Tag: credit

I’m 66, we have more than $2 million, I just want to golf – can I retire?

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I’m 66 years and 4 months old.

My Social Security payments start next month at $3,300 a month. I’m currently working part-time, three days per week, as a professional engineer for $95/hour for my long-time regular full-time employer of 28 years. (I want to leave this position ASAP or sooner.)

I currently have about $1.6 million in retirement accounts. My wife (60 years old) has about $600,000 in various regular and retirement accounts. We have a 16-year-old daughter at home attending high school and college in a dual enrollment program. If she stays with the program she’ll have her bachelors at 19. While in high school she takes college classes and we pay no tuition while she’s in high school.

Our monthly expenses are about $9,000-10,000 per month including health insurance for my wife and daughter. We own our modest single-family home with no mortgage. Taxes and insurance are currently about $6,000 per year. We currently have no debt, aside from an American Express and Visa that we pay off every month.

I’m on Medicare. I get walloped for a double premium for part “B” because I’m considered a high-wage earner. The two of us are in reasonable/normal health for a couple of old farts.

I want to throw in the towel on May 5 and play more golf. Can we do it?

See: We’re in our 60s and have lost $250,000 in our 401(k) plans — can we still retire?

Dear reader,

Congratulations on saving so much for your retirement. That’s a wonderful accomplishment alone!

Because I don’t have all of your financials in front of me, nor am I a financial planner building a comprehensive plan for your retirement, I can’t say for certain if you can retire. However, it does obviously sound like you’re doing well and that you’ve been planning. Instead of telling you to go for it or not, I’m going to offer a few things to consider before you pick up your mid irons.

More than $2 million (you and your wife’s savings combined) is a lot of money — I’m not suggesting otherwise — but when it comes to retirement, it doesn’t mean you’re automatically good to go once you hit the million-dollar mark. There are so many factors, some of which you mentioned like healthcare and debt, as well as saving and spending.

I harp on spending analysis a lot but to me, it’s so crucial when deciding if and how to retire. Why? Because this is something that, for the most part, you can control. That’s a pretty powerful feeling.

So my first suggestion: Review those AMEX and Visa statements, as well as money that comes out of any checking accounts, and make sure that you’re spending the way you want and need to spend. When you retire, you won’t have that part-time income anymore, and while you may be itching to get on the green, you’ll also be stressing out if you don’t have enough green in a decade or two. You’ve told me what your Social Security benefits will be and what your average monthly spending is, but I would suggest really poring over your spending and assessing how comfortable you’ll be if you continue to spend that way when you retire.

Check out MarketWatch’s column “Retirement Hacks” for actionable pieces of advice for your own retirement savings journey

There’s a second part to that analysis, which is how much money you intend to withdraw from your retirement accounts. I’m not sure if your wife is still working, but regardless, the more money you take out of those accounts every month, the less there is available to grow over time. Taxes also play a part here, depending on if you’re withdrawing from a traditional or Roth-style account. Those taxes could take a larger chunk out of your spending money, as well as potentially give you a heftier tax bill come tax time.

Think about this when your daughter goes off to college, too. She may not be there long if she continues with her hybrid high school and college courses (which is wonderful, by the way), but do you plan to pay for her tuition, and if so, where is that money coming from? Advisers tell me all the time: you can take a loan for college, but you can’t take one for retirement. It might be beneficial to have a separate savings account earmarked for education, if you don’t already have one of those or some sort of college savings account like a 529 plan, so that you’re not draining your retirement account for a tuition bill.

One last bit about that — plan for the unexpected. What will you do if a major expense arises? Will that money also come from a retirement account, or do you have an emergency account set aside to cover it? Saving a lot of money for retirement is amazing, but it’s not the only task individuals need to manage… coming up with a Plan B, and maybe even a Plan C and Plan D, is necessary too.

Also see: Are you planning for retirement all wrong?

Next, before retiring, check the way your money is invested. What’s your asset allocation like, and does it need to change? Don’t make alterations just to make them — and definitely don’t make them just because you read the markets weren’t doing so hot that day — but keep in mind this money does need to grow for decades to support you and your wife, so you will need to strike that balance. Reaching out to a qualified financial professional, such as a certified financial planner, can help you make sense of what the best investment mix is, but at the least, log in to your account or call up the firm where your accounts are located and check that asset allocation.

Also, you mentioned you’re already on Medicare. I would suggest taking the time now — well before open enrollment — to review your current and expected future health expenses, and then assess how helpful your current coverage is for you. I know you mentioned you and your wife are in reasonable health, but if there are any operations or services you think you may need next year, it’s better to start reviewing what plans provide you the best coverage for your situation so that you’re not paying more out of pocket than necessary. This is an exercise you don’t need to do immediately, but it will certainly help you feel more prepared come the end of the year when it’s time to keep your current plan or switch for something else.

As an aside, you’ll eventually pay less in Medicare Part B premiums when your modified adjusted gross income declines. Those premiums are based on your tax returns from two years prior.

You sound like you are on the right track, which is wonderful. I would just caution you to tie up a few loose ends before resigning so that you can tee up without worrying.

Readers: Do you have suggestions for this reader? Add them in the comments below.

Have a question about your own retirement savings? Email us at HelpMeRetire@marketwatch.com

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March 3, 2023
The 2023 stock market rally looks wobbly. What’s next as investors prepare for longer inflation fight.

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The stock market is ending February on a decidedly wobbly note, raising doubts about the durability of an early 2023 rally.

Blame stronger-than-expected economic data and hotter-than-expected inflation readings that have forced investors to again rethink their expectations around how high the Federal Reserve will drive interest rates.

“The idea that equity markets would experience a strong upside surge while the Fed was still hiking and the market was underestimating what Fed was going to do” had looked “untenable,” said Lauren Goodwin, economist and portfolio strategist at New York Life Investments, in a phone interview.

Market participants have come round to the Fed’s way of thinking. At the end of January, fed-funds futures reflected expectations the Fed’s benchmark interest rate would peak below 5% despite the central bank’s own forecast for a peak in the 5% to 5.25% range. Moreover, the market was forecasting the Fed would deliver more than one cut by year-end.

That view began to shift after the release of a January jobs report on Feb. 3 that showed the U.S. economy added a much larger-than-expected 517,000 jobs and showed a drop in the unemployment rate to 3.4% — its lowest since 1969. Throw in hotter-than-expected January consumer and producer price index readings and Friday’s bounce in the core personal consumption expenditures price index, the Fed’s favored inflation measure, and the market’s outlook on rates looks much different.

Participants now see the Fed raising rates above 5% and holding them there through at least year end. The question now is whether the Fed will bump up its forecast of where it expects rates to peak at its next policy meeting in March.

That’s translated in a backup in Treasury yields and a pullback by stocks, with the S&P 500 down around 5% from its 2023 high set on Feb. 2, leaving it up 3.4% in the year to date through Friday.

It isn’t just that investors are learning to live with the Fed’s expectation for rates, it’s that investors are realizing that bringing down inflation will be a “bumpy” process, said Michael Arone, chief investment strategist for the SPDR business at State Street Global Advisors, in a phone interview. After all, he noted, it took former Fed Chairman Paul Volcker two recessions in the early 1980s to finally crush a bout of runaway inflation.

The run to the S&P 500’s Feb. 2 high was led by what some analysts derisively called a “dash for trash.” Last year’s biggest losers, including highly speculative shares of companies with no earnings, were among the leaders on the way back up. Those stocks suffered particularly last year as the Fed’s aggressive cadence of rate hikes sent Treasury yields up sharply. Higher bond yields make it harder to justify holding stocks whose valuations are based on earnings and cash flow projected far into the future.

Inflation readings this month have all been hotter than expected, resulting in the “reversal of everything that was working” previously, Arone noted. The 10-year Treasury yield had fallen, the dollar was weakening, which means that highly speculative, volatile stocks are giving back leadership to companies that benefit from rising rates and inflation, he said.

The energy sector was the sole winner among the S&P 500’s 11 sectors in the past week, while materials and consumer staples outperformed.

The Dow Jones Industrial Average
DJIA,
-1.02%
dropped 3% last week, leaving the blue-chip gauge down 1% so far in 2023, while the S&P 500
SPX,
-1.05%
slid 2.7% and the tech-heavy Nasdaq Composite
COMP,
-1.69%
dropped 1.7%. The Nasdaq trimmed its year-to-date gain to 8.9%.

Goodwin sees scope for stocks to fall another 10% to 15% as the economy slides toward recession. She said that while earnings results showed bottom line results continue to hold up relatively well for tech and consumer discretionary sectors, top line revenues are decelerating — a troubling mismatch. Outside of the pandemic winners, companies are struggling to maintain profit margins, she noted.

Indeed, margin trouble could be the next big worry, Arone said.

Net margins are below the five-year average because businesses have reached a limit when it comes to passing on price increases customers.

“My view is this will remain a headwind for the outlook for stocks and one that’s a bit under the radar,” he said. That might explain why sectors that still enjoy high margins or are able to increase margins — such as the aforementioned energy and industrials — were outperforming the market at the end of the past week.

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February 26, 2023
Entrepreneur | 5 Tips for Building Business Credit for Your New LLC

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Opinions expressed by Entrepreneur contributors are their own.

Starting a new LLC (Limited Liability Company) can be a great way to establish your business and build a strong financial foundation. One of the key elements to building a successful business is developing good business credit. A strong business credit score can help you secure financing, negotiate better terms with suppliers, and create a professional image for your company. Here are five ways to build business credit for your new LLC:

1. Get an Employer Identification Number (EIN)

The first step in building business credit is to get an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This number serves as a unique identifier for your business and is used to open bank accounts, apply for business loans and establish business credit.

