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  • Having a credit card with trip insurance could save you thousands on your next vacation | CNN Underscored

    Having a credit card with trip insurance could save you thousands on your next vacation | CNN Underscored

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    CNN
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    CNN Underscored reviews financial products such as credit cards and bank accounts based on their overall value. We may receive a commission through the LendingTree affiliate network if you apply and are approved for a card, but our reporting is always independent and objective. Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.

    Everyone is in need of that next big vacation, but before you go ahead and click the “book now” button, you’ll want to make sure you’re using a credit card that will cover you in case something unfortunate happens. Many people are unaware that some credit cards include various travel insurance benefits, which could come in handy during your next trip. For instance, if you ever need to cancel your trip because you get sick, or if your flight is delayed and you have to stay the night at a hotel, the right credit card can have you covered.

    Knowing the ins and outs of these travel insurance protections and which credit card provides what coverage could potentially save you a boatload of money. Hopefully you’ll never have to use these benefits, but if you do, your wallet could be pleasantly surprised.

    Credit card travel protections are not the same thing as travel insurance, which is a broad policy you can buy to cover a specific trip or series of trips. The travel protections that come on eligible credit cards are tailored to cover specific issues you might encounter on a trip. There are typically seven different benefits that credit cards can potentially cover — here’s a quick explanation of each type of coverage:

    Trip cancellation and interruption insurance: If you need to cancel a covered trip or if your covered trip is interrupted in the middle of travel due to illness, injury, weather or terrorist incident, this coverage will reimburse you for your nonrefundable expenses related to the delay cancellation. There are a number of exclusions, so you’ll need to read the fine print of your particular credit card for details.

    In regards to the coronavirus pandemic, this is where your credit card can help you out. If you fall ill with coronavirus and need to cancel your trip or cut it short as a result, you can file a claim with your credit card if it has trip cancellation or interruption coverage. The same coverage also applies if a quarantine is imposed by a physician due to coronavirus, or if an authoritative power imposes travel restrictions.

    However, if you choose to cancel a trip as a precautionary measure, this isn’t considered a covered event, and the travel insurance on your credit card most likely won’t reimburse you for your lost expenses.

    Trip delay insurance: If your common carrier (meaning an airine, bus, cruise ship or train) is delayed for a certain number of hours due to a covered reason, such as weather or mechanical issues, you can be reimbursed for many eligible out-of-pocket expenses, such as meals, transportation, lodging and toiletries.

    Lost luggage reimbursement: If your carrier loses or damages your carry-on or checked luggage, you’ll be reimbursed up to a maximum amount.

    Baggage delay reimbursement: If your checked baggage is delayed for a certain number of hours, you’ll be reimbursed up to a maximum amount per day for eligible essentials, such as clothing and toiletries.

    Rental car insurance: Many credit cards offer rental car damage coverage, which allows you to waive some of the pricey insurance policies offered by car rental agencies.

    Some cards offer what’s known as “secondary” car rental insurance, which means your credit card coverage will only kick in after any other insurance coverage takes place, such as your own personal auto policy. Other credit cards offer “primary” car rental insurance, meaning you don’t have to worry about filing a claim with anyone else first.

    Travel accident insurance: If you (or in some cases, your immediate family members) suffer an accidental death or dismemberment during travel, your beneficiary can make a claim for coverage on credit cards with this policy.

    Emergency evacuation insurance: If you’re injured or become sick during a trip far from home that results in an emergency evacuation, you’ll be covered for eligible medical services and transportation.

    Chase Sapphire Reserve: Best overall for travel protections
    Chase Sapphire Preferred Card: Best travel protections with a low annual fee
    The Platinum Card® from American Express: Best for earning flexible rewards
    United Club Infinite Card: Best for United flyers
    Delta SkyMiles® Reserve American Express Card: Best for Delta flyers
    Bank of America® Premium Rewards® credit card: Best for earning cash back
    Ink Business Preferred Credit Card: Best for business travelers

    Here’s a look at the specific travel protections that are available on each of these credit cards:

    Trip cancellation / trip interruption Trip delay Lost luggage Baggage delay Rental car Travel accident Emergency evacuation
    Chase Sapphire Reserve Yes Yes Yes Yes Yes Yes Yes
    Chase Sapphire Preferred Yes Yes Yes Yes Yes Yes No
    American Express Platinum Yes Yes Yes No Yes Yes Yes
    United Club Infinite Card Yes Yes No Yes Yes No No
    Delta SkyMiles Reserve Amex Yes Yes Yes No Yes Yes Yes
    Bank of America Premium Rewards Yes Yes Yes Yes Yes No Yes
    Ink Business Preferred Yes Yes Yes Yes Yes Yes No

    Let’s dive into the details of each of these cards and see which one might be the best choice for you when you’re booking a trip in 2022.

    If travel insurance is one of your top priorities when it comes to a credit card, the Chase Sapphire Reserve is the best choice out there. In fact, it’s the only card that offers all seven types of coverage mentioned in the chart above. And across those categories, it offers top-of-the-line insurance and generous reimbursement caps.

    Where this card really stands out is in its trip delay coverage. If your mode of transportation is delayed for six hours or more, the coverage kicks in immediately. On many credit cards that offer this protection, the coverage doesn’t apply until your transportation is delayed for 12 hours or more — or only when it requires an overnight stay.

    So if you were supposed to fly out in the morning, but your flight gets delayed seven hours to late in the afternoon, the Chase Sapphire Reserve will cover food for you in the interim, along with your traveling spouse or domestic partner and all traveling dependents under the age of 22. That could save you quite a bit of money on expenses you weren’t planning for.

    The Chase Sapphire Reserve also shines with its emergency evacuation and transportation insurance. This benefit will cover you for up to $100,000 in medical services or transportation. Many other cards don’t even offer this protection — or cover you for a lower amount. But if you do find you need to use this coverage, call the benefits administrator immediately, as they will need to approve and coordinate your evacuation.

    And while it’s a benefit you hope you never have to use, the Sapphire Reserve will insure you for up to $1,000,000 in the case of accidental death or dismemberment. Every other card on our list that offers this coverage only insures you to up to half the amount.

    Despite the Chase Sapphire Reserve truly having it all, its $550 annual fee isn’t something to balk at. But it’s a small price to pay to get so many protections on every trip you pay for with the card. And once you take into consideration the $300 yearly travel credit, Priority Pass Select lounge access and other benefits, your net out-of-pocket cost for being a card holder is relatively low.

    Read CNN Underscored’s review of the Chase Sapphire Reserve.
    Learn more and apply for the Chase Sapphire Reserve.

    The Chase Sapphire Preferred is only a slight step down from the Chase Sapphire Reserve — it includes most of the same travel insurance protections, just not to the same extent. But the annual fee on this card is significantly lower at just $95 per year.

    Sapphire Preferred card holders get the same trip interruption and cancellation coverage as the Sapphire Reserve — up to $10,000 per person and $20,000 per trip if your trip is halted or canceled for a covered reason. You’ll be reimbursed for any prepaid, nonrefundable travel expenses, such as airfare, tours and hotels. This will even cover you if you’re sick — just make sure to get a doctor’s note.

    Other travel protections are also comparable between the two cards, but the main difference is that to be eligible for trip delay insurance with the Chase Sapphire Preferred, your flight needs to be delayed at least 12 hours — or require an overnight stay — and there’s no emergency evacuation coverage.

    Additionally, the auto rental collision damage insurance on the Chase Sapphire Preferred is primary coverage but will only cover you for up to the actual cash value of the rental car. Conversely, the maximum on the Sapphire Reserve is $75,000, which could potentially cover damage beyond the car itself in the event of an accident.

    Read CNN Underscored’s review of the Chase Sapphire Preferred.
    Learn more and apply for the Chase Sapphire Preferred.

    The travel insurance benefits on the Amex Platinum card were improved at the start of 2020, which means you’ll now have even more protection on your next vacation.

    The Amex Platinum has the same trip cancellation and interruption insurance as the Chase cards, but with one limitation — you are limited up to $10,000 per trip and a maximum limit of $20,000 per eligible card per 12 consecutive month period. This shouldn’t be a problem for most travelers, but if you find yourself canceling trips regularly, you’ll want to use a different card. Neither the Amex Platinum nor the Chase cards cover voluntary cancellations.

    You’ll also get trip delay insurance with the Amex Platinum, up to $500 per ticket, and to be eligible, your trip only has to be delayed by six hours or more. You’re limited to a maximum of two claims per card in a 12-month period, but unlike the cancellation and interruption coverage, this is a benefit you might find yourself using somewhat often — especially if you travel often.

    Where this card falls short is that its car rental insurance only provides secondary coverage, so if you have an accident, you’ll first need to file a claim with any other insurance providers — such as your own personal auto insurance company — before this insurance kicks in. It’s much easier to have a card that offers primary coverage, though having some sort of protection is better than no protection at all.

    You'll have secondary car rental coverage on your Amex Platinum card if an accident occurs.

    The Amex Platinum also carries a $695 annual fee (see rates and fees), but it comes with many luxury perks such as airport lounge access — including the very popular American Express Centurion Lounges — elite hotel status, elite car rental status, monthly Uber Cash credits, airline incidental fee credits and credits for purchases at Saks Fifth Avenue.

    Read CNN Underscored’s review of the Amex Platinum Card.
    Learn more and apply for the Amex Platinum Card.

    The United Club Infinite Card doesn’t offer as many travel protections as some of the other high-end cards on our list. But if you’re flying United and want to reap the travel benefits of using the airline’s premium credit card, you’ll still receive a number of important protections with this card.

    Trip cancellation and trip interruption insurance both come with the United Club Infinite Card, as well as primary car rental insurance. You’ll also get trip delay reimbursement coverage, although travel must be delayed at least 12 hours or require an overnight stay to apply.

    The United Club Infinite Card also offers baggage delay reimbursement, which means if your bags are delayed in getting to your final destination by six hours or more, you can be reimbursed for essential toiletries and clothing until your bags arrive, up to $100 per day. However, you can only submit a claim for the first three days with this card, while many other cards provide reimbursement for up to five days.

    Despite not covering every travel protection on the list, the United Club Infinite Card also comes with United Club membership, a $100 statement credit for Global Entry or TSA Precheck and the ability to check your first and second bag for free when flying United, and it earns 4 miles for every dollar you spend on United purchases.

    Learn more and apply for the United Club Infinite Card.

    The Delta Reserve Amex comes with the exact same travel insurance protections as the Amex Platinum card. This means you’ll have access to trip cancellation and trip interruption insurance, trip delay reimbursement, lost luggage reimbursement, secondary auto rental collision damage insurance, travel accident insurance and emergency evacuation coverage.

    If you have a medical emergency during your trip, the Delta Reserve Amex has emergency evacuation coverage.

    But, if you’re a regular Delta flyer, you may want to have the Delta Reserve Amex over the American Express Platinum for its Delta perks, especially since it carries a lower $550 annual fee (see rates and fees). In addition to the card’s travel protections, you’ll get complimentary access to Delta Sky Clubs and Amex Centurion Lounges when flying Delta, complimentary upgrades on Delta when available and your first checked bag free on Delta flights.

    Read CNN Underscored’s review of the Delta Reserve Amex.
    Learn more and apply for the Delta Reserve Amex.

    For those looking for a simple credit card that earns cash back but also comes with some basic travel insurance protections, the Bank of America Premium Rewards Credit Card could be your best option.

    Like all the other cards on our list, you’ll get trip cancellation and trip interruption insurance with the Bank of America Premium Rewards, although your coverage is significantly lower than what the other cards provide — up to $2,500 per person.

    Many other cards cover you for up to $10,000 per person, so if your trips are typically on the expensive side, you’ll probably want to pick another card. But most travelers will find the $2,500 maximum more than sufficient.

    You’ll also be covered for essentials with the card if your trip is delayed by 12 hours or more (or requires an overnight stay) and if your luggage is lost or delayed. The card also has secondary auto rental collision damage insurance and provides emergency evacuation coverage.

    And when you’re not on the road, the Bank of America Premium Rewards card earns 2 points for every dollar you spend on travel and dining, and 1 point per dollar on everything else. Points can be redeemed for cash back at a rate of 1 cent apiece, and you can even increase those rates if you have status in Bank of America’s Preferred Rewards program.

    If you’re a business traveler who wants to keep all of your expenses on your business credit card, the Ink Business Preferred has you covered. You’ll find that the coverage on the Ink Business Preferred is almost exactly the same as the Chase Sapphire Preferred, which is great for a business card that only costs $95 a year.

    Related: Get a highest-ever bonus with these Chase business credit cards.

    The main difference between the Ink Business Preferred and other Chase credit cards is that while you’re insured if your trip is involuntarily interrupted or canceled, you’ll only be reimbursed for up to $5,000 per person and up to $10,000 per covered trip. Many other cards cover double that amount, but that’s typically only necessary if you’re booking a big, lavish trip.

    Other travel insurance protections on the Ink Business Preferred include trip delay insurance, baggage delay reimbursement, lost luggage reimbursement, primary auto rental collision damage waiver and travel accident insurance, all comparable to the protections on the personal Sapphire Preferred.

    Read CNN Underscored’s review of the Ink Business Preferred.
    Learn more and apply for the Ink Business Preferred.

