Investing

Gabriel Quezada, 17, is on track to complete one to two years of college coursework by the time he finishes high school in June.
The California teen attends an “early college” program, which allows students to take undergraduate-level classes, often through a local community college, at little to no cost.

Gabriel Quezada, 17, is a senior at Early College High School in Costa Mesa, California.
Gabriel Quezada

As college costs soar and enrollment falters, there’s an alternative to a pricey four-year degree that’s been largely under the radar, until recently.
But Gabriel Quezada, 17, was reluctant to try it.

His father, Humberto Quezada, said he first heard about the Early College High School in Costa Mesa, California, when Gabriel was in third grade. But when Gabriel got older, it was hard to convince him to go. So they made a deal: Gabriel would start as a freshman, but if he didn’t like it, he could switch to his local public school.
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“Early college” programs are a type of dual enrollment that allows students to complete college-level coursework while they are still in high school.
Ultimately, Gabriel stuck it out. This June, he will graduate with his high school diploma and an associate degree in business under his belt. “That’s 60 or so credits done,” he said.
Already, he has been accepted to the University of California, Los Angeles and half a dozen other schools, but is still waiting on several scholarship opportunities, including one from the Angels Baseball Foundation, which would cover all four years of college. “I am hoping I won’t have to take out many loans or any loans at all,” he said.

Completing some coursework at a community college and then transferring to a four-year school is a proven pathway to getting a degree for significantly less money.
After enrollment in two-year colleges nosedived during the pandemic, a number of students are now catching on, according to a new report by the National Student Clearinghouse Research Center, which showed a jump in dual enrollment.
“It’s encouraging to see this second straight year of growth in spring freshmen and dual-enrolled high school students,” said Doug Shapiro, the research center’s executive director.

How ‘early college’ programs work

Unlike Advanced Placement, another program in which high school students take courses and exams that could earn them college credit, dual enrollment is a state-run program that often works in partnership with a local community college.
These programs are not restricted to high school students on a specific — and often accelerated — academic track, as many AP classes are.
Not all students graduate high school with an associate degree, but most finish with at least one year of college credit, which gives them the option to enter college as a transfer student.
At least 35 states have policies that guarantee that students with an associate degree can transfer to a four-year state school as a junior.

Arrows pointing outwards

That shaves two years off the cost of a bachelor’s degree, effectively cutting the tab in half, as well as the student loan debt.
Early college students are also more likely to enroll in college and earn a degree compared with their peers who were not enrolled in early college programs, according to one study by the American Institutes for Research.
“Our research shows that early colleges are an effective way to increase rates of college-going and college completion, and that the return on the investment in these programs is positive for both the student and society at large,” said Kristina Zeiser, AIR’s principal researcher.
Although there are up to 900 early college programs nationwide, according to Zeiser, not that many people know about them. 

‘A very smart way to start your higher education’

“The culture is different from your average high school,” said David Martinez, principal of the Early College High School.
The high school is a Title I school in the Newport-Mesa Unified School District of Orange County, California, which means there is a high percentage of low-income students. Funding is provided by the district and the state. “Parents don’t pay a dime,” Martinez said.
Students take a mix of high school- and college-level courses, shortening the time it takes to complete a high school diploma and one to two years of college coursework.
“Families need a 21st century approach to prepare their kids for college, and this is one of the ways to do it,” Martinez said.

Families need a 21st century approach to prepare their kids for college, and this is one of the ways to do it.

David Martinez
principal of Early College High School, Costa Mesa, California

Nearly two-thirds of community college dual enrollment students nationally were from low- or middle-income families, according to an earlier study from Columbia University’s Teachers College.
Of those students, 88% continued on to college after high school, and most earned a degree within six years.
“It’s a very smart way to start your higher education,” said Martha Parham, senior vice president of public relations at the American Association of Community Colleges.
Over four years, early college programs cost about $3,800 more per student than traditional high school, according to another study by AIR.
However, the estimated return on that investment is nearly $34,000 in increased lifetime earnings.
“Getting an associate’s degree for free can really put you on a path where everything seems more feasible,” Zeiser said.
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A logo of Meta Platforms Inc. is seen at its booth, at the Viva Technology conference dedicated to innovation and startups, at Porte de Versailles exhibition center in Paris, France June 17, 2022.
Benoit Tessier | Reuters

Signs of a potential slowdown in the jobs market are emerging and triggering worries about an impending recession, but investors would be wise to ignore the noise.
Instead, investors should keep an eye out for stocks with strong fundamentals and robust growth potential — two characteristics that can get them through a rocky patch for the market.

related investing news

an hour ago

To that effect, here are five stocks chosen by Wall Street’s top pros, according to TipRanks, a platform that ranks analysts based on their past performance. 

