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Tag: Personal Finance

  • 6 Tempting Investments To Avoid

    6 Tempting Investments To Avoid

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    Opinions expressed by Entrepreneur contributors are their own.

    As investors, we’re often told to be active and diversified. But are some investments not worth your time or money? Indeed, certain types of investments should be avoided at all costs. Here’s a list of common financial products and how they might affect your portfolio.

    1. Whole life insurance

    Whole life insurance costs substantially more than term insurance. Whole life premiums are typically much higher than term premiums, and the cost of whole life policies can be even higher for older individuals. It’s also important to note that since whole life policies cannot be cashed out, you can’t use them as collateral if you decide you need money from your investments in the future. Additionally, if someone dies before their policy expires (which often happens with whole life policies), their beneficiaries only receive a fraction of what they were expecting because of how much this type of insurance costs.

    In addition to these issues with cost-effectiveness and liquidity, whole life insurance also offers fewer death benefits than other types of investments due to its nature as an annuity contract instead of a mutual fund or stock portfolio; this means that there won’t be any growth potential after purchasing your plan which would otherwise come from investing in other funds or stocks over time.

    2. Low-interest saving accounts

    A low-interest savings account is an investment you can make with money that you don’t need to use immediately. Savings accounts are generally insured by the government and offer a slight interest, which is often lower than inflation. These accounts are not liquid, meaning you cannot withdraw your savings without penalty if you need them for something else. They also have high fees attached to them and may even charge high minimum balances if you aren’t putting enough money in there every month. Furthermore, since these types of investments don’t earn much interest on the cash inside them, they may lose value over time due to inflation.

    Related: How Generation Z Can Jump-start Savings (Advice Anyone Can Use)

    3. Penny stocks

    Penny stocks are low-priced shares of small companies that trade over the counter rather than through an exchange. They can be risky investments because they aren’t regulated by the Securities and Exchange Commission (SEC). This means that penny stocks are not required to follow the same strict rules as other investments, which makes them more likely to be scams.

    Penny stock investors don’t have many options for selling their shares — penny stocks typically don’t trade on any of the major exchanges where investors can sell them for cash. If you want to sell your shares, you’ll usually need to find someone who wants them badly enough that they’ll accept less than market value. And since most people have no idea what these “spare” shares are worth, it’s easy for folks posing as brokers who say they’ll buy your shares at an inflated price (or even just a flat rate) without even checking if there’s any demand for those particular shares on an actual exchange somewhere else in the world.

    Related: 5 Things Millionaires Do That Most People Don’t

    4. Gold coins

    Gold coins are not a good investment. They’re essentially just a store of value, like other precious metals. While some people may see this as an advantage in that it can be bought and sold easily (which is true), it does not generate income as stocks or bonds do — and it can also lose value if gold prices go down. If you want to buy something tangible, buy silver instead: It’s cheaper than gold on an ounce-by-ounce basis, has more industrial uses (such as being used to manufacture electronics), and has been less volatile over time than gold has been.

    Related: Why It’s Never a Bad Time to Invest in Precious Metals

    5. Hyper-aggressive growth mutual funds

    A hyper-aggressive growth fund invests in companies with high growth potential. These funds tend to invest in risky stocks, meaning they could quickly lose value if the company’s stock price falls or the economy goes into recession. The risks of these types of funds are twofold: first, there are times when the market will crash, and your investment will be lost entirely; second, even under normal conditions, you may see an overall loss over time because these types of investments tend to fluctuate in value more than other investments (like bonds). If you’re looking for an aggressive option with a chance of making some serious money, consider an aggressive growth fund instead.

    6. Complex private limited partnerships

    There are some types of investments you should avoid at all costs. One such type is a complex private limited partnership. These investments are dangerous because they often have hidden risks that can lead to significant financial losses. A good example is the Madoff Ponzi scheme, which ended with many investors losing their savings.

    Another reason you should avoid these types of investments is that they involve high tax implications, which can be challenging to understand and may require professional assistance from an accountant or other expert to comprehensively comprehend the tax laws governing them. Some companies may also try to sell you investment opportunities with very little information about what exactly it is that they’re offering. These products are often sold by unscrupulous individuals who will take advantage of people’s lack of knowledge about financial products to make quick cash off their victims’ backs without ever completing any work on their behalf (which means no profits).

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    Christopher Massimine

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  • The Federal Reserve is about to hike interest rates one last time this year. Here’s how it may affect you

    The Federal Reserve is about to hike interest rates one last time this year. Here’s how it may affect you

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    The Federal Reserve is expected on Wednesday to raise interest rates for the seventh time this year to combat stubborn inflation. 

    The U.S. central bank will likely approve a 0.5 percentage point hike, a more typical pace compared with the super-size 75 basis point moves at each of the last four meetings.

    This would push benchmark borrowing rates to a target range of 4.25% to 4.5%. Although that’s not the rate consumers pay, the Fed’s moves still affect the rates consumers see every day.

    Why a smaller rate hike may be ‘pretty good news’

    By raising rates, the Fed makes it costlier to take out a loan, causing people to borrow and spend less, effectively pumping the brakes on the economy and slowing down the pace of price increases. 

    “For most people this is pretty good news because prices are starting to stabilize,” said Laura Veldkamp, a professor of finance and economics at Columbia University Business School. “That’s going to bring a lot of reassurance to households.”

    However, “there are some households that will be hurt by this,” she added — particularly those with variable rate debt.

    For example, most credit cards come with a variable rate, which means there’s a direct connection to the Fed’s benchmark rate.

    But it doesn’t stop there.

    More from Personal Finance:
    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

    What the Fed’s rate hike means for you

    Another increase in the prime rate will send financing costs even higher for many other forms of consumer debt. On the flip side, higher interest rates also mean savers will earn more money on their deposits.

    “Credit card rates are at a record high and still increasing,” said Greg McBride, chief financial analyst at Bankrate.com. “Auto loan rates are at an 11-year high, home equity lines of credit are at a 15-year high, and online savings account and CD [certificate of deposit] yields haven’t been this high since 2008.”

    Here’s a breakdown of how increases in the benchmark interest rate have impacted everything from mortgages and credit cards to car loans, student debt and savings:

    1. Mortgages

    Although 15-year and 30-year mortgage rates are fixed and tied to Treasury yields and the economy, anyone shopping for a new home has lost considerable purchasing power, partly because of inflation and the Fed’s policy moves.

    “Though they are falling, mortgage rates are still at a more than 10-year high,” said Jacob Channel, senior economic analyst at LendingTree.

    The average rate for a 30-year, fixed-rate mortgage currently sits at 6.33%, down from mid-November, when it peaked at 7.08%.

    For would-be buyers, a 30-year, fixed-rate mortgage on a $300,000 loan would cost about $1,283 a month at last year’s 3.11% rate. If you paid today’s 6.33% instead, that would cost an extra $580 a month or $6,960 more a year and another $208,800 over the lifetime of the loan, Channel calculated.

    Adjustable-rate mortgages, or ARMs, and home equity lines of credit, or HELOCs, are pegged to the prime rate. As the federal funds rate rises, the prime rate does, as well, and these rates follow suit. Most ARMs adjust once a year, but a HELOC adjusts right away. Already, the average rate for a HELOC is up to 7.3% from 4.24% earlier in the year.

    2. Credit cards

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

    “Even those with the best credit card can expect to be offered APRs of 18% and higher,” said Matt Schulz, LendingTree’s chief credit analyst.

    But “rates aren’t just going up on new cards,” he added. “The rate you’re paying on your current credit card is likely going up, too.”

    Further, households are increasingly leaning on credit cards to afford basic necessities since incomes have not kept pace with inflation, making it even harder for those carrying a balance from month to month.

    If the Fed announces a 50 basis point hike as expected, the cost of existing credit card debt will increase by an additional $3.2 billion in the next year alone, according to a new analysis by WalletHub.

    3. Auto loans

    Even though auto loans are fixed, payments are getting bigger because the price for all cars is rising along with the interest rates on new loans. So if you are planning to buy a car, you’ll shell out more in the months ahead.

    The average interest rate on a five-year new car loan is currently 6.05%, up from 3.86% at the beginning of the year, although consumers with higher credit scores may be able to secure better loan terms.

    Paying an annual percentage rate of 6.05% instead of 3.86% could cost consumers roughly $5,731 more in interest over the course of a $40,000, 72-month car loan, according to data from Edmunds.

    Still, it’s not the interest rate but the sticker price of the vehicle that’s primarily causing an affordability crunch, McBride said.

    4. Student loans

    The interest rate on federal student loans taken out for the 2022-23 academic year already rose to 4.99%, up from 3.73% last year and 2.75% in 2020-21. It won’t budge until next summer: Congress sets the rate for federal student loans each May for the upcoming academic year based on the 10-year Treasury rate. That new rate goes into effect in July.

    Private student loans tend to have a variable rate tied to the Libor, prime or Treasury bill rates — and that means that, as the Fed raises rates, those borrowers are also paying more in interest. How much more, however, will vary with the benchmark.

    Currently, average private student loan fixed rates can range from 2.99% to 14.96%, and 2.99% to 14.86% for variable rates, according to Bankrate. As with auto loans, they vary widely based on your credit score.

    5. Savings accounts

    On the upside, the interest rates on some savings accounts are also higher after consecutive rate hikes.

    While the Fed has no direct influence on deposit rates, the rates tend to be correlated to changes in the target federal funds rate. 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, top-yielding online savings account rates are as high as 4%, much higher than the average rate from a traditional, brick-and-mortar bank, according to Bankrate.

    “Interest rates can vary substantially, especially in today’s interest rate environment in which the Fed has raised its benchmark rate to its highest level in more than a decade,” said Ken Tumin, founder of DepositAccounts.com.

    “Banks make money off of customers who don’t monitor their interest rates,” Tumin said.

    With balances of $1,000 to $25,000, the difference between the lowest and highest annual percentage yield can result in an additional $51 to $965 in a year and $646 to $11,685 in 10 years, according to an analysis by DepositAccounts.

    Still, any money earning less than the rate of inflation loses purchasing power over time. 

    Subscribe to CNBC on YouTube.

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  • First Gen Z congressman-elect says he was denied DC apartment over bad credit | CNN Politics

    First Gen Z congressman-elect says he was denied DC apartment over bad credit | CNN Politics

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    CNN
     — 

    The congressman-elect set to become the first member of Generation Z to serve in Congress said Thursday his rental application for an apartment in Washington, DC, was denied because of his “really bad” credit.

    “Just applied to an apartment in DC where I told the guy that my credit was really bad. He said I’d be fine. Got denied, lost the apartment, and the application fee. This ain’t meant for people who don’t already have money,” Maxwell Frost said in a tweet.

    Frost, an Orlando-based community organizer, made history last month when he won election in Florida’s 10th Congressional District at just 25 years old. Frost surprised party leaders with his victory in a crowded primary filled with senior political figures to replace outgoing Rep. Val Demings, before comfortably winning against his Republican opponent in a solidly blue district.

