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    How to find great returns on cash after the Fed cut: Rates won’t ‘go from awesome to awful overnight,’ expert says

    Experts have said 2024 promised to be a “very good year for cash savers.”
    That still holds true, even after the Federal Reserve’s new 50 basis point rate cut.
    Here’s what to know to find the best returns on your cash now.

    Jgi/jamie Grill | Tetra Images | Getty Images

    In January, experts said 2024 would be a “very good year for savers.”
    And it still is, despite the Federal Reserve’s recent 50 basis point rate cut, which will push record returns on cash lower.

    “Those rates aren’t going to go from awesome to awful overnight,” said Matt Schulz, chief credit analyst at LendingTree. “There’s no need to panic if you haven’t moved your money into a high-yield savings account yet or you haven’t locked in a CD rate.”
    More from Personal Finance:Here’s what the Fed rate cut means for your walletDon’t expect ‘immediate relief’ from the Fed’s first rate cutExperts weigh in on when to refinance as interest rates fall
    While savers may have missed the interest rate peak, there is still value in setting money aside and finding the best place to put your cash savings now.
    “The biggest mistake that people can make … is the failure to save,” said Mark Hamrick, senior economic analyst at Bankrate.
    “The urgency of saving is not made any less in an environment where rates are coming down,” he added. “It’s just that the math changes.”

    Some savings accounts still offer 5% yields

    The Fed’s rate cut hasn’t yet shown up in the form of lower returns at many banks and accounts.
    Returns on savings accounts — as measured by average annual percentage yields, or APYs — are almost seven times higher than they were before the Federal Reserve started hiking interest rates, according to Bankrate.
    “A good number of financial institutions are going to need to keep their yields at levels that are sufficient to attract deposits,” Hamrick said.
    The best rates on savings accounts can be found online. As of Sept. 18, high-yield online banks are offering a 5.1% average yield, according to Bankrate.
    Savers who access those rates are still beating inflation.

    Government data shows the 12-month inflation rate has cooled to 2.5% as of August, according to the consumer price index.
    Yet, savers who do not shop around run the risk of falling behind price growth, with the average yield on traditional savings accounts at just 0.5%, according to Hamrick.
    “It’s still going to be as important as ever for people to prioritize their savings, to shop around for the best rates,” Hamrick said.

    Now is still a great time to lock in a CD

    For savers with cash sums they do not plan to touch for a set period of time, a certificate of deposit can provide a way to lock in high rates.
    A six-month or one-year CD may provide a 5% annual percentage yield, while three- and five-year CDs are still providing at least 4% returns, according to Hamrick.
    “You really haven’t lost much at all at the moment,” Hamrick said.

    Since CDs offer less liquidity than a savings account, it’s important to ensure you have access to cash in case of an emergency. A CD will typically charge early withdrawal penalties if the money is taken out before the set term.
    Having cash set aside — whether through a high-yield savings account or a CD — can help provide protection for uncertain times, Hamrick said.

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    Estate planning can be difficult. Surprises in a will can complicate things further

    Join us on October 24th at 1pm for an online Your Money event: REGISTER HERE

    Handling the estate of a deceased parent can be emotionally complicated if the estate plan doesn’t unfold as expected — say, if there is an uneven split of assets among children or a previously unknown heir who comes forward to claim a share of the estate.
    More than a third, 36%, of people with a will say there are surprises for their beneficiaries in that document, according to a 2023 LegalShield survey.
    “Don’t write a will from anger,” said one expert. “Don’t write an estate plan from anger.”

    Steve Smith | Tetra Images | Getty Images

    Handling the estate of a deceased parent can be an emotional process for children already dealing with grief. 
    Those emotions can become more complicated if the estate plan doesn’t unfold as expected — say, if there is an uneven split of assets among children or a previously unknown heir who comes forward to claim a share of the estate.

    Feelings of pain and betrayal can be avoided by having discussions about your estate plan with your family before death; however, estate planning attorneys say these conversations are rare.
    About two-thirds of Americans, 68%, say discussing end-of-life preparations with loved ones is important, but only 47% have done so, according to a 2022 Ethos survey of 1,000 adults. A 2024 report from online estate planning service Trust & Will found that 34% of millennials are unsure if their parents even have an estate plan. The site polled 1,000 adults.

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    If a client refuses to disclose information about their estate to their heirs, it can put an estate planner or financial advisor in the difficult position of doing so after that client’s death.
    “I think a lot of lawyers are hesitant to point out the ramifications of some of these things,” said New Jersey-based estate planning attorney Martin Shenkman.

