</strong> One retiree, a former teacher, found purpose in mentoring underprivileged youth. This effort enriched his retirement and made a significant difference in his community.</p><h2 id="the-bottom-line-7">The bottom line</h2><p>A fulfilling retirement is built on more than just financial stability. It’s about aligning your resources with your values, staying adaptable, and embracing opportunities for growth and connection. By starting with your "why," defining your "what" and crafting a flexible "how," you’ll create a retirement as unique as you are.</p><p>Take the first step today. Reflect on your goals, connect with a fiduciary adviser and start shaping the retirement you’ve always envisioned. The journey is yours to design — make it extraordinary.</p><p><em>Want more guidance on retirement savings? Sign up for Kiplinger's six-week series, </em><a data-analytics-id="inline-link" href="https://www.kiplinger.com/business/get-the-invest-for-retirement-series"><em>Invest for Retirement</em></a><em>.</em></p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/retirement/retirees-anti-bucket-list-experiences-you-dont-want">Retirees’ Anti-Bucket List: 10 Experiences You Don’t Want</a></li><li><a href="https://www.kiplinger.com/retirement/ways-to-prepare-for-a-retirement-full-of-travel">Four Ways to Prepare for a Retirement Full of Travel</a></li><li><a href="https://www.kiplinger.com/retirement/tips-to-create-a-happy-retirement">To Create a Happy Retirement, Start With the Three Ps</a></li><li><a href="https://www.kiplinger.com/retirement/retirement-planning/how-to-hire-a-retirement-coach-and-why-you-might-need-one">How to Hire a Retirement Coach: And Why You Might Need One</a></li><li><a href="https://www.kiplinger.com/retirement/how-to-help-your-kids-inherit-more-than-just-your-money">How to Help Your Kids Inherit More Than Just Your Money</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/retirement/build-your-dream-retirement-with-these-steps</link> <description> <![CDATA[ Dreaming about life after work? Turn your dreams into a concrete, actionable plan by nailing down the why, what and how of your retirement. ]]> </description> <guid isPermaLink="false">QitsEhWzCawYhbFMQcQBu6</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/5NwNF5DKvhdHpCkGjc9uvM.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Sun, 02 Feb 2025 10:35:00 +0000</pubDate> <category><![CDATA[Retirement]]></category> <category><![CDATA[Retirement-planning]]></category> <category><![CDATA[Happy-retirement]]></category> <category><![CDATA[Wealth-creation]]></category> <category><![CDATA[Investing]]></category> <category><![CDATA[Wealth-management]]></category> <author><![CDATA[ keith@capstoneplanning.com (Keith Wiltfong, CFP®, CIMA®) ]]></author> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/5NwNF5DKvhdHpCkGjc9uvM.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[Two older women laugh while drinking coffee at an outdoor cafe.]]></media:text> <media:title type="plain"><![CDATA[Two older women laugh while drinking coffee at an outdoor cafe.]]></media:title> </media:content> </item> <item> <title><![CDATA[ For Investors, 2024 Was a Year to Remember ]]></title> <dc:content><![CDATA[ <p>If you’ve ever wondered whether investing is worth the hype, 2024 delivered a resounding "yes" to that question. The U.S. markets once again showcased their potential, delivering impressive returns for investors.</p><p>The market winning streak in 2024 was fueled by solid economic growth, declining inflation from historically high levels, interest rate cuts by the Federal Reserve and robust corporate earnings. November added yet another big bang to nearly all U.S. stocks as investors drove the market higher after the re-election of President Donald Trump. Trump’s campaign promises, if delivered, could mean cutting corporate taxes as well as the continuation of lower tax policies that were set to sunset under the Tax Cuts and Jobs Act (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/what-is-the-tcja">TCJA</a>) in December 2025.</p><p>As more dollars continue to funnel to the consumer, strong economic growth is expected to continue if <a data-analytics-id="inline-link" href="https://www.kiplinger.com/economic-forecasts/inflation">inflation</a> stays at bay. Trump is also expected to lighten regulation on several key industries, including financial services, adding additional optimism for strong corporate profits in 2025 and beyond.</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_TZ5u6hI1_a7GJFMMh_div' class='future__jwplayer'><div id='botr_TZ5u6hI1_a7GJFMMh_div'></div></div></div></div><p>Adding fuel to the fire, the artificial intelligence (AI) boom ignited a second consecutive year of outsized gains for Big Tech stocks, which not only soared to new heights but also propelled the broader market upward. This perfect storm of favorable conditions created a rewarding landscape for smart investors who had their money working for them in the market.</p><p>Let’s break it down, highlight some big wins and see how your money could have grown.</p><h2 id="a-stellar-year-for-u-s-stocks-2">A stellar year for U.S. stocks</h2><p>The S&P 500, a collection of 500 of the largest companies in the U.S., is often used as a snapshot of how the stock market and economy are performing. In 2024, the S&P 500 climbed an impressive 23%, building on a strong 24% gain from the year before. Together, these two years delivered a remarkable compound 53% total growth, the best two-year performance since the late 1990s.</p><p>If you had invested $10,000 in the S&P 500 two years ago, your investment would now be worth about $15,300. This shows the power of consistent investing in a diverse group of successful companies over time!</p><h2 id="tech-dominates-again-2">Tech dominates again</h2><p>Technology stole the spotlight in 2024, with the Nasdaq Composite Index — home to many of the world’s biggest tech companies — <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/stock-market-today-stocks-end-a-strong-year-with-a-whimper#:~:text=Even%20with%20the,to%20FactSet%20Research.">soaring more than 28%</a>. If you’d put $10,000 into the Nasdaq at the start of the year, it would now be worth $12,800. And that’s on top of an incredible <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/stock-market-today-stocks-close-stellar-year-on-a-quiet-note#:~:text=The%20tech%2Dheavy%20Nasdaq%20outpaced%20its%20peers%20in%202023%2C%20though%2C%20surging%2043.4%25%20amid%20strength%20in%20the%20Magnificent%207%20%E2%80%93%20a%20group%20of%20growth%20stocks%20that%20includes%20mega%20caps%20Alphabet%20(GOOGL%2C%20%2D0.4%25)%2C%20Amazon.com%20(AMZN%2C%20%2D0.9%25)%20and%20Nvidia%20(NVDA%2C%200.0%25).%C2%A0">84% jump from 2022-2024</a>! Over two years, your $10,000 investment would have grown to an impressive $18,400.</p><p>Driving much of this growth were the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/what-are-the-magnificent-7-stocks">Magnificent 7</a> tech giants: Apple (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=AAPL" target="_blank">AAPL</a>), Alphabet (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=GOOGL" target="_blank">GOOGL</a>), Microsoft (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=MSFT" target="_blank">MSFT</a>), Amazon.com (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=AMZN" target="_blank">AMZN</a>), Meta Platforms (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=META" target="_blank">META</a>), Tesla (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=TSLA" target="_blank">TSLA</a>) and Nvidia (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=NVDA" target="_blank">NVDA</a>). These companies lead the charge in areas like AI, electric vehicles, cloud computing and digital innovation.</p><h2 id="midsize-and-small-stocks-show-strength-2">Midsize and small stocks show strength</h2><p>The <a data-analytics-id="inline-link" href="https://www.investopedia.com/terms/r/russell2000.asp" target="_blank">Russell 2000</a>, a key benchmark for small-cap stocks, posted an 11.5% total return. In comparison, mid-cap stocks in the Russell MidCap index gained 15.3%, performing marginally better.</p><p>Despite recent challenges, small-cap stocks are poised for growth in the long term and are an important part of any diversified portfolio.</p><h2 id="foreign-markets-a-mixed-bag-2">Foreign markets: A mixed bag</h2><p>International markets struggled to keep up with the U.S. in 2024, delivering lackluster returns. Emerging markets posted a relatively modest <a data-analytics-id="inline-link" href="https://www.msci.com/end-of-day-data-search" target="_blank">5% gain</a>, while developed markets barely moved the needle with a 1% increase.</p><p>This underperformance can largely be attributed to a mix of economic headwinds. Emerging markets faced challenges such as slower-than-expected economic recoveries, geopolitical tensions and a strong U.S. dollar, which made it more expensive for these nations to service dollar-denominated debt. Developed markets, on the other hand, wrestled with sluggish growth and lingering inflation concerns.</p><p>While international stocks underwhelmed in 2024, they could present opportunities ahead as valuations remain relatively attractive and economies stabilize. Investors looking to <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/604421/why-you-need-to-be-diversified-to-protect-your-portfolio">diversify their portfolios</a> may want to keep a close eye on these markets for potential long-term growth.</p><h2 id="bonds-and-yields-a-complicated-picture-2">Bonds and yields: A complicated picture</h2><p>The bond market painted a more complex picture in 2024. Yields on 30-year government bonds rose to <a data-analytics-id="inline-link" href="https://www.bloomberg.com/news/articles/2025-01-06/us-30-year-bond-yield-hits-highest-since-2023-ahead-of-auctions" target="_blank">4.86%</a>, while shorter-term bonds, such as the two-year Treasury, closed out the year yielding 4.3% — it spent much of the year "inverted.” An “<a data-analytics-id="inline-link" href="https://www.kiplinger.com/article/investing/t052-c000-s001-riding-the-yield-curve.html#:~:text=Inverted%20Yield%20Curve,the%20U.S.">inverted yield curve</a>" is very unusual and refers to situations where short-term interest rates are like or even higher than long-term interest rates.</p><p>Normally, investors expect to earn more when holding longer-term bonds because of the added risk and uncertainty over time.</p><p>Despite the minimal-yield premium, investing in longer-term bonds still may make sense for those concerned about lower <a data-analytics-id="inline-link" href="https://www.kiplinger.com/economic-forecasts/interest-rates">interest rates</a> in the future.</p><h2 id="what-drives-the-market-2">What drives the market?</h2><p>Markets move based on how companies perform and how investors feel about the economy. Recently, stocks have risen due to excitement about AI, lower inflation and the possibility of the Federal Reserve cutting interest rates.</p><h2 id="looking-ahead-7">Looking ahead</h2><p>There’s a buzz of cautious optimism in 2025. Analysts predict the S&P 500 could see an impressive <a data-analytics-id="inline-link" href="https://www.investing.com/analysis/sp-500-wall-streets-forecasts-for-2025-may-be-too-bullish-to-be-true-200655527" target="_blank">8.2% gain</a> — but let’s not forget that markets can be full of surprises. The smartest move? Stick with your long-term plan.</p><p>History proves that patience pays. Investing in the S&P 500 over the past decade has yielded substantial returns. If you had invested $10,000 at the beginning of 2014 and reinvested all dividends, your investment would have grown to about $40,170 by the end of 2024. This represents a cumulative return of about 301.7%, or an average annual return of <a data-analytics-id="inline-link" href="https://tradethatswing.com/average-historical-stock-market-returns-for-sp-500-5-year-up-to-150-year-averages" target="_blank">13.3%.</a></p><p>This impressive growth underscores the value of consistent, long-term investing. By staying the course and allowing your investments to compound over time, you can grow your portfolio exponentially.</p><h2 id="your-next-steps-2">Your next steps</h2><p>For those parking cash on the sidelines or first-time investors shy about putting money to work, this is your moment. Imagine the possibilities: starting small, investing regularly and letting your money grow with the market. Even in uncertain times, the U.S. markets have proven resilient, offering substantial rewards to those who stay invested.</p><p>One of the best ways to deploy your money in the market is through <a data-analytics-id="inline-link" href="https://www.kiplinger.com/article/investing/t052-c008-s001-dollar-cost-averaging-how-does-dca-work-should-you.html">dollar-cost averaging</a> (DCA). DCA is a simple and smart investing strategy where you invest a set amount of money each month, regardless of whether the market is up or down. Instead of trying to <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/better-investing-trick-stop-timing-the-market">time the market</a>, which is impossible to do consistently, DCA spreads your investments over time, allowing you to buy more shares when prices are low and fewer when prices are high.</p><p>This smart investment framework helps smooth out <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/market-volatility-avoid-common-investing-pitfalls">market volatility</a> and reduces the risk of putting all your money into investments at the wrong time. Over time, your portfolio will grow steadily without you having to guess when to invest.</p><p>The strategy of dollar-cost averaging is perfect for building wealth with confidence. Why wait? Begin your investment journey today, and let next year be the one where you start building your financial future.</p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/news/live/stocks-earnings-season-live-updates-and-commentary">Earnings Season: Live Updates and Commentary</a></li><li><a href="https://www.kiplinger.com/investing/investing-moves-to-make-at-the-start-of-the-year">Investing Moves to Make at the Start of the Year</a></li><li><a href="https://www.kiplinger.com/investing/bitcoin-crypto-trends">What to Expect From Bitcoin and Other Cryptocurrencies in 2025</a></li><li><a href="https://www.kiplinger.com/kiplinger-advisor-collective/why-now-may-be-a-good-time-to-invest-in-commodities">Why Now May Be a Good Time to Invest in Commodities</a></li><li><a href="https://www.kiplinger.com/retirement/getting-divorced-beware-of-hidden-tax-traps-as-you-divide-assets">Getting Divorced? Beware of Hidden Tax Traps as You Divide Assets</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/investing/for-investors-2024-was-a-year-to-remember</link> <description> <![CDATA[ A perfect storm of favorable conditions created a rewarding landscape for investors. A buzz of cautious optimism continues for 2025. ]]> </description> <guid isPermaLink="false">7U7uJo8caaJeUXWxSfQTPk</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/HJfJqfEEy6K6ZrVcsuo2wM.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Sun, 02 Feb 2025 10:30:00 +0000</pubDate> <category><![CDATA[Investing]]></category> <author><![CDATA[ marketing@francisfinancial.com (Stacy Francis, CFP®, CDFA®, CES™) ]]></author> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/HJfJqfEEy6K6ZrVcsuo2wM.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[Two investors look at an investing graph showing a line going up on a laptop screen.]]></media:text> <media:title type="plain"><![CDATA[Two investors look at an investing graph showing a line going up on a laptop screen.]]></media:title> </media:content> </item> <item> <title><![CDATA[ How To Save Social Security — Pay More Taxes? Cut Benefits? ]]></title> <dc:content><![CDATA[ <p>Finding ways to save Social Security is at the top of many Americans' minds, and for good reason. The program, which provides a safety net for over 70 million Americans, is facing a financial shortfall. If nothing is done by 2035, it <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/social-security-storm-gathering-your-safety-plan"><u>could run out of money</u></a> in its trust fund. That would force a <a data-analytics-id="inline-link" href="https://www.pgpf.org/article/without-reform-social-security-could-become-within-the-next-decade/" target="_blank"><u>17% reduction</u></a> in <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/social-security/601708/social-security-basics-12-things-you-must-know-about-claiming-and">Social Security</a> benefit payments.</p><p>There are many reasons that Social Security is in trouble, but changing demographics is the primary one. The chart below demonstrates that America's aging population means fewer young workers are paying into the system per retiree, with the trend gaining steam over the next two decades.</p><p>Another factor exacerbating the shortfall is the <a data-analytics-id="inline-link" href="https://www.ssa.gov/benefits/retirement/social-security-fairness-act.html" target="_blank">recent adoption</a> of the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/social-security/social-security-retroactive-payments-and-increases-are-delayed"><u>Social Security Fairness Act (SSFA)</u></a>. This program will increase Social Security checks for 3.2 million workers who receive public pensions. It is projected to <a data-analytics-id="inline-link" href="https://www.crfb.org/press-releases/senate-will-soon-vote-speeding-social-security-insolvency" target="_blank"><u>hasten that shortfall by six months</u></a> if Congress does nothing to shore up Social Security’s coffers.</p><figure class="van-image-figure inline-layout" data-bordeaux-image-check ><div class='image-full-width-wrapper'><div class='image-widthsetter' style="max-width:1200px;"><p class="vanilla-image-block" style="padding-top:100.00%;"><img id="J286zXfxRLsoeswbzkUpDA" name="as-the-population-ages-fewer-workers-will-be-paying-taxes-to-support-each-social-security-beneficiary" alt="A bar chart showing the declining number of workers for each Social Security beneficiary between 1964 and 2044." src="https://cdn.mos.cms.futurecdn.net/J286zXfxRLsoeswbzkUpDA.png" mos="" align="middle" fullscreen="" width="1200" height="1200" attribution="" endorsement="" class=""></p></div></div><figcaption itemprop="caption description" class=" inline-layout"><span class="credit" itemprop="copyrightHolder">(Image credit: Peter G. Peterson Foundation)</span></figcaption></figure><p>That bleak outlook for <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/social-security/601708/social-security-basics-12-things-you-must-know-about-claiming-and"><u>Social Security</u></a> has prompted lawmakers, think tanks and non-profits to <a data-analytics-id="inline-link" href="https://www.ssa.gov/OACT/solvency/" target="_blank">weigh in on how to fix it</a>. While the strategies vary, some agree a mix of raising taxes and boosting revenue can be a way to cover the shortfall and keep Social Security fully afloat.</p><h2 id="save-social-security-by-reducing-costs-boosting-revenue-2">Save Social Security by reducing costs, boosting revenue </h2><p>Take the <a data-analytics-id="inline-link" href="https://www.gao.gov/blog/there-are-options-reforming-social-security-action-needed-now" target="_blank">U.S. Government Accountability Office’s ideas,</a> for starters. Issued this past summer, the GAO calls for a combination of improving finances and raising payroll taxes. The way GAO sees it, reducing program costs could be achieved by changing eligibility requirements and benefit amounts. The cost cuts could come by reducing the current and future benefits for everyone collecting <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/social-security/changes-coming-for-social-security-in-2025"><u>Social Security</u></a> or only for certain groups. The GAO points out that as it stands, Social Security provides benefits to retired workers and, in some instances, their <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/social-security/601358/qualifying-for-social-security-spousal-and-survivor-benefits" target="_blank"><u>dependents and survivors</u></a>. Another option is to increase the payroll tax revenue collected by Social Security.</p><p>“Acting now to address Social Security’s financial woes would reduce the impacts of changes on beneficiaries," the <a data-analytics-id="inline-link" href="https://www.gao.gov/blog/there-are-options-reforming-social-security-action-needed-now" target="_blank">GAO wrote in a blog post</a>. "Acting now would allow changes to be gradually phased in. It would also give Americans more time to plan for any changes affecting their retirement security."</p><p>The GAO isn’t alone in calling for increasing revenue and benefit cuts to fix Social Security. <a data-analytics-id="inline-link" href="https://www.brookings.edu/people/wendell-primus/" target="_blank"><u>Wendell Primus</u></a>, an economist and visiting fellow at Brookings Institute, argues that his proposal submitted to the chief actuary by <a data-analytics-id="inline-link" href="https://hoyer.house.gov/" target="_blank">Rep. Steny Hoyer (D-MD)</a> would eliminate Social Security’s deficit and enable the trust fund to grow beyond its 75-year budgeting window.</p><p>On the revenue side, Primus — a former Congressional staffer — <a data-analytics-id="inline-link" href="https://www.ssa.gov/OACT/solvency/HoyerPrimus_20250103.pdf" target="_blank">recommends several measures</a> to reform Social Security. He proposes increasing the taxable <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/social-security-tax-wage-base-jumps">wage base</a> (the income an employee earns that is taxed by Social Security) from $176,100 to about $300,000. His plan would also increase the payroll tax from 12.4% to 12.6% and tax benefits for people making $100,000 or more as income tax.</p><h2 id="pushing-the-full-retirement-age-further-out-2">Pushing the full retirement age further out </h2><p>On the cost-cutting side, Primus proposes <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/raising-the-social-security-retirement-age"><u>increasing the full retirement age</u></a> for people who have seen “meaningful” increases in life expectancy and can work for more years, extending the average earnings from the highest 35 years of working to 40 years and phasing out the dependent spouse’s benefit. The latter item recognizes that more women are working and thus will collect their own Social Security benefits.</p><p>Primus also suggests that all money collected from taxing retirement and disability benefits be placed into the Social Security trust fund. Under current law, these tax proceeds may also line the pockets of <a data-analytics-id="inline-link" href="https://www.ssa.gov/policy/trust-funds-summary.html#:~:text=Sources%20of%20Trust%20Fund%20Income,Security%20program%20as%20a%20whole." target="_blank"><u>other programs</u></a>, including the Health Insurance Trust Fund for Medicare, Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) trust fund. It’s worth noting that this component would require a change in Medicare. As it stands, about <a data-analytics-id="inline-link" href="https://www.ssa.gov/pubs/EN-05-10024.pdf" target="_blank"><u>85 cents of every Social Security tax dollar</u></a> a worker pays goes to the Social Security trust fund.</p><p>The proposal would also increase certain immigration caps so more people can participate in Social Security and extend coverage. Recognizing the growing health care needs of America's aging society, he recommends adding immigration pathways for direct care workers, such as home health aides.</p><p>What's clear is that the problem is only getting worse. The Peter G. Peterson Foundation has done an excellent job of demonstrating the price of delay. Had we taken specific measures in 2010, they would have made much more of a difference than doing so in 2024, with the exception of raising the retirement age.</p><figure class="van-image-figure inline-layout" data-bordeaux-image-check ><div class='image-full-width-wrapper'><div class='image-widthsetter' style="max-width:1200px;"><p class="vanilla-image-block" style="padding-top:100.00%;"><img id="RGD9xy4FvVXT2x7QnievwK" name="social-security-s-funding-gap-could-have-been-narrowed-had-reforms-been-enacted-earlier" alt="Bar graphs for 2010 and 2024, showing the effectiveness of options to incrase revenues or reduce spending for fixing Social Security." src="https://cdn.mos.cms.futurecdn.net/RGD9xy4FvVXT2x7QnievwK.png" mos="" align="middle" fullscreen="" width="1200" height="1200" attribution="" endorsement="" class=""></p></div></div><figcaption itemprop="caption description" class=" inline-layout"><span class="credit" itemprop="copyrightHolder">(Image credit: Peter G. Peterson Foundation)</span></figcaption></figure><h2 id="an-end-to-401-k-s-2">An end to 401(k)s? </h2><p>Another idea, <a data-analytics-id="inline-link" href="https://www.thinkadvisor.com/2024/02/08/what-the-proposal-to-end-401k-tax-breaks-to-save-social-security-gets-wrong-ici-economist/" target="_blank" rel="nofollow">which has stirred controversy</a>, is to <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/should-401k-be-eliminated-to-save-social-security"><u>abolish tax-sheltered savings plans </u></a>like 401(k)s and <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/retirement-plans/traditional-ira"><u>IRAs</u></a>. Proposed by Alicia Munnell, director of the <a data-analytics-id="inline-link" href="https://crr.bc.edu/" target="_blank"><u>Center for Retirement Research at Boston College</u></a>, and Andrew Biggs, senior fellow at the <a data-analytics-id="inline-link" href="https://www.aei.org/" target="_blank"><u>American Enterprise Institute (AEI)</u></a>, the two economists argue the reduction in federal income taxes because of IRAs and employer-sponsored plans such as a 401(K) amounted to between $185 and $189 billion in 2020. What’s more, Munnell and Biggs say that these tax-favored retirement savings plans disproportionately benefit the wealthy. If these plans were abolished, those tax revenues could benefit retirees through Social Security instead.</p><p>“Revenues saved from repealing the retirement saving tax preferences could be reallocated to address the majority of Social Security’s long-term funding gap, strengthening a program that is crucial for the retirement security of older Americans while bypassing a decades-old debate about raising taxes or reducing Social Security benefits,” the economists <a data-analytics-id="inline-link" href="https://crr.bc.edu/the-case-for-using-subsidies-for-retirement-plans-to-fix-social-security/"><u>wrote in a report</u></a>.</p><h2 id="do-americans-want-higher-payroll-taxes-2">Do Americans want higher payroll taxes?</h2><p>Increasing taxes typically raises the ire of Americans. After all, who wants to pay more to the government? Well, it turns out that, at least according to a recent survey by the National Academy of Social Insurance, AARP, the National Institute on Retirement Security, and the U.S. Chamber of Commerce, 85% of Americans are on board.</p><p>The <a data-analytics-id="inline-link" href="https://www.nasi.org/pressrelease/new-public-survey-lays-out-a-bipartisan-roadmap-for-social-securitys-future/" target="_blank"><u>survey</u></a> found that Americans value Social Security across party lines, generations, income and education. They see it as an essential piece of their retirement security. Of those polled, only 4% said it wouldn’t be important to their income when retired. Moreover, an overwhelming majority are willing to pay more taxes if it would save Social Security.