    In a Twitter thread, the congressman-elect expressed frustrations with relocating to the capital, saying that he has bad credit because he “ran up a lot of debt running for Congress for a year and a half” and that he did not make enough money working for Uber to pay for the cost of living.

    Frost said that he quit his full time job during his race’s primary, because “I knew that to win at 25 yrs old, I’d need to be a full time candidate. 7 days a week, 10-12 hours a day. It’s not sustainable or right but it’s what we had to do.”

    “As a candidate, you can’t give yourself a stipend or anything till the very end of your campaign,” he added. “So most of the run, you have no $ coming in unless you work a second job.”

    CNN has reached out to Frost’s office for comment.

    In comments to The Washington Post, Frost declined to identify the building, the size of his debt or credit score, but said the building where his application was rejected was in the city’s Navy Yard neighborhood, roughly a mile from the US Capitol. He said he lost the $50 application fee.

    Frost is not the only incoming member of Congress to have struggled to find housing in DC.

    On Twitter, he referenced New York Rep. Alexandria Ocasio-Cortez, who, in 2018 became the youngest woman elected to Congress at age 29 – and who also had a hard time as an incoming lawmaker finding affordable housing in Washington on her then-salary.

    Frost pointed out that once his congressional salary kicks in, he’ll be fine, adding that “we have to do better” for others.

    “I also recognize that I’m speaking from a point of privilege cause in 2 years time, my credit will be okay because of my new salary that starts next year,” Frost said. “We have to do better for the whole country.”

    Members of the House and Senate earn $174,000 a year, according to the Congressional Research Service, but that salary will not begin until Frost is sworn in on January 3.

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  • These are the best 10 metro areas for first-time home buyers — and how to make it more affordable no matter where you’re buying

    These are the best 10 metro areas for first-time home buyers — and how to make it more affordable no matter where you’re buying

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    The Central Business District of Pittsburgh

    J. Altdorfer Photography | Getty Images

    After bidding wars during the pandemic, demand for home purchases has fallen amid higher mortgage interest rates. That dynamic has made some markets are more attractive for first-time home buyers for 2023, according to a Zillow report released this week.

    The real estate site found the “best opportunity” for first-time buyers in metros areas with more affordable rent, less competition and a higher inventory of homes for sale.  

    “The affordability hurdle is very tough,” said Matt Hackett, manager of operations at Equity Now, a mortgage lender in Mamaroneck, New York, that operates in five states. 

    More from Personal Finance:
    Millennials may not inherit as much as they hope in the ‘great wealth transfer’
    Santa Claus rallies are a ‘meaningful’ trend. What that means for investors
    How to keep required minimum distributions invested in a down market

    One of the biggest challenges has been a sharp increase in interest rates within a short amount of time, explained Erica Davis, producing branch manager at Guild Mortgage in Myrtle Beach, South Carolina.

    Mortgage interest rates have more than doubled from early January after a series of hikes from the Federal Reserve to curb inflation in 2022. These rates have recently softened, reaching 6.41% last week.  

    Meanwhile, median home sales prices are higher year-over-year, reaching $454,900 during the third quarter of 2022, according to the Federal Reserve Bank of St. Louis.

    Still, some markets may be more affordable for buyers on a budget, Zillow’s report shows.

    10 best markets for first-time home buyers in 2023

    These are the best metros for first-time home buyers in 2023 based on mortgage and rent affordability, housing supply and the share of listings with a price cut, according to Zillow.

    1. Wichita, Kansas
    2. Toledo, Ohio
    3. Syracuse, New York
    4. Akron, Ohio
    5. Cleveland
    6. Tulsa, Oklahoma
    7. Detroit
    8. Pittsburgh
    9. St. Louis
    10. Little Rock, Arkansas

    First-time buyers may have mortgage ‘knowledge gap’

    While affordability may be a concern, experts say first-time home buyers may have more options than they expect.

    “First-time homebuyers almost always have that knowledge gap,” said Hackett. “They’re not really sure how much they can afford, and they’re not really sure how much they need for a down payment.”

    For example, many first-time home buyers don’t know about mortgages for veterans, which don’t require a down payment, or Federal Housing Administration loans with 3.5% down, he said. 

    You may also qualify for so-called conventional mortgages, backed by Fannie Mae or Freddie Mac, with down payments as low as 3%.

    However, loans with a smaller down payment come with mortgage insurance and higher interest rates, which may be reduced later, experts say. You’ll also have a bigger monthly payment with a larger mortgage.

    First-time homebuyers almost always have that knowledge gap.

    Matt Hackett

    manager of operations at Equity Now

    Davis said lower down payment mortgages may also preserve savings for future home expenses. “There’s less stress if they’re able to close and still have some money in their pocket,” she said.  

    Depending on your income and location, you may also qualify for first-time home buyer grants or programs run by state and local governments to help cover your down payment and closing costs. “It’s definitely a good option,” Hackett said, urging buyers to speak with a local mortgage expert familiar with programs in their area.  

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  • Here are 4 money moves you should make to set yourself up for financial success in 2023

    Here are 4 money moves you should make to set yourself up for financial success in 2023

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    With the end of the year approaching, it may be time to reevaluate your finances. This year has been marked by record-high inflation and multiple interest rate hikes. As the Fed attempts to rein in inflation by raising interest rates, there’s a strong possibility that the economy teeters towards a recession in the coming months. 

    If you’re concerned about the economy, you’re not alone. This summer, consumer sentiment about the economy hit historic lows. Though personal finance advice is unlikely to save you from inflation or a market downturn, Select shares some personal finance tasks and tips to complete this year to help you save at least some money and to plan for the future.

    Subscribe to the Select Newsletter!

    Our best selections in your inbox. Shopping recommendations that help upgrade your life, delivered weekly. Sign-up here.

    Check the APR on your credit card debt

    When it comes to getting your finances in order, you’ll want to consider how rising interest rates affect how much interest you pay on your debt. When the Fed increases the interest rate, or the federal funds rate, it alters the interest rate on interbank lending. This, in turn, affects how much interest you pay on your credit card debt. Credit card APRs are tied to the federal funds rate. 

    In November, the Fed implemented its sixth rate hike this year. Now, the Fed’s target interest rate range is around 4%, up from near-zero interest rates during the pandemic. This means credit card APRs have been on the rise too. According to the Federal Reserve, the average APR is 18.43% for credit cardholders paying interest, up nearly 4% from five years ago. 

    In other words, it’s likely to get even more expensive to revolve a balance on your credit card in the coming months. Of course, paying it off is easier said than done, but you may consider getting a 0% balance transfer card to help avoid paying a lot in interest.

    With a 0% balance transfer card, consumers transfer their credit card balance to a new card for a small fee, usually 3% to 5% of the balance. Cardholders then pay 0% interest on that balance before the 0% introductory period ends. 

    If you think this might be a good choice for you, you’ll likely need a good credit score (a FICO score of 670 or above). You’ll also want to make sure the balance transfer fee doesn’t exceed the amount you’d be saving in interest with the new card.

    The Citi® Diamond Preferred® Card and the Wells Fargo Reflect® Card are both good options.

    The Citi® Diamond Preferred® Card has a 21-month 0% APR introductory period on balance transfers from the date of the first transfer, after that the variable APR will be 16.74% – 27.49%. Balance transfers must be completed within 4 months of account opening.

    Citi® Diamond Preferred® Card

    • Rewards

    • Welcome bonus

      For a limited time earn a $150 Statement Credit after you spend $500 on purchases in the first 3 months of account opening.

    • Annual fee

    • Intro APR

      0% for 21 months on balance transfers; 0% for 12 months on purchases

    • Regular APR

    • Balance transfer fee

      5% of each balance transfer; $5 minimum. Balance transfers must be completed within 4 months of account opening.

    • Foreign transaction fee

    • Credit needed

    Pros

    • No annual fee
    • Balances can be transferred within 4 months from account opening
    • One of the longest intro periods for balance transfers

    Cons

    • 3% foreign transaction fee

    The Wells Fargo Reflect® Card has a 0% introductory APR for 18 months from account opening on qualifying balance transfers with a three-month extension for cardholders who make on-time minimum payments during the introductory period. There’s a 16.74% to 28.74% variable APR thereafter. Balance transfers made within 120 days qualify for the intro rate and fee.

    Wells Fargo Reflect® Card

    On Wells Fargo’s secure site

    • Rewards

    • Welcome bonus

    • Annual fee

    • Intro APR

      0% intro APR for 18 months from account opening on purchases and qualifying balance transfers. Intro APR extension for 3 months with on-time minimum payments during the intro period. 16.74% to 28.74% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min $5.

    • Regular APR

      16.74% – 28.74% variable APR on purchases and balance transfers

    • Balance transfer fee

      Introductory fee of 3% for 120 days from account opening, then up to 5% ($5 minimum)

    • Foreign transaction fee

    • Credit needed

    Pros

    • No annual fee
    • Long introductory APR period up to 21 months on purchases and qualifying balance transfers
    • 3% intro balance transfer fee ($5 minimum) for first 120 days
    • Access to Visa Signature Concierge
    • Get up to $600 cell phone protection (subject to a $25 deductible)
    • Access to My Wells Fargo Deals to earn cash back in the form of an account credit when shopping, dining

    Cons

    • No rewards
    • No welcome bonus
    • 3% fee charged on foreign transactions

    Take advantage of a high-yield savings account

    The Fed’s moves make it more expensive for consumers to borrow but rising rates also encourage people to save. When the Fed increases rates, annual percentage yields (APYs), or the interest you earn on your deposits, increases. 

    High-yield savings accounts differ from traditional savings accounts because they offer significantly higher interest rates. The national average APY on savings accounts is 0.24%, according to the Federal Deposit Insurance Corporation (FDIC). Meanwhile, the high-yield savings accounts with the highest APYs have rates that are 18 times higher than the average APY on traditional accounts. The WSJ found that people who held their deposits in traditional savings accounts at the five largest banks missed out on more than $42 billion in interest by not switching to the five highest-yield savings accounts.

    High-yield savings accounts are a good option for people looking to store their emergency funds as consumers are able to make up to six withdrawals a month without paying fees. Select ranked LendingClub High-Yield Savings and UFB High Rate Savings as some of the best high-yield savings accounts.

    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?

    Pros

    • Strong APY
    • No minimum balance required
    • No monthly fees
    • Free ATM card and no ATM fees

    Cons

    • $100 minimum opening deposit required, though there’s no minimum balance after that
    • No physical branch locations

    UFB High Rate Savings

    UFB High Rate 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

    Consider maxing out your 401(k)

    If you have access to a 401(k) through your employer, you’ll have until the end of the year to contribute up to the $20,500 limit for 2022. People above the age of 50 can make catch-up contributions for a total limit of $27,000. 

    401(k) contributions are considered tax deductible. This means 401(k) contributions reduce your taxable income and therefore, the amount you pay in taxes. If you’re able to invest more in your 401(k), you may consider increasing your contribution amount to further reduce your taxable income. 