An EIN is crucial in separating your personal and business finances, which is important for both tax purposes and building a strong business credit profile. The process of obtaining an EIN is straightforward and can be completed online or through the mail in a matter of minutes. It is important to note that having an EIN does not automatically establish business credit, but it is a crucial step in the process.

Related: 4 Steps to Establishing a Good Business Credit Score

2. Open a business bank account

Once you have an EIN, the next step is to open a business bank account. This will help you separate your personal finances from your business finances, which is important for both tax purposes and building business credit. By keeping your business finances separate, it is easier to track your business’s cash flow and financial history, which will be important when it comes time to apply for credit.

Having a separate business bank account is crucial in separating your personal and business finances, and it helps you create a clear financial history for your business. By keeping track of your business’s cash flow and financial history, you’ll be able to provide lenders and credit bureaus with a clear picture of your business’s financial health, which will be important when applying for credit. Additionally, having a separate business bank account will make it easier for you to manage your business’s finances, track expenses and stay organized.

3. Register your business with business credit bureaus

To build your business credit, you will need to register your LLC with business credit bureaus. These bureaus, such as Experian, Dun & Bradstreet and Equifax, keep track of your business’s credit history and credit score. By registering your business, you are allowing the bureaus to collect information about your business, which they will use to calculate your business credit score.

Registering your LLC with business credit bureaus is a crucial step in building your business credit. The credit bureaus collect information about your business from various sources, including your business bank account, trade lines and payment history. They use this information to calculate your business credit score, which is a numerical representation of your business’s creditworthiness. A good business credit score can help you secure financing, negotiate better terms with suppliers and establish a professional image for your business. It is important to note that while registering with the credit bureaus is important, it does not guarantee that your business will have a good credit score. To build a strong business credit profile, it’s important to use credit responsibly and make timely payments.

Related: Funding Your Business: Building Credit and More

4. Establish trade lines

Trade lines are a key factor in determining your business credit score. Trade lines refer to the relationships you have established with suppliers and creditors, such as loans and credit card accounts. By establishing trade lines with suppliers, you are demonstrating to creditors that your business is financially responsible and can be trusted to repay its debts. You can establish trade lines by paying bills on time and using business credit cards to purchase goods and services.

These relationships demonstrate to creditors and credit bureaus that your business is financially responsible and capable of repaying its debts. By establishing trade lines and making timely payments, you can build a strong business credit profile and increase your chances of securing financing in the future. Additionally, using business credit cards can help you establish trade lines and build credit, as long as you use them responsibly and make timely payments.

5. Use credit wisely

Finally, it is important to use credit wisely when building your business credit. This means paying bills on time, using credit cards responsibly and avoiding high levels of debt. By using credit wisely, you are demonstrating to creditors that your business is financially responsible and can be trusted to repay its debts. A strong business credit score will give you better access to financing, lower interest rates and better terms with suppliers, all of which will help you grow your business and achieve long-term success.

Using credit wisely is a critical factor in building and maintaining a strong business credit score. Late payments, high levels of debt and mismanaging credit can all have a negative impact on your business credit score, making it more difficult to secure financing and establish trade lines. On the other hand, paying bills on time, using credit cards responsibly, and keeping debt levels low demonstrate to creditors and credit bureaus that your business is financially responsible and trustworthy. A strong business credit score can open up many opportunities for your business, including better access to financing, lower interest rates and favorable terms with suppliers. So, it is important to use credit wisely and keep an eye on your business’s financial health and credit score to ensure continued success.

In conclusion, building business credit for your new LLC takes time and effort, but it is well worth it. By following these five steps, you can establish a strong financial foundation for your business and secure the financing you need to grow and succeed.

Related: 5 Tips for Securing the Business Credit You Need to Start and Scale Your Business

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Jose Rodriguez

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February 21, 2023
At 55 years old, I will have worked for 30 years — what are the pros and cons of retiring at that age?

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Dear MarketWatch,

I currently own one home, no mortgage with rental income. I own another home that will be paid off the year I turn 55. Both valued at $750,000. I have a 401(k) and other stocks and investments totaling another $750,000. My debt will be all paid by the year I turn 55.

I have been on my job for 27 years. It will be 30 years when I’m 55. What are the disadvantages and advantages of not working after 55 years of age?

See: ‘I will work until I die’ — I’m 74, have little money saved and battle medical issues. ‘I want to retire so I can have a few years to enjoy life.’

Dear reader,

It is completely understandable that you would want to retire after working for 30 years, especially when you have rental income, but I would caution you to take this decision very seriously and find a few backup plans.

One big pro of waiting until 55 is the fact that you get to withdraw from your current 401(k) at that age. It’s called the Rule of 55, and not everyone knows about it. Usually, savers have to wait until they’re 59 ½ years old in order to take distributions from their retirement accounts, such as 401(k) plans and IRAs. An early distribution incurs a 10% penalty, plus taxes.

The Rule of 55 gives workers a break if they want to tap into their 401(k) and have separated from their current job for any reason.

But you probably don’t want to tap into that 401(k) — or at least, you shouldn’t want to do that.

Also see: We have $1.6 million but most is locked in our 401(k) plans — how can we retire early without paying so much in taxes?

If you stop working at 55, you’re halting a major source of income. Rental property is great, and having no mortgage over your head is a huge plus, but will it be enough to cover your everyday expenses and the unexpected for decades to come? Retirement isn’t what it used to be — people are living longer, which means every dollar you have for retirement needs to last until you die. If you retire at 55, you could potentially be in retirement for 30 years — or more. Do you think your nest egg and any other sources of income, like Social Security and rental income, could cover you for that long?

Some people would say $750,000 in a retirement account is more than enough, but others would argue it is not. Of course, it also depends on what your annual expenses are, what future spending could look like if you were to fall ill or need to change something from your current lifestyle. And do you have any other money set aside for various circumstances, like repairs on either of your homes?

You could look to see what other sources of income may look like (for example, what can you expect from Social Security?) but you should still find a few backup plans for income so that you’re not sweating it out later in life. Not to be a Debbie Downer, but rental income may not be enough to make ends meet or keep you from distributing too much from your retirement accounts. Also, do you have money set aside to offset your costs if your property is vacant for a little while?

Check out MarketWatch’s column “Retirement Hacks” for actionable pieces of advice for your own retirement savings journey

Also, don’t forget about healthcare. If you’re not married to a spouse who has health insurance through an employer, what would you do? Medicare eligibility starts at age 65, which means you would need your own health insurance for an entire decade, and that can be quite expensive.

Instead of retiring fully, is there another job you may be happier working? Or some type of part-time gig you could take on? A huge bonus would be if this job comes with health benefits, as well as another retirement account you could keep putting money into until you’re ready to fully retire.

I know this may not have been the answer you wanted to hear, but it’s absolutely worth considering every possible good and bad thing that could come out of retiring early. But as with everything else in life, you need to strike a balance — finding work you can do that brings in an income, while also enjoying your life now. It’s not easy, but it’s worth it to plan this out a bit more before you celebrate the big 55.

Readers: Do you have suggestions for this reader? Add them in the comments below.

Have a question about your own retirement savings? Email us at HelpMeRetire@marketwatch.com

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February 19, 2023
I’m a single dad maxing out my retirement accounts and earning $100,000 – how do I make the most of my retirement dollars?

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Dear MarketWatch,

I make over $100,000 a year, and expect to for the foreseeable future. As of now, I am contributing 8% of my income to my 403(b) with a 3% 401(a) match; all Roth. It would be more, but I am maxing out a Roth IRA and an HSA as well each year. I am a single father with a 9-year-old daughter, and do not have plans to marry, so I’m planning everything as single. I expect house to be paid off when I (plan to anyway) retire at age 65. I plan to collect Social Security at 67.

My question is, should I move my 403(b) & 401(a) income to pretax dollars, since I expect to be in a lower tax bracket echelon once I retire? Or leave it at Roth. I’m hoping for some advice on what would generally be the most prudent option to maximize retirement dollars.

See: I’m a 39-year-old single dad with $600,000 saved – I want to retire at 50 but don’t know how. What should I do?

Dear reader,

First, congratulations on maxing out your Roth IRA and HSA and contributing to your other retirement accounts — managing that while being a single dad and paying off a home is no simple task.

You’ve asked the age-old retirement planning question: should I be investing in a traditional account, or a Roth? For readers unaware, traditional accounts are invested with pretax dollars, and the money is taxed at withdrawal in retirement. Roth accounts are invested with after-tax dollars upon deposit, and then withdrawn tax-free (if investors follow the rules as far as how and when to take the money, such as after the account has been opened for five years and the investor is 59 ½ years old or older).

As you know, the rule of thumb for choosing between a Roth and a traditional account comes down to taxes. If you’re in a lower tax bracket, advisers will typically suggest opting for a Roth as you’ll be paying taxes at a lower rate now versus a potentially higher one later. For a traditional, you may be better off if you’re in your peak earning years and expect to drop a tax bracket or more at the time of withdrawal.

One of the greatest challenges, however, is knowing future tax brackets. You may think you’ll be in a lower one now, but you can’t be sure. We also don’t know what tax rates might even look like when you get to retirement. The current tax rates are expected to increase in 2026, when the brackets from the Tax Cuts and Jobs Act are set to expire. Congress may do something before that, or after of course.

Check out MarketWatch’s column ‘Retirement Hacks’ for actionable advice for your own retirement savings journey

That being said, if you believe you’ll be in a lower tax bracket in retirement, it doesn’t hurt to have some of your money go in a traditional account. Having tax diversification can really work in your favor, too. It allows you more control and freedom when retirement does come, as you’ll be able to choose which accounts you withdraw from and how to save the most on taxes. The more options, the better.