Meta Platforms 

Weakness in digital ad spending due to macro pressures has hit social media giant Meta Platforms (META) over the recent quarters. Nonetheless, the company is reducing its workforce, canceling lower-priority projects and curtailing non-headcount-related expenses to improve its profitability.  
While Meta is calling 2023 the “Year of Efficiency,” JPMorgan analyst Doug Anmuth says that the company is “building the critical muscle for financial discipline over the long term.” (See Meta Platforms Financial Statements on TipRanks) 
Anmuth expects Meta’s revenue to return to double-digit growth in the second half of 2023 and 2024, fueled by several key drivers like artificial intelligence and product-driven improvements to the ad stack following the implementation of Apple’s App Tracking Transparency feature, the rise in the engagement and monetization of Reels, and the solid rise in click-to-message ads.   
“While Meta shares have more than doubled off the early November lows, we still think there’s meaningful upside ahead driven by accelerating revenue growth, continued cost efficiencies, and still attractive valuation,” the analyst said.  

Based on his bullish investment thesis, Anmuth raised his December 2023 price target for META stock to $270 from $225 and reiterated a buy rating. He is ranked No. 157 among the more than 8,300 analysts tracked by TipRanks. His ratings have been profitable 58% of the time, with each rating delivering an average return of 14.5%.  

SoFi Technologies 

Next on our list is fintech firm SoFi Technologies (SOFI), which offers digital financial services to over 5.2 million members. SoFi recently announced the acquisition of fintech mortgage lender Wyndham Capital Mortgage. The acquisition is expected to drive SoFi’s mortgage growth and operational efficiencies and broaden its mortgage product offerings.  
Jefferies analyst John Hecht, who ranks No. 366 among more than 8,300 analysts tracked by TipRanks, expects the Wyndham acquisition to help SoFi accelerate its mortgage originations volume “at the same time as the SOFI bank continues to grow deposits at an accelerated pace of 7.3x in 2022.” Note that SoFi’s mortgage segment accounted for about 4% of total originations in the fourth quarter of 2022.      
The analyst also highlighted that the Wyndham acquisition would “minimize” SoFi’s dependence on third-party partners and processes, thus driving cost savings over the long term.  
Hecht reiterated a buy rating on the stock with a price target of $8 saying, “We view the transaction favorably as it is strategic and will enhance SOFI’s mortgage segment, while taking advantage of the current Fintech valuation environment as an opportunity to build into the next mtg. cycle.” 
Hecht has a success rate of 59%, and each of his ratings has returned an average of 9.2%. (See SoFi Insider Trading Activity on TipRanks) 

PVH 

Apparel company PVH (PVH), which owns popular brands like Calvin Klein and Tommy Hilfiger, delivered better-than-expected results for the fourth quarter of fiscal 2022. The company is optimistic about the road ahead, supported by its PVH+ Plan, a multi-year direct-to-consumer and digitally-led growth strategy that aims to further strengthen the Calvin Klein and Tommy Hilfiger brands.  
Guggenheim analyst Robert Drbul feels that the PVH+ Plan would drive favorable earnings revisions and multiple expansion. The analyst sees “an attractive risk reward profile” in PVH stock based on the company’s earnings growth potential and current valuation.  
“We believe in Tommy and Calvin brand strength globally and ongoing margin initiatives at the company, which we anticipate will position PVH favorably as the world continues to reopen and recover,” the analyst said.   
Drbul raised his price target for PVH stock to $110 from $105 and reiterated a buy rating based on the company’s streamlining efforts, revenue growth potential, and margin expansion possibilities. 
Drbul holds the 364th position among the more than 8,300 analysts followed by TipRanks. His ratings have been profitable 62% of the time, with each rating delivering an average return of 8%. (See PVH Stock Chart on TipRanks)  

Walmart 

Drbul is also bullish on retail giant Walmart (WMT). After attending the company’s investment community meeting in Tampa, Florida, the analyst reaffirmed a buy rating on Walmart with a price target of $165.  
Drbul said that Walmart is well-positioned in the current retail backdrop and has one of the strongest leadership teams, referring mainly to its CEO Doug McMillon, whom he called “one of the best visionaries.” Despite the ongoing uncertainty, Drbul expects WMT shares to touch new highs as the company continues to execute its growth strategy. (See Walmart Insider Trading Activity on TipRanks) 
The analyst highlighted the significant progress that Walmart has made on the e-commerce front and its focus on technology. E-commerce now contributes to $82 billion or 14% of Walmart’s overall sales, up from $25 billion or 5% of sales five years ago. Walmart sees an opportunity for its e-commerce business to reach $100 billion in the near future.    
“Combining this meeting’s top-line objectives and strategies, along with its relentless tech-enabled focus, Walmart is executing several initiatives that stand out as margin-enhancing, including the focus on automation, and its market fulfillment initiatives that further utilize technology and robotics,” said Drbul.  
Overall, he is upbeat about Walmart’s long-term strategy, including its efforts to enhance the omnichannel shopping experience and build a more diversified profit base that’s “led by a growing marketplace and fulfillment services, advertising, financial services, data monetization, and its healthcare offering.” 

