Worried about a recession? Don’t panic, say financial advisors, but do be prepared

kate_sept2004 | E+ | Getty ImagesIf you are worried about a possible recession on the horizon, there are some financial moves you can make to help protect yourself. “We will eventually go into recession,” said certified financial planner Diahann Lassus, co-founder, president and chief investment officer of wealth-management firm Lassus Wherley, a subsidiary of Peapack-Gladstone Bank. Don’t panic, don’t make hasty financial and investment decisions. With that in mind, here are some things you can


kate_sept2004 | E+ | Getty ImagesIf you are worried about a possible recession on the horizon, there are some financial moves you can make to help protect yourself. “We will eventually go into recession,” said certified financial planner Diahann Lassus, co-founder, president and chief investment officer of wealth-management firm Lassus Wherley, a subsidiary of Peapack-Gladstone Bank. Don’t panic, don’t make hasty financial and investment decisions. With that in mind, here are some things you can
Worried about a recession? Don’t panic, say financial advisors, but do be prepared Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: michelle fox
Keywords: news, cnbc, companies, panic, dont, say, things, recession, lassus, boneparth, savings, investment, financial, sure, prepared, good, worried, advisors


Worried about a recession? Don't panic, say financial advisors, but do be prepared

kate_sept2004 | E+ | Getty Images

If you are worried about a possible recession on the horizon, there are some financial moves you can make to help protect yourself. Those concerns flared up on Wednesday after a warning signal came from the bond market. At one point during the trading session, the benchmark 10-year Treasury bond briefly broke below the 2-year rate. That’s called an inverted yield curve, and it is a phenomenon that often has been a reliable, yet early, indicator of economic recessions. Stocks plunged on the news, with the Dow Jones Industrial Average logging its worst performance of 2019 on Wednesday. On Thursday, equities seesawed, thanks, in part, to some positive economic data that indicate a relatively strong U.S. economy. “We will eventually go into recession,” said certified financial planner Diahann Lassus, co-founder, president and chief investment officer of wealth-management firm Lassus Wherley, a subsidiary of Peapack-Gladstone Bank. “The business cycle is the business cycle. “The real question is when and for how long?” she added.

Jim Cramer appeared on the TODAY show to discuss recession fears in the wake of the Dow plummeting on August 14, 2019.

While the yield curve may be one early sign, another thing investors should watch is the overall economy, including retail sales and home buying, which provides insight into how the consumer is faring, said Lassus, a member of the CNBC Digital Financial Advisor Council. On Thursday, the Commerce Department said retail sales rose for July, beating expectations.

Don’t panic, don’t make hasty financial and investment decisions. Mitch Goldberg ClientFirst Strategy

Mitch Goldberg, president of ClientFirst Strategy in Melville, New York, also looks at things like the price of copper, sovereign bond interest rates and things that are “breaking” — such as Argentina’s economy and auto sales. “Strong global stock markets and low interest rates cover up a lot of cracks,” he said. “You are starting to see cracks develop.” Therefore, you should be prepared for any market downturn. “Many times, hindsight is 20/20,” said certified financial planner Douglas Boneparth, president of Bone Fide Wealth, a New York firm that focuses on millennials and young professionals. “Most people don’t know we’re in a recession until it’s too late.” With that in mind, here are some things you can do to be prepared in the event a recession is on the horizon.

Focus, don’t panic

“Now is a good time for investors to not only look at their to-do list but to make sure that they have a to-don’t list,” said Goldberg. “The things on the to-don’t list would be don’t panic, don’t make hasty financial and investment decisions.” What you should do is make sure that you have the risk tolerance and time horizon to tough out the volatility, he said.

Take stock of your personal life

It’s also a smart idea to take the temperature of your personal life, said Boneparth, a member of the CNBC Digital Financial Advisor Council. “How do you feel about your job? Do you feel safe?” he said. “What is the risk in your life right now? Did you just have a child? … Are you in good health?” More from Invest in You:

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Four essential documents that could save your financial life

Here are the answers to your top investment worries If you don’t feel your job is secure, then make sure your resume is up to date, added Lassus. “If you’re great and your job is in good shape that is fabulous but it still pays to think about those things and plan ahead,” she said.

Make a plan

“This is your call to action to put a financial plan together,” said Boneparth. “Look at your entire financial situation in the context of your goals and be able to see how you are tracking those goals, how you are doing in achieving those goals and learn what it takes to get there,” he added. However, try not to worry so much — especially if you are not near retirement age. “For younger investors with time on their side, keep in mind that you have a long-term investment horizon — which means recessions, bear markets and corrections should be factored into your investment strategy,” Boneparth said.

Bulk up on cash

Jamie Grill | Getty Images

Check your cash reserves — do you have enough to weather a downturn? “You want to make sure you have the cash you need so you don’t have to sell things at the worst possible time,” like after your stocks, mutual funds or 401(k) have already lost a lot of value, said Lassus. Therefore, try to increase the amount of money you are saving each month, if you can. While the rule of thumb is to have three to six months of cash savings set aside perhaps bump that up to six to 12 months if you can, Boneparth suggested. “Nobody wants to reduce their savings to retirement or their kids’ college savings, but sometimes redirecting those savings towards greater amounts of cash or liquidity can do wonders for helping you navigate volatile markets, as well as recessions,” he said.