</p><p>“Eighty-five percent say we should ensure benefits are not reduced, even if it means raising taxes on some or all Americans. The most strongly preferred of all options tested is eliminating the cap on payroll tax contributions for those earning more than $400,000 per year,” wrote the groups in a report on the findings. “Additionally, Americans across all groups, including a majority of Republicans, say they are willing to pay more themselves by gradually increasing the payroll tax rate to strengthen the program’s finances.”</p><p>The survey respondents rejected raising the retirement age or switching to a slower <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/social-security/social-security-cola-increase-2025">cost-of-living adjustment (COLA)</a>.</p><p>That survey coincides with another one by the National Institute on Retirement Security that <a data-analytics-id="inline-link" href="https://www.nirsonline.org/2025/01/new-report-details-long-history-of-public-support-for-social-security/" target="_blank"><u>examined more than 40 years of public opinion polling on Social Security</u></a> and found strong support for the program and that confidence in Social Security increases with age. Just like the other survey, it also showed a “solid” majority of Americans believe more money should be spent on Social Security.</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_KQr60TxC_a7GJFMMh_div' class='future__jwplayer'><div id='botr_KQr60TxC_a7GJFMMh_div'></div></div></div></div><h2 id="americans-want-to-keep-social-security-solvent-2">Americans want to keep Social Security solvent </h2><p>Social Security has provided a safety net for retirees since the Great Depression and is something most Americans rely on when they stop collecting a regular paycheck. With the program facing potential insolvency, Americans appear united in doing what it takes to keep their benefits intact.</p><h3 class="article-body__section" id="section-related-content"><span>Related content </span></h3><ul><li><a href="https://www.kiplinger.com/retirement/key-milestone-ages-in-retirement">The Seven Key Milestone Ages in Retirement</a></li><li><a href="https://www.kiplinger.com/retirement/retirement-planning/jim-carrey-ran-out-of-money-in-retirement-will-you">Jim Carrey Ran Out of Money in Retirement. Will You?</a></li><li><a href="https://www.kiplinger.com/retirement/medicare/rfk-jr-confused-medicare-and-medicaid-heres-the-difference">RFK Jr. Confused Medicare and Medicaid: Here's the Difference</a></li><li><a href="https://www.kiplinger.com/retirement/steps-to-answer-your-million-dollar-retirement-question">Five Steps to Answer Your Million-Dollar Retirement Question</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/retirement/social-security/how-to-save-social-security-pay-more-taxes-cut-benefits</link> <description> <![CDATA[ These proposals to save Social Security may require big changes, but Americans want politicians to act. Are you willing to pay more taxes? ]]> </description> <guid isPermaLink="false">HiknS7yYJJZ6QXGb9hoj95</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/dFSpXn2txivzB27SquNQLN.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Sat, 01 Feb 2025 11:16:00 +0000</pubDate> <category><![CDATA[Social-security]]></category> <category><![CDATA[Retirement-planning]]></category> <category><![CDATA[Retirement]]></category> <author><![CDATA[ donna.fuscaldo@futurenet.com (Donna Fuscaldo) ]]></author> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/dFSpXn2txivzB27SquNQLN.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[Uncle Sam and a Social Security card]]></media:text> <media:title type="plain"><![CDATA[Uncle Sam and a Social Security card]]></media:title> </media:content> </item> <item> <title><![CDATA[ How to Retire Early Due to Disability or Caretaking ]]></title> <dc:content><![CDATA[ <p><em>Editor’s note: "How to Retire Early Due to Disability or Caretaking" is part of a series focused on </em><a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/how-to-retire-early"><em>how to retire early</em></a><em> and the FIRE (Financial Independence, Retire Early) movement. To see all early retirement articles, jump to the end.</em></p><p>Early retirement may seem like a fortunate break, but for many, it’s far from a choice. Often, it’s a decision made by circumstances, not desire. Surprisingly, more than half of Americans (58%) retire earlier than planned, according to a report from the <a data-analytics-id="inline-link" href="https://www.transamericainstitute.org/in-the-news/press-releases/details/retirees-personal-finance-research-press-release-2024"><u>Transamerica Center for Retirement Studies</u></a>.</p><p>While company restructures and mass layoffs often grab headlines, health-related issues and caregiving responsibilities are also leading factors. In fact, health concerns are the biggest driver — 46% of early retirees cite personal health problems as the reason for cutting their working years short. Caregiving responsibilities, often falling disproportionately on women, account for another 20%. Most alarmingly, only 21% of those who retire early report being financially stable.</p><p>An unplanned early retirement can be a shock, but it doesn’t have to mean settling for a less-than-ideal retirement. As CFP Board Ambassador <a data-analytics-id="inline-link" href="https://www.cfp.net/initiatives/increasing-awareness/cfp-board-ambassadors/letian-dong-cfp"><u>LeTian Dong</u></a> explains, “In the event of an unplanned early retirement, it’s important to take proactive steps to secure your financial and emotional well-being.”</p><h2 id="do-you-really-have-to-retire-early-2">Do you really have to retire early?</h2><p>Before you retire early, explore ways of holding onto your job.</p><p><a data-analytics-id="inline-link" href="https://www.kiplinger.com/business/employees/experiencing-disability-in-late-career">Disability doesn't have to force an early retirement</a><a data-analytics-id="inline-link" href="https://www.kiplinger.com/business/employees/experiencing-disability-in-late-career" target="_blank">;</a> you do not have to tell your boss about your disability. If you work primarily on a computer, you could ask to work remotely full-time or a few days a week. You may ask for accommodations at work if you believe they will help you stay on the job. For example, <a data-analytics-id="inline-link" href="https://www.dol.gov/sites/dolgov/files/ODEP/pdf/Working_with_Long_COVID.pdf" target="_blank">if you have long COVID</a>, you may lobby for rest breaks, telework and an adaptable schedule, all of which can help with brain fog and exhaustion. About half of workers who ask for accommodations are granted them.</p><p>Caregiving often interferes with a full-time job, but you may be able to manage. According to the <a data-analytics-id="inline-link" href="https://www.ioaging.org/aging/caregiver-and-working-full-time-tips-for-managing-it-all/" target="_blank">Institute on Aging</a>, you could try talking to your employer, finding ways to delegate caregiving responsibilities, and building in self-care.</p><p><strong>If you cannot keep your job, here are six steps to take an unplanned early retirement.</strong></p><h2 id="1-get-a-grip-on-your-finances-2">1. Get a grip on your finances</h2><p>Dealing with an unexpected retirement while managing health issues or caregiving responsibilities can feel overwhelming. However, <a data-analytics-id="inline-link" href="https://www.deltacommunitycu.com/personal/retirement-investments/financial-advisors/julie-r-bates.html" target="_blank" rel="nofollow">Julie Bates</a>, CFP Board Ambassador and CFP® at Delta Community Credit Union, encourages people to view this as “an opportunity to reset your priorities with dignity and purpose.”</p><p>She says to start by assessing your financial situation: list your savings, expenses and any benefits available to you, such as unemployment insurance, disability insurance, or paid leave.</p><p>If retiring early due to a disability, <a data-analytics-id="inline-link" href="https://www.acadviser.com/advisers/patrick-cummins/" target="_blank" rel="nofollow">Patrick Cummins</a>, CFP® and financial adviser at Advance Capital Management, suggests exploring government social services designed to help in these situations.</p><p>For instance, <a data-analytics-id="inline-link" href="https://www.ssa.gov/benefits/disability/qualify.html" target="_blank">Social Security Disability Insurance (SSDI)</a> can be a lifeline. It provides income to those who can no longer work due to a disability, but qualifying can be challenging. You need to have sufficient work credits and a disability that is expected to last at least a year or result in death. The application process is rigorous, so gathering detailed medical documentation is essential.</p><p>Some employers offer <a data-analytics-id="inline-link" href="https://www.paychex.com/articles/employee-benefits/short-vs-long-term-disability-insurance" target="_blank" rel="nofollow">disability insurance</a> as part of their benefits package. Check with your HR department to see if you’re eligible for short- or long-term disability coverage. Also, ask whether your employer offers early retirement benefits, such as severance packages, pension payouts or health insurance extensions.</p><p>The <a data-analytics-id="inline-link" href="https://www.dol.gov/agencies/whd/fmla" target="_blank">Family and Medical Leave Act (FMLA)</a> may also be a godsend if illness or caregiving responsibilities force you to leave work. FMLA provides up to 12 weeks of unpaid leave, allowing you to maintain your job and benefits temporarily. <a data-analytics-id="inline-link" href="https://www.kff.org/other/state-indicator/paid-family-and-sick-leave/?currentTimeframe=0&sortModel=%7B%22colId%22:%22Location%22,%22sort%22:%22asc%22%7D" target="_blank">Some states and the District of Columbia</a> also offer paid family leave, which can provide income during this time. For more information, see our article on <a data-analytics-id="inline-link" href="https://www.kiplinger.com/business/employees/what-the-family-and-medical-leave-act-provides">what the FMLA provides</a>.</p><h2 id="2-rework-your-budget-for-your-new-reality-2">2. Rework your budget for your new reality</h2><p>Once you have a clear picture of your financial situation, evaluate your ability to maintain your current lifestyle. You may need to make temporary or long-term adjustments to your spending.</p><p>Dong advises, “Prioritize essential expenses and identify areas to cut back if needed.”</p><p>Consider canceling unnecessary subscriptions or memberships, <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/how-to-save-money/switch-mobile-provider-to-cut-your-phone-bill">switching to cheaper phone or cable plans</a>, and delaying major purchases, such as a new car. These small changes can free up cash for essential expenses.</p><p>Bates adds, “Some adjustments are temporary, like cutting discretionary spending, but others, like <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/downsize-in-retirement-with-tax-benefits">downsizing your home</a>, may be permanent. Group your decisions accordingly to get in the right mindset.”</p><h2 id="3-generate-new-income-2">3. Generate new income</h2><p>Further, you’ll need to explore sources of income to cover both immediate and long-term needs.</p><p>For immediate cash, look to your <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/savings/are-you-really-prepared-for-a-financial-emergency">emergency fund</a>. Ideally, you’ll have three to six months’ worth of expenses saved for unexpected hardships. If that’s not enough, you may need to access your retirement accounts.</p><p>Cummins emphasizes the importance of understanding the flexibility of your retirement funds. “It’s crucial to focus on what you can access and what you cannot,” he says.</p><p>The IRS imposes penalties for early withdrawals, but there are exceptions. For instance, <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/the-rule-of-55-one-way-to-fund-early-retirement"><u>the Rule of 55</u></a> allows you to withdraw from your 401(k) penalty-free if you leave your job in or after the year you turn 55. There are also exceptions for medical expenses and other hardships. Research your options carefully to avoid unnecessary penalties.</p><p>Social Security benefits can also be an option if you are at least age 62. Bates points out that “while <a data-analytics-id="inline-link" href="https://www.kiplinger.com/when-to-apply-for-social-security">delaying benefits</a> increases your payout, you may need to start receiving them earlier if income is urgently needed.”</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_KQr60TxC_a7GJFMMh_div' class='future__jwplayer'><div id='botr_KQr60TxC_a7GJFMMh_div'></div></div></div></div><h2 id="4-keep-your-health-care-covered-2">4. Keep your health care covered</h2><p>Health care is a significant concern for early retirees, Bates says, especially if you’re not yet eligible for <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/medicare/medicare-basics-things-you-need-to-know">Medicare</a>, which begins at age 65. If you lose employer-sponsored coverage, explore COBRA, the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/your-guide-to-open-enrollment-and-health-insurance">Health Care Exchange</a> or a spouse’s plan.</p><p>COBRA allows you to extend your employer’s coverage for up to 18 months, but it can be costly. Alternatively, purchasing a plan from the health care marketplace may offer more affordable options based on your income. Joining a spouse’s plan, if available, is often the simplest and most cost-effective solution.</p><h2 id="5-get-help-from-a-pro-2">5. Get help from a pro</h2><p>While it may seem counterintuitive to spend money during a financial crunch, working with a financial adviser can pay off. “Navigating your expenses and any stop-gap measures should be evaluated with a financial advisor,” Cummins says.</p><p>Bates agrees, explaining that a professional “can help you align your current priorities and resources with your long-term goals, ensuring you make confident, informed decisions during this transition.”</p><h2 id="6-plan-for-your-life-beyond-work-2">6. Plan for your life beyond work</h2><p>Retirement isn’t all about money. Whatever your reason for retiring, it’s essential to still work on your overall well-being and future.</p><p>“On a personal level, focus on building a support network, maintaining your health and finding purpose through hobbies, volunteering or part-time work,” Dong advises. These activities can provide structure, meaning and even supplemental income.</p><p>Bates adds, “Sometimes, you can pivot your career by using your skills for <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/become-a-digital-nomad-an-early-retirement-lifestyle"><u>part-time work</u></a>, freelancing or consulting.”</p><p>Even in the best circumstances, early retirement can lead to a <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/will-retiring-early-make-you-happier-its-complicated"><u>loss of identity and purpose</u></a>. So, take time to think about the activities and goals that will fill your days and bring you fulfillment.</p><h3 class="article-body__section" id="section-read-more-about-how-to-retire-early"><span>Read More About How to Retire Early</span></h3><ul><li><a href="https://www.kiplinger.com/retirement/how-to-retire-early">How to Retire Early in Six Steps</a></li><li><a href="https://www.kiplinger.com/retirement/retirement-planning/how-to-retire-early-by-40">How to Retire at 40</a></li><li><a href="https://www.kiplinger.com/retirement/how-to-retire-early-by-50">How to Retire at 50 or 55</a></li><li><a href="https://www.kiplinger.com/retirement/retire-early-for-adventure-travel-and-volunteer">Retire Early for Adventure: Go Travel and Volunteer</a></li><li><a href="https://www.kiplinger.com/retirement/will-retiring-early-make-you-happier-its-complicated">Will Retiring Early Make You Happier? It's Complicated</a></li><li><a href="https://www.kiplinger.com/retirement/early-retirement-withdrawal-strategies-for-the-long-haul">Early Retirement Withdrawal Strategies for the Long Haul</a></li><li><a href="https://www.kiplinger.com/retirement/five-early-retirement-mistakes-to-avoid">Five Early Retirement Mistakes to Avoid</a></li><li><a href="https://www.kiplinger.com/retirement/the-rule-of-55-one-way-to-fund-early-retirement">The Rule of 55: One Way to Fund Early Retirement</a></li><li><a href="https://www.kiplinger.com/retirement/a-sabbatical-may-be-a-smarter-move-than-early-retirement">A Sabbatical May Be a Smarter Move Than Early Retirement</a></li><li><a href="https://www.kiplinger.com/retirement/how-sepp-72-t-can-help-you-retire-early-and-dodge-penalties">How SEPP 72(t) Can Help You Retire Early and Dodge Penalties</a></li><li><a href="https://www.kiplinger.com/retirement/become-a-digital-nomad-an-early-retirement-lifestyle">Become a Digital Nomad: An Early Retirement Lifestyle</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/retirement/retirement-planning/how-to-retire-early-due-to-disability-or-caretaking</link> <description> <![CDATA[ If you must retire early due to disability or to care for a loved one, these six steps to make it work financially. ]]> </description> <guid isPermaLink="false">s8Ljj7TdfTvyoEieFT6nFk</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/4oG4R7FUMx22eCvrsUdaad.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Sat, 01 Feb 2025 11:08:00 +0000</pubDate> <category><![CDATA[Retirement-planning]]></category> <category><![CDATA[long term care]]></category> <category><![CDATA[Retirement]]></category> <author><![CDATA[ jacobsschroeder@gmail.com (Jacob Schroeder) ]]></author> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/4oG4R7FUMx22eCvrsUdaad.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[Portrait of an elderly mother and middle-aged daughter smiling together.]]></media:text> <media:title type="plain"><![CDATA[Portrait of an elderly mother and middle-aged daughter smiling together.]]></media:title> </media:content> </item> <item> <title><![CDATA[ Here's How Retirement Changes Your Taxes ]]></title> <dc:content><![CDATA[ <p>Tax season is here. Employers had until January 31 to distribute W-2 forms to employees. It’s a pretty routine system for working Americans, but how does the process change once you enter retirement?</p><p>Unlike your working years, your income streams are a bit different in retirement. In this phase of life, you’re likely going to be living off of a combination of <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/social-security/601708/social-security-basics-12-things-you-must-know-about-claiming-and">Social Security benefits</a>, retirement account savings such as a <a data-analytics-id="inline-link" href="https://www.kiplinger.com/article/retirement/t001-c000-s003-what-is-a-401-k-retirement-savings-plan.html">401(k)</a> or IRA, and maybe even an <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/annuities-what-they-are-and-how-they-work">annuity</a> or <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/how-to-get-the-most-out-of-your-pension-plan">pension</a>. Regardless of where your income is coming from, managing taxes on those funds is crucial to preserving your savings while maximizing your funds. Fortunately, there are several different strategies to help you reduce or eliminate taxes in your golden years.</p><p>Utilizing tax-advantaged accounts is one of the most efficient ways to manage taxes in retirement. If you have a <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/roth-iras-what-they-are-and-how-they-work">Roth IRA</a>, any withdrawals made after age 59½ and a five-year holding period, are tax-free. In other words, any growth in your investments can be taken out without incurring taxes, potentially reducing your taxable income significantly.</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_KQr60TxC_a7GJFMMh_div' class='future__jwplayer'><div id='botr_KQr60TxC_a7GJFMMh_div'></div></div></div></div><p><a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/retirement-plans/traditional-ira/602169/traditional-ira-basics-contributions-rmds">Traditional IRAs</a> work a bit differently. Although distributions from these accounts can be taxed as part of your annual income, you can manage when and how much you withdraw to minimize the tax bill. One example is to consider taking out less from these accounts during the years you’re expecting to fall into a lower <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/tax-brackets/602222/income-tax-brackets">tax bracket</a>. It’s important to note, though, that required minimum distributions (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/retirement-plans/required-minimum-distributions-rmds/602350/rmd-basics-12-things-you">RMDs</a>) must be taken from these accounts once you reach age 73, and those are considered taxable income.</p><h2 id="consider-delaying-social-security-2">Consider delaying Social Security</h2><p>Delaying Social Security benefits is another option. If you <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/social-security/601475/3-reasons-to-wait-until-70-to-claim-social-security-benefits">wait until age 70 to claim your benefits</a>, you can increase your monthly check significantly. Waiting until this age to claim Social Security may also help you avoid higher taxation on those benefits during your go-go years when you might be reliant on other sources of income.</p><p>If you have investments outside of your retirement accounts, you’re no stranger to the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/capital-gains-tax/604943/what-is-capital-gains-tax">capital gains tax</a>. This tax is due after an investment is sold. For the 2025 tax year, long-term capital gains tax rates can vary from 0%, 15% to 20% of the profit depending on your individual income.</p><p>However, holding investments for more than a year will allow you to benefit from lower, long-term capital gains rates when compared to short-term rates.</p><p>If you have investments that are underperforming, you may even want to consider <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/capital-losses-rules-to-know-for-tax-loss-harvesting">tax-loss harvesting</a>. This method allows you to sell investments that have lost value to offset gains made from other investments, therefore reducing your taxable income.</p><h2 id="what-if-you-re-nearing-or-just-entering-retirement-2">What if you're nearing or just entering retirement?</h2><p>While these strategies are helpful for folks entering or <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/nearing-retirement-dos-donts-and-a-never">nearing retirement</a>, you don’t have to wait that long to figure out how you’re going to manage taxes once you retire.</p><p>As you are planning for retirement, it might be a good idea to invest in a tax-free plan such as a Roth IRA. Funds in this account are made from post-tax contributions, which are contributions that are paid from an employee’s paycheck after it’s been taxed. Funds in a Roth IRA grow tax-free, but it’s important to note that the contributions made to these accounts are not tax-deductible. This carries several different advantages.</p><p>For example, these plans have no RMDs, and your withdrawals will be tax-free as long as certain requirements are met. And since you pay taxes upfront on the money you contribute, there’s no penalty if you withdraw those earnings.</p><p>This kind of plan may be a good option for people who expect their retirement tax bracket to be the same or higher than their current bracket. By paying taxes on those contributions upfront, you get the benefit of being taxed at a lower rate, which puts more money in your pocket in the long run.</p><p>Taking a tax-advantaged approach when planning for retirement is key if you want to keep more of your money in your pocket. And with proper planning, you can implement some of these strategies even if you’re decades away from retirement. With the new year well underway, this is a great opportunity to invest in your future — especially if you’re planning on retiring later this year.</p><p><em>The views and opinions expressed herein are those of Joel Russo and do not necessarily reflect the views of CoreCap Investments, LLC or CoreCap Advisor, LLC, its affiliates, or its employees. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Investing involves risk and you may incur a profit or loss regardless of the strategy selected.</em></p><p><em>Want more guidance on retirement savings? Sign up for Kiplinger's six-week series, </em><a data-analytics-id="inline-link" href="https://www.kiplinger.com/business/get-the-invest-for-retirement-series"><em>Invest for Retirement</em></a><em>.</em></p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/retirement/a-simple-tip-for-planning-the-stages-of-retirement">One Simple Tip for Planning the Three Stages of Retirement</a></li><li><a href="https://www.kiplinger.com/retirement/retirees-make-your-money-last-with-stable-income-strategies">Retirees: Make Your Money Last With Stable Income Strategies</a></li><li><a href="https://www.kiplinger.com/retirement/retirement-contingency-plan-steps">You Need a Retirement Contingency Plan: Five Steps to Get It Done</a></li><li><a href="https://www.kiplinger.com/slideshow/retirement/t047-s001-retirement-mistakes-you-will-regret-forever/index.html">16 Retirement Mistakes You Will Regret Forever</a></li><li><a href="https://www.kiplinger.com/retirement/happy-retirement/how-to-have-a-happy-retirement">How to Have a Happy Retirement</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/retirement/how-retirement-changes-your-taxes</link> <description> <![CDATA[ How you approach taxes in your golden years and in the years before retirement can dramatically impact how much you pay. ]]> </description> <guid isPermaLink="false">tneM7dSW88xJKCVzNZrMpS</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/9hfD7pGUouK8ncHCtn8BpM.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Sat, 01 Feb 2025 10:30:00 +0000</pubDate> <category><![CDATA[Retirement]]></category> <category><![CDATA[Retirement-planning]]></category> <category><![CDATA[Tax-planning]]></category> <category><![CDATA[Social-security]]></category> <category><![CDATA[Iras]]></category> <category><![CDATA[required minimum distributions (RMDs)]]></category> <category><![CDATA[Wealth-creation]]></category> <category><![CDATA[taxes]]></category> <category><![CDATA[Retirement-plans]]></category> <category><![CDATA[Investing]]></category> <category><![CDATA[Wealth-management]]></category> <author><![CDATA[ info@njretirementplanning.com (Joel V. Russo, LUTCF) ]]></author> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/9hfD7pGUouK8ncHCtn8BpM.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[An older couple go over financial paperwork at a table and with a laptop. ]]></media:text> <media:title type="plain"><![CDATA[An older couple go over financial paperwork at a table and with a laptop. ]]></media:title> </media:content> </item> <item> <title><![CDATA[ Stock Market Today: Trump Tariff Worries Pressure Stocks ]]></title> <dc:content><![CDATA[ <p>Stocks opened higher Friday thanks to a just-fine inflation report and a round of not-so-bad corporate earnings. But markets turned after the White House confirmed that it will levy <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/how-tariffs-impact-your-wallet">tariffs</a> against Mexico, Canada and China starting tomorrow, February 1.