Airbnb  

Airbnb (ABNB), an online marketplace for short-term rentals, ended 2022 with market-beating fourth-quarter results. The company is benefiting from pent-up travel demand despite persistent macro pressures.  
Recently, Tigress Financial Partners’ analyst Ivan Feinseth increased his price target for ABNB stock to $185 from $160 and maintained a buy rating. The analyst acknowledged that the company continues to benefit from solid travel demand and the shift in consumer preference to “alternative, better-value accommodations.”  
“ABNB remains at the forefront of how consumers prefer to travel by offering a broad variance of accommodations from budget to extravagant and meeting the needs for a broad range of stay duration while benefiting significantly from ongoing hybrid work and travel trends,” said Feinseth.  
He expects a notable rise in Airbnb’s return on capital over time, boosted by the booking fee income of its asset-light business model. The analyst listed several drivers of the company’s future growth, including the ability to enhance capacity by adding new hosts, investment in new technologies, international expansion, cobranded buildings and growing partnerships with travel service providers.  
Feinseth ranks No. 154 among the more than 8,300 analysts tracked by TipRanks. Additionally, 62% of his ratings have been profitable, with an average return of 12%. (See Airbnb Hedge Fund Trading Activity on TipRanks)   More

Realpeoplegroup | E+ | Getty Images

Company: OCI NV (OCI-NL)

Business: OCI produces and distributes hydrogen-based and natural gas-based products to agricultural, transportation, and industrial customers. It operates through the following segments: Methanol U.S., Methanol Europe, Nitrogen U.S., Nitrogen Europe and Fertiglobe. The company offers anhydrous ammonia, granular urea, urea ammonium nitrate solution, calcium ammonium nitrate, ammonium sulphate, aqueous ammonia, nitric acid, urea solution, bio-methanol, methanol, melamine and diesel exhaust fluid, as well as other nitrogen products. OCI also owns and operates an ammonia terminal at the port of Rotterdam. The company has operations in Europe, the Americas, the Middle East, Africa, Asia and Oceania.
Stock Market Value: ~6.3 billion Euros (29.93 Euros per share), according to FactSet

Activist: Inclusive Capital Partners

Percentage Ownership:  ~5.0%
Average Cost: n/a
Activist Commentary: Inclusive Capital Partners is a San Francisco-based investment firm which partners with companies that enable solutions to address environmental and social problems. Founded in 2020 by Jeff Ubben, who previously founded ValueAct Capital in 2000, Inclusive seeks to leverage capitalism and governance in pursuit of a healthy planet and the health of its inhabitants while creating long-term value for shareholders. As a pioneering activist ESG (“AESG”) investor, Inclusive seeks long-term shareholder value through active partnership with companies whose core businesses contribute solutions to this pursuit. The firm’s primary focus is on environmental and social value creation, which leads to shareholder value creation.

What’s happening?

Inclusive sent a letter to Nassef Sawiris, executive chairman of OCI, expressing the firm’s belief that OCI is worth approximately 90% more than its current stock price and calling on the board to explore strategic options to unlock the company’s value.

Behind the scenes

The majority of OCI’s business relates to fertilizer for agricultural purposes and other nitrogen products with approximately 12% of revenue generated through methanol fuel products. This business does $9.7 billion in revenue and $3.6 billion in earnings before interest, taxes, depreciation and amortization. However, the opportunity here is what the future brings.

