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One of the most important conversations newlyweds will need to have is figuring out how and who will pay the bills.
The way couples approach and accomplish this task can be extremely personal and the end goal can be reached in so many ways.
Whatever method you choose, it is critical that it works for you both.

Delmaine Donson | E+ | Getty Images

Wedding and engagement season is right around the corner and that means many couples will embark on a path toward marriage.
One of the most important conversations newlyweds will need to have is figuring out how and who will pay the bills. The goal is to ensure the bills are being paid, especially on time, so the couple remains current with their finances and that means keeping their credit intact.

Money may not be the most exciting topic to discuss with your new partner, but it is a must. According to a recent study by the Institute for Divorce Financial Analysts, 22% of all divorces are due to money issues.  Having a plan and an active dialogue can help strengthen your bond as a couple.

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Here’s a look at more stories on how to manage, grow and protect your money for the years ahead.

The way couples approach and accomplish this task can be extremely personal and the end goal can be reached in so many ways.
No one way is the right way, and we will explore some of the more popular ways we have seen this accomplished.

3 ways couples split bill responsibilities

Many couples find it best to address their bills like they have approached their marriage: They look to commingle their finances like they have their lives.
Taking this approach, the couple would set up a joint account for their bills where all the income they receive would be deposited. That joint account would then be used to pay their bills and fund their emergency and other savings accounts. This provides a fair amount of transparency to both members of the relationship to see how much money is coming into their account each month and where it is going.

Some couples would rather not combine their finances in the way previously described, and would prefer keeping things more separated.
We have seen couples that have separate accounts where their respective pay is deposited. The couple then will agree to divide certain household expenses for which they would be responsible.
One member may be tasked with paying the mortgage, taxes and insurance, while another may pay for the groceries, utilities and maintaining the home. Using this method can provide the same level of transparency for each spouse if that is what the couple wants, or it could also be used to keep things a bit more private.

Another method we see as financial advisors often combines some of the first two ways discussed.
In this situation, we see each person maintaining their own accounts and they each contribute a determined amount each month to a joint account. The joint account would be used to pay all the bills for their collective household. 
Usually, one member of the couple would take the lead to make sure the bills are paid and other times we see them divide this responsibility. This provides each person the ability to maintain their own accounts while giving the couple transparency around the household bills and what it costs to run it monthly.

How to make a bill plan as a couple

Bills and paying them are a necessary evil for any couple and how it gets done can be quite different from one household to another. Whatever method you choose, whether it is one outlined here or something very different, it is critical that it works for you both.
There must be an agreement, similar to so many things in a relationship, between the two people or it simply is not going to be followed.
Once that is in place, you need to ensure that it is being followed, the bills are being paid and they are on time, too.
Paying the bills on time will save you the nuisance of paying interest and late fees, which could add strain to your relationship. Another major benefit is to make sure your individual and credit as a couple is maintained or increased to the highest score possible.
Having great credit, which is helped by paying your bills on time, can have a positive effect on your financial situation.

Having a plan and sticking with it is very important. But it is also important that you check in with each other over time to confirm that the current plan is still working for you both. There may be times in your relationship, based on your situation as a couple, that you may need to adjust your approach. Be flexible and as transparent as you can as a couple, and this will only lead to enhancing your relationship.
In the end, financial planning is extremely personal, and you need to find and follow what works best for you.
— By Lawrence D. Sprung, a certified financial planner and founder/wealth advisor at Mitlin Financial Inc. More

The U.S. Labor Department issued a rule that aims to raise the legal bar for investment advice to retirement savers.
Rollovers from 401(k) plans to individual retirement accounts are a key focus of the “fiduciary” rule, attorneys said.
Almost 5.7 million people rolled money to an IRA in 2020, according to IRS data.

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A new U.S. Labor Department rule will significantly change the advice many investors receive about rolling money over from 401(k) plans to individual retirement accounts, legal experts say.
The so-called “fiduciary” rule, issued April 23, aims to raise the legal bar for brokers, financial advisors, insurance agents and others who give retirement investment advice.

Such recommendations may be tainted by conflicts of interest under the current rules, the agency says.
Rollovers are undoubtedly a “chief focus” of the regulation, said Katrina Berishaj, an attorney at Stradley Ronon Stevens & Young.
“The Department of Labor was not shy about that,” said Berishaj, co-chair of the firm’s fiduciary governance group.

