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    Want to invest in companies that empower women? Here’s what you need to know

    Gender equity investing is investing for financial return, while promoting gender diversity.
    Assets in U.S. gender equity funds have doubled over the trailing three years, according to Morningstar.
    Fund providers point to research that shows gender diversity can help boost returns and a company’s profitability.

    Flashpop | Stone | Getty Images

    As women in America struggle to get equal pay and rise up the ladder, companies that empower and promote female workers are being rewarded by impact investors.
    Known as gender lens or gender equity investing, the idea is to invest for financial return, while promoting gender diversity. The theme is becoming more popular — although it still represents a small slice of the investment pie, according to Morningstar.

    Assets in U.S. gender equity funds have doubled over the trailing three years to $1.3 billion, as of the end of February, Morningstar found. Yet those funds represent less than 0.01% of total equity fund assets in the United States, according to the firm.

    Funds focusing on gender equality

    Ticker
    Name
    Fund size ($)
    Expense Ratio
    YTD total return
    3-year average annual total return

    FWOZX
    Fidelity Advisor Women’s Leadership Z
    131,202,145
    0.69%
    3.24%
    19.83%

    SHE
    SPDR MSCI USA Gender Diversity ETF
    195,412,450
    0.20%
    2.09%
    14.68%

    FDWM
    Fidelity Women’s Leadership ETF
    4,924,881
    0.59%
    3.37%
    N/A

    PXWEX
    Impax Ellevate Global Women’s Ldr Inv
    805,158,928
    0.76%
    2.35%
    14.44%

    GWILX
    Glenmede Women in Leadership US Eq
    21,070,997
    0.85%
    1.40%
    19.70%

    WCEO
    Hypatia Women CEO ETF
    1,563,267
    0.85%
    N/A
    N/A

    EQUL
    IQ Engender Equality ETF
    5,388,005
    0.45%
    0.37%
    N/A

    WOMN
    Impact Shares YWCA Women’s Empwrmt ETF
    33,829,448
    0.75%
    3.49%
    24.42%

    FWOAX
    Fidelity Advisor Women’s Leadership A
    131,202,145
    1.10%
    3.10%
    19.34%

    Source: Morningstar

    But what exactly qualifies as gender lens investing, does it correlate to returns and can it make an impact?

    ‘Isolate that female factor, there will be alpha.’

    Patricia Lizarraga first noticed what she calls “the female factor” about 15 years ago when she was working in investment banking. Her women CEO and CFO clients were getting tremendous results, she said.
    These days she’s the managing partner of Hypatia Capital. In January, the asset management firm launched the Hypatia Women CEO exchange-traded fund (WCEO). The fund invests in all publicly-traded U.S. companies that have women CEOs, from small cap to mega cap. It’s down about 1% from its Jan. 9 debut, as of Thursday’s close. It has an expense ratio of 0.85%.
    The fund is in the early stages and has about $1.5 million in net assets. It is sector weighted, which means the fewer women CEOs in any given sector, the more shares the fund has in the companies that do have female leaders. One of its top holdings is Occidental Petroleum, helmed by CEO Vicki Hollub, whom Lizarraga called “a visionary.”

    “Women today outperform as CEOs because it is so much harder for a woman to become a CEO,” Lizarraga said. “The woman who makes it to the CEO spot has to jump through more hoops. If you can isolate that ‘female factor,’ there will be alpha.”

    Hypatia Women CEO ETF’s top holdings

    Ticker
    Name
    % of net assets

    OIS
    Oil States International
    2.11

    INSW
    International Seaways
    2.08

    OXY
    Occidental Petroleum
    2.08

    JXN
    Jackson Financial
    1.22

    PGR
    Progressive Corp.
    1.21

    LBC
    Luther Burbank Corp
    1.21

    GBX
    Greenbrier Cos
    1.21

    BXMT
    Blackstone Mortgage Trust
    1.20

    BEN
    Franklin Resources
    1.20

    EGBN
    Eagle Bancorp
    1.18

    C
    Citigroup
    1.18

    Source: Hypathia Capital, as of 3/1/2023

    In fact, research shows that gender diversity boosts a company’s financial performance. S&P 500 companies that have more than 25% of female executives have a higher subsequent one-year return on equity than the rest of those in the index, according to research by Bank of America. The same goes for those who have more than one-third of women on the board, the firm found.
    In addition, companies in the top quartile of gender diversity on executive teams were 25% more likely to experience above-average profitability than peer companies in the fourth quartile, a 2019 analysis by McKinsey & Company found.