    Unexpected heirs and beneficiaries

    One estate surprise may be assets given to a person, pet or entity, such as a charity or alma mater, the family wasn’t expecting as a beneficiary, experts say. It’s also possible that a previously unknown heir steps forward, such as a half sibling the deceased’s children weren’t aware of. 

    It’s unclear how common unexpected heirs are, but estate planning bombshells aren’t unusual. More than a third, 36%, of people with a will say there are surprises for their beneficiaries in that document, according to a 2023 LegalShield survey. The site polled 1,316 adults.
    About 3% of wills in the U.S. are contested, according to a 2013 study published in the Nevada Law Journal.

    In the case of a previously unknown heir coming forward, experts say the first consideration is the will. If the will is vague or unclear — say, if it designates an asset to be split “among my children” rather than naming individuals —  there could be disputes that could require court intervention, according to Mitch Mitchell, Trust & Will’s probate expert.
    Probate laws vary by state, he said, but it’s rare for genetic testing to be required to prove that a previously unknown heir is related. Typically, half siblings don’t have to prove who they are more than any other child of the deceased.
    “As for inheritance divided equally, while states may vary regarding how much of a share a half sibling is to receive, this variation generally only exists when a half sibling is inheriting through a sibling, not a common parent,” Mitchell said. “Generally, for inheritance through a common parent, half siblings receive the same inheritance in equal parts with all other siblings.”
    When there is no will, a state’s intestacy laws will determine how the property is divided, experts say, typically favoring the closest relatives.

    The kids ‘don’t always get along’

    The inheritance process can be a messy one if someone is written out of the will or an inheritance is divided unequally — especially if the decedent doesn’t detail why they made such choices.
    “There have been a zillion times when people have told me, ‘No, all the kids get along. They all understand what I’ve done,'” Shenkman said. “And they may believe that because the kids appear to get along. But as soon as the parents are gone, those emotions come out of the closet like a torrent, and no, they don’t always get along.”

    The first step to avoiding these kinds of hardships is do everything from a compassionate perspective, not from anger.

    Martin Shenkman
    estate planning attorney

    Shenkman said attorneys should have open and honest discussions with clients and ask questions about motivations during the will-writing process. 
    “When I’ve seen parents or family members disinherit somebody, it’s really a kick in the gut in most cases,” he said. 
    Shenkman also encourages clients to have discussions with their children that are age appropriate, even if they don’t disclose dollar amounts. This can help explain the decision-making behind how an inheritance is split up and avoid any feelings of betrayal after a parent’s passing, he said.

    ‘Don’t write a will from anger’

    Other things that can complicate the estate planning process are non-traditional family situations such as same-sex couples, gender transitions, assisted reproduction or surrogacies. Anything that can create ambiguity in how wills or trusts are interpreted requires creative solutions, experts say.
    Shenkman recommends involving an objective third party, such as a trust protector or friend, in the estate planning process to provide impartial perspectives for when it’s time to read the will.

    Many people avoid writing a will or creating a trust at all due to procrastination or superstition surrounding death, experts say. But reframing the estate planning process as leaving a positive legacy, rather than just distributing assets after death, can help clients take on a more compassionate long-term view.
    “The first step to avoiding these kinds of hardships is do everything from a compassionate perspective, not from anger,” Shenkman said. “Don’t write a will from anger. Don’t write an estate plan from anger.” More

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    Top Wall Street analysts find these stocks promising for the long haul

    The word “Netflix” shines brightly at the presentation of the new season (3) of the Netflix series “Bridgerton” in the Flora. 
    Rolf Vennenbernd | Picture Alliance | Getty Images

    As the earnings reporting season draws to a close, many companies were able to deliver solid results despite pressures on consumer spending.
    Investors seeking stocks that can withstand short-term pressures and deliver over the long term should track the recommendations of top Wall Street analysts.

    Bearing that in mind, here are three stocks favored by the Street’s top pros, according to TipRanks, a platform that ranks analysts based on their past performance.
    Take-Two Interactive Software
    This week’s first pick is game developer Take-Two Interactive Software (TTWO). In August, the company reported better-than-expected adjusted earnings for the first quarter of fiscal 2025.  
    Recently, Baird analyst Colin Sebastian reiterated a buy rating on Take-Two Interactive stock with a price target of $172. The analyst is upbeat about the company’s upcoming releases and expects its bookings to increase by at least 40% in the next fiscal year following mid-single-digit growth this year.
    Sebastian’s robust bookings growth estimate is backed by the expected release of key titles – Civilization VII, Borderlands 4 and the much-anticipated Grand Theft Auto VI (GTA VI). Moreover, he expects the company’s new console/PC releases to deliver about $2.25 billion in incremental bookings. He anticipates the mobile business will contribute around $3.1 billion, and catalog/live services will generate $2.5 billion in the full year.
    While management has expressed high confidence in its ability to release GTA VI next year, the analyst thinks that any potential delay between two fiscal years would have a limited impact on TTWO’s two-year earnings path. He expects this vital release to generate about $3 billion of bookings in the first year, while enhancing the company’s financial flexibility with over $2 billion in free cash flow.