Millions of investors roll over funds each year

Rollovers are common, especially for retiring investors.
They often involve moving one’s nest egg from a 401(k)-type plan to an IRA.

In 2022, Americans rolled over about $779 billion from workplace retirement plans to IRAs, according to a Council of Economic Advisers analysis. Almost 5.7 million people rolled over money to an IRA in 2020, according to most recent IRS data.
The number and value of those transactions have increased significantly as more baby boomers enter their retirement years. In 2010, for example, about 4.3 million people rolled over a total of $300 billion to IRAs, according to the IRS.

A ‘major shift’ in rollover advice

The new Labor Department rule aims to make more investment recommendations “fiduciary” in nature.
A fiduciary is a legal designation. At a high level, it requires financial professionals to give advice that puts the client first. They have an obligation to be prudent, loyal and truthful when giving advice to clients, and to charge reasonable fees, experts said.
Today, many rollover recommendations aren’t beholden to a fiduciary standard under the Employee Retirement Income Security Act, attorneys said.
Labor officials fear that exposes investors to conflicts of interest, whereby advice may not be best for the investor but earns brokers a higher commission, for example.

If the past is any indication of the future, we can anticipate millions of rollovers each year.

Katrina Berishaj
attorney at Stradley Ronon Stevens & Young

Under the current legal rules, which date to the mid-1970s, a financial agent must satisfy five prongs to be considered a fiduciary.
One of those prongs says they’re a fiduciary if they provide advice on a regular basis, attorneys said.
However, many rollover recommendations don’t happen as part of an ongoing advice relationship. Instead, it’s often a one-time occurrence, attorneys said.
That means it’s “very unusual” for a rollover recommendation today to be beholden to a fiduciary standard, Reish said.
The new Labor Department rule changes that, however.
“Under this rule, one-time investment advice to roll assets out of a plan would trigger fiduciary status under ERISA,” said Berishaj, who called the change a “major shift.”

Why rollover advice may be ‘higher-quality’

Under the new rule, advisors would generally be expected to consider factors such as alternatives to a rollover, including the pros and cons of keeping money in a 401(k) plan, Berishaj said.
For example, they’d likely compare various fees and expenses of a workplace plan vs. an IRA, as well as the services and investments available in both. They’d also provide certain disclosures to investors prior to the rollover, such as a description of the basis for that rollover recommendation, she added.
Good advisors are likely making an honest effort to do what’s best for their clients, but hopefully the Labor Department rule would “bring up the bottom to a better quality,” Reish said.

“I think the DOL’s intent is to encourage higher-quality advice, which would get people both better invested and with lower cost,” Reish said.
However, many financial companies dispute the necessity of the Labor Department rule.
For example, the regulation will “harm retirement savers and their access to the professional financial guidance they want and need,” said Susan Neely, president and CEO of the American Council of Life Insurers, an insurance industry trade group.

Additionally, the Labor Department “has chosen to ignore the significant progress made to strengthen consumer protections” over the last several years, Neely said. They include rules issued by the Securities and Exchange Commission and National Association of Insurance Commissioners.
Reish said those rules are “all less demanding than the DOL rule,” Reish said. “So, it’s a higher standard across the board.”
That’s especially true of recommendations from insurance agents to roll money from a 401(k) plan to an annuity held in an IRA, due to differences in current legal rules versus the Labor Department requirements, according to attorneys and other financial experts.
“We believe insurance agents will be most exposed to this rule, especially those who sell annuities,” Jaret Seiberg, financial services analyst for TD Cowen Washington Research Group, wrote in a recent research note.
Industry groups will likely sue to block the rule from taking effect, he said.  More

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Earnings season is giving analysts plenty to chew on as they learn more about the impact of macro challenges on companies.
Though Wall Street is watching short-term stock moves spurred by quarterly results, the top analysts have their eyes on companies’ long-term prospects.