</p><p>This morning's release of the December Personal Consumption Expenditures Price Index (PCE) was generally well-received by investors. According to the <a data-analytics-id="inline-link" href="https://www.bea.gov/news/2025/personal-income-and-outlays-december-2024" target="_blank"><u>Bureau of Labor Statistics</u></a>, headline PCE was up 0.3% month over month and 2.6% year over year. This was faster than the respective increases of 0.2% and 2.4% seen in November.</p><p>Core PCE, which excludes volatile food and energy costs, rose 0.2% month over month, quicker than 0.1% in November. Year over year, core PCE was unchanged at 2.8%.</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_TZ5u6hI1_a7GJFMMh_div' class='future__jwplayer'><div id='botr_TZ5u6hI1_a7GJFMMh_div'></div></div></div></div><p>The report also showed that personal income rose 0.4% in December, while consumer spending was up 0.7%.</p><p>"Some of that consumption buoyancy is thanks to robust capital markets and a declining savings rate, while another contributor stems from powerful wage growth," says <a data-analytics-id="inline-link" href="https://www.interactivebrokers.com/campus/author/jose-torres/" target="_blank"><u>José Torres</u></a>, senior economist at Interactive Brokers. "Indeed, a separate report from a distinct federal agency known as the Bureau of Labor Statistics' Employment Cost Index (<a data-analytics-id="inline-link" href="https://www.bls.gov/news.release/eci.nr0.htm" target="_blank"><u>ECI</u></a>) depicted accelerating compensation expenses on behalf of employers."</p><p>Specifically, ECI was up 0.9% from October to December, slightly faster than the 0.8% gain in Q3. Year over year, the Employment Cost Index was 3.8% higher in Q4, slower than the 3.9% increase from the third quarter.</p><p>"Overall, today's report was good news for the Federal Reserve as it suggests that wage <a data-analytics-id="inline-link" href="https://www.kiplinger.com/economic-forecasts/inflation"><u>inflation</u></a> is softening, a sign that inflation pressures are easing," says <a data-analytics-id="inline-link" href="https://www.raymondjames.com/dedrickwealth/our-team/bio?_=Eugenio.Aleman" target="_blank"><u>Eugenio Alemán</u></a>, chief economist at Raymond James."</p><h2 id="blue-chip-stocks-move-on-earnings-2">Blue chip stocks move on earnings</h2><p>In single-stock news, <strong>Apple</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=AAPL" target="_blank">AAPL</a>) stock opened more than 3% higher after the tech giant beat top- and bottom-line expectations for its fiscal first quarter. However, shares trended lower throughout the session, ending down 0.7% on <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/apple-aapl-stock-climbs-to-the-top-of-the-dow-after-earnings"><u>an iPhone revenue miss</u></a> and slumping China sales.</p><p><strong>Chevron</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=CVX" target="_blank">CVX</a>) was the worst <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/blue-chip-stocks/602319/all-30-dow-jones-stocks-ranked-the-pros-weigh-in"><u>Dow Jones stock</u></a> Friday, sinking 4.5% as the oil major's <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/chevron-stock-declines-despite-another-dividend-hike"><u>fourth-quarter earnings miss</u></a> offset a top-line beat. CVX also maintained its status as one of Wall Street's <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/dividend-stocks/best-dividend-stocks-you-can-count-on"><u>best dividend stocks for dependable dividend growth</u></a>, hiking its quarterly payout this time by 4.9%.</p><p>Elsewhere, <strong>Visa</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=V" target="_blank">V</a>) stock ended down 0.3% after the payments company's <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/visa-stock-rises-on-strong-earnings-bullish-outlook"><u>beat-and-raise quarter</u></a>. And <strong>Intel</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=INTC" target="_blank">INTC</a>) stock fell 2.9% as the chipmaker's <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/intel-earnings-do-little-to-excite-investors-what-to-know"><u>weak first-quarter guidance</u></a> offset higher-than-expected fourth-quarter results.</p><h2 id="walgreens-sinks-after-suspending-dividend-2">Walgreens sinks after suspending dividend</h2><p>But one of the most buzzworthy stories occurred outside of the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/17494/next-week-earnings-calendar-stocks"><u>earnings calendar</u></a>. Notably, <strong>Walgreens Boots Alliance</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=WBA" target="_blank">WBA</a>) said it is suspending its quarterly dividend in order to conserve cash, sending the former Dow stock down 10.3% on the day.</p><p>"This change in capital allocation is aimed at strengthening WBA's balance sheet by reducing debt over time and improving free cash flow, as the company works toward achieving a retail pharmacy-led turnaround underpinned by a sustainable economic model," Walgreens <a data-analytics-id="inline-link" href="https://investor.walgreensbootsalliance.com/news-releases/news-release-details/walgreens-boots-alliance-suspends-quarterly-dividend-company" target="_blank"><u>said in a statement</u></a>.</p><p>UBS Global Research analyst <a data-analytics-id="inline-link" href="https://www.linkedin.com/in/kevin-caliendo-5b202712" target="_blank"><u>Kevin Caliendo</u></a> said the dividend cut was "widely anticipated by investors" given Walgreens' fundamental struggles. He adds that by suspending its dividend, Walgreens is indicating that a potential buyout or large asset sale will not occur in the near term.</p><p>As for the main indexes, the <strong>Dow Jones Industrial Average</strong> closed down 0.8% at 44,544, the <strong>S&P 500</strong> shed 0.5% to 6,040, and the <strong>Nasdaq Composite</strong> gave back 0.3% to 19,627.</p><div class="tradingview-widget-container"> <div class="tradingview-widget-container__widget"></div> <div class="tradingview-widget-copyright"><a href="https://www.tradingview.com/" rel="noopener nofollow" target="_blank"><span class="blue-text">Track all markets on TradingView</span></a></div> <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-market-overview.js" async>{"source":"marketOverview","id":"e8813d5f-3ebb-4c9e-bdaa-d51faec48bdb","showFloatingTooltip":false,"showSymbolLogo":true,"showChart":true,"plotLineColorGrowing":"rgba(41, 98, 255, 1)","symbolActiveColor":"rgba(41, 98, 255, 0.12)","colorTheme":"light","width":"400","height":"550","isTransparent":false,"gridLineColor":"rgba(240, 243, 250, 0)","scaleFontColor":"rgba(19, 23, 34, 1)","belowLineFillColorFalling":"rgba(41, 98, 255, 0.12)","largeChartUrl":"","dateRange":"12M","belowLineFillColorGrowing":"rgba(41, 98, 255, 0.12)","belowLineFillColorFallingBottom":"rgba(41, 98, 255, 0)","plotLineColorFalling":"rgba(41, 98, 255, 1)","locale":"en","tabs":[{"title":"Indices","symbols":[{"s":"FOREXCOM:SPXUSD","d":"S&P 500 Index"},{"s":"FOREXCOM:DJI","d":"Dow Jones Industrial Average Index"},{"s":"NASDAQ:IXIC","d":"Nasdaq Composite"}],"originalTitle":"Indices"},{"title":"Futures","symbols":[{"s":"CME_MINI:ES1!","d":"S&P 500"},{"s":"CME:6E1!","d":"Euro"},{"s":"COMEX:GC1!","d":"Gold"},{"s":"NYMEX:CL1!","d":"WTI Crude Oil"},{"s":"NYMEX:NG1!","d":"Gas"},{"s":"CBOT:ZC1!","d":"Corn"}],"originalTitle":"Futures"},{"title":"Bonds","symbols":[{"s":"CBOT:ZB1!","d":"T-Bond"},{"s":"CBOT:UB1!","d":"Ultra T-Bond"},{"s":"EUREX:FGBL1!","d":"Euro Bund"},{"s":"EUREX:FBTP1!","d":"Euro BTP"},{"s":"EUREX:FGBM1!","d":"Euro BOBL"}],"originalTitle":"Bonds"},{"title":"Forex","symbols":[{"s":"FX:EURUSD","d":"EUR to USD"},{"s":"FX:GBPUSD","d":"GBP to USD"},{"s":"FX:USDJPY","d":"USD to JPY"},{"s":"FX:USDCHF","d":"USD to CHF"},{"s":"FX:AUDUSD","d":"AUD to USD"},{"s":"FX:USDCAD","d":"USD to CAD"}],"originalTitle":"Forex"}],"belowLineFillColorGrowingBottom":"rgba(41, 98, 255, 0)","realType":"embed"}</script></div><h3 class="article-body__section" id="section-related-content"><span>Related content</span></h3><ul><li><a href="https://www.kiplinger.com/investing/stocks-with-the-highest-dividend-yields-in-the-sandp-500">Stocks With the Highest Dividend Yields in the S&P 500</a></li><li><a href="https://www.kiplinger.com/investing/invest-in-alternatives-what-to-consider">What to Consider Before You Invest in Alternatives</a></li><li><a href="https://www.kiplinger.com/business/how-ai-will-impact-our-lives">How AI Will Impact Our Lives in 2025 and Beyond</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/investing/stocks/stock-market-today-trump-tariff-worries-pressure-stocks</link> <description> <![CDATA[ Stocks swung lower Friday after the White House confirmed it will impose tariffs on Mexico, Canada and China beginning tomorrow. ]]> </description> <guid isPermaLink="false">XSzSWnhzdm5QvzcRLnqACe</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/dqf9SDYqi2Vv7W2eCPYfrj.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Fri, 31 Jan 2025 21:09:15 +0000</pubDate> <category><![CDATA[Stocks]]></category> <category><![CDATA[Investing]]></category> <author><![CDATA[ karee.venema@futurenet.com (Karee Venema) ]]></author> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/dqf9SDYqi2Vv7W2eCPYfrj.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[Close-up of computer monitor displaying stock market graphs]]></media:text> <media:title type="plain"><![CDATA[Close-up of computer monitor displaying stock market graphs]]></media:title> </media:content> </item> <item> <title><![CDATA[ Sorry, Florida, Retirees Just Aren't That Into You ]]></title> <dc:content><![CDATA[ <p>If you’re trading in your work shoes for sandals, putting on a bathing suit and a big, floppy sun hat, you might be retiring. And what better place to relax and unwind than in the Sunshine State? Not so fast. It seems the bloom is off the citrus tree as retirees bypass Florida for other states that offer a better quality of life.</p><p>Between the extreme weather, hot humidity, rising costs, creepy critters and overcrowding, Florida is no longer the go-to state it once was. At least, that’s what a <a data-analytics-id="inline-link" href="https://www.gobankingrates.com/retirement/planning/experts-predict-these-states-will-be-top-retirement-spots-in-10-years/" target="_blank" rel="nofollow">recent survey</a> from GoBankingRates says.</p><p>Some analysts blame the slowdown in the white-hot Florida market on, among other things, a combination of a slowing economy and increased insurance rates — more than 19.8% above the national average over the last two years, according to a report from <a data-analytics-id="inline-link" href="https://insurify.com/homeowners-insurance/report/home-insurance-price-projections/" target="_blank" rel="nofollow"><u>Insurify</u></a>. Add to that an average home price of $386,892, an uptick in crime in many areas, termites galore and an overabundance of boomers, and you have several good reasons to stay away.</p><p>But, as Jerry Seinfeld put it, “My parents didn’t want to move to Florida, but they turned sixty, and that’s the law.”</p><h2 id="five-states-leaving-florida-in-the-shade-2">Five states leaving Florida in the shade</h2><p>Now that Florida’s retirees are fleeing, experts predict these five states will be top retirement spots in the next ten years.</p><figure class="van-image-figure inline-layout" data-bordeaux-image-check ><div class='image-full-width-wrapper'><div class='image-widthsetter' style="max-width:1600px;"><p class="vanilla-image-block" style="padding-top:56.25%;"><img id="75quktG4YBnK7ttEYAC2K3" name="Austin, TX" alt="Austin, Tx at night." src="https://cdn.mos.cms.futurecdn.net/75quktG4YBnK7ttEYAC2K3.jpg" mos="" align="middle" fullscreen="" width="1600" height="900" attribution="" endorsement="" class=""></p></div></div><figcaption itemprop="caption description" class=" inline-layout"><span class="credit" itemprop="copyrightHolder">(Image credit: Getty Images)</span></figcaption></figure><h2 id="1-texas-2">1. Texas</h2><p>Apparently, it’s now all about Texas as the Lone Star State makes the list as a favorite destination for retirees ditching the Florida sunshine. Much of that popularity is based on the fact there is no individual income tax and no tax on Social Security. Not only that, GOBankingRates data uncovered at least ten Texas cities that were considered hidden gems for retirees. Cities like Frisco, El Paso and Plano all received mentions, partly thanks to low crime rates and an affordable cost of living.</p><figure class="van-image-figure inline-layout" data-bordeaux-image-check ><div class='image-full-width-wrapper'><div class='image-widthsetter' style="max-width:1600px;"><p class="vanilla-image-block" style="padding-top:56.25%;"><img id="XMqoFiXTXCmXn89LgvnizZ" name="Concord, NH" alt="A view of Concord, NH." src="https://cdn.mos.cms.futurecdn.net/XMqoFiXTXCmXn89LgvnizZ.jpg" mos="" align="middle" fullscreen="" width="1600" height="900" attribution="" endorsement="" class=""></p></div></div><figcaption itemprop="caption description" class=" inline-layout"><span class="credit" itemprop="copyrightHolder">(Image credit: Getty Images)</span></figcaption></figure><h2 id="2-new-hampshire-2">2. New Hampshire</h2><p>In spite of long winters and brutal cold temps, New Hampshire was ranked as one of the best states to retire in 2024, per a study conducted by <a data-analytics-id="inline-link" href="https://www.empower.com/the-currency/life/top-states-to-retire"><u>Empower</u></a>. Firstly, the Granite State’s tax-friendly reputation continues to be a big draw with retirees. Its minimal tax burden — at 5.1% — is the lowest of any U.S. state. Tack on no tax on Social Security benefits, and you have a retiree’s dream spot, even with a 5% tax imposed on investment income.</p><figure class="van-image-figure inline-layout" data-bordeaux-image-check ><div class='image-full-width-wrapper'><div class='image-widthsetter' style="max-width:2121px;"><p class="vanilla-image-block" style="padding-top:66.67%;"><img id="yHJQrgqynACXdHjudWDpGL" name="GettyImages-476250858.jpg" alt="Raleigh, North Carolina, USA downtown and George Washington Monument as viewed from the Capitol Building ground" src="https://cdn.mos.cms.futurecdn.net/yHJQrgqynACXdHjudWDpGL.jpg" mos="" align="middle" fullscreen="" width="2121" height="1414" attribution="" endorsement="" class=""></p></div></div><figcaption itemprop="caption description" class=" inline-layout"><span class="credit" itemprop="copyrightHolder">(Image credit: Getty Images)</span></figcaption></figure><h2 id="3-north-carolina-2">3. North Carolina</h2><p>Violent storms aside, GOBankingRates data showed that North Carolina would be an up-and-coming state with retirees in 2025. One major reason is an affordable housing market According to<a data-analytics-id="inline-link" href="https://realestate.usnews.com/real-estate/articles/the-best-places-to-retire-in-north-carolina" target="_blank" rel="nofollow"> <u>U.S. News & World Report</u></a>, several major cities, including Charlotte and Raleigh, have median mortgage and rent costs that don’t exceed $1,500 a month. And although North Carolina's climate varies depending on the region, many areas have a moderate climate with warm summers and mild winters, making it an impressive destination for retirees who want to avoid harsh winter weather conditions.</p><figure class="van-image-figure inline-layout" data-bordeaux-image-check ><div class='image-full-width-wrapper'><div class='image-widthsetter' style="max-width:2121px;"><p class="vanilla-image-block" style="padding-top:66.67%;"><img id="n7AodQBhAwLQvn2nTGPyGY" name="GettyImages-164333927.jpg" alt="picture of downtown Little Rock, Arkansas" src="https://cdn.mos.cms.futurecdn.net/n7AodQBhAwLQvn2nTGPyGY.jpg" mos="" align="middle" fullscreen="" width="2121" height="1414" attribution="" endorsement="" class=""></p></div></div><figcaption itemprop="caption description" class=" inline-layout"><span class="credit" itemprop="copyrightHolder">(Image credit: Getty Images)</span></figcaption></figure><h2 id="4-arkansas-2">4. Arkansas</h2><p>If you're a retiree on a fixed income, consider Arkansas, where your retirement could cost under $50,000 per year, depending on your spending habits. GoBankingRates data indicated that Arkansas’ total annual cost of living is $43,865, which is about $3,600 a month, with retirees paying $547 in healthcare and $392 in grocery costs monthly. Besides a low cost-of-living, Arkansas does not tax Social Security benefits and other types of retirement income, like pensions and 401(k) withdrawals.</p><figure class="van-image-figure inline-layout" data-bordeaux-image-check ><div class='image-full-width-wrapper'><div class='image-widthsetter' style="max-width:3200px;"><p class="vanilla-image-block" style="padding-top:56.25%;"><img id="r7xsaxPAXPffg4Mw8EDFSQ" name="Des Moines.jpg" alt="The Des Moines, Iowa skyline at night" src="https://cdn.mos.cms.futurecdn.net/r7xsaxPAXPffg4Mw8EDFSQ.jpg" mos="" align="middle" fullscreen="" width="3200" height="1800" attribution="" endorsement="" class=""></p></div></div><figcaption itemprop="caption description" class=" inline-layout"><span class="credit" itemprop="copyrightHolder">(Image credit: Getty Images)</span></figcaption></figure><h2 id="5-iowa-2">5. Iowa</h2><p>Original research conducted by life insurance agency<a data-analytics-id="inline-link" href="https://choicemutual.com/blog/best-states-to-retire/"> <u>Choice Mutual</u></a> cited Iowa as one of the best states for retirement in 2024, and GoBankingRates concurs. The state has many attractive features, but an outstanding healthcare system, low crime rates, affordable housing, and low cost of living are all factors that clinched a place in the top five states for retirees. Retirees can anticipate spending around $400 in transportation costs and about $622 in healthcare expenses monthly, with the total monthly cost of living coming out to about $3,910.</p><h2 id="how-much-you-ll-need-to-save-to-retire-in-florida-2">How much you'll need to save to retire in Florida</h2><p>In another study this past January, GOBankingRates determined just how much savings retirees would need to have stored up before retiring in every state. Florida, unfortunately, is on the higher end of that spectrum. Here are some key takeaways:</p><p><strong>Annual cost of living minus Social Security income:</strong> $36,829.42</p><p><strong>Minimum savings needed for 20 years of retirement:</strong> $736,588</p><p><strong>Minimum savings needed for 25 years of retirement: </strong>$920,736</p><p><strong>Minimum savings needed for 30 years of retirement:</strong> $1,105,989</p><p>If you still have your sights set on retiring in Florida, take a look at these <a data-analytics-id="inline-link" href="https://www.kiplinger.com/slideshow/retirement/t047-s001-reasons-you-don-t-want-to-retire-in-florida/index.html"><u><strong>10 Reasons You Don't Want to Retire in Florida</strong></u></a><strong>.</strong></p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/retirement/retirement-planning/a-checklist-for-retiring-in-2025">A Checklist for Retiring in 2025</a></li><li><a href="https://www.kiplinger.com/retirement/happy-retirement/best-places-to-retire-in-the-us">Best Places to Retire in the U.S.</a></li><li><a href="https://www.kiplinger.com/retirement/magic-number-to-retire-comfortably">The 'Magic Number' to Retire Comfortably Is More Than You Think</a></li><li><a href="https://www.kiplinger.com/retirement/retire-early-this-year-is-this-the-year-you-take-the-leap">Retire Early in 2026: Is This the Year You Take the Leap?</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/retirement/retirees-leaving-florida</link> <description> <![CDATA[ For years, Florida was the go-to state for retirees looking for sunshine, warm temps, sandy beaches and endless ways to stay busy. But those glory days may be over, according to a recent study ]]> </description> <guid isPermaLink="false">2PXXYCjLEGJEacexqTh3Di</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/2hDiYTbKNNLaXDswDBtv9T.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Fri, 31 Jan 2025 20:38:15 +0000</pubDate> <category><![CDATA[Retirement]]></category> <category><![CDATA[Places-to-live]]></category> <category><![CDATA[Real-estate]]></category> <author><![CDATA[ upnorthwriter@icloud.com (Kathryn Pomroy) ]]></author> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/2hDiYTbKNNLaXDswDBtv9T.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[Welcome to Florida sign with palm trees behind it]]></media:text> <media:title type="plain"><![CDATA[Welcome to Florida sign with palm trees behind it]]></media:title> </media:content> </item> <item> <title><![CDATA[ Chevron Stock Declines Despite Another Dividend Hike ]]></title> <dc:content><![CDATA[ <p><strong>Chevron</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=CVX" target="_blank">CVX</a>) stock is down Friday after the integrated energy company beat revenue forecasts but came up short of profit expectations for its fourth quarter.</p><div class="tradingview-widget-container"> <div class="tradingview-widget-container__widget"></div> <div class="tradingview-widget-copyright"><a href="https://www.tradingview.com/" rel="noopener nofollow" target="_blank"><span class="blue-text">Track all markets on TradingView</span></a></div> <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-single-quote.js" async>{"source":"singleQuote","id":"467855f3-be06-49dd-8e92-e64903c76460","colorTheme":"light","isTransparent":false,"locale":"en","width":"350","symbol":"CVX","realType":"embed"}</script></div><p><a data-analytics-id="inline-link" href="https://www.chevron.com/-/media/chevron/stories/documents/4Q-2024-earnings-press-release.pdf" target="_blank"><u>In the three months ending December 31</u></a>, Chevron's revenue increased 10.7% year over year to $52.2 billion. Earnings per share (EPS) declined 17.9% from the year-ago period to $2.06.</p><p>"In 2024, we delivered record production, returned record cash to shareholders, and started up key growth projects," said Chevron CEO Mike Wirth in a statement. "We strengthened our portfolio and committed to reduce costs and maintain capital discipline, positioning us for significant free cash flow growth."</p><p>Chevron, which is seeking re-approval by the White House of <a data-analytics-id="inline-link" href="https://www.ft.com/content/61c83b8f-6c6f-4200-b389-f186f0a69c75" target="_blank">a license that supports 200,000 barrels per day of production</a> in Venezuela, is among the first U.S. companies to follow a Trump administration executive order renaming the Gulf of Mexico the "Gulf of America."</p><p>Chevron said worldwide net oil-equivalent production was up 7%, with U.S. output up 19%. "The company started up several key projects in the Gulf of America," Wirth said, "including the industry-first, high-pressure Anchor project."</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_TZ5u6hI1_a7GJFMMh_div' class='future__jwplayer'><div id='botr_TZ5u6hI1_a7GJFMMh_div'></div></div></div></div><p>The results were mixed compared with analysts' expectations. Wall Street was anticipating revenue of $46.8 billion and earnings of $2.11 per share, according to <a data-analytics-id="inline-link" href="https://www.cnbc.com/2025/01/31/stocks-making-the-biggest-moves-premarket-aapl-team-wba-deck-and-more.html" target="_blank"><u>CNBC</u></a>.</p><p>Chevron also announced a 4.9% increase to its quarterly dividend. Its new quarterly dividend rate is $1.71 per share, and the first payment will come on March 10 to shareholders of record as of February 14.</p><p>Chevron is one of the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/dividend-stocks/best-dividend-stocks-you-can-count-on"><u>best dividend stocks to buy for dependable dividend growth</u></a> and this latest increase marks the 38th consecutive year the integrated energy company has raised its annual dividend payment.</p><h2 id="is-chevron-stock-a-buy-sell-or-hold-2">Is Chevron stock a buy, sell or hold?</h2><p>Wall Street is bullish on the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/best-energy-stocks">energy stock</a>, which has underperformed the S&P 500 over the trailing 12 months with a total return of about 9% vs 25% for the index. That performance gap has narrowed over the last three months, though, with CVX up 7% since October 31 and the index up 5%.</p><p>According to <a data-analytics-id="inline-link" href="https://www.spglobal.com/marketintelligence/en/" target="_blank"><u>S&P Global Market Intelligence</u></a>, the average analyst target price for the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/blue-chip-stocks/602319/all-30-dow-jones-stocks-ranked-the-pros-weigh-in">Dow Jones stock</a> is $177.19, representing implied upside of more than 16% to current levels. Additionally, the consensus recommendation is a Buy.</p><p>Financial services firm BofA Securities is one of those outfits with a Buy rating on CVX, which remains one of the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/best-long-term-investment-stocks">best long-term investment stocks</a> to buy.</p><p>"We rate CVX Buy and it is our top pick into 2025 despite the oil macro on rising free cash flow from projects and cost cutting, and getting Hess certainty," wrote BofA Securities analyst <a data-analytics-id="inline-link" href="https://www.linkedin.com/in/jean-ann-salisbury-93454835/">Jean Ann Salisbury</a> in a January 10 note.</p><p>Salisbury added that BofA expects Chevron's deal for Hess to close, "giving CVX 30% stake in Guyana filling its end of the decade production gap."</p><p>The analyst has 12-month price target of $180 on CVX, implying upside of approximately 20% to current levels.</p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/investing/stocks/601018/kiplinger-dividend-15-our-favorite-dividend-paying-stocks"><u>The Kiplinger Dividend 15: Our Favorite Dividend-Paying Stocks</u></a></li><li><a href="https://www.kiplinger.com/investing/analysts-top-sandp-500-stocks-to-buy-now"><u>Analysts' Top S&P 500 Stocks to Buy Now</u></a></li><li><a href="https://www.kiplinger.com/investing/stocks/stocks-to-buy/604302/stock-picks-that-billionaires-love"><u>Stock Picks That Billionaires Love</u></a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/investing/stocks/chevron-stock-declines-despite-another-dividend-hike</link> <description> <![CDATA[ Chevron stock is down Friday after the integrated energy company missed fourth-quarter profit expectations. Here's what you need to know. ]]> </description> <guid isPermaLink="false">EX3qcaqRPdaTnXne8wpQHd</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/ndR9cqzMsNdsy4ZK7Jucmk.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Fri, 31 Jan 2025 17:21:39 +0000</pubDate> <category><![CDATA[Stocks]]></category> <category><![CDATA[Investing]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/ndR9cqzMsNdsy4ZK7Jucmk.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[Park City, UT, May 14, 2017: Sun shines on the display stand for a Chevron gas station.]]></media:text> <media:title type="plain"><![CDATA[Park City, UT, May 14, 2017: Sun shines on the display stand for a Chevron gas station.]]