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Stat Of The Day
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70%
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A new poll shows more than 70% of Americans think landing a better job right now is no easy feat. With economic jitters – and a touch of AI anxiety – many workers are hanging on to their current gigs. Yes, the grass might look greener, but it often comes with its own weeds.
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This Week In Your Wallet
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What if you could boost your retirement income by 23%? A new Goldman Sachs study says it’s possible if you use a single premium immediate annuity (SPIA). With these annuities, you hand over a lump sum right before retirement, and in return, the insurance company guarantees steady payments for life (you choose how often). Goldman found the average annual payout among the top providers was 7.1%. In this example, putting 30% of your savings into a SPIA and following the classic 4% withdrawal rule on the rest lifted the effective withdrawal rate to 4.93%. Translation? A 23% boost in income – no magic, just math.
💰 Ready to explore annuities? Here are some of the best options for securing a consistent income stream in retirement.
Thanks to the government shutdown, the Bureau of Labor Statistics has largely gone silent – no jobs report, delayed inflation data, no true economic pulse. So where do we turn when Uncle Sam stops counting? Axios points to alternative signals – OpenTable reservations for spending trends, Indeed job listings for the labor market, and even the lipstick index. Quirky? Yep. But, as Axios notes, "There's a lot of fun economic data out there, but no real substitute for the official version."
Investing is hands-down the best way to grow money over the long haul. But as you invest, watch for red flags, or it could cost you. This week, we’re spotlighting five warning signs, starting with unrealistic promises of soaring returns. "If a company, broker, or advisor claims to guarantee consistent, sky-high profits without risk, that should set off alarm bells," writes David Capablanca, an architect turned financial trader who hosts The Friendly Bear podcast. "Investors should approach any offers for no-risk, ‘guaranteed’ returns with skepticism and conduct independent research to verify such claims. Only with thorough research and cautious decision-making can we avoid investment scams."
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Things That Save You Money
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Morgan Housel Says Quality Time > Expensive Trips
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If you’ve been part of the HerMoney community for a while, you’ve probably heard us rave about The Psychology of Money more than a few times. The book, by Morgan Housel, has helped millions rethink their financial lives.
Now he’s back with a new release, The Art of Spending Money. Housel recently joined the HerMoney Podcast to talk about something too often overlooked – how to actually enjoy the money we’ve worked so hard to save.
One big takeaway? Happiness usually isn’t about things – it’s about experiences. And you don’t always need to spend a fortune on them. Housel recalls a trip to Hawaii with his family, building sandcastles with his young kids. It was a "10 out of 10" moment.
"But then it hit me that if we had stayed home and I was building Legos on the living room floor with them, that’s a 9 out of 10," he shares. "What was making me happy was the uninterrupted time with my kids, not the sunshine, not the beach. Even though those are lovely, it was the quality time that mattered. Spending money is often just a door that can open up to lead you to something that will bring you true quality happiness in life."
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Ask Jean
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Today’s question comes from Jen. She writes: I have been working to keep my credit rating high, and I monitor my rating through Experian’s app. I see my score go up and down, and I wonder why it goes down when nothing seems to change on my end. I have never been late paying bills, but I only have "very good" instead of "exceptional" payment history. Help me understand this!
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That’s frustrating to say the least, Jen. To answer your question, we tapped Lisa Gill, a credit expert with Consumer Reports. Here’s what she had to say:
First, congratulations on keeping such a great credit history! You don't mention it, but I wonder if you often simply pay off the entire amount of your credit card bill each month. It seems strange to say, but doing so can sometimes hurt your score. Carrying a small balance from month to month, paying it down, and sometimes paying it off entirely, signals to the algorithms that you know how to manage credit, which is, in part, what the credit score is about.
If you don't use the card very much or pay it off entirely every month, you can definitely be 'dinged' on your score and that excellent rating. My personal hack here is that if you want to increase your score, use the card minimally. Pay it off almost entirely, but leave about 5% to 10% unpaid. (Yes, that means you’re paying a little interest — but if the score is the primary goal right now because you want to apply for a big loan like a mortgage or auto loan, it can be worth it.) Repeat this for a few months, and watch as the score increases. I've noticed the algorithm likes it when you use the card, paying it almost off, while still keeping your available credit usage to 30% or less.
Small variations in your score, too, can happen, says the CFPB, if a score is calculated on a day you have a high balance, even if you pay it off in full the next day.
Otherwise, it always pays to review your entire credit report in detail to see if there are any old cards or even loans where there was a missed payment or a payment not properly recorded. Records on such things are kept active for seven years, so missed payments on an old card from 2018 or so could still be counted.
Plus, don't forget that credit reports can contain errors from banks, lenders, collection agencies, and credit card companies, so it's helpful to read yours over every few months and file a dispute (in writing if possible) if you find a mistake. Follow the steps the CFPB suggests here.
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Submit your questions to Jean here.
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