As a woman, I sometimes find myself not wanting to bother with financial planning, insurance and tax returns, just to name a few financial issues. I am married to a financial professional so this makes it easy for me to not get in the weeds on these matters. However, I know I need to be as intelligent as I can be for many reasons.
The Fed is setting the stage for huge problems down the road for pension funds and potential pension recipients. There are also going to be problems for insurance companies and other firms onto which many corporate employers have offloaded their pension obligations in order to clean up their balance sheets and minimize their future financial risks.
Cheri Bustos, D- Ill., said Tuesday, hours before Pelosi's midnight deadline. Bustos hopes Republicans will agree to Democrats' $2.2 trillion proposal. While President Donald Trump has urged his party to “go big” on a package, many Republicans are still balking at Democrats' huge price tag.
The U.S. will transition to a clean-energy mix regardless of who wins the White House. But the pace of that change, and with it, the toll on the environment in the meantime, could look dramatically different depending on the election outcome. Sasha Mackler, energy project director for the Bipartisan Policy Center says “the trends in the power sector really demonstrate that…
The Securities and Exchange Commission today announced charges against The Goldman Sachs Group Inc. for violations of the Foreign Corrupt Practices Act (FCPA) in connection with the 1Malaysia Development Berhad (1MDB) bribe scheme.
The SEC’s complaint, filed in the U.S. District Court for the Southern District of New York on June 4, 2019, alleged that Kik sold digital asset securities to U.S. investors without registering their offer and sale as required by the U.S. securities laws.
As how we shop changes (think mobile shopping and buying online, picking up in store), we have to adapt as shoppers, too. The best prices and first available inventory go to consumers who are more than just shoppers. They’re also deal-hunting detectives and strategists. Here’s how to shop smart in the midst of the pandemic.
Although Americans typically assume they will retire when they want, and on their own terms, many are in for a surprise. Half of the retired respondents to an Allianz Life Insurance survey said they left work earlier than expected.
There’s the segment of the economy where retirement accounts are flush. Stock markets recently hit record highs, after all, thanks to loose monetary policy, optimism about a future COVID-19 vaccine and assorted animal spirits. Then there’s the large segment of the economy that owns no stocks, has little to nothing saved for retirement and isn’t sharing in this wealth creation.
The emotional roller coaster that the upcoming presidential and congressional elections can bring can fuel emotions when it comes to managing money and investments. But there’s an old adage that financial advisers still stand by: Don’t play politics with your portfolio.
Given the impressive economic recovery to date and improving underlying technical and fundamental conditions, we think small cap stocks in particular may have attractive growth potential. Despite election and COVID-19-related risks, we see further gains ahead.
Credit card balances fell by $76 billion April through June, the steepest decline on record, according to an analysis by the Federal Reserve Bank of New York. Research by NerdWallet backed that up, finding that credit card balances carried from one month to the next dropped 9.15%, or more than $600 per household with this type of debt.
Retirement savers may never have had it more difficult. For decades, financial advisors routinely recommended an investment portfolio of 60% stocks and 40% bonds. It was seen as a goldilocks formula, combining potential for growth with protection if stock prices fell.
America’s largest banks are steeled for a wave of loan defaults and missed payments that still haven’t arrived. Thanks to an initially immense amount of support from Washington, that pain appears to have been pushed out to next year.
A leading seller of fixed index annuities, American Equity announced the Brookfield deal with a Sunday news release. Brookfield will acquire a 19.9% ownership interest in the common shares of AEL in two stages, starting with an initial purchase of a 9.9% interest at $37 per share promptly following required regulatory approval.
Imagine this: you’re great at your job. You make sales, you manage your clients’ assets well and you’re an attentive advisor who makes sure to follow up. But you can’t get a call back from referrals and your prospects aren’t scheduling appointments. You can’t figure out why.
In March, the Federal Reserve slashed interest rates to near zero in response to the coronavirus pandemic and ensuing economic downturn. In September, the agency’s chair, Jerome Powell, announced that it would keep rates at that level through 2023 or potentially longer.
With mortgage rates near historic lows, now might seem like a good time for your clients to consider a mortgage refinance. Beginning December 1, Fannie Mae and Freddie Mac will begin charging a 0.5% adverse market fee to refinance your mortgage. What is the purpose of Freddie Mac and Fannie Mae’s new fee?
The S&P 500 closed at 3,534 Monday, less than 2 percent below the all-time high of September 2, just before markets tumbled. The Dow and Nasdaq results were similar. Clearly, the markets think everything is awesome. But are they really?
