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Is a Checking Account Good for Your Credit Score?
Even though checking accounts can be the heartbeat of your financial transactions, opening one of these accounts usually doesnât help your credit score. Note the use of the word âusually,â though. As time passes after you open your account, a well-maintained banking life can be a vital step towards building a positive financial history. On […]
The post Is a Checking Account Good for Your Credit Score? appeared first on SoFi.
The Best Affordable Hair Loss Treatments for Male Pattern Baldness
Stock Market Today: Dow Sinks 981 Points in Wide Market Washout
Thursday’s downward momentum spilled liberally into Friday’s trade, with almost the entire market working in concert to deliver a week-closing stinker.
Weighing on sentiment again were yesterday’s comments by Federal Reserve Chair Jerome Powell that all but guarantee we’ll see a 50-basis-point Fed funds rate hike following the central bank’s May meeting.
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“When a Fed official suggests a 50-basis-point hike, markets immediately start trying to price in 75-basis-point hikes,” says Jamie Cox, managing partner for Harris Financial Group. “It’s madness really. Most investors would be well served to ignore the machinations of the pricing craziness and wait to see what actually happens with rates.”
“The Fed is prepared to inflict real economic pain on the economy to achieve its inflation goals,” adds Dean Smith, chief strategist at investment technology platform FolioBeyond.
John Butters, senior earnings analyst at FactSet, notes that the S&P 500 Index is reporting single-digit earnings growth for the first time since the fourth quarter of 2020, thanks in part to tough year-over-year comparisons, but also macro headwinds.
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“[The Fed’s] hawkish stance is giving investors pause as many are left to evaluate the impact on profit margins and equity multiples moving forward,” says Brian Price, head of investment management for Commonwealth Financial Network. “We’re still very early into earnings season, but higher costs are already denting profit margins and there doesn’t appear to be any material relief in sight.”
Friday’s financial-results calendar did little to improve the market’s earnings situation.
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Gap (GPS, -18.0%) crumbled after reporting a 2-cent-per-share quarterly adjusted loss compared to a 67-cent profit the year prior; it also hacked at its current-quarter sales estimates and announced that Old Navy CEO Nancy Green would be stepping down. Verizon (VZ, -5.6%) beat profit expectations but said full-year earnings would come in at the bottom of its predicted range, which sits below analysts’ views.
The major indexes all bled plenty. The Dow Jones Industrial Average (-2.8% to 33,811) saw all of its 30 components finish in the red. The same went for 489 of the stocks in the S&P 500 (-2.8% to 4,271). The broader Nasdaq Composite finished 2.6% lower to 12,839, including tumbles for all but four of the Nasdaq-100’s components. (The Nasdaq-100 is made up of the 100 largest non-financial components of the Nasdaq Composite.)
“[The CBOE Volatility Index, or VIX] seems to express widespread fear that the U.S. economy might teeter into a recession,” says Michael Oyster, chief investment officer for asset-management firm Options Solutions. “Options investors are confronting the reality that the Fed may have to raise rates even more aggressively than what was expected six months ago.”
YCharts
Other news in the stock market today:
- The small-cap Russell 2000Â was hardly immune from Friday’s woes, dropping 2.6% to 1,940.
- U.S. crude oil futures fell 1.7% to settle at $102.07 per barrel.
- Gold futures retreated 0.7% to finish at $1,934.30 an ounce.
- Bitcoin swung back below $40k, retreating 4.1% to $39,499.01. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.
- HCA Healthcare (HCA) stock plummeted 21.8% after the Tennessee-based hospital operator lowered its full-year guidance due to higher labor costs. For 2022, HCA now expects earnings per share of $16.40 to $17.60 â down from its previous forecast for earnings of $18.40 per share to $19.20 per share â and revenue of $59.5 billion to $61.5 billion, $500 million lower than its prior guidance. The negative earnings reaction dragged on a number of healthcare stocks, including Universal Health Services (UHS, -14.0%), Tenet Healthcare (THC, -15.7%) and Community Health Systems (CYH, -17.9%).