Don’t run up your credit cards

Think about your spending versus your earnings, Lassus said. “Are there ways you can cut back just in case you need to?” she said. “Are there things that have gotten out of control because you have been doing well financially? “Now is a really good time to check all of that and make sure you are in the right place.”

It’s not the end of the world


Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: michelle fox
Keywords: news, cnbc, companies, panic, dont, say, things, recession, lassus, boneparth, savings, investment, financial, sure, prepared, good, worried, advisors


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GOP Sen. Rick Scott: Americans should get tax cuts in return for tariffs paid on Chinese goods

Republican Sen. Rick Scott told CNBC on Monday the U.S. government should return money collected from China tariffs to Americans as tax relief. President Donald Trump, earlier this month announced an impeding 10% tariff on the remaining $300 billion of Chinese goods that had not been previously taxed. Back In May, Trump hiked tariffs to 25% from 10% on $200 billion in Chinese goods. “We have to help American companies … and get more American jobs and stop helping China,” Scott said. “I’m not s


Republican Sen. Rick Scott told CNBC on Monday the U.S. government should return money collected from China tariffs to Americans as tax relief. President Donald Trump, earlier this month announced an impeding 10% tariff on the remaining $300 billion of Chinese goods that had not been previously taxed. Back In May, Trump hiked tariffs to 25% from 10% on $200 billion in Chinese goods. “We have to help American companies … and get more American jobs and stop helping China,” Scott said. “I’m not s
GOP Sen. Rick Scott: Americans should get tax cuts in return for tariffs paid on Chinese goods Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, tax, tariffs, american, sen, gop, scott, paid, trump, sure, tariff, stop, billion, return, trade, goods, rick, cuts


GOP Sen. Rick Scott: Americans should get tax cuts in return for tariffs paid on Chinese goods

Republican Sen. Rick Scott told CNBC on Monday the U.S. government should return money collected from China tariffs to Americans as tax relief.

“Anything we raise in tariffs, we should give back to the rank and public in tax reductions,” the Florida senator said in a “Squawk Box ” interview, acknowledging there’s been some “short-term pain.”

“We have to help American farmers open up more markets around the world,” said Scott, who did not elaborate on what such relief might look like.

Data from U.S. Customs and Border Protection, which collects taxes on imports, showed the U.S. had assessed $23.7 billion in tariffs from early 2018 through May 1. According to a Reuters report, total tariff revenue rose 73% in the first half of 2019 from a year earlier.

The trade dispute between the world’s two largest economies has been escalating in recent months, with investors fearing that it could slow global and U.S. economic growth. In fact, Goldman Sachs lowered its fourth-quarter U.S. growth forecast by 0.2% to 1.8%, with the cumulative drag on gross domestic product of 0.6%.

President Donald Trump, earlier this month announced an impeding 10% tariff on the remaining $300 billion of Chinese goods that had not been previously taxed. Back In May, Trump hiked tariffs to 25% from 10% on $200 billion in Chinese goods.

“We have to help American companies … and get more American jobs and stop helping China,” Scott said. “Stop acting like they are a partner,” adding he doesn’t see how a trade deal can be reached.

“I’m not sure what else we can do, other than stand up for American interests and American values,” he wondered. “I’m not sure what the president can do otherwise than the tariffs he is doing.”


Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, tax, tariffs, american, sen, gop, scott, paid, trump, sure, tariff, stop, billion, return, trade, goods, rick, cuts


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2020 candidate Kirsten Gillibrand, Rep. Bass say their infrastructure bill will boost local jobs, rebuild communities

Senator Kirsten Gillibrand speaks on the second night of the second 2020 Democratic U.S. presidential debate in Detroit, Michigan, July 31, 2019. America’s infrastructure is falling apart – but you don’t need a senator and a member of Congress to tell you that. Second, when we start rebuilding a community, we need to make sure those new jobs are actually going to the people living there. It turns out that even our infrastructure policies fall into that category. They blocked workers from new opp


Senator Kirsten Gillibrand speaks on the second night of the second 2020 Democratic U.S. presidential debate in Detroit, Michigan, July 31, 2019. America’s infrastructure is falling apart – but you don’t need a senator and a member of Congress to tell you that. Second, when we start rebuilding a community, we need to make sure those new jobs are actually going to the people living there. It turns out that even our infrastructure policies fall into that category. They blocked workers from new opp
2020 candidate Kirsten Gillibrand, Rep. Bass say their infrastructure bill will boost local jobs, rebuild communities Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-02  Authors: senator kirsten gillibrand, d-ny, us rep karen bass, d-ca
Keywords: news, cnbc, companies, infrastructure, say, gillibrand, need, communities, senator, candidate, kirsten, sure, highways, supposed, rep, workers, rebuild, local, jobs, second, policies


2020 candidate Kirsten Gillibrand, Rep. Bass say their infrastructure bill will boost local jobs, rebuild communities

Senator Kirsten Gillibrand speaks on the second night of the second 2020 Democratic U.S. presidential debate in Detroit, Michigan, July 31, 2019.

America’s infrastructure is falling apart – but you don’t need a senator and a member of Congress to tell you that.

If you’ve driven around or done some traveling lately, you probably had the exact same thought that we hear from our constituents all the time: our highways, bridges, airports, and public transportation are just not working right.