    “Beyond the next 12-24 months, Take Two should benefit from the long-tail of live services/catalog sales and further depth in the pipeline with sequels to Red Dead, BioShock and Max Payne, and perhaps new 2K sports franchises,” said Sebastian.
    Sebastian ranks No. 286 among more than 9,000 analysts tracked by TipRanks. His ratings have been profitable 56% of the time, delivering an average return of 12.8%. (See TTWO Ownership Structure on TipRanks) 
    Costco Wholesale
    Baird analyst Peter Benedict is bullish on the prospects of membership-only warehouse chain Costco Wholesale (COST). Earlier this month, Costco reported a 7.1% rise in its net sales for the retail month of August (the four weeks ended Sept. 1).
    Excluding the impact of changes on gasoline prices and foreign exchange, Costco’s August comparable sales also grew 7.1%. Benedict noted that the August comparable sales growth was sequentially steady compared to the 7.2% increase in July, as stronger traffic was offset by some moderation in average traffic growth.
    Benedict increased his Q4 fiscal 2024 EPS estimate to $5.10 compared to the Street’s consensus estimate of $5.07 per share to reflect better-than-expected sales in the fiscal quarter. “COST’s traction with consumers continues to stand out against an increasingly challenged spending backdrop,” said the analyst.
    Benedict highlighted that the company delivered solid core comparable sales growth yet again and displayed persistent strength in the non-foods area, even as there is continued softness in discretionary categories across most of the retail sector.
    The analyst thinks that Costco’s “growth staple” appeal remains intact, thanks to its consistent performance, store network expansion, encouraging membership key performance indicators and the recently announced fee hike. He reiterated a buy rating on COST stock with a price target of $975.
    Benedict ranks No. 30 among more than 9,000 analysts tracked by TipRanks. His ratings have been successful 71% of the time, delivering an average return of 16.1%. (See COST Options Trading on TipRanks) 
    Netflix
    Streaming giant Netflix (NFLX) is the third pick for this week. Despite macro pressures and intense competition in the streaming space, the company has been able to impress investors with its crackdown on password sharing and the rollout of an ad-supported tier.
    JPMorgan analyst Doug Anmuth contends that while “advertising is not in NFLX’s DNA” and the company is creating the ad tier from scratch, it has the ability to emerge as a major ad player as scale and monetization grow in 2025 and beyond. He estimates that ad revenue, excluding the subscriptions component, will account for more than 10% of the company’s revenue in 2027.
    The analyst acknowledges that the scale of Netflix’s ad tier currently lags behind that of peers like Amazon, which gained from automatically including its Prime members in its ad-supported tier. That said, he is confident that Netflix can boost its scale by making changes in plans and pricing, bundling offers and providing live content that has extensive appeal.
    Anmuth further explained that while Netflix’s ad tier is dilutive to its overall average revenue per member, the impressive 150% growth in the company’s upfront ad sales commitments, greater scale and improved focus on ad formats and ad tech should drive higher monetization.
    Overall, Anmuth is optimistic about Netflix’s ability to grow its top line in the mid-teens this year and in 2025, further improve its margins, and deliver multi-year free cash flow growth. He reaffirmed a buy rating on NFLX stock with a price target of $750.
    Anmuth ranks No. 99 among more than 9,000 analysts tracked by TipRanks. His ratings have been successful 61% of the time, delivering an average return of 17.7%. (See NFLX Financials on TipRanks)  More

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    How this ‘Bachelor’ star turned reality TV fame into a small influencer fortune

    Mari Pepin, a previous contestant from ABC’s “The Bachelor” franchise, opens up about the financial side of reality TV stardom.
    With or without finding a happily ever after, dating show contestants often find opportunities as influencers once they have built a fan base.
    Influencers can make between $2,500 and $5,000 per month, according to a 2023 NeoReach survey.

    Mari Pepin and Kenny Braasch got engaged on season 7 of “Bachelor in Paradise” and married in 2023.
    Photo: Dolce Amor Co.

    Theoretically, contestants on ABC’s “The Bachelor” are looking for love. What they often find are business opportunities.
    Mari Pepin, 28, got both.