    Tracking the gender theme

    Yet gender lens investing can be more than just investing in companies with female chief executives.
    Funds may screen for a percentage of women on the board of directors and women in executive management roles, said Kenneth Lamont, senior researcher at Morningstar. They may also look at hiring, retention and promotion figures for women within a given company and gender pay gap data, if available.
    “Every provider is going to give you a slightly different approach,” he said. “There is no absolute correct approach to tracking the gender theme.”
    Some providers use research from data provider Equileap, which focuses on gender equality, to help determine holdings. The Amsterdam-based firm researches and ranks 4,000 public companies around the globe using 19 criteria, including the gender balance of the workforce, as well as pay gaps, career training, recruitment and female-friendly policies.

    Women in leadership matters, but we need a more robust scorecard to assess gender equity.

    Julia Fish
    vice president at Glenmede

    One of those who use Equileap data is Glenmede Investment Management, whose Women in Leadership U.S. Equity Portfolio (GWILX) invests in large-cap companies with women in significant roles and tilts toward those that exhibit stronger gender equality policies and practices. It has about $21.4 million in assets under management, according to Morningstar, and it has an expense ratio of 0.85%.
    “Women in leadership matters, but we need a more robust scorecard to assess gender equity,” said Julia Fish, vice president of Glenmede Trust’s sustainable and impact investing team.

    Glenmede Women in Leadership’s top holdings

    Ticker
    Name
    % of net assets

    MPC
    Marathon Petroleum
    2.82

    DGX
    Quest Diagnostics
    2.81

    IPG
    Interpublic Group of Companies
    2.78

    SNPS
    Synopsys
    2.62

    BIIB
    Biogen
    2.53

    MRK
    Merck & Co.
    2.49

    ULTA
    Ulta Beauty
    2.45

    GD
    General Dynamics
    2.38

    BKNG
    Booking Holdings
    2.37

    DBX
    Dropbox
    2.35

    Source: Glenmede, as of 12/31/2022

    Glenmede Investment Management analyzed Equileap data and found on a sector-neutral basis, companies in the top quintile of gender balance in leadership and workforce experienced an average greater return and less risk than companies in the bottom quintile.
    Yet those extra metrics on gender equity matter. Those in the top quintile of other proxies for gender equity — including pay equity, training and career development, access to benefits and diverse supply chains — also experienced greater returns and lower risk than the bottom quintile, the firm found.

    Making an impact

    The people who run these funds believe the investments can make an impact.
    “What investors should also look for is the existence of shareholder engagement within these public market strategies — so the ability of a public market investor to use their shares to ask the company to go farther across environmental, social and governance features, but especially on gender-related issues,” Fish said.
    It’s something activist investors have been doing, to some success. In 2018, Citigroup became the first big U.S. bank to agree to publish statistically adjusted equal pay for equal work numbers after Arjuna Capital’s Natasha Lamb pushed for it. The result was an increase in compensation for women and minority workers to bridge the gap.
    For New York Life Investments, putting money toward fixing the gender gap is part of its mission. The firm’s IQ Engender Equality ETF (EQUL) donates a percentage of its management fee to Girls Who Code, a nonprofit that aims to boost the number of women in computer science. The fund is just over a year old, so while it grows assets, it is also augmenting its donations to the organization with additional contributions, said Wendy Wong, head of sustainable investment partnerships at New York Life Investments. EQUL has an expense ratio of 0.45%.
    “They are trying to close the gender gap in technology. The pipeline isn’t growing as much as it should,” Wong said. “By not having a pipeline of women going into technology, that has really broad implications across everything.”