    Make sure you book your trip with a credit card that has travel insurance protections to cover you if disaster strikes.

    With so many credit card travel insurance protections and the many nuances to each benefit, you’ll want to first consult with your credit card company to find out the exact coverage terms on your card. You might find that you’ll only be covered if your trip is over a certain number of miles from your home or a minimum number of days away — and in some cases, even a maximum number of days.

    Some credit cards also require that you pay for the trip entirely with your credit card, while other cards allow you to just put a portion of the trip on the respective card. In some cases, the rules can even differ across protections on the same card. But if you only need to put a portion of the trip cost on your card to be covered, you could use points or miles to pay for your trip and just put the taxes on the card.

    With the coronavirus pandemic dragging into 2021, it’s likely that travel may be touch and go for at least a portion of the upcoming year, and you’ll want to be protected if you have unanticipated issues before or during your trip. So before you book your 2022 — or even 2023 — travel, make sure you know what travel insurance protections are important to you, and use a credit card that will cover you in case the worst happens.

    Looking for a new credit card? Check out CNN Underscored’s list of the best credit cards currently available.

    Get all the latest personal finance deals, news and advice at CNN Underscored Money.

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  • Some Wells Fargo customers have already received their share of the $2 billion misconduct settlement. Here’s what you need to know

    Some Wells Fargo customers have already received their share of the $2 billion misconduct settlement. Here’s what you need to know

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    wdstock | iStock Editorial | Getty Images

    People owed a piece of the $2 billion that Wells Fargo has agreed to pay to customers affected by some of its banking practices could soon receive those funds.

    The nation’s fourth-largest bank reached a settlement with the Consumer Financial Protection Bureau, announced Tuesday, to resolve customer abuses related to auto lending, deposit accounts and mortgage lending, affecting about 16 million accounts.

    related investing news

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    Wells Fargo also agreed to pay a $1.7 billion civil penalty — the largest ever doled out by the CFPB.

    “We have already communicated with many of the customers who may have been impacted by the matters covered in the settlement, and those efforts are ongoing,” a Wells Fargo spokesperson told CNBC.

    Wells Fargo agrees to $3.7 billion settlement with CFPB over consumer abuses

    In other words, if you are among the affected customers, you may already have received your share of the $2 billion, or you will automatically hear from Wells Fargo. You do not need to take any action, the bank said.

    The CFPB said that customers of the bank were illegally assessed fees and interest charges on auto and mortgage loans, had their cars wrongly repossessed and had payments to auto and mortgage loans misapplied. Additionally, Wells Fargo charged consumers unlawful surprise overdraft fees and applied other incorrect charges to checking and savings accounts, and improperly froze some accounts, the CFPB said.

    $1.3 billion has already reached 11 million accounts

    More than 11 million customer accounts already have received more than $1.3 billion related to auto loan issues. Another 5 million customers with deposit accounts are receiving $500 million in remediation, including $205 million related to surprise overdraft fees, and thousands of customers with mortgages will receive a piece of at least $195 million, a CFPB spokesperson said.

    The amount that each harmed consumer will get (or already got) depends on the specifics. For customers whose vehicles were wrongly repossessed, the remediation includes $4,000, but could be higher. For deposit accounts that were wrongly frozen, the settlement calls for $150 for each affected customer.

    More from Personal Finance:
    Used car prices are down 3.3% from a year ago
    Key things to know about HSAs as you near retirement
    Reduce your 2022 tax bill with these last-minute moves

    “As we have said before, we and our regulators have identified a series of unacceptable practices that we have been working systematically to change and provide customer remediation where warranted,” said Charlie Scharf, Wells Fargo CEO, in the company’s press release about the settlement.

    “This far-reaching agreement is an important milestone in our work to transform the operating practices at Wells Fargo and to put these issues behind us,” Scharf said.

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  • 11 high-yield dividend stocks that are Wall Street’s favorites for 2023

    11 high-yield dividend stocks that are Wall Street’s favorites for 2023

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    Investors love dividend stocks but there are different ways to look at them, including various “quality” approaches. Today we are focusing on high yields.

    A high dividend yield can be a warning that investors have lost confidence in a company’s ability to maintain its dividend payout. But there are always exceptions, some of which can be brought about by market events — some investors remain skeptical of energy stocks, for example, after so much pain before this year’s outstanding performance for the sector.

    Below is a screen of stocks that have high dividend yields and are favored by analysts. The screen has no financial quality filters.

    For investors who are interested in dividend stocks but wish to focus on quality and total returns, this recent look at the S&P Dividend Aristocrats (companies that have raised dividends consistently for many years) might be of interest. For those looking for income but also worried about dividend cuts, here is a list of stocks with dividend yields of at least 5% whose payouts are expected to be well-covered by free cash flow in 2023.

    If you are looking for higher yields with moderate risk, you should at also learn about funds that use covered-call option strategies to enhance income.

    Removing the filters for a high-yield dividend-stock screen

    For a broad screen of stocks with high dividend yields that are favored by analysts, we began with the S&P Composite 1500 Index
    SP1500,
    +1.42%    ,
    which is made up of the S&P 500
    SPX,
    +1.42%    ,
    the S&P 400 Mid Cap Index
    MID,
    +1.48%    ,
    and the S&P 600 Small Cap Index
    SML,
    +1.49%    .

    The S&P indexes exclude energy partnerships, so we added the 15 stocks held by the Alerian MLP ETF
    AMLP,
    +1.81%
    to the list. Energy partnerships tend to have high distribution yields, in part because they pass most earnings through to investors. But they also can make tax preparation more complicated. They can also be volatile as oil
    CL00,
    +2.96%
    CL00 and natural-gas
    NG00,
    +1.58%
    prices swing.

    The S&P indexes also exclude business development companies, or BDCs, so we expanded our initial screen to include the 24 stocks held by the VanEck BDC income ETF
    BIZD,
    +0.76%    .
    BDCs are specialized leveraged lenders that make loans with high interest rates, mainly to middle-market companies. They often take equity stakes in the companies they lend to, for a venture-capital-type of investment style. The BDC space features several stocks with very high dividend yields, but is also known for volatility.

    You have been warned — this particular stock screen focuses only on high yields and favorable ratings among analysts working for brokerage firms. There is no look back at dividend cuts and no cash-flow analysis as featured in other dividend-stock articles. If you see anything of interest resulting from the screen, you need to do your own research to consider whether or not a long-term commitment to one or more of these companies is worth the risk as you seek high income.

    The screen

    Starting with the S&P Composite 1500 and the components of AMLP and BIZD, there are 68 stocks with dividend yields of at least 8%, according to data provided by FactSet.

    Among the 68 companies, 55 made the first screen, because they are covered by at least five analysts polled by FactSet.

    Among the 55 companies, 11 have “buy” or equivalent ratings among at least 70% of analysts.

    Here they are, ranked by upside potential implied by analysts’ consensus price targets:

    Company

    		 Ticker

    		 Dividend yield

    		 Share “buy” ratings

    		 Dec. 20 price

    		 Consensus price target

    		 Implied 12-month upside potential
    Energy Transfer LP

    		 ET,
    +2.35%         		9.08%

    		 95%

    		 $11.68

    		 $16.24

    		 39%
    Enterprise Products Partners LP

    		 EPD,
    +0.88%         		8.12%

    		 79%

    		 $23.39

    		 $31.69

    		 35%
    Barings BDC Inc.

    		 BBDC,
         		11.67%

    		 86%

    		 $8.14

    		 $10.75

    		 32%
    Redwood Trust Inc.

    		 RWT,
    +2.70%         		13.45%

    		 80%

    		 $6.84

    		 $8.92

    		 30%
    Crestwood Equity Partners LP

    		 CEQP,
    +0.78%         		9.75%

    		 100%

    		 $26.86

    		 $35.00

    		 30%
    KKR Real Estate Finance Trust Inc.

    		 KREF,
    +1.38%         		11.90%

    		 71%

    		 $14.45

    		 $18.50

    		 28%
    Owl Rock Capital Corp.

    		 ORCC,
    +0.38%         		11.21%

    		 91%

    		 $11.78

    		 $14.73

    		 25%
    Sixth Street Specialty Lending Inc.

    		 TSLX,
    +1.89%         		10.48%

    		 82%

    		 $17.18

    		 $20.90

    		 22%
    Oaktree Specialty Lending Corp.

    		 OCSL,
    -0.37%         		9.97%

    		 100%

    		 $6.77

    		 $7.75

    		 14%
    Ares Capital Corp.

    		 ARCC,
    +1.22%         		10.45%

    		 93%

    		 $18.38

    		 $20.87

    		 14%
    BlackRock TCP Capital Corp.

    		 TCPC,
    +1.76%         		10.25%

    		 71.43%

    		 $12.49

    		 $14.00

    		 12%
    Source: FactSet

    One way to begin your own research into any company listed here is to click on the ticker for more information.

    You should also read Tomi Kilgore’s detailed guide to the wealth of information available free on the MarketWatch quote page.

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  • As the cost of living skyrockets, nearly 1 in 3 adults rely on their parents for financial support

    As the cost of living skyrockets, nearly 1 in 3 adults rely on their parents for financial support

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    As the cost of living skyrockets, many adults are turning to a familiar safety net: mom and dad.

    Nearly a third of millennials and Gen Zers, over the age of 18, get financial support from their parents, according to a new survey by personal finance site Credit Karma. The site polled more than 1,000 adults in October.

    More than half of parents with adult children said their kids are living with them. Another 48% said they pay for their kids’ cell phone plan, car payments or other monthly bills. Nearly a quarter also said they provide their adult children with a regular allowance, pay some or all of their rent or have them as an authorized user on their credit card, the report found. 

    “What used to be paying your kid’s cell phone bill every few months has now turned into a much more extensive set of expenses for many parents,” said Courtney Alev, Credit Karma’s consumer financial advocate.

    More from Personal Finance:
    1 in 5 young adults have debt in collections, report finds
    Gen Zers are home for the holidays on mom and dad’s dime
    63% of Americans are living paycheck to paycheck

    Multigenerational households can be a way to save

    During the pandemic, the number of adults moving back in with their parents — often referred to as “boomerang kids” — temporarily spiked to a historic high.

    Most said they initially moved in with their parents out of necessity or to save money. Hefty student loan bills from college and soaring housing costs have put a financial stranglehold on those just starting out. The surging cost of living and sky-high rents are making it harder to move on.

    The number of households with two or more adult generations has quadrupled over the past five decades, according to a separate report by the Pew Research Center based on census data from 1971 to 2021. Such households now represent 18% of the U.S. population, it estimates.

    Finances are the No. 1 reason families are doubling up, Pew found, due in part to ballooning student debt and housing costs.

    Now, 25% of young adults live in a multigenerational household, up from just 9% five decades ago.  

    In most cases, 25- to 34-year-olds are living in the home of one or both of their parents. A smaller share live in their own home and have a parent or other older relative staying with them.

    Not surprisingly, older parents are also more likely to pay for most of the expenses when two or more generations share a home. The typical 25- to 34-year-old in a multigenerational household contributes 22% of the total household income, Pew found. 

    How to achieve financial freedom

    For parents, however, supporting grown children can be a substantial drain at a time when their own financial security is at risk.

    In an economy that has produced the highest inflation rate since the early 1980s, the cost of providing support has risen sharply. According to Credit Karma, 69% of the parents who help their adult children said it causes them financial stress.

    “It’s essential that parents do what they can to first take care of themselves financially, before offering financial support to their adult children,” Alev said.

    “Like with anything, make a budget for your income and expenses, factoring in savings, debt repayment and, if possible, contributions to a retirement fund,” she advised.

    “Once you’ve done that work, see how much you have left over to feasibly help your adult kids and set that expectation with them. You might even consider setting an expiration date to give your adult children a timeline for when they need to be back on their feet.” 

    Subscribe to CNBC on YouTube.

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  • Here’s what’s in the $1.7 trillion federal spending bill | CNN Politics

    Here’s what’s in the $1.7 trillion federal spending bill | CNN Politics

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    CNN
     — 

    Senate leaders unveiled a $1.7 trillion year-long federal government funding bill early Tuesday morning.

    The legislation includes $772.5 billion for non-defense discretionary programs and $858 billion in defense funding, according to a bill summary from Democratic Sen. Patrick Leahy, chair of the Senate Committee on Appropriations.

    The sweeping package includes roughly $45 billion in emergency assistance to Ukraine and NATO allies, boosts in spending for disaster aid, college access, child care, mental health and food assistance, more support for the military and veterans and additional funds for the US Capitol Police, according to Leahy’s summary and one from Sen. Richard Shelby of Alabama, the top Republican on the Senate Appropriations Committee.

    However, the bill, which runs more than 4,000 pages, left out several measures that some lawmakers had fought to include. An expansion of the child tax credit, as well as multiple other corporate and individual tax breaks, did not make it into the final bill. Neither did legislation to allow cannabis companies to bank their cash reserves – known as the Safe Banking Act. Also, there was also no final resolution on where the new FBI headquarters will be located.

    The spending bill is the product of lengthy negotiations between top congressional Democrats and Republicans. Lawmakers reached a “bipartisan, bicameral framework” last week following a dispute between the two parties over how much money should be spent on non-defense domestic priorities. They worked through the weekend to craft the legislation.

