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  • 20 dividend stocks with high yields that have become more attractive right now

    20 dividend stocks with high yields that have become more attractive right now

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    Income-seeking investors are looking at an opportunity to scoop up shares of real estate investment trusts. Stocks in that asset class have become more attractive as prices have fallen and cash flow is improving.

    Below is a broad screen of REITs that have high dividend yields and are also expected to generate enough excess cash in 2023 to enable increases in dividend payouts.

    REIT prices may turn a corner in 2023

    REITs distribute most of their income to shareholders to maintain their tax-advantaged status. But the group is cyclical, with pressure on share prices when interest rates rise, as they have this year at an unprecedented scale. A slowing growth rate for the group may have also placed a drag on the stocks.

    And now, with talk that the Federal Reserve may begin to temper its cycle of interest-rate increases, we may be nearing the time when REIT prices rise in anticipation of an eventual decline in interest rates. The market always looks ahead, which means long-term investors who have been waiting on the sidelines to buy higher-yielding income-oriented investments may have to make a move soon.

    During an interview on Nov 28, James Bullard, president of the Federal Reserve Bank of St. Louis and a member of the Federal Open Market Committee, discussed the central bank’s cycle of interest-rate increases meant to reduce inflation.

    When asked about the potential timing of the Fed’s “terminal rate” (the peak federal funds rate for this cycle), Bullard said: “Generally speaking, I have advocated that sooner is better, that you do want to get to the right level of the policy rate for the current data and the current situation.”

    Fed’s Bullard says in MarketWatch interview that markets are underpricing the chance of still-higher rates

    In August we published this guide to investing in REITs for income. Since the data for that article was pulled on Aug. 24, the S&P 500
    SPX,
    -0.29%
    has declined 4% (despite a 10% rally from its 2022 closing low on Oct. 12), but the benchmark index’s real estate sector has declined 13%.

    REITs can be placed broadly into two categories. Mortgage REITs lend money to commercial or residential borrowers and/or invest in mortgage-backed securities, while equity REITs own property and lease it out.

    The pressure on share prices can be greater for mortgage REITs, because the mortgage-lending business slows as interest rates rise. In this article we are focusing on equity REITs.

    Industry numbers

    The National Association of Real Estate Investment Trusts (Nareit) reported that third-quarter funds from operations (FFO) for U.S.-listed equity REITs were up 14% from a year earlier. To put that number in context, the year-over-year growth rate of quarterly FFO has been slowing — it was 35% a year ago. And the third-quarter FFO increase compares to a 23% increase in earnings per share for the S&P 500 from a year earlier, according to FactSet.

    The NAREIT report breaks out numbers for 12 categories of equity REITs, and there is great variance in the growth numbers, as you can see here.

    FFO is a non-GAAP measure that is commonly used to gauge REITs’ capacity for paying dividends. It adds amortization and depreciation (noncash items) back to earnings, while excluding gains on the sale of property. Adjusted funds from operations (AFFO) goes further, netting out expected capital expenditures to maintain the quality of property investments.

    The slowing FFO growth numbers point to the importance of looking at REITs individually, to see if expected cash flow is sufficient to cover dividend payments.

    Screen of high-yielding equity REITs

    For 2022 through Nov. 28, the S&P 500 has declined 17%, while the real estate sector has fallen 27%, excluding dividends.

    Over the very long term, through interest-rate cycles and the liquidity-driven bull market that ended this year, equity REITs have fared well, with an average annual return of 9.3% for 20 years, compared to an average return of 9.6% for the S&P 500, both with dividends reinvested, according to FactSet.

    This performance might surprise some investors, when considering the REITs’ income focus and the S&P 500’s heavy weighting for rapidly growing technology companies.

    For a broad screen of equity REITs, we began with the Russell 3000 Index
    RUA,
    -0.04%    ,
    which represents 98% of U.S. companies by market capitalization.

    We then narrowed the list to 119 equity REITs that are followed by at least five analysts covered by FactSet for which AFFO estimates are available.

    If we divide the expected 2023 AFFO by the current share price, we have an estimated AFFO yield, which can be compared with the current dividend yield to see if there is expected “headroom” for dividend increases.

    For example, if we look at Vornado Realty Trust
    VNO,
    +1.03%    ,
    the current dividend yield is 8.56%. Based on the consensus 2023 AFFO estimate among analysts polled by FactSet, the expected AFFO yield is only 7.25%. This doesn’t mean that Vornado will cut its dividend and it doesn’t even mean the company won’t raise its payout next year. But it might make it less likely to do so.

    Among the 119 equity REITs, 104 have expected 2023 AFFO headroom of at least 1.00%.

    Here are the 20 equity REITs from our screen with the highest current dividend yields that have at least 1% expected AFFO headroom:

    Company

    		 Ticker

    		 Dividend yield

    		 Estimated 2023 AFFO yield

    		 Estimated “headroom”

    		 Market cap. ($mil)

    		 Main concentration
    Brandywine Realty Trust

    		 BDN,
    +2.12%         		11.52%

    		 12.82%

    		 1.30%

    		 $1,132

    		 Offices
    Sabra Health Care REIT Inc.

    		 SBRA,
    +2.41%         		9.70%

    		 12.04%

    		 2.34%

    		 $2,857

    		 Health care
    Medical Properties Trust Inc.

    		 MPW,
    +2.53%         		9.18%

    		 11.46%

    		 2.29%

    		 $7,559

    		 Health care
    SL Green Realty Corp.

    		 SLG,
    +2.25%         		9.16%

    		 10.43%

    		 1.28%

    		 $2,619

    		 Offices
    Hudson Pacific Properties Inc.

    		 HPP,
    +1.41%         		9.12%

    		 12.69%

    		 3.57%

    		 $1,546

    		 Offices
    Omega Healthcare Investors Inc.

    		 OHI,
    +1.23%         		9.05%

    		 10.13%

    		 1.08%

    		 $6,936

    		 Health care
    Global Medical REIT Inc.

    		 GMRE,
    +2.55%         		8.75%

    		 10.59%

    		 1.84%

    		 $629

    		 Health care
    Uniti Group Inc.

    		 UNIT,
    +0.55%         		8.30%

    		 25.00%

    		 16.70%

    		 $1,715

    		 Communications infrastructure
    EPR Properties

    		 EPR,
    +0.86%         		8.19%

    		 12.24%

    		 4.05%

    		 $3,023

    		 Leisure properties
    CTO Realty Growth Inc.

    		 CTO,
    +2.22%         		7.51%

    		 9.34%

    		 1.83%

    		 $381

    		 Retail
    Highwoods Properties Inc.

    		 HIW,
    +0.99%         		6.95%

    		 8.82%

    		 1.86%

    		 $3,025

    		 Offices
    National Health Investors Inc.

    		 NHI,
    +2.59%         		6.75%

    		 8.32%

    		 1.57%

    		 $2,313

    		 Senior housing
    Douglas Emmett Inc.

    		 DEI,
    +0.87%         		6.74%

    		 10.30%

    		 3.55%

    		 $2,920

    		 Offices
    Outfront Media Inc.

    		 OUT,
    +0.89%         		6.68%

    		 11.74%

    		 5.06%

    		 $2,950

    		 Billboards
    Spirit Realty Capital Inc.

    		 SRC,
    +1.15%         		6.62%

    		 9.07%

    		 2.45%

    		 $5,595

    		 Retail
    Broadstone Net Lease Inc.

    		 BNL,
    -0.30%         		6.61%

    		 8.70%

    		 2.08%

    		 $2,879

    		 Industial
    Armada Hoffler Properties Inc.

    		 AHH,
    +0.00%         		6.38%

    		 7.78%

    		 1.41%

    		 $807

    		 Offices
    Innovative Industrial Properties Inc.

    		 IIPR,
    +1.42%         		6.24%

    		 7.53%

    		 1.29%

    		 $3,226

    		 Health care
    Simon Property Group Inc.

    		 SPG,
    +1.03%         		6.22%

    		 9.55%

    		 3.33%

    		 $37,847

    		 Retail
    LTC Properties Inc.

    		 LTC,
    +1.42%         		5.99%

    		 7.60%

    		 1.60%

    		 $1,541

    		 Senior housing
    Source: FactSet

    Click on the tickers for more about each company. You should read Tomi Kilgore’s detailed guide to the wealth of information for free on the MarketWatch quote page.

    The list includes each REIT’s main property investment type. However, many REITs are highly diversified. The simplified categories on the table may not cover all of their investment properties.

    Knowing what a REIT invests in is part of the research you should do on your own before buying any individual stock. For arbitrary examples, some investors may wish to steer clear of exposure to certain areas of retail or hotels, or they may favor health-care properties.

    Largest REITs

    Several of the REITs that passed the screen have relatively small market capitalizations. You might be curious to see how the most widely held REITs fared in the screen. So here’s another list of the 20 largest U.S. REITs among the 119 that passed the first cut, sorted by market cap as of Nov. 28:

    Company

    		 Ticker

    		 Dividend yield

    		 Estimated 2023 AFFO yield

    		 Estimated “headroom”

    		 Market cap. ($mil)

    		 Main concentration
    Prologis Inc.

    		 PLD,
    +1.63%         		2.84%

    		 4.36%

    		 1.52%

    		 $102,886

    		 Warehouses and logistics
    American Tower Corp.

    		 AMT,
    +0.75%         		2.66%

    		 4.82%

    		 2.16%

    		 $99,593

    		 Communications infrastructure
    Equinix Inc.

    		 EQIX,
    +0.80%         		1.87%

    		 4.79%

    		 2.91%

    		 $61,317

    		 Data centers
    Crown Castle Inc.

    		 CCI,
    +0.93%         		4.55%

    		 5.42%

    		 0.86%

    		 $59,553

    		 Wireless Infrastructure
    Public Storage

    		 PSA,
    +0.19%         		2.77%

    		 5.35%

    		 2.57%

    		 $50,680

    		 Self-storage
    Realty Income Corp.

    		 O,
    +0.72%         		4.82%

    		 6.46%

    		 1.64%

    		 $38,720

    		 Retail
    Simon Property Group Inc.

    		 SPG,
    +1.03%         		6.22%

    		 9.55%

    		 3.33%

    		 $37,847

    		 Retail
    VICI Properties Inc.

    		 VICI,
    +0.81%         		4.69%

    		 6.21%

    		 1.52%

    		 $32,013

    		 Leisure properties
    SBA Communications Corp. Class A

    		 SBAC,
    +0.27%         		0.97%

    		 4.33%

    		 3.36%

    		 $31,662

    		 Communications infrastructure
    Welltower Inc.

    		 WELL,
    +3.06%         		3.66%

    		 4.76%

    		 1.10%

    		 $31,489

    		 Health care
    Digital Realty Trust Inc.

    		 DLR,
    +0.63%         		4.54%

    		 6.18%

    		 1.64%

    		 $30,903

    		 Data centers
    Alexandria Real Estate Equities Inc.