    Pepin was a participant on “The Bachelor” season 25, which aired in 2021, and then returned for “Bachelor in Paradise” season 7 later that year. She went home with Kenny Braasch’s final rose — they’ve now been married for more than a year — and an Instagram base of more than 300,000 followers, up from 50,000 before her reality TV appearances.
    That’s when the money started to come in.
    After “Bachelor in Paradise” aired and her following jumped, influencer opportunities followed. “Instantly, we were getting huge deals,” she said.
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    In most cases, companies send Pepin products, which she then tries at her home in Chicago. If she likes an item, she’ll post about it, hitting the company’s suggested talking points and then earning a fee, she said.

    Pepin has worked with Loreal, Factor meal delivery, Ruffino wine and Mermaid hair products, among others. On some account promotions, Pepin and Braasch team up. Braasch also has partnerships, including Apothic wine and gambling site BetUS, which connected Pepin with CNBC.

    Mariela Pepin, who goes by Mari, was a contestant on “The Bachelor” season 25 and then “Bachelor in Paradise” season 7.
    Photo: Dolce Amor Co.

    Brands giving products to celebrities and influencers in return for promotions on their social media feeds is a common marketing strategy, according to a new report from Influencer Marketing Hub.
    Alternatively, the businesses will sign deals with influencers to promote the product in their posts for a fee or a share of affiliate revenue, similar to a commission for each sale. The posts alone help drive sales, the survey of more than 3,000 marketing agencies, brands and professionals found.
    For the companies, it’s an approach that has proved effective when it comes to building a brand, according to the report.

    Influencers ‘can make bank’

    For many reality television stars, influencing has become a popular side hustle with a low barrier to entry.
    Depending on the platform and follower count, along with other factors, content creators can make between $2,500 and $5,000 per month, a 2023 NeoReach survey of more than 2,000 full- and part-time creators found.
    Although Pepin earned more than $50,000 last year through influencing and has made as much as $12,500 for a single post, according to records reviewed by CNBC, the number of prospects, and payout, can vary greatly.
    “That inconsistency is really scary for me,” she said.

    “The larger the following, the more they can make bank,” said Casey Lewis, a social media trend expert and founder of trend newsletter After School. “If they really juice the affiliate, they can make a ton of money.”
    In some cases, that can be enough for a supplemental income stream, but few earn a living wage. Most full- and part-time creators earn an annual income of $15,000 or less, according to NeoReach’s survey.
    Still, 57% of Gen Zers said they would like to become an influencer if given the chance, according to a 2023 report from Morning Consult. The report was based on a poll of more than 2,200 adults and a separate survey of 1,000 Gen Zers ages 13-26 who use various social media platforms.
    “A lot of people aspire to be influencers because they want to be self-employed and to be recognized for their taste and to be someone,” Lewis said.
    However, “there’s awareness that it’s not that easy,” she added. “Monetizing your life in that way is exhausting.”

    Nearly half of young adults have a side gig

    These days, having any sort of side hustle can provide a much-needed income boost to help keep up with a higher cost of living.
    As of 2024, 36% of U.S. adults have a second job and make an average of $891 per month in extra cash from that role, up from $810 in 2023, according to a June report by Bankrate that polled more than 2,300 U.S. adults. Among Gen Zers and millennials, the share of adults with a side gig jumps to nearly 50%.

    Pepin has a full-time day job as a social media marketing manager. “The influencer stuff is just kind of extra. It’s not really reliable,” she said.
    For now, though, Pepin is making the most of her reality TV fame as one half of a successful “Bachelor” couple.
    “I think you have to strike while the iron is hot,” Pepin said.
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    Up to $400 to change a lightbulb? Appliance repair costs are no joke

    Join us on October 24th at 1pm for an online Your Money event: REGISTER HERE

    It is not uncommon to learn the cost of repairs is more than the cost to replace an appliance.
    Several states have so-called “right to repair” laws that require manufacturers of certain devices — such as consumer electronics or appliances — to make parts, physical and software tools and repair information, like schematics, available at a fair and reasonable price.
    “One of the main reasons why it’s so difficult to fix things is because they’re designed with kind of a hostility to repair, or an ambivalence to repair,” said one consumer advocate.

    Author Stephanie Dhue’s difficult-to-repair microwave.
    Courtesy Stephanie Dhue

    I bought a General Electric microwave oven in 2020 for $355. Recently, I noticed the interior light was out.
    I told my husband, since he’s the one who takes care of repairs in our house. He took a look, only to learn that this wasn’t going to be an easy fix. The lightbulb is built into the unit so that it requires taking the microwave apart to change, and a technician is recommended. 