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.
Netflix
Netflix (NFLX) is this week’s first pick. The streaming giant reported better-than-expected results for the first quarter of 2024. However, investors were disappointed with the company’s decision to stop reporting quarterly subscriber numbers. The company said that it is more focused on the revenue and operation margin metrics.
Following the first-quarter print, BMO Capital analyst Brian Pitz reaffirmed a buy rating on NFLX stock with a price target of $713. The analyst highlighted the company’s addition of 9.3 million subscribers, which handily exceeded BMO’s estimate of 6.2 million and the Street’s expectation of 4.8 million.
Pitz added that Netflix has again proved that it can grow in the U.S., with 2.5 million net additions reported in the first quarter in the U.S. and Canada. He expects continued growth in membership, driven by the ongoing paid sharing efforts and content innovation.   
Explaining his bullish thesis, Pitz said, “$17 billion of content investments for 2024 positions Netflix well for ongoing wallet share gains as linear TV viewership declines.”

Despite Netflix’s growth investments, the analyst expects an improvement in operating margin this year and beyond. He also anticipates that the company will benefit from its focus on advertising, given that $20 billion of linear TV ad dollars are expected to shift to connected TV (CTV)/online globally over the next three years, including $8 billion in the U.S.
Pitz ranks No. 155 among more than 8,700 analysts tracked by TipRanks. His ratings have been profitable 75% of the time, with each delivering an average return of 18.4%. (See Netflix Ownership Structure on TipRanks)
General Motors
Next up is automaker General Motors (GM), which announced impressive first-quarter results and raised its full-year guidance, backed by strong performance in North America.
In reaction to the solid results and outlook, Goldman Sachs analyst Mark Delaney reaffirmed a buy rating on the stock and increased the price target to $52 from $50. The analyst raised his EPS estimates for 2024, 2025 and 2026 to reflect improved margin expectations. 
“We believe that margins can remain resilient, driven both by cost/efficiencies (including executing on the balance of its $2 bn net cost reduction program this year) and relatively firm pricing,” said Delaney.
The analyst considers General Motors’ progress on electric vehicle profitability to be favorable. It is worth noting that GM continues to expect its EV business’ variable profit to be positive in the second half of this year and generate a mid-single-digit earnings before interest and taxes margin in 2025.
Delaney further added that GM’s optimism is based on its current expectations for EV demand and production growth, with the company projecting increasing gains from the battery production tax credit and fixed cost leverage.
Finally, the analyst thinks that GM’s capital allocation will continue to be a tailwind. He anticipates that the company will return higher levels of capital to shareholders beyond 2024, given its aggressive buyback plan with a goal to reduce its outstanding share count to below 1 billion.  
Delaney holds the 256th position among more than 8,700 analysts tracked by TipRanks. His ratings have been successful 61% of the time, with each delivering an average return of 17.5%. (See General Motors Stock Buybacks on TipRanks)
Wingstop
Finally, there is the restaurant chain Wingstop (WING), which operates and franchises in over 2,200 locations worldwide. Following a recent analysis on the U.S. total addressable market, Baird analyst David Tarantino said that there is upside to the company’s long-term target for the domestic market.
WING sees the potential to scale its presence to more than 7,000 global locations over the long term, including over 4,000 restaurants in the U.S. However, Tarantino stated that Baird’s analysis indicates an upside to the company’s domestic target, with room for at least 5,000 U.S. locations.
Further, BMO’s analysis indicates that there is potential for the estimated TAM to move higher over time, given the company’s continued growth in its most penetrated markets in recent years.
“All in, a sizable domestic runway along with a relatively open-ended opportunity in international markets (only 288 locations after 2023) seems likely to support double-digit unit growth for many years to come,” said Tarantino while reiterating a buy rating on WING stock with a price target of $390.
The analyst estimates that Wingstop’s unit-level cash-on-cash returns are already about 70% for U.S. franchised locations and appear well-positioned to increase further this year, driven by higher average unit sales volumes.
Tarantino contends that WING deserves a significant valuation premium due to its solid near-term operating momentum and attractive long-term growth profile. Looking ahead, the analyst is positive about the company’s ability to maintain annual revenue growth in the mid-teens, along with a very capital-efficient growth model. 
Tarantino ranks No. 264 among more than 8,700 analysts tracked by TipRanks. His ratings have been successful 65% of the time, with each delivering an average return of 11.5%. (See Wingstop Stock Charts on TipRanks) More

The New York Stock Exchange welcomes executives and guests from Wolfspeed (NYSE: WOLF), on Oct. 4th, 2021, in celebration of its listing.