    Don’t forget fundamentals

    Those interested in investing in companies that promote and empower women should be cognizant of what holdings are in the fund and how companies are screened. Also, be sure to understand what fees are charged.
    “A good story, or even a good moral story in some cases, shouldn’t blind you to the core fundamentals of investing,” Morningstar’s Lamont said.
    Be aware of any biases that may exist with the funds. For instance, when tech stocks have done well, gender funds have tended to lag, he said. That’s because the global funds, generally, are underweight tech since those companies don’t tend to do well with diversity, Lamont said.
    “Depending on how the fund that you’re looking at is built, it may have really quite explicit biases in it or risk factors that you should really understand before you invest,” he said.
    Lastly, understand that more may be at play than gender diversity when it comes to returns, he said.
    “I wouldn’t take all of the claims that are made about the performance benefits of having an extra female director on the board as gospel,” Lamont said. “If you believe in that, that’s great. But be prepared for that not quite materializing in the way you might expect.”
    —CNBC’s Michael Bloom contributed reporting

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    Some Equifax settlement checks bounced due to ‘clerical error’ at failed Signature Bank

    The checks, which consumers are receiving due to a legal settlement over Equifax’s 2017 data breach, were written against an account at Signature Bank.
    The number of affected consumers is fewer than 5,000, according to the settlement administrator.
    If you’re among the people whose check bounced, here’s what you need to know.

    Bloomberg | Bloomberg | Getty Images

    Some consumers who tried to deposit an Equifax settlement check in recent days got a surprise: It bounced.
    The checks, a result of a legal settlement over the credit-reporting firm’s 2017 data breach, were written against an account at Signature Bank. The bank was taken over by regulators on Sunday after account holders — spooked by the failure of Silicon Valley Bank last week — began withdrawing their money en masse.

    related investing news

    However, the checks that were returned unpaid are not related to the bank’s failure, said Jennifer Keough, CEO of JND Legal Administration, which is handling the Equifax settlement.
    “What happened here, due to a Signature Bank clerical error, certain checks that should have cleared were rejected by other banks,” Keough said.
    More from Personal Finance:Consumers lost $8.8 billion to fraud in 2022, FTC saysHere are debts that cannot be eliminated in bankruptcySome newlyweds can face a ‘marriage tax penalty’
    Fewer than 5,000 consumers are affected, Keough said. Roughly 18 million consumers were part of the class-action lawsuit that led to the settlement, she said.

    Consumers are receiving payments after a data breach

    In the wake of Equifax’s 2017 data breach, which compromised the personal information of more than 147 million consumers — including names, birth dates and Social Security numbers — the company became the target of multiple lawsuits and reached a settlement in 2019 with the Federal Trade Commission, the Consumer Financial Protection Bureau and all U.S. states and territories.

    As a result, consumers who were affected by the breach had the option of signing up for either up to $125 or free credit monitoring at all three of the largest credit reporting firms: Equifax, Experian and TransUnion.

    After implementation was delayed due to legal challenges, the settlement received final court approval in early 2022.
    The cash payments — which may be far less than $125, such as $5 or $21 — began going out in mid-December either as a check, payment to a PayPal account or prepaid card via email from the settlement administrator, depending on how the consumer chose to receive it.

    Here’s what to do if your settlement check bounced

    If you are among those whose check bounced, you will be contacted by the administrator, Keough said.
    “We’ll be notifying those individuals and reissuing their check,” she said.

    Read more of CNBC’s coverage of the bank crisis

    Additionally, if your bank charged you a fee for the incident, you should reach out to the administrator. You can do that via email (info@EquifaxBreachSettlement.com) or phone (1-833-759-2982).
    “When they provide us with proof of [the charge], the money will be sent to them,” Keough said. 