- Kimberly-Clark (KMB) was a rare splash of green in today’s market, with the consumer staples stock jumping 8.1% after earnings. In its first quarter, KMB reported adjusted earnings of $1.35 per share on $5.1 billion in revenue â more than analysts were expecting. The maker of Cottonelle toilet paper also raised its full-year revenue and organic sales growth forecasts. Still, CFRA Research analyst Arun Sundaram maintained a Sell rating on the stock. KMB is “unfavorably positioned versus some of its more diversified peers in navigating through this historic inflationary cycle,” the analyst wrote in a note.
Investing Green on Earth Day
April 22 marks the 53rd birthday of Earth Day, which was created to highlight the need for environmental protections. And now, perhaps more than ever, Wall Street is getting involved in these efforts through the promotion of investments boasting strong environmental, social and governance (ESG) policies.Â
- SEE MORE Grow With These Green ETFs and Mutual Funds
Indeed, even this year’s Earth Day theme â “Invest in Our Planet” â reflects the growing corporate and investing community’s involvement in maintaining our green-and-blue space marble.
“While from the top down, governments have been grappling with the commitments needed for climate change solutions, from the bottom up, the private sector’s innovation and investment have been accelerating needed advances,” says Jason Hoody, head of investment manager research and sustainable investing research for LPL Financial. “Sustainable investing has the possibility of leaving a double legacy: There is the legacy of potential returns that every investor seeks, but there is also a legacy of stewardship by meeting current needs without overburdening the environment or future generations.”
That double legacy is, of course, the goal: Investors want to do right, but they also want to do well. Which is why ESG investors must thread a tight needle in targeting opportunities that are both good stewards of the world and community around them, as well as attractive investment targets.
To mark 2022’s Earth Day, we’ve looked at five ESG picks that we think fit the bill â each underlying company has made great strides in several environmental areas, and each stock boasts high-quality fundamentals.
- SEE MORE The 22 Best ETFs to Buy for a Prosperous 2022
Business vs Personal Checking Account: What’s the Difference?
They say you should never mix business with pleasure â and that applies to bank accounts, too. If youâre a freelancer, small business owner, or entrepreneur, chances are opening a business checking account could be a good move for you. While both business and personal checking accounts allow you to safely store money and utilize […]
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Budget Friendly Sustainable Swaps
Trying to be environmentally conscious can be difficult. Here are a few ways to reduce your carbon footprint without blowing your budget.
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The post Budget Friendly Sustainable Swaps appeared first on MintLife Blog.
Go Fish: The Best Seafood Restaurants in Seattle
Sensational seafood is always the catch of the day in Seattle, and we know the best spots to drop anchor!
The post Go Fish: The Best Seafood Restaurants in Seattle appeared first on The Rent.com Blog : A Renterâs Guide for Tips & Advice.
NorthOne Review – Is This Online Small Business Bank Right for You?
How to Pack a Go-Bag: The Expert Advice that Could Save Your Life
If there’s one thing that’s certain in life, it’s that uncertain times will come. Whether those uncertain times take the
The post How to Pack a Go-Bag: The Expert Advice that Could Save Your Life appeared first on The Rent.com Blog : A Renterâs Guide for Tips & Advice.
When You Claim Social Security Can Have Huge Implications for Your Spouse
Itâs unfortunate, but many people donât have a basic understanding of how claiming Social Security benefits early can haunt them â and their loved ones. For example, 45% of U.S. adults mistakenly believe they can file early for reduced Social Security benefits and then have them restored to a higher level once they reach their full retirement age, according to a 2021 Nationwide Retirement Institute® survey. This isnât true. Claiming Social Security early locks you in for reduced benefits for the rest of your life.
- SEE MORE How to Calculate the Break-Even Age for Taking Social Security
Another common â and potentially costly â mistake can occur when married couples fail to consider implications for their partner. If your spouse is depending on your benefits to help make ends meet, itâs important to know that this decision could impact their future financial security if you pass away before them.
The fact is, for married couples when one spouse passes, the survivorâs Social Security income will drop significantly. For most people, this is income they need to meet their basic living expenses. Thatâs why itâs important to consider taking steps to maximize survivorâs benefits.