You should do your best to crunch the numbers now, and then make a plan to do it every year or so until you get to retirement. Here’s one calculator that can help.

Make estimates where you have to, and factor in inflation — I’m sure we’ve all seen how inflation can impact personal finances in the last year alone. There are a few other things you can do to make these calculations. For example, get a sense of what your Social Security income may be by creating an account with the Social Security Administration, which will show you what you could expect to receive in benefits at various claiming ages. Also add in any other income you may get, like a pension.

After you calculate what you expect to spend in retirement, you can figure out what your withdrawal needs will be — and how that will impact your taxable income depending on if the money comes from a traditional or Roth account. Remember: Withdrawals from Roths do not increase your taxable income, whereas traditional account investments do when taken out.

Keep in mind, Roth IRAs have one really great advantage over traditional accounts — they are not subject to required minimum distributions, which is when investors must withdraw money from the account if they haven’t yet done so by the mandatory age. Traditional employer-sponsored plans, like 401(k) and 403(b) plans, are subjected to an RMD. Roth employer-sponsored plans have also had an RMD, though the Secure Act 2.0, which Congress passed at the end of 2022, eliminates the RMD for Roth workplace plans beginning in 2024. (The Secure Act 2.0 also pushed the age up for RMDs to 73 this year, and age 75 in 2033.)

Also see: We want to retire in a few years, and have about $1 million saved. Should I move my money to a Roth, and pay off my $200,000 mortgage while I’m at it?

Traditional versus Roth accounts are just one piece of the puzzle in retirement planning, though. There are many other questions you need to ask yourself, and a financial planner if you’re interested and able to work with one. For example, what rates of return are you anticipating on your investments, and how are your investments allocated? What state do you live in now and will that change in retirement (that will affect your taxes). Are you concerned about leaving behind an inheritance, and have you considered life insurance? And even before you get to retirement, as a single dad, do you have a will, healthcare proxy and disability insurance in the event something unfortunate happens?

I know this may feel overwhelming, especially when you’re taking into account calculations and estimates for years and years from now, but it will all be worth it. Consider working with a qualified financial planner, or talking to someone at the firm that houses your investments, and don’t feel obligated to stick with whatever you choose until you retire. As with many things in life, retirement plans tend to change and adapt as you do.

Have a question about your own retirement savings? Email us at HelpMeRetire@marketwatch.com

Readers: Do you have suggestions for this reader? Add them in the comments below.

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February 18, 2023
My fiancé and I are 60. His adult daughter is opposed to our marriage — and insists on inheriting her father’s $3.2 million estate. How should we handle her?

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What advice would you give to a widow and widower considering marriage on how to manage finances — and deal with adult children?

We are both 60 years old and plan to work a few more years, mostly for health insurance. We both have about $1.5 million in retirement savings accounts. Our spouses’ 401(k)s and IRAs rolled into our accounts.

I have another $500,000 in a brokerage and he has almost another $1 million. We both own homes with $300,000 mortgages. Mine is worth $500,000, Paul’s (not his real name) home is worth $1 million. We have no other debt.

We both have one married, and one unmarried child that we help. We both have two grandchildren.

We should be set up very well. Here’s the concern: His married, well-off daughter is very aggressive about inheritance. She wants the family home retitled in a trust. She wants all life insurance and brokerage beneficiaries in her name. Her brother has had drug-addiction problems, so she’s cutting him out even though it seems he’s the one who will need help.

“‘She wants the family home retitled in a trust. She wants all life insurance and brokerage beneficiaries in her name.’”

The daughter isn’t thrilled about our relationship and suggests we just live together. For religious reasons, I would never do this. Grandma shacking up? What example would I set for my grandchildren?

As a widowed couple, we are realistic enough to plan for the time one of us is left alone. Paul has diabetes, high blood pressure and already sees a cardiologist. What if he has a heart attack? Stroke? Or if he dies?

What’s a fair way to mingle finances and allow security for me should he predecease me while allowing Paul’s daughter to ultimately inherit?

By the way, my children have never raised money as an issue. After we both cared for spouses through cancer, they know life is short and just want us to be happy.

Happy to Have Found Love Again

Dear Happy,

She is overstepping the line, and overplaying her hand.

The first rule of inheritance is that it’s not yours until the decedent’s money is sitting in your bank account. Your fiancé’s daughter can make all the demands she likes, but the only thing your fiancé has to do is say, “You don’t need to be concerned. My affairs are all in order. I’ve always taken care of my own affairs, and I am not changing now.”

How your fiancé decides to split his estate is entirely up to him, and can be done in consultation with a financial adviser and attorney, taking into account each of his children’s individual needs. For instance, if you move in together, he could give you a life estate, allowing you to live in the home for the rest of your life, and dividing the property between his two children thereafter.

Given that you have your own home, however, you may decide to rent it out, and move back there in the event that he predeceases you. There are so many ways to split an inheritance. You could look at the intestate laws of your state, and follow them. In New York, the spouse inherits the first $50,000 of intestate property, plus half of the balance, and the kids inherit the rest.

“Paul” may decide to set up a trust for his son, so he can provide an income for him over the course of his life. If he has or had issues with addiction, this will help him while not putting temptation in his way with a lump sum of money. The best kind of trust is the one that deals with any recurring issues directly, and takes into account the person’s circumstances.

Martin Hagan, a Pennsylvania-based estate-planning attorney who has practiced for four decades, writes: “First, it would authorize distributions only if the beneficiary is actively pursuing treatment and recovery. Second, it would limit distributions to paying only for the expenses incurred in carrying out the treatment plan that will have been developed for the beneficiary.”

You have $2 million collectively in a retirement and brokerage account and $200,000 equity in his home, and you can use these next seven years or so to pay off your mortgage, while your fiancé has $2.5 million and $700,000 in equity on his home. You are both well set up for retirement, and let’s hope you have many years to spend together.

The financial services industry has many opinions. You should, advisers say, have 10 times your salary saved by the time you’re 65 years old. You don’t mention your salary, but I would be surprised if many people in America had that much money saved, especially given all of the unexpected events — divorce, illness, job loss — that can occur in the intervening years.

You also have other priorities than dealing with an aggressive daughter/daughter-in-law. AARP suggests that most people should look into long-term care insurance between the ages of 60 and 65, around the time most people are eligible to qualify for Medicare. If you do it earlier, it can serve as a savings account in the event that you never need long-term care, AARP says.

As retirement columnist Richard Quinn recently wrote on MarketWatch, everybody’s circumstances are different. “Living in retirement isn’t about averages. It isn’t about what other people do or the opinions of experts, especially online instant experts who don’t know anything about you and have yet to experience many years of retirement themselves.”

Don’t give too much oxygen or power to your future daughter-in-law. Her father should give her a stock answer, and be firm. If she persists, he can say, “The subject is closed. I need you to respect the decisions I make about my own life, respect my privacy on these matters, and it would be nice if you would be happy for us, and support us in our marriage together.”

You can’t change people. But you can change wills.

You can email The Moneyist with any financial and ethical questions related to coronavirus at qfottrell@marketwatch.com, and follow Quentin Fottrell on Twitter.

Check out the Moneyist private Facebook group, where we look for answers to life’s thorniest money issues. Readers write in to me with all sorts of dilemmas. Post your questions, tell me what you want to know more about, or weigh in on the latest Moneyist columns.

The Moneyist regrets he cannot reply to questions individually.

More from Quentin Fottrell:

My boyfriend wants me to move into his home and pay rent. I suggested only paying for utilities and groceries. What should I do?

My dinner date ‘forgot’ his wallet and took the receipt for his taxes. Should I have called him out for being cheapskate?

My boyfriend lives in my house with my 2 kids, but refuses to pay rent or contribute to food and utility bills. What’s my next move?

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February 18, 2023
Look for stocks to lose 30% from here, says strategist David Rosenberg. And don’t even think about turning bullish until 2024.

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David Rosenberg, the former chief North American economist at Merrill Lynch, has been saying for almost a year that the Fed means business and investors should take the U.S. central bank’s effort to fight inflation both seriously and literally.

Rosenberg, now president of Toronto-based Rosenberg Research & Associates Inc., expects investors will face more pain in financial markets in the months to come.

“The recession’s just starting,” Rosenberg said in an interview with MarketWatch. “The market bottoms typically in the sixth or seventh inning of the recession, deep into the Fed easing cycle.” Investors can expect to endure more uncertainty leading up to the time — and it will come — when the Fed first pauses its current run of interest rate hikes and then begins to cut.

Fortunately for investors, the Fed’s pause and perhaps even cuts will come in 2023, Rosenberg predicts. Unfortunately, he added, the S&P 500
SPX,
-0.61%
could drop 30% from its current level before that happens. Said Rosenberg: “You’re left with the S&P 500 bottoming out somewhere close to 2,900.”

At that point, Rosenberg added, stocks will look attractive again. But that’s a story for 2024.

In this recent interview, which has been edited for length and clarity, Rosenberg offered a playbook for investors to follow this year and to prepare for a more bullish 2024. Meanwhile, he said, as they wait for the much-anticipated Fed pivot, investors should make their own pivot to defensive sectors of the financial markets — including bonds, gold and dividend-paying stocks.

MarketWatch: So many people out there are expecting a recession. But stocks have performed well to start the year. Are investors and Wall Street out of touch?

Rosenberg: Investor sentiment is out of line; the household sector is still enormously overweight equities. There is a disconnect between how investors feel about the outlook and how they’re actually positioned. They feel bearish but they’re still positioned bullishly, and that is a classic case of cognitive dissonance. We also have a situation where there is a lot of talk about recession and about how this is the most widely expected recession of all time, and yet the analyst community is still expecting corporate earnings growth to be positive in 2023.