The same goes for our contaminated water supplies, our patchwork access to high-speed internet, and our crumbling schools.

We have to fix all of it – and here’s how:

First, we need to get building, and finally clean up the state of disrepair that much of our infrastructure is in now.

Second, when we start rebuilding a community, we need to make sure those new jobs are actually going to the people living there.

And third, when that new project goes up, we need to make sure it’s bringing the community together – not tearing it apart.

We’re in an extraordinary moment right now in which Americans are demanding that we correct the injustices of the last century – especially government policies that hurt poor communities and communities of color. It turns out that even our infrastructure policies fall into that category.

Here’s a glaring example: Highways. Highways are supposed to connect people. They’re supposed to make it easier for neighbors to come together, for kids to get to school, for workers to get to their jobs. But that’s not what happened when our country built them.

Instead, highways like I-81 in Syracuse, freeways like the 10 in Los Angeles, and so many more in between divide cities and neighborhoods in half. They closed local businesses. They blocked workers from new opportunities and better jobs, and the comfortable life that follows.

Because of those bad policies, in cities all over the country today, you see the same disturbing pattern: green spaces, grocery stores, and good jobs on one side of the overpass, and none of them on the other.


Company: cnbc, Activity: cnbc, Date: 2019-08-02  Authors: senator kirsten gillibrand, d-ny, us rep karen bass, d-ca
Keywords: news, cnbc, companies, infrastructure, say, gillibrand, need, communities, senator, candidate, kirsten, sure, highways, supposed, rep, workers, rebuild, local, jobs, second, policies


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Investors keep buying glamorous growth stocks in a bet they are a ‘sure thing’

The rush for “stability” also animates the crowding of investors into the elite class of big growth stocks believed to have the most durable profit streams. Not unrelated: the gaping premium in returns and valuation enjoyed by big growth stocks — loved for their enduring competitive advantages, high-margin businesses and lack of sensitivity to every economic blip and shudder. It’s common to observe that secular-growth stocks do better when broad economic growth is faltering. … And hedge funds


The rush for “stability” also animates the crowding of investors into the elite class of big growth stocks believed to have the most durable profit streams. Not unrelated: the gaping premium in returns and valuation enjoyed by big growth stocks — loved for their enduring competitive advantages, high-margin businesses and lack of sensitivity to every economic blip and shudder. It’s common to observe that secular-growth stocks do better when broad economic growth is faltering. … And hedge funds
Investors keep buying glamorous growth stocks in a bet they are a ‘sure thing’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-22  Authors: michael santoli
Keywords: news, cnbc, companies, thing, stocks, investors, growth, bet, sure, price, economic, week, glamorous, momentum, yields, high, buying, market


Investors keep buying glamorous growth stocks in a bet they are a 'sure thing'

Anything perceived as scarce and getting scarcer will see its price rise and eventually become overvalued.

Today — with global economic growth patchy and monetary policy shifting fast — investors see certainty and predictability in short supply and have been bidding up assets viewed as containing these rare attributes in high concentrations.

This helps explain the persistent compression in government-bond yields, attracting and reinforced by massive flows of cash into fixed-income funds. The rush for “stability” also animates the crowding of investors into the elite class of big growth stocks believed to have the most durable profit streams. And it offers a clue as to why assets built to be boring and slow-moving have become some of the highest-momentum winning trades in the markets.

It’s now worth asking whether this tilt toward assets deemed safe or predictable has overshot the mark. Because after all, the world is always uncertain and unpredictable, even when investors are highly confident in how things will turn out (see the January 2018 market peak). A consensus that things are unusually uncertain today can just as easily be a trap as a reliable guide.

It’s become common to point to the $13 trillion or so in negative-yielding bonds in Europe and Japan as both a reflection and a cause of the craze to lock in certain returns elsewhere. Certainly this pool of securities has anchored U.S. Treasury yields below where economic conditions would seem to dictate — and has made the Federal Reserve’s short-term rate target of 2.25-2.5% appear a wild outlier.

The refusal of the 10-year yield to lift much above 2% even as bullish bond sentiment has appeared extreme for weeks is a testament to this. This isn’t truly a bond bubble, despite this term being thrown around. A bubble requires an open-ended “greed” storyline promising massive upside, which the rationale for owning bonds at today’s prices lacks.

But it’s a collective determination that inflation will stay low for years to come, central banks are trapped and growth acceleration is unlikely.

Ned Davis Research looked at prior periods when bond bullishness hit an extreme and a buying frenzy sent yields rushing to an important low. This chart hints that the recent low in the 10-year yield and reversal higher could prove consequential.

In stocks, the “certainty trade” shows up in the high demand for promises of “low-volatility” equity exposure. The most popular ETF packed with the lowest-volatility blue chips in the S&P 500 this year (SPLV) has nicely tracked the similarly popular fund containing the S&P 500 stocks exhibiting the best price momentum (MTUM).

In fact, 30% of the stocks in the SPLV are also in MTUM.

Not unrelated: the gaping premium in returns and valuation enjoyed by big growth stocks — loved for their enduring competitive advantages, high-margin businesses and lack of sensitivity to every economic blip and shudder.

The diverging paths of the Vanguard Mega-Cap Growth and Vanguard Mega-Cap Value ETFs show this pretty clearly.