New research from Northwestern Mutual’s 2020 Planning & Progress Study reveals that the savings rate among American adults aged 18+ is up, and it’s likely the result of their concerns about what could come next financially and economically at this extraordinary moment in history.
The Securities and Exchange Commission has charged Houston-based seismic data company, SAExploration Holdings Inc. (SAE), and four former executives for a multi-year accounting fraud that falsely inflated the company’s revenue by approximately $100 million and concealed the theft of millions of dollars by the executives.
For many business owners, the decision surrounding how and when to exit the business can be complicated and emotional. It is one of the most important life events for any business owner, yet many push planning to the back burner, believing it can be tackled later when they are ready. In fact, many things in life happen before we are ready.
This earnings season, corporate America will get closer to the return of earnings growth—which is likely in the first quarter of 2021. We probably will have another decline in profits for third quarter 2020, though potentially only about half as big as last quarter’s.
Millions of Americans face unprecedented personal finance concerns as the coronavirus pandemic continues to affect unemployment rates months after the first case of COVID-19 was reported in the United States. The Federal Reserve took steps in March to encourage consumer spending by lowering interest rates to near 0%.
While a healthy culture can make or break your organization’s success, like any good thing in life, it takes hard work and perseverance. Research shows organizations that intentionally invest their efforts to improve workplace culture and align it with company values are not only more profitable, but also more recognized.
The federal government, to save the U.S. economy began offering financial relief to some of its major industries including oil and gas. Since such relief began in March, oil and gas companies issued almost $100 billion in new bonds backed by the Federal Reserve and U.S. Treasury Department, per a report conducted by several consumer groups.
September, as expected, was a difficult month, with markets in the U.S. and abroad down pretty much across the board. Despite this correction, which came after two very strong months, markets were left with strong gains for the quarter, both here and abroad.
Morgan Stanley has actively gone after potential targets this year. The prosed acquisition Thursday comes just days after it closed on one of the biggest deals on Wall Street since the 2008 financial crisis, the $13 billion takeover of E-Trade Financial.
Eli Lilly and Company says it has asked the U.S. government to allow emergency use of an experimental antibody therapy. The drug is similar to one President Donald Trump received on Friday from a different company.
Interest rates recently hit all-time lows as the Federal Reserve made cuts to mitigate the financial impacts of COVID-19. If any of your clients are homeowners with a monthly mortgage payment, they might be wondering if now is a good time to refinance.
Strong financial support from the government and the Federal Reserve have spurred a solid recovery from the pandemic recession, but the rebound may falter without further aid, Fed Chair Jerome Powell warned Tuesday. Powell said that government support including expanded unemployment insurance payments, is desperately needed.
—Stocks dropped suddenly on Wall Street Tuesday afternoon after President Donald Trump ordered a stop to negotiations with Democrats over another round of stimulus for the economy, which has been punched into a recession by shutdowns related to the coronavirus pandemic.
Speculation has been increasing that the November election results may be delayed or disputed, or both. A contested election might affect financial markets in several ways. Also, the news that President Donald Trump has tested positive for COVID-19 may potentially impact markets as well.
The rapid evolution of communications technology that has helped businesses stay connected during the COVID-19 pandemic is also speeding up big changes in organizational structure that will outlive the virus, according to Shayan Hussain, managing director for investment firm BlackRock.
It is impossible to predict how much money your client will need in retirement since the all the variables of the equation are subject to change.
It is well known that fraud follows the money, so it may seem like it was only a matter of time before fraudsters expanded into what are many consumers’ largest individual accounts: their 401(k) plans.
Potential is about what’s inside us. So how do you stay on top and highly motivated doing the same thing for five decades? The answer is simple: potential is power. And power works as long as you do. It won’t run out as long as you don’t give up.
Clients who said they are satisfied with their advisor relationships said they still want to discuss their financial plans for retirement and how they manage their money. But they also want to discuss topics such as their careers, their future goals and aspirations, their potential long-term care expenses, and even their family members’ finances.
The SEC said Morgan Stanley hedged synthetic exposure to swaps by purchasing or selling the securities referenced in the swaps, and it separated its hedges into two aggregation units – one holding only long positions, and the other holding only short positions.
A virtual presence went from being optional 10 years ago to a necessity in essentially every industry and profession. But having a social media account or a website is only the standard in our digital age, so planners are becoming innovative with their approach in the new wave of online engagement.
Even as the economy recovers, the sticking point is unemployment. Following the peak of 14.7% in April, unemployment declined to 13.3% in May, 11.1% in June, 10.2% in July and 8.4% in August. The latest forecast is that the U.S. will end the year with 7.8% unemployment, and that the rate will continue to decline to 6.3% at the end of 2021.