></media:title> </media:content> </item> <item> <title><![CDATA[ Why Walgreens Suspended Its Dividend ]]></title> <dc:content><![CDATA[ <p><strong>Walgreens Boots Alliance</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=WBA" target="_blank">WBA</a>) stock was one of the worst-performing S&P 500 stocks on Friday, January 31, after the drugstore chain announced it is suspending its quarterly dividend.</p><div class="tradingview-widget-container"> <div class="tradingview-widget-container__widget"></div> <div class="tradingview-widget-copyright"><a href="https://www.tradingview.com/" rel="noopener nofollow" target="_blank"><span class="blue-text">Track all markets on TradingView</span></a></div> <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-single-quote.js" async>{"source":"singleQuote","id":"ac3d2184-befd-4f35-ae20-008cac510d7a","colorTheme":"light","isTransparent":false,"locale":"en","width":"350","symbol":"NASDAQ:WBA","realType":"embed"}</script></div><p>"This change in capital allocation is aimed at strengthening WBA's balance sheet by reducing debt over time and improving free cash flow, as the company works toward achieving a retail pharmacy-led turnaround underpinned by a sustainable economic model," Walgreens <a data-analytics-id="inline-link" href="https://investor.walgreensbootsalliance.com/news-releases/news-release-details/walgreens-boots-alliance-suspends-quarterly-dividend-company" target="_blank"><u>said in a statement</u></a>.</p><p>The company added that its "cash needs over the next several years," which includes litigation and debt refinancing, "were important considerations as part of the decision to suspend the dividend."</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_TZ5u6hI1_a7GJFMMh_div' class='future__jwplayer'><div id='botr_TZ5u6hI1_a7GJFMMh_div'></div></div></div></div><p>The move comes just three weeks after Walgreens <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/why-walgreens-wba-is-the-best-s-and-p-500-stock-after-earnings"><u>beat top- and bottom-line expectations</u></a> for its fiscal 2025 first quarter and maintained its full-year profit forecast.</p><p>However, based on Walgreens' forecast for full-year earnings of $1.40 to $1.80 per share, its 25 cents per share quarterly dividend would have resulted in a full-year payout ratio [how much it costs a company to pay its dividend as a percentage of earnings] of 55.6% to 71.4%. And this would not be a prudent use of capital in a turnaround situation.</p><p>Walgreens did not provide any indication as to if or when the dividend would be reinstated.</p><h2 id="is-walgreens-stock-a-buy-sell-or-hold-2">Is Walgreens stock a buy, sell or hold?</h2><p>Walgreens Boots Alliance's struggles have extended to the price charts, as well, with shares of the former <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/blue-chip-stocks/602319/all-30-dow-jones-stocks-ranked-the-pros-weigh-in">Dow Jones stock</a> down roughly 60% in the past 12 months. Unsurprisingly, Wall Street is on the sidelines when it comes to the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/best-consumer-discretionary-stocks">consumer discretionary stock</a>.</p><p>According to <a data-analytics-id="inline-link" href="https://www.spglobal.com/marketintelligence/en/"><u>S&P Global Market Intelligence</u></a>, the average analyst target price for WBA stock is $12.35. While this represents implied upside of more than 20% to current levels, it's more likely a case of analysts failing to keep up with the falling share price vs expectations for a major rally. Meanwhile, the consensus recommendation is Hold.</p><p>Financial services firm UBS Global Research is one of those with a Neutral rating (equivalent to a Hold) on WBA stock, along with an $11 price target.</p><p>"A [dividend] cut was widely anticipated by investors given depressed cash flow, elevated leverage, and limited balance sheet flexibility barring a sale of assets," says UBS Global Research analyst <a data-analytics-id="inline-link" href="https://www.linkedin.com/in/kevin-caliendo-5b202712" target="_blank">Kevin Caliendo</a>. The company will save roughly $86 million by suspending its dividend, "which will likely be used to manage near-term working capital needs, pay down near-term debt, and potentially fund improvements into the core business," he notes.</p><p>Caliendo adds that the dividend cut may also indicate that a potential buyout or large asset sale will not occur in the near term.</p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/investing/stocks/intel-earnings-do-little-to-excite-investors-what-to-know">Intel Earnings Do Little to Excite Investors: What to Know</a></li><li><a href="https://www.kiplinger.com/investing/stocks/apple-aapl-stock-climbs-to-the-top-of-the-dow-after-earnings">Apple Stock Climbs to the Top of the Dow After Earnings</a></li><li><a href="https://www.kiplinger.com/investing/stocks/visa-stock-rises-on-strong-earnings-bullish-outlook">Visa Stock Rises on Strong Earnings, Bullish Outlook</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/investing/stocks/why-walgreens-suspended-its-dividend</link> <description> <![CDATA[ Walgreens stock spiraled Friday after the pharmacy chain suspended its dividend amid continued turnaround plans. Here's what you need to know. ]]> </description> <guid isPermaLink="false">mSyrgfcbFM8EH8ouGzqjJB</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/XPPJ2aT6oFVVVzbWCoj9rn.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Fri, 31 Jan 2025 16:27:01 +0000</pubDate> <category><![CDATA[Stocks]]></category> <category><![CDATA[Investing]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/XPPJ2aT6oFVVVzbWCoj9rn.jpg"> <media:credit><![CDATA[Artur Widak/NurPhoto via Getty Images]]></media:credit> <media:text><![CDATA[A Walgreens Pharmacy logo displayed along Las Vegas Blvd]]></media:text> <media:title type="plain"><![CDATA[A Walgreens Pharmacy logo displayed along Las Vegas Blvd]]></media:title> </media:content> </item> <item> <title><![CDATA[ Intel Earnings Do Little to Excite Investors: What to Know ]]></title> <dc:content><![CDATA[ <p><strong>Intel</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=INTC" target="_blank">INTC</a>) stock is bouncing between positive and negative territory Friday as Wall Street weighs the embattled chipmaker's top- and bottom-line beat for its fourth quarter against a weaker-than-expected outlook for its first quarter.</p><div class="tradingview-widget-container"> <div class="tradingview-widget-container__widget"></div> <div class="tradingview-widget-copyright"><a href="https://www.tradingview.com/" rel="noopener nofollow" target="_blank"><span class="blue-text">Track all markets on TradingView</span></a></div> <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-single-quote.js" async>{"source":"singleQuote","id":"d98b2bc9-b6d9-4106-8ae3-202b051fc6cd","colorTheme":"light","isTransparent":false,"locale":"en","width":"350","symbol":"NASDAQ:INTC","realType":"embed"}</script></div><p><a data-analytics-id="inline-link" href="https://www.intc.com/news-events/press-releases/detail/1726/intel-reports-fourth-quarter-and-full-year-2024-financial" target="_blank"><u>In the three months ending December 28</u></a>, Intel's revenue decreased 7.4% year over year to $14.3 billion. Its earnings per share (EPS) slumped 75.9% from the year-ago period to 13 cents.</p><p>"The fourth quarter was a positive step forward as we delivered revenue, gross margin and EPS above our guidance," said <a data-analytics-id="inline-link" href="https://www.kiplinger.com/tag/intel"><u>Intel</u></a> interim co-CEO and CEO of Intel Products Michelle Johnston Holthaus in a statement.</p><p>Holthaus added that Intel's "renewed focus on strengthening and simplifying our product portfolio, combined with continued progress on our process roadmap, is positioning us to better serve the needs of our customers."</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_TZ5u6hI1_a7GJFMMh_div' class='future__jwplayer'><div id='botr_TZ5u6hI1_a7GJFMMh_div'></div></div></div></div><p>The results beat analyst' expectations. Wall Street was anticipating revenue of $13.8 billion and earnings of 12 cents per share, according to <a data-analytics-id="inline-link" href="https://www.cnbc.com/2025/01/30/intel-intc-q4-earnings-report-2024.html" target="_blank"><u>CNBC</u></a>.</p><p>For the first quarter of its new <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/fiscal-year-definition-what-every-investor-should-know">fiscal year</a>, Intel said it expects revenue in the range of $11.7 billion to $12.7 billion and earnings of approximately zero cents per share. This is well below the $12.9 billion in revenue and 9 cents per share in earnings analysts are calling for.</p><p>"Our Q1 outlook reflects seasonal weakness magnified by macro uncertainties, further inventory digestion and competitive dynamics," said Intel interim co-CEO and Chief Financial Officer David Zinsner in a statement. "We will remain highly focused on execution to build on our progress and unlock value."</p><p><a data-analytics-id="inline-link" href="https://www.linkedin.com/in/david-w-wagner-iii-cfa-6161482a" target="_blank">David Wagner</a>, head of equity and portfolio manager at<a data-analytics-id="inline-link" href="https://aptuscapitaladvisors.com/" target="_blank"> Aptus Capital Advisors</a>, says for him, the person who will be tapped as Intel's new CEO is more important than this print. "At the end of the day, it's hard to get a new direction for the firm if we don't know who is at the helm," he notes.</p><h2 id="is-intel-stock-a-buy-sell-or-hold-2">Is Intel stock a buy, sell or hold?</h2><p>Intel's woes both on and off the price charts have been widely discussed across Wall Street. As for its share price, the former <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/blue-chip-stocks/602319/all-30-dow-jones-stocks-ranked-the-pros-weigh-in">Dow Jones stock</a> is down 53% over the past 12 months vs the S&P 500's 24% gain. Unsurprisingly, analysts are firmly on the sidelines when it comes to the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/best-semiconductor-stocks"><u>semiconductor stock</u></a>.</p><p>According to <a data-analytics-id="inline-link" href="https://www.spglobal.com/marketintelligence/en/" target="_blank"><u>S&P Global Market Intelligence</u></a>, the average analyst target price for INTC stock is $22.55, representing implied upside of nearly 14% to current levels. Meanwhile, the consensus recommendation is Hold.</p><p>Financial services firm Oppenheimer is one of those with a Perform rating (equivalent to a Hold) on the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/the-best-large-cap-stocks-to-buy">large-cap stock</a>.</p><p>"Intel remains largely tied to PC growth, and our relatively bearish stance reflects our belief that the PC market has begun a secular decline,”" says Oppenheimer analyst <a data-analytics-id="inline-link" href="https://www.linkedin.com/in/rick-schafer-46466514" target="_blank">Rick Schafer</a>. "We remain constructive on the data center outlook for now but remain cautious of PC unit growth and associated revenue growth."</p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/investing/stocks/visa-stock-rises-on-strong-earnings-bullish-outlook"><u>Visa Stock Rises on Strong Earnings, Bullish Outlook</u></a></li><li><u></u><a href="https://www.kiplinger.com/invested-1000-in-Intel-INTC-stock-worth-how-much-now"><u>If You'd Put $1,000 Into Intel Stock 20 Years Ago, Here's What You'd Have Today</u></a></li><li><a href="https://www.kiplinger.com/investing/stocks/stocks-to-buy/604302/stock-picks-that-billionaires-love"><u>Stock Picks That Billionaires Love</u></a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/investing/stocks/intel-earnings-do-little-to-excite-investors-what-to-know</link> <description> <![CDATA[ Intel stock is struggling for direction Friday after the chipmaker reported a fourth-quarter beat but gave weak guidance. Here's what Wall Street has to say. ]]> </description> <guid isPermaLink="false">M79CtESdM5mnUPWzmB8H6d</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/zuri4ZCpJm9uwGspucfRz.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Fri, 31 Jan 2025 15:47:26 +0000</pubDate> <category><![CDATA[Stocks]]></category> <category><![CDATA[Investing]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/zuri4ZCpJm9uwGspucfRz.jpg"> <media:credit><![CDATA[Justin Sullivan/Getty Images]]></media:credit> <media:text><![CDATA[an Intel sign posted in front of the company's headquarters in Santa Clara, California]]></media:text> <media:title type="plain"><![CDATA[an Intel sign posted in front of the company's headquarters in Santa Clara, California]]></media:title> </media:content> </item> <item> <title><![CDATA[ Visa Stock Rises on Strong Earnings, Bullish Outlook ]]></title> <dc:content><![CDATA[ <p><strong>Visa</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=V" target="_blank">V</a>) stock is higher Friday after the payments company beat top- and bottom-line expectations for its fiscal 2025 first quarter and raised its full-year outlook.</p><div class="tradingview-widget-container"> <div class="tradingview-widget-container__widget"></div> <div class="tradingview-widget-copyright"><a href="https://www.tradingview.com/" rel="noopener nofollow" target="_blank"><span class="blue-text">Track all markets on TradingView</span></a></div> <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-single-quote.js" async>{"source":"singleQuote","id":"6605f909-89db-4a0d-8260-2bf8093a2664","colorTheme":"light","isTransparent":false,"locale":"en","width":"350","symbol":"V","realType":"embed"}</script></div><p><a data-analytics-id="inline-link" href="https://s1.q4cdn.com/050606653/files/doc_financials/2025/q1/Q1-2025-Earnings-Release_vF.pdf" target="_blank"><u>In the three months ending December 31</u></a>, Visa’s revenue increased 10% year over year to $9.5 billion, boosted by a 9% increase in payment volume, a 16% increase in cross-border volume and a 11% increase in processed transactions. Earnings per share (EPS) rose 14% from the year-ago period to $2.75.</p><p>"Visa's strong first-quarter results reflected healthy spending during the holiday season and improving trends in payments volume, cross-border volume, and processed transactions growth," Visa CEO Ryan McInerney said in a statement.</p><p>The executive added that Visa remains "focused on serving our clients and innovating across our three growth levers – consumer payments, new flows and value-added services."</p><p>The payments processing giant appears to be operating on a business-as-usual basis amid an ongoing <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/whats-next-for-visa-stock-after-doj-lawsuit">September 2024 antitrust lawsuit</a> filed by the Department of Justice (DOJ) accusing it of "exclusionary and anticompetitive conduct."</p><p>During <a data-analytics-id="inline-link" href="https://s1.q4cdn.com/050606653/files/doc_financials/2024/q4/CORRECTED-TRANSCRIPT_-Visa-Inc-V-US-Q4-2024-Earnings-Call-29-October-2024-5_00-PM-ET.pdf" target="_blank">Visa's earnings conference call</a> in October, McInerney said "the lawsuit is meritless and shows a clear lack of understanding of the payment ecosystem in the United States."</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_TZ5u6hI1_a7GJFMMh_div' class='future__jwplayer'><div id='botr_TZ5u6hI1_a7GJFMMh_div'></div></div></div></div><p>The results topped analysts' expectations. Wall Street was anticipating revenue of $9.3 billion and earnings of $2.66 per share, according to <a data-analytics-id="inline-link" href="https://www.cnbc.com/2025/01/30/stocks-making-the-biggest-moves-after-hours-aapl-intc-team-deck.html" target="_blank"><u>CNBC</u></a>.</p><p><a data-analytics-id="inline-link" href="https://s1.q4cdn.com/050606653/files/doc_financials/2025/q1/Visa-Inc-First-Quarter-2025-Financial-Results-Presentation.pdf" target="_blank"><u>In its earnings presentation</u></a>, Visa raised its full-year outlook. The company now anticipates low double-digit revenue growth and low-teens earnings growth. It <a data-analytics-id="inline-link" href="https://s1.q4cdn.com/050606653/files/doc_financials/2024/q4/Visa-Inc-Fourth-Quarter-2024-Financial-Results-Presentation.pdf" target="_blank"><u>had previously guided to</u></a> high single-digit to low double-digit revenue growth and the high end of low double-digit earnings growth.</p><p>For the second quarter, Visa said it anticipates high single-digit to low double-digit revenue growth and high single-digit earnings growth.</p><h2 id="is-visa-stock-a-buy-sell-or-hold-2">Is Visa stock a buy, sell or hold?</h2><p>Visa quickly recovered from a short sell-off triggered by the DOJ filing in September and has performed almost exactly in line with the S&P 500 over the trailing 12 months, generating a total return of 24.73% vs 24.97% for the index. And Wall Street remains bullish on the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/blue-chip-stocks/602319/all-30-dow-jones-stocks-ranked-the-pros-weigh-in">Dow Jones stock</a>.</p><p>According to <a data-analytics-id="inline-link" href="https://www.spglobal.com/marketintelligence/en/" target="_blank"><u>S&P Global Market Intelligence</u></a>, the average analyst price target for V stock is $363.36, representing implied upside of more than 4% from current levels. Additionally, the consensus recommendation is a Buy.</p><p>Financial services firm Oppenheimer has an Outperform rating (equivalent to a Buy) with a $390 price target on the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/blue-chip-stocks/605147/hedge-funds-top-blue-chip-stocks-to-buy-now">blue chip stock</a>.</p><p>"Visa remains well-positioned to gain global market share from the multi-year runway to convert paper-based payments to card, enabling high-single payment volume growth over the next 3 years, at least," said Oppenheimer analyst <a data-analytics-id="inline-link" href="https://www.linkedin.com/in/rayna-kumar-2b55344/" target="_blank">Rayna Kumar</a> in a note yesterday.</p><p>The analyst added that "the market is already pricing in slower growth based on our macro scenario analysis, and higher potential for regulatory risk."</p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/investing/stocks/apple-aapl-stock-climbs-to-the-top-of-the-dow-after-earnings">Apple Stock Climbs to the Top of the Dow After Earnings</a></li><li><a href="https://www.kiplinger.com/investing/analysts-top-sandp-500-stocks-to-buy-now"><u>Analysts' Top S&P 500 Stocks to Buy Now</u></a></li><li><a href="https://www.kiplinger.com/investing/stocks/stocks-to-buy/604302/stock-picks-that-billionaires-love"><u>Stock Picks That Billionaires Love</u></a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/investing/stocks/visa-stock-rises-on-strong-earnings-bullish-outlook</link> <description> <![CDATA[ Visa stock is up Friday after the payments company beat expectations for its fiscal 2025 first quarter and raised its outlook. Here's what you need to know. ]]> </description> <guid isPermaLink="false">cBFHj2eAtsPTkupjPewxHD</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/LnJ4pLSQdewAeAzgVQQRqC.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Fri, 31 Jan 2025 15:18:19 +0000</pubDate> <category><![CDATA[Stocks]]></category> <category><![CDATA[Investing]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/LnJ4pLSQdewAeAzgVQQRqC.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[Multiple Visa credit cards]]></media:text> <media:title type="plain"><![CDATA[Multiple Visa credit cards]]></media:title> </media:content> </item> <item> <title><![CDATA[ Apple Stock Climbs to the Top of the Dow After Earnings ]]></title> <dc:content><![CDATA[ <p><strong>Apple</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=AAPL" target="_blank">AAPL</a>) stock is the best <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/blue-chip-stocks/602319/all-30-dow-jones-stocks-ranked-the-pros-weigh-in">Dow Jones stock</a> out of the gate Friday after the technology giant beat top- and bottom-line expectations for its fiscal 2025 first quarter.</p><div class="tradingview-widget-container"> <div class="tradingview-widget-container__widget"></div> <div class="tradingview-widget-copyright"><a href="https://www.tradingview.com/" rel="noopener nofollow" target="_blank"><span class="blue-text">Track all markets on TradingView</span></a></div> <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-single-quote.js" async>{"source":"singleQuote","id":"70e56678-c032-418b-a56e-6dab128e6089","colorTheme":"light","isTransparent":false,"locale":"en","width":"350","symbol":"NASDAQ:AAPL","realType":"embed"}</script></div><p><a data-analytics-id="inline-link" href="https://www.apple.com/newsroom/pdfs/fy2025-q1/FY25_Q1_Consolidated_Financial_Statements.pdf" target="_blank"><u>In the three months ending December 28</u></a>, Apple's revenue increased 4% year over year to $124.3 billion, boosted by Services revenue that was up 13.9% to $26.3 billion. Its earnings per share (EPS) rose 10.1% from the year-ago period to $2.40.</p><p>"Our record revenue and strong operating margins drove EPS to a new all-time record with double-digit growth and allowed us to return over $30 billion to shareholders," said Apple Chief Financial Officer Kevan Parekh in a statement. "We are also pleased that our installed base of active devices has reached a new all-time high across all products and geographic segments."</p><p>These results beat analysts' expectations. Wall Street was anticipating total revenue of $124.1 billion, Services revenue of $26.1 billion and earnings of $2.35 per share, according to <a data-analytics-id="inline-link" href="https://www.cnbc.com/2025/01/30/apple-aapl-q1-earnings-2025.html" target="_blank"><u>CNBC</u></a>.</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_TZ5u6hI1_a7GJFMMh_div' class='future__jwplayer'><div id='botr_TZ5u6hI1_a7GJFMMh_div'></div></div></div></div><p>Apple also said that Mac sales increased 15.5% to $9 billion and iPad sales rose 15.2% to $8.1 billion. On the other hand, iPhone sales decreased 0.8% to $69.1 billion and Wearables, Home and Accessories [Other products] sales fell 1.7% to $11.8 billion.</p><p>Analysts were anticipating Mac revenue of $8 billion, iPad revenue of $7.3 billion, iPhone revenue of $71 billion, and Other products revenue of $12 billion.</p><p>The report also showed sales in China fell 11% year over year, while all other regions saw growth.</p><h2 id="is-apple-stock-a-buy-sell-or-hold-2">Is Apple stock a buy, sell or hold?</h2><p>Apple shares struggled to start the new year, but they have been trending higher over the past two weeks. Longer term, AAPL is up 30% year over year, outpacing the S&P 500's 23% gain. And Wall Street remains upbeat toward the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/blue-chip-stocks/605147/hedge-funds-top-blue-chip-stocks-to-buy-now">blue chip stock</a>.</p><p>According to <a data-analytics-id="inline-link" href="https://www.spglobal.com/marketintelligence/en/" target="_blank"><u>S&P Global Market Intelligence</u></a>, the average analyst target price for AAPL stock is $251.33, representing implied upside of nearly 6% to its January 30 close. Additionally, the consensus recommendation is Buy.</p><p>Financial services firm Wedbush is one of the most bullish outfits on the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/the-best-large-cap-stocks-to-buy">large-cap stock</a> with an Outperform rating (equivalent to a Buy) and a Street-high $325 price target.</p><p>"Heading into Apple earnings many of the long time bears and haters on Cupertino were painting a demand picture that was dire for iPhone 16 and the overall Apple story," says Wedbush analyst <a data-analytics-id="inline-link" href="https://www.wedbush.com/analysts/daniel-ives/" target="_blank">Daniel Ives</a>. But overall, this was "a clean quarter for Apple that marks the beginning of a multi-year upgrade cycle from iPhone 16 to iPhone 17," he adds.</p><p>Additionally, Ives notes that Apple gave "some important granular data further supporting Apple Intelligence-driven demand as markets where" the artificial intelligence (AI) feature was available saw "clear year-over-year performance outpace markets without this AI rollout."</p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><u></u><a href="https://www.kiplinger.com/investing/stocks/invested-1000-in-apple-stock-worth-how-much-now"><u>If You'd Put $1,000 Into Apple Stock 20 Years Ago, Here's What You'd Have Today</u></a></li><li><a href="https://www.kiplinger.com/investing/analysts-top-sandp-500-stocks-to-buy-now"><u>Analysts' Top S&P 500 Stocks to Buy Now</u></a></li><li><a href="https://www.kiplinger.com/investing/stocks/why-microsoft-msft-stock-is-sinking-after-earnings"><u>Why Microsoft Stock Is Sinking After Earnings</u></a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/investing/stocks/apple-aapl-stock-climbs-to-the-top-of-the-dow-after-earnings</link> <description> <![CDATA[ Apple stock is higher Friday after the tech giant beat expectations for its fiscal 2025 first quarter. Here's what you need to know. ]]> </description> <guid isPermaLink="false">U5VbBD9p9LCvmBMkizPiwY</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/6M4pbPZQNDHzTJu9QNVaSF.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Fri, 31 Jan 2025 14:41:44 +0000</pubDate> <category><![CDATA[Stocks]]></category> <category><![CDATA[Investing]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/6M4pbPZQNDHzTJu9QNVaSF.jpg"> <media:credit><![CDATA[ Costfoto/NurPhoto via Getty Images]]></media:credit> <media:text><![CDATA[Apple logo seen on storefront]]></media:text> <media:title type="plain"><![CDATA[Apple logo seen on storefront]]></media:title> </media:content> </item> <item> <title><![CDATA[ Why a 5-Year CD is Your Best Bet After the Fed Meeting ]]></title> <dc:content><![CDATA[ <p>In its first meeting of the year, the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/news/live/federal-reserve-meeting">Federal Reserve voted to hold interest rates</a> in the 4.25% to 4.5% range. That’s disappointing news for those hoping to refinance a mortgage, but it’s great news for consumers looking to save. As we head into the new year, there are still plenty of CDs offering yields above 4%. That’s higher than CD rates have been in the last decade and higher than <a data-analytics-id="inline-link" href="https://www.kiplinger.com/economic-forecasts/inflation">inflation</a>, which currently sits at <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/cpi-report-keeps-the-fed-on-track-what-the-experts-are-saying-about-inflation"><u>3.2%</u></a> as of December.</p><p>Your best bet is to lock in those higher rates for as long as you can with a 5-year CD. Right now, the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/best-5-year-cd-rates"><u>best 5-year CD rates</u></a> are above 4%. While shorter-term CDs are a little higher, the benefit of securing higher yields for the next five years is worth taking the slightly lower rate.</p><p>Despite the pause this month, the Fed is still expected to resume rate cuts later this year, aiming to hit 2.5% or lower by the end of 2026. By the time your short-term CD matures in a few months or a year from now, you’re unlikely to find offers this good again. So, if you can afford to lock up your cash for a few years, a 5-year CD is one of the best places to <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/savings/where-to-store-your-cash-in-2025"><u>store your cash in 2025</u></a>.