It’s common to observe that secular-growth stocks do better when broad economic growth is faltering. But there is also an element of simply joining the crowd in the most popular stocks.

Quantitative strategists at Bank of America Merrill Lynch last week said, “Active investors are now ‘buying what’s working’ more aggressively than usual: our 12-month price momentum factor is almost 25% more overvalued on forward earnings than usual. … And hedge funds remain net long high momentum stocks.”

And, on the flip side, “risk or uncertainty factors are close to record historic levels of cheapness. … Companies with a high level of ‘analyst disagreement,’ measured by dispersion among EPS estimates, are trading at a notable 51% discount” to their long-term average.

This chart from J.P. Morgan offers a visual of this behavioral pattern.

Even on a sector basis, this aggressive bid for the supposed “sure thing” and shunning of cyclical and policy risk is on display.

Jared Holz, health-care-stock trading strategist at Jefferies, noted this with a tinge of exasperation late last week: “All that matters is momentum. Like everything else, investors are willing to pay up for growth at any price in the healthcare space, … Investors would rather just hang out in stocks that go up every day though on pure numbers possess less upside than stocks that are (more) out of favor. And that has been a winning strategy so as much as we would like to think that there should be a bit more reversion in the market, it is not happening.”

This manifests in the wide canyon in returns to medical-device stocks — gauged by the IHI ETF here — and health-care providers, the IHF.

All these examples add up to a clear theme but not a clear course of action for investors. Cheap-looking, controversial and highly cyclical stocks have lagged for years and often struggle in the later phases of an economic cycle. Even when value strategies did great, such as in the early 2000s, it began in the crucible of a bear market rather than as a gentle handoff while the S&P was near a record high, as it is now.

There have been signs that the neglected parts of the market might have bottomed on a relative basis, with banks holding firm lately and transportation and auto names improving.

If indeed the Fed cuts rates next week as expected and it’s seen as a preemptive move to sustain the expansion, that could be an excuse for the areas lately seen as “too risky” to work again.

The clearest takeaway might be for investors to resist falling too hard for the promise of “certainty at any price.”


Company: cnbc, Activity: cnbc, Date: 2019-07-22  Authors: michael santoli
Keywords: news, cnbc, companies, thing, stocks, investors, growth, bet, sure, price, economic, week, glamorous, momentum, yields, high, buying, market


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Planning to travel while on Medicare? Make sure you have coverage at your destination

Assuming you’re on Medicare — most adults age 65 or older are — coverage away from home depends partly on where you travel to, along with whether you’re on basic Medicare or get your benefits through an Advantage Plan. And while travel medical insurance can be the solution to plugging holes in coverage, it’s worthwhile first determining whether you need it. Retirees who choose to stick with that coverage — instead of going with an Advantage Plan — typically pair their coverage with a stand-alone


Assuming you’re on Medicare — most adults age 65 or older are — coverage away from home depends partly on where you travel to, along with whether you’re on basic Medicare or get your benefits through an Advantage Plan. And while travel medical insurance can be the solution to plugging holes in coverage, it’s worthwhile first determining whether you need it. Retirees who choose to stick with that coverage — instead of going with an Advantage Plan — typically pair their coverage with a stand-alone
Planning to travel while on Medicare? Make sure you have coverage at your destination Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-12  Authors: sarah obrien
Keywords: news, cnbc, companies, plans, destination, travel, sure, care, coverage, advantage, medicare, surgery, youre, typically, plan, planning


Planning to travel while on Medicare? Make sure you have coverage at your destination

For many older Americans, retirement means freedom to explore beyond your backyard. Before you take off, however, check whether your health insurance travel with you. Assuming you’re on Medicare — most adults age 65 or older are — coverage away from home depends partly on where you travel to, along with whether you’re on basic Medicare or get your benefits through an Advantage Plan. It also can depend on whether the care you get is routine or due to an emergency. And while travel medical insurance can be the solution to plugging holes in coverage, it’s worthwhile first determining whether you need it. Original Medicare consists of Part A (hospital coverage) and Part B (outpatient care). Retirees who choose to stick with that coverage — instead of going with an Advantage Plan — typically pair their coverage with a stand-alone prescription-drug plan (Part D).

Julia Davila-Lampe | Moment Open | Getty Images

If this is your situation, coverage while traveling in the U.S. and its territories is fairly straightforward: You can go to any doctor or hospital that accepts Medicare (most do), whether for routine care or an emergency. It’s when you venture beyond U.S. borders that things get trickier. Generally speaking, Medicare does not provide any coverage when you’re not in the U.S. There are a few exceptions, such as when you’re on a ship within the territorial waters adjoining the country — within six hours of a U.S. port — or you’re traveling from state to state but the closest hospital to treat you is in a foreign country (i.e., you’re in Canada while heading to Alaska from the 48 contiguous states). About a third of retirees on original Medicare also purchase supplemental coverage through a Medigap policy (you cannot pair Medigap with an Advantage Plan). Those policies — which are standardized from state to state but vary in price — offer coverage for the cost-sharing parts of Medicare, such as copays and co-insurance.