    		 ARE,
    +1.49%         		3.17%

    		 4.87%

    		 1.70%

    		 $24,451

    		 Offices
    AvalonBay Communities Inc.

    		 AVB,
    +0.98%         		3.78%

    		 5.69%

    		 1.90%

    		 $23,513

    		 Multifamily residential
    Equity Residential

    		 EQR,
    +1.46%         		4.02%

    		 5.36%

    		 1.34%

    		 $23,503

    		 Multifamily residential
    Extra Space Storage Inc.

    		 EXR,
    +0.31%         		3.93%

    		 5.83%

    		 1.90%

    		 $20,430

    		 Self-storage
    Invitation Homes Inc.

    		 INVH,
    +2.15%         		2.84%

    		 5.12%

    		 2.28%

    		 $18,948

    		 Single-family residental
    Mid-America Apartment Communities Inc.

    		 MAA,
    +1.83%         		3.16%

    		 5.18%

    		 2.02%

    		 $18,260

    		 Multifamily residential
    Ventas Inc.

    		 VTR,
    +2.22%         		4.07%

    		 5.95%

    		 1.88%

    		 $17,660

    		 Senior housing
    Sun Communities Inc.

    		 SUI,
    +2.12%         		2.51%

    		 4.81%

    		 2.30%

    		 $17,346

    		 Multifamily residential
    Source: FactSet

    Simon Property Group Inc.
    SPG,
    +1.03%
    is the only REIT to make both lists.

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  • Cyber Monday deals lure in consumers amid high inflation

    Cyber Monday deals lure in consumers amid high inflation

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    NEW YORK — Days after flocking to stores on Black Friday, consumers are turning online for Cyber Monday to score more discounts on gifts and other items that have ballooned in price because of high inflation.

    Cyber Monday is expected to remain the year’s biggest online shopping day and rake in up to $11.6 billion in sales, according to Adobe Analytics, which tracks transactions at over 85 of the top 100 U.S. online stores. That forecast represents a jump from the $10.7 billion consumers spent last year.

    Adobe’s numbers are not adjusted for inflation, but the company says demand is growing even when inflation is factored in. Some analysts have said top line numbers will be boosted by higher prices and the amount of items consumers purchase could remain unchanged — or even fall — compared to prior years. Profit margins are also expected to be tight for retailers offering deeper discounts to attract budget-conscious consumers and clear out their bloated inventories.

    Shoppers spent a record $9.12 billion online on Black Friday, up 2.3% from last year, according to Adobe. E-commerce activity continued to be strong over the weekend, with $9.55 billion in online sales.

    Salesforce, which also tracks spending, said their estimates showed online sales in the U.S. hit $15 billion on Friday and $17.2 billion over the weekend, with an average discount rate of 30% on products. Electronics, active wear, toys and health and beauty items were among those that provided a big boost, the two groups said.

    CONSUMERS ARE SPENDING CAUTIOUSLY

    Mastercard SpendingPulse, which tracks spending across all types of payments including cash and credit card, said that overall sales on Black Friday rose 12% from the year-ago. Sales at physical stores rose 12%, while online sales were up 14%.

    RetailNext, which captures sales and traffic via cameras reported that store traffic rose 7% on Black Friday, while sales at physical stores improved 0.1% from a year ago. However, spending per customer dropped nearly 7% as cautious shoppers did more browsing than buying. Another company that tracks store traffic — Sensormatic Solutions — said store traffic was up 2.9% on Black Friday compared to a year ago.

    “Shoppers are being more thoughtful, but they are going to more than a few retailers to be able to make a determination of what they are going to buy this year,” said Brian Field, Sensormatic’s global leader of retail consulting and analytics.

    Danny Groner, a 39-year-old who lives in New York City, said he and his wife want to get a new TV to replace one they’ve had for about seven years. He spent some time on Monday searching for deals online and found some good discounts. Still, he says he wants to be intentional about what he buys and doesn’t mind spending a bit more for the right product.

    Overall, online spending has remained resilient in the past few weeks as eager shoppers buy more items on credit and embrace “buy now, pay later” services that lack interest charges but carry late fees.

    In the first three weeks of November, online sales were essentially flat compared with last year, according to Adobe. It said the modest uptick shows consumers have a strong appetite for holiday shopping amid uncertainty about the economy.

    Still, some major retailers are feeling a shift. Target, Macy’s and Kohl’s said this month they’ve seen a slowdown in consumer spending in the past few weeks. The exception was Walmart, which reported higher sales in its third quarter and raised its earnings outlook.

    “We’re seeing that inflation is starting to really hit the wallet and that consumers are starting to amass more debt at this point,” said Guru Hariharan, founder and CEO of retail e-commerce management firm CommerceIQ, adding there’s more pressure on consumers to purchase cheaper alternatives.

    SHIFTING DEMAND

    This year’s Cyber Monday also comes amid a wider e-commerce slowdown affecting online retailers that saw a boom in sales during most of the COVID-19 pandemic. Consumers who feared leaving their homes and embraced e-commerce during the pandemic are heading back to physical stores in greater numbers this year as normalcy returns.

    The National Retail Federation said its recent survey showed a 3% uptick in the number of Black Friday shoppers planning to go to stores. It expects 63.9 million consumers to shop online during Cyber Monday, compared to 77 million last year.

    Amazon saw its retail business thrive during most of the pandemic, but much of the demand waned as the worst of the pandemic eased. To deal with the change, the company has been scaling back its warehouse expansion plans and is cutting costs by axing some of its projects. It’s also following in the steps of other tech companies and implementing mass layoffs in its corporate ranks. Amazon CEO Andy Jassy said the company will continue to cut jobs until early next year.

    Shopify, a company which helps businesses set up e-commerce websites and also offers offline software, laid off 10% of its staff this summer.

    The company said Monday that its merchants have surpassed $5.1 billion in global sales since the start of Black Friday in New Zealand. And spending per U.S. customer went up $5 compared to last year, said Shopify President Harley Finkelstein.

    Despite the bump, Finkelstein said shoppers were more intentional about their spending this year and waiting for discounts before making a purchase.

    ————

    AP Business Writer Anne D’Innocenzio contributed to this report.

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  • Cyber Monday deals lure in consumers amid high inflation

    Cyber Monday deals lure in consumers amid high inflation

    [ad_1]

    NEW YORK — Days after flocking to stores on Black Friday, consumers are turning online for Cyber Monday to score more discounts on gifts and other items that have ballooned in price because of high inflation.

    Cyber Monday is expected to remain the year’s biggest online shopping day and rake in up to $11.6 billion in sales, according to Adobe Analytics, which tracks transactions at over 85 of the top 100 U.S. online stores. That forecast represents a jump from the $10.7 billion consumers spent last year.

    Adobe’s numbers are not adjusted for inflation, but it says demand is growing even when inflation is factored in. Some analysts have said top line numbers will be boosted by higher prices and the amount of items consumers purchase could remain unchanged — or even fall — compared to prior years. Profit margins are also expected to be tight for retailers offering deeper discounts to attract budget-conscious consumers and clear out their bloated inventories.

    Shoppers spent a record $9.12 billion online on Black Friday, up 2.3% from last year, according to Adobe. E-commerce activity continued to be strong over the weekend, with $9.55 billion in online sales.

    Salesforce, which also tracks spending, said their estimates showed online sales in the U.S. hit $15 billion on Friday and $17.2 billion over the weekend, with an average discount rate of 30% on products. Electronics, active wear, toys and health and beauty items were among those that provided a big boost, the two groups said.

    Meanwhile, consumers who feared leaving their homes and embraced e-commerce during the pandemic are heading back to physical stores in greater numbers this year as normalcy returns. The National Retail Federation said its recent survey showed a 3% uptick in the number of Black Friday shoppers planning to go to stores. It expects 63.9 million consumers to shop online during Cyber Monday, compared to 77 million last year.

    CONSUMERS ARE SPENDING CAUTIOUSLY

    Mastercard SpendingPulse, which tracks spending across all types of payments including cash and credit card, said that overall sales on Black Friday rose 12% from the year-ago. Sales at physical stores rose 12%, while online sales were up 14%.

    RetailNext, which captures sales and traffic via sensors, reported that store traffic rose 7% on Black Friday, while sales at physical stores improved 0.1% from a year ago. However, spending per customer dropped nearly 7% as cautious shoppers did more browsing than buying. Another company that tracks store traffic — Sensormatic Solutions— said store traffic was up 2.9% on Black Friday compared to a year ago.

    “Shoppers are being more thoughtful, but they are going to more than a few retailers to be able to make a determination of what they are going to buy this year,” said Brian Field, Sensormatic’s global leader of retail consulting and analytics.

    Overall, online spending has remained resilient in the past few weeks as eager shoppers buy more items on credit and embrace “buy now, pay later” services that lack interest charges but carry late fees.

    In the first three weeks of November, online sales were essentially flat compared with last year, according to Adobe. It said the modest uptick shows consumers have a strong appetite for holiday shopping amid uncertainty about the economy.

    Still, some major retailers are feeling a shift. Target, Macy’s and Kohl’s said this month they’ve seen a slowdown in consumer spending in the past few weeks. The exception was Walmart, which reported higher sales in its third quarter and raised its earnings outlook.

    “We’re seeing that inflation is starting to really hit the wallet and that consumers are starting to amass more debt at this point,” said Guru Hariharan, founder and CEO of retail e-commerce management firm CommerceIQ, adding there’s more pressure on consumers to purchase cheaper alternatives.

    SHIFTING DEMAND

    This year’s Cyber Monday also comes amid a wider e-commerce slowdown affecting online retailers that saw a boom in sales during most of the COVID-19 pandemic. Amazon, for example, raked in record revenue but much of the demand has waned as the worst of the pandemic eased and consumers felt more comfortable shopping in stores.

    To deal with the change, the company has been scaling back its warehouse expansion plans and is cutting costs by axing some of its projects. It’s also following in the steps of other tech companies and implementing mass layoffs in its corporate ranks. Amazon CEO Andy Jassy said the company will continue to cut jobs until early next year.

    Shopify, another company which helps businesses set up e-commerce websites, laid off 10% of its staff this summer.

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  • 10 Cost-Saving Ideas For Businesses

    10 Cost-Saving Ideas For Businesses

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    Opinions expressed by Entrepreneur contributors are their own.

    None of us is immune to what’s currently happening in the economy, forcing many business owners and executives to consider ways to cut costs. I recently asked my leadership team to take a good, hard look at their expenses to determine what can and should be cut and gauge the effects those specific savings would have on the business.

    Finding ways to save money in your business is not always as obvious as you think and can come from a few places that are not typically looked at. Here I outline ten money-saving ideas all business owners should consider.

    Related: 7 Outdated Habits That Will Paralyze Your Business

    1. Root out process inefficiencies

    Take a look at how technology can play a role in improving efficiencies. How can you utilize technology to minimize time, effort and money spent where it doesn’t need to be? Whether it’s analytical data that helps you be quicker to market or process improvements that make your supply chain run more efficiently — plus having good processes around where you spend money.