The Securities and Exchange Commission today announced charges against J.P. Morgan Securities for fraudulently engaging in manipulative trading of U.S. Treasury securities. J.P. Morgan Securities admitted the findings in the SEC’s order, and agreed to pay disgorgement of $10 million and a civil penalty of $25 million to settle the action.
The recent correction in the S&P 500 Index’s technology sector presents a unique challenge to markets following a historic stretch of outperformance as technology’s share of the market has ballooned in size.
On August 27, speaking at the Federal Reserve’s newly-virtual Jackson Hole conference, Chairman Jerome Powell announced two key adjustments to the Fed’s longer-term monetary policy strategy, coming as the culmination of its nearly two-year review of the monetary policy framework.
The Securities and Exchange Commission today filed settled actions against two public companies for violations that resulted in the improper reporting of quarterly earnings per share (EPS) that met or exceeded analyst consensus estimates.
Financial advisor Chris Lund is getting more referrals than ever, despite abandoning his public office months ago amid the coronavirus shutdown. Lund is among advisors who have successfully utilized social media and new ways of connecting with clients to keep their firms growing during the pandemic.
U.S. student loan debt hit an all-time high of nearly $1.5 trillion in November 2019, according to a Bloomberg analysis. In early 2020, the number of student loans in repayment reached $686.5 billion in the U.S., while $119.8 billion worth of student loans were in default.
The Securities and Exchange Commission today announced settled charges against Germany-based automaker BMW AG and two of its U.S. subsidiaries for disclosing inaccurate and misleading information about BMW’s retail sales volume in the U.S. while raising approximately $18 billion from investors in several corporate bond offerings.
Although pension investments have recovered from a March low point as equity markets rebounded during the summer, they’re likely to fall short of their 2020 targets by 4 to 5 percentage points, according to an analysis by the Pew Charitable Trusts.
The Securities and Exchange Commission today announced that it has obtained an asset freeze and other emergency relief to halt a series of microcap market manipulation schemes that defrauded retail investors.
It is often strategy that determines whether advisors are successful or whether they underperform, said Chip Roame, managing partner of Tiburon Strategic Advisors. In particular 11 things that an advisor needs to figure out in order to be a success.
When seasons change, the major central banks meet. The Federal Reserve, European Central Bank, and Bank of Japan all met in September to discuss their outlooks on the economy and monetary policy going forward. Key observations from the meetings include maintaining policy while keeping an eye on COVID-19.
The Securities and Exchange Commission today charged Yinghang “James” Yang, a senior index manager at a globally recognized index provider, and his friend Yuanbiao Chen, a manager at a sushi restaurant, with perpetrating an insider-trading scheme that generated more than $900,000 in illegal profits.
As expected, the second quarter of 2020 was the most debilitating for the US economy since the government began keeping records in 1947 – and about four times worse than the weakest quarter of the Great Recession. The Bureau of Economic Analysis said real gross domestic product decreased at an annual rate of 31.7% in the second quarter of 2020.
The SEC’s complaint alleges that over a two-year period, Milton J. Dosal, Jr. raised nearly $100,000 from approximately 41 investors under the guise that he would day-trade stocks on their behalf. According to the complaint, Dosal, a car enthusiast, met a number of investors through car club events.
Yes, stocks are expensive. Most everyone along Wall Street agrees on that following their amazing return to records despite the still-raging pandemic. A third measuring stick, popularized by Nobel prize-winning economist Robert Shiller at Yale University, says the S&P 500 was recently trading at more than 30 times its average earnings.
Nearly two-thirds (65%) of advisors find that working from home has been just as effective as working from the office, and 86% report that they have been able to host productive virtual meetings with clients. Millennial advisors have been most successful during the transition to remote working, with 90% able to host productive virtual client meetings.
When preparing for retirement, it is important to understand the money cycle. Most people believe there are only two parts to it, but there really are three: accumulation, preservation and distribution. While you are working, you are in the accumulation phase.
Prospecting, obtaining referrals and securing business in financial services require a foundation of trust among multiple parties. You can use just five percent of your time to network with confidence – generating and maintaining likability and trust by elevating your professional presence.
Right now, the U.S. economy is far from healthy and inflation has been relatively subdued in recent years, which can hurt growth. This has prompted the Federal Reserve to pledge to keep interest rates at basically zero until at least through 2023 and try to spur inflation by allowing it to rise above the 2% sweet spot it targets for the economy.
Retirees and pre-retirees (ages 50-75) displayed a lack of knowledge around awareness of income in retirement, basic investment management and understanding of long-term care needs – yet those with a written retirement plan in place reported feeling more prepared to navigate the COVID-19 pandemic than their counterparts did.