    Use up your FSA money

    FSAs are flexible spending accounts that allow people to use pretax money for out-of-pocket medical expenses. These accounts are offered through your employer, and the money is ‘use it or lose it’. This means that you must spend the money before the end of the year or risk losing it. The contribution limit in 2022 for FSAs is $2,850.

    Note that some employers offer grace periods of a few months after the year ends, but you should check with your employer. If you have an FSA, you can use your funds on everything from out-of-pocket doctor’s expenses to prescription medications to sunscreen.

    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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  • This fund beats the S&P 500 by using just 75 of its components. Here’s how it works.

    This fund beats the S&P 500 by using just 75 of its components. Here’s how it works.

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    What worked well during the years-long bull market through 2021 — a focus on growth, regardless of price — has ground to a halt this year. The rebirth of the value style of investing — and modest valuations overall — has taken hold.

    The approach taken by the Invesco S&P 500 GARP ETF has paid off through both bull and bear markets.

    Let’s begin with a 10-year chart comparing total returns with dividends reinvested for the Invesco S&P 500 GARP ETF
    SPGP,
    +0.67%
    and the SPDR S&P 500 ETF Trust
    SPY,
    +0.78%    ,
    which tracks the benchmark S&P 500:


    FactSet

    So far this year, SPGP is down 12%, while SPY is down 16%. But the long-term chart shows significant and consistent outperformance for SPGP, even during the bull market.

    The S&P 500 GARP Index

    GARP stands for “growth at a reasonable price.” SPGP tracks the S&P 500 GARP Index, which is reconstituted and rebalanced twice a year, on the third Fridays of June and December. The next change occurs Dec. 16.

    S&P Dow Jones Indices assigns a growth score to each component of the S&P 500 by averaging the three-year compound annual growth rate (CAGR) for earnings and sales per share.

    The top 150 components of the S&P 500 by growth score are eligible for inclusion in the GARP index. Those 150 are ranked by “quality/value composite score,” which is the average of these three ratios:

    • Financial leverage — total debt to book value.

    • Return on equity — trailing 12 months’ earnings per share divided by book value per share.

    • Earnings-to-price — 12 months’ earnings per share divided by the share price.

    The top 75 of the 150 by QV rankings are then included in the GARP index and weighted by the growth score, with portfolio weightings ranging from 0.5% to 5%.

    There is a weighting limitation of 40% to any one of the 11 S&P sectors.

    Addressing concentration risk

    The benchmark S&P 500 Index
    SPX,
    +0.75%
    is weighted by market capitalization, which means it is more heavily concentrated than you might expect — success is rewarded, with rising stocks more heavily weighted over time.

    That can backfire during a bear market, with Amazon.com Inc.
    AMZN,
    +2.14%
    down 47% and Tesla Inc.
    TSLA,
    -0.34%
    down 51% this year, to name two prominent examples.

    Looking at the SPDR S&P 500 ETF Trust
    SPY,
    +0.78%    ,
    which is the first and largest exchange traded fund and tracks the benchmark index by holding all of its components, six companies (Apple Inc.
    AAPL,
    +1.21%    ,
    Microsoft Corp.
    MSFT,
    +1.24%    ,
    Amazon, both common share classes of Alphabet Inc.
    GOOGL,
    -1.30%
     
    GOOG,
    -1.26%
    and Berkshire Hathaway Inc.
    BRK.B,
    +0.06%
    ) make up 19.2% of the portfolio.

    That percentage has come down this year, but a lot of risk remains concentrated in a handful of companies. (Apple alone makes up 6.4% of the SPY portfolio. Tesla is now the ninth-largest holding, making up 1.4% of the portfolio.)

    One way to address high concentration in an index fund is to use an equal-weighted approach, which Mark Hulbert recently discussed.

    For the Invesco S&P 500 GARP ETF, the underlying index’s selection methodology has resulted in much less portfolio concentration than we see in SPY, with the top five holdings making up 10.9% of the portfolio.

    Here are the 10 largest holdings of SPGP:

    Company

    		 Ticker

    		 Share of portfolio
    Regeneron Pharmaceuticals, Inc.

    		 REGN,
    +0.15%         		2.49%
    Cigna Corporation

    		 CI,
    +0.39%         		2.26%
    Everest Re Group, Ltd.

    		 RE,
    +0.24%         		2.21%
    Vertex Pharmaceuticals Incorporated

    		 VRTX,
    +1.18%         		1.98%
    D.R. Horton, Inc.

    		 DHI,
    -0.39%         		1.97%
    Expeditors International of Washington, Inc.

    		 EXPD,
    +0.23%         		1.96%
    Incyte Corporation

    		 INCY,
    +0.10%         		1.92%
    Goldman Sachs Group, Inc.

    		 GS,
    -0.51%         		1.83%
    Ebay Inc.

    		 EBAY,
    +1.67%         		1.81%
    Pfizer Inc.

    		 PFE,
    +3.07%         		1.73%
    Source: FactSet

    Click on the tickers for more information about any company, ETF or index in this article.

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

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

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  • If you need help covering large wedding expenses, consider these 5 personal loan lenders

    If you need help covering large wedding expenses, consider these 5 personal loan lenders

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    With the average cost of a wedding at $28,000 according to The Knot, you may be exploring alternative ways to finance your special day.

    Personal loans have become a popular way to fund a variety of large expenses, including weddings. This is because they’re a more affordable alternative to credit cards since they typically carry a much lower interest rate (though the rate you receive will depend on your credit score). 

    If you’re considering using a loan to cover some or all of your wedding expenses, CNBC Select rounded up five of the best personal loan lenders for you to consider. When compiling our list, we evaluated dozens of lenders and looked at key factors like interest rates, fees, loan amounts and term lengths offered, plus other features including how your funds are distributed, autopay discounts, customer service and how fast you can get your funds. (Read more about our methodology below.)

    The best wedding loans

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    Our best selections in your inbox. Shopping recommendations that help upgrade your life, delivered weekly. Sign-up here.

    Best overall

    LightStream Personal Loans

    • Annual Percentage Rate (APR)

      5.99% to 22.49%* when you sign up for autopay

    • Loan purpose

      Debt consolidation, home improvement, auto financing, medical expenses, wedding and others

    • Loan amounts

    • Terms

    • Credit needed

    • Origination fee

    • Early payoff penalty

    • Late fee

    Pros

    • Same-day funding available through ACH or wire transfer
    • Loan amounts up to $100,000
    • No origination fees, no early payoff fees, no late fees
    • LightStream plants a tree for every loan

    Cons

    • Requires several years of credit history
    • No option to pay your creditors directly
    • Not available for student loans or business loans
    • No option for pre-approval on website (but pre-qualification is available on some third-party lending platforms)

    Who’s this for? LightStream is known for offering loans with some of the lowest interest rates (plus the ability to receive an even lower interest rate when you enroll in autopay). This lender provides loans for nearly every purpose except for higher education and small business, which means using the funds to cover wedding expenses is fair game. 

    Terms range from 24 to 144 months — the longest-term option among the lenders on this list. A longer loan term typically means lower monthly payments, which can make repaying the debt feel a little more affordable. Just keep in mind that a longer term also means you’ll accrue more interest charges over the long run.

    LightStream does not charge any origination fees, administration fees or early payoff fees.

    Best for borrowing larger amounts

    SoFi Personal Loans

    • Annual Percentage Rate (APR)

      7.99% to 23.43% when you sign up for autopay

    • Loan purpose

      Debt consolidation/refinancing, home improvement, relocation assistance or medical expenses

    • Loan amounts

    • Terms

    • Credit needed

    • Origination fee

    • Early payoff penalty

    • Late fee

    Pros

    • No origination fees, no early payoff fees, no late fees
    • Unemployment protection if you lose your job
    • DACA recipients can apply with a creditworthy co-borrower who is a U.S. citizen/permanent resident by calling 877-936-2269
    • Can have more than one SoFi loan at a time (state-permitting) 
    • May accept offer of employment (to start within the next 90 days) as proof of income
    • Co-applicants may apply

    Cons

    • Applicants who are U.S. visa holders must have more than two years remaining on visa to be eligible
    • No co-signers allowed (co-applicants only)

    Who’s this for? SoFi offers personal loan amounts of up to $100,000 depending on creditworthiness, which can be ideal for individuals who need to borrow larger amounts of money to cover their wedding expenses.

    SoFi allows borrowers to choose between a variable or fixed APR — most other personal loans only come with a fixed interest rate. Variable rates can go up and down over the lifetime of your loan, which means you could potentially save if the APR goes down (but the APR can also go up depending on economic conditions). However, fixed rates guarantee you’ll have the same monthly payment for the duration of the loan’s term, which makes it easier to budget for repayment.

    Best for no fees

    Marcus by Goldman Sachs Personal Loans

    • Annual Percentage Rate (APR)

      6.99% to 24.99% APR when you sign up for autopay

    • Loan purpose

      Debt consolidation, home improvement, wedding, moving and relocation or vacation

    • Loan amounts

    • Terms

    • Credit needed

    • Origination fee

    • Early payoff penalty

    • Late fee

    Pros

    • No origination fees, no early payoff fees, no late fees
    • Will send direct payment to up to 10 creditors (for debt consolidation)
    • Monthly VantageScore updates
    • Earn a one-month payment vacation (interest-free) after making 12 on-time consecutive payments
    • Ability to choose your due date when you accept the loan (and again up to two more times after that)

    Cons

    • Does not accept joint applications and/or co-signers
    • Not the fastest funding (can take a week or 10 business days)
    • Slightly tougher approval requirements (especially for larger loans/lower interest)

    Who’s this for? Marcus by Goldman Sachs Personal Loans doesn’t charge any origination fees, early payoff fees, or late fees. By avoiding these fees, taking on this loan makes paying for your wedding just a little more affordable, and you won’t have to worry about accruing penalty charges for paying back the entire loan early.

    Term lengths vary from 36 to 72 months. Marcus also has a soft inquiry tool on its website, so potential borrowers can look at possible loan options based on their credit report without impacting their credit score.

    Best for lower credit scores

    Upstart Personal Loans

    • Annual Percentage Rate (APR)

    • Loan purpose

      Debt consolidation, credit card refinancing, home improvement, wedding, moving or medical

    • Loan amounts

    • Terms

    • Credit needed

      Credit score of 300 on at least one credit report (but will accept applicants whose credit history is so insufficient they don’t have a credit score)

    • Origination fee

      0% to 10% of the target amount

    • Early payoff penalty

    • Late fee

      The greater of 5% of last amount due or $15, whichever is greater

    Pros

    • Open to borrowers with fair credit (minimum 300 score)
    • Will accept applicants who have insufficient credit history and don’t have a credit score
    • No early payoff fees
    • 99% of personal loan funds are sent the next business day after completing required paperwork before 5 p.m. Monday through Friday

    Cons

    • High late fees
    • Origination fee of 0% to 10% of the target amount (automatically withheld from the loan before it’s delivered to you)
    • $10 fee to request paper copies of loan agreement (no fee for eSigned virtual copies)
    • Must have a Social Security number

    Who’s this for? Upstart is ideal for individuals with a low credit score or even no credit history. It considers factors like education, employment, credit history and work experience. Term lengths are a bit limited, though, compared to other more flexible options; you can choose either a three-year or five-year loan.