    For larger projects, obtain three quotes from separate vendors before placing an order. Make sure you negotiate the best possible cost on a meaningful purchase. Be assured that what you are buying is right for your business.

    Related: How to Ditch the Inefficiencies That Are Eating Your Revenue

    2. Reduce office expenses

    I think that the mentality of being scrappy is essential. What I mean by scrappy is being pugnacious and determined not to be wasteful. Think local and establish relationships with local businesses. In our industry, for example, we buy, manufacture and print labels for our customers and brands. Fortunately, our label vendor is literally down the street, so we’re saving money on transit costs. Utilizing your local network ensures you’re getting the best price, not just in direct costs but also in time and effort.

    3. Make sure you have the right employees for the right roles

    This boils down to “right people, right seats.” When you look at the world today and how the labor pool has, for various reasons, contracted, having the right person in a role who’s passionately engaged is vital. They get it, they want it and they can do it. Over the long haul, that spells increased efficiency and savings. Running a business where you don’t have the right people in the right seats makes everything cumbersome and challenging.

    In most businesses, marketing tends to be something companies can overspend on. That’s why it’s essential to have the right marketing person in the right seat. This person has relationships and expertise and knows when a consultant can do something and when something should be handled in-house.

    Employee retention helps, too. Teams have chemistry, they understand how people operate and they play off each other’s strengths and weaknesses. When you’re constantly replacing people on the team, that’s all learning that must be done over again instead of doing the job.

    Related: 5 Effective Strategies for Employee Retention

    4. Expand on social media and community engagement

    I’ve seen brands effectively connect the organization to the consumer through social media. One thing to understand is that your content should be organic and user-generated, not scripted or overly polished. Recording content on your own versus paying an influencer or agency thousands of dollars has a cost-benefit. But there’s an even bigger reason why you want to choose this path.

    Today’s consumers see right through content that’s heavily produced and edited. Instead, they follow, work with, purchase from and remain loyal to easily relatable brands that don’t take themselves too seriously and have no problem being transparent about every aspect of their business.

    Sit with your marketing and finance teams to determine what percentage of the annual budget needs to be allocated toward purchasing equipment and boosting posts. Use data and analytics to determine what posts help you meet your goals (e.g., engagements, views, conversions, etc.) and place your bets accordingly.

    5. Refine, then automate

    When you’re talking about logistics and shipping and the operational piece of the business, the more automated you get your orders in and out the door, the more efficient you’ll be. This hopefully means you’ll have more bandwidth to spend time doing other things, right?

    I also believe in minimizing clicks and pain points within your sales process. Have information readily available, so employees don’t have to click five different screens to get to what they need to get through. You want to free up the time to sell and reduce the time spent on administrative tasks. For example, you could automate invoicing or utilize a service that consolidates your accounts payable, so you don’t have to pay somebody for that.

    Related: Want to Improve Workplace Efficiency? Improve Your Team Dynamics First.

    6. Slice operational costs

    If you can operate all aspects of your business under one roof, that’s ideal. For example, if you complete the shipping or manufacturing of your products in-house, you don’t want to be in three different buildings — you want to be in one building so you can organize things, get the best use of your staff, maximum use of the space and highest possible output.

    You don’t want to sit on tons of office space because that is bleeding money. Whatever you can do to get out of those situations as soon as possible, the better off you’ll be. Looking into co-working spaces might be worthwhile in certain cases, too.

    7. Look at insurance and cash flow

    You need to have somebody who has the experience, knows the right questions to ask, understands your business needs, and is bound to save you money regarding insurance. For employee health benefits, make sure people have a choice and have an option that makes sense for both the business and the employee. Over and above making sure you’re not under-insured or over-insured, it’s more important that you’re insured correctly.

    Avoid short-term loans, cash advances and borrowing on high interest. If you’re buying things on credit, pay it off. And don’t get smashed with interest. Make sure you’re only buying what you need. All of those things factor into good cash flow.

    One of the things my CEO mentor always used to say is that there always needs to be a certain number in the bank. So, if we even got close to that number, he would send out fire alarms. It was all hands on deck evaluating things, cutting things we didn’t need and making sure that the company’s cash position was one we felt comfortable with. This way, we could sleep at night and know we were in good shape. That’s just one of those old-school mentalities that have always stuck with me.

    8. Staff up or hire out?

    If you don’t have the expertise, you need to be ultra-selective in ensuring you’re not just being penny-wise and pound-foolish. I always say you don’t want to step over the dollar bills to pick up pennies. If you can save money on wages and other things, that’s great, but you must set KPIs.

    You have to understand (and communicate) what your expectations are from these independent contractors; otherwise, you’re just going to be spending good money without seeing any benefit from it. And that’s throwing money out the window. So, there’s a little bit of a catch-22 there. You’ll save money on the fringe but must have measurables to ensure they’re performing.

    Related: 8 People You Should Hire to Grow Your Startup Fast

    9. Reduce travel expenses

    If you don’t have to travel, don’t. But when you do need to travel, travel effectively. Make sure that there’s a good travel policy about meals, hotels, flights, etc. These expenses can go through the roof if you don’t have some control. Use Zoom, Teams and other messaging applications when possible, but also be cost-effective in managing travel.

    Related: 9 Business Expenses You Can Reduce or Eliminate to Save Thousands

    10. Specialize in what you’re good at

    So, you’re a sales and marketing operation, and you’re struggling. Then you, all of a sudden, decide you’re going to start doing packaging, but you have no clue how to do it. This is probably a recipe for failure because you’re not focusing on the areas you’re good at, and you’re taking time and effort away to try and learn something you don’t need to. But the nice thing about the way the world is that somebody out there can do it; you need to find the right partner.

    Being careful with money doesn’t mean being cheap — quite the opposite. It means honoring the value of the money entrusted to your company by customers for goods and services they care about.

    Related: How to Specialize Without Locking Your Startup Out of the Market

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    Vincent Tricarico

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  • How much money should you have in a high-yield savings account?

    How much money should you have in a high-yield savings account?

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    A checking account and a savings account are two basic, but very important, accounts for managing money. And while there isn’t any one “correct” way for an individual to manage the money in their checking and savings accounts, there are some general rules of thumb that can help you figure out how much money you should have in each account.

    “Like many Americans, you may default to leaving extra funds in a traditional checking or savings account,” says Dan Stampf, a CFP® and Vice President of Advisory Solutions for Personal Capital. “Maybe you haven’t decided how to allocate it to investment accounts. Perhaps you’re stowing away money for a rainy day or emergency fund. Or you could be building up savings for a short-term goal like funding a wedding or a vacation.”

    It’s important to note that you’re essentially losing money if you allow that cash to just sit in a low-yield checking account, as the value of your money is being eaten away by inflation and you’re missing out on higher interest payments from a high-yield savings account. This is why high-yield savings accounts are generally recommended as a vehicle for keeping savings, including your emergency fund.

    Some checking accounts, like the Ally Interest Checking Account or the Capital One 360 Checking® accounts do offer slightly higher interest rates compared to traditional checking accounts, but the interest is still lower than what high-yield savings accounts offer.

    How much money should you keep in a high-yield savings account?

    Of course, you do want to make sure you’re investing — and not only saving — so you can reach long-term goals like retirement. So you do have to draw a line between how much you should invest versus keep in a savings account.

    “Everyone’s financial situation is different and the amount of cash you have on hand will depend on your life stage and savings goals,” Stampf says. “As a general rule, consider aiming to have six to 12 months worth of liquid cash or cash alternatives, so you can withdraw from those if needed without touching your [investment] portfolio.”

    Avoid over-saving

    Stampf also cautions against over-saving for emergencies since keeping too much cash on hand could mean not having enough of your money invested, which could potentially undermine your retirement goals or other investing goals.

    You can avoid over-saving by targeting a specific number for your emergency fund. Maybe a fully funded emergency account for you means having six months’ worth of necessary expenses saved; take your monthly expenses and multiply that by six to find your target amount. You might also consider using a budgeting app, like Mint or Personal Capital, to help you figure out what your total monthly expenses look like.

    And of course, a high-yield savings account is also the best way to save for large expenses that you foresee having to make in the near future (1–3 years). It’s prudent to make sure you save for these expenses on top of your fully-funded emergency account money. And the higher interest rates let you grow your balance just a little quicker. Select ranked the Marcus by Goldman Sachs High Yield Online Savings as the best account for no fees.

    Marcus by Goldman Sachs High Yield Online Savings

    Goldman Sachs Bank USA is a Member FDIC.

    • Annual Percentage Yield (APY)

    • Minimum balance

      None to open; $1 to earn interest

    • Monthly fee

    • Maximum transactions

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

    • Excessive transactions fee

    • Overdraft fees

    • Offer checking account?

    • Offer ATM card?

    The SoFi Checkings and Savings also stands out since it offers a welcome bonus after you setup and receive direct deposit payments. You can earn anywhere from $50 to $300, depending on the amounts of your direct deposits in a 30-day period.

    SoFi Checking and Savings

    Information about Sofi Checking and Savings has been collected independently by Select and has not been reviewed or provided by the issuer prior to publication.

    • Monthly maintenance fee

    • Minimum deposit to open

    • Minimum balance

    • Annual Percentage Yield (APY)

      Members with direct deposit earn 3.00% APY on savings and Vaults balances, and 2.50% APY on their checking balances. Members without direct deposit will earn 1.20% APY.

    • Free ATM network

      55,000+ fee-free ATMs within the Allpoint® Network

    • ATM fee reimbursement

    • Overdraft fee

      No-Fee Overdraft Coverage is available; however, SoFi requires $1,000 of monthly direct deposit inflows to unlock it

    • Mobile check deposit

    Pros

    • No minimum deposit to open an account
    • 1.80% APY with direct deposit
    • 2-day-early-paycheck automatically when you set up direct deposit
    • Save your change automatically with Roundups and set savings goals with Vaults
    • Get up to 15% cash back at local establishments
    • No foreign transaction fees

    Cons

    • No reimbursement for out-of-network ATM fees
    • Not a standalone checking or savings account

    Bottom line

    A high-yield savings account can sometimes be a happy medium between investing for the long-term and keeping liquid cash on hand for shorter-term large expenses, but it’s still important to avoid over-saving. ]

    Stampf recommends keeping six to 12 months’ worth of expenses in a high-yield savings account for easy access to cash in case of an emergency and saving for larger expenses that are are coming in the short term, like buying a home. Of course, you’ll want to also consider your stage of life and your needs when determining how much money to keep in a high-yield savings account.

    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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  • Get a Doorbuster Deal on This Stock Education Platform

    Get a Doorbuster Deal on This Stock Education Platform

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    Opinions expressed by Entrepreneur contributors are their own.

    Every year, Black Friday offers all kinds of great deals. But the best deals are ones that you can keep on benefiting from for years to come. That’s why this year, it’s a great time to take advantage of Tykr Stock Screener.


