Millions of Americans are only $400 away from financial hardship

An unexpected expense of $400 can force more than one-third of American adults into a difficult financial situation. Emergency expensesIf faced with an unexpected expense of $400, 61% of adults could cover it with cash, savings, or a credit card paid off at the next statement. A recent survey from the New York Fed found an alarming rise in credit card delinquencies among younger Americans of 90 days or more. Race and limited access to financial servicesThe percentage of American adults who remai


An unexpected expense of $400 can force more than one-third of American adults into a difficult financial situation. Emergency expensesIf faced with an unexpected expense of $400, 61% of adults could cover it with cash, savings, or a credit card paid off at the next statement. A recent survey from the New York Fed found an alarming rise in credit card delinquencies among younger Americans of 90 days or more. Race and limited access to financial servicesThe percentage of American adults who remai
Millions of Americans are only $400 away from financial hardship Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-23  Authors: eric rosenbaum, eric roberge, founder, financial planner at beyond your hammock
Keywords: news, cnbc, companies, millions, economic, card, expense, fed, pay, americans, adults, unexpected, hardship, 400, unbanked, financial, credit, away


Millions of Americans are only $400 away from financial hardship

A woman enters an All American Check Cashing location in Brandon, Miss., May 12, 2017. Rogelio V. Solis | AP

Many Americans describe their situation as financially stable, but economic fragility is persistent across the U.S., especially related to income level, educational attainment, and ethnicity and race. An unexpected expense of $400 can force more than one-third of American adults into a difficult financial situation. That’s according to the just-released “Report on the Economic Well-being of U.S. Households for 2018,” a study that Fed has been conducting since 2013. The Fed survey finds that many families have experienced substantial gains since 2013, but the decade-long economic expansion and the low unemployment has done “little to narrow the persistent economic disparities by race, education, and geography.” The Fed indicated that a primary goal of the 2018 study was to explore the reasons behind persistent financial fragility across much of the U.S. Seventy-five percent of adults say they are either doing “okay” or “living comfortably,” up 12 percentage points from the first study in 2013. The picture changes when race is factored into the responses. Nearly 8 in 10 whites are at least doing okay financially versus two-thirds of blacks and Hispanics, and that gap has not budged since 2013.

Emergency expenses

If faced with an unexpected expense of $400, 61% of adults could cover it with cash, savings, or a credit card paid off at the next statement. But 27% would have to borrow or sell something to pay for the expense; 12% would not be able to cover the expense. Seventeen percent of adults are not able to pay all of their current month’s bills in full, led by credit card bills. Another 12 percent of adults would be unable to pay their current month’s bills if they also had an unexpected $400 expense that they had to pay.

A recent survey from the New York Fed found an alarming rise in credit card delinquencies among younger Americans of 90 days or more. Medical expenses remain a point of financial stress, with one-fifth of adults saying they had major, unexpected medical bills to pay in the prior year. One quarter of adults said they skipped necessary medical care in 2018 because they were unable to afford the cost.

Race and limited access to financial services

The percentage of American adults who remain unbanked and underbanked are higher among minorities. Fourteen percent of blacks and 11% of Hispanics are unbanked, versus 4 percent of whites. The unbanked or underbanked also are more likely to have low income, and less education. One percent of those with incomes over $40,000 are unbanked, versus 14 percent of those with incomes under that threshold. More from Invest in You Military families are living on the financial edge

Retirement looms. Here is how to catch up on investing, fast

Think buying a home is a great investment? Think again Being unbanked leads to reliance on higher-cost financial services. One-fifth of adults still cannot access traditional banks and credit unions. and 89% of people who use alternative financial services purchase a money order or cash a check at a place other than a bank. Twenty-eight percent borrowed money, including payday loans, paycheck advances, pawn shop or auto title loans, and tax refund advances. Thirty-five percent of blacks and 23 percent of Hispanics use alternative financial services, compared to 11 percent of whites. More than one-fourth of blacks are not confident that a new credit card application would be approved if they applied—over twice the rate among whites.

Retirement savings remains a struggle

Only 36% of non-retired adults think that their retirement saving is on track. One-quarter have no retirement savings or pension. Among non-retired adults over the age of 60, less than half (45%) believe that their retirement saving is on track. Even among Americans with access to 401(k) and IRA plans, Six in 10 told the Fed they have little or no comfort in managing their investments.

Education and race

The ballooning student loan debt, now at roughly $1.5 trillion and the second-largest source of debt in the U.S. after mortgages is a national crisis, with a typical monthly payment between $200 and $299 per month. But higher education remains a key to economic well-being. Adults with a bachelor’s degree or higher are significantly more likely to be doing at least okay financially (87%) than those with a high school degree or less (64%). However, the Fed survey finds that minorities are much more likely to attend for-profit schools, and struggle with student loans after graduation and question their educational choices.


Company: cnbc, Activity: cnbc, Date: 2019-05-23  Authors: eric rosenbaum, eric roberge, founder, financial planner at beyond your hammock
Keywords: news, cnbc, companies, millions, economic, card, expense, fed, pay, americans, adults, unexpected, hardship, 400, unbanked, financial, credit, away


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This 25-year-old hairstylist earns $280,000 a year near Detroit—here’s how he spends his money

As a hairstylist and salon owner in the Detroit area, the 25-year-old earns $280,000 a year. “It’s rewarding to be able to put on a pair of shoes that I worked really, really hard for.” It’s rewarding to be able to put on a pair of shoes that I worked really, really hard for. In fact, carrying a balance could be costing Pardoe money. “He’s really capitalized on his industry, what he’s knowledgeable about and what he’s passionate about.