Company: Wolfspeed (WOLF)

Business: Wolfspeed is a semiconductor company focused on silicon carbide technologies. The company provides solutions for efficient energy consumption and a sustainable future. Its product families include silicon carbide material and power devices targeted for various applications such as electric vehicles and fast charging, as well as renewable energy and storage.
Stock Market Value: $3.3B ($26.25 per share)

Activist: Jana Partners

Percentage Ownership: n/a
Average Cost: n/a
Activist Commentary: Jana is a very experienced activist investor founded in 2001 by Barry Rosenstein. The firm made its name taking deeply researched activist positions with well-conceived plans for long term value. Rosenstein called his activist strategy “V cubed.” The three “Vs” were” (i) Value: buying at the right price; (ii) Votes: knowing whether you have the votes before commencing a proxy fight; and (iii) Variety of ways to win: having more than one strategy to enhance value and exit an investment. Since 2008, the firm has gradually shifted from that strategy to one which we characterize as the three “Ss” (i) Stock price – buying at the right price; (ii) Strategic activism – sale of company or spinoff of a business; and (iii) Star advisors/nominees – aligning with top industry executives to advise them and take board seats if necessary.

What’s happening

On April 22, Jana sent a letter urging Wolfspeed to engage in a comprehensive review of strategic alternatives, including a sale of the company.

Behind the Scenes

Wolfspeed is the world’s leading producer of silicon carbide, or SiC, and a manufacturer of silicon carbide applications. SiC is an extremely difficult and expensive substrate to manufacture: It requires growing epitaxial layers, baking at up to 4,532 degrees Fahrenheit, and then using ion implantation. This gives Wolfspeed a competitive advantage as the market leader. As a first mover, the company enjoys domination of the global market for SiC, having produced on the order of 90% of the material to ever exist. Due to the increased demand for their materials products and power devices in EVs, motor drives, power supplies, solar and transportation applications, the company sold its LED business in 2021 and its radio frequency business in 2023 to, in part, fund an increase in manufacturing capacity of SiC and vertically integrated manufacturing. The company has announced and is in the process of ramping up two major manufacturing facilities simultaneously in Siler City, N.C. and Marcy, N.Y. The John Palmour Manufacturing Center for Silicon Carbide in North Carolina is a facility dedicated to the production of SiC wafers. The company’s Mohawk Valley project in New York will produce advanced SiC devices like metal oxide semiconductor field-effect transistors, or MOSFETs, which are widely used in electronics and power applications.

Over the past one-, three-, five- and 10-year periods, Wolfspeed has had a negative total shareholder return and has vastly underperformed its peers. The company doesn’t have a demand problem. In fact, demand is quite robust, and the company has a substantial moat in SiC. For example, in 2023, Renesas made a customer deposit of $2 billion to Wolfspeed in order to secure a 10-year supply agreement for SiC wafers. Further, from a current base of nearly $1 billion, the company’s expansion plan supports a $20 billion market opportunity by 2030. Even in the event of an EV slowdown, Wolfspeed is such a small part of the market, that it could easily reach capacity on its facilities.
What Wolfspeed really has is a supply and ambition problem. The rollout of its two new facilities have been plagued by delays, and the company still only projects 20% utilization for the Mohawk Valley plant by the end of fiscal 2024. Even more concerning for investors has been the fact that the company announced in early 2023 plans to construct the world’s largest and most advanced SiC device manufacturing facility in Germany. Expansion is a great idea for a company that is executing well and reaching capacity. Wolfspeed is doing neither right now, and announcing further expansion plans before proving that it can execute scares the market as evidenced by the stock’s performance. Jana would like to see Wolfspeed do the following: (i) prioritize execution at Mohawk Valley and Siler City, (ii) earn an acceptable return on capital, (iii) set realistic targets and (iv) outline a clear plan for capital expenditures to assure that the company will not need to pursue any additional dilutive capital raises. If the company can create a credible forward-looking plan to earning an acceptable return on capital and set realistic targets, then the market will begin to regain confidence and the stock should rebound from its current depressed levels.
Jana also recommends that the board commences a review of strategic alternatives, including a possible sale of the company. However, with a stock price teetering at about $25 per share – it was trading as high as $70 per share in July 2023 – a sale of the company at an acceptable premium is highly unlikely here. The more likely outcome is for management to fix the problems with the company and potentially pursue a future sale or look for an investment from a strategic investor that might be willing to invest at a high multiple to shore up supply. Jana notes that Denso and Mitsubishi Electric recently made a minority investment in Coherent at a multiple of 10 times revenue. Wolfspeed presently trades at less than six times revenue.
This is similar to the issues Jana identified at Freshpet when the firm invested there: supply shortages and difficulty rolling out its U.S. manufacturing operations. At Freshpet, Jana also made operational and capital allocation recommendations in addition to reviewing a sale of the company. Jana ultimately received board representation and a sale never happened as the operational fixes worked. Freshpet’s stock closed at $106.36 on Friday, up from $45.37 in September 2022. As is customary for Jana, at Freshpet, the investor launched its activist campaign with a team of experienced industry executives ready to be board nominees, if necessary. Here, there has been no such mention of a “Jana Dream Team,” but it is a little too early for that. The director nomination window does not open until June 25 and closes on July 25, at which time we will have more clarity on which road this campaign will take.
Ken Squire is the founder and president of 13D Monitor, an institutional research service on shareholder activism, and the founder and portfolio manager of the 13D Activist Fund, a mutual fund that invests in a portfolio of activist 13D investments.