    The Senate is expected to vote first to approve the deal this week and then send it to the House for approval before government funding runs out on December 23. The bill would keep the government operating through September, the end of the fiscal year.

    Congress originally passed a continuing resolution on September 30 to temporarily fund the government in fiscal year 2023, which began October 1.

    More aid for Ukraine: The spending bill would provide roughly $45 billion to help support Ukraine’s efforts to defend itself against Russia’s attack.

    About $9 billion of the funding would go to Ukraine’s military to pay for a variety of things including training, weapons, logistics support and salaries. Nearly $12 billion would be used to replenish US stocks of equipment sent to Ukraine through presidential drawdown authority.

    Also, it would provide $13 billion for economic support to the Ukrainian government.

    Other funds would address humanitarian and infrastructure needs, as well as support European Command operations.

    Emergency disaster assistance: The bill would appropriate more than $38 billion in emergency funding to help Americans in the west and southeast affected by recent natural disasters, including tornadoes, hurricanes, flooding and wildfires. It would aid farmers, provide economic development assistance for communities, repair and reconstruct federal facilities and direct money to the Federal Emergency Management Agency’s Disaster Relief Fund, among other initiatives.

    Overhaul of the electoral vote counting law: A provision in the legislation aims at making it harder to overturn a certified presidential election, in a direct response to the January 6 attack on the US Capitol.

    The changes would overhaul the 1887 Electoral Count Act, which then-President Donald Trump tried to use to overturn the 2020 election.

    The legislation would clarify the vice president’s role while overseeing the certification of the electoral result to be completely ceremonial. It also would create a set of stipulations designed to make it harder for there to be any confusion over the accurate slate of electors from each state.

    Higher maximum Pell grant awards: The bill would increase the maximum Pell grant award by $500 to $7,395 for the coming school year. This would be the largest boost since the 2009-2010 school year. About 7 million students, many from lower-income families, receive Pell grants every year to help them afford college.

    Increased support for the military and veterans: The package would fund a 4.6% pay raise for troops and a 22.4% increase in support for Veteran Administration medical care, which provides health services for 7.3 million veterans.

    It would include nearly $53 billion to address higher inflation and $2.7 billion – a 25% increase – to support critical services and housing assistance for veterans and their families.

    The bill also would allocate $5 billion for the Cost of War Toxic Exposures Fund, which provides additional funding to implement the landmark PACT Act that expands eligibility for health care services and benefits to veterans with conditions related to toxic exposure during their service.

    Beefing up nutrition assistance: The legislation would establish a permanent nationwide Summer EBT program, starting in the summer of 2024, according to Share Our Strength, an anti-hunger advocacy group. It would provide families whose children are eligible for free or reduced-price school meal with a $40 grocery benefit per child per month, indexed to inflation.

    It would also change the rules governing summer meals programs in rural areas. Children would be able to take home or receive delivery of up to 10 days worth of meals, rather than have to consume the food at a specific site and time.

    The bill would also help families who have had their food stamp benefits stolen since October 1 through what’s known as “SNAP skimming.” It would provide them with retroactive federal reimbursement of the funds, which criminals steal by attaching devices to point-of-sale machines or PIN pads to get card numbers and other information from electronic benefits transfer cards.

    More money for child care: The legislation would provide $8 billion for the Child Care and Development Block Grant, a 30% increase in funding. The grant gives financial assistance to low-income families to afford child care.

    Also, Head Start would receive nearly $12 billion, an 8.6% boost. The program helps young children from low-income families prepare for school.

    Help to pay utility bills: The bill would provide $5 billion for the Low Income Home Energy Assistance Program. Combined with the $1 billion contained in the earlier continuing resolution, this would be the largest regular appropriation for the program, according to the National Energy Assistance Directors Association. Home heating and cooling costs – and the applications for federal aid in paying the bills – have soared this year.

    Enhance retirement savings: The bill contains new retirement rules that could make it easier for Americans to accumulate retirement savings – and less costly to withdraw them. Among other things, the provisions would allow penalty-free withdrawals for some emergency expenses, let employers offer matching retirement contributions for a worker’s student loan payments and increase how much older workers may save in employer retirement plans.

    More support for the environment: The package would provide an additional $576 million for the Environmental Protection Agency, bringing its funding up to $10.1 billion. It would increase support for enforcement and compliance, as well as clean air, water and toxic chemical programs, after years of flat funding.

    It also would boost funding for the National Park Service by 6.4%, restoring 500 of the 3,000 staff positions lost over the past decade. This would be intended to help the agency handle substantial increases in visitation.

    Plus, the legislation would provide an additional 14% in funding for wildland firefighting.

    Additional funding for the US Capitol Police: The bill would provide an additional $132 million for the Capitol Police for a total of nearly $735 million. It would allow the department to hire up to 137 sworn officers and 123 support and civilian personnel, bringing the force to a projected level of 2,126 sworn officers and 567 civilians.

    It would also give $2 million to provide off-campus security for lawmakers in response to evolving and growing threats.

    Investments in homelessness prevention and affordable housing: The legislation would provide $3.6 billion for homeless assistance grants, a 13% increase. It would serve more than 1 million people experiencing homelessness.

    The package also would funnel nearly $6.4 billion to the Community Development Block Grant formula program and related local economic and community development projects that benefit low- and moderate income areas and people, an increase of almost $1.6 billion.

    Plus, it would provide $1.5 billion for the HOME Investment Partnerships Program, which would lead to the construction of nearly 10,000 new rental and homebuyer units and maintain the record investment from the last fiscal year.

    Increased health care funding: The package would provide more money for National Institutes of Health, the Centers for Disease Control and Prevention and the Assistant Secretary for Preparedness and Response. The funds are intended to speed the development of new therapies, diagnostics and preventive measures, beef up public health activities and strengthen the nation’s biosecurity by accelerating development of medical countermeasures for pandemic threats and fortifying stockpiles and supply chains for drugs, masks and other supplies.

    More resources for children’s mental health and for substance abuse: The bill would provide more funds to increase access to mental health services for children and schools. It also would invest more money to address the opioid epidemic and substance use disorder.

    Tiktok ban from federal devices: The legislation would ban TikTok, the Chinese-owned short-form video app, from federal government devices.

    Some lawmakers have raised bipartisan concerns that China’s national security laws could force TikTok – or its parent, ByteDance – to hand over the personal data of its US users. Recently, a wave of states led by Republican governors have introduced state-level restrictions on the use of TikTok on government-owned devices.

    Enhanced child tax credit: A coalition of Democratic lawmakers and consumer advocates pushed hard to extend at least one provision of the enhanced child tax credit, which was in effect last year thanks to the Democrats’ $1.9 trillion American Rescue Plan. Their priority was to make the credit more refundable so more of the lowest-income families can qualify. Nearly 19 million kids won’t receive the full $2,000 benefit this year because their parents earn too little, according to a Tax Policy Center estimate.

    New cannabis banking rules: Lawmakers considered including a provision in the spending bill that would make it easier for licensed cannabis businesses to accept credit cards – but it was left out of the legislation. Known as the Safe Banking Act, which previously passed the House, the provision would prohibit federal regulators from taking punitive measures against banks for providing services to legitimate cannabis businesses.

    Even though 47 states have legalized some form of marijuana, cannabis remains illegal on the federal level. That means financial institutions providing banking services to cannabis businesses are subject to criminal prosecution – leaving many legal growers and sellers locked out of the banking system.

    FBI headquarters: There was also no final resolution on where the new FBI headquarters will be located, a major point of contention as lawmakers from Maryland – namely House Majority Leader Steny Hoyer – pushed to bring the law enforcement agency into their state. In a deal worked through by Senate Majority Leader Chuck Schumer, the General Services Administration would be required to conduct “separate and detailed consultations” with Maryland and Virginia representatives about potential sites in each of the states, according to a Senate Democratic aide.

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  • What is a Good Monthly Retirement Income for Women Entrepreneurs?

    What is a Good Monthly Retirement Income for Women Entrepreneurs?

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    If you’ve been successful in your entrepreneurial ventures, you probably have some means of income for your retirement, but usually, entrepreneurs, particularly women entrepreneurs, need to supplement their monthly retirement income to maintain their lifestyle. 


    Due – Due

    Financial risks are higher for women in retirement due to a few factors. They live longer than men and their lifetime earnings are generally less than that of their male counterparts. Both of these factors often mean that women lack the assets to fund a prolonged retirement.

    If you’ve been an entrepreneur for most of your working career, it’s likely that you’ll still have the entrepreneurial itch after you retire. Starting a business in retirement seems counterintuitive, though – you’re supposed to be retiring. But there are many businesses that you can start that will still allow you the flexibility and freedom that retirement is supposed to offer. 

    Here we offer some ideas for businesses that can provide a good monthly retirement income for women entrepreneurs. 

    Freelancing

    You’ve no doubt picked up some valuable skills during your entrepreneurial career. You could freelance in any number of fields, such as:

    • Writing
    • Editing
    • Social Media Marketing
    • Website Design
    • Search Engine Optimization
    • Graphic Design
    • Accounting
    • Computer Programming

    That’s just a short list of the possibilities. Consider what your specific skills are and get creative. What of value could you contribute to other businesses?

    No matter what your skills are, freelancing allows you the flexibility to choose the projects that you want and to work at home on your own time. It can also be quite lucrative. Depending on the nature of the work, freelancers can command anywhere from $20 an hour to well over $100 per hour.

    In 2022, there are more than 70 million freelancers in the U.S., and that number is projected to grow, so clearly businesses utilize their services. In fact, freelancers contribute about $1.2 trillion to the U.S. economy annually. 

    Consulting

    Consultants generally help businesses with a strategy for some aspect of their business.  It could be general management strategy, operations strategy, financial strategy, marketing strategy, or information technology strategy. 

    You’ve undoubtedly gained valuable business insights throughout your career, so consider what your biggest strengths could be valuable to business owners. You could even consider working with a business incubator to do consulting for startup companies.

    The management consulting industry in the U.S. has been growing by leaps and bounds for the last decade, with a value in 2022 of nearly $330 billion. Consulting is also very rewarding – you’re helping businesses grow, which contributes to the health of the overall economy. It can earn you a nice monthly income as well, with hourly rates ranging from $50 to $100 or more. 

    Real Estate Investing

    Real estate can bring in a relatively passive monthly income for your retirement. You can either purchase rental properties for recurring revenue or you could buy properties to renovate and sell for a profit. Either way, you can have others do most of the work for you.

    If you have rental properties, you can simply hire a management company to handle the day-to-day tasks. If you buy properties to renovate, a general contractor can handle the work. 

    Both can be very lucrative but in different ways. With the rental property option, it generally takes a lot of units to make a significant monthly income if you’re financing the properties, but you’ll get tax benefits and the benefit of the long-term appreciation of your portfolio.

    If you choose to renovate and flip houses, you’ll generate more short-term income, depending on the extent of and time for the renovations. The average gross profit on a house flip in 2021 was $67,000, so if you can find and renovate houses quickly, you’ll have some nice funds for your retirement activities. 

    Buy an Existing Business

    Rather than starting a business from scratch, you could find an existing business to purchase. If you find one with a management team in place, you could play a fairly passive role in the business and just reap the benefits.

    You should look for a type of business that interests you and that you have some knowledge about, though, because you’ll still need to oversee your management team. 

    If you choose to buy a business, be sure to have the help of an attorney to make sure that the deal is done properly and that your interests are protected.

    Buy a Franchise

    Similar to buying an existing business, buying a franchise makes getting started much easier. You’ll be working with an existing brand and operational strategy, and you’ll have support to get the franchise up and running.

    Once it’s established, you can hire a management team so that again, you can play a fairly passive role in the business.

    The list of franchises to choose from is nearly endless, and prices can vary greatly. Again, you should choose something that interests you and that you’re somewhat versed in, but make sure that you do your homework and have the franchise agreement thoroughly reviewed.

    Franchises are huge contributors to the U.S. economy, with an economic output of about $827 billion and employing nearly 8.5 million people. 

    A franchise can give you quite a nice retirement income, with one survey showing that the average franchise owner makes about $80,000 per year. 

    eCommerce with Drop-shipping

    An eCommerce business can seem overwhelming and expensive to start because you think of all the inventory you’d have to purchase. This does not have to be the case if you find a manufacturer or supplier that offers dropshipping.

    Drop-shipping means that when a customer places an order through your eCommerce store, you place the order with the supplier, who then ships it directly to the customer. That means no inventory to purchase and hold. 

    Your job is just to maintain your website, market your products, and receive and place orders, which you can do from the comfort of your home.

    You could do this with any number of products – just look for something that’s unique but has a large market and preferably, a good profit margin. 

    Online Education

    Online education is a booming industry and another way to put your years of knowledge to use. Many online platforms exist that allow you to create and upload your own curriculum and market your courses to your target audience. 

    Most online classes are self-study, so once your curriculum is online, how much or little to be involved is up to you. You could be available to answer questions by email, or you could hold Zoom sessions that students can attend.

    The global e-learning market has been growing steadily for years and is expected to reach a size of $400 billion by 2026, so it’s a great time to get into the industry.  And some online class sellers report making up to $100,000 per year, which could fund a few nice retirement vacations. 

     

    Plant Nursery

    If you’re looking for a business that’s a little more Zen and you have a yard and a green thumb, you could start your own plant nursery at home. You could grow anything from decorative plants and flowers to vegetables and sell them to garden centers or from your own little farm stand. 