    Tykr

    With the stock market going through significant ups and downs and inflation soaring, it’s time to protect your wealth by growing your wealth. Tykr has a 4.9/5-star rating on Trustpilot because it’s such a valuable resource to teach you better investment strategies that will pay off long after you get it. And, right now, we’re offering it for one day only for a Black Friday price.

    Tykr is an incredibly easy tool to help you minimize the guesswork in investing. The intuitive app lets you find great investments within 30 seconds, with support for more than 30,000 US and international stocks. Each stock has a summary that describes the stock as either On Sale (potential buy), Watch, or Overpriced (potential sell). The summary comes from all of the rigorous work that Tykr’s algorithm does behind the scenes to simplify your investing. (All of which is completely open-source so you can understand exactly how Tykr reached its score.) Tykr also offers a score that assesses the financial strength of any given stock.

    In addition to stock screening, Tykr is also an investing educational resource, helping you understand how to reduce risk while you diversify your portfolio. It’s a simple way to increase your returns in the market, even when it’s in a bad place.

    Today only, you can get a lifetime subscription to Tykr Stock Screener as part of these doorbuster deals for just $99.99 (reg. $900).

    Prices subject to change.

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    Entrepreneur Store

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  • It’s a Bad Time to Buy a Car. How to Score a Decent Deal Now if You Can’t Wait.

    It’s a Bad Time to Buy a Car. How to Score a Decent Deal Now if You Can’t Wait.

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    Car buyers just can’t catch a break these days. Vehicle prices climbed sharply during the pandemic, and now the cost of financing a new set of wheels is going up.

    Even if prices ease, interest rates on car loans likely will climb higher, at least for a while, making this an inopportune time to replace a vehicle, financing experts say. 

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  • ‘We’re headed for a family feud’: My father offered his 3 kids equal monetary gifts. My siblings took cash. I took stock. It’s soared in value — now they’re crying foul

    ‘We’re headed for a family feud’: My father offered his 3 kids equal monetary gifts. My siblings took cash. I took stock. It’s soared in value — now they’re crying foul

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    Dear Quentin,

    Several years before my father’s death, he offered me and my two siblings each an early “cash gift” from his estate in the amount of whatever the maximum non-taxable amount was at the time. He was an active investor and offered the gift in the form of the stock instead of cash. My siblings took the cash and I decided to take it in stock valued the same as the cash amount.  

    Fast forward five years: My father just passed away and my siblings bought expensive toys and luxury automobiles with their cash, while my stock is worth many times what it was when it was given to me. His will states that the three of us should share in equal parts of his estate, but my siblings are arguing that my now very valuable stock should be included as an asset to be split among the estate.

    Legally, they have no leg to stand on, but both are insistent that I’m taking money that is morally theirs. There’s no changing their mind and I’m convinced that we’re headed for a family feud. I’m not sure what I should do. Had the stock value gone to zero in that time, they wouldn’t be arguing that I should get extra to compensate for my “bad gamble.”

    The Other Brother

    Dear Other Brother,

    Them’s the breaks — in this case, the sudden screeching of car brakes.

    Your siblings could have chosen stocks over cash, but they wanted immediate gratification. That was their decision, and they are going to have to take ownership of their choice and live with it. Buying stocks are more likely to pay off if you hold on to them over the long term. You did just that. Instead of buying a Ferrari or a Tesla
    TSLA,
    -0.19%    ,
    you effectively chose to invest your gift.

    Show the same certainty now, and don’t cave to your siblings’ demands. Don’t allow them to bully you into selling.

    Investing is all about delaying your gratification — the ability to live for today and save for a more comfortable tomorrow, as opposed to having everything today and to hell with tomorrow. The gamification of stock trading with apps such as Robinhood
    HOOD,
    -0.74%    ,
    which has extended its trading hours beyond the market’s official hours, is in part about getting that dopamine hit. (However, trading after hours comes with risks — chief among them warped stock prices.)

    This dispute is about choice. If you had taken the cash, those stocks would still be part of your father’s estate, but you made the choice to take the stock. Your siblings had the same option and chose not to exercise it. Tell them, “I know it must be frustrating for you, but we all had the same opportunity. I took it. You took the cash.”

    There is only one reason they missed out — and if they look in the rearview mirror of their respective luxury cars, they will see that reason staring right back at them.

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

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

    The Moneyist regrets he cannot reply to questions individually.

    By emailing your questions, you agree to having them published anonymously on MarketWatch. By submitting your story to Dow Jones & Company, the publisher of MarketWatch, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

    More from Quentin Fottrell:

    • My girlfriend says I should tip in restaurants. I say waitstaff are just like construction and fast-food workers. Who’s right?
    • ‘He was infatuated with her’: My brother had a drinking problem and took his own life. He left $6 million to his former girlfriend who used to buy him alcohol
    • ‘She had a will, but it was null and void’: My friend and her sister are fighting over their mother’s life-insurance policy and bank account. Who should win out?

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  • 15 Cheat Codes for Life: Jump 7 Years Ahead of People

    15 Cheat Codes for Life: Jump 7 Years Ahead of People

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    When you played video games as a kid, you would likely often look for cheat codes to help you gain a competitive advantage. Specific cheat codes would help you get to the next level of the game when you feel stuck.


    Due – Due

    Suddenly, this cheat code would unlock a new achievement and allow you to save yourself a significant amount of time. Did you know that there are cheat codes to life that could put you ahead of others?

    We’re going to look at 15 cheat codes that will put you years ahead of 95% of people out there.

    1. Become comfortable with getting rejected. The sooner you stop fearing rejection, the sooner you can become unstoppable.

    Every successful entrepreneur or person has been through a laundry list of failures. As much as we love to glamorize risk-takers, we can’t ignore how much they’ve failed on the road to success. One could even argue that the road to success is paved with failures and crushed dreams.

    The good news is every rejection or failure brings you one step closer to a yes that could change your entire life. They say that when one door closes, another one opens. This may not seem like the case at the moment, but those rejections will help you become more tenacious so that you’re ready for whatever life throws at you.

    2. Pay attention to how people treat service workers because this reveals their true colors.

    How someone treats those who can’t do something for them accurately indicates character. You can learn plenty from how someone treats service people.

    There’s one quote that summarizes this best, and we really can’t argue with the greatest of all time:

    “I don’t trust anyone who’s nice to me but rude to the waiter. Because they would treat me the same way if I were in that position.” ―Muhammad Ali

    3. Embrace adversity because it will help you grow more than being stuck in your comfort zone.

    Your comfort zone is the worst place you can spend any time if you want to see growth in your life. The comfort zone is where dreams go to die because nothing remarkable ever came from playing it safe.

    How can you embrace adversity?

    • Don’t be afraid to suck at something new.
    • Challenge yourself constantly.
    • Try a new sport regardless of your age.
    • Seek feedback from people who aren’t afraid to hurt your feelings.
    • If it scares you, then it means that you need to do it.
    • If your goals aren’t intimidating, then they’re not bold enough.

    4. Take action first and then figure it out as you go.

    So many of us want to know everything upfront before taking action. Taking action when you don’t know all of the answers is a true superpower. The stars will never align, and the universe won’t conspire to give you the perfect conditions for starting. You have to take action first and then watch how everything conspires in your favor once you start to build momentum on your own.

    This Ryan Holiday quote from “The Obstacle is The Way’” summarizes this notion best:

    “We often assume that the world moves at our leisure. We delay when we should initiate. We jog when we should be running or better yet, sprinting. And then we’re shocked –shocked!—when nothing big ever happens, when opportunities never show up, when new obstacles begin to pile up, or the enemies finally get their act together.” 

    Instead of waiting for the perfect conditions to start, focus on progress over perfection. Your future self will thank you for the risks you take today when you don’t feel fully prepared.

    5. Know what you want out of life, or you’ll never get what you want.

    They say that no road will take you there when you don’t know where you’re going. You must figure out what you want from life to start planning to make it happen. So many people walk through life aimlessly without a plan, and they wonder why they never seem to get lucky.

    Knowing what you want out of life is the ultimate cheat code. Once you know what you’re after, you can craft a plan to go after it. The best part is that no matter what you want to accomplish, chances are that someone out there has already done it, so you can learn from them by buying a book, taking a course, or paying for coaching.

    6. Never stop investing in yourself because this is the most important thing you can do.

    Making yourself a priority isn’t selfish; it’s actually the most important thing that you can do because you can’t pour from an empty glass. Every investment you make in yourself today will pay dividends for years.

    How can you invest in yourself right now?

    • Learn a new skill. The more that you learn, the more that you earn.
    • Buy a book on a topic that fascinates you. Everything that you could want to learn about has been written about. You can spend $20 on a book to acquire a lifetime of knowledge.
    • Spend money on your health. Always spend the money on eating better and the best physical training you can get. You want to ensure that you’re physically and mentally prepared for whatever life brings you.
    • Take someone out for coffee or lunch. You can learn something from someone who’s a few steps ahead of you by offering to take them out for lunch.
    • Attend an event or conference in your field. They say that your network is your net worth. You want to do what you can to get around those who are already where you want to be one day.

    7. Focus on one thing at a time because multi-tasking is the biggest trap.

    Multi-tasking is a recipe for doing a mediocre job on a bunch of random tasks. If you want to see remarkable results, you must focus on one thing at a time to give it your full attention. When you chase two rabbits, you end up catching none of them. While social media is filled with people bragging about how much they do, the reality is that we’re all better off focusing on one important task at a time.

    You owe it to yourself to read “The One Thing” by Gary Keller if you struggle with focusing on one task at a time. Here’s a quote that simplifies the entire book into one sentence.

    “It is not that we have too little time to do all the things we need to do, it is that we feel the need to do too many things in the time we have.”

    Most of us don’t have an issue with time management. We struggle with figuring out the one thing that deserves our focus, so we try to complete multiple different tasks simultaneously.

    8. Stop lying to yourself if you want to become unstoppable.

    You have to know yourself and be self-aware enough to accept your limitations. There’s no sense in lying to yourself because you’re only going to set yourself up for disappointment. As tempting as it is to make audacious statements about what you plan on doing, you’re better off setting small and attainable goals that will help you get to the finish line.

    9. Focus on quality friendships to build deeper relationships.

    How many times have you seen a documentary about an athlete, musician, or celebrity who ended up losing everything they had? These people were always surrounded by an entourage, yet it seemed like they didn’t have any real friends. You don’t want this to happen to you.

    A few quality friendships with deep connections are worth more than many acquaintances who don’t care about you. You want to surround yourself with people on a similar mission so that you don’t get sidetracked or brought down by anyone’s misery.

    10. If you want to achieve greatness, you have to accept suffering.

    You won’t get anywhere in life if you avoid all suffering. There’s a reason why so few people end up building a successful business or can get into amazing physical shape. Most of us will give up on suffering because we’re not sure if the short-term discomfort is worth the long-term results.