Some Medigap policies — Plans C, D, F, G, M and N — offer coverage for travel. You pay a $250 annual deductible and then 20% of costs up to a lifetime maximum of $50,000. But, that amount may not go very far, depending on the type of medical services you need. “I tell our clients that a supplement is not designed for you to get a $50,000 surgery in France. It’s designed to get you healthy enough to get you back on U.S. soil to have the surgery,” said Roger Luchene, a Medicare agent with Hammer Financial Group in Schererville, Indiana. Also be aware that there is no overseas coverage through a Part D prescription drug plan. And, Medigap policies do not cover any costs related to Part D, whether you’re in the U.S. or elsewhere.

I tell our clients that a supplement is not designed for you to get a $50,000 surgery in France. It’s designed to get you healthy enough to get you back on U.S. soil to have the surgery. Roger Luchene Medicare agent with Hammer Financial Group

For retirees who get their Medicare benefits — Parts A, B and typically D — through an Advantage Plan, it’s important to check your coverage even if you’re not leaving U.S. soil. While these plans are required to cover your emergency care anywhere in the U.S., you may be on the hook for routine care outside of their service area. Or, other plans may let you visit out-of-network providers, but require you to pay more. “Check to see if your plan has some sort of U.S. coverage outside of your area,” said Elizabeth Gavino, founder of Lewin & Gavino in New York and an independent broker and general agent for Medicare plans. “The big carriers generally do, and depending on where you’re traveling, you could find in-network providers there.” More from Personal Finance:

Here are the 5 best and 5 worst states for retirement

One reason Americans abroad want to give up citizenship

Retirees lose $3.4 trillion claiming Social Security too early Some Advantage Plans might also offer coverage for emergencies overseas, so it’s important to know whether your plan does and to what extent. Whether you have an Advantage Plan or original Medicare, travel medical insurance might be appropriate if you think your existing coverage is insufficient. “That type of insurance is not too expensive — maybe $90 for two weeks — and you can get a pretty substantial policy,” Gavino said. Such options are priced based on your age, the length of the coverage and the amount of it. On top of providing coverage for necessary health services, a policy typically includes extras such as non-medical required evacuation, lost luggage and even dental care required due to an injury. The plans typically come with a deductible — say, $250 or more — and coverage could range from about $50,000 in maximum benefits to upwards of $1 million or more. However, if you’re age 70 or older, you might face a lower lifetime maximum.

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Company: cnbc, Activity: cnbc, Date: 2019-07-12  Authors: sarah obrien
Keywords: news, cnbc, companies, plans, destination, travel, sure, care, coverage, advantage, medicare, surgery, youre, typically, plan, planning


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Here’s where you can retire nicely on just $30,000 a year … outside the US

If you’ve been racking your brain about where to retire on a budget, it might be time to think outside the U.S.A new report by International Living, which publishes information about living abroad, lists destinations where you can coast on less than $30,000 a year. To be sure, retiring in a new country will require studying up on the tax implications along with pulling off some other logistical maneuvering.


If you’ve been racking your brain about where to retire on a budget, it might be time to think outside the U.S.A new report by International Living, which publishes information about living abroad, lists destinations where you can coast on less than $30,000 a year. To be sure, retiring in a new country will require studying up on the tax implications along with pulling off some other logistical maneuvering.
Here’s where you can retire nicely on just $30,000 a year … outside the US Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: annie nova
Keywords: news, cnbc, companies, studying, nicely, retire, living, tax, heres, 30000, sure, think, usa, retiring, youve, yearto, outside


Here's where you can retire nicely on just $30,000 a year ... outside the US

If you’ve been racking your brain about where to retire on a budget, it might be time to think outside the U.S.

A new report by International Living, which publishes information about living abroad, lists destinations where you can coast on less than $30,000 a year.

To be sure, retiring in a new country will require studying up on the tax implications along with pulling off some other logistical maneuvering.


Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: annie nova
Keywords: news, cnbc, companies, studying, nicely, retire, living, tax, heres, 30000, sure, think, usa, retiring, youve, yearto, outside


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A key money lesson Alex Rodriguez taught his kids has ‘doubled their money, for sure’

Rodriguez, now 43, wants to make sure his two daughters, ages 11 and 14, have the right tools to make smart money decisions, so he turns car rides into money and business classes. One lesson in particular appears to be paying off: start investing young. After giving his kids money to invest in stock portfolios five years ago, “they have both doubled their money, for sure,” he told Sports Illustrated’s Ben Reiter for his cover story on the reinvention of A-Rod. That’s why Rodriguez also advises y


Rodriguez, now 43, wants to make sure his two daughters, ages 11 and 14, have the right tools to make smart money decisions, so he turns car rides into money and business classes. One lesson in particular appears to be paying off: start investing young. After giving his kids money to invest in stock portfolios five years ago, “they have both doubled their money, for sure,” he told Sports Illustrated’s Ben Reiter for his cover story on the reinvention of A-Rod. That’s why Rodriguez also advises y
A key money lesson Alex Rodriguez taught his kids has ‘doubled their money, for sure’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-05  Authors: kathleen elkins
Keywords: news, cnbc, companies, lesson, doubled, baseball, smart, money, sure, kids, rodriguez, alex, told, youre, right, start, taught, key, young


A key money lesson Alex Rodriguez taught his kids has 'doubled their money, for sure'

Former baseball star Alex Rodriguez had to learn how to manage a lot of money from a young age: He went straight from high school to the big leagues and signed a three-year, $1.3-million contract with the Seattle Mariners after being drafted in 1993. He also got a $1-million signing bonus.