    If you’re really ambitious, you could build a greenhouse in your yard so that you’ll have plants year-round. You could even set up your greenhouse as a mini-garden center and let customers come in and browse.

    Profit margins on plants are high, and it doesn’t cost much to get started. Even building a greenhouse can be done fairly economically. 

    The plant and flower growing industry revenue in the U.S. was more than $17 billion in 2021, so if you can earn even a small share of that market in your own backyard, why not give it a try?

    Tutoring

    Kids these days face a lot of academic pressure, leading many parents to hire private tutors. Online tutoring is even becoming popular, and is now its own industry, worth more than $8 billion. 

    If you have a subject that you excel at and some teaching experience, you could either tutor students in your home or set up your own website to do online tutoring. 

    It would be quite a fulfilling venture to help students meet their academic goals, and you can generally make between $25 and $50 per hour. 

    Event Planning

    Events are back on in the wake of the pandemic – weddings, corporate events, birthday parties, you name it, people are ready to have some fun. If you’re one of those people who thrive on handling the details, an event planning business could provide a nice retirement income. 

    An event planning business takes very little to get started. You’d just have to market your services and make some connections with vendors. You could specialize in certain types of events or keep yourself open to all options.

    The event planning industry in the U.S. was worth more than $4 billion in 2021 in spite of the lingering effects of COVID and is expected to show good numbers for 2022 and beyond. 

    Typically, an event planner makes a commission of 15% to 20% of the total cost of the event, and the average wedding costs about $20,000, so clearly, even planning one event per month would give you a nice income. 

    Crafts

    Hello Etsy! Etsy is a great platform for craft lovers, both those who make them and those who buy them. If you’re a talented crafter, you could set up your own Etsy store to sell your wares. In 2021 Etsy sellers generated nearly $1.7 billion in revenue, so it’s a great vehicle for sales and much simpler than setting up your own website.

    Popular crafts include glass etching and leather goods, as well as up-cycled items, but it all depends on your creative talents. It’s a bit labor intensive, depending on what you make, because you’ll also have to handle the packaging and shipping of your items.

    But still, if crafting is your hobby and you enjoy it, why not make it a source of retirement income? Often the best businesses involve doing what you love.

    Pet Sitting

    If you’re a pet lover, you can make a surprising amount of money as a pet sitter. The daily cost of pet sitting, which includes just one visit to the pet is about $30, and an overnight stay with a pet costs about $75. If you build up a good clientele, that can add up to a nice monthly income. 

    Working people are willing to pay to have their pets cared for while they’re at work, and others would rather go on vacation, leaving their pet care to a pet sitter rather than an expensive kennel. The fact is people spend a lot of money on their pets, to the tune of $150 billion in 2021 on pet services alone.

    You can even become a certified pet sitter through the National Association of Professional Pet Sitters to add to your credibility with customers. 

    It’s a great way to make money while not doing anything too labor or time-intensive, and if you love pets, you’ll have a great time.

    Bed and Breakfast

    A bed and breakfast can take some doing to get started. You have to find a great property in a desirable location, furnish it appropriately, and equip your kitchen to feed multiple people. However, once you’ve got it set up, you can bring in several hundred dollars a night during the busy seasons! 

    If you love to play host, you’ll also find it very enjoyable and meet lots of interesting people. Every day will be different, and you’ll be providing a lovely place for people to vacation.

    It’s also easier than ever to advertise your B & B, with the success of sites like Airbnb and VRBO. 

    In Closing

    Retirement is supposed to be a wonderful part of life, and you should have the luxury of being financially secure. As an entrepreneur, you know what it takes to start and manage a business, so a new venture can be a fulfilling way to bring in a nice retirement income. 

    Choose something that you love and something that allows you the flexibility and freedom to enjoy this part of your life. After all these years of working hard, you deserve it! 

    The post What is a Good Monthly Retirement Income for Women Entrepreneurs? appeared first on Due.

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    Carolyn Young

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  • 3 Ways to Save on Car Insurance During a Recession

    3 Ways to Save on Car Insurance During a Recession

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    Opinions expressed by Entrepreneur contributors are their own.

    In the face of a recession, it can be hard to keep up with the rising costs of vehicle ownership. The average American is spending 17% more on car insurance coverage in 2022 than they were in 2020, and that expense is driving Americans to extreme extents in order to save money. It may be tempting to save money by cutting coverage with your current insurance company. However, I recommend keeping adequate coverage and using alternative methods to save money so you don’t make your problems worse in the event of an accident.

    While 16% of drivers are considering moving to a location with better public transportation and walkability, you do not have to relocate or surrender your car to save during a recession. By implementing these simple tips, you can significantly cut down on your monthly payments without sacrificing much convenience or comfort.

    Related: 8 Tricks for Solopreneurs to Cut the Cost of Auto Insurance

    1. Shop for car insurance every 6 months

    While some insurers would suggest drivers shop for car insurance on an annual basis, a recession can cause your finances to change on a whim. Shopping for car insurance every six months ensures that you’re getting the best deal for your financial situation. Car insurance comparison platforms will automatically shop for you every six months and before your policy renewal, so you can stay updated on the best policy options.

    If you prefer to conduct your own shopping research, you should start by assessing your own coverage. As you shop, you should compare the rates of other policies that offer coverage that mirrors yours. Make sure you include any applicable discounts (e.g., homeownership, education, safety devices, etc.) in your comparison shopping.

    2. Consider usage-based insurance

    Usage-based insurance (UBI) lets insurers charge lower premiums for people who drive less often or in safer ways. There are two main types of UBI: driving-based programs and mileage-based programs.

    Driving-based programs involve a device being installed in your car that monitors how and when you drive, with the goal of lowering your rates according to how safe you are behind the wheel. Your rates will be determined by factors like how hard you brake, how quickly you accelerate and the time of day that you drive. If your insurer offers a driving-based program, you should avoid driving after midnight, drive less often, and don’t multitask while driving — otherwise, you risk your rates increasing.

    Alternatively, there are mileage-based programs that consider the total miles driven each year. Your insurer will calculate your premium based only on how many miles you drive. Even though not all insurers offer this type of plan, if you work remotely or are retired, it might be a good option for you.

    Related: Save Time and Energy With AI-Powered Car Insurance

    3. Opt for a higher deductible

    Your insurance deductible is the amount you have to cover out of pocket before your insurance company will chip in. This can mean that if you get into an accident and need repairs, you would be responsible for paying them out of pocket — unless the damage falls below your deductible level.

    Many people avoid having a high deductible because they worry that they would not be able to cover it if something happened. They fear they will end up being stuck with the bill and unable to afford their car repairs or medical treatment without going into debt or taking out a loan.

    But here’s the thing: There are many benefits to having a higher deductible. Generally, you will see lower premiums for higher deductibles; and having more money in your pocket each month could help offset any unexpected costs from accidents or emergencies. Keep in mind, savings vary by company, so before you choose an insurance provider, compare quotes with different deductibles to maximize savings.

    4. Take a defensive driving course

    Taking a defensive driving course can result in a discount of 5-10%. This can also help you remove DMV points from your record, which will further reduce your insurance costs. If you have taken a defensive driving course due to a court mandate, you won’t be eligible for the discount. Taking an approved course voluntarily is worthwhile, however.

    Not all insurance companies honor this discount, so you should check with your provider beforehand. Allstate, GEICO and State Farm are among the national auto insurance agencies that do offer this discount for drivers, so long as you take an approved program.

    Related: Find the Best Car Insurance Rates in Your Area with ‘The Zebra’

    These simple tips will prove useful both now and in the years to come, allowing you to make smart, informed decisions about insurance coverage regardless of your financial situation. It is hard to know for certain what economic conditions will look like in 2023 and beyond, but it is important to be prepared nonetheless. By implementing these four, easy practices, you can save money and reduce your risk of being overcharged by an insurance company that doesn’t understand your personal finances.

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    Paul Moss

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  • Home Page – MarketWatch

    Home Page – MarketWatch

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    Twitter voters favor Elon Musk stepping down, as Tesla shares rise

    Nearly 58% or about 17.5 million Twitters votes were cast in favor of Elon Musk stepping down from the company, Musk’s Twitter account said Monday. Meanwhile shares of Tesla Inc. , the electric car company that Musk also runs, saw its stock rise by 4.7% in premarket trades. Musk has been running Twitter for 53 days, during which time he’s laid off a large percentage of the company’s work force and drawn criticism recently for suspending accounts of four journalists. The latest controversy revolved around whether Twitter would ban accounts that post links or usernames for certain “prohibited” third-party social media platforms. The social media platform announced the ban and then seemingly rescinded the rule about 12 hours later. During that issue, Musk then asked Twitter users to vote on whether he should continue to run the company.

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  • 4 Holiday Side-Hustles for Extra Cash

    4 Holiday Side-Hustles for Extra Cash

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    Opinions expressed by Entrepreneur contributors are their own.

    The holiday season is such a busy time that you might not think of taking on a side hustling gig. It’s the perfect time to do so because you are not the only one whose time is stretched to the limit. Everyone is going in ten directions at once; now’s your chance to step in, lend a hand, and make some excellent side-hustle money. Maybe you’d like to earn for that weekend getaway during the cold winter months or pay off those smoking-hot credit cards after your busy shopping season. Let’s look at some tremendous seasonal side hustles that also let you enjoy the fun of the holidays.

    Related: The Holiday Season Means More People Take on Side Hustles — the Difference This Year? They Don’t Plan to Quit Anytime Soon.

    1. Take your e-business live at a show or festival

    The holiday season is bustling with craft fairs and shopping festivals. Here’s your chance to combine a side hustle with valuable business research. My company, Hollywood Sensation Jewelry, has been an online business from the start. This year, my ingenious husband Anthony Hood suggested we participate in the Sunset Market, a huge outdoor market in Oceanside.

    Quite economically, we rented a booth, set up a tent and spent four hours selling Hollywood Sensation merchandise in public. I admit I had doubts about whether this would work for us, and I was even nervous about the public interaction. But, if you’ll forgive the pun, the results were sensational! We sold more than enough to offset our expenses. More than that, however, we got live feedback from real customers with whom we could speak one-on-one.

    If you have a product you’ve never taken out of the e-store, check your community calendar for upcoming festivals, conventions and fairs to get in on a new revenue stream and free market research. The cost of renting a booth will vary depending on the popularity and turnout of the event. I recommend starting small and scaling up if things go well. Be certain that you select an event that jibes with your brand. We might not want to take Hollywood Sensation Jewelry to a plumbing expo, but that sunset beach atmosphere was perfect for some glamor.

    Related: Unlike Many Things That Are a Lot of Work, Trade Shows Are Worth It

    2. Take your skills to the masses

    Do you have a knack for holiday décor? Fancy gift-wrapping? Event planning? Delectable baked goods? Well, not everybody does, and that’s why they need your services, especially at this time of year. Maybe you have a holiday cake or cookie recipe that gets rave reviews everywhere you go. Let folks at the office potluck and the church social know you’re available to bake one for them, too.

    Utilize social media to get your name out there as someone who can put up a beautiful Christmas tree (indoors or outdoors) and otherwise deck the halls. And don’t forget – while many people love to decorate for Christmas, almost no one loves taking it all back down again. Are you willing to do the untangling, repackaging and boxing of all that holly and mistletoe? Maybe you have a pickup truck and can haul away trees for responsible disposal.

    Sites like TaskRabbit.com let you create an account as a helping hand for a limitless variety of tasks and get customer reviews to build your reputation and bring in even more business. For example, TaskRabbit offers the following average costs for these services: “Party Clean Up” for $49-$80, “Toy Assembly” for $40-$99 and “Christmas Decorating” for $48-$86. You can even get paid to stand in line for someone else. I am not kidding!

    Related: 44 Profitable Ideas to Make Extra Money on the Side

    3. Reap the perks of a seasonal job

    Stores and delivery businesses always seek reliable help for the season. Showing yourself as an excellent seasonal employee means you can almost certainly be welcomed back the following year. And don’t forget – many stores offer their regular employee discounts to seasonal workers. If you’ve got your eye on an expensive purchase, you might get another 10% or more off the cost. My friend worked for five weeks at a home furnishings store and saved his family a bundle on new flooring and a refrigerator.

    Here’s another option: party companies are slammed this time of year, and they need people to prep, decorate, serve, check in guests, take coats, valet cars, conduct table games and clean up afterward. I have a friend who deals blackjack at holiday parties and enjoys it. She attends several fancy parties each year, hears the bands, meets fun people who are all having a great time and gets paid for doing it.

    Seasonal job salaries depend on your location, but here are some examples. On average, delivery companies pay about $16.00 per hour, warehouses about $13.80, and store gift wrappers earn around $12.00 an hour. When applying at retail stores with an eye on purchases, ask if their employee discount extends to seasonal help.

    Related: Start an Amazon Side Hustle and Earn Extra Money

    4. Be a sitter

    What do the holidays bring besides good cheer? Travelers! People have places to go and things to do, whether for an evening party, a busy shopping day away from the children or two weeks out of town. Ease their travel stress by being the person who holds down the fort. Reliable and friendly childcare, eldercare, housesitting and pet care take a load off everyone’s mind.