    Knowing that suffering today for a better tomorrow is worth it is a cheat code that very few will accept. Whatever you’re going through today will be worth it when you get to the other side. Nothing worth doing has ever been easy.

    11. How you react is much more important than what happens to you.

    Life isn’t about what happens to you. It’s about how you react to what happens to you. Instead of blaming the world for your problems, you have to get into the habit of taking accountability for your situation.

    You can’t choose what happens to you, but you can choose how you react to it. How you respond to conflict and challenges will say plenty about you.

    12. Choose to change your life if you want it to change by tomorrow.

    Your life won’t change until you change. This means you have to decide to change your life because nobody else can do it for you.

    You can hire coaches, pay for mentorship, and join a mastermind, but none of that will mean anything if you don’t decide that you’re going to change. The choices you make today will be reflected in the results you get tomorrow.

    13. To become successful, you’ll have to make many sacrifices.

    While it’s easy to admire successful people when you see what they’ve accomplished, you don’t know what they went through to get to where they are.

    Many sacrifices are required if you want to get to the next level. The good news is that every sacrifice you make today will be evident in the rewards you receive in the future.

    14. You become more powerful when you don’t worry about what others think of you.

    So many of us worry about the opinions of others when in reality, those people don’t even know what’s best for us. It would be best if you didn’t worry about the opinion of those who don’t know what you’re going through.

    The truth is that most people will judge you because they’re jealous that you’re not afraid of taking risks. You’ll never be criticized by someone who’s doing better than you. Criticism tends to come from those who aren’t doing as well as you.

    This quote about worrying about what others think always makes me think…

    “When you’re 20, you care what everyone thinks. When you’re 40, you stop caring what everyone thinks; when you’re 60, you realize no one was ever thinking about you in the first place.”

    This quote was originally attributed to Winston Churchill, but the original author hasn’t been verified. Regardless of who said this, we spend far too much time worrying about what others think of us when their opinions don’t pay our bills.

    15. Your vibe attracts your tribe.

    Smiling may not seem like a big deal at the moment, but your energy will attract many opportunities. You may have heard how your vibe attracts your tribe, but you don’t realize how accurate this is until you try it. How you present yourself to the world will determine what kind of energy you attract into your life. It’s important to remember this when you step out into the world.

    Those are 15 cheat codes that will help you get ahead in life. Save this list and refer to it when you’re looking for some inspiration or when you’re just feeling stuck.

    Work Hard to Win at the Game of Life

    Why cheat at video games? Because you want to win! Old-school gamers will remember the days of pressing Down Up, Right, Left, Left, A, B, B, A, B, Up, Down, and similar combinations to unlock unlimited health, wealth, and more. If you can find a cheat code for life, you’re better positioned to find yourself winning at your goals.

    The post 15 Cheat Codes for Life: Jump 7 Years Ahead of People appeared first on Due.

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    Deanna Ritchie

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  • Student loan payments may not resume until August. Here’s what borrowers need to know

    Student loan payments may not resume until August. Here’s what borrowers need to know

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    President Joe Biden and Secretary of Education Miguel Cardona.

    The Washington Post | The Washington Post | Getty Images

    It’s been almost three years since people with federal student loans have had to make a payment on their debt, and the Biden administration recently announced that borrowers have even more time.

    In March 2020, when the coronavirus pandemic first hit the U.S. and crippled the economy, the U.S. Department of Education suspended federal student loan payments and the accrual of any interest, providing borrowers extra breathing room during an especially hard financial period.

    Resuming the bills for more than 40 million Americans has proven to be a massive and tricky task, and the holiday on the payments has now spanned two presidencies and been extended eight times.

    Even before the public health crisis, when the U.S. economy was enjoying one of its healthiest periods in history, problems plagued the federal student loan system, with about 25% — or more than 10 million borrowers — in delinquency or default.

    Experts say hardship rates are likely to only increase with the setbacks of the pandemic, the current sharp rise in prices on everyday goods and the fact that borrowers have gotten used to a budget sans student loans.

    More from Personal Finance:
    Credit card balances jump 15%
    60% of Americans are living paycheck to paycheck
    These steps can help you tackle stressful credit card debt

    White House officials had hoped to ease the transition back into life with student loan payments by first forgiving a large swath of the debt.

    Yet not long after President Joe Biden announced his plan to cancel up to $20,000 in student loans for millions of Americans, a number of conservative groups and Republican-backed states attacked the policy in the courts. Two of these lawsuits have been successful in at least temporarily halting the relief, and the Education Department closed its loan cancellation application portal this month.

    With so much still up in the air, the Biden administration has pushed back the due date on student loan bills again.

    “It would be deeply unfair to ask borrowers to pay a debt that they wouldn’t have to pay, were it not for the baseless lawsuits brought by Republican officials and special interests,” Education Secretary Miguel Cardona said in a statement.

    Here’s what borrowers need to know about getting more time.

    So when exactly will payments resume?

    It’s a little complicated.

    With previous extensions of the payment pause, the Education Department provided one date for when student loan bills would resume.

    This time, it left things a little more open-ended, saying that the bills will restart only 60 days after the litigation over its student loan forgiveness plan resolves and it’s able to start wiping out the debt.

    Therefore, the soonest the bills could become due again would be late January, if the legal challenges clear up by the end of November, although that’s unlikely.

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

    So borrowers have at least two more months without the bills and at most nine.

    What if I was behind on my student loans?

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

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

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

    Should I still hold off on refinancing?

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

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

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

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

    Miguel Cardona

    Secretary of the U.S. Department of Education

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

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

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

    “Refinancing can generate a lower interest rate than federal student loan rates,” Mayotte said. “But your rate doesn’t matter if you lose your job, have sudden medical expenses, can’t afford your payments and find that defaulting is your only option.”

    What should I do with the extra cash during the pause?

    Boy_anupong | Moment | Getty Images

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

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

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

    Could it make sense to still pay my student loans?

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

    With interest temporarily suspended, any payments will go directly toward your debt’s principal, potentially shortening your repayment timeline, said Anna Helhoski, a student loan expert at NerdWallet.com.

    “You could continue making payments each month by contacting your servicer, or save the money and make a lump sum payment on your highest-interest loan before interest accrues again when repayment restarts,” Helhoski said.

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

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

    One more possibility: If you find yourself in a financially comfortable position and it doesn’t make sense for you to continue paying down your student loans, you may want to donate the extra cash.

    You can make sure an organization is reputable using tools such as the Better Business Bureau’s Wise Giving Alliance or Charity Navigator, Helhoski said. If the charity is registered as a 501(c)(3), you’ll even be eligible for a tax break.

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  • Biden Grants Reprieve on Student Loans. Get Ready to Resume Payments Anyway.

    Biden Grants Reprieve on Student Loans. Get Ready to Resume Payments Anyway.

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    Student-loan borrowers got a break this week, but that doesn’t mean they can spend more for the holidays.

    The Biden administration on Wednesday extended a pause on student loan payments, yet borrowers should prepare for the eventual resumption of payments by saving the amount they would otherwise owe, experts advise.

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  • Inflation hovers over shoppers seeking deals on Black Friday

    Inflation hovers over shoppers seeking deals on Black Friday

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    NEW YORK — Cautious shoppers hunted for the best deals at stores and online as retailers offered new Black Friday discounts to entice consumers eager to start buying holiday gifts but weighed down by inflation.

    Due to elevated prices for food, rent, gasoline and other essentials, many people were being more selective, reluctant to spend unless there was a big sale. Some were dipping more into savings, turning to “buy now, pay later” services that allow payment in installments, or running up their credit cards at a time when the Federal Reserve is hiking rates to cool the U.S. economy.

    Sheila Diggs, 55, went to a Walmart in Mount Airy, Maryland early Friday looking for a deal on a coffee maker. To save money this year, she said the adults in her family are drawing names and selecting one person to shop for.

    “Everything’s going up but your paycheck,” said Diggs, who manages medical records at a local hospital.

    This year’s trends are a contrast from a year ago when consumers were buying early for fear of not getting what they needed amid supply-network clogs. Stores didn’t have to discount much because they were struggling to bring in items.

    Early shopping turned out to be a fleeting trend, said Rob Garf, vice president and general manager of retail at Salesforce, which tracks online sales. People this year are holding out for the best bargains, and retailers responded this week with more attractive online deals after offering mostly lackluster discounts earlier in the season.

    Online discounts rates were 31% on Thanksgiving, up 7% from the previous year, according to Salesforce data. The steepest discounts were in home appliances, general apparel, makeup and luxury handbags.

    Macy’s Herald Square in Manhattan, where discounts included 60% off fashion jewelry and 50% off select shoes, was bustling with shoppers early Friday.

    The traffic was “significantly larger” on Black Friday compared to the previous two years because shoppers feel more comfortable in crowds, Macy’s CEO Jeff Gennette said.

    He said that bestsellers from Macy’s online sale, which started last weekend, included 50% off beauty sets. Last year Macy’s, like many other stores, had supply chain issues and some of the gifts didn’t arrive until after Christmas.

    “Right now we are set and ready to go, “ he said.

    Sophia Rose, 40, a respiratory specialist visiting Manhattan from Albany, New York, was heading into Macy’s with big plans to splurge after scrimping last year when she was still in school. She put herself on a budget for food and gas to cope with inflation but had already spent $2,000 for holiday gifts, and plans to spend a total of $6,000.

    “I am going to touch every floor,” she said. “That’s the plan.”

    Customer traffic was also higher than last year at Mall of America in Bloomington, Minnesota, according to Jill Renslow, executive vice president of business development of the shopping center. She said 10,000 people were at the sprawling mall during the first hour after the 7 a.m. opening, though inflation prompted many shoppers to figure out what to buy before showing up.

    “With the economy, people are planning a little more,” she said.

    Delmarie Quinones, 30, went to a Best Buy in Manhattan to pick up a laptop and printer she ordered online at $179, down from $379. Quinones, a health home aide, said that higher prices on food and other expenses are making her reduce her spending from a year ago, when she had money from government child tax-credit payments.

    “I can’t get what I used to get,” said the mother of five children, ages 1 to 13. “Even when it was back to school, getting them essentials was difficult.”

    Major retailers including Walmart and Target stuck with their pandemic-era decision to close stores on Thanksgiving Day, moving away from doorbusters and instead pushing discounts on their websites.

    But people are still shopping on Thanksgiving — online. Garf said Salesforce data showed online sales spiked in the evening during the holiday this year, suggesting people went from feasting to phone shopping. And with holiday travel up, he said a greater share of online shopping occurred on mobile devices this year.

    “The mobile phone has become the remote control of our daily lives, and this led to an increase in shopping on the couch as consumers settled in after Thanksgiving dinner,” Garf said.

    But with more shoppers visiting stores this year, growth in online sales slowed.

    Shoppers spent $5.3 billion online on Thanksgiving Day, up 2.9% from the holiday last year, according to Adobe Analytics, which monitors spending across websites. Adobe expects that online buying on Black Friday will hit $9 billion, up just 1% from a year ago.