OCI is presently embarking on a $1 billion development of the largest blue ammonia facility in the United States located in Beaumont, Texas. It will be a state-of-the-art facility at the forefront of blue ammonia production and is expected to come online in 2025 and produce 1.1 million tons of blue ammonia annually. This facility will combine nitrogen with blue hydrogen to create blue ammonia. It is considered “blue” ammonia because the carbon emissions produced from the hydrogen production process are captured and stored. Blue ammonia has a number of product applications in OCI’s existing product lines as a sustainable and low carbon input for fertilizer, fuel and feed. Moreover, liquefied blue ammonia can be sold domestically or shipped to OCI’s ammonia import terminal in the port of Rotterdam, as they see European demand for hydrogen and ammonia as a major growth area fueled by the energy transition and decarbonization.
Because of the recently enacted Inflation Reduction Act in the U.S. and carbon taxes in Europe, the production of blue ammonia will have several financial benefits. First, the IRA increased the tax credit for each ton of carbon stored to $85 per ton, up from $50. OCI’s plan will produce 1.1 million tons of ammonia that generates 1.7 million tons of carbon, virtually all of which is captured and stored. Second, this blue ammonia will be sold through an ammonia terminal at the port of Rotterdam that OCI owns and operates. Because it is low-carbon fuel, it will not be subject to the $100 per ton carbon tax on competing products, allowing OCI to sell at a market price and reap an additional $100 per ton of margin. This is expected to lead to $350 million of annual EBITDA from the $1 billion of capex required. Moreover, ammonia is easier to ship than hydrogen because it can be transported at a temperature of  -33°C versus -253°C for hydrogen. For these reasons, blue ammonia can serve as an important source of decarbonized hydrogen, is poised to be a large part of a green energy future, and it has several secular tailwinds.
Inclusive believes that OCI’s methanol business, combined with its low carbon ammonia project in Beaumont, has significant strategic value and could generate interest from large energy players looking to accelerate their energy transitions. As a reference, Inclusive cited BP’s acquisition of biogas producer Archaea Energy for $4.1 billion (29x EV/’22 EBITDA) in December 2022; Chevron’s acquisition of Renewable Energy Group for $3.1 billion in June 2022; and Shell’s $2 billion acquisition of Nature Energy Biogas, which was announced last November and completed in February. Additionally, Inclusive noted that OCI’s modern, strategically located Iowa Fertilizer Company plant would be of great value to pure-play fertilizer companies, such as Nutrien, seeking nitrogen production in the U.S. corn belt. Further, Inclusive noted that Fertiglobe’s successful IPO showed the value within OCI’s portfolio, with OCI’s stake in Fertiglobe worth nearly its entire market capitalization in the past year. It is important to note that Inclusive’s Jeff Ubben sits on the board of Fertiglobe with Nassef Sawiris, executive chairman of OCI.
Ubben has always liked companies that he thought were misunderstood by the market, and Inclusive always has an impact element as a primary investment thesis. In this case, generally capex in a commodity business is viewed negatively by investors. But for all of the reasons mentioned above it could very well be a huge positive for not only OCI shareholders, but also the environment.
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. More

Smart Tax Planning

The IRS released a plan for the nearly $80 billion in agency funding authorized by Congress, including expected boosts for customer service, technology and enforcement.
The plan also aims to close the tax gap, with an initial focus on tax returns for wealthy families, large corporations and complex partnerships, IRS Commissioner Danny Werfel said.

IRS Commissioner Daniel Werfel testifies before a Senate Finance Committee hearing on Feb. 15, 2023.
Kevin Lamarque | Reuters

The IRS on Thursday released a plan for the nearly $80 billion in agency funding enacted through the Inflation Reduction Act in August — including expected boosts for customer service, technology and enforcement.
“Now that we have long-term funding, the IRS has an opportunity to transform our operations and provide the service that people deserve,” IRS Commissioner Danny Werfel told reporters on a press call.

Aligned with priorities outlined by Treasury Secretary Janet Yellen in August, the plan aims to improve several areas of taxpayer service, including a five-year timeline to digitize the filing process and the ability to respond to all IRS notices online. 

More from Smart Tax Planning:

Here’s a look at more tax-planning news.

The IRS has already started to deploy part of the funds earmarked for customer service by hiring 5,000 phone assistors before the 2023 filing season, and taxpayers have been able to respond to certain IRS notices online since February.
Currently, the agency is answering 80% to 90% of calls, compared with only 17% during the fiscal year 2022, according to Werfel.
Similarly, phone wait times have dropped to an average of four minutes compared with 27 minutes at the same point last year. “This additional staffing made an immediate difference,” he said.

Plans to boost technology

The plan also seeks to improve outdated technology. IRS tools will help taxpayers identify their mistakes before filing returns, and upgrades may help resolve filers’ errors more quickly.

“That’s a departure from the organization’s traditions,” said Mark Everson, a former IRS commissioner and current vice chairman at Alliantgroup. “It’s also a recognition of how badly things got out of whack during the pandemic.”

Further, the agency aims to eliminate its paper backlog within five years by moving to a “fully digital correspondence process,” Deputy Treasury Secretary Wally Adeyemo said during the call.

IRS to focus on ‘wealthy individuals’

The agency’s plan also aims to reduce the budget deficit by closing the tax gap, with an initial focus on tax returns for wealthy families, large corporations and complex partnerships, Werfel said.
Boosting the experienced staff needed for more complicated audits will take time, Everson said.
“The IRS has no plans to increase the most current audit rate we have for households making less than $400,000,” he said, noting the audit rate for filers below these thresholds “won’t come close” to reaching or exceeding historic averages.

Questions remain about higher audit rates among Black Americans, which Werfel committed to investigating during his confirmation hearing.
“That strikes me as a much more challenging question to resolve than the $400,000 threshold,” said Janet Holtzblatt, a senior fellow at the Urban-Brookings Tax Policy Center, noting there are several unanswered questions for the IRS to explore.
The earned income tax credit, a tax break targeted at low- to moderate-income filers, is a contributing factor to the higher audit rate among Black Americans, research shows. More

Women & Wealth: A CNBC Your Money Event April 11 – Register at CNBCevents.com

Don’t let stock market volatility and talk of a possible recession dissuade you from trying to build wealth and ensure a comfortable retirement, financial advisors say.
How you approach building wealth and a retirement nest egg depends on your age, of course.
Here’s a decade-by-decade look at how to get started, or keep going, with wealth building.