    It’s a relief to know someone is there to keep an eye on the house or check in on older relations to ensure all is safe. Once more, multiple gig websites let you register as a sitter (check out Rover.com or Care.com, for example). Or, get established in one neighborhood as a terrific house — or pet-sitter, and you’ll get more offers. Word gets around on the homeowners’ websites fast, and having multiple gigs in the same neighborhood adds to your convenience.

    Enjoy your holidays

    A holiday side hustle is more than just a way to supplement your income. Getting out into the holiday atmosphere is a great way to enjoy the season’s spirit, ease the stress for others and help create wonderful memories. Of course, giving is better than receiving, but if you can do both simultaneously with a holiday side hustle, that’s quite a reason to celebrate.

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    Mary Hood

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  • The Fed increased interest rates again — here’s why you should save more and pay off debt in response

    The Fed increased interest rates again — here’s why you should save more and pay off debt in response

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    The Federal Reserve recently announced the seventh consecutive increase to the federal funds rate and indicated its intent to continue raising interest rates going forward. The Fed has repeatedly raised rates this year in an effort to corral rampant inflation that has reached 40-year highs. However, there are signs inflation is starting to cool. 

    Higher interest rates may help curb soaring prices, but it also increases the cost of borrowing which can make everyday financial products more expensive, like mortgages, personal loans and credit cards.

    Given the current economic outlook and interest rate environment, saving money and paying down high-interest debt have become more appealing. Select dives into what you should do with your money after the Fed’s interest rate hike.

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    Why the Fed’s decision to raise rates means it’s time to save and pay down debt

    A complex web of factors influences the economy and interest rates in general, making it impossible to predict the future rate environment with absolute certainty. But right now there are no signs rates will be dropping anytime soon, and the Fed says it will continue rate hikes in 2023. And even if the economic outlook suddenly shifts, it’s always a good idea to focus on the fundamentals that put you on firm financial footing. 

    That’s why now is a good time to reassess your approach to saving and to take a good hard look at your debt — especially debt with a variable interest rate.

    Savings accounts are paying better

    During the height of the pandemic, the interest you could earn on money held in a savings account was next to nothing. Even high-yield savings accounts often had APYs under 1%.

    But in a world of high interest rates, savings accounts can earn much more considerable returns. Currently, the best high-yield savings accounts offer rates of over 4% with no monthly fees. 

    At the time of writing, a UFB Best Savings account has a 4.11% APY with no minimum balance and no monthly fees. And it’s not the only account offering high returns. High-yield savings accounts with Marcus by Goldman Sachs and LendingClub also have APYs of 3% or more.

    UFB Best Savings

    UFB Best Savings is a Member FDIC.

    • Annual Percentage Yield (APY)

    • Minimum balance

    • Monthly fee

    • Maximum transactions

    • Excessive transactions fee

    • Overdraft fees

    • Offer checking account?

    • Offer ATM card?

    Pros

    • Strong APY
    • No minimum balance
    • No monthly fees

    Cons

    • No option to add a checking account
    • No physical branch locations

    Marcus by Goldman Sachs High Yield Online Savings

    Goldman Sachs Bank USA is a Member FDIC.

    • Annual Percentage Yield (APY)

    • Minimum balance

      None to open; $1 to earn interest

    • Monthly fee

    • Maximum transactions

      Up to 6 free withdrawals or transfers per statement cycle *The 6/statement cycle withdrawal limit is waived during the coronavirus outbreak under Regulation D

    • Excessive transactions fee

    • Overdraft fees

    • Offer checking account?

    • Offer ATM card?

    LendingClub High-Yield Savings

    LendingClub Bank, N.A., Member FDIC

    • Annual Percentage Yield (APY)

    • Minimum balance

      No minimum balance requirement after $100.00 to open the account

    • Monthly fee

    • Maximum transactions

    • Excessive transactions fee

    • Overdraft fees

    • Offer checking account?

    • Offer ATM card?

    The cost of borrowing is increasing

    While savers have reasons to rejoice during an era of high rates, borrowers may feel the financial pain of increased costs. And if you have debt tied to an adjustable interest rate, you’ll pay more for the money you’ve already borrowed.

    One of the best ways to save money during times with higher interest rates is to focus on paying down your debt with the highest interest rate first. The balance on your credit card is often a good place to start, as many cards can easily have an annual percentage rate (APR) of more than 20%. That’s more than double today’s inflation rate and far higher than what you’d earn with a savings account.

    Pro tip: There are a number of 0% APR credit cards that charge no interest for a set amount of time, typically six to 21 months.

    An emergency fund is a vital safety net

    Building up an emergency fund is a wise decision regardless of the economy’s health.

    Your personal circumstances can take a turn for the worst even if the broader economy is doing well. Although there is debate as to how much you should save in your emergency fund, a good target is to have enough funds to cover three to six months of living expenses. And, keeping your emergency fund in a high-yield savings account allows you to earn interest and have your cash work for you.

    With inflation, savings rates, and interest rates on debt all at elevated levels, you may have to balance building your savings with paying down debt.

    Bottom line

    The Federal Reserve is continuing to raise its benchmark interest rate. That means rates for mortgages, personal loans, credit cards, and savings accounts are likely to continue increasing.

    Although there are signs that the pace of the increase in rates may be slowing, the Fed hasn’t signaled it will stop with the rate hikes anytime soon. With high rates, saving becomes more appealing, and paying off your debt is even more important.

    Catch up on Select’s in-depth coverage of personal finance, tech and tools, wellness and more, and follow us on Facebook, Instagram and Twitter to stay up to date.

    Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

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  • 6 Effective Real Estate Investment Strategies

    6 Effective Real Estate Investment Strategies

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    Opinions expressed by Entrepreneur contributors are their own.

    As a real estate investor, you might encounter varying advice about investing on the internet, social media and from other investors. Some of these sources may claim they know best, but there are many effective strategies for investing in real estate. There isn’t a single strategy that is the best approach for every landlord. In fact, your real estate investing strategy should reflect your personal long-term goals, available resources and current circumstances.

    Plus, your investing strategy can — and should — change as your needs change. The success of your rentals isn’t tied to one investing strategy, but rather the skills you’ve built, the tactics you’ve learned and your ability to shift between different strategies when needed.

    Below are six great real estate investing strategies you may use at various points in your investing career:

    Related: Master These 6 Skills to Succeed as a Real Estate Investor

    1. House hacking

    House hacking is a popular investing strategy wherein you buy a property, live in half and rent the other half out. The rental income you receive helps reduce your monthly mortgage payments on the property.

    This strategy works well with duplexes and other multiplexes because you can maintain a clear division between your and your tenant’s spaces. However, some investors also rent out a basement or bedroom from their single-family home (SFH).

    House hacking is a trendy and widely used investing strategy for several reasons. For one, it’s an excellent way to transition to real estate investing for new landlords. This is especially true if you learn to manage your rented unit or bedroom with property management software. Software helps you carefully track your income and expenses while you establish your business. Another benefit of house hacking is that it allows you to get a residential mortgage because you’ll be living on the property as well.

    In the long run, this strategy’s aim is to make it possible for you to move out and transition the property into a full-blown rental.

    2. BRRRR deal

    BRRRR investing is another effective strategy made popular by Brandon Turner on Bigger Pockets. BRRRR stands for buy, rehab, rent, refinance and repeat:

    • Buy: Buy a property at below-market value.

    • Rehab: Renovate and improve the property by adding value.

    • Rent: Rent out the property to cover the mortgage.

    • Refinance: Get the property reappraised, then use cash-out refinancing to secure an advantageous mortgage.

    • Repeat: Use the capital you recovered from the deal to invest in more properties.

    With BRRRR, the idea is to capitalize on a property others may have overlooked due to its low face value or apparent lack of potential.

    To use the BRRRR strategy, target properties that are sound investments despite needing some work. Focus on improvements that increase value: installing hardwood flooring, adding extra bedrooms or remodeling kitchens and bathrooms. The value added from these improvements will improve your property appraisal and help you secure more funds to invest elsewhere.

    Related: 5 Tips for New Investors Who Want to Make Money With Real Estate

    3. Wholesaling/driving for dollars

    Wholesaling is a strategy many investors use to capitalize on great deals. In this strategy, you find a property that will make a good deal, facilitate a sale between a buyer and seller, and then collect the difference between the seller’s price and the amount the buyer pays.

    To succeed with this strategy, you need to be informed about which properties are currently on the market. You can use popular listing sites, the Multiple Listing Service (MLS) or a strategy known as “driving for dollars.” This involves manually searching neighborhoods for properties that look promising.

    One downside of wholesaling is that you need strong marketing and sales skills. If you don’t have this skill set and don’t want to work to acquire it, wholesaling might not be for you.

    4. Flipping properties

    Flipping properties is like BRRRR in that you buy, renovate and improve a property. However, with house flipping, the end goal is to sell the property, not rent it out.

    House flipping works best when you renovate and flip as quickly as possible. The longer you wait to sell, the more mortgage payments you must make. Like BRRRR, house flipping works best with properties listed at below-market value or those that are easy to improve at low costs. This way, improvements can significantly increase the property’s value and lead to quick turnovers.

    One downside to this strategy is that you’ll have higher capital gains taxes because you sold the property so quickly. You’ll also need help to successfully pull off house flipping — specifically, you’ll need a team of builders and renovators and access to high-quality materials at a relatively low cost.

    5. Syndications

    Syndication is often considered a more passive real estate investing strategy. However, with careful decision-making and an active eye on the process, syndication can lead to great gains. The main idea with the syndication strategy is to pool your funds with other accredited investors to buy real estate.

    Here’s how it works: You pay syndicators to locate and manage most deals, then benefit from the profit. Syndication can be public or private. Public syndication is usually operationalized through a syndication marketplace, while private syndication is managed manually by investors.

    Crowdfunding is a specific type of syndication investing that involves accredited and non-accredited investors alike who contribute and profit from deals. If you choose the crowdfunding path, you’ll work with a broader range of investors. You also won’t be expected to contribute as much entry capital as you would with traditional syndication (typically only around $50-$1,000 is required).

    If you choose the syndication route, be picky about who you work with. You want to ensure your investments are in good hands, even if you didn’t contribute as much initially.

    Related: 7 Common Mistakes Made By New Real Estate Investors

    6. Live-in-then-rent

    The live-in-then-rent strategy is a modified house-flipping scenario. Essentially, your property is a SFH (usually) that you live in initially and then turn into a rental after you move out. The main difference between live-in-then-rent and house hacking is that you don’t live in the property and rent it at the same time. Instead, these are two separate phases.

    Live-in-then-rent is a great strategy for people who don’t want to live closely with their renters but still want to participate in real estate investing on their budget.

    With so many ways to invest in real estate, it may seem challenging to devise a strategy that meets all your needs. However, by catering your investing strategy to your particular goals, you can successfully cultivate your real estate business.

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  • Student loan forgiveness is headed to the Supreme Court. What that means for the payment pause

    Student loan forgiveness is headed to the Supreme Court. What that means for the payment pause

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    West | Istock | Getty Images

    The Biden administration’s most recent announcement that the pause on federal student loan bills would be extended left borrowers with more uncertainty: It didn’t provide a date for when the payments would resume.

    The pandemic-era relief policy suspending federal student loan bills and the accrual of interest has been in effect since March 2020. Turning the $1.7 trillion lending system back on for some 40 million Americans is a massive task that the U.S. Department of Education has been reluctant to undertake.

    The administration had hoped to ease the transition for borrowers by first forgiving a large share of student debt, but its plan to do so, unveiled in August, soon faced a barrage of legal challenges and remains tied up in the courts. That development is why borrowers have gotten even more time without a student loan bill.

    Here’s what you need to know about the latest payment pause extension.

    Student loan bills could resume as soon as May 1

    The Education Department has left things a little open-ended when it comes to the timing of federal student loan payments resuming.

    It has said the bills will be due again only 60 days after the litigation over its student loan forgiveness plan resolves and it’s able to start wiping out the debt.

    If the Biden administration is still defending its policy in the courts by the end of June, or if it’s unable to move forward with forgiving student debt by then, the payments will pick up at the end of August, it said.

    Most recently, the Supreme Court has said it will hear oral arguments around the president’s plan in February.

    That means the earliest that payments could restart would likely be May 1, if the justices reach a quick decision, said higher education expert Mark Kantrowitz.

    Borrowers who are behind may get a ‘fresh start’

    The U.S. government has extraordinary collection powers on federal debts and it can seize borrowers’ tax refunds, wages and Social Security checks if they fall behind on their student loans.

    During the extended payment pause, however, the Education Department is also ceasing all collection activity, it said.

    Borrowers in default on their student loans should also look into the recently announced “Fresh Start” initiative, in which they’ll have the opportunity to return to a current status.

    Refinancing may be worth considering

    Kantrowitz had previously recommended that, despite the chance of picking up a lower interest rate, federal student loan borrowers refrain from refinancing their debt with a private lender while the Biden administration deliberated on how to move forward with forgiveness. Refinanced student loans wouldn’t qualify for the federal relief.

    Now that borrowers know how much in loan cancellation is coming — if the president’s policy survives in the courts — borrowers may want to consider the option, Kantrowitz said. With the Federal Reserve expected to continue raising interest rates, he added, you’re more likely to pick up a lower rate with a lender today than down the road.