Analysts have many ways to measure whether a stock is over- or under-valued, rather than simply looking at its price. Because stocks tend to move with corporate profits over the long term, one favored method is to divide a stock’s price by how much profit per share the company made over the prior 12 months.
Across the United States, permanent job losses doubled from 1.4 million to 2.8 million over the last four months, said Michael Hicks, director of Ball State University’s Center for Business and Economic Research. The job loss tops all previous recessions except the Great Recession just over a decade ago.
Stocks closed lower on Wall Street Wednesday after a rally following the Federal Reserve’s latest interest rate policy update faded in the final hour of trading. The Fed’s decision to leave rates unchanged had been widely expected by Wall Street and continues the central bank’s policy of unprecedented support for financial markets.
Stocks are ticking higher on Wall Street Wednesday, ahead of a decision on interest-rate policy by the Federal Reserve scheduled for the afternoon. One of the primary reasons Wall Street has roared back to record heights despite the still-raging pandemic is the immense aid the Federal Reserve is providing.
Today’s retirees, and those of tomorrow, have had a sense of purpose their entire lives– and they don’t intend to give it up just because they’ll no longer be working full time. In fact, 55% of recent retirees said retirement is the time for “a new chapter in life,” compared with just 22% who said it was “a time for rest and relaxation,” according to a new survey.
The Securities and Exchange Commission charged Park View School, Inc., a state-funded, nonprofit charter school operator based in Prescott Valley, Ariz., and its former President, Debra Kay Slagle, with misleading investors in an April 2016 municipal bond offering.
—Federal Reserve policymakers will meet this week for the first time since they significantly revised the Fed’s operating framework in ways that will likely keep short-term interest rates near zero for years to come. But the statement that Fed policymakers release Wednesday is expected to contain revisions that reflect sweeping changes.
A Colorado court recently found in favor of Great-West in a 2016 lawsuit claiming the insurer had charged “excessive fees” to its retirement plan participants. The case outcome is good news for insurers wary of increasing regulation focused on retirement plans and rollovers.
After virtually no volatility since March, market-watchers got a heavy dose of it with the recent three-day 10% correction in the NASDAQ—one of the fastest corrections ever, and the fastest ever from a record high. Historically, the NASDAQ has tended to rise after fast corrections. What will happen this time?
The Securities and Exchange Commission announced charges Friday against five Atlanta-based individuals, including film producer Ryan Felton, rapper and actor Clifford Harris, Jr., known as T.I. or Tip, and three others who each promoted one of Felton’s two allegedly unregistered and fraudulent initial coin offerings (ICOs).
A look at some of the key business events and economic indicators upcoming this week: Wall Street expects that FedEx’ s latest quarterly report card will show mixed results. The Federal Reserve delivers its latest interest rate policy update and economic assessment Wednesday.
The Securities and Exchange Commission today announced that the court-appointed receiver has begun the final $1 billion distribution to investors in connection with the SEC’s action against defendants Paul Greenwood, Steven Walsh, and their affiliated WG Trading entities.
—Stocks are trying for another comeback on Wall Street Friday, as a tumultuous week of big swings comes to a close. Momentum has been lightning-quick to shift on Wall Street recently, and a similar morning gain for the S&P 500 on Thursday gave way to a 1.8% loss for its fourth drop in five days.
The past week has seen continued improvement with the coronavirus, with the case growth rate down to new lows and case growth below 30,000 per day for the first time since June 21. The pandemic remains under control, and things are still getting better. The control measures are working.
Technology and energy companies led a broad sell-off on Wall Street on Thursday that wiped out nearly all of the market’s gains from a strong rally the day before. The S&P 500 lost 1.8% after having been up briefly by 0.8% in the early going. Energy companies fell the most as the price of U.S. crude oil prices dropped 2%.
If you think your tax rate will be higher when you take withdrawals in the future, you should opt for the Roth and pay your taxes now. However, if you expect your tax rate will be lower in the future than it is today, you should choose a traditional IRA and push off the tax bill.
Expect rates to remain low for a while. The Federal Reserve said it would keep its benchmark interest rate near zero for as long as it takes until the economy starts to recover from the coronavirus crisis, indicating it may take several years.
With the S&P 500 Index up more than 50% since the March lows and stocks pricing in an optimistic recovery in the economy and corporate profits, we believe stocks may be due for a pullback—and the drop that occurred September 3–4 may be the start of it. Here are some other things to look out for in the weeks ahead.
The firm predicts that interest rates will remain low, with the Federal Reserve not raising its federal funds rate for at least five years. And, despite several emerging forces trying to raise inflation, it expects it to remain below central bank targets as these forces are offset by the impact of several variables.