    There are a few fees involved with this loan. Upstart charges an origination fee of up to 10% of the loan amount. And while there is no early payoff fee, this lender does charge a late fee of 5% of the last amount due or $15, whichever is greater.

    Best for next-day funding

    Discover Personal Loans

    • Annual Percentage Rate (APR)

    • Loan purpose

      Debt consolidation, home improvement, wedding or vacation

    • Loan amounts

    • Terms

      36, 48, 60, 72 and 84 months

    • Credit needed

    • Origination fee

    • Early payoff penalty

    • Late fee

    Pros

    • No origination fees, no early payoff fees
    • Same-day decision (in most cases)
    • Option to pay creditors directly
    • 7 different payment options from mailing a check to pay by phone or app

    Cons

    • Late fee of $39
    • No autopay discount
    • No cosigners or joint applications

    Who’s this for? With Discover Personal Loans, you can receive your money as early as the next business day provided that your application was submitted without any errors (and the loan was funded on a weekday). So if you need funding in a pinch so you can start booking your venue and other services, this lender may be appealing.

    While there are no origination fees, Discover does charge a late fee of $39 if you fail to repay your loan on time each month. There’s no penalty for paying your loan off early or making extra payments in the same month to cut down on the interest. 

    FAQs

    What is a wedding loan?

    A wedding loan is simply a personal loan that is used to cover wedding expenses. Personal loans are a form of installment credit that can be a more affordable way to finance the big expenses in your life. In addition to weddings, you can use a personal loan for debt consolidation, home renovations, travel and more.

    How do wedding loans work?

    Most personal loan terms range anywhere from six months to seven years. The longer the term, the lower your monthly payments will be, but they usually also have higher interest rates, so it’s best to elect for the shortest term you can afford.

    The cash from a personal loan is usually delivered directly to your checking account. Once you receive the money, you have to pay back the lender in monthly installments, usually starting within 30 days.

    Your monthly loan bill will include your installment payment plus interest charges. Although none of the lenders on our list have early payoff penalties, sometimes lenders charge a fee if you make extra payments to pay your debt down quicker.

    See if you’re pre-approved for a personal loan offer.

    How big of a wedding loan can I get?

    Lenders offer a wide range of personal loan sizes, from $500 to $100,000. Before you apply, consider how much you can afford to make as a monthly payment, as you’ll have to pay back the full amount of the loan, plus interest.

    Will a wedding loan impact my credit score?

    As with any other form of credit, wedding loans and other personal loans can impact your credit score positively or negatively. Applying for a personal loan will trigger a hard inquiry so you should expect a slight dip at first, but using a personal loan to diversify your credit mix and making on-time payments can improve your score in the long run.

    How is my wedding loan rate decided?

    Your interest rate will be decided based on your credit score, credit history and income, as well as other factors like the loan’s size and term. Generally, loans with longer terms have higher interest rates than loans you pay back over a shorter period of time.

    Select now has a widget where you can put in your personal information and get matched with personal loan offers without damaging your credit score.

    Common personal loan definitions you should know

    Here are some common personal loan terms you need to know before applying.

    • Co-applicants or joint applications: A co-applicant is a broad term for another person who helps you qualify by attaching their name (and financial details) to your application. A co-applicant can be a co-signer or a co-borrower. Having a co-applicant can be helpful when your credit score isn’t so great, or if you’re a young borrower who doesn’t have much credit history. If your co-applicant has a good credit score, you might be offered better terms, including qualifying for a lower APR and/or a bigger loan. At the same time, both applicants’ credit scores will be affected if you don’t pay back your loan, so be sure that your co-applicant is someone you feel comfortable sharing financial responsibility with. 
    • Co-signers: A co-signer agrees to help you qualify for the loan, but they are only responsible for making payments if you are unable to. The co-signer does not receive the loan, nor do they necessarily make decisions about how it is used. However, the co-signers credit will be negatively affected if the main borrower misses payments or defaults.
    • Co-borrower: Unlike a co-signer, a co-borrower is responsible for paying back the loan and deciding how it is used. Co-borrowers are usually involved in decisions about how the loan is used. Some lenders will only consider two co-borrowers who share a home or business address, as this is a firm indicator that they are sharing the responsibility of money in mutually beneficial ways. Both co-borrowers’ credit scores are on the hook if either one stops making payments or defaults.
    • Direct payments: Some lenders offer direct payments when you select debt consolidation as the reason for taking out a personal loan. With direct payments, the lender pays your creditors directly, and then deposits any leftover funds into your checking or savings account. Until you see your account balance is fully paid off, it’s best to keep making payments so that you don’t get hit with additional late fees and interest charges.
    • Early payoff penalty: Before you accept a loan, look to see if the lender charges an early payoff or prepayment penalty. Because lenders expect to get paid interest for the full term of your loan, they could charge you a fee if you make extra payments to pay your debt down quicker. The fees could equal either the remaining interest you would have owed, a percentage of your payoff balance or a flat rate.
    • Origination fee: An origination fee is a one-time upfront charge that your lender subtracts from your loan to pay for administration and processing costs. It is usually between 1% and 5%, but sometimes it is charged as a flat-rate fee. For example, if you took out a loan for $20,000 and there was a 5% origination fee, you would only receive $19,000 when you got your funds. Your lender would get $1,000 of the loan off the top, and you’d still have to pay back the full $20,000 plus interest. It’s best to avoid origination fees if possible. Having a good to excellent credit score helps you qualify for loans that don’t have origination or administration fees. 
    • Unsecured versus secured loans: Most personal loans are unsecured, meaning they are not tied to collateral. However, if your credit score is less-than-stellar and you’re finding it hard to qualify for the best loans, you can sometimes use a car, house or other assets to act as collateral in case you default on your payments. When you put an asset up as collateral, you are giving your lender permission to repossess it if you don’t pay back your debts on time and in full.

    Bottom line

    Selecting the personal loan that’s right for you can make large expenses, like a wedding, feel more affordable. Pay attention to features like low or no fees, ability to receive quick funding and the maximum loan amount you can apply for.

    Our methodology

    To determine which personal loans are the best, Select analyzed dozens of U.S. personal loans offered by both online and brick-and-mortar banks, including large credit unions, that come with no origination or signup fees, fixed-rate APRs and flexible loan amounts and terms to suit an array of financing needs.

    When narrowing down and ranking the best personal loans, we focused on the following features:

    • No origination or signup fee: None of the lenders on our best-of list charge borrowers an upfront fee for processing your loan.
    • Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you lock in an interest rate for the duration of the loan’s term, which means your monthly payment won’t vary, making your budget easier to plan.
    • Flexible minimum and maximum loan amounts/terms: Each lender provides a variety of financing options that you can customize based on your monthly budget and how long you need to pay back your loan.
    • No early payoff penalties: The lenders on our list do not charge borrowers for paying off loans early.
    • Streamlined application process: We considered whether lenders offered same-day approval decisions and a fast online application process. 
    • Customer support: Every loan on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
    • Fund disbursement: The loans on our list deliver funds promptly through either electronic wire transfer to your checking account or in the form of a paper check. Some lenders (which we noted) offer the ability to pay your creditors directly.
    • Autopay discounts: We noted the lenders that reward you for enrolling in autopay by lowering your APR by 0.25% to 0.5%.
    • Creditor payment limits and loan sizes: The above lenders provide loans in an array of sizes, from $500 to $100,000. Each lender advertises its respective payment limits and loan sizes, and completing a preapproval process can give you an idea of what your interest rate and monthly payment would be for such an amount.

    After reviewing the above features, we sorted our recommendations by best for overall financing needs, borrowing larger amounts, no fees, low credit scores and next-day funding.

    Note that the rates and fee structures advertised for personal loans are subject to fluctuate in accordance with the Fed rate. However, once you accept your loan agreement, a fixed-rate APR will guarantee interest rate and monthly payment will remain consistent throughout the entire term of the loan. Your APR, monthly payment and loan amount depend on your credit history and creditworthiness. To take out a loan, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more. 

    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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  • Wall Street banks to cut bonuses ahead of expected slowdown

    Wall Street banks to cut bonuses ahead of expected slowdown

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    Lydia Moynihan, New York Post reporter, joins CNBC’s ‘Squawk Box’ to explain why Wall Street bonuses are set to decline by an expected 20% this year.

    04:14

    Wed, Dec 7 20227:23 AM EST

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  • ‘It’s possible the market can rally’: Financial advisors say a recession isn’t inevitable

    ‘It’s possible the market can rally’: Financial advisors say a recession isn’t inevitable

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    Ascentxmedia | E+ | Getty Images

    ‘It’s possible that the market can rally’

    There’s a difference between what CEOs forecast for the economy and how the market will perform, Karen Firestone, chairman and CEO of Aureus Asset Management, said Tuesday during the CNBC Financial Advisor Summit.

    That’s because investors try to get ahead of what’s coming and price those expectations into stocks, Firestone said.

    “The market always anticipates slowdowns and recoveries,” she said, adding that people inevitably resume their buying when they believe stocks are sufficiently discounted.

    She reminded investors that the market bottomed in March 23, 2020 “after it had fallen 34% and we hadn’t even locked down for more than a week. That was the beginning of Covid, but it was the beginning of a bull market.”

    “And so yes,” she said, “I think it’s possible that the market can rally.”

    ‘I think we need to…be very, very granular’

    Another problem with sweeping generalizations and predictions for stocks is that “everything in this market right now is moving asynchronously,” said Jenny Harrington, CEO and portfolio manager at Gilman Hill Asset Management, in New Canaan, Connecticut.

    Although there’s been a slowdown in the housing market, Harrington pointed out, airline and hotel companies are seeing an uptick in profits.

    “I think we need to right now be very, very granular,” she said.

    More from Personal Finance:
    Robinhood to pay 1% ‘match on consumer contributions to IRAs
    4 key year-end moves to ‘control your tax reporting destiny’
    Why more workers need access to retirement savings

    For her clients, Firestone is on the lookout for discounts in the market.

    ‘There are opportunities in sectors and in stocks that have had their own internal recession because of what’s happened with the pandemic, or coming out of it,” Firestone said. For example, stocks in the advertising sector are trading at lower prices than usual.

    “We can say, ‘At these prices, there’s something to look forward to,’” she said.

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  • ‘Gaslighters have two signature moves’: Are you being gaslighted at work? Here’s how to recognize the signs.

    ‘Gaslighters have two signature moves’: Are you being gaslighted at work? Here’s how to recognize the signs.