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As Democrats and Republicans vie for power in November, experts have said Social Security is on the ballot.
With Social Security’s trust funds set to run out in the next decade, benefit cuts are inevitable without congressional action.
As lawmakers weigh that dilemma, they are also poised to define the program’s future role in American’s lives.

Demonstrators attend a rally asking Rep. Kean to “Stop MAGA Cuts! Protect Social Security!” on Feb. 24, 2023 in Bridgewater, New Jersey.
Dave Kotinsky | Getty Images Entertainment | Getty Images

Voters who show up at the polls this November may not just be choosing among Republicans, Democrats and third-party tickets — but also casting a vote on the future of Social Security.
Social Security is expected to pay $1.5 trillion in benefits to an average of almost 68 million Americans per month in 2024.

More than half of peak baby boomers — the largest cohort expected to turn 65 by 2030 — are expected to rely primarily on Social Security for income in retirement.
Meanwhile, Social Security’s trust funds are projected to run out in the next decade, which will prompt an across-the-board benefit cut of at least 20% if no changes happen sooner. As Congress weighs that dilemma, they will also decide Social Security’s future role in Americans’ lives.
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Democratic lawmakers like Rep. John Larson, D-Conn., who is running for reelection this year, say today’s benefits are not enough.
“Nobody’s getting wealthy on Social Security,” Larson said in a recent interview with CNBC, noting that more than 5 million Americans receive monthly benefit checks that are below the federal poverty level.

“It is the very sustenance that 40% of all Americans need just to get by, and it hasn’t been adjusted in more than 50 years,” Larson said.

‘Why hasn’t Congress voted?’

In 1983, when the last major Social Security reforms were enacted, there were no benefit enhancements, Larson argued. Among the changes put in place at that time was a gradual increase in the retirement age, taxes on benefit income and reduced benefits for public employees with pensions.
For years, Larson has championed a bill — Social Security 2100 — that aims to increase benefits for all beneficiaries by lifting the payroll tax cap for taxpayers earning over $400,000. Today, annual earnings of up to $168,600 are subject to a 6.2% payroll tax toward Social Security paid by both workers and employers. Larson’s plan also calls for closing loopholes that allow wealthy taxpayers to avoid paying Social Security taxes on other income.
Larson said the public is well aware that Social Security benefits are theirs and they’ve paid for them. Yet the same question comes up again and again: “Why hasn’t Congress voted?”