Carlos Barquero | Moment | Getty Images

Stock market volatility and talk about a possible recession may have people anxious about investing.
However, that shouldn’t dissuade anyone from trying to build wealth, whether you are just starting out in your career, are middle-aged or are nearing retirement.

“We can’t predict the future, but by thoughtful spending and saving throughout your lifespan, you can create financial peace and resiliency for whatever the world and markets throw your way,” said certified financial planner Carolyn McClanahan, an M.D. and founder and director of financial planning at Life Planning Partners in Jacksonville, Florida.
Of course, how you go about building wealth depends on your age. Here is a decade-by-decade guide to growing your money.

Starting out in your 20s

The first thing to do is make sure you have enough cash stashed away for an emergency. If your job is secure, set a savings goal of three to six months’ worth of expenses. If it is insecure, such as a commission-based sales job, strive for six to 12 months, said McClanahan, a member of CNBC’s Advisor Council.
You should also start planning for retirement. If your employer has a 401(k) plan and offers a match, contribute enough to get that match.
After that, open a Roth individual retirement account, if your income qualifies, McClanahan said. You can contribute a maximum of $6,500 in 2023. Then, if you still have money to invest after maxing out your Roth, contribute more to your 401(k) plan, she said. In 2023, you can put as much as $22,500 into the account.

As part of its National Financial Literacy Month efforts, CNBC will be featuring stories throughout the month dedicated to helping people manage, grow and protect their money so they can truly live ambitiously.

When it comes to the balance of your portfolio, you can have more equities than fixed income since you have more time to recover from any down markets.
In addition, make sure you are insured appropriately, especially with auto and disability insurance, since one accident or health issue could wipe out any savings you may have.
This is also a good time to take on a side hustle, said Winnie Sun, co-founder and managing director of Sun Group Wealth Partners, based in Irvine, California, and a member of CNBC’s Advisor Council.
“It may not be generating a lot of income, but it is something they can create more income from,” she said.

In your 30s

As your career grows and you begin to earn a higher salary, don’t fall victim to the “lifestyle creep” and start spending that newfound money, warned CFP Matt Aaron, founder of Washington, D.C.-based Lux Wealth Planning, an affiliate of Northwestern Mutual.
Instead, put that extra money into your 401(k) plan.
The rule of thumb is to put aside about 10% of your income, if you start young, but a financial professional can help you work out the numbers, he said.
After you max out those contributions, start investing outside of your retirement account. Your portfolio should be diversified, with a mix of stocks and bonds.

You may also be thinking about buying a house, getting married or having children.
CFP Elaine King strongly recommends considering a home purchase in your 30s. It’s OK to start small, she said.
“It doesn’t need to be a big house, just something that in your future can be your rental income to diversify your assets,” said King, founder of Family and Money Matters in North Miami, Florida.
When you start saving for those events, don’t invest in stocks — unless your time horizon is longer than five years, McClanahan advised.

Instead, she recommends a money market account. These days, money market fund rates have soared as the U.S. Federal Reserve hiked interest rates. The average yield on Crane Data’s list of the 100 largest taxable money funds is 4.62%. Similarly, certificates of deposits, or CDs, have also seen their interest rates rise.
If anyone is counting on your income, such as a spouse or child, it’s also time to buy life insurance. For those with kids, you may want to start putting money aside for college.

The busy 40s

Maskot | Maskot | Getty Images

You may now be in your peak earning years and may also be raising children.
If possible, try to start a college savings account if you haven’t done so already. If you can’t afford to, don’t divert savings from your retirement account.
“You can borrow for college, but you can’t borrow for retirement,” McClanahan said.
For those who haven’t begun saving for retirement yet, setting aside 15% to 20% of your income is considered a general rule of thumb at this age, Aaron said.

You can borrow for college, but you can’t borrow for retirement.

Carolyn McClanahan
director of financial planning at Life Planning Partners

You may also have aging parents, so be sure to check on their financial planning, McClanahan said. If they aren’t prepared, it is another financial obligation that may be suddenly thrown on your lap.
Sun said she’s had many clients in their 40s start to inquire about long-term care, with Covid pushing care concerns to the forefront. Traditional long-term care insurance is expensive, but there are other policies that are a hybrid — combining life insurance and long-term care coverage.
“It is really figuring out how much you can afford, and if you can’t afford it right now, at least have the discussion so you are prepared,” Sun said. “You may have to self-insure, or look for it through work.”