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    Are you less happy at work since you befriended that new recruit? Have they told you stories about how colleagues have constantly undermined them? Or do you have a boss who excludes you from key meetings — and then asks why you did not attend a meeting even though you are pretty sure you were not invited to begin with? If so, you may be working with a gaslighter.

    Gaslighters, as the name suggests, cast themselves in a positive light — friend or confidante who is here to help — but actually operate much more effectively in the shadows. Merriam-Webster named “gaslighting” the word of the year. Searches for the word on merriam-webster.com surged 1,740% in 2022 over the prior year year, despite there not being an event that the publisher — known for its dictionaries — could point to as a cause of the spike.

    It defines gaslighting as “psychological manipulation of a person usually over an extended period of time that causes the victim to question the validity of their own thoughts, perception of reality, or memories and typically leads to confusion, loss of confidence and self-esteem, uncertainty of one’s emotional or mental stability, and a dependency on the perpetrator.”

    Perhaps the reasons were more personal — or professional — than political. My social media feed is now full of thought pieces on how to spot one of these saboteurs. The comments sections read like the show notes of a True Crime podcast — gruesome yet hard to turn away from. 

    The term was coined in a 1938 play, “Gas Light,” a psychological thriller set in Victorian London and written by Patrick Hamilton.

    The term was further popularized after George Cukor’s 1944 film, “Gaslight,” based on the play, in which Gregory (Charles Boyer) tries to convince his wife Paula (Ingrid Bergman) that she has lost her reason. While he turns on the lights in the attic while searching for hidden jewels, the gaslight flickers in the rest of the house. He tells Paula that she is merely imagining the dimming of the lights.

    The workplace is fertile ground for such behavior, given what’s at stake: money, power, status, promotion, rivalry and the intrigue that often comes with office politics. 

    I’m in the business of helping people work out their conflicts at work. None of this surprises me. In fact, I dedicated a whole chapter in my book, “Jerks at Work,” to gaslighters. 

    “‘For gaslighters, slow and steady wins the race, and the best ones make friends with their victims first.’”

    What has surprised me is how wide-ranging the definition of “gaslighting” has become. Everything from “not respecting personal boundaries” to “talking so much shit about me I couldn’t get hired for two years” seems to fall under the umbrella. 

    What I’ve learned from my doom scrolling is that the word “gaslighter” — probably the worst name to bestow on a colleague or boss — seems to refer to anyone who’s done a whole bunch of bad things to us at work, especially things that involve humiliation. 

    So what really is a gaslighter, and why is it important to distinguish one from, say, a demeaning boss with a chip on their shoulder and a penchant for public shaming?

    If we stick to the clinical definition, gaslighters have two signature moves: They lie with the intent of creating a false reality, and they cut off their victims socially. 

    They position themselves as both savior and underminer, creating a negative and fearful atmosphere, spreading gossip and taking credit for other people’s work. They are often jealous and resentful, and aim to undercut others in order to further their own position.

    You may also be an unwitting pawn in the gaslighting of another colleague. The gaslighter might try to convince you that Johnny is trying to steal your leadership role on a project, and encourage you to freeze him out in the cafeteria at lunch time, or simply be extra wary about sharing important information.

    For gaslighters, slow and steady wins the race, and the best ones make friends with their victims first. For this reason, it could also be considered a form of workplace harassment.

    They often flatter them, make them feel special. Others create a fear of speaking up in their victims by making their position at work seem more precarious than it is. And the lies are complex, coming at you in layers. It takes a long time to realize your status as a victim of gaslighting, and social isolation is a necessary part of this process. 

    “‘It takes a long time to realize your status as a victim of gaslighting, and social isolation is a necessary part of this process.’”

    But there’s a difference between an annoying coworker or micromanaging boss, and a gaslighter, who lies and conspires to undermine your position. “The gaslighter doesn’t want you to improve or succeed — they’re out to sabotage you,” according to the careers website Monster.com. “They will accuse you of being confused or mistaken, or that you took something they said the wrong way because you are insecure. They might even manipulate paper trails to “prove” they are right.”

    Examples cited by Monster.com: “You know you turned in a project, but the gaslighter insists you never gave it to them. You can tell someone has been in your space, moving things around, or even on your computer, but you don’t have proof. You are the only one not included in a team email or meeting invite, or intentionally kept out of the loop. Then when you don’t respond or show up, you are reprimanded.”

    Knowing this, what can you do to prevent yourself from becoming a target? First, recognize that gaslighters don’t wear their strategy on their sleeve. Flattery, making you feel like you’re a part of a special club, or questioning your expertise are not things that raise gaslighting alarm bells. 

    Rather than looking out for mean behavior by a boss or coworker, look out for signs of social isolation. A boss who wants to cut you off from coworkers and other leaders should raise red flags, even if the reason is that “you’re better than them.” 

    Second, recognize that lie detection is a precarious — and from a scientific perspective, almost impossible — business. Don’t try to become a lie detector, instead take notes, so you can put your “gaslighter” on notice that you are wise to their tactics. You can also use the notes as evidence if you decide to later raise the situation with Human Resources. 

    Here are some ways to beat the gaslighter: Send emails with “a summary of today’s meeting” so you can document the origin of ideas and make sure they don’t steal credit from you. Furthermore, document things that happened in person, and share it with your would-be gaslighter. And speak up at meetings. Don’t allow yourself to be browbeaten into submission. 

    The more you document, the more difficult it will be to be victimized. But a word of warning: Don’t try to confront gaslighters — instead, go to your social network to build your reality back up. Trying to beat these folks at their own game is a losing strategy. But these small things, done early in a working relationship, can work wonders. 

    Tessa West is a New York University social psychology professor with a particular interest in workplace behavior, and author of “Jerks at Work: Toxic Coworkers and What to Do About Them.“

    Related stories:

    ‘We’re like rats in a cage’: Sick and tired of their jobs, American workers strive to regain their agency, their time — and their sanity‘

    People are seeking a genuine connection with their colleagues’ — one that goes beyond ‘Hollywood Squares’ Zoom meetings. Not all workers are happy with remote work.‘

    The backlash to quiet quitting smacks of another attempt by the ruling class to get workers back under their thumbs:’ Am I wrong?

    We want to hear from readers who have stories to share about the effects of increasing costs and a changing economy. If you’d like to share your experience, write to readerstories@marketwatch.com. Please include your name and the best way to reach you. A reporter may be in touch.

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  • This little-known but spot-on economic indicator says recession and lower stock prices are all but certain

    This little-known but spot-on economic indicator says recession and lower stock prices are all but certain

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    An obscure and arcane economic indicator suggests that Federal Reserve Chairman Jerome Powell was wrong when he said at his Nov. 30 news conference that “There is a path to a soft, a softish landing” for the U.S. economy.

    This indicator traces to the large divergence between consumers’ views about the economy in general and their immediate personal financial circumstances in particular. A recession has occurred each time over the past four decades in which this divergence even approached its current level.

    To measure this divergence, this indicator focuses on the Conference Board’s Consumer Confidence Index (CCI) and the University of Michigan’s Consumer Sentiment Survey (UMI). While there is some overlap between what these two indices measure, there is a significant difference in emphasis, according to James Stack of InvesTech Research, from whom I first heard about this indicator. The CCI more heavily reflects consumers’ attitudes towards the overall economy, according to Stack, while the UMI is more heavily weighted towards their immediate personal circumstances.

    Perhaps not surprisingly, the CCI currently is higher than the UMI. Even as American consumers’ attitudes towards their immediate financial situations continue to sour, due to everything from inflation to higher mortgage rates to a softening housing market, the overall economy has proven to be remarkably resilient. Yet more evidence of this resilience was the Dec. 2 jobs report, in which the Labor Department reported the creation of a much-higher-than-expected number of new jobs.

    What is more surprising is the magnitude of the current divergence. According to the latest data releases from the Conference Board and the University of Michigan in late November, the CCI is 43.4 percentage points higher than the UMI. That’s close to a record; the latest reading stands at the 98th percentile of all monthly readings of the past four decades.

    Furthermore, as you can see from the chart above, a recession was in the economy’s not-too-distant future (shadowed bars) the past four times this difference rose to even 25 percentage points. 

    Consumer sentiment and the stock market

    Stark as this chart’s correlations are, it’s difficult for a sample with just four observations to be statistically significant. To test this indicator’s potential, I next measured its ability to predict the S&P 500’s
    SPX,
    -1.96%
    inflation-adjusted total return over the subsequent one- and five-year periods. The table below reflects data since 1979, which is when monthly data for both of these consumer indices first began to be reported.

    When divergence between CCI and UMI was…

    		 S&P 500’s average total real return over subsequent 12 months

    		 S&P 500’s average total real return over subsequent 5 years (annualized)
    In the highest 10% of monthly readings since 1979

    		 -0.4%

    		 -3.1%
    In the lowest 10% of monthly readings since 1979

    		 +14.3%

    		 +14.8%

    The differences shown in this table are statistically significant at the 95% confidence level that statisticians often use when determining if a pattern is genuine.

    The bottom line? It’s not good news, for the economy in general or the U.S. stock market in particular, that consumers are so much more upbeat about the overall economy than they are about their immediate financial circumstances.

    Mark Hulbert is a regular contributor to MarketWatch. His Hulbert Ratings tracks investment newsletters that pay a flat fee to be audited. He can be reached at mark@hulbertratings.com

    More: The U.S. job market is strong, but layoffs are on the rise. Is this a good — or bad — time to ask for a raise?

    Also read: Bigger paychecks are good news for America’s working families. Why does it freak out the Fed?

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  • Iran morality police status unclear after ‘closure’ comment

    Iran morality police status unclear after ‘closure’ comment

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    CAIRO — An Iranian lawmaker said Sunday that Iran’s government is “paying attention to the people’s real demands,” state media reported, a day after a top official suggested that the country’s morality police whose conduct helped trigger months of protests has been shut down.

    The role of the morality police, which enforces veiling laws, came under scrutiny after a detainee, 22-year-old Mahsa Amini, died in its custody in mid-September. Amini had been held for allegedly violating the Islamic Republic’s strict dress codes. Her death unleashed a wave of unrest that has grown into calls for the downfall of Iran’s clerical rulers.

    Iran’s chief prosecutor Mohamed Jafar Montazeri said on Saturday the morality police “had been closed,” the semi-official news agency ISNA reported. The agency did not provide details, and state media hasn’t reported such a purported decision.

    In a report carried by ISNA on Sunday, lawmaker Nezamoddin Mousavi signaled a less confrontational approach toward the protests.

    “Both the administration and parliament insisted that paying attention to the people’s demand that is mainly economic is the best way for achieving stability and confronting the riots,” he said, following a closed meeting with several senior Iranian officials, including President Ebrahim Raisi.

    Mousavi did not address the reported closure of the morality police.

    The Associated Press has been unable to confirm the current status of the force, established in 2005 with the task of arresting people who violate the country’s Islamic dress code.