As a hairstylist and salon owner in the Detroit area, the 25-year-old earns $280,000 a year. “It’s rewarding to be able to put on a pair of shoes that I worked really, really hard for.” It’s rewarding to be able to put on a pair of shoes that I worked really, really hard for. In fact, carrying a balance could be costing Pardoe money. “He’s really capitalized on his industry, what he’s knowledgeable about and what he’s passionate about.
This 25-year-old hairstylist earns $280,000 a year near Detroit—here’s how he spends his money Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-23  Authors: emmie martin
Keywords: news, cnbc, companies, life, spends, 25yearold, westlin, pardoe, earns, month, work, hairstylist, money, 280000, hes, salon, really, credit, detroitheres, near


This 25-year-old hairstylist earns $280,000 a year near Detroit—here's how he spends his money

This story is part of CNBC Make It’s Millennial Money series, which profiles people across the U.S. and details how they earn, spend and give away their money. Alex Pardoe works hard for his money — and he isn’t afraid to splurge on Hermes Birkin bags, Louboutin loafers or a custom Mercedes. As a hairstylist and salon owner in the Detroit area, the 25-year-old earns $280,000 a year. While he makes sure to save for the future, he also believes in enjoying the present. “I’ve really always functioned under the mentality of you need to enjoy your life while you have it,” he says. “I knew I never really wanted to die with a bunch of money in the bank, so I think it’s important to live and be happy.”

What he earns

Pardoe moved to Detroit from Virginia after high school to attend cosmetology school and ended up starting his career there in 2012. He first worked at a major salon chain, where he earned around $30,000 a year. But Pardoe was determined to grow his client list as well as his earning potential. He started sharing his work on Instagram and used the social media platform as a way to garner interest in his services. He even offered free services to certain influencers in exchange for word-of-mouth publicity. The strategy worked. As Pardoe began to build a solid repertoire of loyal clients, his income grew. By the next year, his take-home pay had doubled, he says, and it has only continued to increase. In 2017, he decided to open his own salon, Aesthetic Hair Co., with two business partners in order to offer other stylists the same opportunity he had to expand his career. “I grew so quickly that I wanted to be able to provide a platform for other hairstylists to grow really quickly,” he says. He’s also developed and marketed his own line of hair products. “When I first started, the national average for what a hairdresser would take home was about $26,000 a year. We’ve strived so hard our whole career to not make that the standard and to give hairdressers a platform to make an amazing living for themselves,” he says.

Alex Pardoe with his business partners, Tess Garoon and Annie Starler. Source: Alex Pardoe

As a salon owner, Pardoe liaises with distributors, takes care of education for the nearly 30-person staff and is on the floor three to four days per week. “I’m there to help all of my stylists with any questions,” he says. “I’m always there to have their back when an issue arises in the salon.” On any given day, Pardoe sees between eight and 22 clients, with the help of two assistants. He charges around $275 for highlights and anywhere from $800 to $2,000 for extensions, depending on length and thickness. “Being a salon owner kind of changed my life in a sense that I don’t really work 9-to-5 anymore,” he says. “I feel like I work 24/7.”

Being a salon owner kind of changed my life in a sense that I don’t really work 9-to-5 anymore. I feel like I work 24/7. Alex Pardoe

Overall, Pardoe earns around $190,000 a year from client work, $50,000 in tips, $30,000 from teaching classes and holding private sessions with other stylists, and $10,000 from his product line, for a total of $280,000. In the city of Detroit, the median annual salary is just over $27,000 a year, according to the U.S. Census Bureau. Pardoe’s salon sits just outside of the Detroit city limits in Ferndale, an area in Oakland County that’s home to both blue collar workers and a growing artist community. He’s tapped into an affluent consumer base there. “I think the biggest misconception about living in metro Detroit is that because the city was bankrupt years ago that people here can’t be successful and people here can’t run businesses and people here don’t have money,” he says. “But Oakland County is actually one of the richest counties in the United States. ” Still, for Pardoe, work isn’t just about money: “I got into hair because I really loved the instant transformation that you could give people and the confidence boost that you can give people.”

What he spends

Here’s a breakdown of everything Pardoe spends in a typical month.

Click to enlarge

Cars: $4,180

Pardoe’s largest monthly expense is his two cars. Currently, he’s leasing a Mercedes Benz G-550 for $2,200 a month, which he plans to buy outright when the lease is up. He’s also financing a BMW i8, which runs him $1,300 a month. He spends $380 on insurance and about $300 on premium gas. Although Pardoe admits that having two cars “isn’t necessary and is definitely excessive,” they’re a worthwhile expense because they bring him joy. “Driving them makes me happy, so the more the merrier!” he says.

Food: $2,500

Pardoe never cooks. In fact, he says, he’s never even turned on the oven in his condo. Instead, he goes out or orders his meals in from delivery services such as DoorDash or UberEats, which he says is his biggest regular monthly splurge. He often brings in food for others, too. “I buy lunch for the salon all the time and l get things delivered for them all the time, so there’s not just me,” he says. “I’m buying food for everybody.”