In a plain-vanilla recession, earnings go down 20%. We’ve never had a recession where earnings were up at all. The consensus is that we are going to see corporate earnings expand in 2023. So there’s another glaring anomaly. We are being told this is a widely expected recession, and yet it’s not reflected in earnings estimates – at least not yet.

There’s nothing right now in my collection of metrics telling me that we’re anywhere close to a bottom. 2022 was the year where the Fed tightened policy aggressively and that showed up in the marketplace in a compression in the price-earnings multiple from roughly 22 to around 17. The story in 2022 was about what the rate hikes did to the market multiple; 2023 will be about what those rate hikes do to corporate earnings.

“ You’re left with the S&P 500 bottoming out somewhere close to 2,900. ”

When you’re attempting to be reasonable and come up with a sensible multiple for this market, given where the risk-free interest rate is now, and we can generously assume a roughly 15 price-earnings multiple. Then you slap that on a recession earning environment, and you’re left with the S&P 500 bottoming out somewhere close to 2900.

The closer we get to that, the more I will be recommending allocations to the stock market. If I was saying 3200 before, there is a reasonable outcome that can lead you to something below 3000. At 3200 to tell you the truth I would plan on getting a little more positive.

This is just pure mathematics. All the stock market is at any point is earnings multiplied by the multiple you want to apply to that earnings stream. That multiple is sensitive to interest rates. All we’ve seen is Act I — multiple compression. We haven’t yet seen the market multiple dip below the long-run mean, which is closer to 16. You’ve never had a bear market bottom with the multiple above the long-run average. That just doesn’t happen.

David Rosenberg: ‘You want to be in defensive areas with strong balance sheets, earnings visibility, solid dividend yields and dividend payout ratios.’

Rosenberg Research

MarketWatch: The market wants a “Powell put” to rescue stocks, but may have to settle for a “Powell pause.” When the Fed finally pauses its rate hikes, is that a signal to turn bullish?

Rosenberg: The stock market bottoms 70% of the way into a recession and 70% of the way into the easing cycle. What’s more important is that the Fed will pause, and then will pivot. That is going to be a 2023 story.

The Fed will shift its views as circumstances change. The S&P 500 low will be south of 3000 and then it’s a matter of time. The Fed will pause, the markets will have a knee-jerk positive reaction you can trade. Then the Fed will start to cut interest rates, and that usually takes place six months after the pause. Then there will be a lot of giddiness in the market for a short time. When the market bottoms, it’s the mirror image of when it peaks. The market peaks when it starts to see the recession coming. The next bull market will start once investors begin to see the recovery.

But the recession’s just starting. The market bottoms typically in the sixth or seventh inning of the recession, deep into the Fed easing cycle when the central bank has cut interest rates enough to push the yield curve back to a positive slope. That is many months away. We have to wait for the pause, the pivot, and for rate cuts to steepen the yield curve. That will be a late 2023, early 2024 story.

MarketWatch: How concerned are you about corporate and household debt? Are there echoes of the 2008-09 Great Recession?

Rosenberg: There’s not going to be a replay of 2008-09. It doesn’t mean there won’t be a major financial spasm. That always happens after a Fed tightening cycle. The excesses are exposed, and expunged. I look at it more as it could be a replay of what happened with nonbank financials in the 1980s, early 1990s, that engulfed the savings and loan industry. I am concerned about the banks in the sense that they have a tremendous amount of commercial real estate exposure on their balance sheets. I do think the banks will be compelled to bolster their loan-loss reserves, and that will come out of their earnings performance. That’s not the same as incurring capitalization problems, so I don’t see any major banks defaulting or being at risk of default.

But I’m concerned about other pockets of the financial sector. The banks are actually less important to the overall credit market than they’ve been in the past. This is not a repeat of 2008-09 but we do have to focus on where the extreme leverage is centered.

Read: The stock market is wishing and hoping the Fed will pivot — but the pain won’t end until investors panic

It’s not necessarily in the banks this time; it is in other sources such as private equity, private debt, and they have yet to fully mark-to-market their assets. That’s an area of concern. The parts of the market that cater directly to the consumer, like credit cards, we’re already starting to see signs of stress in terms of the rise in 30-day late-payment rates. Early stage arrears are surfacing in credit cards, auto loans and even some elements of the mortgage market. The big risk to me is not so much the banks, but the nonbank financials that cater to credit cards, auto loans, and private equity and private debt.

MarketWatch: Why should individuals care about trouble in private equity and private debt? That’s for the wealthy and the big institutions.

Rosenberg: Unless private investment firms gate their assets, you’re going to end up getting a flood of redemptions and asset sales, and that affects all markets. Markets are intertwined. Redemptions and forced asset sales will affect market valuations in general. We’re seeing deflation in the equity market and now in a much more important market for individuals, which is residential real estate. One of the reasons why so many people have delayed their return to the labor market is they looked at their wealth, principally equities and real estate, and thought they could retire early based on this massive wealth creation that took place through 2020 and 2021.

Now people are having to recalculate their ability to retire early and fund a comfortable retirement lifestyle. They will be forced back into the labor market. And the problem with a recession of course is that there are going to be fewer job openings, which means the unemployment rate is going to rise. The Fed is already telling us we’re going to 4.6%, which itself is a recession call; we’re going to blow through that number. All this plays out in the labor market not necessarily through job loss, but it’s going to force people to go back and look for a job. The unemployment rate goes up — that has a lag impact on nominal wages and that is going to be another factor that will curtail consumer spending, which is 70% of the economy.

“ My strongest conviction is the 30-year Treasury bond. ”

At some point, we’re going to have to have some sort of positive shock that will arrest the decline. The cycle is the cycle and what dominates the cycle are interest rates. At some point we get the recessionary pressures, inflation melts, the Fed will have successfully reset asset values to more normal levels, and we will be in a different monetary policy cycle by the second half of 2024 that will breathe life into the economy and we’ll be off to a recovery phase, which the market will start to discount later in 2023. Nothing here is permanent. It’s about interest rates, liquidity and the yield curve that has played out before.

MarketWatch: Where do you advise investors to put their money now, and why?

Rosenberg: My strongest conviction is the 30-year Treasury bond
TMUBMUSD30Y,
3.674%.
The Fed will cut rates and you’ll get the biggest decline in yields at the short end. But in terms of bond prices and the total return potential, it’s at the long end of the curve. Bond yields always go down in a recession. Inflation is going to fall more quickly than is generally anticipated. Recession and disinflation are powerful forces for the long end of the Treasury curve.

As the Fed pauses and then pivots — and this Volcker-like tightening is not permanent — other central banks around the world are going to play catch up, and that is going to undercut the U.S. dollar
DXY,
+0.70%.
There are few better hedges against a U.S. dollar reversal than gold. On top of that, cryptocurrency has been exposed as being far too volatile to be part of any asset mix. It’s fun to trade, but crypto is not an investment. The crypto craze — fund flows directed to bitcoin
BTCUSD,
+0.35%
and the like — drained the gold price by more than $200 an ounce.

“ Buy companies that provide the goods and services that people need – not what they want. ”

I’m bullish on gold
GC00,
+0.22%
– physical gold — bullish on bonds, and within the stock market, under the proviso that we have a recession, you want to ensure you are invested in sectors with the lowest possible correlation to GDP growth.

Invest in 2023 the same way you’re going to be living life — in a period of frugality. Buy companies that provide the goods and services that people need – not what they want. Consumer staples, not consumer cyclicals. Utilities. Health care. I look at Apple as a cyclical consumer products company, but Microsoft is a defensive growth technology company.

You want to be buying essentials, staples, things you need. When I look at Microsoft
MSFT,
-0.61%,
Alphabet
GOOGL,
-1.79%,
Amazon
AMZN,
-1.17%,
they are what I would consider to be defensive growth stocks and at some point this year, they will deserve to be garnering a very strong look for the next cycle.

You also want to invest in areas with a secular growth tailwind. For example, military budgets are rising in every part of the world and that plays right into defense/aerospace stocks. Food security, whether it’s food producers, anything related to agriculture, is an area you ought to be invested in.

You want to be in defensive areas with strong balance sheets, earnings visibility, solid dividend yields and dividend payout ratios. If you follow that you’ll do just fine. I just think you’ll do far better if you have a healthy allocation to long-term bonds and gold. Gold finished 2022 unchanged, in a year when flat was the new up.

In terms of the relative weighting, that’s a personal choice but I would say to focus on defensive sectors with zero or low correlation to GDP, a laddered bond portfolio if you want to play it safe, or just the long bond, and physical gold. Also, the Dogs of the Dow fits the screening for strong balance sheets, strong dividend payout ratios and a nice starting yield. The Dogs outperformed in 2022, and 2023 will be much the same. That’s the strategy for 2023.

More: ‘It’s payback time.’ U.S. stocks have been a no-brainer moneymaker for years — but those days are over.

Plus: ‘The Nasdaq is our favorite short.’ This market strategist sees recession and a credit crunch slamming stocks in 2023.

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February 6, 2023
PayPal to lay off 7% of employees as part of cost-cutting push

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PayPal Holdings Inc. plans to lay off about 7% of its staff as it continues with broader efforts to reduce costs.

Chief Executive Dan Schulman announced the layoffs, which will affect about 2,000 PayPal PYPL employees, in an email to the staff Tuesday afternoon.

