Where to get the best return on your cash amid rising interest rates

When the Federal Reserve hiked the target federal funds rate by another 0.75 percentage points this month, it opened up some new opportunities for savers to earn better returns on their cash. The Fed’s move is aimed at combating high inflation, which has sent costs for housing, food and energy soaring. The bad news for … Read more

Amid US recession fears, these steps can help protect your finances

It’s very easy to get swayed by headline news and market drops when you’re not clear on what you’re working towards. Amanda Wallace Head of insurance operations at MassMutual Meanwhile, a majority of Americans — 80% — are already worried about how a recession could impact their daily finances, MassMutual’s poll found. The survey was … Read more

Government bond yields soar as markets weigh threat of a recession

Hoxton/Sam Edwards | Getty Images Bond yields jumped this week after another major rate hike from the Federal Reserve, flashing a warning for market distress. The policy-sensitive 2-year Treasury yield on Friday climbed to 4.266%, notching a 15-year high, and the benchmark 10-year Treasury reached 3.829%, the highest in 11 years. Soaring yields come as … Read more

What the inverted yield curve means for your portfolio

Morsa Images | E+ | Getty Images As investors digest another 0.75 percentage point interest rate hike by the Federal Reserve, government bonds may be signaling distress in the markets. Ahead of news from the Fed, the policy-sensitive 2-year Treasury yield climbed to 4.006% on Wednesday, the highest level since October 2007, and the benchmark … Read more

How high inflation may affect which tax bracket you’re in next year

Jamie Grill | Getty Images As Americans grapple with soaring prices, experts say it’s likely we’ll see higher than usual inflation adjustments from the IRS for 2023 — covering tax brackets, 401(k) plan contribution limits and more. Built into the tax code, these yearly IRS changes aim to prevent so-called “bracket creep,” when inflation bumps … Read more

Why rising inflation is less likely to hurt some retirees

Sollina Images | Tetra Images | Getty Images Despite falling gas prices, inflation was higher than expected in August, curbing optimism for lower day-to-day expenses. But some retirees won’t feel the sting of elevated costs, experts say. Annual inflation rose by 8.3% in August, fueled by growing costs for food, shelter and medical care services, … Read more

Despite recession fears, most investors haven’t shifted 401(k) assets

Morsa Images | E+ | Getty Images Many investors worry a recession is coming amid rising interest rates, high inflation and stock market volatility. But the majority haven’t changed their portfolios, according to research from Fidelity Investments. Only 5% of 401(k) and 403(b) investors shifted asset allocations during the second quarter of 2022, the report … Read more

How to prepare your portfolio as interest rates continue to rise

dowell | moment | Getty Images After nearly eight months of market volatility, many investors still worry about rising interest rates and how those changes affect their portfolio. Some 88% of investors are concerned about rising inflation and interest rates, according to a JP Morgan Wealth Management study published Monday, polling more than 2,000 Americans, … Read more

What to know if you are unretired

Kelvin Murray | Getty Images A combination of record high prices and a record number of job openings has been encouraging more retirees to go back to work. The trend, called “unretirement,” rebounded this spring to pre-pandemic levels. About two-thirds, or 68%, of retirees would consider returning to work, according to a recent CNBC All-America … Read more

Millennials’ average net worth doubled during pandemic, report finds

andresr | E+ | Getty Images Covid-19 relief and record-low interest rates boosted many Americans’ finances during the pandemic. That has been especially true for millennials, who have on average built significant wealth. Millennials, born between 1981 and 1996, have more than doubled their total net worth, reaching $9.38 trillion in the first quarter of … Read more