Rent, utilities and Wi-Fi: $1,970

Pardoe shares a two-bedroom, two-bathroom condo, which costs $2,500 a month, with his boyfriend Josh. Pardoe’s share comes to $1,900, and he pays $70 to cover Wi-Fi for the place. Even living just north of Detroit, the couple can afford much more space than they would in a pricier area, such as San Francisco or New York. His rent includes two parking spaces and access to a gym.

Miscellaneous: $1,875

Entertainment is Pardoe’s largest miscellaneous expense, coming to around $1,200 per month. When he goes out with friends, he’s quick to cover the tab, he says. His share of the expenses for his rescue dog, Biscuit, is around $100 a month. That covers food, treats, toys and vet costs. “I haven’t gotten him into Gucci ready-to-wear,” he jokes, “so as soon as we get him into Gucci ready-to-wear, the sky’s the limit.”

Alex Pardoe with his rescue dog, Biscuit. Source: Alex Pardoe

He gives about $25 a month to the Humane Society and another $100 to Planned Parenthood. Pardoe spends around $5,000 on travel annually, which averages out to around $420 per month. He says it can be easy to get wrapped up in work, and so it’s worth it to him to spend money on vacations and seeing the world: “I think it’s really important to be as cultured as humanly possible and keep yourself grounded.” And although Pardoe says he drives almost everywhere, he pays for cabs occasionally during a night out. That runs him around $30 a month.

Savings: $1,800

Saving for the future is a key goal for Pardoe. In addition to the money he pays into his life insurance policy, he also puts $500 a month into his Roth IRA and $1,300 in a brokerage account. He also keeps a sizable amount of cash in his checking account. Currently, it holds around $77,000. Once he reaches $100,000 and qualifies for the next level of rewards at his bank, Pardoe says he’ll start diverting money away from that account into one that earns a higher interest rate. To make sure he’s on track to meet his retirement goals, Pardoe works with a professional financial advisor.

Clothes, shoes and accessories: $1,500

Pardoe loves to splurge on brand-name clothes, shoes and accessories and can spend anywhere from $300 to $3,000 a month. The designer section of his closet includes garments from Gucci, Balenciaga, Christian Louboutin and others. He also collects Hermes Birkin bags, which start at around $7,000 each, and has a case dedicated to displaying them. “With the amount that I work and how hard that I work on my feet all day, it’s rewarding to come home and have the things that I want to have,” he says. “It’s rewarding to be able to put on a pair of shoes that I worked really, really hard for.”

It’s rewarding to be able to put on a pair of shoes that I worked really, really hard for. Alex Pardoe

As a creative person, he has a lot of respect for designers, so if “a designer comes out with a new sweater and I really like this sweater, it’s worth it for me to buy it.” Pardoe is also a fan of tattoos and has spent around $10,000 total on his collection over the past six years. He sees tattoos as a fun way to express himself. “A lot of my tattoos are jokes,” he says, pointing out one of Britney Spears shaving her head and another of Kim Kardashian crying. “It literally says, ‘Kim, there’s people that are dying,’ just to remind me that I’m human, you know,” Pardoe says.

Insurance: $730

Pardoe puts $700 toward his joint disability and life insurance policy each month, as well as $30 towards renters insurance. He plans to stay on his parents’ health insurance plan until he turns 26, so he doesn’t pay anything toward health care yet. His life insurance policy is worth $3 million and he chooses to put a lot into the plan because the money earns a higher interest rate than a traditional savings account at a bank.

Phone: $230

Pardoe’s $230 monthly phone bill covers the hardware and service for two iPhones: one for work and one for personal use.

Credit card repayment: $100

Pardoe puts around $100 a month toward the $2,000 balance on his credit card. Although Pardoe has enough in his checking account to pay his card off entirely, he chooses to carry a balance on the assumption that it will help him build credit and raise his credit score.

Alex Pardoe with his boyfriend, Josh, in London. Source: Alex Pardoe

Pardoe doesn’t have any other debt, in part because his parents paid for his education: “I decided not to go to a four-year year school and I went to a trade school, so they paid a lot less for my school. I am very fortunate to not have student loans.”

Subscriptions: $50

In place of cable, Pardoe pays for a number of subscription streaming services: $7 for Hulu, $13 for Netflix, $15 for HBO Go and $15 for Amazon Prime video.

What the experts say

CNBC Make It asked Andrew Westlin, a certified financial planner at Betterment, to comment on what Pardoe is doing well and how he could improve. Here are his thoughts.

Andrew Westlin, a certified financial planner at Betterment. Source: Betterment

He should consider a high-yield savings account

Pardoe currently has around $77,000 in his checking account, which Westlin says is probably too much, since checking accounts typically only offer around 0.09% in interest. One way to earn a greater return while still keeping his funds accessible is to open a high-yield savings account, such as those offered by online banks such as Ally or Marcus by Goldman Sachs that earn 2% or more. “By moving over his current cash to a high-yield savings account that pays 2%, the money that he has will earn anywhere from $1,200 to $1,500 in the first year alone,” Westlin says. “That’s one of the easiest wins.” Pardoe can use this money as an emergency fund, which experts say should hold enough to cover between three to six months’ worth of living expenses. “He probably still wants to keep some money in his everyday checking account, just so he still has some more liquid funds,” Westlin says. “We usually say keep about one month of your expenses in your everyday checking account. Everything else can be moved over to a high-yield savings account.”