Earning so much as a teenager “was a culture shock,” he told The New York Times Magazine in a 2019 interview.

Rodriguez, now 43, wants to make sure his two daughters, ages 11 and 14, have the right tools to make smart money decisions, so he turns car rides into money and business classes.

One lesson in particular appears to be paying off: start investing young.

After giving his kids money to invest in stock portfolios five years ago, “they have both doubled their money, for sure,” he told Sports Illustrated’s Ben Reiter for his cover story on the reinvention of A-Rod. Rodriguez was suspended for the entire 2014 season for allegedly using performance-enhancing drugs. He retired from baseball in 2016 and is now the CEO of A-Rod Corp.

Investing is one of the most effective ways to build wealth, and the earlier you start, the more you’ll benefit in the long-term. That’s why Rodriguez also advises young professional athletes, who will likely earn most of their money in their twenties and thirties, to put their money to work right away. “You have an incredible opportunity if you’re frugal and you’re smart and you put your money away early,” he tells CNBC Make It, if you take advantage of the power of compound interest.


Company: cnbc, Activity: cnbc, Date: 2019-07-05  Authors: kathleen elkins
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84% of millennials and Gen Z failed this retirement quiz. See how you compare

In fact, when employers offered ongoing financial education, employees were 66% more likely to stay with that employer, per the report. That said, Fisher believes employers could make it easier for employees to take advantage of retirement options offered to them. Select all the statements below that describe what a mutual fund is. You can select all of the statements or a mix of some of the statements to answer this question. If you are not sure what a mutual fund is you can select “I’m not sur


In fact, when employers offered ongoing financial education, employees were 66% more likely to stay with that employer, per the report. That said, Fisher believes employers could make it easier for employees to take advantage of retirement options offered to them. Select all the statements below that describe what a mutual fund is. You can select all of the statements or a mix of some of the statements to answer this question. If you are not sure what a mutual fund is you can select “I’m not sur
84% of millennials and Gen Z failed this retirement quiz. See how you compare Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-05  Authors: alicia adamczyk
Keywords: news, cnbc, companies, statements, failed, select, retirement, 84, sure, mutual, gen, millennials, dont, respondents, quiz, fund, fisher, financial, compare


84% of millennials and Gen Z failed this retirement quiz. See how you compare

“Participants can fall behind in their retirement savings simply because they don’t know how much to save, and because they don’t understand the impacts of choosing an investment mix or how compound interest works to their benefit,” notes the report. In fact, when employers offered ongoing financial education, employees were 66% more likely to stay with that employer, per the report. Nathan Fisher, founder and senior executive vice president of Fisher Investments 401(k) Solutions, tells CNBC Make It that it’s not surprising that retirement knowledge is lagging for younger workers, who are likely not thinking about 30 to 40 years down the road when they have more imminent financial considerations — like making rent and paying off student loans — to deal with now. “I personally believe that our brains are wired to deal with things right here, right now,” says Fisher. “There’s so much to pay attention to and [retirement planning] really gets drowned out.” That said, Fisher believes employers could make it easier for employees to take advantage of retirement options offered to them. In fact, he says a company with a well-run retirement program probably does offer educational opportunities like financial planning sessions, if employees know how to take advantage of them. He recommends reaching out to your human resources department to see what’s available.

What workers don’t know about their 401(k)s

Here are the two questions Fisher Investments 401(k) Solutions asked that tripped up the most respondents: Based on rules defined by the Internal Revenue Service at what age can you withdraw money from your retirement plan without a tax penalty? 62 61.5 61 60.5 60 59.5 58.5 Correct answer: 6. Just 27% of respondents answered correctly. Select all the statements below that describe what a mutual fund is. You can select all of the statements or a mix of some of the statements to answer this question. If you are not sure what a mutual fund is you can select “I’m not sure what a mutual fund is.” A mutual fund is an investment vehicle that is made up of a pool of funds collected from many investors The decisions to buy and sell securities in a mutual fund are made by one or more portfolio managers A mutual fund is limited to no more than ten different financial securities in the portfolio There are no fees associated with owning a mutual fund I’m not sure what a mutual fund is Correct answers: 1 & 2. Just 23% of respondents answered correctly. Don’t miss: Here’s how to figure out how much money you need to retire early Like this story? Subscribe to CNBC Make It on YouTube!


Company: cnbc, Activity: cnbc, Date: 2019-07-05  Authors: alicia adamczyk
Keywords: news, cnbc, companies, statements, failed, select, retirement, 84, sure, mutual, gen, millennials, dont, respondents, quiz, fund, fisher, financial, compare


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Nearing retirement? This checklist can help you make sure you’re financially prepared

The often-overlooked cost: health careOnce you reach age 65, you’re eligible for Medicare. Know your Social Security strategyAlthough you can start taking Social Security at age 62, your monthly checks will be larger the longer you can delay. In fact, your benefit will increase by 6% to 8% yearly until you reach age 70 if you can hold off. Then, when you reach your full retirement age, the money comes back to you in the form of a higher monthly check. Check risk in your accountsIf you have a 401