Rep. John Larson, D-Conn., speaks during an event to introduce legislation called the Social Security 2100 Act. which would increase increase benefits and strengthen the fund, on Capitol Hill on Jan. 30, 2019.
Mark Wilson | Getty Images News | Getty Images

The latest version of Larson’s bill has 184 Democratic co-sponsors yet has never been brought to the House floor for a vote.
Another bill, the Social Security Fairness Act, has even broader support, with 318 co-sponsors from both sides of the aisle, yet that also has yet to be put up for a vote. That proposal tackles just two changes also included in Larson’s bill — repealing the Windfall Elimination Provision and Government Pension Offset rules that limit Social Security benefit income for individuals who receive other benefits like pensions from a state or local government.

Retirement age may be pushed higher

Meanwhile, the Republican Study Committee’s budget, comprising proposals from 192 Republican House members, has suggested changes to Social Security, like raising the retirement age, as it seeks to cut federal spending across the board.
Democrats have called out the more than $1.5 trillion in cuts to Social Security that the Republicans’ proposal may entail.
By raising the retirement age for everyone 59 and younger, Budget Committee Democrats estimate that 257 million people would have to work longer.  

The Republican budget proposal has prompted fears that the party could move to enact those changes through a closed-door commission, Nancy Altman, president of advocacy organization Social Security Works, testified before the House Ways and Means Committee last week.
In response, Rep. Drew Ferguson, R-Georgia, who serves as chairman of the House Ways and Means Subcommittee on Social Security, said the committee would not be voting on the Republican budget proposal.
“I have said many times that the only way that this gets solved is in a bipartisan open forum,” said Ferguson during the hearing.

Path to bipartisan compromise uncertain

But how a bipartisan effort should proceed is up for debate.
Larson hopes to bring his Social Security 2100 proposal to the House floor for a vote, betting that some Republicans may come around and back making benefits more generous.
The extra money sent to the nation’s seniors would be spent in their districts, he argued. Moreover, the tax increases would require wealthy individuals to pay what every other working American is already contributing to Social Security, he said.

During last week’s hearing, Rep. Jodey Arrington, R-Texas, said that while he respects Larson’s passion, he still expects it will be necessary for lawmakers to agree on some combination of tax increases and benefit cuts that will affect future beneficiaries.
Experts including Charles Blahous, senior research strategist at the Mercatus Center at George Mason University, agreed.
“The size of the shortfall now is so huge, and so far beyond anything that lawmakers have successfully closed before, the notion that either party can ram through its preferred solution is fanciful,” Blahous said.
Benefits are regularly increased, Blahous argues, through changes to the initial benefit formula and cost-of-living adjustments.

Larson, for his part, has vowed to “never give up, never relent,” when it comes to pushing for his proposal.
Social Security advocates argue that those changes are what people want.
“If you expand Social Security’s benefits … and you pay for it by requiring the uber wealthy to pay their fair share, you will receive widespread praise and the gratitude of the nation,” Altman told members of the House Ways and Means Committee last week. More

Homebuyers are paying attention to new construction due to more supply and incentives. 
About 693,000 new single-family houses were sold in March, up 8.3% from a year ago.
The median sales price was $430,700, according to the latest report by the U.S. Census Bureau.

While the spring housing market has been plagued with low supply, high prices and spiking interest rates, would-be homebuyers are focusing on new construction. 
The reason? New homes have more incentives and availability than previously owned ones.

“There’s more opportunity in new construction,” said Nicole Bachaud, a senior economist at Zillow Group.
About 693,000 new single-family houses were sold in March, up 8.3% from a year ago, according to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development. The median sales price was $430,700, the agencies found.
Meanwhile, sales for previously owned homes dropped by 3.7% from March 2023, the National Association of Realtors found.
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Many areas in the U.S. face a low inventory of existing homes as the mortgage rate lock-in effect, or the golden handcuff, keeps “existing owners from becoming sellers,” Bachaud explained.

With 30-year fixed-rate mortgage rates sitting above 7%, homeowners who bought at much lower rates in recent years don’t like the prospect of trading in their low rate for a higher one.

Meanwhile, buyers are turning to builders, who are typically more flexible with pricing. Homebuilders offer buyers incentives like rate buy-downs and price cuts. Homebuilders can even pay for closing costs, experts say.
“This has been helping incentivize some potential buyers to turn to the new home sales market,” said Matthew Walsh, assistant director and economist at Moody’s Analytics.

New build price gap narrows

While new builds are still sold for slightly more than existing homes, the price gap has significantly narrowed since the fall.
“Prices are much closer to parity than during any point in the last three decades,” Walsh said.