He can pay off his credit card balance

Another “quick win” for Pardoe, Westlin says, would be paying off his $2,000 in credit card debt. Right now, Pardoe is choosing to keep a balance because he thinks it helps his credit score, and he wants a good credit score in case he decides to buy a home. However, Westlin says, that’s a myth: Carrying a balance doesn’t help your credit score. In fact, carrying a balance could be costing Pardoe money. “Most credit cards, the interest rate is anywhere from 15% to 20%, so if he’s keeping a $2,000 balance, that’s about $300 to $400 of interest that he’s paying every year,” Westlin explains.

Alex Pardoe poses with two of his Birkin bags. CNBC Make It

Pardoe can build his credit by using his credit card regularly and then paying off the balance every month, Westlin says. He is smart to keep his usage below 30% of his credit limit, however, Westlin says: “Once you start getting your balance over 30% and your usage rate goes up, that will damage your credit score in the eyes of the lender because they’re only lending you so much, and if you’re maxing out your credit or using a really high percentage of what’s available to you, that doesn’t show that you’re the most credit-worthy individual.”

It’s great that he has numerous streams of income

“In today’s world, you can make money doing anything from anywhere,” Westlin says. “A very common catchphrase is that the most important investment you can make is in yourself. ” He applauds Pardoe for diversifying his sources of income: In addition to earning money from doing hair, Pardoe is also a salon owner and an educator, and he has his own product line.

At the end of the day, he’s doing something that he loves and making a lot of money doing it. Andrew Westlin certified financial planner at Betterment

“That’s the best thing he’s done,” Westlin says. “He’s really capitalized on his industry, what he’s knowledgeable about and what he’s passionate about. At the end of the day, he’s doing something that he loves and making a lot of money doing it. I think that that’s phenomenal.”

He should make sure he’s eligible to contribute to a Roth IRA

Although Pardoe is smart to make saving for retirement a priority, he should ensure that he’s using the most effective savings vehicle. Because of how much he earns, he might not qualify to contribute to a Roth IRA, which has a $135,000 limit for single individuals. If he’s not eligible to contribute to a Roth, he could face a penalty. To avoid that, “he can do what’s called a recharacterization,” Westlin says. “As long as that’s done before the end of the tax year, he can move that money over to a traditional IRA, and there’s no taxes or penalties.”

Alex Pardoe gives a client highlights at Aesthetic Hair Co. in Detroit. CNBC Make It

Additionally, it could be a good idea for Pardoe to outline what he wants retirement to look like. Does he want to live the same lifestyle? If so, he might need to be putting away more of his earnings each month. Currently, he’s saving roughly 7% to 8% of his take-home pay, Westlin calculates, but, to keep up with his current lifestyle in retirement, he’ll want to be saving at least 15% of his income. “It’s about setting clear goals and determining how much he needs to save to meet each of them,” Westlin says.

He’s smart to have disability and life insurance

Because Pardoe has an active job and is on his feet all day, it’s smart for him to have disability insurance, Westlin says. If he’s ever unable to work, he’ll still be covered. As for his life insurance policy, he might need to evaluate how he’s using it. Because he doesn’t have any dependents, it might not be necessary, Westlin says. If that’s the case, he might be able to divert those funds elsewhere.

However, having life insurance could be a wise move if he’s using it as part of a business succession plan. “With life insurance, you can structure something that’s called a buy-sell agreement with his partners,” Westlin says. If Pardoe were to pass away, the proceeds from his death benefits would go to his partners, who could use the money to buy Pardoe’s heirs out of his share in the business, he explains. Contributing so much to his policy each month might not be the best use of his funds, though, Westlin says. Overall, Pardoe has a strong handle on his finances, Westlin says. For now, “it’s more about maximizing that money and making sure that he’s saving enough and in the right places.” As long as Pardoe is putting enough away for the future, “how the rest is spent doesn’t really matter,” Westlin says. What’s your budget breakdown? Share your story with us at makeitcasting@nbcuni.com for a chance to be featured in a future installment. We are especially interested in hearing from people in San Francisco, Chicago and Washington, D.C. Like this story? Subscribe to CNBC Make It on YouTube! Don’t miss: The budget breakdown of a 28-year-old veteran who supports his family on $90,000 a year


Company: cnbc, Activity: cnbc, Date: 2019-05-23  Authors: emmie martin
Keywords: news, cnbc, companies, life, spends, 25yearold, westlin, pardoe, earns, month, work, hairstylist, money, 280000, hes, salon, really, credit, detroitheres, near


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China faces possible hit to credit rating if the trade war isn’t resolved

Escalations in its trade dispute with the U.S. not only could dent China’s economy but also impact its credit standing, according to ratings agencies. An accompanying release said the impact of more central bank intervention could impact “the future of [China’s] public debt ratio and China’s rating.” Reductions in credit ratings often translate to higher interest rates for a country’s bonds. The U.S. had a $419.2 billion trade deficit with China in 2018, on $539.5 billion in imports and just $12


Escalations in its trade dispute with the U.S. not only could dent China’s economy but also impact its credit standing, according to ratings agencies. An accompanying release said the impact of more central bank intervention could impact “the future of [China’s] public debt ratio and China’s rating.” Reductions in credit ratings often translate to higher interest rates for a country’s bonds. The U.S. had a $419.2 billion trade deficit with China in 2018, on $539.5 billion in imports and just $12
China faces possible hit to credit rating if the trade war isn’t resolved Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: jeff cox
Keywords: news, cnbc, companies, billion, isnt, chinas, tariff, faces, china, ratings, trade, resolved, chinese, hit, impact, possible, tariffs, credit, rating, war


China faces possible hit to credit rating if the trade war isn't resolved

“The tariff war is negative for China especially at a time when its policy makers are battling problems of rising debt and increasing leverage in its economy,” analysts at ratings agency DBRS said in a note. “The economic impact on China of rising tariffs would be broader than just via its trade with the U.S.”