</p><h2 id="5-year-cds-we-recommend-after-the-fed-meeting-2">5-Year CDs we recommend after the Fed meeting</h2><p>With 5-year CD rates still well above 4%, this is a great time to lock in inflation-beating yields for the long term. Since rates are fixed for the entire term, these longer term CDs allow you to secure today’s above-average rates before the decreases expected later this year.</p><p>Here are some of the top 5-year CD accounts you can open today:</p> <h2 id="short-term-cds-are-still-a-good-choice-if-you-need-flexibility-2">Short-term CDs are still a good choice if you need flexibility</h2><p>Locking up your cash for five years isn’t a realistic option for everyone. If you know you’ll need to tap into those savings sooner, there are plenty of attractive shorter-term CDs to choose from.</p><p>The <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/banking/1-year-cd-rates"><u>best 1-year CD rates</u></a> are hovering near 4.5%. You can also find 3-month or 6-month CDs offering similar yields. So if you need a little more flexibility with your funds, it’s worth considering a shorter-term CD.</p><p>Check out our Bankrate tool below to compare the best CD rates by term and APY.</p> <h2 id="when-to-consider-a-high-yield-savings-account-2">When to consider a high-yield savings account</h2><p>With the pause on rate cuts, now is also a great time to open a high-yield savings account. You won’t be able to lock in rates for a fixed term like you can with a CD, but there’s also no penalty for dipping into those savings as needed.</p><p>With some of the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/best-high-yield-savings-accounts"><u>best high-yield savings accounts</u></a> offering close to 5% APY, this is the best place to stash your emergency fund, vacation savings, or other cash that you need regular access to.</p><p>Use our Bankrate tool to find the best fit for your savings.</p> <h2 id="the-bottom-line-12">The bottom line</h2><p>In terms of maximizing yields, a 5-year CD is your best bet after the Fed paused rate cuts in its January meeting. With offers above 4%, these long-term CDs still outpace inflation and allow you to secure higher rates ahead of the expected decline in CD rates later this year. But if you need more flexibility with your funds, a shorter-term CD or high-yield savings account are great alternatives.</p><h3 class="article-body__section" id="section-related-content"><span>RELATED CONTENT</span></h3><ul><li><a href="https://www.kiplinger.com/personal-finance/savings/are-you-really-prepared-for-a-financial-emergency">Are You Really Prepared for a Financial Emergency?</a></li><li><a href="https://www.kiplinger.com/personal-finance/banking/what-is-apy">What Is APY? Here's How to Score the Highest Rates</a></li><li><a href="https://www.kiplinger.com/personal-finance/cd-vs-high-yield-savings-account-which-is-better">CD vs. High-Yield Savings Account: Which is Better?</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/personal-finance/cd-rates/why-a-5-year-cd-is-your-best-bet-after-the-fed-meeting</link> <description> <![CDATA[ With no rate cut at the Fed meeting in January, you still have time to lock in historically high interest rates with a 5-year CD. ]]> </description> <guid isPermaLink="false">RZJeQ8T88MoBJh5TzpfvEe</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/8XdAp3LyCV3YSVo52aeEpU.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Fri, 31 Jan 2025 12:00:00 +0000</pubDate> <category><![CDATA[Personal-finance]]></category> <category><![CDATA[Savings]]></category> <category><![CDATA[Cd-rates]]></category> <category><![CDATA[Banking]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/8XdAp3LyCV3YSVo52aeEpU.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[Three plants growing in three jars of coins. ]]></media:text> <media:title type="plain"><![CDATA[Three plants growing in three jars of coins. ]]></media:title> </media:content> </item> <item> <title><![CDATA[ Where to Retire: Living in Panama Offers Stability and Charm ]]></title> <dc:content><![CDATA[ <p><em>We recommend that anyone considering living in Panama stay informed about </em><a data-analytics-id="inline-link" href="https://www.nbcphiladelphia.com/news/business/money-report/all-options-on-the-table-with-panama-canal-says-trumps-top-maritime-official/4091446" target="_blank" rel="nofollow"><em>tensions between the U.S. and Panama</em></a><em> over the Panama Canal. </em></p><p>Living in Panama may not be at the top of most retirees' favorite destinations. However, Americans searching for a retirement port of call should look closer at the Latin American “crossroads of culture” country that connects North America to South America.</p><p>Why Panama? Travel and retirement experts point to this country's unique geographical setting. At its narrowest point, the Isthmus of Panama separates the Pacific Ocean from the Caribbean Sea. Yet Panama connects more than it separates, and it's more than happy to welcome American retirees.</p><p>“Panama is a great living option because it has warm weather, friendly communities, and a lower cost of living than many U.S. cities,” says Melissa Harms, a travel expert and founder of the <a data-analytics-id="inline-link" href="https://everydayfamilytravel.blog/" target="_blank" rel="nofollow">Everyday Family Travel blog</a>. “The Pensionado program offers some great financial perks, but what really makes Panama special is the mix of modern conveniences and cultural experiences families can enjoy together. Spots like Boquete and Coronado have strong expat communities, good schools, and many outdoor activities, making it easier for retirees and their families to adjust and feel at home.”</p><h2 id="retired-americans-living-in-panama-2">Retired Americans living in Panama</h2><p>Americans who have moved to Panama say they’ve never looked back.</p><p>“I moved from Dallas, Texas, to Panama in 2010 and found a home here,” says Jackie Lange, owner of <a data-analytics-id="inline-link" href="https://panamarelocationtours.com/" target="_blank" rel="nofollow">Panama Relocation Tours</a>, a local travel and real estate company that started when Lange’s real estate friends visited. She had to hire a bus to drive them around.</p><p>After 15 years in the country, Lange views Panama as an ideal landing spot for US retirees.</p><p>“Panama is a favored destination for retirees for many reasons,” Lange says. “Panama uses the US dollar [in addition to the Panamanian balboa], so there’s no exchange rate. Plus, the cost of living in Panama is much less than the US, and there are no hurricanes.”</p><p>In Panama, Lange says retirees can pick their ideal temperature based on the elevation.</p><p>“At the coast, it's about 90 degrees, on average,” she notes. “Yet for every 1,000-foot increase in elevation, the temperature drops four degrees. I live in Boquete, in the highlands, where you don't need an air conditioner or a heater. The $20 electric bills are nice.”</p><p>As with any foreign country, look up its U.S. Government travel warnings before you go. In the case of Panama, the <a data-analytics-id="inline-link" href="https://travel.state.gov/content/travel/en/international-travel/International-Travel-Country-Information-Pages/Panama.html#/" target="_blank">State Department</a> recommends avoiding parts of the Mosquito Coast and the Darién region due to crime. According to the <a data-analytics-id="inline-link" href="https://www.economicsandpeace.org/wp-content/uploads/2024/06/GPI-2024-web.pdf" target="_blank">2024 Global Peace Index</a>, however, Panama is more peaceful than the U.S., so there's no need to be alarmed.</p><h2 id="an-inside-look-2">An inside look</h2><p>As a retiree or someone nearing their post-working years, is Panama a great landing spot? Here’s a closer look at the country and the potential upsides and downsides of making the country your retirement home.</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_KQr60TxC_a7GJFMMh_div' class='future__jwplayer'><div id='botr_KQr60TxC_a7GJFMMh_div'></div></div></div></div><h2 id="health-care-in-panama-2">Health care in Panama</h2><p>The most pressing healthcare issue for older US ex-pats when retiring in Panama is getting health insurance.</p><p>“For example, if you have pre-existing conditions, like high blood pressure, Panama insurance will exclude the existing condition for at least two years and then only cover it at 50% thereafter,” Lange says. “And if you are over 74, most health insurance companies will not write a new policy. And if you’re diabetic, you cannot get Panama health insurance.”</p><p>Fortunately, retirees can easily use the nation’s public health system.</p><p>“There’s no monthly fee, age restrictions, or pre-existing condition restrictions,” Lange notes. “It's $2 to see a doctor or $5 for a specialist.”</p><p><a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/medicare/603537/is-a-medicare-advantage-plan-right-for-you">Medicare Advantage</a> also covers urgent care and emergencies at private hospitals. “Some hospitals offer direct billing with the Medicare Advantage insurance company,” Lange adds. “But some hospitals require you to pre-pay and then file your own claim.”</p><p>Panama’s medical centers offer good, quality service. “Plus, they cost much less than U.S. private hospitals,” says Paul Fournier, a travel writer and Founder of <a data-analytics-id="inline-link" href="https://journeycompass.com/" target="_blank" rel="nofollow">Journey Compass</a>, an in-depth, online travel guides platform. “In Panama City, for instance, you’ll find some of the best, and many doctors speak English, so communication isn’t a problem.”</p><p>Medicare Advantage is likely the best bet for a U.S. retiree seeking health care in Panama, but it’s likely not enough.</p><p>“Advantage may offer great emergency coverage for stays outside the U.S. for either six months or up to one year,” says Wes Chapman, Founder of <a data-analytics-id="inline-link" href="https://www.fortendehealth.com/" target="_blank" rel="nofollow">Fortende Health</a>, a Medicare plans advisory firm that specializes in helping retirees who spend time outside the U.S. navigate healthcare benefits. “Many Medicare Advantage plans offer excellent coverage for emergency care and 'in-network' rates for participating beneficiaries, but once you’re stabilized in the hospital, if you are moved to inpatient or require advanced care, you risk significant financial exposure.”</p><p>That means getting additional healthcare coverage. “Consider <a data-analytics-id="inline-link" href="https://www.geobluetravelinsurance.com/" target="_blank" rel="nofollow">GeoBlue</a> for post-ER and continued inpatient and advanced care if you don’t intend to pay out of pocket,” Chapman says.</p><figure class="van-image-figure inline-layout" data-bordeaux-image-check ><div class='image-full-width-wrapper'><div class='image-widthsetter' style="max-width:2124px;"><p class="vanilla-image-block" style="padding-top:66.43%;"><img id="bPT9HeV8h8fhuWKZ2jnVqd" name="Panama culture traditional dress Kuna Yala-1127417469" alt="A traditional Kana Yala woman's traditional dress, Panama." src="https://cdn.mos.cms.futurecdn.net/bPT9HeV8h8fhuWKZ2jnVqd.jpg" mos="" align="middle" fullscreen="" width="2124" height="1411" attribution="" endorsement="" class=""></p></div></div><figcaption itemprop="caption description" class=" inline-layout"><span class="credit" itemprop="copyrightHolder">(Image credit: Getty Images)</span></figcaption></figure><h2 id="how-to-get-a-retirement-visa-in-panama-2">How to get a retirement visa in Panama</h2><p>Retiring in Panama isn’t just about saving money — it’s about enjoying a better lifestyle.</p><p>“The low cost of living, warm weather, and amazing views make it a top choice for U.S. retirees,” Fournier notes. “<a data-analytics-id="inline-link" href="https://www.embassyofpanama.org/retire-in-panama" target="_blank">Panama’s Pensionado Visa program</a> makes moving there simple and even gives retirees discounts on daily expenses, which makes life more affordable.”</p><p>The program is beneficial for saving on healthcare, transportation, and entertainment.</p><p>“After five years, it also gives retirees permanent residency, which makes settling down much easier,” Fournier adds.</p><p>U.S. Retirees can get a Pensionado Visa if they make at least $1,000 monthly in lifetime income (Social Security). “You can add $250 for your spouse,” Lange says. “when you apply, you’ll initially receive a temporary visa. But within six months, you'll get your permanent visa, which allows you to live in Panama indefinitely.”</p><p>Once you get your permanent visa, you qualify for specific Pensionado discounts, like 50% off on recreation and entertainment like movies, theaters, and sports, 50% off hotels Monday through Thursday (30% off on weekends), and 30% off public transportation like buses, trains, and boats. “You can also get 25% off on airfare to anywhere in the world,” Lange notes. “You’ll also get 20% off restaurants, 25% off electrical, telephone, and water service, and 20% off doctors and specialists, among other perks.”</p><p>If moving costs are a concern, the Pensionado visa offers any incoming citizen tax-free importation of household goods up to $10,000, tax-free importation of a vehicle, or tax-free purchase of a local vehicle. “You’ll still have to pay fees to import a car,” Lange notes. Those fees can cost $2,000 and upward.</p><h2 id="panama-has-a-low-cost-of-living-2">Panama has a low cost of living</h2><p>Price-wise, Panama is an affordable destination for both <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/become-a-digital-nomad-an-early-retirement-lifestyle">remote workers</a> and retirees.</p><p>Depending on location, rental prices for a two-bedroom home usually range between $750 and $1,500 per month, while purchasing one ranges between $150,000 and $300,000.</p><p>“Eating out is affordable too,” says <a data-analytics-id="inline-link" href="https://discoverwestcentralflorida.com/author/zi95xueivsul8vekox0p69yioxsnowp19710/" target="_blank" rel="nofollow">Wayne Kask</a>, a Tampa, Fla.-based travel writer and the founder and CEO of Discover West Central Florida. “You can get a nice meal for about $15 to $25. Monthly groceries usually cost around $300, and utilities usually max out at $200 per month, or much less.”</p><p><a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/three-tax-reasons-to-retire-in-panama">U.S. retirees can catch further tax breaks</a> when relocating. “Panama doesn’t tax foreign-earned income, so your U.S.-based earnings stay untouched,” Harms says.</p><p>While Panama’s cost of living is low, retirees should plan ahead financially before moving.</p><p>“Devise a budget accounting for potential currency fluctuations and consider opening a local Panamanian bank account,” says <a data-analytics-id="inline-link" href="https://www.internationalinsurance.com/author/insuranceguru/" target="_blank" rel="nofollow">Joe Cronin</a>, President of International Citizens Insurance in Boston, Mass. (Cronin has spent 20-plus years helping expatriates and travelers make sound financial decisions while moving and traveling abroad.) “Retirement savings can be further utilized by obtaining additional services through the Pensionado Program.”</p><figure class="van-image-figure inline-layout" data-bordeaux-image-check ><div class='image-full-width-wrapper'><div class='image-widthsetter' style="max-width:2916px;"><p class="vanilla-image-block" style="padding-top:65.16%;"><img id="yFJmhwL9QEuybHWijYhzZC" name="Map of Panama with Provinces-1326572310" alt="A map of Panama showing the nine provinces." src="https://cdn.mos.cms.futurecdn.net/yFJmhwL9QEuybHWijYhzZC.jpg" mos="" align="middle" fullscreen="" width="2916" height="1900" attribution="" endorsement="" class=""></p></div></div><figcaption itemprop="caption description" class=" inline-layout"><span class="credit" itemprop="copyrightHolder">(Image credit: Getty Images)</span></figcaption></figure><h2 id="best-places-for-retirees-in-panama-2">Best places for retirees in Panama</h2><p>Your Panama landing spot depends on whether you favor those urban amenities in Panama City, prefer beach living, or want a slower pace and cooler weather inland.</p><p>If it’s the latter, Harms advises checking out three locations: <strong>Pedasí</strong>, in the Los Santos province; <strong>Santa Fe</strong>, in the Varaguas Province; and <strong>El Valle de Antón</strong>, in Coclé province.</p><p>“Affordable housing and a relaxed atmosphere characterize Santa Fe, a sleepy mountain hamlet,” she says. “Beautiful scenery, a wealth of outdoor activities, and a friendly community make El Valle a great place to call home. Families seeking a gentler pace by the sea will love Pedasí, a quaint seaside town with a laid-back vibe.”</p><p>Big city living is available, too.</p><p>“<strong>Panama City</strong> is a thriving, modern metropolis with an impressive skyline, fine dining, and cultural attractions, while the historic <strong>Casco Viejo</strong> district offers charm with its cobblestone streets and colonial architecture,” says Victoria Levitam, managing partner at the real estate company <a data-analytics-id="inline-link" href="https://theagencyrepanama.com/" target="_blank" rel="nofollow">The Agency Panama</a>. “For those seeking more exclusivity, areas like Punta Pacifica and Santa Maria provide high-net-worth individuals with luxury residences, top-tier amenities, and excellent healthcare.”</p><p>Island living is also available in Panama, with cool breezes and stunning views.</p><p>Sited on a man-made island in the Pacific, “<a data-analytics-id="inline-link" href="https://general.oceanreefislands.com/" target="_blank" rel="nofollow">Ocean Reef Islands</a> offers a unique island lifestyle with a private marina featuring over 150 moorings up to 60 meters, just minutes from Panama City," according to Levitan. "Pearl Island provides a pristine barefoot luxury escape with more than seven beaches and 60 islands to explore,” Levitam adds. “Both developments offer retirees an exceptional maritime lifestyle, with direct access to world-class fishing.”</p><p>Non-stop direct flights to and from the US at Panama City’s <a data-analytics-id="inline-link" href="https://centralamericaairports.com/tocumen-international-airport-panama-pty/" target="_blank" rel="nofollow">Tocumen International Airport</a> on major airlines like Delta, United, and Panama’s <a data-analytics-id="inline-link" href="https://www.copaair.com/en-us/" target="_blank" rel="nofollow">Copa Airlines</a> make it easy to connect with major cities like Atlanta, New York City, Chicago, and many more,</p><p>“I just took a non-stop 4-hour flight from Panama City to Austin, Texas,” Harms says.</p><h3 class="article-body__section" id="section-read-more"><span>Read More</span></h3><ul><li><a href="https://www.kiplinger.com/taxes/three-tax-reasons-to-retire-in-panama">Three Tax Reasons to Retire in Panama</a></li><li><a href="https://www.kiplinger.com/retirement/happy-retirement/where-to-retire-living-in-portugal">Where to Retire: Living in Portugal</a></li><li><a href="https://www.kiplinger.com/retirement/happy-retirement/where-to-retire-puerto-rico">Where to Retire 2025: Puerto Rico</a></li><li><a href="https://www.kiplinger.com/retirement/retirement-planning/how-to-manage-retirement-savings-when-living-abroad">How to Manage Retirement Savings When Living Abroad</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/retirement/happy-retirement/where-to-retire-living-in-panama-offers-stability-and-charm</link> <description> <![CDATA[ Retirees living in Panama enjoy urban amenities and a chill lifestyle for ex-pats. ]]> </description> <guid isPermaLink="false">B7EgVUonsfyiWnUY8TW2i8</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/rpCRpJ2CVZcZdx3zxpXVNH.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Fri, 31 Jan 2025 11:25:00 +0000</pubDate> <category><![CDATA[Happy-retirement]]></category> <category><![CDATA[Retirement-planning]]></category> <category><![CDATA[Retirement]]></category> <author><![CDATA[ brianoco101@gmail.com (Brian O'Connell) ]]></author> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/rpCRpJ2CVZcZdx3zxpXVNH.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[Colonial buildings line the shore of Casco Viejo, Panama.]]></media:text> <media:title type="plain"><![CDATA[Colonial buildings line the shore of Casco Viejo, Panama.]]></media:title> </media:content> </item> <item> <title><![CDATA[ What Is the February Social Security Payment Schedule? ]]></title> <dc:content><![CDATA[ <p>February <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/social-security/what-is-the-average-social-security-check-by-age">Social Security checks</a> will begin arriving on the third of the month and will continue through the 28th. When your first payment arrives depends on your birthday.</p><p>Beneficiaries who filed claims after May 1, 1997, and receive retirement, disability or survivor benefits are paid on either the second, third, or fourth Wednesday of the month. If you received benefits before May 1997, you also have a specific payment date.</p><p><a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/social-security/social-security-expands-access-to-ssi-benefits" target="_blank">Supplemental Security Income</a> (SSI) payments are distributed monthly, usually on the first day of the month. However, that won’t happen in February.</p><p>February 1 falls on a Saturday this year. That means your SSI payment will be sent out on Friday, January 31. In November 2024, SSI beneficiaries experienced a similar situation when they received December’s payment a few days early.</p><p>The Social Security Administration prepares its payment schedules well in advance of checks being sent out. This ensures you receive your payments on time. For February, the recent cost of living adjustment (COLA), implemented in January, is factored in.</p><p>You should see a small uptick in your monthly <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/social-security/601708/social-security-basics-12-things-you-must-know-about-claiming-and">Social Security</a> checks in 2025. Starting in January, the 2.5%<a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/social-security/social-security-cola-when-you-start-getting-increase" target="_blank"> <u>cost-of-living (COLA) increase</u></a> will add a little less than $50 to the average monthly benefit of about $1,900,<a data-analytics-id="inline-link" href="https://www.ssa.gov/news/press/releases/2024/#2024-10-10" target="_blank" rel="nofollow"> <u>according to the SSA</u></a>. That’s down from a 3.2% COLA in 2024, but in line with the average 2.6% increase over the past two decades.</p><p><strong>So, when will you see your February 2025 payment?</strong></p><h2 id="the-february-social-security-payment-calendar-2">The February Social Security payment calendar</h2><p>If you collect Social Security Disability Insurance (SSDI) or retirement benefits, your benefit payment date is determined by your birthday. If you get auxiliary benefits on someone else’s earnings record, spousal or survivor benefits, for example, your payment date is determined by that person’s birthday, <strong>not yours</strong>.</p><h2 id="february-social-security-payment-dates-2">February Social Security payment dates</h2><p>These are the dates you can expect your monthly payments in<a data-analytics-id="inline-link" href="https://www.ssa.gov/pubs/EN-05-10031-2025.pdf" target="_blank" rel="nofollow"> <u>February 2025</u></a>:</p><ul><li><strong>Jan. 31: </strong>If you receive Supplemental Security Income (SSI), you should receive your February Social Security payment for February on January 31, 2025.</li><li><strong>Feb 3: </strong>You will receive your Social Security payment on this date if you also receive<a href="https://www.kiplinger.com/retirement/social-security/social-security-expands-access-to-ssi-benefits" target="_blank"> <u>Supplemental Security Income</u></a> (SSI), are enrolled in a Medicare Savings Program, live overseas, or have been receiving Social Security since before May 1, 1997.</li><li><strong>Feb. 12: </strong>You will receive your Social Security payment on the 12th, the second Wednesday in February, if your birthday is between the 1st and 10th of your birth month.</li><li><strong>Feb. 19: </strong>You should receive your Social Security payment on the third Wednesday in February if your birthday is between the 11th and the 20th of your birth month.</li><li><strong>Feb. 26: </strong>If your birthday falls after the 20th of your birth month, you should get your Social Security payment on the fourth Wednesday in February.</li></ul><p>For a more detailed 2025 schedule, see our story,<a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/social-security/social-security-payment-schedule-2025" target="_blank"> <u><strong>Social Security Payment Schedule for 2025</strong></u></a></p><h2 id="how-to-report-a-missing-social-security-payment-2">How to report a missing Social Security payment</h2><p>If you don’t receive your electronic payments on the scheduled date, contact your bank or financial institution. Sometimes, the Social Security Administration experiences a delay in posting your payment.</p><p>If you still need help, call the Social Security Administration at 1-800-772-1213 (TTY 1-800-325-0778) or contact your local Social Security office.</p><p><em>Want more guidance on retirement savings? Sign up for Kiplinger's six-week series, </em><a data-analytics-id="inline-link" href="https://www.kiplinger.com/business/get-the-invest-for-retirement-series"><u><em>Invest for Retirement</em></u></a><em>.</em></p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/retirement/social-security/what-is-the-average-social-security-check-by-age">The Average Social Security Check by Age</a></li><li><a href="https://www.kiplinger.com/retirement/social-security/601708/social-security-basics-12-things-you-must-know-about-claiming-and">Social Security Basics: 12 Things You Must Know About Claiming and Maximizing Your Social Security Benefits</a></li><li><a href="https://www.kiplinger.com/article/retirement/t051-c001-s003-boost-social-security-benefit-when-you-delay.html">Boost Your Social Security Benefit Every Month You Delay</a></li><li><a href="https://www.kiplinger.com/when-to-apply-for-social-security">When To Take Social Security Payments: Your Age is Key</a></li><li><a href="https://www.kiplinger.com/retirement/retirement-planning/600895/retirement-savings-calculator">Retirement Calculator: How Much Do I Need to Retire?</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/retirement/social-security/what-is-the-social-security-payment-schedule</link> <description> <![CDATA[ The date your February Social Security benefit arrives depends on what day of the month you were born. Payments follow the month they are due, so your February check is for January. ]]> </description> <guid isPermaLink="false">LLHNdf9V5ry7AQBjNUqUgF</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/CYTNetA3L46wUzAm4MnKZX.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Fri, 31 Jan 2025 11:00:10 +0000</pubDate> <category><![CDATA[Social-security]]></category> <category><![CDATA[Retirement]]></category> <author><![CDATA[ upnorthwriter@icloud.com (Kathryn Pomroy) ]]></author> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/CYTNetA3L46wUzAm4MnKZX.