“While we have made substantial progress in right-sizing our cost structure,…

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January 31, 2023
UBS posts better-than-expected profit, as wealth-management unit brings in $23.3 billion in new client money

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UBS Group AG on Tuesday reported a surprise rise in fourth-quarter profit as its wealth-management arm attracted billions in new client money, offsetting a slump at its investment bank amid macroeconomic headwinds.

The Swiss bank
UBS,
-0.75%

UBSG,
-2.80%
reported a net profit of $1.65 billion in the three months to the end of December, up from $1.35 billion for the same period a year earlier.

Revenue was $8.03 billion compared with $8.71 billion in the fourth quarter of 2021.

It meant the Zurich-based bank beat 4Q estimates of net profit of $1.28 billion and revenue at $7.98 billion, according to analysts’ consensus provided by the company.

UBS said it took on $23.3 billion in net new fee-generating assets at its key wealth-management business in the quarter, at a time when its local rival Credit Suisse Group AG had struggled with client withdrawals.

Profit before tax at wealth management jumped 88% to $1.06 billion, it added.

It also attracted $25 billion in net new money at its asset-management business, UBS said.

But at its investment bank, profit before tax tumbled to around $100 million, down 84%, as dealmaking slumped.

The bank cited persistent inflation, rapid central bank tightening, the Ukraine war, and geopolitical tensions that affected asset-pricing levels and investor sentiment in the year.

“While the macroeconomic outlook remains uncertain, our operational resilience, capital strength and capital generation put us in a great position to serve our clients, fund growth and deliver strong capital returns to shareholders,” Chief Executive Ralph Hamers said.

Its common equity tier 1 ratio, a measure of financial strength, at the end of December was 14.2%, down from 14.4% at the third quarter.

The company said it would propose a dividend of $0.55 for 2022, a 10% year-on-year increase.

The lender added that it would remain committed to a progressive dividend and expects to repurchase more than $5 billion of shares in 2023, after $5.6 billion in 2022.

Write to Ed Frankl at edward.frankl@dowjones.com

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January 30, 2023
U.S. consumer sentiment strengthens in final January reading

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The numbers: U.S. consumer sentiment improved in late January to 64.9, according to the University of Michigan’s gauge of consumer attitudes.

This added 5.2 index points from 59.7 in December and was up from the initial January reading of 64.6.

Economists surveyed by The Wall Street Journal had forecast an unchanged reading of 64.6.

Key details: A gauge of consumer’s views of current conditions rose to a final reading of 68.4 in January from 59.4 in the prior month.

The indicator of expectations for the next six months rose to 62.7 from 59.9 in December.

Americans viewed that inflation was moderating in January. They expected the inflation rate in the next year to average about 3.9%, down from 4.4% in December. This is the lowest level since April 2021.

In the longer run, inflation expectations held steady at 2.9%.

Big picture: Consumer confidence rose for the second straight month on lower energy prices and better financial market conditions. Assessments of personal finances are improving, supported by higher income and easing price pressures.

But sentiment remains well below the pre-pandemic level of 101 hit in February 2020 and the more recent high of 88.3 hit in April 2021.

Market reaction: Stocks
DJIA,
-0.20%

SPX,
-0.17%
opened higher on Friday. The yield on the 10-year Treasury note
TMUBMUSD10Y,
3.534%
rose to 3.54%.

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January 27, 2023
6 cheap stocks that famed value-fund manager Bill Nygren says can help you beat the market

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These are tricky times in the stock market, so it pays to look to the best stock-fund managers for guidance on how to behave now. Veteran value investor Bill Nygren belongs in this camp, because the Oakmark Fund OAKMX he co-manages consistently and substantially outperforms its peers.

That isn’t easy, considering how many fund managers fail to do so. Nygren’s fund beats its Morningstar large-cap value index and category by more than four percentage points annualized over the past three years. It also outperforms at five and…

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January 25, 2023
This dividend-stock ETF has a 12% yield and is beating the S&P 500 by a substantial amount
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Most investors want to keep things simple, but digging a bit into details can be lucrative — it can help you match your choices to your objectives.

The JPMorgan Equity Premium Income ETF
JEPI,
+0.20%
has been able to take advantage of rising volatility in the stock market to beat the total return of its benchmark, the S&P 500
SPX,
+1.19%,
while providing a rising stream of monthly income.
The objective of the fund is “to deliver a significant portion of the returns associated with the S&P 500 Index with less volatility,” while paying monthly dividends, according to JPMorgan Asset Management. It does this by maintaining a portfolio of about 100 stocks selected for high quality, value and low price volatility, while also employing a covered-call strategy (described below) to increase income.

This strategy might underperform the index during a bull market, but it is designed to be less volatile while providing high monthly dividends. This might make it easier for you to remain invested through the type of downturn we saw last year.

JEPI was launched on May 20, 2020, and has grown quickly to $18.7 billion in assets under management. Hamilton Reiner, who co-manages the fund with Raffaele Zingone, described the fund’s strategy, and its success during the 2022 bear market and shared thoughts on what may lie ahead.

Outperformance with a smoother ride

First, here’s a chart showing how the fund has performed from when it was established through Jan. 20, against the SPDR S&P 500 ETF Trust
SPY,
+1.20%,
both with dividends reinvested:

JEPI has been less volatile than SPY, which tracks the S&P 500.

FactSet

Total returns for the two funds since May 2020 pretty much match, however, JEPI has been far less volatile than SPY and the S&P 500. Now take a look at a performance comparison for the period of rising interest rates since the end of 2021:

Rising stock-price volatility during 2022 helped JEPI earn more income through its covered call option strategy.

FactSet

Those total returns are after annualized expenses of 0.35% of assets under management for JEPI and 0.09% for SPY. Both funds have had negative returns since the end of 2021, but JEPI has been a much better performer.

““Income is the outcome.””

— Hamilton Reiner

The income component

Which investors JEPI is designed for? “Income is the outcome,” Reiner responded. “We are seeing a lot of people using this as an anchor tenant for income-oriented portfolios.”

The fund quotes a 30-day SEC yield of 11.77%. There are various ways to look at dividend yields for mutual funds or exchange-traded funds and the 30-day yield is meant to be used for comparison. It is based on a fund’s current income distribution profile relative to its price, but the income distributions that investors actually receive will vary.

It turns out that over the past 12 months, JEPI’s monthly distributions have ranged between 38 cents a share and 62 cents a share, with a rising trend over the past six months. The sum of the past 12 distributions has been $5.79 a share, for a distribution yield of 10.53%, based on the ETF’s closing price of $55.01 on Jan. 20.

JEPI invests at least 80% of assets in stocks, mainly selected from those in the S&P 500, while also investing in equity-linked notes to employ a covered call option strategy which enhances income and lowers volatility. Covered calls are described below.

Reiner said that during a typical year, investors in JEPI should expect monthly distributions to come to an annualized yield in the “high single digits.”

He expects that level of income even if we return to the low-interest rate environment that preceded the Federal Reserve’s cycle of rate increases that it started early last year to push down inflation.

JEPI’s approach may be attractive to investors who don’t need the income now. “We also see people using it as a conservative equity approach,” Reiner expects the fund to have 35% less price volatility than the S&P 500.

Getting back to income, Reiner said JEPI was a good alternative even for investors who were willing to take credit risk with high-yield bond funds. Those have higher price volatility than investment-grade bond funds and face a higher risk of losses when bonds default. “But with JEPI you don’t have credit risk or duration risk,” he said.

An example of a high-yield bond fund is the iShares 0-5 Year High Yield Corporate Bond ETF
SHYG,
-0.10%.
It has a 30-day yield of 7.95%.

When discussing JEPI’s stock selection, Reiner said “there is a significant active component to the 90 to 120 names we invest in.” Stock selections are based on recommendations of JPM’s analyst team for those that are “most attractively priced today for the medium to long term,” he said.

Individual stock selections don’t factor in dividend yields.

Covered call strategies and an example of a covered-call trade

JEPI’s high income is an important part of its low-volatility total-return strategy.

A call option is a contract that allows an investor to buy a security at a particular price (called the strike price) until the option expires. A put option is the opposite, allowing the purchaser to sell a security at a specified price until the option expires.

A covered call option is one an investor can write when they already own a security. The strike price is “out of the money,” which means it is higher than the stock’s current price.

Here’s an example of a covered call option provided by Ken Roberts, an investment adviser with Four Star Wealth Management in Reno, Nev.
- You bought shares of 3M Co.
  MMM,
  +1.63%
  on Jan. 20 for $118.75.
- You sold a $130 call option with an expiration date of Jan. 19, 2024.
- The premium for the Jan. 24, $130 call was $7.60 at the time that MMM was selling for $118.75.
- The current dividend yield for MMM is 5.03%.
- “So the maximum gain for this trade before the dividend is $18.85 or 15.87%. Add the divided income and you’ll get 20.90% maximum return,” Roberts wrote in an email exchange on Jan. 20.
If you had made this trade and 3M’s shares didn’t rise above $130 by Jan. 19, 2024, the option would expire and you would be free to write another option. The option alone would provide income equivalent to 6.40% of the Jan. 20 purchase price in the period of a year.

If the stock rose above $130 and the option were exercised, you would have ended up with the maximum gain as described by Roberts. Then you would need to find another stock to invest in. What did you risk? Further upside beyond $130. So you would have written the option only if you had decided you would be willing to part with your shares of MMM for $130.

The bottom line is that the call option strategy lowers volatility with no additional downside risk. The risk is to the upside. If 3M’s shares had doubled in price before the option expired, you would still wind up selling them for $130.

JEPI pursues the covered call options strategy by purchasing equity-linked notes (ELNs) which “combine equity exposure with call options,” Reiner said. The fund invests in ELNs rather than writing its own options, because “unfortunately option premium income is not considered bona fide income. It is considered a gain or a return of capital,” he said.