China’s credit remains strong despite a weakening economy and a high-stakes tariff battle it is engaged in with the U.S. However, should the impasse linger on, the damages could become greater and start having some deeper impacts.

Escalations in its trade dispute with the U.S. not only could dent China’s economy but also impact its credit standing, according to ratings agencies.

An accompanying release said the impact of more central bank intervention could impact “the future of [China’s] public debt ratio and China’s rating.”

Reductions in credit ratings often translate to higher interest rates for a country’s bonds. China’s debt is currently equivalent to $5.3 trillion in U.S. dollars, or about 43% of its GDP.

DBRS, the fourth-largest ratings agency in the world, has China rated “A,” which is its third-highest classification. However, it recently changed the outlook to negative as the tariff issues pile up.

“China remains a middle-income country that generally lacks the historic openness, institutional credibility and transparency of the major global financial centers,” the firm said in an earlier note.

Negotiators on both sides say they remain optimistic a deal can be reached, though markets have been focused on the more immediate impacts of existing tariffs and threats of ones to come.

The U.S. this month hiked its tariffs to 25% from 10% on $200 billion of Chinese goods. China retaliated by raising its tariff rate from 10% to 20%-25% on $60 billion of U.S. imports. The U.S. is seeking a number of concessions, particularly focused on opening Chinese markets and halting the theft of intellectual property and forced technology transfers.

Should the U.S. not get what it is seeking, President Donald Trump has threatened to slap tariffs on another $300 billion in Chinese imports. The U.S. had a $419.2 billion trade deficit with China in 2018, on $539.5 billion in imports and just $120.3 billion in exports. The deficit through the first three months of 2019 was just shy of $80 billion.

Other ratings agencies have noted the danger to further intensifying relations.

“An abrupt breakdown in trade talks, if that were to occur, will inject considerable policy uncertainty, increase risk aversion and lead to an abrupt repricing of risk assets globally,” Moody’s analyst Madhavi Bokil said in a note. “In China, increased US tariffs will have a significant negative effect on exports amid an already slowing economy.”

Fitch said China could offset the additional tariffs with more monetary easing, but noted it expects GDP to fall to 6.1% this year from 6.6% in 2018.

Should the U.S. extend its sanctions, that could knock off another half-point from the growth figure, the agency said.

“But if trade tensions eventually lead to blanket U.S. tariffs on all Chinese goods, the potential rating impact could be greater, as it may tempt the authorities to abandon their restrained approach to policy easing, and adopt credit stimulus measures that exacerbate the country’s already significant financial vulnerabilities,” said Brian Coulton, Fitch’s economist.


Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: jeff cox
Keywords: news, cnbc, companies, billion, isnt, chinas, tariff, faces, china, ratings, trade, resolved, chinese, hit, impact, possible, tariffs, credit, rating, war


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Credit Suisse has a portfolio of takeover plays that’s beat the market the last 5 years

Windows 10 upgrade cycle driving growth — and it’s only halfway…Microsoft will stop supporting Windows 7 and Office 2010 in 2020. As customers move to newer products, Microsoft will be able to sell them additional tools, an executive said…Enterpriseread more


Windows 10 upgrade cycle driving growth — and it’s only halfway…Microsoft will stop supporting Windows 7 and Office 2010 in 2020. As customers move to newer products, Microsoft will be able to sell them additional tools, an executive said…Enterpriseread more
Credit Suisse has a portfolio of takeover plays that’s beat the market the last 5 years Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, portfolio, stop, office, takeover, thats, saidenterpriseread, products, market, windows, plays, upgrade, credit, supporting, sell, newer, beat, suisse, tools


Credit Suisse has a portfolio of takeover plays that's beat the market the last 5 years

Windows 10 upgrade cycle driving growth — and it’s only halfway…

Microsoft will stop supporting Windows 7 and Office 2010 in 2020. As customers move to newer products, Microsoft will be able to sell them additional tools, an executive said…

Enterprise

read more


Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, portfolio, stop, office, takeover, thats, saidenterpriseread, products, market, windows, plays, upgrade, credit, supporting, sell, newer, beat, suisse, tools


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Happily indebted after: Millennials go broke over the bachelor party

Brides and grooms aren’t the only ones racking up wedding debt. Guests are spending an average of $537 to attend a bachelor or bachelorette party, TheKnot.com found. “There’s the engagement party, the bachelorette party, then the wedding,” said Dana Marineau, vice president of brand, creative and communications at Credit Karma. Indeed, nearly 1 in 4 people polled by Credit Karma said they went into debt to attend a bachelor or bachelorette party. One in 3 millennials in the survey said they went


Brides and grooms aren’t the only ones racking up wedding debt. Guests are spending an average of $537 to attend a bachelor or bachelorette party, TheKnot.com found. “There’s the engagement party, the bachelorette party, then the wedding,” said Dana Marineau, vice president of brand, creative and communications at Credit Karma. Indeed, nearly 1 in 4 people polled by Credit Karma said they went into debt to attend a bachelor or bachelorette party. One in 3 millennials in the survey said they went
Happily indebted after: Millennials go broke over the bachelor party Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-01  Authors: darla mercado
Keywords: news, cnbc, companies, indebted, happily, average, bachelorette, millennials, broke, debt, party, attend, wedding, credit, bachelor, vice, went


Happily indebted after: Millennials go broke over the bachelor party

Brides and grooms aren’t the only ones racking up wedding debt. Their guests are turning out their pockets for bachelorette parties and more.