    Black Friday saw some of the labor unrest that has rippled through the retail industry over the past year. A coalition of trade unions and advocacy organizations are coordinating strikes and walkouts at Amazon facilities in more than 30 countries under a campaign called “Make Amazon Pay.” Among other places, hundreds of workers at a facility near the German city of Leipzig staged a protest Friday, calling for better working conditions and higher pay.

    And at Walmart stores, some employees had Wednesday’s deadly shooting at a company store in Virginia in the back of their minds.

    Jude Anani, a 35-year-old who works at a Walmart store in Columbia, Maryland, said the company offers training on how to react in such circumstances but he would like to see more protection. He was happy to see police officer standing outside the store, as is typical on Black Friday, and wished that was the case “most of the time during the year.”

    Against today’s economic backdrop, the National Retail Federation — the largest retail trade group — expects holiday sales growth will slow to a range of 6% to 8%, from the blistering 13.5% growth of a year ago. However, these figures, which include online spending, aren’t adjusted for inflation, so real spending could even be down from a year ago.

    Analysts consider the five-day Black Friday weekend, which includes Cyber Monday, a key barometer of shoppers’ willingness to spend. The two-month period between Thanksgiving and Christmas represents about 20% of the retail industry’s annual sales.

    ——————

    Hadero reported from Mount Airy, Maryland. Olson reported from Arlington, Virginia. Associated Press Personal Finance Writer Cora Lewis in New York contributed to this report.

    ——————

    Follow Anne D’Innocenzio: http://twitter.com/ADInnocenzio

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  • How Congress may make it easier to set money aside for emergency expenses

    How Congress may make it easier to set money aside for emergency expenses

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    Thomas Barwick | Digitalvision | Getty Images

    Many families struggle to come up with the cash when faced with an unexpected $400 expense.

    That lack of emergency savings may force them to borrow money at high interest rates to pay for the surprise expense, putting their financial security at risk.

    Now Congress has a window to address that issue by paving the way for new emergency savings plans in the lame duck session.

    Three emergency savings proposals may be included in a legislative package known as Secure 2.0, which is set to amplify changes to the retirement system brought by the Secure Act in 2019.

    “We’re on the cusp of a significant shift in how people save for emergencies in this country, thanks to public policy and private sector innovation,” said Shai Akabas, director of economic policy at the Bipartisan Policy Center, during a recent web panel hosted by the Washington, D.C., think tank.

    More from Personal Finance:
    Reasons to say ‘no’ to a store credit card this holiday shopping season
    How to score a charitable tax break on Giving Tuesday
    Inflation boosts U.S. household spending by $433 a month

    The panel discussion coincided with an open letter from the Bipartisan Policy Center Action with 40 organizations to Senate Majority Leader Chuck Schumer, D-N.Y., and Minority Leader Mitch McConnell, R-Ky., as well as House Speaker Nancy Pelosi, D-Calif., and Minority Leader Kevin McCarthy, R-Calif.

    The letter called for the inclusion of three bills that would amplify emergency savings in the pending retirement package.

    “We firmly believe emergency savings policy aligns with the goals of the U.S. retirement system and will help boost financial resiliency for American households,” they wrote.

    Why emergency savings falls short

    Anti-eviction banners are displayed on a rent-controlled building in Washington, D.C., on Aug. 9, 2020.

    Eric Baradat | AFP | Getty Images

    The Covid-19 pandemic was a stress test for many Americans’ finances.

    As many parts of the economy shut down, many individuals and families found their incomes were reduced or eliminated altogether.

    The federal government stepped in and sent unprecedented amounts of aid through three rounds of stimulus checks, enhanced federal unemployment benefits, direct monthly child tax credit payments to parents and other policies.

    Yet the pandemic still led some workers to withdraw funds from their 401(k) or other retirement savings accounts, putting their long-term financial futures at risk.

    Those that had at least $1,000 in emergency savings at the height of the pandemic were half as likely to withdraw from their retirement savings accounts, according to the Aspen Institute.

    “As people face that crisis, you need that liquid savings to protect your long-term investments and make sure you have a secure retirement and build wealth,” Tim Shaw, associate director of policy at the Aspen Financial Security Program, said during the Bipartisan Policy Center panel.

    Covid relief measures helped push the share of families who could cover an unexpected $400 expense with cash or an equivalent method to 68% in 2021, a 4-percentage point increase from 2020. It also marks the highest level since the Federal Reserve began the survey in 2013.

    Still, 1 in 3 households would need to borrow money to cover a $400 emergency, which is still “far too many,” Shaw noted.

    How 3 proposals may encourage savings

    Image Source | Getty Images

    Advocates are hoping three proposals that could help encourage emergency savings will be included in Secure 2.0.

    That includes two bills proposed by Sens. Cory Booker, D-N.J., and Todd Young, R-Ind., as well as a third created by Sens. James Lankford, R-Okla., and Michael Bennet, D-Colorado.

    One proposal from Booker and Young would enable employers to provide emergency savings accounts to workers in addition to their retirement savings accounts. Employees would be able to set aside up to $2,500 automatically that they could access at any time in case of an emergency.

    The second proposal from Booker and Young would allow for separate standalone plans outside of retirement accounts, which would be “really important” for employees who don’t currently have retirement plans through their employer, Akabas noted.

    A third, the Lankford-Bennet plan, would allow workers to take out up to $1,000 from their retirement accounts penalty-free in case of an emergency. Those withdrawals would only be allowed once per year; additional contributions would be required before making another withdrawal.

    Chantel Sheaks, executive director of retirement policy at the U.S. Chamber of Commerce, said she has “fingers crossed” that all three proposals will make it into Secure 2.0 and that the legislation will pass.

    “From an employer’s viewpoint, we need choice,” Sheaks said.

    What may work for one employer may not work for another, she noted. The three proposals would allow for more options, including possibly encouraging employers who do not current have retirement plans to think about adopting them, Sheaks said.

    Moreover, because hardship withdrawals can reduce workers’ retirement security, these emergency savings options can help prevent those stumbling blocks to building wealth.

    “People have emergency needs today, and we can’t forget about those emergency needs,” Sheaks said. “We need to find a way to balance today’s needs with tomorrow’s needs.”

     

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  • GOP-led states press Supreme Court to keep Biden student debt forgiveness on hold | CNN Politics

    GOP-led states press Supreme Court to keep Biden student debt forgiveness on hold | CNN Politics

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    CNN
     — 

    A collection of Republican-led states argued on Wednesday that the Supreme Court should keep President Joe Biden’s student debt forgiveness policy on hold while the litigation around it plays out, pointing to fact that the Biden administration has extended its pause on student loan payments.

    The Republican states, which have already obtained an appeals court order blocking the implementation of the controversial program, said the extension showed that there would be no harm inflicted by the court order being left in place.

    “The Department [of Education] can point to no emergency or imminent harm because, just yesterday, the agency extended the payment pause on student loans until the summer of 2023,” they wrote in the new filing.

    Federal student loan payments were set to resume in January after a years-long pandemic pause. But the Biden administration said Tuesday that it is extending the pause until 60 days after the pending litigation over the forgiveness program is resolved. If the program has not been implemented and the litigation has not been resolved by June 30, payments will resume 60 days after that.

    The Wednesday filing by the states came in response to a request from the Biden administration that the Supreme Court lift the hold that has been placed on the student debt relief program, which would forgive up to $20,000 in loans for individual borrowers who earned less than $125,000 in either 2020 or 2021.

    The Republican states accused the Biden administration of relying “on the COVID-19 pandemic” as “a pretext to mask the President’s true goal of fulfilling his campaign promise to erase student-loan debt.”

    The policy was set to begin going into effect earlier this fall, but was blocked by the 8th US Circuit Court of Appeals in a lawsuit brought by Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina.

    They claim that in rolling out the program, Department of Education Secretary Miguel Cardona went beyond the authority he has under law to cancel individual debts. They also argue that the department violated administrative law in how it launched the policy.

    The states defended the appeals court order blocking the relief program, telling the Supreme Court on Wednesday that they will suffer the types of harm that make it appropriate for a court to intervene.

    This procedural threshold – known as standing – has been a legal obstacle for many opponents of the program who have tried to block it in court, including challengers whose requests for Supreme Court intervention were previously denied. The states in the new filing argue that they’ll suffer a loss of tax revenue and other kinds of injuries if the debt relief program goes into effect.

    The states also pointed to the ruling from a federal judge in Texas in a separate case that struck down the student debt relief policy, which the administration has appealed to the 5th US Circuit Court of Appeals. That ruling will remain in effect even if the Supreme Court lifts the hold placed by the 8th Circuit, the states noted in their filing Wednesday.

    The Biden administration has indicated it will take that case to the Supreme Court as well if the 5th Circuit leaves in place the ruling striking it down.

    In the request it put before the Supreme Court, US Solicitor General Elizabeth Prelogar argued that leaving the program on hold “leaves millions of economically vulnerable borrowers in limbo, uncertain about the size of their debt and unable to make financial decisions with an accurate understanding of their future repayment obligations.”

    Prelogar told the Supreme Court that the program was a lawful endeavor “to ensure that borrowers affected by a national emergency are not worse off in relation to their student loans.”

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  • Thanksgiving travel rush is back with some new habits

    Thanksgiving travel rush is back with some new habits

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    The Thanksgiving travel rush was back on this year, as people caught planes in numbers not seen in years, setting aside inflation concerns to reunite with loved ones and enjoy some normalcy after two holiday seasons marked by COVID-19 restrictions.

    Changing habits around work and play, however, might spread out the crowds and reduce the usual amount of holiday travel stress. Experts say many people will start holiday trips early or return home later than normal because they will spend a few days working remotely — or at least tell the boss they’re working remotely.

    The busiest travel days during Thanksgiving week are usually Tuesday, Wednesday and the Sunday after the holiday. This year, the Federal Aviation Administration expects Tuesday to be the busiest travel day with roughly 48,000 scheduled flights.

    Chris Williams, of Raleigh, North Carolina, flew Tuesday morning with his wife and two kids to Atlanta, Georgia, to spend the holiday with extended family.

    “Of course it’s a stressful and expensive time to fly,” said Williams, 44, who works in finance. “But after a couple years of not getting to spend Thanksgiving with our extended family, I’d say we’re feeling thankful that the world’s gotten to a safe enough place where we can be with loved ones again.”

    Although Williams said the family’s budget has been tight this year, he’s capitalized on the opportunity to teach his kids some personal finance basics. His youngest, 11, has been learning how to budget her allowance money since March and is excited to buy small gifts for her friends on Black Friday or Cyber Monday. “Probably slime,” she said, “with glitter.”

    The Transportation Security Administration screened nearly 2.3 million travelers on Tuesday, down from more than 2.4 million screened the Tuesday before Thanksgiving in 2019. On Monday, the numbers were up versus 2019 — more than 2.6 million travelers compared with 2.5 million. That same trend occurred Sunday, marking the first year that the number of people catching planes on Thanksgiving week surpassed pre-pandemic levels.