    It sounds like the setup to a lightbulb joke: How much does it cost to change a microwave bulb?
    The answer, however, wasn’t funny. When my husband and I started gathering estimates, we learned that the labor costs involved could be up to $400, maybe more — and that didn’t include the cost of the lightbulb.

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    While my lightbulb situation may be somewhat unique, experts say it is not uncommon to learn the cost of repairs is more than the cost to replace an appliance.
    Gay Gordon-Byrne had a similar experience with a microwave she purchased to match a stove. The microwave touchpad stopped working.
    She figured out how to do the repair herself, but said the manufacturer tried to charge her $600 for the replacement part. Instead, she bought a new microwave for $175.

    “I tell the story all the time because it’s so emblematic of what’s wrong with appliances these days,” said Gordon-Byrne, who is the executive director of Repair.org, which advocates for the legal right of owners to repair their own devices. 

    Figuring out the cost for a repair

    My first call to repair our microwave was to the appliance store where I made the purchase. The service center told me there would be $140 charge to come out, and they couldn’t guarantee that the technician would have a lightbulb on the truck. The service representative suggested I simply purchase a new microwave or shop around for other repair options. 
    Next, I went to the GE site and filled out a form for service. I learned that the charge for a technician to come would be $125.

    One of the the main reasons why it’s so difficult to fix things is because they’re designed with kind of a hostility to repair, or an ambivalence to repair.

    Nathan Proctor
    senior director of U.S. PIRG’s Right to Repair campaign

    When the technician called, I explained the situation and that I needed to know how much it would cost before he came out. He told me he would charge for labor and parts. 
    How much? Since the microwave sits in a cabinet above the counter, to remove it would be a “two man job,” he said, and could cost upwards of $400 for the labor. What if my husband and I took the microwave out and placed it on the counter? In that case the labor charge would be closer to $200, but that wasn’t an exact estimate. It also didn’t include the cost of the lightbulb.
    I canceled the visit and the technician said there would be no charge.
    When I asked GE Appliances why the microwave was designed this way, a spokesperson responded via e-mail that microwave lights are designed to last the lifetime of the product and failures are very uncommon in their products. The light fixture is more than a standard bulb that has to be encased behind a metal enclosure. 
    “It’s not a simple screw-in and requires electrical training and background,” the spokesperson said. “Given the high voltage nature of microwaves, it not safe for consumers without a deep electrical understanding to operate on the interior of a microwave.” She also noted that service techs are required to test for emissions to comply with strict standards set by the U.S. government.

    How ‘right to repair’ laws may affect options, costs

    Studio4 | E+ | Getty Images

    State lawmakers and consumer advocates have been trying to make it easier and cheaper for consumers to get their devices repaired.
    Several states — including California, Maine, Massachusetts, Minnesota and New York — have implemented so-called “right to repair” laws. Typically, the laws require manufacturers of certain devices — such as consumer electronics or appliances — to make parts, physical and software tools and repair information, like schematics, available at a fair and reasonable price. These laws can make it more straightforward for consumers to do repairs themselves, and widen professional repair options, too.
    Colorado and Oregon have passed right to repair legislation that will go into effect in the next year, and more than a dozen others have introduced bills, according to Repair.org.
    “We are just now starting to see the impact of legislation that we’ve been working on for 10 years,” said Gordon-Byrne. The earliest right to repair bills were filed in 2014, she said — including the first, in South Dakota, which failed — and “we really only got the first three laws in place to start July first of this year.”
    There are limits to what these laws can do. Typically they only cover purchases made in recent years, and can be product-specific. New York’s law, for example, doesn’t include appliances. Some states have separate laws to cover specific products like autos, farm equipment and electronic wheelchairs.

    At the federal level, the Federal Trade Commission said in a 2021 report to Congress that “restricting consumers and businesses from choosing how they repair products can substantially increase the total cost of repairs, generate harmful electronic waste, and unnecessarily increase wait times for repairs.” The Commission has also brought warranty-related enforcement actions and this summer sent warning letters to several manufacturers about their warranty practices. 
    Critics of right to repair legislation say the patchwork of state laws are too broad and may do more harm than good.
    “These state proposals and state laws could lead to a lose-lose situation in which manufacturers are harmed because it undercuts their profits, and consumers are harmed because they either see a decreased kind of quality of these products or an increase in price,” said Alex Reinauer, a research fellow at the Competitive Enterprise Institute.