    Since September, there has been a reported decline in the number of morality police officers across Iranian cities and an increase in women walking in public without headscarves, contrary to Iranian law.

    Montazeri, the chief prosecutor, provided no further details about the future of the morality police or if its closure was nationwide and permanent. However he added that Iran’s judiciary will ‘‘continue to monitor behavior at the community level.’’

    In a report by ISNA on Friday, Montazeri was quoted as saying that the government was reviewing the mandatory hijab law. “We are working fast on the issue of hijab and we are doing our best to come up with a thoughtful solution to deal with this phenomenon that hurts everyone’s heart,” said Montazeri, without offering details.

    Saturday’s announcement could signal an attempt to appease the public and find a way to end the protests in which, according to rights groups, at least 470 people were killed. More than 18,000 people have been arrested in the protests and the violent security force crackdown that followed, according to Human Rights Activists in Iran, a group monitoring the demonstrations.

    Ali Alfoneh, a senior fellow at the Arab Gulf States Institute in Washington, said Montazeri’s statement about closing the morality police could be an attempt to pacify domestic unrest without making real concessions to protesters.

    ‘‘The secular middle class loathes the organization (morality police) for restricting personal freedoms,” said Alfoneh. On the other hand, the “underprivileged and socially conservative class resents how they conveniently keep away from enforcing the hijab legislation” in wealthier areas of Iran’s cities.

    When asked about Montazeri’s statement, Iranian Foreign Minister Hossein Amirabdollahian gave no direct answer. ‘‘Be sure that in Iran, within the framework of democracy and freedom, which very clearly exists in Iran, everything is going very well,’’ Amirabdollahian said, speaking during a visit to Belgrade, Serbia.

    The anti-government demonstrations, now in their third month, have shown no sign of stopping despite a violent crackdown. Protesters say they are fed up after decades of social and political repression, including a strict dress code imposed on women. Young women continue to play a leading role in the protests, stripping off the mandatory Islamic headscarf to express their rejection of clerical rule.

    After the outbreak of the protests, the Iranian government hadn’t appeared willing to heed the protesters’ demands. It has continued to crack down on protesters, including sentencing at least seven arrested protesters to death. Authorities continue to blame the unrest on hostile foreign powers, without providing evidence.

    But in recent days, Iranian state media platforms seemed to be adopting a more conciliatory tone, expressing a desire to engage with the problems of the Iranian people.

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  • ‘I’m paycheck to paycheck.’ I make $350K a year, but have $88K in student loans, $170K in car loans and a mortgage I pay $4,500 a month on. Do I need professional help?

    ‘I’m paycheck to paycheck.’ I make $350K a year, but have $88K in student loans, $170K in car loans and a mortgage I pay $4,500 a month on. Do I need professional help?

    [ad_1]

    I’m the first of my generation to own a home and the first to earn this much annually and don’t want to mess this up. How, specifically, can a financial adviser help me?


    Getty Images

    Question: By the end of 2022, I will have made $350,000 before taxes as the sole breadwinner and head of household. This is a great starting point and I’m very aware how blessed we are to be in this position, but I’m always looking ahead on how to improve. I currently have $88K left in student loans (originally close to $150K) and very little credit card debt (less than $2K with more than $25K available). I have two auto loans totaling $170K for two electric vehicles at 5% interest.

    I’ve recently been offered a $200K HELOC at 9%, which would help me bring down some of my monthly payments and do some small home repairs and improvements, but I want to make the right moves. And I’ve also been presented with a few long-term real estate investment opportunities that are rental properties out of state and are currently bringing it 10-12% ROI.  But my biggest concern is that after taxes, 401(k) contributions, bills, savings and mortgage ($4,500), on paper I’m paycheck to paycheck. I’d like to use this HELOC to consolidate debt while also participating in some of these investment opportunities. I’m the first of my generation to own a home and the first to earn this much annually and don’t want to mess this up. How, specifically, can a financial adviser help me? (Looking for a new financial adviser too? This tool can help match you with an adviser who might meet your needs.)

    Answer: You have a few questions to tackle here, so let’s go one by one. The first being the HELOC. Yes, HELOCs can be a good way to consolidate debt, but the rate you’re being offered isn’t favorable, as average HELOC rates are a little over 6%. “I would ask if 9% is the best rate you can get, because it appears a bit high,” says Chris Chen, certified financial planner at Insight Financial Strategists. What’s more, “I would like you to consider the potential impact that our Fed policy and inflation are having on interest rates, as HELOCs usually have variable interest rates and we’re in an environment with rising rates. You may start at 9% and end up significantly higher,” says Chen. 

    What’s more, your student loans, car loans and mortgage are all likely less than 9%, so it’s not likely that consolidation via a HELOC would save you money. “You may want to start somewhere different, like the snowball method, where you focus on one loan, usually the smallest one, and direct all of your resources to pay off that loan while maintaining payments on the others,” says Chen. This method could work to finish off your student loans and maybe one of your car loans, to start with. 

    Have an issue with your financial adviser or have questions about hiring a new one? Email picks@marketwatch.com.

    As for those real estate investments, what do you really know about those returns? “With regards to real estate investments, I assume that the 10% to 12% ROI you speak of is the income that you would be getting from the investment. If so, that’s very high and often when you get a return that is significantly higher than the norm, there’s something else that makes the investment less desirable. Be careful,” says Chen. (Looking for a new financial adviser too? This tool can help match you with an adviser who might meet your needs.)

    Certified financial planner Kaleb Paddock says you may actually want to work with a money coach before you work with a financial adviser. Whereas a financial adviser assists with developing investment strategies and long-term financial plans, a money coach offers a more educational experience and focuses on shorter term goals for money management. “A money coach will help you with paying off all of your debts, maximize your cash flow and help you create systems and processes to direct your money proactively,” says Paddock. 

    While having a high income is great, there’s a concept called Parkinson’s Law, which essentially states that your spending will always rise to meet your income no matter how high that income rises, explains Paddock. “Working with a money coach will help you defeat Parkinson’s Law, eliminate your debt and then enable you to supercharge your investing and life planning with a financial adviser,” says Paddock.

    A financial adviser could help too, and Danielle Harrison, certified financial planner at Harrison Financial Planning, says to look for one who does comprehensive financial planning and can help you create a more holistic plan for your money. “They can assist you in the creation of both short and long-term goals and then help you by giving guidance on the financial decisions and opportunities you are presented with,” says Harrison.

    A financial adviser would also help you take a long-term approach to your money and help you create a spending plan where you don’t feel like you’re living paycheck to paycheck on a $350,000 salary. “Everyone has blind spots when it comes to their finances, so finding a competent financial partner can be invaluable,” says Harrison. (Looking for a new financial adviser too? This tool can help match you with an adviser who might meet your needs.)

    Have an issue with your financial adviser or have questions about hiring a new one? Email picks@marketwatch.com.

    *Questions edited for brevity and clarity.

    The advice, recommendations or rankings expressed in this article are those of MarketWatch Picks, and have not been reviewed or endorsed by our commercial partners.

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  • The IRS reminds Americans earning over $600 on PayPal, Venmo, or Cash App transactions to report their earnings

    The IRS reminds Americans earning over $600 on PayPal, Venmo, or Cash App transactions to report their earnings

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    If you use third-party payment platforms, like PayPal, Venmo or Cash App, to collect payments for your side gig or business, the Internal Revenue Service (IRS) wants to remind you to report payments of at least $600.

    This rule is aimed at individuals who run a side hustle, small business or do part-time work. So if you’re just sending money to friends for a restaurant bill or a vacation, or collecting a one-time payment for selling something online, this won’t apply to you.

    Subscribe to the Select Newsletter!

    Our best selections in your inbox. Shopping recommendations that help upgrade your life, delivered weekly. Sign-up here.

    Before 2022, third-party transactions for business owners and side hustlers followed different thresholds: individuals needed to report gross payments exceeding $20,000 and report earnings if they had more than 200 such transactions, according to the IRS. But as a result of the American Rescue Plan Act, any transactions made after March 11, 2021 that exceed $600 must be reported to the IRS, regardless of how many of those transactions you’ve had.

    These earnings were already taxable so this is not a change in tax law, but rather just a reporting change.

    In order to report these earnings and transactions, you’ll need to file Form 1099-K. According to the IRS, you should receive this form from each third-party payment platform you received transactions through. If you incorrectly receive the form for personal transactions, the IRS recommends you contact the payment platform for a correction or to attach an explanation to your tax return.

    How to prepare to file taxes as a business owner

    Tax season already feels daunting for individuals, but if you’re a business owner — and a new business owner at that — it can feel even more stressful. If you anticipate filing Form 1099-K for this year, make sure you keep an up-to-date record of your transactions, balance sheet and other financial documents. Otherwise, inaccuracies when filing could trigger an IRS audit.

    It also helps to work with a professional bookkeeper or accountant who can help you get organized and make sense of your tax liability so you don’t feel blindsided at the last minute. If you need to hire a professional, consider using a business credit card, like the Ink Business Unlimited® Credit Card or the American Express Blue Business Cash Card, so you can get rewarded for the business expense. The Ink Business card lets you earn 1.5% cash back on all business-related expenses and the Blue Business Cash card gives you 2% cash back on eligible business purchases.

    Ink Business Unlimited® Credit Card

    • Rewards

      Earn 1.5% cash back on every purchase made for your business

    • Welcome bonus

      Earn $900 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening

    • Annual fee

    • Intro APR

      0% for the first 12 months from account opening on purchases; N/A for balance transfers

    • Regular APR

    • Balance transfer fee

      Either $5 or 5% of the amount of each transfer, whichever is greater

    • Foreign transaction fee

    • Credit needed

    Blue Business Cash™ Card from American Express

    On the American Express secure site

    • Rewards

      Earn 2% cash back on all eligible purchases on up to $50,000 per calendar year, then 1% cash back earned is automatically credited to your statement

    • Welcome bonus

      Earn a $250 statement credit after you make $3,000 in purchases on your Card in your first 3 months.