Getting serious in your 50s

Retirement is potentially a decade away, so it’s time to get serious about how much you are truly spending, and whether you are on track to save enough to support you throughout your life, McClanahan said.
Once you hit 50, you can also set more aside into your 401(k) or IRA with so-called catch-up contributions. In 2023, the limit is $7,500 for 401(k) plans and $1,000 for IRAs.

If you don’t use a financial planner, at least get an hourly one to determine if you are on track to support your lifestyle in retirement, McClanahan recommended.
Assess your assets and make sure your portfolio is balanced to your needs. As you approach retirement age, experts typically recommend reducing risky assets, such as stocks, and increasing fixed income, such as bonds.
However, it’s important to maintain stock exposure since it gives you a greater return, Aaron said.

In your 60s and beyond

At this point, you need to have a retirement distribution strategy. That means understanding the different income streams you’ll have coming in.
“We need to build an investment strategy based on a proper asset allocation, taking on only as much risk that is needed for the income you require and your legacy goals,” Aaron said. More

Certain luxury features may help sell your home for more money or faster than expected, according to new research from Zillow.
As homeowners stay in place after locking in low interest rate mortgages, they are focusing on improvements that bring more joy from their living spaces.
Certain renovations may bring more value than others when it comes time to sell.

A prospective home buyer is shown a home by a real estate agent in Coral Gables, Florida.
Joe Raedle | Getty Images

Today’s home sellers may be able to command higher prices due to recent increases.
Certain luxury features may help sell your home for more money or faster than expected, according to new research from Zillow.

“If you have these features in your home already, you should definitely flaunt them in your listing description,” said Amanda Pendleton, Zillow’s home trends expert. “That is going to set you ahead of the competition.”
The real estate website evaluated 271 design terms and features included in almost 2 million home sales in 2022. Those that came out on top may add up to about $17,400 on a typical U.S. home.
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Two chef-friendly features topped the list of those that helped sell homes for more — steam ovens, which helped push prices up 5.3% over similar homes without them, and pizza ovens, which increased prices by 3.7%.
Other features that rounded out the top 10 included professional appliances, which had price premiums of 3.6%; terrazzo, 2.6%; “she sheds,” 2.5%; soapstone, 2.5%; quartz, 2.4%; a modern farmhouse, 2.4%; hurricane or storm shutters, 2.3%; and mid-century design, 2.3%,

Zillow also looked at which features helped sell homes faster than expected.
Doorbell cameras topped that list, helping to sell homes 5.1 days faster. That was followed by soapstone, with a 3.8 day advantage; open shelving, 3.5; heat pumps, 3; fenced yards , 2.9; mid-century, 2.8; hardwood, 2.4; walkability, 2.4; shiplap walling or siding, 2.3; and gas furnaces, 2.3.

To be sure, homeowners should not necessarily add these features with the idea they will see sale premiums, Pendleton said.
Moreover, some more unique features — like she sheds, spaces dedicated specifically to female home dwellers and their hobbies — may make it so it takes a bit longer to find a buyer who appreciates the amenities.
However, the features are signals of perceived qualify a buyer associates with a nice home right now.
“These personalized features kind of add that wow factor to a home,” Pendleton said.

Emphasis on improvements that spark joy

The current housing market is “anything but traditional,” Pendleton notes.
For buyers, there’s not as many listings to choose from as homeowners do not want to give up their ultra-low interest rates, she noted.
“Homes that are well priced and well marketed are going to find a buyer very quickly today,” Pendleton said.
Existing homeowners are now more likely to be thinking of different ways to re-envision their space, according to Jessica Lautz, deputy chief economist at the National Association of Realtors.

Personalized features kind of add that wow factor to a home.

Amanda Pendleton
home trends expert at Zillow

“There are a lot of people who want to remodel because they are locked into low interest rates and have no intention of leaving their property,” Lautz said.
At the top of homeowners’ wish lists are ways to maximize the square footage of their home, Lautz said, such as basement remodels or attic or closet conversions. Adding home offices is also very popular as people continue to live hybrid lifestyles.
Some improvements also stand to provide a 100% or more return when a home is put on the market.
The top of that list includes hardwood floor refinishing, according to Lautz, which not only makes a home look more beautiful but also makes it more marketable.

“It brings a lot of joy, and it has a lot of bang for the buck when you go to sell your home,” Lautz said.
Putting in new wood flooring or upgrading the home’s insulation also tend to provide returns of 100% or more, she said.
Zillow’s research found certain features may actually hurt a home’s resale value. That includes tile countertops or laminate flooring or countertops. Walk-in closets may also negatively impact a home’s value, as buyers may prefer to use the space for other purposes. More

In Nicole Chung’s new memoir, “A Living Remedy,” she tells the story of watching her aging parents get sicker from illnesses they couldn’t afford to treat.
Chung blames the country’s broken health-care system for the fact that her father died at 67, and her mother at 68.