Couples who got hitched in 2018 coughed up an average of $33,931 to make their special day a memorable one, according to TheKnot.com.

Though newlyweds feel the pinch of planning their nuptials, friends and families are also being squeezed amid the march to the big day.

Guests are spending an average of $537 to attend a bachelor or bachelorette party, TheKnot.com found.

“There’s the engagement party, the bachelorette party, then the wedding,” said Dana Marineau, vice president of brand, creative and communications at Credit Karma.

Indeed, nearly 1 in 4 people polled by Credit Karma said they went into debt to attend a bachelor or bachelorette party. The site, which offers credit scores, did an online poll of 1,039 adults in April.

One in 3 millennials in the survey said they went into debt attending these pre-wedding festivities.


Company: cnbc, Activity: cnbc, Date: 2019-05-01  Authors: darla mercado
Keywords: news, cnbc, companies, indebted, happily, average, bachelorette, millennials, broke, debt, party, attend, wedding, credit, bachelor, vice, went


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Five ways this economic expansion could come to an abrupt end

Deutsche Bank chief economist Torsten Slok identified five different ways the decade long cycle could end. Even though job growth is strong, a slowdown in consumer spending could cause economic growth to “fizzle out.” The U.S. economy would be at risk if the trade war intensifies, with Europe in particular. President Donald Trump has criticized the Fed and Fed Chairman Jerome Powell for rate hikes and is now seeking rate cuts. Slok warns that any increase in U.S. long term interest rates from lo


Deutsche Bank chief economist Torsten Slok identified five different ways the decade long cycle could end. Even though job growth is strong, a slowdown in consumer spending could cause economic growth to “fizzle out.” The U.S. economy would be at risk if the trade war intensifies, with Europe in particular. President Donald Trump has criticized the Fed and Fed Chairman Jerome Powell for rate hikes and is now seeking rate cuts. Slok warns that any increase in U.S. long term interest rates from lo
Five ways this economic expansion could come to an abrupt end Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-29  Authors: patti domm
Keywords: news, cnbc, companies, credit, trade, risk, interest, expansion, ways, loans, come, growth, economic, consumer, serious, abrupt, fed, economy, end


Five ways this economic expansion could come to an abrupt end

The U.S. economy is buzzing along, but at any time, there could be an event that would signal an end of the expansion, including a blow up in credit markets, a consumer slowdown, or politicization of the Federal Reserve.

Deutsche Bank chief economist Torsten Slok identified five different ways the decade long cycle could end.

1. Credit market bombshell. First a blow-up in credit markets would be a quick catalyst, after years of easy money from the world’s central banks created a global hunt for yield. “Easy money pushed a lot of investors into financial assets and any sudden re-pricing of risks for example in loans, [high-yield], or [investment grade] could have serious negative consequences for the economy,” he wrote.

2. Consumer fatigue. The U.S. consumer is a major part of the U.S. economy, and delinquencies on consumer loans have moved higher for the past two years, as interest rates on credit cards and auto loans have widened. Even though job growth is strong, a slowdown in consumer spending could cause economic growth to “fizzle out.”

3. Trade wars. The U.S. economy would be at risk if the trade war intensifies, with Europe in particular. With growth already slowed, downside risk would be serious for both Europe and the U.S. if there was an escalated or prolonged trade war.

4. Fed damaged. President Donald Trump has criticized the Fed and Fed Chairman Jerome Powell for rate hikes and is now seeking rate cuts. His recent Fed board choices, like Stephen Moore and Herman Cain, have also been seen as political. Cain has removed himself from the process and Moore is still in the running. If investors suddenly see the Fed as politically driven, or if it becomes motivated by the election cycle, “it could trigger a decline in the dollar and introduce serious risk premia in US long-term interest rates.”

5. China current account deficit. Once China has a current account deficit and has to rely on financing from abroad, there would be downside risks to its currency and it would have to sell its FX reserves, meaning U.S. Treasurys. Slok warns that any increase in U.S. long term interest rates from lower demand for Treasurys could be a “potential game stopper for the current expansion.”