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[Loose change and coins inside a glass jar to represent lack of retirement savings in Social Security Trust fund]]></media:text> <media:title type="plain"><![CDATA[Loose change and coins inside a glass jar to represent lack of retirement savings in Social Security Trust fund]]></media:title> </media:content> </item> <item> <title><![CDATA[ How to Cushion Your Tax Refund From Inflation ]]></title> <dc:content><![CDATA[ <p><a data-analytics-id="inline-link" href="https://www.kiplinger.com/news/live/tax-season-2025-tips-information-updates">Tax season</a> is here. That means gathering documents, choosing how to file and, if you're fortunate enough to earn a tax refund, planning where to store or use it. Before planning that dream vacation or making a huge purchase, you'll want to keep inflation in mind as it pertains to using your tax refund.</p><p>One of the first considerations for your refund is to strategize ways to make it work for you while outpacing inflation.</p><p>The <a data-analytics-id="inline-link" href="https://www.kiplinger.com/economic-forecasts/inflation#:~:text=Inflation%20excluding%20food%20and%20energy,4.4%25%20pickup%20in%20gasoline%20prices.">core inflation rate is currently 3.2%</a>. Rising prices on food, shelter and energy continue to be the main culprits for price increases. Moreover, if President Donald Trump goes through with imposing tariffs, inflation could rise. The president proposed a 25% tariff on goods from Canada and Mexico, and a 10% tariff on goods from China.</p><p>This means it's ideal to be proactive in planning for price increases, even if they don't happen. Here are some options to consider.</p><h2 id="high-yield-savings-accounts-a-flexible-way-to-grow-your-refund-2">High-yield savings accounts: A flexible way to grow your refund</h2><p>A <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/best-high-yield-savings-accounts">high-yield savings account</a> allows you to earn a great rate of return. Before the Federal Reserve cut interest rates three times, my savings account had a 5.00% APY. Compared to your standard brick and mortar options, the amount I earned in interest in one month with my online bank would have taken years with a traditional option.</p><p>Using our tool from Bankrate, you can explore some of the top savings options:</p> <p>If you plan to use your tax refund for a high-yield savings account, keep in mind that the interest rates are variable. That means if the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/news/live/federal-reserve-meeting">Federal Reserve</a> cuts interest rates again, your rates might dip. That aside, it's a great vehicle to park your money and earn a higher rate than inflation.</p><p>One of the biggest advantages of a high-yield savings account is its flexibility — you can deposit and withdraw funds as needed without locking your money away for a set term, unlike a CD. This makes it an excellent option for building an <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/savings/are-you-really-prepared-for-a-financial-emergency">emergency fund</a> while earning competitive interest.</p><h2 id="lock-in-your-tax-refund-with-a-fixed-rate-certificate-of-deposit-2">Lock in your tax refund with a fixed-rate certificate of deposit</h2><p>A <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/best-cd-rates">certificate of deposit</a> (or CD) is a great savings vehicle for short-term goals. It's essentially an account where you park money and forget about it, with terms ranging from three months to 10 years.</p><p>A great aspect of CDs is that you receive a fixed interest rate, meaning if the Federal Reserve cuts rates again in the future, it won't impact your earnings. This stability makes CDs a reliable option for those seeking predictable returns.</p><p>Check out some of the best options:</p> <p>The only drawback to CDs is you can't withdrawal funds from them or add money to them once you sign up for the account. If you need to withdrawal money before the term expires, the penalty fee might offset any interest earned. Therefore, CDs are smart options if you're sure you won't need to touch the money for the term's duration.</p><h2 id="invest-your-tax-refund-for-the-future-build-wealth-and-boost-your-retirement-2">Invest your tax refund for the future: Build wealth and boost your retirement</h2><p>If you're receiving a sizable tax refund, you might consider padding your retirement with it. While this option carries more risk than a high-yield savings account or a CD, you also could earn a higher rate of return as well.</p><p>One of our favorite <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/wealth-management/online-brokers/605136/the-best-online-brokers-and-trading-platforms">online brokers</a> is <a data-analytics-id="inline-link" href="https://www.fidelity.com/" target="_blank">Fidelity</a>. With the Fidelity Go feature, investors with less than $25,000 in their account receive free investment advice. And if your portfolio exceeds this amount, you'll have access to human advisors for a fee of 0.35% of your assets.</p><h2 id="pay-down-high-interest-debt-2">Pay down high-interest debt</h2><p>Sometimes surprise expenses happen, and it's becoming more frequent that <a data-analytics-id="inline-link" href="https://www.bankrate.com/banking/savings/emergency-savings-report/" target="_blank">people use credit cards to fund these surprises</a>. If you find yourself carrying a balance on your card with a higher interest rate, paying it down first is integral.</p><p>However, this becomes a delicate balancing act if you don't have savings built up. This is where you'll want to institute the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/the-new-603010-budgeting-method">60-30-10 budgeting method </a>moving forward. How it works is you devote 10% of your income to savings. Over time, it will help you prepare for unexpected expenses that might arise. And if you need help tracking your money, our <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/how-to-save-money/best-budgeting-apps">best budgeting apps</a> can help.</p><h2 id="the-bottom-line-17">The bottom line</h2><p>It's officially the start of the tax season. Here are some of the top software options if you plan to self file:</p> <p>Meanwhile, if you're receiving a tax refund this year, you'll want to put it someplace where it outpaces inflation. Two surefire ways (at least for now) are to save with a high-yield savings account or a CD. Both options could help you earn close to a 4% rate of return.</p><p>You could also pad your retirement with an online broker. And if you're carrying some high-interest debt, you'll want to chip away at that while also building a savings through budgeting. That way, you get debt off the books and still have money going into an account that outpaces inflation.</p><h3 class="article-body__section" id="section-related-content"><span>Related content </span></h3><ul><li><a href="https://www.kiplinger.com/taxes/new-tax-season-changes-to-know">Tax Season Is Here: Key IRS Changes to Know</a></li><li><a href="https://www.kiplinger.com/personal-finance/savings/where-to-store-your-cash-in-2025">Where to Store Your Cash in 2025</a></li><li><a href="https://www.kiplinger.com/economic-forecasts/inflation">Kiplinger Inflation Outlook: Better News May Not Last</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/personal-finance/savings-accounts/how-to-cushion-your-tax-refund-from-inflation</link> <description> <![CDATA[ If you're planning on receiving a tax refund, there are a variety of strategies you can employ to protect it from rising costs. ]]> </description> <guid isPermaLink="false">uYGxnrE25iM2KjqZ3eV9RA</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/PoGZdKDozCxmLBAqoQ8i2f.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Fri, 31 Jan 2025 11:00:00 +0000</pubDate> <category><![CDATA[Savings-accounts]]></category> <category><![CDATA[Personal-finance]]></category> <category><![CDATA[Banking]]></category> <category><![CDATA[Savings]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/PoGZdKDozCxmLBAqoQ8i2f.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[Home, talking and senior couple with paperwork, financial planning and tablet with taxes, pension fund and life policy. Documents, old man or elderly woman with insurance, conversation and investment]]></media:text> <media:title type="plain"><![CDATA[Home, talking and senior couple with paperwork, financial planning and tablet with taxes, pension fund and life policy. Documents, old man or elderly woman with insurance, conversation and investment]]></media:title> </media:content> </item> <item> <title><![CDATA[ The Outlook for Home and Auto Insurance in 2025 ]]></title> <dc:content><![CDATA[ <p>Todd Jackson is chairman of the <a data-analytics-id="inline-link" href="https://www.independentagent.com/default.aspx" target="_blank">Independent Insurance Agents and Brokers of America</a>. He recently spoke to Kiplinger about the outlook for home and car insurance prices in light of <a data-analytics-id="inline-link" href="https://www.kiplinger.com/economic-forecasts/inflation">inflation</a> and recent natural disasters — and how to cut the cost of your premiums.</p><h2 id="consumers-have-seen-premiums-for-homeowners-and-auto-insurance-rise-sharply-in-recent-years-what-s-behind-the-increases-2">Consumers have seen premiums for homeowners and auto insurance rise sharply in recent years. What’s behind the increases? </h2><p>There are several factors. Prior to 2022, the insurance market went through a phase of lower-than-normal hurricane activity. But hurricane activity really spiked in 2022 and 2023, which coincided with inflationary increases in a lot of different sectors that affected the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/article/insurance/t028-c001-s001-the-basics-of-buying-homeowners-insurance.html">homeowners insurance</a> industry.</p><p>If you look at the consumer price index (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/cpi-report-keeps-the-fed-on-track-what-the-experts-are-saying-about-inflation">CPI</a>) of all consumer goods, prices increased by about 20% overall between 2020 and 2024. But the construction industry was hit much harder — 35% to 40% for trade services, lumber, concrete, asphalt and other things that are required to replace and repair homes. In other words, the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/economy/rising-prices-which-goods-and-services-are-driving-inflation">inflationary impact of goods and services</a> affecting the insurance industry has increased at roughly twice the pace relative to other industries. As a result, we have found that these costs have been passed along to customers.</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_sTWQUVku_a7GJFMMh_div' class='future__jwplayer'><div id='botr_sTWQUVku_a7GJFMMh_div'></div></div></div></div><p>The auto industry also had supply-chain issues early in the COVID pandemic that spilled into 2021 and 2022. The cost of parts and supplies rose dramatically during that period, and the cost of repairing vehicles rose along with it. The time required for vehicle repairs has grown as well, which increases the need and expense for rental cars, also driving up the overall cost of repair. Those increased costs are still present today and are being passed on to insurance customers.</p><p>Use our tool below, in partnership with Bankrate, to shop and compare mortgage interest rates today.</p> <h2 id="what-s-the-outlook-for-insurance-prices-in-2025-2">What’s the outlook for insurance prices in 2025?</h2><p>While overall pricing may not be going down, the rate of increase appears to be leveling off — particularly for <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/insurance/car-insurance">auto insurance</a>, because the supply chain is improving. Insurance carriers were beginning to see an improving financial picture of their insured properties during the first three quarters of 2024, but the impact of hurricanes Helene and Milton coming back-to-back in the fall of 2024 was pretty dramatic and may have some effect on prices for <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/insurance/home-insurance">homeowners insurance</a> in the coming year.</p><h2 id="will-insurers-continue-to-leave-states-that-have-been-hit-by-natural-disasters-narrowing-access-to-homeowners-insurance-for-residents-2">Will insurers continue to leave states that have been hit by natural disasters, narrowing access to homeowners insurance for residents? </h2><p>All indicators in the property market seem to suggest that it will continue to be difficult. People in Florida are used to insurance companies leaving, but now you’re seeing it happen in the Midwest and Plains states, too. Working with an independent agent who can offer options from multiple insurance companies will give homeowners a much better opportunity to find coverage when a carrier has left their area.</p><h2 id="what-steps-can-car-owners-and-homeowners-take-to-lower-their-insurance-premiums-2">What steps can car owners and homeowners take to lower their insurance premiums? </h2><p>With regard to <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/insurance/car-insurance">auto insurance</a>, practicing safe driving habits and doing all you can to prevent losses will impact your premium the most. Having a good <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/what-is-a-good-credit-score">credit score</a> can also help, because in recent decades, credit impacts how carriers price insurance.</p><p>For homeowners, proper maintenance of your home — roof, plumbing, electrical, HVAC — is paramount. You also want to <a data-analytics-id="inline-link" href="https://www.kiplinger.com/article/insurance/t028-c001-s001-an-easy-way-to-save-on-homeowners-insurance.html">review your deductibles</a> and determine how much you can afford to pay before insurance kicks in. If you increase the deductible on your home and auto insurance, the insurer will reward you with lower premiums for taking on a higher portion of the risk.</p><p>Bundling your auto and home insurance with the same company can also save you money. As an independent insurance agent, I might work with 15 different carriers, and if I look at them in individual silos, insurance company A may offer the cheapest homeowners insurance and insurance company B may provide the cheapest auto insurance. But insurance company C might offer the lowest overall premium if you buy both policies through it.</p><p>Use our tool below, powered by Bankrate, to compare car insurance rates today.</p> <p><em>Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make </em><a data-analytics-id="inline-link" href="https://subscribe.kiplinger.com/pubs/KE/KPP/KPP_2995v4995.jsp?cds_page_id=268237&cds_mag_code=KPP&id=1713297678770&lsid=41071501187034946&vid=1&cds_response_key=I3ZPZ00Z"><u><em>here</em></u></a><em>.</em></p><h3 class="article-body__section" id="section-related-content"><span>Related content</span></h3><ul><li><a href="https://www.kiplinger.com/real-estate/home-improvement/602297/protect-your-home-from-natures-wrath">How to Protect Your Home from Natural Disasters with the Right Insurance</a></li><li><a href="https://www.kiplinger.com/article/insurance/t028-c000-s002-how-to-get-your-insurer-to-pay-your-claims.html">How to Get Your Insurer to Pay Your Home and Auto Claims</a></li><li><a href="https://www.kiplinger.com/personal-finance/insurance/how-to-find-insurance-coverage-in-disaster-prone-areas">How to Find Insurance Coverage in Disaster-Prone Areas</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/personal-finance/insurance/outlook-for-home-and-auto-insurance</link> <description> <![CDATA[ Home and auto insurance premiums may not increase as much as in recent years, but the industry remains under pressure. ]]> </description> <guid isPermaLink="false">MLKgyLciUmVpMHYTrVtH9V</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/SkP5sZgauGRHhtqsQqsa8R.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Fri, 31 Jan 2025 11:00:00 +0000</pubDate> <category><![CDATA[Insurance]]></category> <category><![CDATA[Home-insurance]]></category> <category><![CDATA[Car-insurance]]></category> <category><![CDATA[Personal-finance]]></category> <author><![CDATA[ kiplinger@futurenet.com (Sandra Block) ]]></author> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/SkP5sZgauGRHhtqsQqsa8R.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[Businessman holding shield protect icon with his child, Security protection and health insurance]]></media:text> <media:title type="plain"><![CDATA[Businessman holding shield protect icon with his child, Security protection and health insurance]]></media:title> </media:content> </item> <item> <title><![CDATA[ If Not Long-Term Care Insurance, Then What? ]]></title> <dc:content><![CDATA[ <p>Will you need <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/long-term-care/how-to-pay-for-long-term-care">long-term care</a> someday?</p><p>The odds say yes — about 70% of people over the age of 65 will need to access some form of long-term care in the future, according to <a data-analytics-id="inline-link" href="https://acl.gov/ltc/basic-needs/how-much-care-will-you-need" target="_blank">statistics from the Administration for Community Living</a> (ACL).</p><p>For many people, the big question becomes how to pay for long-term care when the need arises. <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/long-term-care-insurance/things-you-should-know-about-long-term-care-insurance">Long-term care insurance</a> can be expensive and hard to get. But not having insurance can result in depleted savings and the risk of running out of money during your lifetime (plus not having any to leave to your loved ones when you’re gone).</p><p>With the annual cost of long-term care ranging from $50,000 to $100,000-plus, paying for it can be a real concern. The cost will likely continue to rise as Baby Boomers age, and demand for services increases. Also, as health care advances and people live longer, the need for long-term care will grow.</p><p>So, am I in favor of purchasing long-term care insurance? The short answer is no if you don’t already have it. If you’ve had a policy for five or more years, then you may have a good policy that you got for a great price. However, the cost of long-term care policies has increased significantly, and we haven’t recommended one of our clients buy a policy in over five years. This <em>doesn’t </em>mean you shouldn’t do your own due diligence on long-term care insurance; we simply find there may be other, more attractive ways to cover the cost.</p><p>Keep in mind that we work with clients whom we call Midwestern Millionaires (I wrote a book on this that comes out soon). These types of people have been diligent savers and may be able to plan for ways outside of long-term care insurance. It is important to understand your situation and know that general financial advice is not one-size-fits-all.</p><p>Also, long-term care insurance could become more popular over time as rates or products change. You always want to be open-minded when it comes to <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/retirement-plans/checklist-for-retirement-planning">retirement planning</a>, and it is important to work with a team that will always be proactive in seeking the best solutions for you over time.</p><p>Here's a look at some of the other options to consider:</p><h2 id="option-1-self-insure-2">Option 1: Self-insure</h2><p>Individuals who have enough money saved or a significant <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/pension-tax-planning-should-start-now">pension</a> may be able to self-insure. However, this could result in leaving less to your loved ones after you die.</p><p>Going the self-insured route means you must have your investments structured well. There are two things to think about when planning for this: taxes and market protection. Let’s start with taxes. If you need $100,000 annually to pay for long-term care, there will be a big tax impact if you take from your <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/tax-planning-strategies-if-you-have-a-million-dollars">tax-deferred investments</a>. This is where proactive <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/tax-planning">tax planning</a> becomes important; if you have a mix of tax-deferred and tax-free investments, you can potentially <a data-analytics-id="inline-link" href="https://www.kiplinger.com/taxes/ways-to-cut-your-tax-bill-now">lower your tax bill</a> and still be able to cover the cost of long-term care.</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_sTWQUVku_a7GJFMMh_div' class='future__jwplayer'><div id='botr_sTWQUVku_a7GJFMMh_div'></div></div></div></div><p>From a market protection standpoint, if the market is down and you need $100,000, you would experience one loss from the market being down and another loss from taking out money. You could protect from this “double loss” by looking for investment options that offer more protection and less risk to ensure the money is available if — and when — you need it.</p><h2 id="option-2-medicaid-asset-protection-trust-2">Option 2: Medicaid asset protection trust</h2><p>Another strategy that has become attractive to some people in or near retirement is what’s called a <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/long-term-care-costs-medicaid-asset-protection-trust">Medicaid asset protection trust</a>. This strategy isn’t for everyone, but it’s definitely worth a look for those who think they might need long-term care assistance in retirement.</p><p>With this strategy, you <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/estate-planning/604051/what-assets-should-be-included-in-your-trust">put your assets into a trust</a> that is registered out of your estate. You can still access the assets within the trust if it’s set up the right way, but you may be eligible for Medicaid assistance earlier because you won’t be required to spend down all your assets to qualify. <a data-analytics-id="inline-link" href="https://www.medicaid.gov/" target="_blank">Medicaid</a> will allow you to still get the long-term care you need without the entire cost coming out of your pocket.</p><p>This strategy is complicated, and it must be completed in time to get the “free look,” which is different from state to state. This is why it’s important to work with an elder law attorney specializing in this area. At <a data-analytics-id="inline-link" href="https://peakretirementplanning.com/" target="_blank">Peak Retirement Planning</a>, we work with an experienced estate planning attorney who meets with our clients and advisers to make sure things are set up correctly and that nothing gets missed.</p><h2 id="a-plan-for-long-term-care-2">A plan for long-term care</h2><p>The key to making sure you receive the care you need in retirement is to have a plan in place. If you purchased a policy in the past, we recommend reviewing it regularly as a reminder of what it covers and when it kicks in. You may also want to run the numbers to make sure it’s still the most cost-effective option for your situation. If you don’t own a policy, I recommend working with an adviser who can help you explore all the options and find the one that works best for you.</p><p><em>The appearances in Kiplinger were obtained through a PR program. The columnist received assistance from a public relations firm in preparing this piece for submission to Kiplinger.com. Kiplinger was not compensated in any way.</em></p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/retirement/the-pillars-of-retirement-planning">Do You Have the Five Pillars of Retirement Planning in Place?</a></li><li><a href="https://www.kiplinger.com/retirement/can-you-retire-at-60-with-1-million-dollars-saved">You're 62 Years Old With $1 Million Saved: Can You Retire?</a></li><li><a href="https://www.kiplinger.com/retirement/tax-planning-strategies-if-you-have-a-million-dollars">Do You Have at Least $1 Million in Tax-Deferred Investments?</a></li><li><a href="https://www.kiplinger.com/retirement/risk-in-retirement-are-you-taking-too-much">Are You Taking Too Much Risk in Retirement?</a></li><li><a href="https://www.kiplinger.com/retirement/will-you-pay-higher-taxes-in-retirement">Will You Pay Higher Taxes in Retirement?</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/retirement/if-not-long-term-care-insurance-then-what</link> <description> <![CDATA[ If you don't buy long-term care insurance, how can you plan to cover your long-term care needs once they (most likely inevitably) arise? ]]> </description> <guid isPermaLink="false">UNFviLCsDvFqx7MKRjUnzQ</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/QMtyvT7ujz2xojwQoyxH7d.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Fri, 31 Jan 2025 10:45:00 +0000</pubDate> <category><![CDATA[Retirement]]></category> <category><![CDATA[Retirement-planning]]></category> <category><![CDATA[long term care]]></category> <category><![CDATA[Long-term-care-insurance]]></category> <category><![CDATA[Wealth-creation]]></category> <category><![CDATA[Investing]]></category> <category><![CDATA[Wealth-management]]></category> <author><![CDATA[ info@peakretirementplanning.com (Joe F. Schmitz Jr., CFP®, ChFC®) ]]></author> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/QMtyvT7ujz2xojwQoyxH7d.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[An older woman and man both appear thoughtful as they look into the distance.]]></media:text> <media:title type="plain"><![CDATA[An older woman and man both appear thoughtful as they look into the distance.]]></media:title> </media:content> </item> <item> <title><![CDATA[ What to Consider Before You Invest in Alternatives ]]></title> <dc:content><![CDATA[ <p>The calendar has turned, but the investment landscape still retains vestiges of the past several years’ dominant economic trends — and will for some time to come. It amounts to a new paradigm for the economy with crucial implications for advisers and their clients, and potentially a very attractive backdrop for generating returns, with help from alternative investments, or alts.</p><p>As 2025 begins, we believe the economy is experiencing a different kind of landing that defies easy categorization — one in which <a data-analytics-id="inline-link" href="https://www.kiplinger.com/economic-forecasts/inflation">inflation</a> and monetary policy rates settle but stay structurally higher than they were pre-COVID, with higher economic growth, too.</p><p>Considerable cash remains on the sidelines. Many advisers who are confident that the U.S. economy still has room to run believe that they need to put cash to work. Yet, they recognize, too, that public equity market valuations are stretched — indeed, for many investors, overexposure to U.S. equities is perhaps an even bigger risk than sidelined cash. Advisers see, too, that uncertainty about Fed policy and inflation’s direction has sparked public bond market volatility. At the same time, advisers need to address the expectations of clients who have just experienced <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/stock-market-today-stocks-end-a-strong-year-with-a-whimper#:~:text=Even%20with%20the,to%20FactSet%20Research.">back-to-back years of 20%-plus returns</a> for the S&P 500.</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_TZ5u6hI1_a7GJFMMh_div' class='future__jwplayer'><div id='botr_TZ5u6hI1_a7GJFMMh_div'></div></div></div></div><p>This landscape — particularly the persistence of relatively higher <a data-analytics-id="inline-link" href="https://www.kiplinger.com/economic-forecasts/interest-rates">interest rates</a> — reinforces what we believe to be private market assets’ well-established <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/602960/whats-so-great-about-diversification">diversification</a> and return advantages. But some first steps are advisable before putting an <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/what-to-know-about-alternative-investments">alternatives</a> allocation in place:</p><ul><li><strong>Consider the market’s full range.