Nicole Chung
Source: Carletta Girma

In author Nicole Chung’s new memoir, “A Living Remedy,” she tells the story of watching both her parents die in the span of two years. It was all the more painful because of her mother and father’s inability to afford the medical treatments they needed.
Chung blames the country’s broken health-care system, at least in part, for the fact that her father died at 67, and her mother at 68. By the time her father finally sought help at a low-cost health clinic, a doctor told him that his kidneys had lost more than 90% of their function. “It is still hard for me not to think of my father’s death as a kind of negligent homicide, facilitated and sped by the state’s failure to fulfill its most basic responsibilities to him and others like him,” Chung writes.

She also chronicles how her parents’ illnesses could never be processed and grieved over for what they meant alone; they always set off financial setbacks and fears, too. While her parents’ health deteriorates, Chung tries to become a writer and take care of her own two daughters, but these efforts are often mixed with frustration that she can’t do more to help the people who raised her. She writes of the “hollow guilt of those who leave hardship behind, yet are unable to bring anyone else with them.”
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Chung’s story is likely to resonate with many. In 2022, a record-high share of Americans (38%) said they or a family member had delayed medical treatments because of costs, according to a Gallup poll.
I spoke with Chung about her grief and the state of American health care. (This interview has been edited and condensed for clarity.)
Annie Nova: Your parents experienced a lot of job insecurity. I’m curious, how much as a child did you understand what was going on for them?

Nicole Chung: It’s hard because, when you’re a child, you’re obviously not privy to financial discussions between your parents. It would not have been appropriate for them to put that on me at that age. But at the same time, definitely by the end of elementary school, I had become used to periods of them being unemployed, and I could really see the strain on their faces.
AN: The scenes of your father managing different pizza shops as he gets older are really upsetting because he’s often mistreated. Was retirement something they ever talked about? Or did they just know they wouldn’t be able to stop working?
NC: It was really difficult to plan for the future, in particular because my parents didn’t know when someone might lose a job, or when somebody would get sick. There wasn’t even an acknowledgment that my father wouldn’t be able to work in the service industry forever.
AN: So both your mother and father, because of worries around money, delayed going to doctors. How did this worsen their conditions?
NC: By the time my father finally got into a community health clinic and got the tests and care he needed, they said, ‘We should have seen you a year ago. Your kidneys have lost over 90% of their function.’ He knew he was getting sicker, but my parents just didn’t have a way to pay for the extensive care he needed.
AN: And with your mother?
NC: With my mother, it’s a little harder to pin down. I write in the book about her battle with cancer. By then, she was on Social Security and disability, and so she had adequate medical care. But when I was in high school, there was a period when we weren’t insured, and she had health problems. I wound up having to drive her to the hospital one night, and it turned out that she had endometriosis. She hadn’t been to a doctor in months. She never told me, ‘I didn’t go because we didn’t have insurance,’ but the fact is we didn’t. And it was partly because things had gotten so bad that the doctors weren’t actually able to remove everything, and that’s where her cancer grew many years later, and what ultimately killed her.
AN: This all happened relatively recently. Was it hard to write about it so soon?
NC: After my father died, I spent months trying to figure out why I was so enraged. Why wasn’t I just sad? Why was I so angry? And it’s the injustice of how he died, the fact that he died younger than he probably would have or needed to, because of years of precarity and lack of access to health care. It suddenly felt very important to talk about.

Arrows pointing outwards

AN: Going to the community health clinic was such a turning point for your father. I got the sense that you thought the entire health-care system should be more like these clinics.
NC: I think it was hard for my mother to accept that they needed to go to a free clinic. And, of course, it didn’t save him. But it prolonged his life. He was diagnosed with kidney failure and got on dialysis. He was approved for disability. There was all kinds of assistance, even a medical shuttle to bring him to his appointments. So that visit to the clinic unlocked all of these other services and support. That’s often not the case with how health care operates in this country. Instead, it’s hard to access and very expensive.

He knew he was getting sicker, but my parents just didn’t have a way to pay for the extensive care he needed.

Nicole Chung
author of “A Living Remedy”

AN: As you became more financially comfortable, did your parents ask you for help?
NC: I offered my parents what I could, but they were really hesitant to ask for anything because of where I was in my career and because I had two young kids. They knew I didn’t have very much money. And it was kind of devastating to realize that they weren’t asking because they had no expectations. And then, when my mother visited me, she would secretly leave cash behind. I would find it after they left. It was like she was trying to return everything I had given them.
AN: What impact do you hope your book will have on the health-care conversation in the U.S.?
NC: I wanted to write this book, in part, because I wanted to write about my grief. And it felt really important to say that so many people’s experiences of grief are informed by things like what my family went through. Most people who get sick and die in this country aren’t wealthy, because most people in this country aren’t wealthy. These things are going to continue to happen to so many of us at some point. How do we want to meet them as a society? One of the bigger questions that runs through the book is, ‘How do we want to take care of each other?’ More

The latest projections for Social Security and Medicare show two of the three major trust funds may be insolvent in the next decade.
Lawmakers may consider a host of changes to resolve those issues, from raising taxes, cutting benefits or both.
Experts weigh in on what changes would be on their wish lists.