Over the last six months, the median price for a new home is only about 4% higher than the median price of an existing house. That level is significantly lower than before the pandemic when the median price of a new home was more than 40% higher than an existing house, Walsh explained.

“On the existing side, you have such a tight supply for sale,” he said. “But on the new homes side, you have builders prioritizing transaction volumes over margins.”
In the past, price-sensitive buyers with tighter budgets were limited to the existing homes market. Nowadays, buyers who remain looking might have more options on the new home sales side. More

This season, more than 140,000 taxpayers successfully filed returns using IRS Direct File, a free tax filing pilot from the IRS.
The program fully opened for certain taxpayers in 12 states in early March and saved filers an estimated $5.6 million in tax preparation fees for federal returns.
However, the IRS has not made a decision about the future of Direct File.

IRS Commissioner Danny Werfel testifies during the Senate Finance Committee hearing on the fiscal 2024 IRS budget and the IRS’ 2023 filing season, in the Dirksen Building in Washington, D.C., on April 19, 2023.
Tom Williams | CQ-Roll Call, Inc. | Getty Images

This season, more than 140,000 taxpayers successfully filed returns using IRS Direct File, a free tax filing pilot from the IRS, according to the U.S. Department of the Treasury and the IRS.
The program fully opened for certain taxpayers in 12 states in early March and saved filers an estimated $5.6 million in tax preparation fees for federal returns, IRS Commissioner Danny Werfel told reporters on a press call.

Direct File surveyed more than 15,000 users, around 90% of whom rated their experience as “excellent,” the agencies reported.
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“We have not made a decision about the future of Direct File,” Werfel said, noting the agency still needs to analyze data and get feedback from a “wide variety of stakeholders.”
The IRS plans to release a more detailed report about the Direct File pilot “in the coming days,” he added.

How Direct File could be expanded

The Direct File pilot included Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington and Wyoming.

The pilot only accepted Form W-2 wages, Social Security retirement income, unemployment earnings and interest of $1,500 or less. This excluded filers with contract income reported via Form 1099-NEC, gig economy workers and self-employed filers.
Filers had to claim the standard deduction, which was $13,850 for single filers and $27,700 for married couples filing jointly for 2023. More

The warming planet is proving costly for many Americans.
U.S. weather and climate disasters cost more than $600 billion between 2018 and 2022 — a record figure, according to the U.S. Department of Treasury.
In a new series, CNBC will examine what climate change means for your money, from retirement savings to insurance costs to career outlook.

A man stands outside his flooded home after heavy rain in Fort Lauderdale, Florida, on April 13, 2023.
Chandan Khanna | AFP | Getty Images

The warming planet is already proving expensive.
U.S. weather and climate disasters cost more than $617 billion between 2018 and 2022 — a record figure, according to the U.S. Department of the Treasury. The October report found that around 13% of Americans reported economic hardship over the prior year due to climate change.

More people are likely to experience financial pain as temperatures climb and extreme weather events become more common, experts say.
With each additional degree of warming, the U.S. is expected to take a bigger economic hit, the Fifth National Climate Assessment warns. For example, an increase in global temperatures by 2°F is anticipated to double the financial impact induced by 1°F of warming.
Climate change could cost Americans born in 2024 nearly $500,000, due to higher taxes and pricier housing and food, among many other factors, ICF, a consulting firm, recently found in a report commissioned by Consumer Reports.
“The basic building blocks of our financial lives — housing, insurance, social welfare programs, taxes — will become more expensive or less valuable due to climate change, with lots of consequences for people’s wallets,” said Andrew Rumbach, a senior fellow at the Urban Institute.

‘Climateflation’ is already affecting prices

‘Household wealth is tied to housing’ — and that’s risky

A destroyed house following Hurricane Ian in Fort Myers Beach, Florida, US, on Tuesday, Oct. 4, 2022. 
Eva Marie Uzcategui | Bloomberg | Getty Images

Some of the biggest financial risks of climate change come into play with housing, Wagner said.
“Most household wealth is tied to housing, which [is] directly affected by everything from floods to droughts to wildfires,” he said.
At least 3 million Americans already report being displaced by a disaster, one survey by the U.S. Census Bureau found.
“That is tremendously costly for people and businesses,” Urban Institute’s Rumbach said.
Insurance companies are raising their monthly premiums on homeowner policies and rolling back coverage in areas prone to certain disasters to “adjust to climate risk,” he said.
“Florida, Louisiana and California are all facing severe challenges, and I expect these issues will spread to other states in the years ahead,” Rumbach said.