    Still, Kantrowitz added, it’s probably a small pool of borrowers for whom refinancing is wise.

    It would be deeply unfair to ask borrowers to pay a debt that they wouldn’t have to pay, were it not for the baseless lawsuits brought by Republican officials and special interests.

    Miguel Cardona

    Secretary of the U.S. Department of Education

    He said those include borrowers who don’t qualify for the Biden administration’s forgiveness — the plan excludes anyone who earns more than $125,000 as an individual or $250,000 as a family — and those who owe more on their student loans than the administration plans to cancel. Those borrowers may want to look at refinancing the portion of their debt over the relief amounts, Kantrowitz said.

    Borrowers need to first understand the federal protections they’re giving up before they refinance, warns Betsy Mayotte, president of The Institute of Student Loan Advisors.

    For example, the Education Department allows you to postpone your bills without interest accruing if you can prove economic hardship. The government also offers loan forgiveness programs for teachers and public servants.

    “Your rate doesn’t matter if you lose your job, have sudden medical expenses, can’t afford your payments and find that defaulting is your only option,” Mayotte said, in a previous interview about refinancing.

    Make the most of extra cash during the payment pause

    Boy_anupong | Moment | Getty Images

    With headlines warning of a possible recession and layoffs picking up, experts recommend that you try to salt away the money you’d usually put toward your student debt each month.

    Certain banks and online savings accounts have been upping their interest rates, and it’s worth looking around for the best deal available. You’ll just want to make sure any account you put your savings in is FDIC-insured, meaning up to $250,000 of your deposit is protected from loss.

    And while interest rates on federal student loans are at zero, it’s also a good time to make progress paying down more expensive debt, experts say. The average interest rate on credit cards is currently more than 19%.

    Some may want to keep paying during the pause

    If you have a healthy rainy-day fund and no credit card debt, it may make sense to continue paying down your student loans even during the break, experts say.

    There’s a big caveat here, however. If you’re enrolled in an income-driven repayment plan or pursuing public service loan forgiveness, you don’t want to continue paying your loans.

    That’s because months during the government’s payment pause still count as qualifying payments for those programs, and since they both result in forgiveness after a certain amount of time, any cash you throw at your loans during this period just reduces the amount you’ll eventually get excused.

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  • Home Page – MarketWatch

    Home Page – MarketWatch

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    Retail sales drop 0.6% in November, weakest data of the year

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  • These are the top 10 mistakes people make when planning for retirement

    These are the top 10 mistakes people make when planning for retirement

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    We all make mistakes in planning for our golden years. But which are the worst, which are the most common, and which ones do we all need to watch out for?

    Financial planners have weighed in with the top 10 they see among clients. It’s emerged in a survey conducted by money managers Natixis and just released. And it’s a terrific checklist for anyone who wants to see how they’re doing, and what they need to change.

    The…

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  • SEC votes to propose major overhaul of U.S. stock-trading rules

    SEC votes to propose major overhaul of U.S. stock-trading rules

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    The Securities and Exchange Commission on Wednesday voted to propose a package of rule changes, including measures that could affect, but not block, the controversial practice known as payment for order flow.

    In this practice, brokers send many small orders from individual investors to market makers or other venues, who compensate the brokers for the order flow. The brokerage industry argues that the practice, which is banned in several countries, offers a net saving to investors, allowing for zero-commission trades and otherwise…

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  • Here’s what the Federal Reserve’s half-point rate hike means for you

    Here’s what the Federal Reserve’s half-point rate hike means for you

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    The Federal Reserve raised its target federal funds rate by 0.5 percentage points at the end of its two-day meeting Wednesday in a continued effort to cool inflation.

    Although this marks a more typical hike compared to the super-size 0.75 percentage point moves at each of the last four meetings, the central bank is far from finished, according to Greg McBride, chief financial analyst at Bankrate.com.

    “The months ahead will see the Fed raising interest rates at a more customary pace,” McBride said.

    More from Invest in You:
    Just 12% of adults, and 29% of millionaires, feel ‘wealthy′
    35% of millionaires say they won’t have enough to retire
    Inflation boosts U.S. household spending by $433 a month

    The latest move is only one part of a rate-hiking cycle, which aims to bring down inflation without tipping the economy into a recession, as some feared would have happened already.

    “I thought we would be in the midst of a recession at this point, and we’re not,” said Laura Veldkamp, a professor of finance and economics at Columbia University Business School.

    “Every single time since World War II the Federal Reserve has acted to reduce inflation, unemployment has shot up, and we are not seeing that this time, and that’s what stands out,” she said. “I couldn’t really imagine a better scenario.”

    Still, the combination of higher rates and inflation has hit household budgets particularly hard.

    What the federal funds rate means for you

    The federal funds rate, which is set by the central bank, is the interest rate at which banks borrow and lend to one another overnight. Whether directly or indirectly, higher Fed rates influence borrowing costs for consumers and, to a lesser extent, the rates they earn on savings accounts.

    For now, this leaves many Americans in a bind as inflation and higher prices cause more people to lean on credit just when interest rates rise at the fastest pace in decades.

    With more economic uncertainty ahead, consumers should be taking specific steps to stabilize their finances — including paying down debt, especially costly credit card and other variable rate debt, and increasing savings, McBride advised.

    Pay down high-rate debt

    Since most credit cards have a variable interest rate, there’s a direct connection to the Fed’s benchmark, so short-term borrowing rates are already heading higher.

    Credit card annual percentage rates are now over 19%, on average, up from 16.3% at the beginning of the year, according to Bankrate.

    The cost of existing credit card debt has already increased by at least $22.9 billion due to the Fed’s rate hikes, and it will rise by an additional $3.2 billion with this latest increase, according to a recent analysis by WalletHub.

    If you’re carrying a balance, “grab one of the zero-percent or low-rate balance transfer offers,” McBride advised. Cards offering 15, 18 and even 21 months with no interest on transferred balances are still widely available, he said.

    “This gives you a tailwind to get the debt paid off and shields you from the effect of additional rate hikes still to come.”

    Otherwise, try consolidating and paying off high-interest credit cards with a lower interest home equity loan or personal loan.

    Consumers with an adjustable-rate mortgage or home equity lines of credit may also want to switch to a fixed rate. 

    How to know if we are in a recession

    Because longer-term 15-year and 30-year mortgage rates are fixed and tied to Treasury yields and the broader economy, those homeowners won’t be immediately impacted by a rate hike.

    However, the average interest rate for a 30-year fixed-rate mortgage is around 6.33% this week — up more than 3 full percentage points from 3.11% a year ago.

    “These relatively high rates, combined with persistently high home prices, mean that buying a home is still a challenge for many,” said Jacob Channel, senior economic analyst at LendingTree.

    The increase in mortgage rates since the start of 2022 has the same impact on affordability as a 32% increase in home prices, according to McBride’s analysis. “If you had been approved for a $300,000 mortgage in the beginning of the year, that’s the equivalent of less than $204,500 today.”

    Anyone planning to finance a new car will also shell out more in the months ahead. Even though auto loans are fixed, payments are similarly getting bigger because interest rates are rising.

    The average monthly payment jumped above $700 in November compared to $657 earlier in the year, despite the average amount financed and average loan term lengths staying more or less the same, according to data from Edmunds.

    “Just as the industry is starting to see inventory levels get to a better place so that shoppers can actually find the vehicles they’re looking for, interest rates have risen to the point where more consumers are facing monthly payments that they likely cannot afford,” said Ivan Drury, Edmunds’ director of insights. 

    Federal student loan rates are also fixed, so most borrowers won’t be impacted immediately by a rate hike. However, if you have a private loan, those loans may be fixed or have a variable rate tied to the Libor, prime or T-bill rates — which means that as the Fed raises rates, borrowers will likely pay more in interest, although how much more will vary by the benchmark.

    That makes this a particularly good time to identify the loans you have outstanding and see if refinancing makes sense.

    Shop for higher savings rates

    While the Fed has no direct influence on deposit rates, they tend to be correlated to changes in the target federal funds rate, and the savings account rates at some of the largest retail banks, which were near rock bottom during most of the Covid pandemic, are currently up to 0.24%, on average.

    Thanks, in part, to lower overhead expenses, the average online savings account rate is closer to 4%, much higher than the average rate from a traditional, brick-and-mortar bank.

    “The good news is savers are seeing the best returns in 14 years, if they are shopping around,” McBride said.

    Top-yielding certificates of deposit, which pay between 4% and 5%, are even better than a high-yield savings account.

    And yet, because the inflation rate is now higher than all of these rates, any money in savings loses purchasing power over time. 

    What’s coming next for interest rates

    Consumers should prepare for even higher interest rates in the coming months.

    Even though the Fed has already raised rates seven times this year, more hikes are on the horizon as the central bank slowly reins in inflation.

    Recent data show that these moves are starting to take affect, including a better-than-expected consumer prices report for November. However, inflation remains well above the Fed’s 2% target.

    “They will still be raising interest rates now and into 2023,” McBride said. “The ultimate stopping point is unknown, as is how long rates will stay at that eventual destination.”

    Subscribe to CNBC on YouTube.

    Correction: A previous version of this story misstated the extent of previous rate hikes.

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  • This 529 savings plan myth is making college pricier for families, consultant says: ‘It’s candidly, blatantly not true’

    This 529 savings plan myth is making college pricier for families, consultant says: ‘It’s candidly, blatantly not true’

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    Kevin Dodge | The Image Bank | Getty Images

    SEATTLE — For many families, paying for college is a financial burden, and experts say education funding myths may be adding to the student loan debt crisis.

    “There’s often this perception that somehow people are being penalized for saving for college,” said Cozy Wittman, national education and partnerships speaker with College Inside Track. “It’s candidly, blatantly not true.”

    Parent-owned 529 college savings plans are assessed at 5.64% when filing the Free Application for Federal Student Aid, known as the FAFSA, she said, speaking at the Financial Planning Association’s annual conference on Tuesday. 

    That means for every $10,000 of 529 plan savings, roughly $564 counts toward the parents’ expected family contribution, potentially reducing financial aid by roughly the same amount, according to the College Savings Plans Network.

    More from Personal Finance:
    3 unexpected financial pitfalls unmarried couples needs to know
    Here’s the inflation breakdown for November 2022 — in one chart
    IRS: Why ‘early filers’ should wait to submit their tax return in 2023

    A 529 plan offers several benefits: The owner keeps control of the funds, there’s tax-free growth for qualified expenses and flexibility to change the beneficiary, Wittman said.

    The average 529 account value was $30,287 in 2021, the College Savings Plans Network reported.

    Grandparent 529 savings won’t count on the FAFSA

    Previously, grandparent-owned 529 plans negatively affected need-based financial aid because distributions counted as student income on the next year’s FAFSA, assessed at up to 50%, Wittman said.  

    However, recent FAFSA changes scrapped that rule, effective for the 2023-2024 school year, meaning “grandparents’ [529 plan] savings has no impact on the student,” she said.

    “This has real-world implications for where people save,” Wittman said.

    While many grandparents like contributing to parent-owned 529 plans rather than opening their own, “it would actually be smarter today to flip that around,” she said.  

    Why to consider colleges with price ‘flexibility’

    There’s also a lack of knowledge around college pricing, Wittman said. “This concept that public schools are cheap and private schools are expensive does not serve the narrative well.”

    “The way to think about college today is not public and private,” she said, noting that it’s better to explore which schools may have flexible versus inflexible pricing.

    Wittman said the easiest way to find schools with merit-based scholarships is by comparing the acceptance rates. Typically, when the acceptance rate is below 20%, “there’s no incentive for them to give away money,” she said.

    However, “colleges are the number one provider of scholarship dollars,” and there’s generally more money to give at private schools, Wittman said.

    Ideally, you’ll want to begin the college search during the student’s sophomore or junior year, she said. “You can’t do a great college search if you start a month before applications are due,” she said. 

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  • Vanguard sees a recession in 2023 — and one ‘silver lining’ for investors

    Vanguard sees a recession in 2023 — and one ‘silver lining’ for investors

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    The last 12 months was a year of fast-rising inflation, fast-rising interest rates and fast-rising questions about a future recession.

    Prices went up while stock markets and savings account balances went down, leaving consumers and investors dizzy and their wallets hurting.

    There may be more financial pain, that’s pretty sure — but it might not be as bad as feared, according to Vanguard’s look ahead to 2023.

    The likely recession will not send jobless rates charging sharply higher, sticker shock will fade for the price of goods, and the rise in rent and mortgages will also ease, Vanguard said.

    “On Tuesday, inflation data for November showed prices are continuing to cool. Analysts say that makes a 50-basis point increase, rather than a 75-basis-point increase, more likely.”

    The good news: This opens up chances for stocks to rebound, the asset-manager added.

    The outlook, released this week, comes as Americans are trying to guess what 2023 holds for their finances while they manage their holiday shopping budgets, and 2022 investments.

    On Tuesday, inflation data for November showed prices are continuing to cool. From October to November, the cost of living nudged up 0.1%, lower than the 0.3% forecast, the Consumer Price Index showed. Year over year, the inflation rate receded to 7.1% from 7.7% in October, according to the CPI data.

    On Wednesday, the Federal Reserve will announce its latest decision on interest rate increases. A 50-basis point increase is widely expected after four jumbo-sized 75-basis point hikes from the central bank.