In other words, the fund’s distributions can be better reflected in its 30-day yield, because option income probably wouldn’t be included.

One obvious question for a fund manager whose portfolio has increased quickly to almost $19 billion is whether or not the fund’s size might make it difficult to manage. Some smaller funds pursuing narrow strategies have been forced to close themselves to new investors. Reiner said JEPI’s 2% weighting limitation for its portfolio of about 100 stocks mitigates size concerns. He also said that “S&P 500 index options are the most liquid equity products in the world,” with over $1 trillion in daily trades.

Summing up the 2022 action, Reiner said “investing is about balance.” The rising level of price volatility increased options premiums. But to further protect investors, he and JEPI co-manager Raffaele Zingone also “gave them more potential upside by selling calls that were a bit further out of the money.”

Don’t miss: These 15 Dividend Aristocrat stocks have been the best income builders
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January 23, 2023
Crypto lender Genesis latest to file for bankruptcy as crypto contagion continues to spread

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Embattled crypto lender Genesis announced that it had filed for bankruptcy late Thursday, the latest firm to be taken amid a widespread rout among crypto companies driven by plunging prices and charges of fraud at major players like FTX.

Genesis, which froze customer withdrawals in November following the collapse of FTX, filed for Chapter 11 bankruptcy protection in federal court in Manhattan for its lending units, saying it was the best way for it to achieve “an optimal outcome for Genesis clients.”

“While we have made significant progress refining our business plans to remedy liquidity issues caused by the recent extraordinary challenges in our industry, including the default of Three Arrows Capital and the bankruptcy of FTX, an in-court restructuring presents the most effective avenue through which to preserve assets and create the best possible outcome for all Genesis stakeholders,” said Derar Islim, Genesis’ interim chief executive, in a statement on the company’s website.

According to its bankruptcy filing, Genesis’ lending unit said it had both assets and liabilities in the range of $1 billion to $10 billion and had over 100,000 creditors. The firm said it had about $150 million in cash on hand to support its operations during restructuring.

Among those creditors is Gemini, the crypto exchange founded by twin brothers Cameron and Tyler Winklevoss in 2014, that had $900 million of its customers’ money tied up with Genesis.

Genesis was the main partner of Gemini’s “earn” program, in which its retail investors received payments for allowing their crypto assets to be loaned out to others.

Cameron Winklevoss welcomed Genesis’ bankruptcy filing, saying it would provide Gemini a better venue for getting its clients’ money back.

“We will use every tool available to us in the bankruptcy court to maximize recovery for Earn users and any other parties within the bankruptcy court’s jurisdiction,” he wrote in a post on Twitter.

Both Genesis and Gemini were charged by the Securities and Exchange Commission last week with illegally selling securities to investors through the Earn program.

Genesis and its parent company, Digital Currency Group, had said they were seeking outside investment to help bolster the books and pay customers back in the months before filing for bankruptcy.

As part of its restructuring, Genesis said it would seek to possibly sell the company and also continue to look for additional investment.

Shares of bitcoin
BTCUSD,
+0.12%
were little changed at just above $20,000. There have been some concerns that the announcement of another crypto bankruptcy could unravel a recent recovery for the No. 1 cryptocurrency, up 25% so far in 2023. That puts it back above levels seen before FTX imploded last November.

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January 19, 2023
Why the U.S. debt-ceiling is worrying stock and bond investors

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The U.S. Treasury Department began taking “extraordinary measures” on Thursday to keep the federal government current on its bills, while giving Congress more time to come up with a debt ceiling deal.

Those special measures allow the Treasury to keep paying its bills, including paying holders of government debt what they are due, while also, for now, continuing the issuance of bills and notes as scheduled in the near $24 trillion Treasury market, the world’s biggest debt market, to replace maturing debt.

“There’s constant maturities and constant new issuance,” said Jim Vogel, an interest-rate strategist at FHN Financial, in an interview Thursday. “Until the Treasury calls a halt to auctions they go on as normal.”

In part, new note auctions on deck will replace maturing bonds issued years ago, which should help give confidence to investors that the U.S. government intends to fully repay principal and interest, as promised. It also helps bide time for Congress to strike a deal to increase or suspend the existing debt limit.

“Your early warning system is when 6-month bills get cheaper,” Vogel said, adding that a wobble in that part of the Treasury market could signal worries by investors that top lawmakers could fail to reach a debt ceiling deal by this summer, which could then raise the threat level of a U.S. government default.

What’s next in the U.S. debt limit standoff

The U.S. debt limit was first set in 1917, and already has been increased or suspended 102 times since World War II, according to David Kelly, chief global strategist at JP Morgan Funds, in a recent client note.

The government had been approaching its current debt limit of $31.385 trillion, prompting Treasury Secretary Janet Yellen on Thursday to deploy special measures to keep the government current on its bills, including making payments to bondholders, in moves she outlined a week ago.

Kelly said the Treasury has leeway to make adjustments to postpone “our real rendezvous with disaster” potentially until June, but that from an economic and financial perspective a U.S. default would be “an unmitigated disaster.”

Tax payments due to the U.S. government from corporations and households this spring also factor into the bigger debt-limit picture, while also influencing the final deadline for Congress to avoid an default on America’s debt.

“We are coming up to the March corporate tax day,” said Steven Ricchiuto, U.S. chief economist at Mizuho Securities, by phone Thursday. “That could boost the Treasury’s balances,” he said, while also noting the influx from taxes last was higher than anticipated.

Why investors are focusing on the debt ceiling now

With the ultimate showdown likely months away there are no discernible ripples in financial markets right now, but investors and analysts do seem to be paying much closer attention to the threat at a much earlier date than in past episodes, market watchers said.

Blame the intraparty battle between House Republicans that saw Kevin McCarthy elected speaker on Jan. 7 after a historic 15 ballots – and only after agreeing to a series of concessions to a small group of far-right conservatives.

Investors are “talking about it early because it came on the heels of a very difficult election of the speaker of the House and the sense that there’s now much more leverage that a few members of Congress may have to force this crisis that’s more likely to hit later in the summer,” said Christopher Smart, chief global strategist at Barings and head of the Barings Investment Institute, in a phone interview.

Some recent history underscores the concern. It took all of then-Speaker John Boehner’s political capital – “and then some” – to finally secure a vote among the Republican caucus on raising the debt limit during a similar showdown in 2011, Smart noted, observing that Boehner had “much more leeway” than McCarthy.

“So if there are five or more members who won’t vote” on raising the limit “without certain conditions being met,” it’s easy to imagine potentially ugly scenarios that could rattle markets, he said.

What’s at stake

Former Federal Reserve Bank of New York President Bill Dudley said Thursday in an interview with Bloomberg that a U.S. default would be a “huge blow” to markets, but also that a contingency plan exits if it happens.

“The way it works is if you actually run out of money, the Treasury will decide what payments to present to the Fed,” Dudley said. “Presumably, the Treasury will decide to prioritize debt repayment and interest payments, so there isn’t a technical default. The Fed will basically honor the payments the Treasury present.”

The Fed also could step in to shore up market functioning in the Treasury market, if needed.

“What we saw in 2011 is that the Treasury market got stronger until we got close to the deadline,” Dudley said. “People don’t want to buy Treasury bills that are maturing right around the time the debt limit could be binding.”

As a result of a 2011 debt-ceiling standoff, credit rating firm Standard & Poor’s downgraded the U.S. credit ratings to AA from AAA.

U.S. stocks declined for a third straight day on Thursday, with the Dow Jones Industrial Average
DJIA,
-0.76%
losing 252.40 points, or 0.8%, while the S&P 500
SPX,
-0.76%
shed 0.8% and the Nasdaq Composite Index
COMP,
-0.96%
dropped 1%.

—Greg Robb contributed reporting to this article.

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January 19, 2023
I ruined my family’s finances by withdrawing from my 401(k) to buy a house – I regret it

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I recently made a panic decision to withdraw all my money from one retirement account and I am now closing on a house in February (about $200,000). I am 36 years old, married and have a 1-year-old. Half of me is regretting it, and I’m worried about next year’s taxes due to the withdrawal and the 10% penalty I paid.

I have been saving up money with my family in order to buy our first home. Recently, however, interest rates have risen, making me worry that this window to get an affordable house was closing. In a fit of panic, I withdrew all of our $26,000 saved money from my 401(k), putting it in a high-yield savings account (3.75%). We have now chosen a home and will be using around $18,000 of this money for the down payment.

I am now worried that I might have to pay income taxes and a penalty for the withdrawal itself. I am extremely anxious over this situation as I feel I have destroyed our family’s financial future and that we cannot afford to pay taxes on the money I withdrew.

My main concern or question is, is there a way to tell the IRS that this money is being used toward a house? Retroactively?

See: I’m a single dad maxing out my retirement accounts and earning $100,000 – how do I make the most of my retirement dollars?

Dear reader,

The first thing you need to do: Take a breath. Most decisions should not be made in a panic, especially when involving money.

Because you withdrew from your 401(k), yes, you will have to pay taxes and a penalty. Had it been a loan, you’d have to pay interest on what you borrowed, but it would be to your own account. Keep in mind however that loans from your employer-based retirement plans are also risky – if you were to separate from your job, for whatever reason, you’d be responsible to pay it back or it would be treated as a distribution.

I understand your sense of urgency in wanting to buy a home during a more favorable market, but your time now should be spent on getting yourself financially situated and saving for the future.

“I wouldn’t advise this or done it this way, but he’s not stuck and it’s not detrimental – it’s just a tough lesson to learn,” said Jordan Benold, a certified financial planner at Benold Financial Planning.