    “People are traveling on different days. Not everyone is traveling on that Wednesday night,” says Sharon Pinkerton, senior vice president at the trade group Airlines for America. “People are spreading their travel out throughout the week, which I also think will help ensure smoother operations.”

    AAA predicts that 54.6 million people will travel at least 50 miles from home in the U.S. this week, a 1.5% bump over Thanksgiving last year and only 2% less than in 2019. The auto club and insurance seller says nearly 49 million of those will travel by car, and 4.5 million will fly between Wednesday and Sunday.

    U.S. airlines struggled to keep up as the number of passengers surged this year.

    “We did have a challenging summer,” said Pinkerton, whose group speaks for members including American, United and Delta. She said that airlines have pared their schedules and hired thousands of workers — they now have more pilots than before the pandemic. “As a result, we’re confident that the week is going to go well.”

    U.S. airlines plan to operate 13% fewer flights this week than during Thanksgiving week in 2019. However, by using larger planes on average, the number of seats will drop only 2%, according to data from travel-researcher Cirium.

    Airlines continue to blame flight disruptions on shortages of air traffic controllers, especially in Florida, a major holiday destination.

    Controllers, who work for the Federal Aviation Administration, “get tested around the holidays. That seems to be when we have challenges,” Frontier Airlines CEO Barry Biffle said a few days ago. “The FAA is adding another 10% to headcount, hopefully that’s enough.”

    Transportation Secretary Pete Buttigieg has disputed such claims, saying that the vast majority of delays and cancellations are caused by the airlines themselves.

    TSA expects airports to be busier than last year and probably about on par with 2019. The busiest day in TSA’s history came on the Sunday after Thanksgiving in 2019, when nearly 2.9 million people were screened at airport checkpoints.

    Stephanie Escutia, traveling with four children, her husband and her mother, said it took the family four hours to get through checking and security at the Orlando airport early Tuesday. The family was returning to Kansas City in time for Thanksgiving after a birthday trip to Disney World.

    “We were surprised at how full the park was,” said Escutia, 32. “We thought it might be down some but it was packed.”

    She welcomed the sense of normalcy, and said her family would be gathering for Thanksgiving without worrying about keeping their distance this year. “Now we are back to normal and looking forward to a nice holiday,” she said.

    People getting behind the wheel or boarding a plane don’t seem fazed by higher gasoline and airfare prices than last year or the widespread concern about inflation and the economy. That is already leading to predictions of strong travel over Christmas and New Year’s.

    “This pent-up demand for travel is still a real thing. It doesn’t feel like it’s going away,” says Tom Hall, a vice president and longtime writer for Lonely Planet, the publisher of travel guides. “That’s keeping planes full, that’s keeping prices high.”

    ———

    Associated Press writers Hannah Schoenbaum in Raleigh, North Carolina, Margaret Stafford in Kansas City and AP video journalist Terence Chea in Oakland, California contributed to this report.

    ———

    David Koenig can be reached at twitter.com/airlinewriter

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  • Biden extends student loan repayment freeze as forgiveness program is tied up in courts | CNN Politics

    Biden extends student loan repayment freeze as forgiveness program is tied up in courts | CNN Politics

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    CNN
     — 

    The Biden administration is yet again extending the pause on federal student loan payments, a benefit that began in March 2020 to help people who were struggling financially due to the Covid-19 pandemic.

    The extension comes as the Biden administration’s student loan forgiveness program is tied up in the courts. Officials had told borrowers the forgiveness program, which is worth up to $20,000 in debt relief per borrower, would be implemented before loan payments were set to resume in January.

    The payment pause will last until 60 days after the litigation is resolved. If the program has not been implemented and the litigation has not been resolved by June 30, payments will resume 60 days after that, according to the Department of Education.

    “I’m completely confident my plan is legal,” said President Joe Biden in a video posted to Twitter Tuesday, referencing his student loan forgiveness program.

    “But it isn’t fair to ask tens of millions of borrowers eligible for relief to resume their student debt payments while the courts consider the lawsuit,” he added.

    Last week, the Department of Justice asked the Supreme Court to step in and reinstate the student loan forgiveness program while the legal challenges play out. The program was struck down by a lower court judge in Texas on November 10.

    The payment pause extension gives the Supreme Court time to hear the case in its current term, Biden said.

    The administration had previously said the most recent extension until the end of December would be the last.

    Tuesday’s announcement marks the eighth time the payment restart date has been rescheduled since March 2020.

    Borrower balances have effectively been frozen since then, with no payments required on most federal student loans. During this time, interest has stopped adding up and collections on defaulted debt have also been on hold.

    The yearslong freeze on payments and interest is expected to cost the government $155 billion though the end of 2022, according to an estimate from the Committee for a Responsible Federal Budget. The new extension will add to that total.

    If Biden’s student loan forgiveness program is allowed to move forward, individual borrowers who earned less than $125,000 in either 2020 or 2021 and married couples or heads of households who made less than $250,000 annually in those years could see up to $10,000 of their federal student loan debt forgiven.

    If a qualifying borrower also received a federal Pell grant while enrolled in college, the individual is eligible for up to $20,000 of debt forgiveness.

    This story has been updated with additional information.

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  • Understanding The Rise And Fall Of FTX, FTT And Alameda Research

    Understanding The Rise And Fall Of FTX, FTT And Alameda Research

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    The rise and fall of FTX and Sam Bankman-Fried revealed holes in the crypto space that industry peers, the media, and government officials either chose to overlook or refused to question further.

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  • Supreme Court OKs handover of Trump tax returns to Congress

    Supreme Court OKs handover of Trump tax returns to Congress

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    WASHINGTON — The Supreme Court on Tuesday cleared the way for the imminent handover of former President Donald Trump’s tax returns to a congressional committee after a three-year legal fight.

    The court, with no noted dissents, rejected Trump’s plea for an order that would have prevented the Treasury Department from giving six years of tax returns for Trump and some of his businesses to the Democratic-controlled House Ways and Means Committee.

    Alone among recent presidents, Trump refused to release his tax returns either during his successful 2016 campaign or his four years in the White House, citing what he said was an ongoing audit by the IRS. Last week, Trump announced he would run again in 2024.

    It was the former president’s second loss at the Supreme Court in as many months, and third this year. In October, the court refused to step into the legal fight surrounding the FBI search of Trump’s Florida estate that turned up classified documents.

    In January, the court refused to stop the National Archives from turning over documents to the House committee investigating the Jan. 6 insurrection at the Capitol. Justice Clarence Thomas was the only vote in Trump’s favor.

    In the dispute over his tax returns, the Treasury Department had refused to provide the records during Trump’s presidency. But the Biden administration said federal law is clear that the committee has the right to examine any taxpayer’s return, including the president’s.

    Lower courts agreed that the committee has broad authority to obtain tax returns and rejected Trump’s claims that it was overstepping and only wanted the documents so they could be made public.

    Chief Justice John Roberts imposed a temporary freeze on Nov. 1 to allow the court to weigh the legal issues raised by Trump’s lawyers and the counter arguments of the administration and the House of Representatives.

    Just over three weeks later, the court lifted Roberts’ order without comment.

    The Trump campaign did not immediately respond to a request for comment.

    The House contended an order preventing the IRS from providing the tax returns would leave lawmakers “little or no time to complete their legislative work during this Congress, which is quickly approaching its end.”

    Had Trump persuaded the nation’s highest court to intervene, he could have run out the clock on the committee, with Republicans ready to take control of the House in January. They almost certainly would have dropped the records request if the issue had not been resolved by then.

    The House Ways and Means panel and its chairman, Democrat Richard Neal of Massachusetts, first requested Trump’s tax returns in 2019 as part of an investigation into the Internal Revenue Service’s audit program and tax law compliance by the former president. A federal law says the Internal Revenue Service “shall furnish” the returns of any taxpayer to a handful of top lawmakers.

    The Justice Department under the Trump administration had defended a decision by then-Treasury Secretary Steven Mnuchin to withhold the tax returns from Congress. Mnuchin argued that he could withhold the documents because he concluded they were being sought by Democrats for partisan reasons. A lawsuit ensued.

    After President Joe Biden took office, the committee renewed the request, seeking Trump’s tax returns and additional information from 2015-2020. The White House took the position that the request was a valid one and that the Treasury Department had no choice but to comply. Trump then attempted to halt the handover in court.

    Then-Manhattan District Attorney Cyrus Vance Jr. obtained copies of Trump’s personal and business tax records as part of a criminal investigation. That case, too, went to the Supreme Court, which rejected Trump’s argument that he had broad immunity as president.

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  • Feeling Stuck in Your Career? These 8 Tips Will Help You Move Forward.

    Feeling Stuck in Your Career? These 8 Tips Will Help You Move Forward.

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    Opinions expressed by Entrepreneur contributors are their own.

    I know what it feels like to be stuck in a career and not have any room for growth or a fair evaluation of your efforts within the company. Although I had what many people would perceive as a successful career in public relations, I felt a prolonged progression in my promotions, a lack of opportunities to grow in other areas of the field and not a great work/life balance. I started to lose a sense of determination in my work. My personal story began when Covid-19 first hit; like many people, I lost my job, which left me in a whirlwind of confusion and heartbreak.

    Related: A Successful Career Path Doesn’t Have to Be Linear

    How I got unstuck

    I had a moment to sink in the fear of job security but then realized I was luckier than most. I was already working on my side hustle with freelancing which was making more than I was making at my full-time position, and I was able to keep that up while I tried to figure out what my next move would be. Would I continue to just freelance and maintain, or would I push myself to do more?

    My next move came sooner than I realized. After all, at the time of the pandemic, I possessed a skill many companies needed most — public relations. I realized that this skill allowed me to work from anywhere. In the past, my personal success was hindered in this area, thanks to a full-time job that ate up a lot of my time with commutes and late nights. I realized I had enough clients to get going, with eight customers that quickly grew to 15 in just a few weeks, ranging across a plethora of industries. Things went so well that in the time of a global pandemic, a young 29-year-old female was able to create a growing business.

    This is something I never contemplated and didn’t think was possible just three years ago, but now it is a reality with over 25 people on my team and counting. When opportunities come your way, and you realize people want what you offer, you simply don’t turn that down. You acknowledge this as a sign it’s time to grow, your time to live into your potential and to take that leap in creating a business. These opportunities are coming your way because people are gravitating to what you offer. You need to invest in your vision and potential to realize you found something unique and something that companies want. This all starts with believing in yourself.

    Related: 4 Tips To Overcome Career Transition Anxiety

    How you can do it, too

    Some of the most frequent questions I receive are: “how did you change your work situation?” “how did you start your side hustle?” or “how do I market my skills?” As someone whose primary mission is to make an impact on others, I am here to help. Now I realize that many people are feeling stuck in their careers, and in the time of the “Great Resignation,” I want to guide you to feel less trapped and put you on a path where you can recreate your career. Here are my eight tips for getting started:

    1. Remember we have more opportunities than ever: There are more avenues now than ever to pick up a side gig and work on it from the comfort of your home. This makes recreating your career and focusing on the work that makes you happy easier than it’s ever been.