An Example of How Social Security Survivor Benefits Work
Hereâs a hypothetical example of how this can play out:
Married couple Bob, age 66, and June, age 62, have just retired and both have decided to start taking Social Security right away. Bob, who is at his full retirement age, will get $3,000 per month, and June will get $1,900, which means their total household Social Security benefit is $4,900 per month.
If Bob died, Juneâs monthly Social Security retirement income would take an almost 40% hit. While she would still receive her husbandâs $3,000 a month check as a survivorâs benefit, her own benefit would disappear. So, at the household level, her Social Security income would drop by $1,900 â from $4,900 to just $3,000 per month.
That reduction in benefits, unfortunately, is unavoidable. However, the decision many couples make to claim Social Security early can make a tough situation even more difficult for surviving spouses. In our hypothetical example, Bob was claiming Social Security at his full retirement age. But letâs change Bobâs age and see how that affects the equation. Instead of retiring at his full retirement age of 66, say Bob retires at 64, and he decides to claim Social Security benefits early. More than half of people do just that, and many donât realize the potentially devastating impact that claiming early can have on their spouse.
Assuming that Bobâs full retirement age is 66, claiming at 64 would mean that instead of a benefit of $3,000 per month, his benefit is now about $2,625. And what if he retires even earlier? Claiming at 62 would cut his monthly Social Security benefit down to about $2,250. Those reductions are permanent, and they would also reduce Juneâs survivor benefit. Thatâs definitely something to think about before you pull the trigger on your own Social Security benefit.
- SEE MORE Yes, You Can Collect Social Security from an Ex-Spouse: Hereâs How
Itâs worth noting that if you claim early, your surviving spouse is entitled to either your reduced monthly benefit or 82.5% of what your full retirement age benefit would have been, whichever is higher. Either scenario will translate to reduced benefits for your partner.
Thatâs why itâs so important to realize that your decision on when to claim Social Security is more than just a decision about your personal benefits. And if your surviving spouse canât make ends meet, what are the financial implications for other family members who may find themselves in caregiving duties in the future?
How to Maximize Your Spouseâs Survivor Benefit
So, what can you do to maximize your spouseâs Social Security survivor benefit? The answer can be summed up in one word: Wait. For every year past your full retirement age that you wait to claim Social Security, you earn an 8% delayed retirement credit. Those annual increases continue up until age 70, at which point your Social Security benefit is as big as it can possibly get. In our hypothetical example, if Bob waited until age 70 to claim, his Social Security check would jump to $3,960, compared with just $2,250 if he claimed as early as he could. That higher monthly benefit would, in turn, become Juneâs survivorâs benefit after Bob dies. So, for the rest of her life, June would get an additional $960 per month.
It’s important to acknowledge that the decision to delay Social Security benefits comes at a cost, namely the loss of Bobâs Social Security income from age 66 to 70. Foregoing $3,000 of monthly income for those four years comes to $144,000. Thatâs a significant amount, but it could be worth it if June lives into her 80s or 90s, which is not uncommon for women with good health habits. This trade-off could make a lot of sense for:
- Couples who have the means to delay claiming without depleting their savings to a level that jeopardizes long-term financial goals
- Couples with significant age gaps
- Couples where at least one spouse has exceptional health or a history of longevity in their family
The Bottom Line
If maximizing your spouseâs survivor benefits is something thatâs important to you, then you have to figure out a way to generate the income you need to allow you to delay taking Social Security and let your benefit grow. By working with a financial professional, you can map out ways to bridge this gap. That could include solutions like annuities or life insurance, which can provide both guaranteed income and death benefits that can replace lost Social Security income in the future. Â
Unfortunately, only about half (47%) of the investors Nationwide surveyed said they receive professional guidance on how and when to claim Social Security benefits. Thereâs no reason to go it alone when trying to figure out the best plan for your family. Building a relationship with a financial professional is a great first step and can make a world of difference, not only for your own confidence, but also the retirement security of those you care about.
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