Get very serious about your current finances and find a way to earmark a portion of your income to savings if at all possible. There are a few things you should be doing.

First, assess how much you will be paying in taxes and penalties. I’m not sure what your tax bracket is, but did this distribution push you into a higher tax bracket? You can use a calculator or talk to an accountant to see what that withdrawal will incur in taxes – then make sure you can pay it, or talk to the Internal Revenue Service about an extension. There are penalties for failing to file your taxes or pay them, and you don’t want to add that on top of your stress.

Also see: We have 25 years until retirement and are saving 25% of our income – are we doing it right? And are we saving too much?

The IRS may not be able to do anything for you in terms of waiving those penalties – though it doesn’t hurt to ask, even if you have to wait on the phone for a while to talk to someone – but communication and attention to detail are key when it comes to your taxes. Getting an IRS agent on the phone and talking through your situation won’t be time wasted. There are so many rules, and an agent can help make sense of your options.

Read: The days of IRS forgiveness for RMD mistakes may soon be over

Once you get that sorted, look extremely carefully at whatever money you have coming in and what’s going out. You’re about to close on a home, and that costs money – not just the home itself, but all of the extras associated with closing. You may also need money for insurance, furniture, any repairs and so on if you haven’t factored that in yet, so fit that into your budget for when you sign the papers. Beyond that, list every expense you expect to have for the next 12 months – home insurance and taxes, a mortgage or utilities, groceries, medicine, any other nonnegotiable costs and add it all up. Don’t forget anything – ask your partner if there’s anything you may have forgotten.

Then compare it to your income. Are you under? Are you over? What changes can you make without totally draining your happiness? I always advocate for a balance…yes, in some cases you have to omit a few expenses for the time being when building up an emergency savings account or paying down debt, but don’t completely rob yourself of joy or all of your hard work may backfire. If you really need to buckle down, make a separate list of activities and entertainment you can get for free (or as close to free as possible)—walks in the park or on the beach with your partner and child, museums on free days, pot lucks and at-home movie nights with family and friends and so on.

Want more actionable tips for your retirement savings journey? Read MarketWatch’s “Retirement Hacks” column

Earmark a portion of your income to replenish your retirement savings before you try saving for any other goals. (This is separate from an emergency savings account, however – you should have one of those.) You may do that with payroll deductions in your 401(k), or also by allocating some of your savings to an IRA outside of the 401(k).

Take some time to learn the rules of your retirement plans. For example, an IRA allows an investor to take $10,000 out of the account penalty-free if it’s for a first-time home purchase (whereas a 401(k) does not have that exception). It may be too late for that, but there are other perks with various retirement accounts.

The 401(k) has a higher contribution limit and also comes with the possibility of employer matches (if your company offers it), whereas an IRA allows for penalty-free withdrawals for college. With a traditional IRA, you’d have to pay taxes on the withdrawal, whereas with a Roth IRA you’ve already paid the taxes and won’t have to pay any more for withdrawing from your contributions (you may have to pay taxes on the earnings portion, so follow distribution rules closely).

Remember – you don’t want to make distributions from your retirement savings for just anything. You can borrow money for a home or college, but you can’t borrow money for retirement, so it’s important to protect those accounts. Familiarize yourself with the pros and cons of all accounts so that you can maximize your savings and diversify your withdrawal options when you finally get to retirement.

So just buckle down, get yourself in order and think of the future. “He’s got plenty of time – 30 to 40 years to work,” Benold said. “This might be a distant memory that he hopes he can forget.”

Have a question about your own retirement savings? Email us at HelpMeRetire@marketwatch.com

Readers: Do you have suggestions for this reader? Add them in the comments below.

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January 17, 2023
Dow closes up more than 100 points as earnings season begins, stocks book best week of gains in 2 months
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U.S. stocks finished higher Friday, as investors weighed a flurry of bank earnings results for the fourth quarter and fresh data on consumer sentiment and inflation expectations.

All three major benchmarks also booked their best weekly percentage gains since Nov. 11, according to Dow Jones Market Data.
How stock indexes traded

The Dow Jones Industrial Average
DJIA,
+0.33%
rose 112.64 points, or 0.3%, to close at 34,302.61.

The S&P 500
SPX,
+0.40%
added 15.92 points, or 0.4%, to finish at 3,999.09.

The Nasdaq Composite
COMP,
-1.10%
gained 78.05 points, or 0.7%, to end at 11,079.16.

For the week, the Dow rose 2%, the S&P 500 advanced 2.7% and the Nasdaq gained 4.8% gain.

Read: Goldman Sachs sees these ‘prospective’ total returns across assets in 2023

What drove markets

Major stock indexes posted their best week of gains in two months on Friday after companies began reporting their fourth-quarter results, with big banks kicking off the earnings season.

No big surprises have come from the banks’ earnings results so far, with Bank of America Corp. and JPMorgan Chase & Co. indicating a potentially mild recession this year, according to Anthony Saglimbene, chief market strategist at Ameriprise Financial.

“I think the base case for most of the market right now is that we’re going to see a mild recession,” Saglimbene said in a phone interview Friday. “I don’t think anything that was said across bank earnings today surprised investors.”

Typically, the release of megabank earnings marks the unofficial start of the U.S. earnings reporting season, and market analysts will be watching closely this quarter for indications of how America’s largest companies are bracing for an expected economic downturn driven by higher interest rates.

JPMorgan
JPM,
+2.52%,
Bank of America
BAC,
+2.20%,
Wells Fargo & Co.
WFC,
+3.25%
and Citigroup
C,
+1.69%
were among banks that reported their fourth-quarter earnings Friday. JPMorgan was the top performer in the Dow Jones Industrial Average, with its shares closing 2.5% higher, FactSet data show.

Read: JPMorgan, Wells Fargo, Bank of America and Citi beat earnings expectations, but worries about ‘headwinds’ remain

Earnings will continue to be a “big focus” for markets this month, according to Saglimbene. “Analysts took down estimates pretty aggressively in the fourth quarter,” he said. “So the bar is pretty low for companies. We’ll see if they can hurdle past that.”

In U.S. economic data released Friday, the University of Michigan consumer sentiment index climbed in January to its highest level in nine months, as expectations for the rate of inflation one year out moderated.

“Signs that inflation has peaked and is moderating slowly kind of eases some of the anxiety that we’re going to see runaway inflation this year,” said Saglimbene.

A reading from the consumer-price index on Thursday showed U.S. inflation fell in December. Many investors are expecting that the Federal Reserve will slow its pace of interest rate hikes this year as the cost of living has cooled.

Read: Inflation slows again and clears path for slower Fed rate hikes

Stocks on Thursday pushed higher after St. Louis Federal Reserve Bank President James Bullard said the probability of a soft landing for the economy has increased due to “encouraging” inflation data.

Read: Why the stock market isn’t impressed with the first monthly decline in consumer prices in more than 2 years

Steve Sosnick, chief strategist at Interactive Brokers, said by phone Friday that he still favors consumer-staples stocks and companies with “more steady streams than more cyclical streams” of income. “If you’re looking at an economy that’s likely to slow down, it’s really hard for me to think that somehow ‘the cyclicals’ will be immune from the economic cycle,” he said.

Read: Why earnings season could be a ‘market-moving event’

Companies in focus

JPMorgan
JPM,
+2.52%
shares gained 2.5% after reporting fourth-quarter earnings and revenue before the bell that topped Wall Street expectations. The bank said a mild recession is now the “central case.”

Wells Fargo
WFC,
+3.25%
shares rose 3.3% after reporting falling profits, as it was hit by a recent settlement and the need to build reserves.

Bank of America
BAC,
+2.20%
shares gained 2.2% after reporting earnings per share of 85 cents last quarter, above the 77 cents a share expected by analysts. Revenue also beat expectations. However, the bank’s net interest income fell slightly below expectations despite jumping interest rates.

Delta Air Lines Inc.
DAL,
-3.54%
reported fourth-quarter profit and revenue before the bell that beat expectations. Shares of the airline fell 3.5%.

Tesla Inc.
TSLA,
-0.94%
shares fell after the company cut prices in the U.S. and Europe again, according to listings on the company’s website Thursday night. Tesla finished down 0.9%.

Shares of UnitedHealth Group Inc.
UNH,
-1.23%
dropped 1.2% after the health-insurance giant shared its results.

BlackRock Inc.
BLK,
+0.00%
shares closed about flat after the asset-management giant reported a decline in fourth-quarter results.

—Barbara Kollmeyer contributed to this article.
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January 13, 2023

Tesla is a ‘soft landing’ stock, says Goldman Sachs. Here are its picks for a gentle economic landing and stocks for a recession.

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Pour one out for the beleaguered economists, who for once got an important indicator, the consumer price index, right on the nose, after CPI fell 0.1% in December, while core prices rose 0.3%.

“The 2021 surge in durable goods demand normalized, and the resulting collapse in durable goods price inflation was stunningly fast,” says Paul Donovan, chief economist of UBS Global Wealth Management.

“The commodity wave of inflation is fading, and that leaves the profit margin expansion in focus,” he adds. What a good time for earnings season to be upon us, and what do you know, it is, kicking off with the banking sector on Friday before broadening out next week.

Strategists at Goldman Sachs have a new note out, saying that the market is pricing in a soft landing even though the trend of earnings revisions points to a hard landing.

They’re not that optimistic — even in the soft-landing scenario, the team led by David Kostin say the S&P 500
SPX,
+0.40%
will end the year right around current levels, at 4,000. But they identify 46 stocks that could benefit — profitable, cyclical companies that are trading at price-to-earnings valuations below their 10-year median, among other factors.