    Some products designed ‘with a hostility to repair’

    Consumer advocates say state laws and the FTC actions help, but haven’t solved the problem. 
    “One of the main reasons why it’s so difficult to fix things is because they’re designed with kind of a hostility to repair, or an ambivalence to repair,” said Nathan Proctor, the senior director of U.S. PIRG’s Right to Repair campaign. 
    To give consumers more information, US PIRG is also launching a new effort to bring repair-score labeling to the U.S. Right now, “there’s no way to tell what products are designed to be serviceable, and therefore last, and be resilient and durable,” Proctor said.
    France already has this kind of system, he said, and the EU is rolling out a “repairability index,” with a rating system that scores a product based on factors including a repair-friendly design and the price and availability of parts. Scores range from zero to 10, with higher numbers indicating a more repairable product and greater longevity expectations.

    However, those scores are subjective and may not hold up over time. For example, if a manufacturer discontinues making a part, that reparability score may not longer be accurate.
    Competitive Enterprise Institute’s Reinauer is keeping a score of his own, using a spreadsheet that compares the Ingress Protection (IP) rating, which grades how a product stands up to water and dust intrusion, with the reparability index. He says that comparison doesn’t favor repairs.
    “When a when a product is more repairable, typically it’s less durable,” said Reinauer, “so there are trade-offs in this.”

    Do-it-yourself help

    Halfpoint Images | Moment | Getty Images

    Depending on the nature of the problem and safety issues involved, a repair may be worth trying to tackle on your own. Appliance owners may find help from others online.
    “Researching the broken item’s issue on the web often leads to information and guides posted by others who have encountered the same issue, or a similar issue and how they addressed it,” said Peter Mui, the founder of Fixit Clinics. Product owners can get help with a do-it-yourself project at a Fixit Clinic or online at Discord. 
    I’m weighing whether it’s worth trying to fix our microwave ourselves or to just live without an interior light. We could try to make it a fun community DIY event, but we risk a repair failure. The microwave model we have now typically costs between $420 and $480 new, if we want to replace it — but I promise I will not buy another appliance without checking if I can change the lightbulb.  
     Feels like there’s a bad joke in here somewhere.  More

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    House may force vote on bill to eliminate rules that reduce pensioners’ Social Security benefits

    House lawmakers have reached the number of signatures they need to prompt a vote on a bill that would eliminate certain rules that reduce Social Security benefits for pensioners.
    The Social Security Fairness Act would repeal rules known as the Windfall Elimination Provision, or WEP, and the Government Pension Offset, or GPO.
    The bipartisan bill has wide support in both the House and the Senate.

    Cavan Images | Cavan | Getty Images

    House lawmakers in Washington have the signatures they need to force a vote on a bill to eliminate rules that reduce Social Security benefits for certain retirees who also receive pension income.
    On Thursday morning, Reps. Abigail Spanberger, D-Va., and Garret Graves, R-La., marked the 206 signatures a discharge petition had thus far collected with a press conference outside the Capitol building alongside organizations representing police, firefighters, postal workers, teachers and other government employees often affected by those rules.

    By Thursday afternoon, the number of signatures had climbed to 218, enough to force a vote on the bill.
    The bipartisan bill — the Social Security Fairness Act — would repeal rules known as the Windfall Elimination Provision, or WEP, and the Government Pension Offset, or GPO, that currently reduce Social Security benefits for almost 3 million Americans.
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    “We have taken on, on a bipartisan basis, something that’s just completely unjust, that has been going on for over four decades,” Graves said.
    “This is a situation where you have some of the most important occupations, some of the most important contributors to our community, that are being discriminated against,” he said.

    How WEP, GPO rules affect retirement decisions

    The Windfall Elimination Provision reduces Social Security benefits for individuals who receive pension income from public roles that did not contribute Social Security payroll taxes — but who also paid into the program and qualified for benefits through other work. The WEP affects about 2 million Social Security beneficiaries.
    The Government Pension Offset, meanwhile, reduces spousal benefits for federal, state or local government employees who did not contribute to Social Security payroll taxes. The GPO affects almost 800,000 retirees.
    The rules can force affected workers to make tough retirement decisions.
    That includes Lois Carson, president of the Ohio Association of Public School Employees, who said during Thursday’s press conference that the rules affected the decisions she made to support her family after her husband passed away. While Carson was able to receive income from his pension, she was not able to access Social Security survivor benefits, as she and her husband both worked as public employees.
    “I continue to work after 37 years, because if I retire, I’m going to lose half of my funding because of this law,” Carson said.
    Carson said a friend lost the $1,200 monthly Social Security benefit checks she received on her husband’s record after she retired from her job as a public school employee.

