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A Rate Cut Recap
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What does last week’s big Fed rate cut news mean for you? HerMoney CEO Jean Chatzky joined Jim Sciutto on CNN to weigh in on how it’s expected to shake up everything from the housing market to yes, even the presidential election. Watch here.
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Are You Ready For The CD Tsunami?
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Look out, a CD tsunami is coming. A year ago when rates were hovering at 5% or more, millions of Americans bought certificates of deposit. Many of them are set to mature starting at the end of the month. If you’re one of those people you’ll need to decide what to do with that money next. For example, should you put it into another CD, or do something else in light of the Fed’s recent rate cut?
John Blizzard, a banking veteran and CEO of CD Valet, joined Jean Chatzky on the HerMoney Podcast to go over some key points to know about CDs and how they can set you up for a secure financial future.
One of them? Knowing how to snag the best rates. As Blizzard explains, when consumers go to sites like Bankrate, NerdWallet, or Forbes to search for CDs, they don’t always see the best rates. "They make it look like you’re getting the full picture of the marketplace, but they’re getting paid by the sellers of the products who are on there," he explains. "The community banks and credit unions are just not seen digitally."
Using a tool like CD Valet gives consumers the chance to compare CD rates offered by community banks and credit unions, says Blizzard. "Almost every day, they offer a better rate than those large internet banks, let alone the big banks that pay almost nothing."
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This Week In Your Wallet
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People in Japan who are too scared to quit their jobs can hire someone to do it for them. The country’s labor shortage has workers exploring their options…but there’s one problem. "This famously polite country has a lot of people who hate confrontation," reports The Wall Street Journal. "Some worry they’ll cause a disruption by leaving, or they dread the idea of co-workers gossiping about what just transpired in the boss’s office." Saving the day are companies with staff members who will quit jobs on behalf of their clients. The biggest, named Exit, helps an average of 10,000 clients a year give their two-week notice. Could quitting agencies come stateside? Sounds like it could be the perfect side hustle for those of us looking to make extra $$$ (and take on the Miranda Priestlys of the world).
Swing voters will play a big role in deciding November’s election. Their #1 concern? "As for the issues that matter most to swing voters, pocketbook economics is No. 1 by far," reports The New York Times. "Loyal supporters of Harris or Trump, by comparison, name issues like abortion, climate change, civil rights or immigration more often than undecided voters do." Experts suggest that the race for the White House is so close, that issues other than the economy might sway enough voters to make a difference – but that’s a big "might." "Neither abortion nor immigration matters to as many swing voters as economic issues do," adds The Times.
Could you only buy secondhand clothes for a year? Lauren Taylor challenged herself to do just that and wrote about her experience for The Independent. On one occasion, she raided her mom’s closet to borrow a leopard print mini dress, high-waisted jeans and other gems. Not only did she save $$$, there were some other upsides, too. "That dopamine hit I used to get from putting on a brand-new outfit fresh from a shop, or opening a fast-fashion delivery package has been replaced by a new, warmer and longer-lasting sense of feel-good, that some of my clothes have a history, a second life, and that I’m not contributing to the fashion industry’s huge environmental impact," writes Taylor.
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Things That Are Costing You Money
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Hey you, put your phone down (after you finish reading this email, of course). As The Washington Post reports, looking at it too much at work could make you less productive. One way to cut down? Track your usage – we mean really track your usage. "If you have footage of you working, like from a home security camera, review it to get a better sense of how often you pick up your phone," said Julia Briskin, a research data scientist at the University of Illinois Urbana-Champaign.
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Just when you thought weddings couldn’t get more expensive, enter the "solorette," a new trend that has brides-to-be taking solo trips before their big day. Is it overkill…or a much-needed break from wedding planning madness? You be the judge.
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Heading to Cancun? As USA Today reports, those who travel to Mexico’s busiest airport and bring more than one large electronic device will be hit with a tax totaling 19% of its value. We say leave all the devices at home and really disconnect.
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Ask Jean
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Today’s question comes from Alice. She writes: What do you foresee concerning interest rate decreases for HELOCs? The 8.5% I’m currently paying is killing me.