One name jumps out: Tesla
TSLA,
-0.94%,
which trades at 22 times forward earnings versus the 10-year median of 117 times. But the other 45 names are less flashy, ranging from Capital One
COF,
+1.81%
and Carlyle Group
CG,
+0.54%,
to a host of industrials including 3M
MMM,
+0.12%,
Parker-Hannifan
PH,
+0.73%
and Otis Worldwide
OTIS,
+0.42%.
As a whole, these typically $10 billion companies are trading at 12 times earnings, versus 17 times usually.

In the hard landing scenario, S&P 500 profit margins would shrink by 125 basis points, to 10.9% — about in line with the median peak-to-trough decline during the eight recessions since 1970, which has been 132 basis points. Consensus expectations are for a 26 basis-point margin decline.

The Goldman team also have a 36 stock screen for a hard landing — profitable companies in defensive industries with a positive dividend yield. They’re typically food, beverage and tobacco companies as well as software and services companies — including Costco Wholesale
COST,
+0.58%,
Kroger
KR,
-0.99%,
Altria
MO,
+0.48%,
Tyson Foods
TSN,
+0.23%,
Microsoft
MSFT,
+0.30%,
MasterCard
MA,
-1.13%
and Visa
V,
-0.25%.
As a whole, these $37 billion companies are trading at 22 times earnings vs. a historical 24 times.

The market

After a 2.3% advance for the S&P 500
SPX,
+0.40%
over the last three sessions, U.S. stock futures
ES00,
+0.39%

NQ00,
+0.58%
declined on Friday.

The yield on the Japanese 10-year bond
TMBMKJP-10Y,
0.511%
exceeded 0.5%, the Bank of Japan’s yield cap, ahead of next week’s rate decision , prompting a second day of aggressive bond purchases from the central bank.

For more market updates plus actionable trade ideas for stocks, options and crypto, subscribe to MarketDiem by Investor’s Business Daily.

The buzz

Fourth-quarter earnings were rolling out from Bank of America
BAC,
+2.20%,
JPMorgan Chase
JPM,
+2.52%,
Citigroup
C,
+1.69%
and Wells Fargo
WFC,
+3.25%,
and outside of banks, Delta Air Lines
DAL,
-3.54%,
BlackRock
BLK,
+0.00%
and UnitedHealth
UNH,
-1.23%.

JPMorgan shares slumped after forecast-beating earnings, though investment bank revenue came in light of estimates. Delta shares also declined after topping earnings estimates.

Tesla
TSLA,
-0.94%
cut prices of Model 3 and Model Y vehicles in the U.S. and elsewhere by up to 20%. The electric vehicle maker stock dropped 6%.

Virgin Galactic
SPCE,
+12.34%
surged after saying it’s on track to launch space-tourism flights in the second quarter.

Apple
AAPL,
+1.01%
says CEO Tim Cook requested, and received, a pay cut after investor criticism.

The University of Michigan’s consumer-sentiment index is due at 10 a.m. Eastern, and Minneapolis Fed President Neel Kashkari and Philadelphia Fed President Patrick Harker are due to speak.

Tyler Winklevoss said charges by the Securities and Exchange Commission brought about Gemini Trust for allegedly offering unregistered securities were “super lame” as it seeks to unfreeze $900 million in investor assets.

Best of the web

There’s a bull market in swearing on corporate earnings calls.

The West is now preparing to send tanks to Ukraine in what could be another escalation of its conflict with Russia, which on Friday claimed victory in the eastern town of Soledar.

A look back at photos of Lisa Marie Presley, who died at age 54.

Top tickers

Here were the most active stock-market tickers as of 6 a.m. Eastern.

Ticker	Security name
BBBY, -30.15%	Bed Bath & Beyond
TSLA, -0.94%	Tesla
GME, -0.68%	GameStop
AMC, +0.80%	AMC Entertainment
MULN, -8.59%	Mullen Automotive
NIO, -0.08%	Nio
APE, -2.56%	AMC Entertainment preferreds
AAPL, +1.01%	Apple
SPCE, +12.34%	Virgin Galactic
AMZN, +2.99%	Amazon.com

Random reads

Like a scene out of “Stranger Things” — there’s uproar after new restrictions on the Hasbro
HAS,
+0.21%
game Dungeons & Dragons.

Starting next month, Starbucks
SBUX,
+1.30%
rewards will be less generous for most items, though iced coffee will be easier to get.

Need to Know starts early and is updated until the opening bell, but sign up here to get it delivered once to your email box. The emailed version will be sent out at about 7:30 a.m. Eastern.

Listen to the Best New Ideas in Money podcast with MarketWatch reporter Charles Passy and economist Stephanie Kelton.

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January 13, 2023

JPMorgan stock down 3.7% as CEO Dimon warns of headwinds

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JP Morgan Chase & Co.
JPM,
-0.10%
said Friday it had net income of $11.0 billion, or $3.57 a share, in the fourth quarter, up from $10.4 billion, or $3.33 a share, in the year-earlier period. Revenue rose to $34.547 billion from $29.257 billion a year ago. The FactSet consensus was for EPS of $3.08 and revenue of $34.353 billion. Net interest income rose 48% to $20.3 billion. Noninterest revenue fell 8% to $15.3 billion, driven by lower investment banking fees amid a dearth of deals, lower management and performance fees in AWM, lower operating lease income in auto and lower net production revenue in home lending amid higher interest rates. The bank’s loan loss provisions came to $2.3 billion, reflecting an addition of $1.4 billion and net charge-offs of $887 million. “The U.S. economy currently remains strong with consumers still spending excess cash and businesses healthy. However, we still do not know the ultimate effect of the headwinds coming from geopolitical tensions including the war in Ukraine, the vulnerable state of energy and food supplies, persistent inflation that is eroding purchasing power and has pushed interest rates higher, and the unprecedented quantitative tightening,” Chief Executive Jamie Dimon said in a statement. The stock fell 3.7% premarket and is down 17% in the last 12 months, while the Dow Jones Industrial Average has fallen 5%.

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January 13, 2023
Genesis, Winklevoss twins’ Gemini crypto venture charged by SEC with selling unregistered securities

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U.S. securities regulators on Thursday charged Genesis Global Capital and crypto exchange Gemini Trust Co. with offering and selling of unregistered securities to retail investors, bypassing disclosures and other requirements aimed at protecting market participants.

Genesis and Gemini raised billions of dollars’ worth of crypto assets from hundreds of thousands of investors through unregistered offers, using a crypto asset-lending program called Gemini Earn, the Securities and Exchange Commission said.

The complaint seeks the return of any “ill-gotten gains” plus interest, and any civil penalties, the SEC said.

The SEC is also investigating whether other securities-law violations were committed and whether there are other companies or people relating to the alleged misconduct.

Twins Tyler and Cameron Winklevoss are the founders of Gemini. The crypto exchange was sued late last year by investors alleging that the company sold interest-bearing accounts without registering them as securities, also through the Gemini Earn program.

Also read: Gemini’s Cameron Winklevoss accuses crypto exec Barry Silbert of ‘bad faith’ stalling over frozen funds

The Winklevoss twins were early champions of cryptocurrencies, using the money and fame they won in legal wrangling with Facebook parent Meta Platforms Inc.
META,
+2.87%
and Meta’s founder Mark Zuckerberg over their role in creating the social-media giant to launch Gemini.

According to the SEC complaint, the Gemini Earn agreement between Genesis, part of a subsidiary of Digital Currency Group, and Gemini started in December 2020.

Gemini customers, including U.S. retail investors, were to have an opportunity to loan their crypto assets to Genesis in exchange for Genesis’ promise to pay a high interest rate.

Gemini deducted agent fees that were as high as 4.29%, the SEC alleges.

“Genesis then exercised its discretion in how to use investors’ crypto assets to generate revenue and pay interest to Gemini Earn investors,” the SEC said.

By November, however, Genesis announced it would not allow the Gemini Earn investors to withdraw their crypto assets because of a liquidity crunch following volatility in the crypto market after FTX’s bankruptcy filing, the SEC said.

At the time, Genesis held about $900 million in investor assets from 340,000 Gemini Earn investors, the SEC said. Gemini ended the Gemini Earn program earlier this month.

“As of today, the Gemini Earn retail investors have still not been able to withdraw their crypto assets,” the SEC said in a statement.

“We allege that Genesis and Gemini offered unregistered securities to the public, bypassing disclosure requirements designed to protect investors,” SEC Chair Gary Gensler said in a statement.

The charges “build on previous actions to make clear to the marketplace and the investing public that crypto-lending platforms and other intermediaries need to comply with our time-tested securities laws,” Gensler said.

The SEC’s complaint was filed in the U.S. District Court for the Southern District of New York.

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January 12, 2023
Federal Reserve – MarketWatch

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St. Louis Fed’s Bullard calls latest inflation data ‘encouraging’

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January 12, 2023

Tag: credit

1. Get an Employer Identification Number (EIN)

2. Open a business bank account

3. Register your business with business credit bureaus

4. Establish trade lines

5. Use credit wisely

Dear Happy,

David Rosenberg: ‘You want to be in defensive areas with strong balance sheets, earnings visibility, solid dividend yields and dividend payout ratios.’

Outperformance with a smoother ride

JEPI has been less volatile than SPY, which tracks the S&P 500.

Rising stock-price volatility during 2022 helped JEPI earn more income through its covered call option strategy.

The income component

Covered call strategies and an example of a covered-call trade

What’s next in the U.S. debt limit standoff

Why investors are focusing on the debt ceiling now

What’s at stake

How stock indexes traded

What drove markets

Companies in focus

The market

The buzz

Best of the web

Top tickers

Random reads