    Bill faces uncertainties despite bipartisan momentum

    The bill to repeal the WEP and GPO rules is the “most bipartisan and co-sponsored bill in the United States Congress,” Rep. Greg Landsman, D-Ohio, said Thursday.
    The House version of the bill currently has 327 co-sponsors.
    If the bill is put up for a vote in the House, it may pass, experts say.
    Then it would go to the Senate, where the bill has 62 co-sponsors.
    Time constraints may limit the effort’s progress, Emerson Sprick, associate director for the Bipartisan Policy Center’s economic policy program, recently told CNBC.com.
    “Both the Senate and the House have a lot of work to do before the end of the year,” Sprick said.

    While experts agree the WEP and GPO rules could be adjusted to be fairer, some say eliminating them altogether may not be the answer.
    The Congressional Budget Office has estimated the move would cost around $196 billion over 10 years. Social Security already faces a trust fund shortfall, with the program’s combined funds projected to run out in 2035, when 83% of benefits will be payable.
    Others have voiced concerns that repealing the rules would result more a more generous income replacement formula for workers with combined public and private work compared with others who contribute to Social Security for their entire careers.
    “To the extent that people have worked both in covered and non-covered employment, in general they should be receiving some Social Security benefit,” said Paul Van de Water, a senior fellow at the Center on Budget and Policy Priorities.
    “The question is how much,” he said. More

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    From mortgages to auto loans, experts weigh in on when — or if — to refinance as interest rates fall

    The Federal Reserve just slashed interest rates by a half percentage point.
    That may open up some refinancing opportunities for borrowers, depending on the type loan.
    From mortgage refis to credit cards, auto loans and student debt, financial pros break down what you need to know.

    Moyo Studio | E+ | Getty Images

    The Federal Reserve announced a half percentage point, or 50 basis points, interest rate cut at the end of its two-day meeting Wednesday. And, naturally, some Americans will want to make the most of the central bank’s first rate cut since the early days of the Covid pandemic.
    “How quickly the impact of lower rates is felt depends on whether households have variable or fixed financing rates” said Stephen Foerster, professor of finance at Ivey Business School in London, Ontario, Canada. Some adjust fairly quickly, others don’t reset at all.

    That is, unless you can refinance.
    According to a recent report from Nerdwallet, 18% of consumers said they planned to refinance a loan once rates go down. The financial services site polled more than 2,000 U.S. adults in July.
    While taking advantage of lower rates could make financial sense, there are often other considerations, as well, depending on the type of loan, experts say.  
    More from Personal Finance:Here’s what the Fed rate cut means for your walletThe ‘vibecession’ is ending as the economy nails a soft landingMore Americans are struggling even as inflation cools

    No ‘universal rule’ for refinancing a mortgage

    For starters, while mortgage rates are partly influenced by the Fed’s policy, they are also tied to Treasury yields and the economy. So, home loan rates may continue to fluctuate.

    Further, most homeowners still have a lower rate on their loan than what they could likely get if they were to refinance now — with the exception of those who bought a house within the last two or three years, according to Jacob Channel, senior economic analyst at LendingTree. 
    Roughly, 82% of homeowners are locked in at rates below 5%, and 62% have rates under 4%, a 2023 Redfin analysis found.

    “There isn’t a universal rule for when people should think about refinancing a mortgage,” Channel said. “Some people will tell you that you shouldn’t think about refinancing until you could get a rate that’s at least 50 basis points lower than what you currently have, others will say that you should wait until you could get a rate that’s 100 or more basis points lower.”
    Other factors to consider are your creditworthiness, which will ultimately determine what rate you can qualify for, as well as the closing costs, which typically run 2% to 6% of your loan amount to refinance, according to LendingTree.
    “There’s no one-size-fits-all answer to the question of whether or not somebody should refinance their mortgage,” Channel said.

    Don’t wait to reassess credit card debt

    When it comes to credit card debt, the math is a little more cut and dried.
    Since most credit cards have a variable rate, there’s a direct connection to the Fed’s benchmark. In the wake of the rate hike cycle, the average credit card rate rose from 16.34% in March 2022 to more than 20% today — nearing an all-time high. Those APRs will edge lower now, but not significantly.
    No matter what the Fed does, refinancing high-interest credit card debt is a good move, according to Matt Schulz, chief credit analyst at LendingTree.
    “A 0% balance transfer card is likely your best choice, assuming you have good enough credit to get one,” he said. “A low-interest personal loan can be a good tool, as well.”