Source: Deutsche Bank


Company: cnbc, Activity: cnbc, Date: 2019-04-29  Authors: patti domm
Keywords: news, cnbc, companies, credit, trade, risk, interest, expansion, ways, loans, come, growth, economic, consumer, serious, abrupt, fed, economy, end


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Warren Buffett: This is the best way to put cash in the pockets of people who need it

But Buffett has an opinion on how to put more cash in the hands of Americans who need it the most: He recommends expanding the Earned Income Tax Credit. “The Earned Income Tax Credit is the best way to put money in the pockets of people that don’t fit well under the market system, but that are perfectly decent citizens,” Buffett told Yahoo Finance’s editor-in-chief, Andy Serwer, in an interview published Monday. The Earned Income Tax Credit (EITC) is designed to “benefit for working people with


But Buffett has an opinion on how to put more cash in the hands of Americans who need it the most: He recommends expanding the Earned Income Tax Credit. “The Earned Income Tax Credit is the best way to put money in the pockets of people that don’t fit well under the market system, but that are perfectly decent citizens,” Buffett told Yahoo Finance’s editor-in-chief, Andy Serwer, in an interview published Monday. The Earned Income Tax Credit (EITC) is designed to “benefit for working people with
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Company: cnbc, Activity: cnbc, Date: 2019-04-25  Authors: catherine clifford, david a grogan
Keywords: news, cnbc, companies, person, income, eitc, children, buffett, earned, need, tax, according, way, warren, working, pockets, best, credit, cash


Warren Buffett: This is the best way to put cash in the pockets of people who need it

Berkshire Hathaway chairman Warren Buffett has plenty of money. The so-called “Oracle of Omaha” — a nod to both his hometown and his prowess as an investor — is worth $86 billion on Thursday, according to Forbes.

And that’s a whole lot more than most people have. In fact, if you add up the fortunes of Amazon’sJeff Bezos, Microsoft’s Bill Gates and Buffett, those three billionaires have more wealth than the entire poorest half of the population in the United States, according to an October report from progressive Washington, D.C.-based think tank Institute for Policy Studies.

But Buffett has an opinion on how to put more cash in the hands of Americans who need it the most: He recommends expanding the Earned Income Tax Credit.

“The Earned Income Tax Credit is the best way to put money in the pockets of people that don’t fit well under the market system, but that are perfectly decent citizens,” Buffett told Yahoo Finance’s editor-in-chief, Andy Serwer, in an interview published Monday.

The Earned Income Tax Credit (EITC) is designed to “benefit for working people with low to moderate income,” according to the U.S. Internal Revenue Service. “EITC reduces the amount of tax you owe and may give you a refund.”

Various criteria have to be met for someone to benefit from the EITC, including earning income from working or owning or running a business or a farm and having no more than $3,500 in investment income for the tax year. The full details on the current requirements for the EITC vary depending on whether a person is single or married and how many children are claimed, according to the U.S. Internal Revenue Service.

For 2019, the maximum amount of credit a person can receive via the EITC ranges from $529 (with no qualifying children) and $6,557 (with three or more qualifying children), according to the IRS. In a 2015 Wall Street Journal op-ed Buffett suggested increasing dollar amounts for the credit, especially for those who earn the least. He also suggested switching from an annual payment to monthly installments, among other changes.

If you are “just a good citizen, raise nice kids, help in the neighborhood and everything else, but you don’t have market-related skills,” you should still be able to afford to live, Buffett tells Serwer, pointing out that the United States government has access to enough resources to provide for everyone. Case in point, says Buffett: the per person gross domestic product in the U.S. is close to $60,000.


Company: cnbc, Activity: cnbc, Date: 2019-04-25  Authors: catherine clifford, david a grogan
Keywords: news, cnbc, companies, person, income, eitc, children, buffett, earned, need, tax, according, way, warren, working, pockets, best, credit, cash


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Only 11% of college students correctly answered these 4 money questions—can you?

The first question was the one most students and college grads got right. Suppose you had $100 in a savings account and the interest rate was 2% per year. After 5 years, how much do you think you would have in the account if you left the money to grow? Assuming the following individuals have the same credit card with the same interest rate and balance, which will pay the most in interest on their credit card purchases over time? Imagine that there are two options when it comes to paying back a l


The first question was the one most students and college grads got right. Suppose you had $100 in a savings account and the interest rate was 2% per year. After 5 years, how much do you think you would have in the account if you left the money to grow? Assuming the following individuals have the same credit card with the same interest rate and balance, which will pay the most in interest on their credit card purchases over time? Imagine that there are two options when it comes to paying back a l
Only 11% of college students correctly answered these 4 money questions—can you? Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-24  Authors: megan leonhardt, eric liebowitz, netflix, universal television, nbcu photo bank
Keywords: news, cnbc, companies, answered, pays, loan, students, credit, card, minimum, college, balance, money, 11, pay, rate, option, correctly, interest, questionscan


Only 11% of college students correctly answered these 4 money questions—can you?

Click to enlarge

Here are all four questions, if you’d like to put your own knowledge to the test. The first question was the one most students and college grads got right.

1. Suppose you had $100 in a savings account and the interest rate was 2% per year. After 5 years, how much do you think you would have in the account if you left the money to grow?

a. More than $102

b. Exactly $102

c. Less than $102

d. Not sure

2. Assuming the following individuals have the same credit card with the same interest rate and balance, which will pay the most in interest on their credit card purchases over time?

a. Joe, who makes the minimum payment on his credit card bill every month

b. Jane, who pays the balance on her credit card in full every month

c. Joyce, who sometimes pays the minimum, sometimes pays less than the minimum, and missed one payment on her credit card bill

d. All of them will pay the same amount in interest over time

e. Not sure

3. Imagine that there are two options when it comes to paying back a loan and both come with the same interest rate. Provided you have the needed funds, which option would you select to minimize your total costs over the life of the loan (i.e., all of your payments combined until the loan is completely paid off)?