    Here’s one roadmap for what’s next, as far as Vanguard’s researchers and experts can see.

    Hot inflation will cool

    Inflation rates during 2022 climbed to four-decade highs. There have been signs of easing, such as smaller-than-expected price increases in October.

    “As we step into 2023, early signs of a recovery in goods supply and softening demand could help balance supply and demand for consumption goods and bring prices lower,” the authors noted ahead of Tuesday’s CPI numbers.

    But the cost and demand of services are going to prevent a quick fall, they noted. Signs of slowing price increases are already emerging in rents and mortgages, but they will take longer to ease than prices of consumer goods, the authors said.

    That echoes the view from Treasury Secretary Janet Yellen, who said Sunday there will be “much lower inflation,” absent any unanticipated shocks to the economy.

    But while hot inflation will cool, it will still be warm to the touch. The Fed says 2% inflation is its target goal; Vanguard sees 3% inflation by the end of 2023.

    A recession is very much on the cards

    As “generationally high inflation” slowed economies across the world, the Fed and other central banks have countered with interest-rate increases to tame price increases. That “will ultimately succeed, but at a cost of a global recession in 2023,” according to Vanguard’s report. Vanguard sees a 90% chance of a recession in the United States by the end of next year.

    Vanguard is hardly alone in the recession call, so the question is how bad could the big picture look?

    In Vanguard’s view, it’s not so bad. “Households, businesses, and financial institutions are in a much better position to handle the eventual downturn, such that drawing parallels with the 1970s, 1980s, 2008, or 2020 seems misplaced,” the authors wrote.

    Job losses may be clustered

    For now, the jobless rate in a tight labor market is 3.7%, which is just a little above the lowest levels in five decades. That stands against the headline-grabbing list of companies where layoffs are mounting, notably in the tech sector.

    When a recession, in all likelihood, lands next year, “unemployment may peak around 5%, a historically low rate for a recession,” the Vanguard outlook said. As interest rates climb, the job losses “should be most concentrated in the technology and real estate sectors, which were among the strongest beneficiaries of the zero-rate environment.”

    The unemployment rate going from 3.7% to the 5% vicinity is “a sizable move,” Roger Aliaga-Díaz, Americas chief economist for Vanguard, said in a Monday press conference on the report. “But it is less dramatic of a rise than compared to past recessions perhaps.”

    Spotting the opportunities

    When interest rates go up, bond prices go down. So it’s been difficult for bonds with lower returns and “near-term pain” for investors this year, the Vanguard outlook said.

    “However the bright side of higher rates is higher interest payments. These have led our return expectations for U.S. and international bonds to increase by more than twofold,” the report said.

    Vanguard said U.S. bond return projections could be 4.1% – 5.1% annually over the next year versus its 1.4% – 2.4% return estimate last year. For U.S. stocks, the forecast could be 4.7% – 6.7% annually, while returns in emerging market equities could be between 7% and 9%.

    On Tuesday morning, stock markets are soaring higher on the cooler than expected inflation data, igniting hopes of an end of year Santa Claus rally.

    “‘There’s one silver lining of our outlook for a modest global recession. And it’s the clear silver lining of higher expected returns for investors.’”


    — Joseph Davis, Vanguard’s chief global economist

    Still, the Dow Jones Industrial Average
    DJIA,
    +0.30%
    is down nearly 5% year to date. The S&P 500
    SPX,
    +0.73%
    is off 14% in that time and for the Nasdaq Composite
    COMP,
    +0.38%
    is down more than 26%.

    When the market hits bottom is impossible to know, the outlook said — but it noted “valuations and yields are clearly more attractive than they were a year ago.”

    “There’s one silver lining of our outlook for a modest global recession. And it’s the clear silver lining of higher expected returns for investors,” said Joseph Davis, Vanguard’s chief global economist.

    “We’re long concerned that the low rate environment was both unsustainable and ultimately a tax and a headwind for savers and long term investors,” Davis said.

    But even with all the turbulence this year, “we certainly are starting to see the dividends to higher real interest rates around the world in the higher projected returns that we anticipate for investors over the coming decade.”

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  • Best stock picks for 2023: Here are Wall Street analysts’ most heavily favored choices

    Best stock picks for 2023: Here are Wall Street analysts’ most heavily favored choices

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    Following a sharp and sustained rise in interest rates, U.S. stocks have taken a broad beating this year.

    But 2023 may bring very different circumstances.

    Below are lists of analysts’ favorite stocks among the benchmark S&P 500
    SPX,
    the S&P 400 Mid Cap Index
    MID
    and the S&P Small Cap 600 Index
    SML
    that are expected to rise the most over the next year. Those lists are followed by a summary of opinions of all 30 stocks in the Dow Jones Industrial Average
    DJIA.

    Stocks rallied on Dec. 13 when the November CPI report showed a much slower inflation pace than economists had expected. Investors were also anticipating the Federal Open Market Committee’s next monetary policy announcement on Dec. 14. The consensus among economists polled by FactSet is for the Federal Reserve to raise the federal funds rate by 0.50% to a target range of 4.50% to 4.75%.

    Read: 5 things to watch when the Fed makes its interest-rate decision

    A 0.50% increase would be a slowdown from the four previous increases of 0.75%. The rate began 2022 in a range of zero to 0.25%, where it had sat since March 2020.

    A pivot for the Fed Reserve and the possibility that the federal funds rate will reach its “terminal” rate (the highest for this cycle) in the near term could set the stage for a broad rally for stocks in 2023.

    Wall Street’s large-cap favorites

    Among the S&P 500, 92 stocks are rated “buy” or the equivalent by at least 75% of analysts working for brokerage firms. That number itself is interesting — at the end of 2021, 93 of the S&P 500 had this distinction. Meanwhile, the S&P 500 has declined 16% in 2022, with all sectors down except for energy, which has risen 53%, and the utilities sector, which his risen 1% (both excluding dividends).

    Here are the 20 stocks in the S&P 500 with at least 75% “buy” or equivalent ratings that analysts expect to rise the most over the next year, based on consensus price targets:

    Company

    		 Ticker

    		 Industry

    		 Closing price – Dec. 12

    		 Consensus price target

    		 Implied 12-month upside potential

    		 Share “buy” ratings

    		 Price change – 2022 through Dec. 12
    EQT Corp.

    		 EQT Oil and Gas Production

    		 $36.91

    		 $59.70

    		 62%

    		 78%

    		 69%
    Catalent Inc.

    		 CTLT Pharmaceuticals

    		 $45.50

    		 $72.42

    		 59%

    		 75%

    		 -64%
    Amazon.com Inc.

    		 AMZN Internet Retail

    		 $90.55

    		 $136.02

    		 50%

    		 91%

    		 -46%
    Global Payments Inc.

    		 GPN Misc. Commercial Services

    		 $99.64

    		 $147.43

    		 48%

    		 75%

    		 -26%
    Signature Bank

    		 SBNY Regional Banks

    		 $122.73

    		 $180.44

    		 47%

    		 78%

    		 -62%
    Salesforce Inc.

    		 CRM Software

    		 $133.11

    		 $195.59

    		 47%

    		 80%

    		 -48%
    Bio-Rad Laboratories Inc. Class A

    		 BIO Medical Specialties

    		 $418.28

    		 $591.00

    		 41%

    		 100%

    		 -45%
    Zoetis Inc. Class A

    		 ZTS Pharmaceuticals

    		 $152.86

    		 $212.80

    		 39%

    		 87%

    		 -37%
    Delta Air Lines Inc.

    		 DAL Airlines

    		 $34.77

    		 $48.31

    		 39%

    		 90%

    		 -11%
    Diamondback Energy Inc.

    		 FANG Oil and Gas Production

    		 $134.21

    		 $182.33

    		 36%

    		 84%

    		 24%
    Caesars Entertainment Inc

    		 CZR Casinos/ Gaming

    		 $50.27

    		 $67.79

    		 35%

    		 81%

    		 -46%
    Alphabet Inc. Class A

    		 GOOGL Internet Software/ Services

    		 $93.31

    		 $125.70

    		 35%

    		 92%

    		 -36%
    Halliburton Co.

    		 HAL Oilfield Services/ Equipment

    		 $34.30

    		 $45.95

    		 34%

    		 86%

    		 50%
    Alaska Air Group Inc.

    		 ALK Airlines

    		 $45.75

    		 $61.08

    		 34%

    		 93%

    		 -12%
    Targa Resources Corp.

    		 TRGP Gas Distributors

    		 $70.42

    		 $93.95

    		 33%

    		 95%

    		 35%
    Charles River Laboratories International Inc.

    		 CRL Misc. Commercial Services

    		 $201.94

    		 $269.25

    		 33%

    		 88%

    		 -46%
    ServiceNow Inc.

    		 NOW Information Technology Services

    		 $401.64

    		 $529.83

    		 32%

    		 92%

    		 -38%
    Take-Two Interactive Software Inc.

    		 TTWO Software

    		 $102.61

    		 $135.04

    		 32%

    		 79%

    		 -42%
    EOG Resources Inc.

    		 EOG Oil and Gas Production

    		 $124.06

    		 $158.24

    		 28%

    		 82%

    		 40%
    Southwest Airlines Co.

    		 LUV Airlines

    		 $38.94

    		 $49.56

    		 27%

    		 76%

    		 -9%
    Source: FactSet

    Most of the companies on the S&P 500 list expected to soar in 2023 have seen large declines in 2022. But the company at the top of the list, EQT Corp.
    EQT,
    is an exception. The stock has risen 69% in 2022 and is expected to add another 62% over the next 12 months. Analysts expect the company’s earnings per share to double during 2023 (in part from its expected acquisition of THQ), after nearly a four-fold EPS increase in 2022.

    Shares of Amazon.com Inc.
    AMZN
    are expected to soar 50% over the next year, following a decline of 46% so far in 2022. If the shares were to rise 50% from here to the price target of $136.02, they would still be 18% below their closing price of 166.72 at the end of 2021.

    Read: Here’s why Amazon is Citi’s top internet stock idea

    You can see the earnings estimates and more for any stock in this article by clicking on its ticker.

    Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.

    Mid-cap stocks expected to rise the most

    The lists of favored stocks are limited to those covered by at least five analysts polled by FactSet.

    Among components of the S&P 400 Mid Cap Index, there are 84 stocks with at least 75% “buy” ratings. Here at the 20 expected to rise the most over the next year:

    Company

    		 Ticker

    		 Industry

    		 Closing price – Dec. 12

    		 Consensus price target

    		 Implied 12-month upside potential

    		 Share “buy” ratings

    		 Price change – 2022 through Dec. 12
    Arrowhead Pharmaceuticals Inc.

    		 ARWR Biotechnology

    		 $31.85

    		 $69.69

    		 119%

    		 83%

    		 -52%
    Lantheus Holdings Inc.

    		 LNTH Medical Specialties

    		 $54.92

    		 $102.00

    		 86%

    		 100%

    		 90%
    Progyny Inc.

    		 PGNY Misc. Commercial Services

    		 $31.21

    		 $55.57

    		 78%

    		 100%

    		 -38%
    Coherent Corp.

    		 COHR Electronic Equipment/ Instruments

    		 $35.41

    		 $60.56

    		 71%

    		 84%

    		 -48%
    Exelixis Inc.

    		 EXEL Biotechnology

    		 $16.08

    		 $26.07

    		 62%

    		 81%

    		 -12%
    Darling Ingredients Inc.

    		 DAR Food: Specialty/ Candy

    		 $61.17

    		 $97.36

    		 59%

    		 93%

    		 -12%
    Perrigo Co. PLC

    		 PRGO Pharmaceuticals

    		 $31.83

    		 $49.25

    		 55%

    		 100%

    		 -18%
    Mattel Inc.

    		 MAT Recreational Products

    		 $17.39

    		 $26.58

    		 53%

    		 87%

    		 -19%
    ACI Worldwide Inc.

    		 ACIW Software

    		 $20.75

    		 $31.40

    		 51%

    		 83%

    		 -40%
    Topgolf Callaway Brands Corp.

    		 MODG Recreational Products

    		 $21.99

    		 $32.91

    		 50%

    		 83%

    		 -20%
    Dycom Industries Inc.

    		 DY Engineering and Construction

    		 $86.03

    		 $128.13

    		 49%

    		 100%

    		 -8%
    Travel + Leisure Co.

    		 TNL Hotels/ Resorts/ Cruiselines

    		 $37.98

    		 $56.00

    		 47%

    		 75%

    		 -31%
    Frontier Communications Parent Inc.

    		 FYBR Telecommunications

    		 $25.21

    		 $36.18

    		 44%

    		 82%

    		 -15%
    Manhattan Associates Inc.

    		 MANH Software

    		 $120.06

    		 $171.80

    		 43%

    		 88%

    		 -23%
    MP Materials Corp Class A

    		 MP Other Metals/ Minerals

    		 $31.39

    		 $44.79

    		 43%

    		 92%

    		 -31%
    Lumentum Holdings Inc.

    		 LITE Electrical Products

    		 $54.45

    		 $76.44

    		 40%

    		 76%

    		 -49%
    Tenet Healthcare Corp.

    		 THC Hospital/ Nursing Management

    		 $44.22

    		 $62.00

    		 40%

    		 80%

    		 -46%
    Repligen Corp.