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Social Security and Medicare face an uncertain future, based on new annual reports from the programs’ trustees that were released last week.
“Insolvency is in the near horizon,” said Marc Goldwein, senior vice president at the Committee for a Responsible Federal Budget, during a panel hosted by the non-partisan, non-profit organization on Tuesday.

Two of the three major trust funds are projected to be insolvent in the next decade, he noted.
The Hospital Insurance Trust Fund, also known as Medicare Part A, is now projected to be insolvent in eight years, or 2031 – three years later than was reported last year.
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Social Security’s Old-Age and Survivors Insurance Trust Fund — which covers benefits for retirees, their spouses and children, and survivors of deceased workers — will be able to pay full benefits until 2033. At that time, just 77% of benefits will be payable.
That is just 10 years from now, Goldwein noted, when today’s 57-year-olds reach normal retirement age and today’s youngest retirees turn 72.

“That’s mainly driven by the fact that we had an 8.7% cost of living adjustment,” Goldwein said. “The trustees were projecting less than half that.”
The Social Security Disability Insurance Trust Fund was a bright spot in the report, with 100% of benefits payable at least through the report’s projection period in 2097.

Yet Social Security’s two funds combined will be able to pay benefits until 2034, one year earlier than was projected last year. At that time, 80% of benefits will be payable.
That is, of course, unless Congress acts sooner.
Social Security’s woes largely come down to demographics. Since 2010, the program has been spending more on benefits than it has been bringing in from payroll tax revenues, Goldwein noted.
By 2030, all baby boomers will be age 65 or older, according to the U.S. Census Bureau.

We’re going way, way beyond a pure safety net program.

Andrew Biggs
senior fellow at the American Enterprise Institute

“While it’s good news that we have a couple of extra years for Medicare, overall the clock is ticking on all of these programs within a decade,” Goldwein said.
To be sure, the projections may change from year to year as the economy fluctuates.
Yet to fix the problem, the solution remains the same. Lawmakers will have to consider a host of changes, selecting from raising taxes, cutting benefits or a combination of both.
Experts were asked on Tuesday what changes they would prioritize. Here is what they suggested.

1. Reduce elderly poverty through Social Security

Social Security successfully lifts more people out of poverty than any other program in the U.S., research from the Center on Budget and Policy Priorities has found.
The research finds 37.8% of adults 65 and over would have incomes below the official poverty line without Social Security benefits.
With Social Security benefits, 9% of older adults have incomes below the poverty line. That goes up to 11.4% when children under age 18 and adults ages 18 to 64 are included.
While the program helps lift 22.5 million people out of poverty, the protections could be better, noted Kathleen Romig, director of Social Security and disability policy at the Center on Budget and Policy Priorities.

For the past 20 years, there has been one go-to minimum benefit proposal that includes a sliding scale based on years of work, Romig noted.
But reducing poverty through and outside of Social Security beyond a sliding scale minimum benefit may be a better approach, she said.
Notably, shoring up minimum benefits has been included in reform proposals on both sides of the congressional aisle.
“There is interest in this across the political spectrum,” Romig said.

2. Cap the maximum Social Security benefit

The maximum benefit for a single person retiring at normal retirement age this year is $43,000, based on the trustees report, noted Andrew Biggs, senior fellow at the American Enterprise Institute.
That is well above the poverty threshold of $21,000, he noted. Moreover, the maximum Social Security retirement benefit is two to three times higher than what countries like the United Kingdom, Canada or Australia pay.
“We’re going way, way beyond a pure safety net program,” Biggs said.
Congress may opt to cap the maximum benefit, which is projected to rise to $59,000 by 2030, Biggs suggested.
Those benefits are far beyond what anyone needs to stay out of poverty, he said. Such a change may be a “modest fix” that would reduce 10% to 15% of the program’s long-term funding gap, Biggs said.

3. Make Medicare spending more efficient

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One of the factors that has helped reduce Medicare spending in recent years is the shift of hip and knee replacements from in-patient hospital procedures to outpatient and ambulatory settings, noted Joe Albanese, policy analyst at the Paragon Health Institute, a health policy research institute.
The development comes after regulatory restrictions that required those services to be provided in in patient settings were lifted, he noted.
“These are the types of flexibilities and innovations that we should be seeking throughout the Medicare program,” Albanese said.
The savings not only helps with Medicare Part A hospital insurance solvency, but also may contribute to the fiscal sustainability of the program as a whole, he said. More