a. Option 1 allows you to take 10 years to pay back the loan

b. Option 2 allows you to take 20 years to pay back the loan

c. Both options have the same out-of-pocket cost over the life of the loan

d. Not sure

4. Which of the following best defines the term “interest capitalization”?

a. The type of interest charged on high-balance loans

b. The addition of unpaid interest to the principal balance of a loan

c. Interest that is charged when you postpone payments on your loan


Company: cnbc, Activity: cnbc, Date: 2019-04-24  Authors: megan leonhardt, eric liebowitz, netflix, universal television, nbcu photo bank
Keywords: news, cnbc, companies, answered, pays, loan, students, credit, card, minimum, college, balance, money, 11, pay, rate, option, correctly, interest, questionscan


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I ditched cash and lived off credit cards for a week—and cut my spending almost in half

Inspired by financial literacy month and CNBC’s “SavingUp” challenge, I wanted to see if I could cut back on my spending by forgoing cash and using only my credit card for a week. Although cash diets work for some people, I was curious whether the opposite could work too. Before starting my cash-free week, I looked back at how much I typically spend over the course of seven days and cut it in half. My best estimate is that I spend around $200 a week on everything from groceries to Target runs to


Inspired by financial literacy month and CNBC’s “SavingUp” challenge, I wanted to see if I could cut back on my spending by forgoing cash and using only my credit card for a week. Although cash diets work for some people, I was curious whether the opposite could work too. Before starting my cash-free week, I looked back at how much I typically spend over the course of seven days and cut it in half. My best estimate is that I spend around $200 a week on everything from groceries to Target runs to
I ditched cash and lived off credit cards for a week—and cut my spending almost in half Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-24  Authors: emmie martin, cnbc make it
Keywords: news, cnbc, companies, half, seven, lived, cut, spending, week, card, days, using, ditched, spend, cash, cards, work, credit, weekand


I ditched cash and lived off credit cards for a week—and cut my spending almost in half

Inspired by financial literacy month and CNBC’s “SavingUp” challenge, I wanted to see if I could cut back on my spending by forgoing cash and using only my credit card for a week. Although cash diets work for some people, I was curious whether the opposite could work too. And the accountability of seeing all my purchases on my card statement has always been more motivating to me.

Before starting my cash-free week, I looked back at how much I typically spend over the course of seven days and cut it in half. My best estimate is that I spend around $200 a week on everything from groceries to Target runs to drinks with friends.

For my week-long experiment, I gave myself the goal of spending no more than $100 over seven days. I came pretty close, putting just $127 worth of charges on my card by the end. That netted me over $70 in savings.

Here’s what it was like using only plastic for a week.


Company: cnbc, Activity: cnbc, Date: 2019-04-24  Authors: emmie martin, cnbc make it
Keywords: news, cnbc, companies, half, seven, lived, cut, spending, week, card, days, using, ditched, spend, cash, cards, work, credit, weekand


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It’s not ‘unreasonable’ for businesses to create and use their own cryptocurrencies, expert says

The possibility that multinational firms may create and transact in their own cryptocurrencies is not “unreasonable” in the medium term, according to one blockchain expert. “Within three hours, we could have it up and running, and when we transact with people, we could request that we do it using that particular coin.” The question that remains is: “Will people trust that coin?” “They will trust it if they trust your brand and if they trust your product,” Brown told CNBC’s Martin Soong on Tuesda


The possibility that multinational firms may create and transact in their own cryptocurrencies is not “unreasonable” in the medium term, according to one blockchain expert. “Within three hours, we could have it up and running, and when we transact with people, we could request that we do it using that particular coin.” The question that remains is: “Will people trust that coin?” “They will trust it if they trust your brand and if they trust your product,” Brown told CNBC’s Martin Soong on Tuesda
It’s not ‘unreasonable’ for businesses to create and use their own cryptocurrencies, expert says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-23  Authors: eustance huang
Keywords: news, cnbc, companies, request, businesses, brown, know, multinational, transact, create, expert, prepaid, unreasonable, firms, cryptocurrencies, product, credit, trust


It's not 'unreasonable' for businesses to create and use their own cryptocurrencies, expert says

The possibility that multinational firms may create and transact in their own cryptocurrencies is not “unreasonable” in the medium term, according to one blockchain expert.

“What we’re seeing really is the democratization of money so you know, if you and I wanted to, we could create a CNBC coin,” said Gavin Brown, co-founder and director at venture capital firm, Blockchain Capital, at the Credit Suisse Global Supertrends Conference in Singapore. “Within three hours, we could have it up and running, and when we transact with people, we could request that we do it using that particular coin.”

The question that remains is: “Will people trust that coin?”

“They will trust it if they trust your brand and if they trust your product,” Brown told CNBC’s Martin Soong on Tuesday.

To illustrate his point, Brown used the example of Starbucks prepaid cards.

“They’ve got, you know, over a billion dollars of assets worth on their balance sheet of people who prepaid coffee on their charge cards in advance and that’s because they trust the brand, they like the product and they’re confident it will be there,” said Brown, who is also a lecturer in Financial Economics at the Manchester Metropolitan University.

In an era where companies such as McDonald’s have a higher credit rating than countries such as Ireland, he said, the notion that multinational firms may issue their own currencies and request that their customers purchase with them is “not that outlandish.”


Company: cnbc, Activity: cnbc, Date: 2019-04-23  Authors: eustance huang
Keywords: news, cnbc, companies, request, businesses, brown, know, multinational, transact, create, expert, prepaid, unreasonable, firms, cryptocurrencies, product, credit, trust


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