    		 RGEN Pharmaceuticals

    		 $166.88

    		 $233.10

    		 40%

    		 82%

    		 -37%
    STAAR Surgical Co.

    		 STAA Medical Specialties

    		 $59.57

    		 $82.67

    		 39%

    		 82%

    		 -35%
    Carlisle Cos. Inc.

    		 CSL Building Products

    		 $251.99

    		 $348.33

    		 38%

    		 75%

    		 2%
    Source: FactSet
    Wall Street’s favorite small-cap names

    Among companies in the S&P Small Cap 600 Index, 91 are rated “buy” or the equivalent by at least 75% of analysts. Here are the 20 with the highest 12-month upside potential indicated by consensus price targets:

    Company

    		 Ticker

    		 Industry

    		 Closing price – Dec. 12

    		 Consensus price target

    		 Implied 12-month upside potential

    		 Share “buy” ratings

    		 Price change – 2022 through Dec. 12
    UniQure NV

    		 QURE Biotechnology

    		 $22.99

    		 $51.29

    		 123%

    		 95%

    		 11%
    Cara Therapeutics Inc.

    		 CARA Biotechnology

    		 $11.34

    		 $23.63

    		 108%

    		 88%

    		 -7%
    Vir Biotechnology Inc.

    		 VIR Biotechnology

    		 $25.50

    		 $53.00

    		 108%

    		 75%

    		 -39%
    Dynavax Technologies Corp.

    		 DVAX Biotechnology

    		 $11.22

    		 $23.20

    		 107%

    		 100%

    		 -20%
    Thryv Holdings Inc.

    		 THRY Advertising/ Marketing Services

    		 $18.40

    		 $36.75

    		 100%

    		 100%

    		 -55%
    Artivion Inc.

    		 AORT Medical Specialties

    		 $12.93

    		 $23.13

    		 79%

    		 83%

    		 -36%
    Cytokinetics Inc.

    		 CYTK Pharmaceuticals

    		 $38.33

    		 $67.43

    		 76%

    		 100%

    		 -16%
    Harsco Corp.

    		 HSC Environmental Services

    		 $7.17

    		 $12.30

    		 72%

    		 80%

    		 -57%
    Ligand Pharmaceuticals Inc.

    		 LGND Pharmaceuticals

    		 $64.80

    		 $110.83

    		 71%

    		 100%

    		 -35%
    Corcept Therapeutics Inc.

    		 CORT Pharmaceuticals

    		 $20.84

    		 $34.20

    		 64%

    		 80%

    		 5%
    Payoneer Global Inc.

    		 PAYO Misc. Commercial Services

    		 $5.70

    		 $9.33

    		 64%

    		 100%

    		 -22%
    Xencor Inc.

    		 XNCR Biotechnology

    		 $28.69

    		 $46.71

    		 63%

    		 93%

    		 -28%
    Pacira Biosciences Inc.

    		 PCRX Pharmaceuticals

    		 $45.50

    		 $72.90

    		 60%

    		 80%

    		 -24%
    BioLife Solutions Inc.

    		 BLFS Chemicals

    		 $19.72

    		 $31.38

    		 59%

    		 89%

    		 -47%
    Customers Bancorp Inc.

    		 CUBI Regional Banks

    		 $30.00

    		 $47.63

    		 59%

    		 75%

    		 -54%
    ModivCare Inc.

    		 MODV Other Transportation

    		 $92.22

    		 $145.83

    		 58%

    		 100%

    		 -38%
    Stride Inc.

    		 LRN Consumer Services

    		 $32.56

    		 $51.25

    		 57%

    		 100%

    		 -2%
    Ranger Oil Corp. Class A

    		 ROCC Oil and Gas Production

    		 $36.98

    		 $58.00

    		 57%

    		 100%

    		 37%
    Outfront Media Inc.

    		 OUT Real Estate Investment Trusts

    		 $17.59

    		 $27.00

    		 53%

    		 83%

    		 -34%
    Walker & Dunlop Inc.

    		 WD Finance/ Rental/ Leasing

    		 $82.22

    		 $125.20

    		 52%

    		 100%

    		 -46%
    Source: FactSet
    The Dow

    Here are all 30 components of the Dow Jones Industrial Average ranked by how much analysts expect their prices to rise over the next year:

    Company

    		 Ticker

    		 Industry

    		 Closing price – Dec. 12

    		 Consensus price target

    		 Implied 12-month upside potential

    		 Share “buy” ratings

    		 Price change – 2022 through Dec. 12
    Salesforce Inc.

    		 CRM Software

    		 $133.11

    		 $195.59

    		 47%

    		 80%

    		 -48%
    Walt Disney Co.

    		 DIS Movies/ Entertainment

    		 $94.66

    		 $119.60

    		 26%

    		 82%

    		 -39%
    Apple Inc.

    		 AAPL Telecommunications Equipment

    		 $144.49

    		 $173.70

    		 20%

    		 74%

    		 -19%
    Verizon Communications Inc.

    		 VZ Telecommunications

    		 $37.95

    		 $44.60

    		 18%

    		 21%

    		 -27%
    Visa Inc. Class A

    		 V Misc.s Commercial Services

    		 $214.59

    		 $249.33

    		 16%

    		 86%

    		 -1%
    Microsoft Corp.

    		 MSFT Software

    		 $252.51

    		 $293.06

    		 16%

    		 91%

    		 -25%
    Chevron Corp.

    		 CVX Integrated Oil

    		 $169.75

    		 $191.20

    		 13%

    		 54%

    		 45%
    Cisco Systems Inc.

    		 CSCO Information Technology Services

    		 $49.30

    		 $53.76

    		 9%

    		 44%

    		 -22%
    UnitedHealth Group Inc.

    		 UNH Managed Health Care

    		 $545.86

    		 $593.30

    		 9%

    		 85%

    		 9%
    Goldman Sachs Group Inc.

    		 GS Investment Banks/ Brokers

    		 $363.18

    		 $392.63

    		 8%

    		 59%

    		 -5%
    Walmart Inc.

    		 WMT Specialty Stores

    		 $148.02

    		 $159.86

    		 8%

    		 72%

    		 2%
    JPMorgan Chase & Co.

    		 JPM Banks

    		 $134.21

    		 $143.84

    		 7%

    		 59%

    		 -15%
    Home Depot Inc.

    		 HD Home Improvement Chains

    		 $327.98

    		 $346.61

    		 6%

    		 61%

    		 -21%
    American Express Co.

    		 AXP Finance/ Rental/ Leasing

    		 $157.31

    		 $164.57

    		 5%

    		 43%

    		 -4%
    McDonald’s Corp.

    		 MCD Restaurants

    		 $276.62

    		 $288.67

    		 4%

    		 72%

    		 3%
    Johnson & Johnson

    		 JNJ Pharmaceuticals

    		 $177.84

    		 $185.35

    		 4%

    		 36%

    		 4%
    Coca-Cola Co.

    		 KO Beverages: Non-Alcoholic

    		 $63.97

    		 $66.62

    		 4%

    		 73%

    		 8%
    Boeing Co.

    		 BA Aerospace and Defense

    		 $186.27

    		 $192.69

    		 3%

    		 77%

    		 -7%
    Intel Corp.

    		 INTC Semiconductors

    		 $28.69

    		 $29.54

    		 3%

    		 13%

    		 -44%
    Walgreens Boots Alliance Inc.

    		 WBA Drugstore Chains

    		 $41.06

    		 $42.24

    		 3%

    		 17%

    		 -21%
    Merck & Co. Inc.

    		 MRK Pharmaceuticals

    		 $108.97

    		 $110.62

    		 2%

    		 65%

    		 42%
    Caterpillar Inc.

    		 CAT Trucks/ Construction/ Farm Machinery

    		 $233.06

    		 $236.23

    		 1%

    		 41%

    		 13%
    Honeywell International Inc.

    		 HON Aerospace and Defense

    		 $214.50

    		 $217.35

    		 1%

    		 54%

    		 3%
    Nike Inc. Class B

    		 NKE Apparel/ Footwear

    		 $112.07

    		 $112.58

    		 0%

    		 64%

    		 -33%
    3M Co.

    		 MMM Industrial Conglomerates

    		 $126.85

    		 $127.30

    		 0%

    		 5%

    		 -29%
    Procter & Gamble Co.

    		 PG Household/ Personal Care

    		 $152.47

    		 $150.22

    		 -1%

    		 59%

    		 -7%
    Travelers Companies Inc.

    		 TRV Multi-Line Insurance

    		 $187.11

    		 $184.24

    		 -2%

    		 18%

    		 20%
    Amgen Inc.

    		 AMGN Biotechnology

    		 $276.78

    		 $264.79

    		 -4%

    		 24%

    		 23%
    Dow Inc.

    		 DOW Chemicals

    		 $51.11

    		 $48.73

    		 -5%

    		 15%

    		 -10%
    International Business Machines Corp.

    		 IBM Information Technology Services

    		 $149.21

    		 $140.29

    		 -6%

    		 33%

    		 12%
    Source: FactSet

    Don’t miss: 10 Dividend Aristocrat stocks expected by analysts to rise up to 54% in 2023

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  • 7 Common Mistakes Made By New Real Estate Investors

    7 Common Mistakes Made By New Real Estate Investors

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    Opinions expressed by Entrepreneur contributors are their own.

    Real estate is one of the safest ways to create lasting wealth, and it is attracting more and more people each year. Investing in real estate is an exciting and lucrative adventure, provided that you don’t fall into the pitfalls of the sector. The lack of experience of beginner investors can cause them to fall for many tricks. So, here are seven common mistakes to avoid at all costs if you’re a beginner who wants to succeed in the real estate industry:

    1. Thinking that you will get rich quickly

    One of the major mistakes beginner real estate investors make is that they often think that the results will be tangible quickly. That is the outcome of the internet phenomenon: The public wants everything right away and without making any effort. Many industry gurus focus their communication in this direction, and they do not show that in order to succeed, it is necessary to have a spirit of self-sacrifice and also to work hard. In reality, patience and perseverance are required in this type of investment. Just searching for a profitable property can take several months if you don’t have a keen eye. Moreover, rushing into an investment without checking the property in question is often a bad omen.

    Related: A Beginner’s Guide to the 5 Easiest Ways to Become a Real Estate Investor

    2. Not having a strategy

    Some real estate investors prefer to take projects one day at a time, without having a precise plan of action. In this case, the risk is to end up with several properties which do not correspond to their profile. These investors embark on all sorts of projects without measuring the consequences, and they often find themselves ruined because of their poor investment choices. Having a well-defined strategy allows you to go in a precise direction. Following a strategy means ensuring that you don’t venture out in all directions and that you move in the right direction.

    3. Focusing your research on a specific city

    Another major mistake often made by beginner investors is focusing on a specific city — often close to their home or in a particular city because they have been told that its profitability is good. In reality, this way of searching drastically reduces the opportunities since these investors will feel obliged to buy a property in that city, even if the profitability is not there. On the contrary, it is necessary to expand the search in order to not miss any opportunities. It is easy to optimize the profitability of a property that is already profitable beforehand. On the other hand, a property that is not profitable will harm your project, even if you set up some optimization strategies.

    4. Omitting the negotiation stage

    In real estate, negotiation is a key step that takes place at different levels. In particular, it intervenes at the time of purchase of the property. Many real estate investors forget that a good deal is made at the time of purchase. If they buy at a too high price, that will impact the profitability of their project, whether it is a rental or a resale project. The purchase price constitutes an important variable in a real estate investment project. Keep in mind that if you don’t get a good deal at the time of the purchase, it is very likely that you won’t get a good deal on the resale.

    Related: How to Avoid the Common Pitfalls of Real Estate Investing

    5. Underestimating the cost and the scope of the work

    It is important to seek the help of professionals when you are tackling work related to real estate because costs can quickly become overwhelming. Often, beginner investors have no idea of the scope of the work to be done, and therefore they underestimate their costs. They only have a global or a partial vision of what they want to achieve, and they do not realize that the work can be much more consequent.

    6. Not checking the condition of the property

    Even if virtual visits are at the present time facilitated by technology, seeing the condition of a property in person allows you to check if it corresponds to your expectations. There is no point that can be neglected at this stage. It is particularly necessary to check the state of the common parts as well as the state of the roof, for example, with the help of a drone in order to be more precise. While visiting a property, it is also important to check the condition of the neighborhood. All this is done in order to avoid very high costs of work.

    7. Thinking that you can handle everything yourself

    In the real estate field, beginner investors tend to think that they can handle everything, either to make a bigger profit or simply because they find it difficult to delegate some of their work. This is a common mistake, as the time spent in the management of a property is valuable time that they can allocate to tasks that are more within their reach, such as searching for other properties or finding some solutions to optimize the profitability of a property they possess. In some cases, delegating this responsibility to professionals is a better solution. But be careful, delegating does not mean not controlling. It is necessary to think of always monitoring the state of the work.

    Related: Master These 6 Skills to Succeed as a Real Estate Investor

    If you’re just getting started in real estate investing, use these tips to avoid common mistakes. Remember this: It takes time to see results, don’t go in without a strategy, don’t limit your search, don’t skip the negotiation stage, don’t underestimate the cost or the work, thoroughly check the condition of the property, and don’t hesitate to delegate the work.

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    Xavier PRETERIT

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