    Alternatively, borrowers can call their card issuer and ask for a lower interest rate on their current card. The average reduction is about 6 percentage points, one LendingTree survey found. “That’s like going from 25% to 19% and is way, way more impactful than anything the Fed’s going to do,” Schulz said.

    Auto loan refi options depend on equity

    Although auto loans are fixed, the rates on new-car loans will come down with the Fed’s moves.
    But for those with existing auto loan debt, refinancing is not a given.
    “An auto loan’s interest is weighted more towards the beginning of the loan; therefore, if you’ve had the loan for a year or two, you’ve already paid quite a bit in interest,” said Ivan Drury, Edmunds’ director of insights. “Even though lowering your rate makes the monthly payment less, it could result in paying more interest over the life of the loan.”
    In addition, “if you were paying mostly interest, you might not have enough equity — or any — to really leverage the lower rates,” he said, unless you put more cash toward refinancing and take out a smaller loan.
    Consumers may benefit more from improving their credit scores, which could pave the way to substantially better loan terms, he said.

    Refinancing student debt can come with risks

    Eventually, student loan borrowers with variable-rate private loans may have reasons to consider refinancing as rates come down.
    “Borrowers can choose to refinance their loans to take advantage of lower prevailing interest rates or improvements in their credit scores, which can also lead to lower interest rates, or if they want to switch lenders,” said higher education expert Mark Kantrowitz.
    However, refinancing a federal loan into a private student loan will forgo the safety nets that come with federal loans, such as deferments, forbearances, income-driven repayment and loan forgiveness and discharge options, according to Kantrowitz. 
    And like other types of refinancing opportunities, extending the term of the loan means you ultimately will pay more interest on the balance.
    Subscribe to CNBC on YouTube. More

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    Thursday’s big stock stories: What’s likely to move the market in the next trading session

    Traders work on the floor of the New York Stock Exchange on September 18, 2024 in New York City. 
    Stephanie Keith | Getty Images

    Stocks @ Night is a daily newsletter delivered after hours, giving you a first look at tomorrow and last look at today. Sign up for free to receive it directly in your inbox.
    Here’s what CNBC TV’s producers were watching as the Federal Reserve slashed rates by a half point on Wednesday and what’s on the radar for the next session.

    Existing home sales due Thursday at 10 a.m. ET

    Stock chart icon

    Beazer Homes’ performance in the past month

    Morning restaurant reports

    Cracker Barrel and Darden Restaurants will release earnings before the bell.
    Cracker Barrel is down more than 3% from three months ago. The stock is up about 6% week to date, but it’s 49% from the late December high.
    Darden Restaurants is up roughly 5% in the past three months. Darden runs restaurant brands like Olive Garden, Longhorn Steakhouse, Ruth’s Chris and Bahama Breeze. The stock is 9.5% from the March high. 

    Afternoon reports

    FedEx reports after the bell. The stock is up 20% in the past three months. It stands 5% from the July 16 high.
    Lennar also reports after the bell. The stock is up 26% from three months ago. It hit a new 52-week high Wednesday. It is up more than 5% in a week.

    Stock chart icon

    FedEx shares in the past three months

    Rate cuts and banks

    CNBC TV’s Leslie Picker will report on the banking sector’s reaction to the Federal Reserve’s half-point interest rate cut.
    All the big banks are down in September: JPMorgan is off by more than 7%. The stock is 7.5% from the August 30 high.
    Goldman Sachs is down about 5% in September. The stock 6% from the July 31 high.
    Wells Fargo is down 7% in September. The stock is down 12.6% since mid-May.
    Citigroup and Morgan Stanley are down about 4% in September. Citigroup is 11% from the July 17 high, and Morgan Stanley is 8.5% from the July 16 high.
    Bank of America is down 2% in September. The stock is 10% from the July 17 high. 

    Rates and the Fed

    Yields on the 10-year and two-year Treasury notes rose a bit Wednesday after the Fed’s cut.
    Yields on the one-year, six-month, three-month and one-month Treasury bills all fell.
    The 10-year is now at 3.7%.
    The two-year is 3.62%.
    The one-year is 4.02%.
    The six-month is 4.58%.
    The three-month is 4.78%.
    The one-month is 4.79%. 

    Gold

    On Wednesday, the commodity hit a new high.
    Jeffrey Gundlach of DoubleLine Capital, who correctly predicted a 50 basis point cut, told CNBC TV’s Scott Wapner on Wednesday that “gold is symptomatic of a market in accumulation mode.”  He also sees political risk and thinks that is likely to help gold keep moving higher.
    The VanEck Gold Miners ETF (GDX) is up roughly 5% in a week. More