As the severity of COVID-19 continues to alter America’s workforce, investment advisories across the country have transitioned to the work-from-home model. From Wall Street to Main Street, we have seen a seismic shift in culture to ensure safety among employees and the public.
The SEC charged Daniel Kamensky, co-chair of the unsecured creditors committee in the Neiman Marcus Group Ltd. LLC Chapter 11 bankruptcy proceedings, with abusing his position on the committee to attempt to benefit a New York-based management firm that he founded and where he served as managing partner and portfolio manager.
Federal Reserve Chairman Jerome Powell recently announced with much fanfare that the Federal Reserve would tolerate periods of inflation above 2% to compensate for failing to reach that target much of the last two decades. During World War II, the Fed kept interest rates low to enable the Treasury to finance huge deficits.
Disruption and change are two of the most enduring constants in the financial services industry. COVID-19 represents an extreme example of this, but other challenges like recessions, market crashes and geopolitical events lurk just around the corner.
The nation is awaiting a vaccine that can halt the COVID-19 pandemic in its tracks, allowing life – and the battered U.S. economy – to return to normal. But a new study suggests the crisis has generated fears that are likely to dampen risk-taking and economic output for decades by increasing the “perceived probability of an extreme, negative shock in the future.”
Our research suggests that people can respond to persistently low interest rates by delaying Social Security and changing the way they save for retirement. First, low interest rates make it more attractive to delay claiming Social Security, which can be obtained at any age between 62 and 70.
Even if inflation trends upward and rises above 2%, the new Fed policy permits it to not immediately tighten interest rates to slow expansion. The Fed’s objectives, which have at times been in conflict, are to maximize employment while keeping inflation low.
A second term for President Donald Trump would likely feature a continuation of the pro-growth policies from the first term of his administration, and importantly for financial markets, a continuation of the status quo.
The 2021 MDRT Executive Committee “focuses on supporting the industry, its members and their clients during unprecedented times” as Ian Green, Dip PFS, takes his place as 95th president and Gregory Gagne joins as secretary, the organization said in a news release.
No one involved with the program — from the IRS to Arizona business organizations to Washington think tanks — could say how many businesses will actually participate in the voluntary program, and how many workers might be affected.
Nearly half (49%) of respondents say their monthly spending has decreased over the course of the last year. Among that group, more than half (53%) say they are spending less because they are worried about the current economic situation and another 26% are spending less because they say their monthly income has decreased.
What a month August was, with the S&P 500 Index up more than 7%, for the best August since 1984. Not to be outdone, this is the first time in history August saw two separate 6-day (or more) win streaks. The S&P 500 gained 16 days in the month, for the most since 16 in April 2019. But now September is here…
Financial adviser Dean Vagnozzi says a federal lawsuit criticizing lender Par Funding and Vagnozzi’s ties to the firm could end up hurting investors in his unrelated funds, but the court-appointed receiver in the case says Vagnozzi’s recent actions make him hard to trust.
The Securities and Exchange Commission charged two Maryland companies Friday and their principals for a scheme that allegedly defrauded approximately 1,200 investors, many of them African immigrants, of more than $27 million.
New joint research from the Money Management Institute and Aon, a leading global professional services firm providing a broad range of risk, retirement and health solutions, finds that the most successful financial advisors, those defined as managing more than $500 million in assets, are taking advantage of the digital tools.
The Securities and Exchange Commission today announced that Herbalife Nutrition Ltd. has agreed to pay more than $67 million to settle charges that it violated the books and records and internal accounting controls provisions of the Foreign Corrupt Practices Act (FCPA).
The central bank just revised the goals of its monetary policy. The laymen’s translation? If you didn’t think rates were going to be low for a long-time, you were not listening. Cheap money is not a fad, people. Mortgage-rate cuts, for example, gave house hunters 25% more buying power in less than two years. That’s not ending soon.
Stocks edged further into record heights on Wall Street Thursday after the Federal Reserve made a major overhaul to its strategy, one that could keep interest rates low for longer. Prices for stocks, bonds and gold made several U-turns after Fed Chair Jerome Powell gave a highly anticipated speech.
For decades, the Federal Reserve made clear its readiness to raise interest rates at the earliest signs of creeping inflation. In a sign of how vastly the U.S. economic landscape has changed, Chairman Jerome Powell may be on the verge of sending a wholly different message this week: That the Fed plans to leave its key rate pinned near zero.
Even as the stock market is at all-time highs, interest rates are close to all-time lows. This scenario makes sense, as lower rates generally equate to more valuable stocks. As such, this is indeed a condition that has supported values.