The often-overlooked cost: health careOnce you reach age 65, you’re eligible for Medicare. Know your Social Security strategyAlthough you can start taking Social Security at age 62, your monthly checks will be larger the longer you can delay. In fact, your benefit will increase by 6% to 8% yearly until you reach age 70 if you can hold off. Then, when you reach your full retirement age, the money comes back to you in the form of a higher monthly check. Check risk in your accountsIf you have a 401
Nearing retirement? This checklist can help you make sure you’re financially prepared Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-05  Authors: sarah obrien
Keywords: news, cnbc, companies, social, checklist, nearing, youre, income, retirement, financially, typically, help, reach, prepared, age, working, pay, security, sure


Nearing retirement? This checklist can help you make sure you're financially prepared

For anyone getting close to joining the ranks of retirees, there are some key aspects of your impending new status you need to review. Roughly 10,000 baby boomers turn 65 every day, the age most often associated with retirement. Of course, not everyone hangs up their working hat at exactly that age, which means your own situation could be very different from that of someone else on the edge of retiring. And while some people may have been saving and planning for decades for retirement, others might have given little thought to their transition away from 40-hour (or more) work weeks.

Slocan Lake, BC Ira T. Nicolai | Stone | Getty Images

Regardless of where you fall on that spectrum, here are some things to consider as you prepare to say farewell to your coworkers and embark on the next leg of life’s journey.

Know your expenses

You might have a general idea of what you spend, but you should have a clear picture of your expenses and how that might change in retirement. For example, while you may not have to deal with the costs of commuting or office attire, you might plan to spend more on entertainment, travel or other pursuits when your days are no longer consumed by work. “Track your spending for the next couple of months if you’re not sure,” said certified financial planner Linda Rogers, owner of Planning Within Reach in Memphis, Tennessee. Many people also aim to have their debt (i.e., credit cards, mortgages) paid off before they make the leap to retirement. While that might not be realistic for everyone, the less debt you have, the better.

The often-overlooked cost: health care

Once you reach age 65, you’re eligible for Medicare. So if you retire at or past that age, the government program generally is there for you. Yet it doesn’t cover everything. For example, dental, vision and long-term care (e.g., help with daily living, such as bathing and dressing) are not included. The amount you pay for Medicare depends on a number of factors, including your recent income (higher earners pay more), whether you pay any late-enrollment fees (if you didn’t sign up when you were first eligible and don’t meet an exclusion) and whether you opt for additional coverage and to what degree. However, if you’re younger than 65, you’ll need to find coverage on your own.

“A lot of people forget that, or don’t factor it in or find out they way underestimated the cost,” Rogers said. “If you’re 65 so you can get on Medicare, retiring is much more doable.” For people who face a gap in coverage, federal law known as COBRA requires employers with at least 20 workers to allow ex-employees (including retirees) to remain in an employer-sponsored health plan — if the ex-worker wants to pay the full cost of the premiums. Many employers pay a share of the premiums for current employees and typically won’t do that for COBRA coverage. There are potentially other options, including an Affordable Care Act plan (a.k.a., Obamacare). Depending on your income, you could receive a subsidy if you go that route. Other options also might be available, including short-term plans — which come with skimpier coverage and typically only are a viable option for healthy people with no pre-existing conditions. Additionally, keep in mind that health-care expenses typically rise as you age. In fact, the average 65-year-old couple will spend $285,000 on health care over the remainder of their lives, according to Fidelity Investments’ latest estimate.

Know your Social Security strategy

Although you can start taking Social Security at age 62, your monthly checks will be larger the longer you can delay. In fact, your benefit will increase by 6% to 8% yearly until you reach age 70 if you can hold off. However, most people don’t wait that long — more than 70% claim by age 64, according to a recent study from United Income. At the same time, a growing number of 60-somethings are still working either full- or part-time. In the 60-to-64 crowd, about 55% are working at least part-time, according to the most recent data available from the Bureau of Labor Statistics. Among people ages 65 to 69, the share is about 31%. Be aware: If you start taking Social Security before your government-determined full retirement age of about 66 or 67 — the exact number depends on your birth year — there’s a limit to how much income from work you can have without it affecting your benefits. For 2019, that cap is $17,640. Earn more than that and your benefits will be reduced by $1 for every $2 you earn over that threshold. Then, when you reach your full retirement age, the money comes back to you in the form of a higher monthly check. (And, depending on your overall income, up to 85% of your Social Security benefits is subject to federal income tax). At that point, you also can earn as much as you want from working without it affecting your Social Security benefits. Also, if you are an early taker who is working and you reach full retirement age during 2019, then $1 gets deducted from your benefits for every $3 you earn above $46,920 during the months you were below that age.

Evaluate income and tax strategies

In retirement, sources of income can vary from person to person and might involve a pension, retirement savings such as a 401(k) or individual retirement account, Social Security, taxable savings and investment accounts, health savings accounts, or business and trust income. “Many people have a few different types of assets, so they want to be smart about which they tap into,” Rogers said. For instance, not all sources of income are taxed the same. Withdrawals from traditional IRAs or 401(k) plans are taxed as ordinary income, but for Roth IRAs or Roth 401(k) plans, the withdrawals are tax-free. If you have a taxable investment account, you could have to pay capital gains taxes on some of the withdrawals.