    • Annual fee

    • Intro APR

      0% for 12 months on purchases from date of account opening

    • Regular APR

    • Balance transfer fee

    • Foreign transaction fee

    • Credit needed

    TurboTax Self-Employed

    On TurboTax’s secure site

    • Cost

      Costs may vary depending on the plan selected – see breakdown by plan in the description below

    • Mobile app

    • Live support

    • Better Business Bureau rating

    Pros

    • Step-by-step guidance with a Q&A format that is easy to follow
    • TurboTax Live provides on-demand advice and a final review from a tax expert or CPA
    • Live Full Service has a tax expert prepare, sign, and file your return
    • Accuracy and maximum refund guaranteed*
    • Audit support, which provides free assistance if you get an IRS or other tax notice

    Cons

    • More costly than other software programs
    • Live expert assistance plans have additional costs

    Cost breakdown by plan:

    Save an additional $20 on TurboTax Self-Employed – prices below do not reflect discount; click “Learn More” for details

    • Self-employed (for personal and business income and expenses): $89* federal, $39* per state
    • Live self-employed (includes help from tax experts): $199* federal, $49* per state
    • Full Service Live self-employed (includes help from tax experts): $389* federal, $49* per state

    *Click here for TurboTax offer details and disclosures

    H&R Block

    On H&R Block’s secure site

    • Cost

      Costs may vary depending on the plan selected – see breakdown by plan in the description below

    • Mobile app

    • Live support

    • Better Business Bureau rating

    Pros

    • Simple step-by-step guidance that’s easy to follow
    • Unlimited on-demand chat or video support with Online Assist plans
    • Ability to speak to a tax expert who has an average of 10 years experience (costs extra)
    • Over 11,000 physical locations so you can meet with a tax expert in-person
    • Maximum refund guarantee, or H&R Block will refund the plan fees you paid
    • Audit support guarantee, which provides free assistance if you get an IRS or other tax notice
    • 100% accuracy, or H&R Block will reimburse you for any penalties or interest up to $10,000

    Cons

    • Plans that include speaking with a live tax expert cost more for federal returns
    • One of the more costly software programs

    Cost breakdown by plan:

    • Self-employed (for personal and business income and expenses): $91.99 federal, $44.99 per state per state
    • Online Assist Self-employed (includes help from tax experts): $194.99 federal, $44.99 per state

    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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  • Inflation and credit-card debt are on the rise, despite a strong job market. Tell us how the economy is affecting you.

    Inflation and credit-card debt are on the rise, despite a strong job market. Tell us how the economy is affecting you.

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    We want to hear from readers who have stories to share about the effects of increasing costs and a changing economy. If you’d like to share your experience, write to readerstories@marketwatch.com. Please include your name and the best way to reach you. A reporter may be in touch.

    For many people living in the U.S., these are tough — and confusing — times.

    On Friday, the Labor Department reported 263,000 new jobs in November, while the unemployment rate held steady at 3.7%. Layoffs remain low, despite mass job cuts in the tech sector. Average hourly wages have also risen 5.1% in the past year, but still lag behind inflation for many workers. And there were 10.3 million job openings in October — slightly down from the previous month’s 10.7 million. 

    Some people might see the latest economic data as both challenging and confusing.

    After all, the cost of living rose 7.7% on the year in October. The once red-hot housing market is finally cooling, thanks to mortgage rates that have more than doubled over the last year amid the Federal Reserve’s attempts to rein in inflation, and rents, while moderating, have surged from pre-pandemic levels. Borrowing money to cover increased precarity is becoming more expensive too, with the average credit-card APR at 19.2% as of Nov. 30, according to Bankrate.

    “‘It’s just mind-boggling, the disconnect that we’ve seen.’”

    Given all the conflicting signals, economists say it can be difficult for consumers to know exactly how to feel about the economy right now. “It’s not new, this disparity between the actual facts on the ground about what’s going on in the economy and the sentiment,” said Heidi Shierholz, president of the Economic Policy Institute, a left-leaning think tank. 

    “I remember this summer it was just unambiguously the strongest jobs recovery we’ve had in decades,” she added. “There’s just absolutely zero chance that we were in a recession — not only were we not in a recession, we were in just an extraordinarily fast recovery — and the polling, a huge share of people actually thought we were in a recession. It’s just mind-boggling, the disconnect that we’ve seen.”

    Still, the fact that inflation is eating into people’s savings — and that essential goods like food, energy and housing have spiked in cost — is bound to make many people unhappy. 

    Struggling to pay for rent and food

    “Going into the pandemic, more than seven out of every 10 extremely low-income renters were already spending more than half of their income on rent. And then the pandemic hits; we saw a lot of low-wage workers lose their jobs and see an income decline,” said Andrew Aurand, vice president for research at the National Low Income Housing Coalition. “Then in 2021, we see this huge spike in prices. For a variety of reasons, they’ve struggled for a long time, and since the pandemic, it’s gotten even worse.”

    Moderate-income Americans are struggling too. Maybe you can’t afford your favorite family meals, as the price of grocery store and supermarket purchases has jumped by 12.4% from last year. Or maybe you’re putting off a trip to see family this holiday season thanks to the higher cost of airfare, or you’re worried about losing your job as some business leaders warn of a recession. Perhaps you’re forced to rely on credit cards and personal loans, as credit-card debt is up 15% from a year ago.

    MarketWatch has chronicled many of these changes, detailing renters’ frustrations, families’ tough choices at the grocery store, and the reality faced by would-be home buyers sidelined by higher rates and dwindling affordability. 

    But we would like your help telling an ongoing story about the American economy, centering the experiences of everyday people. Our readers know better than anyone about how today’s economic conditions have impacted their daily lives.

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  • This 82-year-old retiree makes makes moose calls

    This 82-year-old retiree makes makes moose calls

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    Butch Phillips, an 82-year-old member of the Penobscot Nation, etches 18-inch long moose call horns from birch bark he harvests off tribal land. While some moose calls he gives away to local hunters, others have sold at auction for as much as $3,200 and some sit in museums.

    “It’s very exciting calling a moose. You can hear them coming. Snuffing and grunting,” said Phillips, who hunts a moose each year on tribal land, the largest being 940 pounds. He also sometimes calls moose just to watch them and study them.

    Based in Milford, Maine, Phillips has been making the moose calls, which are hornlike devices used to attract moose when hunting, for about 30 years with a wooden-handled knife his late wife bought him. He has more orders than he can keep up with, due in part to some local media coverage and word-of-mouth. He hopes to pass down his skills to his grown sons.

    Phillips retired 31 years ago from telecommunications jobs with NYMEX and AT&T
    T,
    -0.49%    ,
    and he’s been filling his time with his etching talents ever since.

    “I just can’t imagine being retired with nothing to do. I think I’d go crazy,” Phillips said.

    Plus, in the winter, etching gives him something productive to do to pass time.

    “There’s not a lot you can do outdoors. It gives me something to do rather than just sitting around. Can you imagine doing that for 31 years?” Phillips said.

    Phillips used to make moose calls by peeling a piece of bark off a tree and using it for the day and tossing it aside. Then he started tying spruce roots around the bark to help keep the shape and use it again and again. Hunters started asking for his moose calls and his work spread by word-of-mouth.

    Phillips in a 14-foot birch bark canoe that he built.


    Credit: Butch Phillips

    “Some hunters will use a roadside cone to call a moose. I wanted to do it the traditional way. A large majority of native hunters use a birch bark call,” Phillips said.

    He uses a variety of tools, but the knife given to him by his late wife is his most treasured tool.

    “The blade’s pretty much worn down. But I treasure it. It’s very special,” Phillips said.

    As he became more adept at making moose calls, Phillips started making more permanent models, refining the workmanship and using thicker bark that was suitable for etching.

    “I decided to do etching like they did in the old days. Everything they used to make, they carved. My artwork evolved. I try to keep the older designs alive. I’ve taken symbols like the Wabanaki symbol and incorporated them into the art to keep them alive. I use plants and trees as fillers,” Phillips said.

    “In most of my art work, I try to combine people, plants and animals. We always memorialize our ancestors. And plants and animals are what we owe gratitude to for keeping us alive,” Phillips said. “In our prayers, we always give thanks to ancestors, plants and animals. There’s a theme.”

    Phillips said he writes up explanations of the symbols so each buyer knows what the designs mean. Diamond shapes, for example, represent wigwams, he said. More often these days his buyers are collectors rather than moose hunters.

    Phillips is an expert in his materials.

    “All bark is not created equal. There’s curly bark, thick, thin, white, dark, gray. I use bark that is thick and pliable and doesn’t separate into layers,” Phillips said.

    With winter bark, it’s brown with a thick rind on the inside. He has to take it off the tree carefully and scrape away the rind to make designs. He can approach the etching in two ways – either scraping away the entire background and leaving just a thin image, or carve images onto rind. Summer bark has no rind and is just yellow.

    His museum-quality pieces have used winter bark with an elaborate scraping process that leaves thin details for designs. Those are the toughest to do, he said.

    Phillips approaches each moose call with an open mind and has no preconceived idea of what the designs will be. The bark just speaks to him.

    “I never plan on paper what it’s going to look like. Most of the time I have no idea until it evolves,” Phillips said.

    In the center of the device, he often puts an image of a moose or a moose head. For special orders, he might be asked to incorporate an image of a hawk or favorite dog or even a woodpecker, in one case. He adds touches like a flower, acorns or moose tracks to fill in blank areas.

    “Each side is balanced because nature is balanced,” Phillips said. “Every design is unique.”

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  • Millions suffer from long Covid — and it costs them $9,000 a year in health-care expenses, on average

    Millions suffer from long Covid — and it costs them $9,000 a year in health-care expenses, on average

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    The Covid-19 unit at United Memorial Medical Center in north Houston.

    Carolyn Cole | Los Angeles Times | Getty Images

    Long Covid has affected as many as 23 million Americans to date — and it’s poised to have a financial impact rivaling or exceeding that of the Great Recession. By one estimate, the chronic illness will cost the U.S. economy $3.7 trillion, with extra medical costs accounting for $528 billion.

    Costs on a household and national scale are tough to quantify because the illness — also known as long-haul Covid, post-Covid or post-acute Covid syndrome — is so new. Anyone with a prior Covid-19 infection is susceptible, regardless of factors such as age, health or vaccine status.

    Symptoms, which number in the hundreds, can range from mild to severe and may persist for months or even years.

    David Cutler, an economist at Harvard University who projected the $3.7 trillion economic cost of long Covid, estimates the individual medical costs of the disease to be about $9,000 a year, on average. However, typical costs can range from roughly $3,700 up to almost $14,000, Cutler said.

    More from Your Health, Your Money

    Here’s a look at more stories on the complexities and implications of long Covid:

    Costs can be much higher, depending on the severity of illness. And because symptoms often impact a person’s ability to work, someone suffering from long Covid may not be able to lean on a regular paycheck — or employer-sponsored health insurance — to help cover those medical bills.

    Cutler’s financial estimate draws on prior research into treatment for myalgic encephalomyelitis, a condition also known as chronic fatigue syndrome, or ME/CFS.

    Dr. Greg Vanichkachorn, medical director of the Mayo Clinic’s Covid Activity Rehabilitation Program, said those estimates are the best approximation right now, since treatment and evaluation for long Covid are similar to those for ME/CFS. There is no cure or approved treatment for ME/CFS; as with long Covid, patient symptoms are merely treated or managed.

    “I think it is important to note that this, again, is an estimate,” Vanichkachorn said. “As new treatment measures come out, things could get more expensive or, hopefully, more affordable.”

    “That’s the nature of the word ‘long-haul’ — it can be an open box of costs for a while,” Vanichkachorn said.

    ‘People are trying all sorts of treatments’

    Getting an official long Covid diagnosis can be challenging, which can compound early expenses.