    2. Take the time to create a list of what skills you possess, are great at and love doing: Often jobs have us doing numerous tasks. Some we are great at, and other ones we wish were better at or just don’t like doing at all. You may simply not have had the opportunity to hone in on certain talents. Now you have the luxury of getting to focus on what you are great at and monetizing that skill. If you don’t have a skill that you’d like to hone in on yet, no worries! Many sites offer courses that are free or at minimal cost so that you can gain critical knowledge to create your new side hustle!

    3. Register for freelance sites: Join freelance sites like UpWork, Fiverr, ThumbTack, Freelancer, etc. Take a scroll through the types of jobs on their sites, then finalize which area you would like to focus on.

    4. Create a pitch about yourself: Many of these freelance sites will ask you to write about your accomplishments, skills and share your job qualifications on your profile page. It can be awkward for some people to boast about themselves, but if you don’t share all the fantastic things you did, no one will know. Learn to be your own publicist. Be sure to include what you can do for prospective clients on your profile page and show previous success stories.

    5. Draft a template cover letter: You can quickly modify a cover letter for different proposals you want to apply for and make simple edits per job posting. This will save you a lot of time.

    6. Ask for reviews or referrals: On these sites, you can boost your chances of getting opportunities by asking peers, previous companies you’ve worked for or other side gigs you’ve had in relevant spaces to get their review of you on the platform. This builds your credibility and also builds potential clients’ confidence when deciding whether to talk and eventually hire you.

    7. Research price points: When putting yourself out there, there is always the question of how much you should charge for your skillset per hour or per project. On many of these sites, you can do some analysis of what others are charging for similar fields. Starting a little lower at first can help you break through to start building your freelance roster, and once you have a couple of reviews of current clients under your belt, that’s when you can move the needle up.

    8. Start applying and putting yourself out there: Once you find a side gig or two, you can really craft yourself, put your passions outside of your current career and start honing a path for yourself that will make you happy.

    Related: Do You Feel Unfulfilled in Your Work Life? Here’s How to Change That

    Whether you want to try this until you find your next job, need extra income or are considering freelancing as your new full-time job for more flexibility, these eight tips above will help you succeed. As Christopher Robbins says, “You are braver than you believe, stronger than you seem and smarter than you think.”

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    Mary Elkordy

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  • ‘There are plenty of storm clouds on the horizon’: 5 things not to buy on Black Friday

    ‘There are plenty of storm clouds on the horizon’: 5 things not to buy on Black Friday

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    It’s a year for shopping prudently.

    Americans will spend between $942.6 billion and $960.4 billion this holiday season, according to projections from the National Retail Federation. That’s up from last year when holiday sales hit a record $889.3 billion, the trade association said.

    However, people are not willing to go as crazy this Black Friday compared to previous years: that 6% to 8% year-over-year growth expectation is slower than the 13.5% annual increase in holiday season spending in 2021 when consumers had pandemic-era government benefits to spend.

    Once again, millions of people will also be shopping from the comfort of their home and avoiding the Black Friday crowds. Online and other non-store sales are predicted to rise 10% to 12% (to between $262.8 billion and $267.6 billion).

    “People have reason to be concerned about their spending. ”

    “The economy is probably doing better than it feels right now, but that’s not true for everyone of course,” said Ted Rossman, senior industry analyst at Bankrate.com. “There are plenty of storm clouds on the horizon.” He cited rising interest rates, 40-year high inflation and tech layoffs. 

    People have reason to be concerned about their spending. The personal saving rate — meaning personal saving as a percentage of disposable income, or the share of income left after paying taxes and spending money — fell to 3.3% in the third quarter from 3.4% in the prior quarter, the government said last month. 

    Despite a strong labor market and unemployment hovering at 3.7% in October, Rossman said, “it still seems like a recession is likely in 2023, although the best guess is that it will be a mild one.”

    So what should you not buy this Black Friday? Quite a lot, if you don’t believe in living large. Here are 5 things to think about avoiding:

    — Quentin Fottrell

    Tech accessories

    For tech accessories — like earbuds and headphones — waiting until December may be a better way to score better deals, added Ryan McGonagill, director, industry research at Savings.com, another site that aggregates discounts.

    The most popular electronic products like Apple AAPL iPads, MacBooks and iPhones have scant Black Friday deals. “For a limited time, get an Apple Gift Card to use on a later purchase when you buy an eligible iPhone, Apple Watch, Mac, AirPods, and more,” according to Apple’s Black Friday offer.

    Computer makers and retailers, however, are coming off the work-from-home boom and may have inventory they need to thin before year’s end. Holiday discounts on computers, at least through October, were at 10% off the base price, according to analysis from Adobe
    ADBE,
    +2.92%    .
     

    The software and analytics provider said computer discounts could go much steeper, up to 32% off the base price before the end of the year. Cyber Monday could be the best day for bargains on computers, Adobe said, but computer deals may stick around for the rest of 2022.

    Pay attention to early deals, if you desperately need a new laptop. “Many retailers offer the same pricing on Black Friday and Cyber Monday,” said Kristin McGrath, editor at RetailMeNot.com, a site that promotes deals. “So start looking on Black Friday and use Cyber Monday as a second chance to snag what you missed.”

    — Andrew Keshner

    Seasonal items

    Winter wear is usually not going to be on sale before Christmas, so it’s best to shop for your puffy jackets and snow boots in the New Year, if you can. The same goes for white linen, tools and holiday decorations, said Charles Lindsey, associate professor in the Marketing School of Management at the University at Buffalo.

    Most stores put their coats, hats, scarves and flannel pajamas on sale — with discounts on big-name brands of 50% or more in January — to make room for their spring collections. Similarly, buy summer clothes in the fall and winter. 

    “The best time to buy holiday decor is immediately after said holidays,” according to DealNews, a site offering shopping advice. “After Christmas sales are generally your best bet for snagging deeply discounted ornaments, lights, and inflatables in order to be well prepared for next year.” 

    Fashion-conscious shoppers inclined to snap up discounted items may want to practice patience on Black Friday. Apparel may have even deeper discounts after the holidays. If you feel compelled to buy something new to wear to the office party, invest in quality pieces. Fast fashion has a cost: It has contributed to a waste crisis, in part because such items are not meant to last very long in your closet.

    But that does not mean you should not keep your eyes peeled for some seasonal goods on Black Friday. Walmart
    WMT,
    +0.34%    ,
    for instance, is pushing out the boat early with some discounts on toys, including hoverboards, bicycles, remote-control cars, and karaoke machines. Similarly, Kohl’s
    KSS,
    +4.17%
    has discounts on a range of doll’s houses.

    — Quentin Fottrell and Emma Ockerman

    Appliances and white goods

    There might be tempting Black Friday deals on appliances, mattresses and furniture. Discounts on appliances may reach up to an 18% from the base price, Adobe said. Still, “you’re going to get another shot at them during New Year’s Eve sales and again during Presidents Day sales in February,” McGrath said.

    If Black Friday is “too chaotic …you’ll have plenty of opportunities to save,” she added. Department stores usually run very attractive discounts on houseware in the days following Christmas. “Stores know they’ll be getting a lot of traffic with so many people returning gifts — and hope to convince shoppers to make an impulse self-gifting purchase or two,” McGrath said.

    If you can’t wait, Costco
    COST,
    +1.64%
    is already rolling out deals on white goods and appliances, including $70 off a Sonos
    SONO,
    +1.87%
    WiFi speaker. However, Consumer Reports cautions consumers against falling for big deals without checking out the reliability of the brand first, as you could end up paying more in repairs down the road. 

    You might be tempted by offers and rebates on matching kitchen suites — typically a refrigerator, range, dishwasher, and microwave — from the same maker,” Consumer Reports said. “But price is only part of the equation when you’re purchasing appliances. Reliability is key, and it can vary within a brand’s offerings.”

    — Andrew Keshner

    Fitness equipment

    One of the best times to buy exercise equipment is around the New Year, when people are making resolutions to improve their health, said Regina Conway, who researches sales and promotions for Slickdeals, a site that tracks retail discounts.

    When you make your purchase, think twice before buying equipment that runs on proprietary technology, like Peloton
    PTON,
    -1.13%
    or Lululemon’s
    LULU,
    +1.79%
    Mirror exercise products, mainly because the at-home fitness boom faces an uncertain future post-pandemic, Conway noted.

    However, this Black Friday is a little different than previous years, and there are some deals in categories that traditionally don’t have good Black Friday discounts, including exercise equipment. “This year we’re seeing strong Black Friday deals from industry stalwarts like NordicTrack,” Conway said.

    Peloton Interactive, which is facing a challenging time since people are no longer stuck at home due to the pandemic, is currently offering $600 off this fitness bike package. However, consumers will still have to fork over $2,195 for the machine and exercise regime.

    “We think consumers are likely to continue to prefer out-of-home experiences in the near-term and believe Peloton is still working through pandemic pull-forward,” Cowen & Co. analyst John Blackledge wrote in an analyst note on Tuesday, citing “limited visibility” on Peloton’s fiscal 2023 performance.

    — Leslie Albrecht and Quentin Fottrell

    Big-ticket items like TVs 

    Does Amazon
    AMZN,
    +0.80%
    founder Jeff Bezos have a point about the dangers of splurging this year? In something of a Black Friday surprise, Bezos offered some shocking spending tips as Americans gear up for the holiday shopping season — amid four-decade-high inflation. Or, to be more accurate, he offered tips on what not to spend your money on.

    ‘If you’re an individual and you’re thinking about buying a large-screen TV, maybe slow that down, keep that cash, see what happens. Same thing with a refrigerator, a new car, whatever. Just take some risk off the table,” Bezos said in a recent interview on CNN
    WBD,
    +2.27%    .
    The remarks drew a significant amount of scorn on social media, with some critics advising people to avoid shopping on Amazon too.

    About those TVs: “They’re normally not going to be a high-end TV brand,” Lindsey said. “It will be a lower to mid-tier brand. Companies utilize these TVS as doorbusters to get people in the store and people clicking on their website. You’re probably better off shopping around the Superbowl in late January.”

    Rossman said consumers are becoming more judicious about their Black Friday splurging. “People seem to be pulling back on some big-ticket purchases,” he told MarketWatch. “For example, sellers of appliances, electronics and furniture all posted disappointing results in the most recent retail sales report.”

    “Yet discretionary sectors such as travel and dining are seeing sharp increases in spending,” he added. “I think the main explanation is pent-up demand. People are prioritizing experiences over things right now, largely due to the pandemic. There was also a pull-forward in demand for many physical goods the past couple of years as many out-of-home activities were curtailed.”

    — Quentin Fottrell

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