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Check risk in your accounts

If you have a 401(k) or IRA, make sure your investment mix makes sense for your retirement income plan. Exactly how much of your portfolio should be dedicated to stocks — which are more volatile but typically deliver the best returns over time — will depend on how much income you need to generate during retirement and how much risk you’re able to stomach. “We’ve had people come in who have been in the same investments since they were 24,” Rogers said. “You want to evaluate the allocation of your entire portfolio to make sure the stock and bond composition is appropriate.”

Have a cushion

Financial advisors typically recommend that you keep several years’ worth of income away from the stock market, in money markets, cash or other less risky investments. “Don’t risk the money you need in the next two or three years,” said Terrence Herr, a CFP and managing partner at Herr Capital Management in Chicago. “You can stomach volatility in the market if you have three years of income that is safe and not subject to those ups and downs.” If the market is down, it would mean not having to sell investments at a lower price to generate the annual income you need to live.

Prepare emotionally


Company: cnbc, Activity: cnbc, Date: 2019-07-05  Authors: sarah obrien
Keywords: news, cnbc, companies, social, checklist, nearing, youre, income, retirement, financially, typically, help, reach, prepared, age, working, pay, security, sure


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EU top diplomat says Europe will try to make sure ‘escalation is avoided’ between US, Iran

Federica Mogherini, the EU’s High Representative for Foreign Affairs and Security Policy, told CNBC ahead of a gathering of European leaders in Brussels Thursday afternoon that Europe will try to “open channels of communication and make sure that an escalation is avoided,” as oil prices spiked significantly over widespread supply fears. This followed an earlier claim from Iranian state-run broadcaster Press TV that the country’s Revolutionary Guard had successfully brought down an “intruding Ame


Federica Mogherini, the EU’s High Representative for Foreign Affairs and Security Policy, told CNBC ahead of a gathering of European leaders in Brussels Thursday afternoon that Europe will try to “open channels of communication and make sure that an escalation is avoided,” as oil prices spiked significantly over widespread supply fears. This followed an earlier claim from Iranian state-run broadcaster Press TV that the country’s Revolutionary Guard had successfully brought down an “intruding Ame
EU top diplomat says Europe will try to make sure ‘escalation is avoided’ between US, Iran Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-20  Authors: willem marx, natasha turak
Keywords: news, cnbc, companies, sure, iranian, european, try, american, iran, europe, eu, surveillance, week, told, military, diplomat, avoided, region, escalation


EU top diplomat says Europe will try to make sure 'escalation is avoided' between US, Iran

The European Union has a crucial role to play in diffusing military tensions between the United States and Iran, the bloc’s top diplomat said, after the U.S. Defense Department insisted that an American surveillance drone shot down by an Iranian projectile in the Gulf region on Wednesday was operating over international waters.

Federica Mogherini, the EU’s High Representative for Foreign Affairs and Security Policy, told CNBC ahead of a gathering of European leaders in Brussels Thursday afternoon that Europe will try to “open channels of communication and make sure that an escalation is avoided,” as oil prices spiked significantly over widespread supply fears.

President Trump said in a Twitter post that Iran had made a “very big mistake” in its decision to shoot down the RQ-4A Global Hawk, an unarmed, unmanned but highly advanced high-altitude surveillance aircraft. Later Thursday, Trump seemed to downplay the incident, suggesting that it may have been unintentional.

This followed an earlier claim from Iranian state-run broadcaster Press TV that the country’s Revolutionary Guard had successfully brought down an “intruding American spy drone.”

But according to Navy Capt. Bill Urban, a spokesman for the U.S. military’s Middle East regional command known as Centcom, Iran’s use of a surface-to-air missile on the Global Hawk represented an “unprovoked attack on a U.S. surveillance asset in international airspace.”

In a sign of the seriousness with which the U.S. military is treating this latest incident, the top U.S. Air Force commander in the region, Lt. Gen. Joseph T. Guastella, spoke to Pentagon journalists from the Al Udeid Air Base in Qatar, where around 10,000 US military personnel are permanently stationed.

The United States last week announced it would send an additional 1,000 troops to the Middle East, in addition to the 1,500 extra personnel it promised to dispatch in May.

And senior military commanders have previously warned that Iranian attacks on U.S. forces or interests in the region would prompt a response.

Mogherini, the European diplomat, told CNBC she had agreed with her American counterpart Secretary of State Mike Pompeo earlier this week at a meeting in Washington D.C. that it was not in anybody’s interest “to see a military escalation,” and her focus remained on keeping Iran compliant with its obligations under the nuclear deal she helped broker, formally known as the Joint Comprehensive Plan of Action or JCPOA.

“We’ll try to do what we can to diffuse tensions,” she said.

But Sanam Vakil, who heads the Iran forum at the London-based think tank Chatham House, said the drone shooting was the latest in a “cascading series of attacks,” which included several that damaged oil tankers in the stretch of water that separates Iran from the Arabian peninsula.

“Iran is increasing its leverage for future negotiations” over sanctions relief and its nuclear capabilities, Vakil told CNBC via email.

“Without dialogue, diplomacy and serious de-escalation, the risk of action and reaction and a slide into a wider regional conflict is significant.”


Company: cnbc, Activity: cnbc, Date: 2019-06-20  Authors: willem marx, natasha turak
Keywords: news, cnbc, companies, sure, iranian, european, try, american, iran, europe, eu, surveillance, week, told, military, diplomat, avoided, region, escalation


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