</strong> U.S. private markets provide access to 23 times more* companies than public markets, offering exposure to a broad spectrum of non-traded sectors, such as <a href="https://www.kiplinger.com/kiplinger-advisor-collective/consider-private-equity-in-your-investment-portfolio">private equity</a><u>,</u> private credit, private real estate, real assets such as farmland, infrastructure and more. For many investors, alts should be considered essential portfolio building blocks.</li><li><strong>Assume an appropriate investment horizon.</strong> While the short term can provide valuable clues about good entry points for an alts allocation, an investor generally needs to plan on holding the allocation for a minimum of five years in order to fully earn alts’ long-term diversification and return benefits.</li><li><strong>Understand liquidity needs</strong>. A rigorous planning exercise that accurately assesses liquidity requirements will give both adviser and client the confidence to add an appropriate allocation to semi-liquid or less-liquid assets.</li></ul><h2 id="some-potential-investing-ideas-2">Some potential investing ideas</h2><p>Here are some of our leading private markets ideas:</p><ul><li><strong>Private real estate.</strong> We see real estate as a potential “comeback kid” in 2025. For several years, the sector has been shunned due to the high-rate environment, which imposed a significant headwind on new construction across property types — and constricted the emergence of new supply. A strengthening economy with somewhat limited real estate supply bodes well for demand, though not necessarily in the central business district office sector; we see better opportunities in sectors such as industrial, medical office and <a href="https://www.kiplinger.com/real-estate/investing-in-senior-housing-what-you-need-to-know">senior living facilities</a><u>.</u></li><li><strong>Private credit.</strong> The private credit space has exploded in recent years, but it is not a go-anywhere strategy — it demands selectivity. We see appealing opportunities in the higher quality areas of middle market direct lending to private equity-backed companies. Middle market loans may continue offering attractive yields even as base rates decline, representing a consistent and resilient source of cash flow in either a hard or soft landing for the U.S. economy. In our view, attractive all-in yields coupled with a potentially renewed M&A environment in 2025 sets up private credit to be a relative outperformer.</li><li><strong>Farmland investments.</strong> Farmland is perhaps the ultimate portfolio diversifier, with inelastic demand for the end product (food) and strong income gains over decades driven by increased productivity in the farmland space. We believe technological progress in farming — a huge factor in the sector’s unique return profile — will continue going forward.</li></ul><p>Advisers who believe that their real value lies on the investment side via customized portfolio design — particularly for a younger generation of clients accustomed to personalization in so many aspects of their lives — need to consider alts part of their strategic mix.</p><p>They need to recognize, too, that, going forward, dispersion of private market returns may be far greater than for publicly traded assets — making the due diligence offered by a partner with deep multiasset experience an essential prerequisite for building a portfolio under a new economic paradigm.</p><p><em>* Source: Bloomberg, as of 31 Dec 2023. Representative Indexes: U.S. LC Growth (Russell 1000 Growth Index), U.S. LC Value (Russell 1000 Value Index), Non-U.S. Stocks (MSCI ACWI Index), Private Credit (Cliffwater Direct Lending Index), Private RE (NCREIF ODCE Index), Cash (Bloomberg U.S. Treasury Bill 1-3 Months Index), Core Bonds (Bloomberg U.S. Agg Index), HY Bonds (Bloomberg U.S. Corporate High Yield Index), Munis (Bloomberg Municipal Bond Index), Diversified Portfolio (20% U.S. LC Growth, 20% U.S. LC Value, 10% Non-U.S. Stocks, 10% Private Credit, 10% Private RE, 2% Cash, 10% Core Bonds, 4% HY Bonds, 14% Munis). Private as of 30 Sep 2023. Diversification does not assure a profit or protect against loss.</em></p><p><em>This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy, sell or hold a security or investment strategy and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on an investor's objectives and circumstances and in consultation with their financial advisors. Financial professionals should independently evaluate the risks associated with products or services and exercise independent judgment with respect to their clients. This material should not be regarded by the recipients as a substitute for the exercise of their own judgment. It is important to review your investment objectives, risk tolerance and liquidity needs before choosing an investment style or manager. </em></p><p><em>Nothing set out in these materials is or shall be relied upon as a promise or representation as to the past or future. This material, along with any views and opinions expressed within, are presented for informational and educational purposes only as of the date of production/writing and may change without notice at any time based on numerous factors, such as changing market, economic or other conditions, legal and regulatory developments, additional risks and uncertainties and may not come to pass. There is no representation or warranty (express or implied) as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information, and it should not be relied on as such. </em></p><p><em>Past performance is no guarantee of future results. All investments carry a certain degree of risk, including the possible loss of principal, and there is no assurance that an investment will provide positive performance over any period of time. Certain products and services may not be available to all entities or persons. There is no guarantee that investment objectives will be achieved.</em></p><p><em>Investors should be aware that alternative investments are speculative, subject to substantial risks including the risks associated with limited liquidity, the potential use of leverage, potential short sales and concentrated investments and may involve complex tax structures and investment strategies. Alternative investments may be illiquid, there may be no liquid secondary market or ready purchasers for such securities, they may not be required to provide periodic pricing or valuation information to investors, there may be delays in distributing tax information to investors, they are not subject to the same regulatory requirements as other types of pooled investment vehicles, and they may be subject to high fees and expenses, which will reduce profits. 4135887-0925</em></p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/investing/alternative-investments-what-to-consider-before-investing">What to Consider Before Choosing Alternative Investments</a></li><li><a href="https://www.kiplinger.com/retirement/alternative-investments-and-retirement-plans">Do Alternative Investments Belong in Your Retirement Plan?</a></li><li><a href="https://www.kiplinger.com/retirement/pros-and-cons-of-alternative-investments-in-your-ira">Pros and Cons of Adding Alternative Investments to Diversify Your IRA</a></li><li><a href="https://www.kiplinger.com/investing/how-to-get-into-alternative-investing">How to Get into Alternative Investing</a></li><li><a href="https://www.kiplinger.com/investing/downsides-of-investing-in-alternatives">Five Downsides of Investing in Alternatives</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/investing/invest-in-alternatives-what-to-consider</link> <description> <![CDATA[ A new economic paradigm points to the advantages of adding alternative investments to your portfolio for diversification and possibly higher returns. ]]> </description> <guid isPermaLink="false">FMKRhzwnrFgwq8Pvyk26E3</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/n8by7GDaWWqQSCQtcCLZW5.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Fri, 31 Jan 2025 10:40:00 +0000</pubDate> <category><![CDATA[Investing]]></category> <category><![CDATA[Wealth-creation]]></category> <category><![CDATA[Wealth-management]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/n8by7GDaWWqQSCQtcCLZW5.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[A neon trading graph. ]]></media:text> <media:title type="plain"><![CDATA[A neon trading graph. ]]></media:title> </media:content> </item> <item> <title><![CDATA[ Three Key Questions for Small-Business Owners in 2025 ]]></title> <dc:content><![CDATA[ <p>There are countless financial factors to keep in mind as a business owner. As 2025 kicks into full gear, there are a handful of proactive questions to ask yourself and your adviser that will set up your business, and its finances, for another successful year ahead.</p><h2 id="1-how-will-my-business-grow-this-year-2">1. How will my business grow this year?</h2><p>There’s no <em>right</em> way to expand your business. If you don’t know where to go next, goal-setting doesn’t always have to be about the big picture. Instead, putting intention behind your processes is a great place to kick off. A few ways to do so:</p><ul><li><strong>Focus on tracking your expenses and building income. </strong>Every dollar counts, especially for small and midsize businesses (SMBs). Find a system that both fits your business model and serves as an easy way to facilitate cash flow management and analysis.</li><li><strong>Ensure that bills are paid on time.</strong> This is equally important for outflows and revenue collection. Having a solid grasp on accounts receivable and accounts payable will set up your business for success. People are always at the heart of every business; staying on top of bills will improve relationships with vendors, employees and clients.</li><li><strong>Keep cash on hand for emergencies. </strong>As with personal expenses, having a backup of three to six months’ worth of cash reserves gives a cushion for slow seasons, investments and operating costs. If that isn’t doable, <a href="https://www.kiplinger.com/kiplinger-advisor-collective/tips-for-small-business-raising-funds">seeking financing</a> can be a great backup option.</li></ul><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_7xws2pdR_a7GJFMMh_div' class='future__jwplayer'><div id='botr_7xws2pdR_a7GJFMMh_div'></div></div></div></div><h2 id="2-my-business-needs-financing-but-what-are-my-options-2">2. My business needs financing, but what are my options?</h2><p>Growing businesses have specialized financing needs. Determining best option for your business will depend on the size, age and cash flow of your business. What your business needs comes down to timing, purchasing needs/accounts payable and hopes for investment into the business.</p><p>If financing is a natural next step for your business’ growth and operations, the options only get more complicated. Consider the following factors to narrow it down:</p><ul><li><strong>Is revenue consistent?</strong> A single investment that would generate more revenue or provide long-term cost savings (think: equipment, machines, space) would align well with a vehicle such as a term loan, which can be set up to have regular, fixed payments.</li><li><strong>What is your credit score?</strong> Interest rates across credit options can vary depending on your personal credit history.</li><li><strong>Does my cash flow call for consistent financing support?</strong> A line of credit (such as a loan or credit card), for example, will grant access to funds as needed. Depending on the type of payments you’re making (payroll vs business travel expenses), your preferred option will vary.</li><li><strong>How much time do I have?</strong> Some lines of credit take longer to access. For example, an <a href="https://www.sba.gov/funding-programs/loans" target="_blank">SBA loan</a> requires a hefty, time-consuming application process.</li></ul><h2 id="3-do-i-need-to-invest-in-my-stakeholders-2">3. Do I need to invest in my stakeholders?</h2><p>There are numerous people, clients and partners who care about your business and are dedicated in different ways to its success. Everyone within and immediately surrounding your business is part of your network, creating opportunities and offering solutions to challenges in the market. A few people to focus on building relationships with this year can include:</p><ul><li><strong>Vendors.</strong> Without strong vendor relationships, many business functions can be delayed, mispriced or fall below ideal quality standards. Leave no stone unturned; every business that supports yours matters and should be enabling your success. Consider each company you work with, from accountants to landlords, freelance designers to raw material suppliers. Find ways that you can serve one another, ensure a stable relationship and truly understand one another’s business to enhance collaboration to make both of your businesses more efficient.</li><li><strong>Partners.</strong> Are you and another organization offering complimentary goods or services to a set of customers? If so, keep a close watch on partnerships. Ensure that the partners you work with are best-in-class. If shopping around isn’t an option or preferred, this is a key moment to take the time and express your needs to those existing partners. Collaboration is the key to success, especially when there’s a shared knowledge of the end customer.</li><li><strong>Financial services providers. </strong>With the right tools, a small business can accelerate growth across revenue, customer satisfaction, product/service quality and in many other ways. However, it can be overwhelming to manage finances in a new way, on top of running a company in an ever-changing environment. Having an existing, positive relationship with your banker and/or <a href="https://www.kiplinger.com/personal-finance/how-to-find-a-financial-adviser">financial adviser</a> takes away one barrier to entry. Even if you don’t know how to get to the next phase, you know where to begin. Even if it’s not on your to-do-list for 2025, whether your next big step is improving point-of-sale, taking out a line of credit or seeking information about M&A, find someone you trust for big financial questions. When opportunity strikes, you’ll be ready.</li></ul><p>Setting financial goals for your business is more than a beginning-of-a-new-year exercise. It serves as a blueprint for your company’s growth and success in a sustainable way. Diligently managing your cash flow, exploring funding options/determining if you need them and investing in fostering strong relationships with stakeholders creates a solid foundation for your business to grow on.</p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/kiplinger-advisor-collective/small-business-reasons-to-be-excited">Why Small Business in 2025 Should Have You Excited</a></li><li><a href="https://www.kiplinger.com/business/strategies-for-small-businesses-to-reduce-taxes">Three Strategies for Small Businesses to Reduce Taxes</a></li><li><a href="https://www.kiplinger.com/business/tax-breaks-business-owners-might-not-know-about">Five Tax Breaks Business Owners Might Not Know About</a></li><li><a href="https://www.kiplinger.com/business/strategies-for-maximizing-business-profitability">Five Strategies for Maximizing Your Business' Profitability</a></li><li><a href="https://www.kiplinger.com/business/small-business/financial-planning-for-small-business-owners">Financial Planning for Small Business Owners</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/business/key-questions-for-small-business-owners-in-2025</link> <description> <![CDATA[ Now is a great time to consider how best to position your small business for another successful year. ]]> </description> <guid isPermaLink="false">a8BFAVnYMYdtjzVbVimPJM</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/stMzqzVVr8ugJob5DLmds5.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Fri, 31 Jan 2025 10:35:00 +0000</pubDate> <category><![CDATA[business]]></category> <category><![CDATA[Small-business]]></category> <category><![CDATA[Wealth-creation]]></category> <category><![CDATA[Investing]]></category> <category><![CDATA[Wealth-management]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/stMzqzVVr8ugJob5DLmds5.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[A small business owner flips the open sign on the door of her business.]]></media:text> <media:title type="plain"><![CDATA[A small business owner flips the open sign on the door of her business.]]></media:title> </media:content> </item> <item> <title><![CDATA[ How Does Car Insurance Work for Ride-Sharing Drivers? ]]></title> <dc:content><![CDATA[ <p>Remember taxis? Those cars out there, some of them a distinctive yellow with a black-checkered strip along each side, that pulled up when you yelled, “Hey, taxi!” You’d pop in, carefree as can be to have a stranger drive you where you want to go, and off the car went. Did you ever stop to think about whether the driver had insurance, or if they had tickets or accidents on their record? Heck, were you sure anyone had even checked to see if they had a driver’s license? I’ll answer for you: No. Not only did you not give it a second thought, you probably didn’t even care, because you assumed these things were all properly regulated and someone was looking out for you.</p><p>Enter ride-sharing. Anyone can be your driver now! Heck, any of your relatives who scare you with how they drive can now earn some coin by downloading an app, getting behind the wheel and giving strangers a ride. What a world! So let’s tick through that list again. Has anyone checked their driving record, insurance or criminal convictions? For some reason, those answers are more complicated.</p><h2 id="checks-on-ride-sharing-drivers-2">Checks on ride-sharing drivers</h2><p>Since there are multiple ride-sharing companies, let’s talk this through in general terms without mentioning specific companies. Turns out, there are some checks on these drivers occurring in the background.</p><p>The point I want to focus on — I’m sure you’re shocked — is the insurance for a ride-sharing driver. Who has it (the driver or the company), and whose will pay in the event of an accident and for what activity? Ride-sharing companies have policies that can potentially provide coverage in certain situations, but what about your personal insurance policy? Will that kick in and pay anything for you? Yes and no. And maybe, for good measure.</p><p>Personal auto insurance is designed for a person and the car they drive. In its most generic form, it works as it should. But what happens when you start driving for hire? You’re not just driving to drive or driving to work, school or a party. You’re driving to make some moola. That changes things. Also, what activity you’re doing while on the job impacts your coverage:</p><ul><li>Are you driving around while waiting for someone to request a ride?</li><li>Have you accepted a fare and are driving to pick them up?</li><li>Are you driving a customer to their destination?</li><li>Are you dropping a customer off?</li></ul><p>Whether your insurance policy will or won’t pay will be impacted by what job activity you were doing when a loss occurred. The ride-sharing company may offer a policy, and it also will or won’t pay depending on which stage of the job the loss occurred.</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_sTWQUVku_a7GJFMMh_div' class='future__jwplayer'><div id='botr_sTWQUVku_a7GJFMMh_div'></div></div></div></div><h2 id="what-to-do-if-you-re-a-ride-sharing-driver-2">What to do if you're a ride-sharing driver</h2><p>For a ride-sharing driver, the first order of business is to check with your insurance company to see if there is an endorsement (a fancy word for a change to your policy) that is available to cover you as a ride-sharing driver. If it does, this will be the easiest and likely the most cost-effective way to obtain coverage.</p><p>Do not — I repeat, <em>do not</em> — assume that you will automatically have coverage. Insurance policies are contracts, and you hoping your policy will provide coverage won’t change the words in the policy. Check with your insurer, <a data-analytics-id="inline-link" href="https://www.kiplinger.com/personal-finance/tips-for-choosing-your-insurance-agent-or-broker">agent or broker</a> and find out what options are available for you and your specific situation.</p><p>OK, so what do you do if your insurance company gives you a big thumbs-down? Don’t fret. As <em>Star Trek</em>’s Mr. Spock famously said, “There are always possibilities.” Jump on that good ol’ computer, get online and start checking for a policy that will provide the coverage you need. If you are fortunate enough to be working with an independent broker, they may have options with an insurance company other than the one you are currently with, and you can see about obtaining the protection you need there.</p><p>For ride-sharing customers, always stay vigilant. Check with the ride-sharing company to see what requirements it has for its drivers and ask to see verification from the driver when they pick you up. We have gotten to a place where sometimes we have blind trust that things are as they should be, that others are looking out for our best interests, and things will be, well, OK.</p><p>With new options and markets opening up and becoming more mainstream, ride-sharing is here to stay, at least until <a data-analytics-id="inline-link" href="https://waymo.com/" target="_blank">Waymo</a>’s self-driving cars are more widely accepted. (More on Waymo another time.)</p><p>Whether it is a taxi or any form of ride-sharing, a person behind the wheel or a computer with dozens of eyes on the road, keep that seat belt on and stay alert. Your life depends on it.</p><p><em>Want to learn more about insurance? Visit </em><a data-analytics-id="inline-link" href="https://karlsusman.com/" target="_blank"><em>KarlSusman.com</em></a><em>.</em></p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/personal-finance/tips-for-choosing-your-insurance-agent-or-broker">Five Tips for Choosing Your Insurance Agent or Broker</a></li><li><a href="https://www.kiplinger.com/personal-finance/insurance/who-works-to-make-your-insurance-work">Who Works to Make Your Insurance Work?</a></li><li><a href="https://www.kiplinger.com/personal-finance/why-does-one-claim-jack-up-my-insurance-after-years-of-no-claims">Why Does One Claim Jack Up My Insurance After Years of No Claims?</a></li><li><a href="https://www.kiplinger.com/retirement/gig-workers-estate-and-financial-plans">How Gig Workers Can Prepare Their Estate and Financial Plans</a></li><li><a href="https://www.kiplinger.com/personal-finance/freelancing/going-freelance-what-you-need-to-know">Going Freelance — What You Need to Know</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/personal-finance/how-does-car-insurance-work-for-ride-sharing-drivers</link> <description> <![CDATA[ Can you use your personal auto insurance? Does it cover everything or only certain things? Here's how to find out. ]]> </description> <guid isPermaLink="false">p9zwyixwE9yZgUdcqipjFi</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/5sqCjxR2KLXiVbgfYapeb5.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Fri, 31 Jan 2025 10:30:00 +0000</pubDate> <category><![CDATA[Personal-finance]]></category> <category><![CDATA[Car-insurance]]></category> <category><![CDATA[Wealth-creation]]></category> <category><![CDATA[Insurance]]></category> <category><![CDATA[Investing]]></category> <category><![CDATA[Wealth-management]]></category> <author><![CDATA[ Questions@InsuranceHour.com (Karl Susman, CPCU, LUTCF, CIC, CSFP, CFS, CPIA, AAI-M, PLCS) ]]></author> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/5sqCjxR2KLXiVbgfYapeb5.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[A ride-sharing driver talks with his client in the back seat of his car.]]></media:text> <media:title type="plain"><![CDATA[A ride-sharing driver talks with his client in the back seat of his car.]]></media:title> </media:content> </item> <item> <title><![CDATA[ Stock Market Today: Investors Adjust to Earnings and Guidance ]]></title> <dc:content><![CDATA[ <p>Earnings and guidance still matter most when it comes down to real decisions about buying, holding and selling stocks. An old-school big tech stock was among the day's biggest upside movers, while a major e-commerce player led to the downside. It was all fundamentals, with solid economic data in the background.</p><p>Price action largely reflected investors' feelings about a handful of big names, neither Federal Reserve Chair Jerome Powell nor President Donald J. Trump among them. At the same time, incoming data continue to support Powell's assertions during his <a data-analytics-id="inline-link" href="https://www.kiplinger.com/news/live/federal-reserve-meeting"><u>post-Federal Open Market Committee meeting press conference</u></a> on Wednesday that the U.S. economy is growing at a "solid" pace, supported by a "stable" labor market.</p><p>Gross domestic product (GDP) increased at an annual rate of 2.3% in the fourth quarter of 2024, according to the <a data-analytics-id="inline-link" href="https://www.bea.gov/data/gdp/gross-domestic-product"><u>Bureau of Economic Analysis</u></a>. And weekly jobless claims totaled 207,000 for the week ending January 25, a decrease of 16,000 from the 223,000 reported in the week prior, according to the <a data-analytics-id="inline-link" href="https://www.dol.gov/ui/data.pdf"><u>Department of Labor</u></a>.</p><div class="tradingview-widget-container"> <div class="tradingview-widget-container__widget"></div> <div class="tradingview-widget-copyright"><a href="https://www.tradingview.com/" rel="noopener nofollow" target="_blank"><span class="blue-text">Track all markets on TradingView</span></a></div> <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-market-overview.js" async>{"source":"marketOverview","id":"e8813d5f-3ebb-4c9e-bdaa-d51faec48bdb","showFloatingTooltip":false,"showSymbolLogo":true,"showChart":true,"plotLineColorGrowing":"rgba(41, 98, 255, 1)","symbolActiveColor":"rgba(41, 98, 255, 0.12)","colorTheme":"light","width":"400","height":"550","isTransparent":false,"gridLineColor":"rgba(240, 243, 250, 0)","scaleFontColor":"rgba(19, 23, 34, 1)","belowLineFillColorFalling":"rgba(41, 98, 255, 0.12)","largeChartUrl":"","dateRange":"12M","belowLineFillColorGrowing":"rgba(41, 98, 255, 0.12)","belowLineFillColorFallingBottom":"rgba(41, 98, 255, 0)","plotLineColorFalling":"rgba(41, 98, 255, 1)","locale":"en","tabs":[{"title":"Indices","symbols":[{"s":"FOREXCOM:SPXUSD","d":"S&P 500 Index"},{"s":"FOREXCOM:DJI","d":"Dow Jones Industrial Average Index"},{"s":"NASDAQ:IXIC","d":"Nasdaq Composite"}],"originalTitle":"Indices"},{"title":"Futures","symbols":[{"s":"CME_MINI:ES1!","d":"S&P 500"},{"s":"CME:6E1!","d":"Euro"},{"s":"COMEX:GC1!","d":"Gold"},{"s":"NYMEX:CL1!","d":"WTI Crude Oil"},{"s":"NYMEX:NG1!","d":"Gas"},{"s":"CBOT:ZC1!","d":"Corn"}],"originalTitle":"Futures"},{"title":"Bonds","symbols":[{"s":"CBOT:ZB1!","d":"T-Bond"},{"s":"CBOT:UB1!","d":"Ultra T-Bond"},{"s":"EUREX:FGBL1!","d":"Euro Bund"},{"s":"EUREX:FBTP1!","d":"Euro BTP"},{"s":"EUREX:FGBM1!","d":"Euro BOBL"}],"originalTitle":"Bonds"},{"title":"Forex","symbols":[{"s":"FX:EURUSD","d":"EUR to USD"},{"s":"FX:GBPUSD","d":"GBP to USD"},{"s":"FX:USDJPY","d":"USD to JPY"},{"s":"FX:USDCHF","d":"USD to CHF"},{"s":"FX:AUDUSD","d":"AUD to USD"},{"s":"FX:USDCAD","d":"USD to CAD"}],"originalTitle":"Forex"}],"belowLineFillColorGrowingBottom":"rgba(41, 98, 255, 0)","realType":"embed"}</script></div><p>Of course, President Trump did take issue with Powell's claim that current monetary policy is "well calibrated." On Wednesday, he weighed in on the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/fed-leaves-rates-unchanged-what-the-experts-are-saying"><u>FOMC decision</u></a> to hold the target range for the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/what-is-the-federal-funds-rate"><u>federal funds rate</u></a> steady at 4.25% to 4.50% via <strong>Trump Media & Technology Group's</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=DJT" target="_blank">DJT</a>) <a data-analytics-id="inline-link" href="https://truthsocial.com/@realDonaldTrump/posts/113913720574106648"><u>Truth Social</u></a> platform with little apparent effect at either the central bank or the market level.