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Good question, Alice! As HerMoney reported, in recent years, home equity loans and lines of credit (HELOCs) became increasingly expensive as interest rates climbed. While these rates will likely fall alongside the Fed cuts, the process will be gradual.
"HELOC rates will mimic the reduction in benchmark interest rates, but it will take a lot of time and a lot of interest rate cuts to ease the interest cost burden on borrowers," Greg McBride, Chief Financial Analyst at Bankrate.com tells HerMoney.
In other words, this means homeowners should remain vigilant about paying down their debt, and be on the lookout for refinancing opportunities as rates decline.
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Submit your questions to Jean here.
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More For You To ♥
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📈 One way to earn more money without more work: Increase the interest rate on your savings account by opening a CD. Go check the interest rate on your savings account right now. If it’s not earning 4.5%, then it’s time to consider making a move. CD Valet can help. It’s an online marketplace connecting savers like you with financial institutions so you can compare and open CDs with the best rates and terms nationwide. Bonus: It’s completely free to use. Learn more here.**
🎧 You need an investment plan for retirement. It may be scary, but it’s our reality: Many of us used to have pension plans to keep us afloat in retirement, but now the vast majority of us rely on Social Security (which could be depleted by the mid-2030s) and our 401(k)s. On this HerMoney Podcast* episode, we discuss three of the best strategies for retiring with confidence. The HerMoney Podcast is made possible by Edelman Financial Engines.
💰 Speaking of retirement: you need a new budget for it, too. We can help. Our 8-week financial coaching and budgeting program, FinanceFixx, is dedicated to helping pre-retirees (and new retirees!) create or refresh their spending habits. The average participant saves $1,500 during the program. Sign up for our October session here.
💛 Thank you to Gainbridge® for supporting the HerMoney podcast. Gainbridge® created ParityFlex™, a multi-year guaranteed annuityÂą, to offer women security and flexibility at a time when they need it the most—retirement. Learn more about ParityFlex™ here.**
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We maintain a strict editorial policy and a judgment-free zone for our community. We strive to remain transparent in everything we do. Website posts and newsletters may contain advertisements, links and mentions of products from our partners. Learn more about how we make money.
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*The HerMoney podcast is proudly sponsored by Edelman Financial Engines. Unlock your wealth potential with our sophisticated wealth planning. Continue your journey at EdelmanFinancialEngines.com. Sponsored by Edelman Financial Engines – Modern wealth planning. All advisory services offered through Financial Engines Advisors L.L.C. (FEA), a federally registered investment advisor. Results are not guaranteed. AM3328131.
HerMoney is not a client, agent, representative or affiliate of EFE.Edelman Financial Engines ("EFE") is a sponsor of the "HerMoney with Jean Chatzky Podcast," created by HerMoney Media. Inc. ("HerMoney") and provides cash compensation to HerMoney Media. HerMoney receives a sponsorship fee from Edelman Financial Engines depending on the number of podcast downloads, as measured by the end of the calendar year. The sponsorship fee is paid on a quarterly basis each year. In turn, HerMoney also provides promotional deliverables regarding EFE on the HerMoney podcast, newsletter, and social media channels. Due to this sponsorship arrangement, HerMoney has an incentive to endorse EFE and its services.
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**This is a sponsored post
¹ Withdrawals are taxed as ordinary income and, if taken prior to age 59 1/2, there may be a 10% federal tax penalty. Withdrawals may result in a surrender charge or a market value adjustment (MVA) and excess withdrawals may result in a reduction of future payments under the guaranteed lifetime withdrawal benefit. Guaranteed Lifetime Withdrawal Benefit provided so long as your account value hasn’t gone to $0 due to excess withdrawals. Annual Percentage Yield (APY) rates are subject to change at any time, and the rate mentioned may no longer be current. Please visit Gainbridge.io for current rates, full product disclosures and disclaimer. ParityFlexTM, a multi-year guaranteed annuity, is issued by Gainbridge Life Insurance Company in Zionsville, Indiana.
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