    The afflicted may undergo a battery of tests to rule out other ailments, for example. Or doctors may refer patients to specialists for treatment if they’re unfamiliar with long Covid or unwilling to entertain it as a possibility.

    Medical professionals typically treat infectious disease by identifying the invasive organism and attacking it. But that’s not what’s happening with long Covid.

    Instead, doctors treat symptoms of the disease, not the disease itself, said Dr. Jeff Parsonnet, an infectious disease physician who started the Post-Acute Covid Syndrome clinic at Dartmouth Hitchcock Medical Center.

    Some of the most common long Covid symptoms include fatigue, post-exertional malaise, chronic pain, cognitive dysfunction (also known as “brain fog”), neurological tremors, depression, anxiety and cardiac or pulmonary impairment, according to the U.S. Department of Health and Human Services. Long Covid can also cause other chronic conditions such as diabetes, myalgic encephalomyelitis or chronic fatigue syndrome and heart disease, HHS said.

    Treatment is more about symptom management: If a patient experiences fatigue, doctors may recommend physical therapy; if pain, then pain medication; if brain fog, perhaps speech or occupational therapy; if depression or insomnia, perhaps sleep studies, counseling or psychiatric evaluation.

    “The real difficulty in treating patients with long Covid is, we don’t know what causes it,” Parsonnet said. “People are trying all sorts of treatments, but it’s guesswork at this point.

    “They don’t cure anything, but they help people cope better,” he said, describing the treatments as “labor intensive and expensive.”

    Health insurance is essential — if you can get it

    Health insurance may cover some or most expenses associated with diagnosis and treatment — that is, for those who have it.

    Here’s what that looks like for three patients with long Covid:

    Uninsured and weighing specialist visits against rent

    Rosa Santana

    Source: Julia Santana

    Rosa Santana, 56, is a self-employed yoga instructor in south Florida. She doesn’t have health insurance, and so she can’t afford to visit specialists, despite feeling like she’s “been living in a different body” since a Covid infection in May 2020.

    “Every time I go somewhere, I know it’s going to be $300 or $400, and [I wonder], ‘Will I make my rent?’” Santana said of doctor visits.

    Yoga used to be a form of health care for her. Now, it doesn’t offer the relief it used to; doing a headstand can cause heart palpitations and dizziness for days afterward.

    Long Covid has impacted Santana’s ability to work, and her income stream to cover any medical bills. Before, she was like the “Energizer bunny”; now, she schedules two private yoga sessions with clients and it’s “time to rest,” she said.

    Hitting annual out-of-pocket max with a single infusion

    Donna Pohl

    Source: Donna Pohl

    Donna Pohl hits her insurance plan’s yearly out-of-pocket maximum — about $3,500 — after just one infusion for common variable immunodeficiency, or CVID.

    Pohl, 56, was healthy before a severe case of Covid, for which she was hospitalized in fall 2021. Now, CVID — a complication resulting from long Covid — puts her at increased risk of infections. Without insurance, Pohl would pay more than $10,000 for each infusion; she needs them monthly.  

    Pohl, who lives in Bettendorf, Iowa, has a roster of 10 doctors, including a primary care physician and nine specialists.

    In early 2022, she was diagnosed with Mast Cell Activation Syndrome, a disease that causes severe allergic reactions. She’s had pneumonia three times in a year. Pohl falls often due to “neuropathy,” a type of nerve damage; she ruptured a ligament in her left hand in a recent fall and needs surgery to repair it.  

    “I’m a year out, and I’m still getting new symptoms,” she said.

    Pohl, a nurse practitioner at a hospital, counts herself lucky in one sense: She can’t work her grueling emergency-room shifts right now, but the hospital kept her job (and her employer-sponsored health insurance) intact.

    I’m a year out, and I’m still getting new symptoms

    Donna Pohl

    nurse practitioner

    Without insurance coverage, costs for Pohl’s 156 medical claims through October this year would have amounted to more than $114,000, records show.

    Like many who suffer from long Covid, Pohl seeks relief from crippling symptoms wherever it’s available.

    That means she pays about $300 to $400 a month, on average, for many supplements and therapies that aren’t covered by insurance: chiropractic work, nutrition consultations and hyperbaric oxygen, which has “by far” been the best treatment, she said.

    She lives on 60% of her prior income from a long-term disability insurance policy — which, in the best-case scenario, will continue until early 2024.

    COBRA coverage and a $4,000 deductible

    Sam Norpel and her family. Norpel, 48, second from the right, got Covid-19 in December 2021 and hasn’t recovered. This chronic illness, known as long Covid, impacts up to 23 million Americans.

    Kirstie Donohue

    Sam Norpel, 48, lost her job in June. Debilitating symptoms — including unpredictable bouts of broken speech, cognitive issues, chronic fatigue and severe migraines with prolonged screen time — made it impossible for the former e-commerce executive to keep working.

    Norpel, who lives outside Philadelphia, was able to negotiate that the employer pay her COBRA premiums for a year so she could keep her employer-sponsored health insurance.

    Even with the health plan, the family paid roughly $4,000 out of pocket to hit the plan’s annual deductible. Norpel’s husband, who’d been out of work to care for their kids, is planning to return to the labor force partly to avoid losing workplace health coverage.

    ‘People … do get better,’ but it’s hard to see specialists

    There are nearly 250 post-Covid clinics in the U.S., according to Survivor Corps data as of early November. (A provider with multiple physical clinics is only counted once.) The list is growing steadily: There were 178 in January.

    Even so, skyrocketing demand for specialists to treat long Covid means the afflicted can spend up to a year waiting for an appointment, according to the U.S. Department of Health and Human Services.

    Norpel reached out to the Mayo Clinic in April, but the next available consultation was about four months later, in August.

    That’s the nature of the word ‘long-haul’ — it can be an open box of costs for a while.

    Dr. Greg Vanichkachorn

    medical director of the Mayo Clinic’s Covid Activity Rehabilitation Program

    An additional hurdle: She also had to pay her way to get there — a hotel room for a week and round-trip airfare from Pennsylvania to Minnesota. She also can’t get a follow-up appointment with a neurologist until February next year.

    “There are so many of us now that it’s taking months to see professionals,” she said of long Covid patients.

    When it comes to treatment, however, time is of the essence. Early intervention — generally less than four months from infection — has yielded better outcomes for patients, Vanichkachorn said.

    “Despite all the doom and gloom out there, people actually do get better,” he said.

    Patients at his clinic typically return to their normal, baseline function four to six months after treatment starts, he explained.

    New study raises serious concerns over long Covid impact

    Time alone generally doesn’t cure long Covid symptoms; it often requires some form of rehabilitation. Months of low activity can lead to serious physical deconditioning, compounding patients’ malaise. Physical and occupational rehab helps strengthen muscles and aids patients in reframing their daily lives as they recover, Vanichkachorn said.

    “People are really sick of being sick,” he said. “They try to push themselves way too hard. “It’s really difficult to tell people we have to go slower, and that’s the only way we can get you better as fast as you can.”

    Treatment delays can have broader financial impacts, too. Patients are more likely to be denied financial assistance from disability insurance without a diagnosis and certifications from specialists, HHS said. They may also face more challenges requesting workplace accommodations.

    Despite slow progress, patients and medical experts remain optimistic. The U.S. government has more than 72 active long Covid research programs in place, according to HHS. One of them, the RECOVER initiative, led by the National Institutes of Health, has about 7,000 patients enrolled at clinical sites. The CDC’s Innovative Support For Patients with SARS-CoV-2 Infections (or, INSPIRE) is enrolling up to 6,000 adults.

    “The scale of long Covid morbidity and the breadth of its clinical manifestations represent an unprecedented, but not insurmountable, challenge,” according to the HHS’ National Research Action Plan on Long COVID.

    The research is still in its early stages, Vanichkachorn said.

    “We may have a brand-new treatment regimen two months from now and people can get suddenly get better,” he said.

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  • Home Page – MarketWatch

    Home Page – MarketWatch

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    Golden Dragon China ETF pulls back after record monthly rally in November

    The Invesco Golden Dragon China ETF started December with a pullback, after enjoying a record monthly rally in November amid increasing signs that China was starting to back off from the zero-COVID policy. The ETF, which tracks American depositary shares (ADS) of China-based companies that only list in the U.S., slipped 0.9% in premarket trading Thursday, after running up 9.6% on Wednesday and 41.8% in November. The pullback comes as futures for the S&P 500 tacked on 0.4%, after the index jumped 3.1% on Wednesday. The Golden Dragon ETF’s biggest decliner ahead of Thursday’s open was electric vehicle maker XPeng Inc.’s stock, which dropped 6.0% after rocketing a daily record 47.3% on Wednesday. Elsewhere, shares of Nio Inc. fell 2.0%, Alibaba Group Holding Ltd. shed 2.5%, Li Auto Inc. gave up 3.6%, Tencent Music Entertainment Inc. declined 0.9% and Pinduoduo Inc. was down 2.3%.

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  • Looking for a new credit card but not sure what to get? Use this tool to find the best one for you

    Looking for a new credit card but not sure what to get? Use this tool to find the best one for you

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    When it comes to finding the right credit card, you’ll want to consider a variety of factors. For instance, what types of credit cards can you get given your credit score? What do you like using rewards for — travel or cash-back? Are you willing to pay an annual fee?

    With so many different types of credit cards on the market, it can be hard to know which one is right for you. For that reason, Select has launched a credit card marketplace.

    The marketplace is designed to help you find the best credit card based on your lifestyle. With Select’s marketplace, people can search for cards based on credit score requirements, types of credit cards and card issuers. It’s free to browse and doesn’t require entering any personal information.

    Click here to check out Select’s Credit Card Marketplace

    Your credit score plays a big part in what type of credit card you can qualify for — most rewards credit cards require cardholders to have at least a good FICO score (or a 670 and above). The credit card marketplace allows people to filter for cards based on their credit scores, so consumers can see what cards they’re eligible for even if they have less than stellar credit. Just remember that credit card issuers look at factors beyond your credit score, such as income and the length of your credit history, so a certain credit score will not guarantee your approval for a card.

    The credit card marketplace also allows you to search for credit cards based on your lifestyle and financial needs. If you want a card that earns you miles and points so you can take that destination trip to Bali, Select has you covered: you can filter for travel cards or cards with no foreign transaction fees in the marketplace. Or if you need a 0% APR card to make gift purchases for the holiday season, you can filter for that too. The marketplace also has card options for students.

    Whatever your needs are —whether it’s a no-annual fee card, a cash-back card, a business card — the marketplace has options for you.

    And of course, if you want to search for cards offered by certain credit card issuers, you can do so through the marketplace. For instance, if you aren’t eligible for any more Chase credit cards because of its 5/24 rule, you can filter your search to only show American Express or Capital One cards.

    Regardless of what type of credit card you’re looking for, the credit card marketplace can help you narrow down your search to find the right card for your needs, and it’s just a click away.

    Click here to check out Select’s Credit Card Marketplace

    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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