</p><p>Accusing Powell and the Fed of failing "to stop the problem they created with <a data-analytics-id="inline-link" href="https://www.kiplinger.com/economic-forecasts/inflation"><u>Inflation</u></a>," Trump said he "will do much more than stopping Inflation" and "will make our Country financially, and otherwise, powerful again!"</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_TZ5u6hI1_a7GJFMMh_div' class='future__jwplayer'><div id='botr_TZ5u6hI1_a7GJFMMh_div'></div></div></div></div><p>The <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/why-the-10-year-u-s-treasury-yield-is-so-important-right-now"><u>10-year U.S. Treasury note yield</u></a> trended lower from 4.555% on Wednesday to 4.524% as of 4 pm Eastern Time on Thursday.</p><p>At the closing bell, the blue chip <strong>Dow Jones Industrial Average</strong> added 0.4% to 44,882. The broad-based <strong>S&P 500 </strong>was up 0.5% to 6,071. And the tech-heavy <strong>Nasdaq Composite</strong> gained 0.3% to 19,681.</p><h2 id="amazon-com-can-t-kill-ups-2">Amazon.com can't kill UPS</h2><p><strong>United Parcel Service </strong>(<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=UPS" target="_blank">UPS</a>) stock plunged 14.1% after the international shipping<strong> </strong>company reported mixed results for its fourth quarter, provided a soft outlook for 2025 and announced <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/ups-stock-plunges-as-amazon-plans-50-percent-volume-cut"><u>shipping volume for its largest customer will be cut in half</u></a> over the next two years.</p><p>UPS said shipping volume from <strong>Amazon.com</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=AMZN" target="_blank">AMZN</a>) will decline by more than 50% over the next two years. Amazon accounted for 11.8% of total revenue at UPS in 2023. UPS also expects to realize annual savings of approximately $1 billion through efficiency initiatives related to its transition.</p><p>According to CEO Carol Tomé, management is executing a strategy to get "further down the path to becoming a more profitable, agile and differentiated UPS that is growing in the best parts of the market."</p><p>BofA Securities analyst <a data-analytics-id="inline-link" href="https://www.linkedin.com/in/ken-hoexter-a2645538/"><u>Ken Hoexter</u></a> raised his rating on UPS from Neutral (Hold) to Buy two weeks ago, citing a potential end to the freight recession in 2025 and benefits from the company's dynamic pricing model and cost initiatives.</p><p>Hoexter also noted that "these gains will work to offset potential volume losses as it insources the remainder of its SurePost last mile volumes from the U.S. Postal Service, continued Amazon revenue glide down, and its high-cost Teamster labor contract."</p><p>Hoexter has a 12-month price target of $150 for UPS stock, upside of more than 30% from Thursday's closing price.</p><h2 id="big-blue-gets-an-ai-boost-2">Big Blue gets an AI boost</h2><p><strong>International Business Machines</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=IBM" target="_blank">IBM</a>) was No. 1 among the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/blue-chip-stocks/602319/all-30-dow-jones-stocks-ranked-the-pros-weigh-in"><u>30 Dow Jones stocks</u></a> on Thursday, rising as much as 14.5% to a new 52-week high and closing up 13% after the O.G. big tech stock <a data-analytics-id="inline-link" href="https://newsroom.ibm.com/2025-01-29-IBM-RELEASES-FOURTH-QUARTER-RESULTS"><u>beat fourth-quarter expectations and issued positive guidance</u></a> for the year ahead.</p><p>"Clients globally continue to turn to IBM to transform with AI," said CEO Arvind Krishna, noting that Big Blue's "generative AI book of business now stands at more than $5 billion inception-to-date, up nearly $2 billion quarter over quarter."</p><p>Jefferies analyst <a data-analytics-id="inline-link" href="https://www.linkedin.com/in/brentthill/"><u>Brent Thill</u></a> reiterated his Hold rating on IBM stock but raised his 12-month price target to $270 from $245. "We are encouraged by the recent software momentum and implied further acceleration in guidance," Thill said.</p><h2 id="the-mag-7-and-other-earnings-matters-2">The Mag 7 and other earnings matters</h2><p><strong>Microsoft </strong>(<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=MSFT" target="_blank">MSFT</a>) was No. 30 among the 30 Dow Jones stocks on Thursday, shedding 6.2% even after it <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/why-microsoft-msft-stock-is-sinking-after-earnings"><u>beat top- and bottom-line expectations</u></a> for its second quarter.</p><p>The holdup here was management's weaker-than-expected outlook for its fiscal third quarter.</p><p><strong>Meta Platforms </strong>(<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=META" target="_blank">META</a>) stock rose 1.2% after the Facebook parent <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/is-meta-stock-a-buy-hold-or-sell-after-earnings"><u>beat top- and bottom-line expectations</u></a> for its fourth quarter.</p><p>And <strong>Tesla </strong>(<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=TSLA" target="_blank">TSLA</a>) stock rallied 2.9% despite the electric vehicle maker coming up short of top- and bottom-line expectations for its fourth quarter. It's possible <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/tesla-stock-rallies-despite-earnings-miss"><u>Elon Musk's relationship with the White House</u></a> is putting some wind behind Tesla.</p><p><strong>Apple</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=AAPL" target="_blank">AAPL</a>) is next up among Magnificent 7 stocks on the <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/17494/next-week-earnings-calendar-stocks"><u>earnings calendar</u></a> and will report its fiscal first-quarter results after Thursday's closing bell. AAPL was down 0.7% ahead of its announcement.</p><p><strong>Alphabet</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=GOOGL" target="_blank">GOOGL</a>) will report its fourth-quarter and full-year 2024 results after the close on Tuesday, February 4. GOOGL was up 2.8% on Thursday.</p><p>Amazon.com, meanwhile, is scheduled to report after the close on Thursday, February 6. AMZN was down 1%, seeing no upside for itself from UPS' intraday demise.</p><p><strong>Nvidia</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=NVDA" target="_blank">NVDA</a>), which rallied into the closing bell and ended the day up 1%, will wrap up this chapter of the Mag 7 story when it reports fiscal fourth-quarter results after the close on Wednesday, February 26.</p><p>Though Microsoft and Meta have confirmed their AI-related capex plans, NVDA stock continues to reflect fears about <a data-analytics-id="inline-link" href="https://www.kiplinger.com/investing/stocks/stock-market-today-markets-tumble-on-deepseek-shock"><u>emerging lower-cost artificial intelligence models</u></a>.</p><p><strong>ServiceNow</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=NOW" target="_blank">NOW</a>, -11.5%) and <strong>Comcast</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=CMCSA" target="_blank">CMCSA</a>, -11%) were also dragging on the S&P 500. ServiceNow missed with both its report and its guidance for <a data-analytics-id="inline-link" href="https://www.servicenow.com/company/media/press-room/fourth-quarter-full-year-2024-financial-results.html"><u>subscription revenue</u></a>, while Comcast suffered a bigger-than-expected decline in <a data-analytics-id="inline-link" href="https://www.cmcsa.com/static-files/9cd62cea-91c4-4ad7-a7dc-7eeaaa576c42"><u>broadband customers</u></a>.</p><p>For the record, DJT stock was down 1.5% on Thursday. Trump Media & Technology is expected to reveal its fourth-quarter results on or about February 4.</p><p>Trump Media announced on Wednesday that its board of directors "has approved <a data-analytics-id="inline-link" href="https://ir.tmtgcorp.com/news-events/press-releases/#b2iLibScrollTo"><u>a financial services and financial technology strategy</u></a>, which will include the launch of the financial services and FinTech brand Truth.Fi."</p><h3 class="article-body__section" id="section-related-content"><span>Related content</span></h3><ul><li><a href="https://www.kiplinger.com/investing/financial-stocks-should-pay-off-in-2025">Financial Stocks Should Pay Off in 2025</a></li><li><a href="https://www.kiplinger.com/invested-1000-in-IBM-stock-worth-how-much-now">If You'd Put $1,000 Into IBM Stock 20 Years Ago, Here's What You'd Have Today</a></li><li><a href="https://www.kiplinger.com/news/live/stocks-earnings-season-live-updates-and-commentary">Earnings Season: Live Updates and Commentary</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/investing/stocks/stock-market-today-investors-adjust-to-earnings-and-guidance</link> <description> <![CDATA[ The stock market struggles in a good way when it's measuring what's happening on the ground. ]]> </description> <guid isPermaLink="false">e49Akebi7mEVihNn65Foga</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/faQzG2ffnXNrS4oaEkP4zF.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Thu, 30 Jan 2025 21:08:49 +0000</pubDate> <category><![CDATA[Stocks]]></category> <category><![CDATA[Investing]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/faQzG2ffnXNrS4oaEkP4zF.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[stocks rise on good earnings]]></media:text> <media:title type="plain"><![CDATA[stocks rise on good earnings]]></media:title> </media:content> </item> <item> <title><![CDATA[ RFK Jr. Confused Medicare and Medicaid: Here's the Difference ]]></title> <dc:content><![CDATA[ <p>Ordinary people confuse Medicare and Medicaid all the time. However, when the person pegged to lead the <a data-analytics-id="inline-link" href="https://www.hhs.gov/" target="_blank">U.S. Department of Health and Human Services (HHS)</a> gets the two programs mixed up, it’s apt to raise some eyebrows.</p><p>During a <a data-analytics-id="inline-link" href="https://www.finance.senate.gov/hearings/hearingto-consider-the-nomination-of-robert-f-kennedy-jr-of-california-to-be-secretary-of-health-and-human-services" target="_blank">Jan. 29 Senate confirmation hearing</a>, Robert F. Kennedy Jr., President Trump's nominee to oversee HHS, confused some key elements of Medicare and Medicaid.</p><p>When asked about integrating care for enrollees in <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/medicare/medicare-basics-things-you-need-to-know">Medicare</a> and Medicaid simultaneously, Kennedy described Medicaid as "fully paid for by the federal government." Medicaid, however, is actually funded by states and the federal government combined.</p><p>Kennedy also referenced Medicaid enrollees' dissatisfaction with their high premiums and deductibles. But Medicaid enrollees typically aren't charged premiums or deductibles, so that statement seems like it should have been targeted toward enrollees in Medicare.</p><p>Despite their similar names, Medicare and Medicaid are two distinctly different healthcare programs. Here are some key differences.</p><h2 id="what-is-medicare-2">What is Medicare?</h2><p>Medicare is a federal health insurance program that typically serves people aged 65 and older. Enrollment before age 65 may be possible for people with certain disabilities, end-stage renal disease, or ALS.</p><p>People collecting <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/social-security/601708/social-security-basics-12-things-you-must-know-about-claiming-and">Social Security</a> or certain disability benefits are <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/medicare/missed-medicare-open-enrollment-now-what">enrolled in Medicare</a> automatically at age 65. Otherwise, enrollees typically get a seven-month period to sign up that begins three months before the month they turn 65 and ends three months after the month of their 65th birthday.</p><p><strong>Medicare premiums and other charges</strong></p><p><a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/medicare/603541/what-you-must-know-about-the-different-parts-of-medicare">Medicare has multiple parts</a> or categories of coverage, some of which require enrollees to pay.</p><p><u>Parts A and B</u>: Medicare enrollees typically do not pay a monthly premium for Part A, which covers hospital care. But monthly premiums do apply to Part B, which covers outpatient services. An annual deductible applies to Part B, and Part A enrollees pay an inpatient deductible per hospital stay.</p><p>Because Medicare is federally funded, all Parts A and B enrollees are entitled to the same level and scope of coverage.</p><p><u>Part D</u>: Medicare enrollees can also choose Part D drug plan coverage or opt to sign up for <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/medicare/603537/is-a-medicare-advantage-plan-right-for-you"><u>Medicare Advantage</u></a>, which is typically all-in-one coverage. Private insurers offer Medicare Advantage plans to people enrolled in Parts A and B.</p><p>Some Medicare Advantage and Part D plans charge enrollees a premium, but not always. And Part D and Medicare Advantage plans typically have an annual deductible.</p><p>The scope and cost of coverage under Medicare Advantage and Part D is plan-specific. The number of Medicare Advantage and Part D plans, and the quality of those plans, varies by state.</p><h2 id="what-is-medicaid-2">What is Medicaid? </h2><p><a data-analytics-id="inline-link" href="https://www.medicaid.gov/" target="_blank">Medicaid</a> is a health insurance program for low-income individuals jointly funded by states and the federal government. Although the federal government oversees Medicaid, each state administers it for its residents. Each state is tasked with setting its income thresholds for eligibility and deciding what benefits its Medicaid plans offer.</p><p>Although states have the option to charge premiums and impose deductibles on Medicaid enrollees, federal law limits the extent to which states can impose cost-sharing requirements. Many enrollees in Medicaid don’t pay premiums or deductibles since they’re based on income.</p><h2 id="differences-in-coverage-2">Differences in coverage</h2><p>One key difference between Medicare and Medicaid is that the former is largely age-based, while the latter is income-based. This means that people 65 and over can qualify for Medicaid despite also being eligible for Medicare.</p><p>Medicaid covers low-income adults under, over, or exactly 65, children, and people with certain disabilities. Medicare only covers Americans 65 and over and those with certain disabilities or the health conditions noted above.</p><p>Not only are Medicare and Medicaid different in terms of eligibility, but they also differ in terms of the services they cover. All states must provide certain benefits through their Medicaid programs, including physician services, hospital services, lab work, and X-rays.</p><p>Some state Medicaid programs also cover dental care, eye exams, and glasses — services often covered by Medicare Advantage plans but not original Medicare. Medicaid plans may also cover additional services not paid for by Medicare, including nursing home care, personal care, and home-based services.</p> <p>Source: <a data-analytics-id="inline-link" href="https://boomerbenefits.com/difference-medicare-medicaid/" target="_blank" rel="nofollow">Boomer Benefits</a> and <a data-analytics-id="inline-link" href="https://www.ncoa.org/article/what-is-the-difference-between-medicare-and-medicaid/" target="_blank">National Council on Aging</a>.</p><h2 id="dual-eligibility-for-medicare-and-medicaid-2">Dual eligibility for Medicare and Medicaid</h2><p>If Medicare mainly covers older people and Medicaid poor people, then it stands to reason that some Americans aged 65 and over may be eligible for both Medicare and Medicaid. The <a data-analytics-id="inline-link" href="https://www.cms.gov/medicare/medicaid-coordination/about/qualified-medicare-beneficiary-program" target="_blank">Qualified Medicare Beneficiary (QMB) program</a> effectively covers the cost of Medicare Parts A and B for qualifying low-income individuals, including eligible Medicaid enrollees.</p><p>Generally, Medicare is the primary payer for people enrolled in both Medicare and Medicaid. Dual enrollees are automatically enrolled in a Medicare Part D drug plan to cover the cost of prescriptions instead of Medicaid, though Medicaid may still pay for certain non-Medicare-covered drugs.</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_KQr60TxC_a7GJFMMh_div' class='future__jwplayer'><div id='botr_KQr60TxC_a7GJFMMh_div'></div></div></div></div><h2 id="different-ways-to-get-health-care-2">Different ways to get health care</h2><p>Medicare and Medicaid both provide health care coverage, but the similarities largely end there. They're run differently and serve different groups, and the coverage available under each program is different.</p><p>Working Americans nearing retirement age should <a data-analytics-id="inline-link" href="https://www.kiplinger.com/retirement/medicare/medicare-basics-things-you-need-to-know"><u>read up on Medicare</u></a> to understand what their costs and coverage will entail. Information on Medicaid, including eligibility, is available through <a data-analytics-id="inline-link" href="https://www.medicaid.gov/state-overviews/index.html" target="_blank">each state's Medicaid agency</a>.</p><h3 class="article-body__section" id="section-read-more"><span>Read More</span></h3><ul><li><a href="https://www.kiplinger.com/article/insurance/t027-c000-s002-faqs-about-medicare.html">12 FAQs About Medicare: Your Medicare Questions Answered</a></li><li><a href="https://www.kiplinger.com/retirement/medicare/what-does-medicare-not-cover-things-you-should-know">What Does Medicare Not Cover?</a></li><li><a href="https://www.kiplinger.com/retirement/medicare/601487/costly-medicare-mistakes-you-should-avoid-making">11 Costly Medicare Mistakes You Should Avoid</a></li><li><a href="https://www.kiplinger.com/retirement/medicare/medicare-premiums-2025-irmaa-for-parts-b-and-d">Medicare Premiums 2025: IRMAA Brackets and Surcharges for Parts B and D</a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/retirement/medicare/rfk-jr-confused-medicare-and-medicaid-heres-the-difference</link> <description> <![CDATA[ The HHS Secretary nominee confused Medicare and Medicaid programs, though he would be responsible for them. We break down the difference. ]]> </description> <guid isPermaLink="false">9Jycxy2VdRLBVwN9YNJggb</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/T7igwSs3RjcZ4anmiQ8MDK.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Thu, 30 Jan 2025 19:49:14 +0000</pubDate> <category><![CDATA[Medicare]]></category> <category><![CDATA[Retirement-planning]]></category> <category><![CDATA[Retirement]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/T7igwSs3RjcZ4anmiQ8MDK.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[Robert F. Kennedy, Jr. in the Capitol Building in January 2025.]]></media:text> <media:title type="plain"><![CDATA[Robert F. Kennedy, Jr. in the Capitol Building in January 2025.]]></media:title> </media:content> </item> <item> <title><![CDATA[ UPS Stock Plunges After Plans for 50% Amazon Volume Cut ]]></title> <dc:content><![CDATA[ <p><strong>UPS</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=UPS" target="_blank">UPS</a>) stock is plunging Thursday after the international shipping company beat profit expectations for its fourth quarter but provided a weak outlook on 2025 and announced that it plans to cut volume for its largest customer by more than 50%.</p><div class="tradingview-widget-container"> <div class="tradingview-widget-container__widget"></div> <div class="tradingview-widget-copyright"><a href="https://www.tradingview.com/" rel="noopener nofollow" target="_blank"><span class="blue-text">Track all markets on TradingView</span></a></div> <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-single-quote.js" async>{"source":"singleQuote","id":"4e123d5f-e3ef-4a6a-9c57-d8196b679ef1","colorTheme":"light","isTransparent":false,"locale":"en","width":"350","symbol":"UPS","realType":"embed"}</script></div><p>Investors have long wondered about the potential impact on UPS' business as <strong>Amazon.com</strong> (<a data-analytics-id="inline-link" href="https://www.kiplinger.com/tfn/ticker.html?ticker=AMZN" target="_blank">AMZN</a>) assumed responsibility for an increasing share of its own delivery volume.</p><p>That future is now, and UPS appears to be taking proactive steps to optimize its own operations. A period of transition is reflected in 2025 guidance and the price of UPS stock too.</p><p>Management forecast revenue of approximately $89 billion and an operating profit of $9.6 billion this year, well below analysts' expectations of $95 billion and $10.1 billion.</p><p>UPS said it will lower shipping volumes for Amazon, its largest customer, by more than 50% by the second half of 2026. Amazon accounted for 11.8% of total revenue at UPS in 2023.</p><div class='jwplayer__widthsetter'><div class='jwplayer__wrapper'><div id='futr_botr_TZ5u6hI1_a7GJFMMh_div' class='future__jwplayer'><div id='botr_TZ5u6hI1_a7GJFMMh_div'></div></div></div></div><p>"We are making business and operational changes that, along with the foundational changes we've already made, will put us further down the path to becoming a more profitable, agile and differentiated UPS that is growing in the best parts of the market," CEO Carol Tomé said in a statement.</p><p>Indeed, UPS expects to realize annual savings of approximately $1 billion through efficiency initiatives related to its transition.</p><p><a data-analytics-id="inline-link" href="https://investors.ups.com/news-events/press-releases/detail/2135/ups-releases-4q-2024-earnings-and-provides-2025-guidance" target="_blank"><u>In the three months ending December 31</u></a>, UPS reported a 1.5% year over year increase in revenue to $25.3 billion. Earnings per share (EPS) rose 11.3% from the year-ago period to $2.75.</p><p>Results were mixed compared with analysts' expectations. Wall Street was anticipating revenue of $25.4 billion and earnings of $2.53 per share, according to <a data-analytics-id="inline-link" href="https://finance.yahoo.com/quote/UPS/analysis/" target="_blank"><u>Yahoo Finance</u></a>.</p><h2 id="is-ups-stock-a-buy-sell-or-hold-2">Is UPS stock a buy, sell or hold?</h2><p>Despite the sharp sell-off, Wall Street remains bullish on the shipping giant. UPS stock was down 16% in 2024 vs a gain of 25% for the S&P 500, which suggests the market understood the business risk management is addressing with its recent guidance.</p><p>According to <a data-analytics-id="inline-link" href="https://www.spglobal.com/marketintelligence/en/" target="_blank"><u>S&P Global Market Intelligence</u></a>, the average analyst target price for UPS stock is $148.91, representing implied upside of more than 35% from Thursday's intraday lows.</p><p>Analysts will likely revise their ratings and price targets following the Amazon news. But, right now, the consensus recommendation is a Buy.</p><p>Financial services firm BofA Securities is one of those outfits with a Buy rating on UPS stock. And analyst Ken Hoexter anticipated the Amazon news.</p><p>"We are raising our rating on UPS' shares to Buy from Neutral as we see a potential end to the freight recession in 2025, as well as benefits from the company's dynamic pricing model and cost initiatives," Hoexter said in a January 16 note.</p><p>"We believe these gains will work to offset potential volume losses as it insources the remainder of its SurePost last mile volumes from the US Postal Service, continued Amazon revenue glide down, and its high-cost Teamster labor contract."</p><p>Hoexter has a 12-month price target of $150 for UPS stock.</p><p><em>Editor's note: This article originally stated that Amazon would be cutting volume by 50%, but the decision was made by UPS. "Due to their operational needs, UPS requested a reduction in volume and we certainly respect their decision. We'll continue to partner with them and many other carriers to serve our customers," said Kelly Nantel, a spokesperson for Amazon, in an emailed statement. We apologize for the error.</em></p><h3 class="article-body__section" id="section-related-content"><span>Related Content</span></h3><ul><li><a href="https://www.kiplinger.com/investing/stocks/17494/next-week-earnings-calendar-stocks"><u>Earnings Calendar and Analysis for This Week</u></a></li><li><a href="https://www.kiplinger.com/investing/analysts-top-sandp-500-stocks-to-buy-now"><u>Analysts' Top S&P 500 Stocks to Buy Now</u></a></li><li><a href="https://www.kiplinger.com/investing/stocks/dividend-stocks/best-dividend-stocks-you-can-count-on"><u>Best Dividend Stocks to Buy for Dependable Dividend Growth</u></a></li></ul> ]]></dc:content> <link>https://www.kiplinger.com/investing/stocks/ups-stock-plunges-as-amazon-plans-50-percent-volume-cut</link> <description> <![CDATA[ UPS stock is lower after announcing that it plans to cut volume for Amazon, its largest customer, by more than 50% by late 2026. Here's what you need to know. ]]> </description> <guid isPermaLink="false">tcEvLJYpx3s7AHhMDBa227</guid> <enclosure url="https://cdn.mos.cms.futurecdn.net/ZdzUbmbWC2MsJFAEuSggUH.jpg" type="image/jpeg" length="0"></enclosure> <pubDate>Thu, 30 Jan 2025 16:25:00 +0000</pubDate> <category><![CDATA[Stocks]]></category> <category><![CDATA[Investing]]></category> <media:content type="image/jpeg" url="https://cdn.mos.cms.futurecdn.net/ZdzUbmbWC2MsJFAEuSggUH.jpg"> <media:credit><![CDATA[Getty Images]]></media:credit> <media:text><![CDATA[UPS driver unloads a truck.]]></media:text> <media:title type="plain"><![CDATA[UPS driver unloads a truck.]]></media:title> </media:content> </item> </channel></rss>If you would like to create a banner that links to this page (i.e. this validation result), do the following:
Download the "valid RSS" banner.
Upload the image to your own server. (This step is important. Please do not link directly to the image on this server.)
Add this HTML to your page (change the image src attribute if necessary):
If you would like to create a text link instead, here is the URL you can use:
http://www.feedvalidator.org/check.cgi?url=https%3A//www.kiplinger.com/feed/all