Globally, natural catastrophes cost insurers $108 billion in 2023, which is well above the annual average over the past 10 years of $89 billion, according to Swiss Re Institute. The institute estimates these losses could double within the next decade, as temperatures rise and storms intensify.
These costs are likely to be passed on to consumers, Rumbach said.
Currently, only around 40% of the expenses from natural catastrophes are covered by insurers, meaning the rest falls on governments and individuals, Swiss Re Institute found.

‘Clear interactions’ between climate and health

The warming planet could result in larger medical bills for many Americans.
Health-care costs due to fossil fuel pollution and climate change already exceed $800 billion a year in the U.S., a report by the Natural Resources Defense Council found.
Some of these expenses are a direct result of individual, dangerous disasters.
For example, Hurricane Sandy, which pounded the mid-Atlantic region in 2012, led to more than 12,000 hospital admissions, emergency room visits and outpatient encounters.

Damage is seen in the Breezy Point area of Queens in New York on October 30, 2012 after fire destroyed about 80 homes as a result of Hurricane Sandy which hit the area on October 29.
Stan Honda | AFP | Getty Images

Other health effects of climate change reflect more widespread shifts in global conditions.
“There are clear interactions between heat waves and health conditions,” said Charles Driscoll, a professor at Syracuse University who studies climate change. “For example, heat waves exacerbate cardiovascular events.”
Air pollution, for its part, is associated with respiratory diseases, cancer and nervous system disorders, Driscoll added.

Knock-on effects for taxes, wages, retirement savings

Federal, local and state governments will likely raise taxes as they deal with the higher costs of a hotter planet and more demand for their services.
At the same time, workers may see their wages shrink as businesses and communities are disrupted by storms and heat waves. Within seven years, up to 3.8% of total working hours around the world could be lost due to higher temperatures, according to the International Labour Organization. That amounts to roughly 136 million full-time jobs.
More than 65 million adult workers in the U.S. are in occupations endangered by climate-related health risks, KFF, formerly the Kaiser Family Foundation, estimated in a July 2023 analysis. These include fields with increased exposure to heat and decreased air quality, including construction and agricultural jobs.
ICF, the consulting firm, warns that global warming could put people’s retirement savings in jeopardy, too.
“Climate change is expected to decrease retirement income by impacting the value of corporate stocks held in retirement portfolios through higher costs to companies, declines in corporate productivity, damages to physical assets and supply chains, reduced resource availability and new costs associated with transitioning to low-carbon solutions,” it wrote.

A new economy in a hotter planet

The Woolsy fire burns a home near Malibu Lake in Malibu, Calif., Friday, Nov. 9, 2018. 
Ringo H.W. Chiu | AP

The workforce and education system are changing in anticipation of a hotter planet.
People are switching careers to leave fields threatened by global warming, such as gas and coal, while a small number of colleges are offering a new major: climate change studies.
Schools that offer such majors “are reporting a big increase” in demand, said higher education expert Mark Kantrowitz.
Meanwhile, the number of jobs in climate science is expected to grow by 6% between 2022 and 2032, compared to an average 3% for all occupations, the Bureau of Labor Statistics found.
“Slowing down and stopping climate change is a challenge, but also an opportunity for tremendous innovation and economic growth,” Urban Institute’s Rumbach said.

Climate change leads to droughts, which lead to crop failures, which cause food price spikes.

Gernot Wagner
a climate economist at Columbia Business School

In this new series, CNBC will examine what climate change means for your money, from retirement savings to insurance costs to career outlook.
We start with a story by reporter Greg Iacurci on how people continue to build in and move to Miami, despite the city being, in the words of one expert, “ground zero” for global warming. This dynamic is playing out across the country, and could worsen the financial pain ahead.
Has climate change left you with bigger or new bills? Tell us about your experience by emailing me at annie.nova@nbcuni.com. More