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    What’s at stake — by the numbers — as Supreme Court weighs student loan forgiveness

    If President Joe Biden’s student loan forgiveness plan survives the Supreme Court, around 14 million people could see their balances entirely cleared.
    Meanwhile, closer to 37 million people would get a portion of their debt forgiven.
    The country’s outstanding student loan balance could drop to $1.3 trillion from $1.7 trillion.

    A protest sign outside the Supreme Court in Washington, D.C., on Feb. 28, 2023.
    The Washington Post | The Washington Post | Getty Images

    There’s no precedent in recent history for the sweeping federal student loan forgiveness policy President Joe Biden is trying to carry out.
    A look at the math of the program shows how deep the relief could be for borrowers, many of whom were struggling before the Covid pandemic — when the economy was in one of its healthiest periods.

    Since then, federal student loan payments have been on hold for three years. Biden had hoped to cancel up to $20,000 in debt for tens of millions of Americans before resuming the bills, but his policy soon faced a barrage of legal challenges, and its fate now rests with the Supreme Court.
    More from Personal Finance:Is Supreme Court Justice Barrett key to student debt relief?What to do if Biden’s student debt plan is struck downHere’s how things go so bad with student loan debt in the U.S.
    The outcome of the justices’ decision could have dire consequences on families, said Thomas Gokey, co-founder of the Debt Collective, a national union of debtors.
    “For many people, this is life and death,” Gokey said. “What’s at stake is being forced to choose between paying for student loans or being able to buy groceries, make rent and pay medical bills.”
    Here’s what’s on the line, by the numbers.

    $400 billion in student debt gone

    If every eligible borrower applies for the relief, Biden’s student loan forgiveness plan is estimated to wipe out $400 billion in federal student debt, according to the Congressional Budget Office.
    That would reduce the country’s $1.7 trillion outstanding education debt balance to $1.3 trillion.

    14 million borrowers given a fresh start

    Roughly a third of those with federal student loans, or 14 million people, would have their balances entirely forgiven by the president’s program, according to an estimate by higher education expert Mark Kantrowitz.
    These borrowers likely won’t have to make a student loan payment again, Kantrowitz said. The Biden administration has said it won’t resume the bills until 60 days after the litigation over its plan resolves (or at the end of August if the challenges are still pending).

    For many people, this is life and death.

    Thomas Gokey
    co-founder of the Debt Collective

    “Sixty days will be enough to forgive student loan debt if the president’s plan survives,” Kantrowitz said. “They’ve already approved forgiveness for 16 million borrowers, so they just need to transmit this information to the loan servicers.
    “It should take one to two weeks for the servicers to implement,” he added.

    37 million people get some loan forgiveness

    Biden’s relief is limited to borrowers who make under $125,000 a year as individuals or less than $250,000 as a couple.
    Still, that means around 37 million people would be eligible for loan cancellation, Kantrowitz estimates — up to $20,000 if they received a Pell Grant in college, a type of aid for low-income families, or as much as $10,000 if they did not.

    Monthly bills cut by a third or more

    The U.S. Department of Education has said it plans to “re-amortize” borrowers’ new balances after forgiveness. That’s a wonky term that means it will recalculate people’s monthly payment based on their lower tab and the number of months they have left on their repayment timeline.
    Kantrowitz provided an example: Let’s say a person currently owes $30,000 in student loans at a 5% interest rate. Before the pandemic, they would have paid around $320 a month on a 10-year repayment term.
    If forgiveness goes through, and that person get $10,000 in relief, their total balance would be reduced by a third, and their monthly payment will drop by a third, to roughly $210 a month.

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    Accounts to buy bonds from the government jumped fivefold as yields boomed

    In 2022, when the Federal Reserve hiked rates seven times and stocks suffered, safety-focused investors opened accounts at TreasuryDirect.gov, the online portal savers can use to buy Treasury bonds, Series I bonds and other securities directly from the U.S. government.
    Last year, 3.6 million accounts were opened at TreasuryDirect, up from 689,369 in 2021, a roughly fivefold increase in that period.
    Year to date through Tuesday, investors opened 222,703 accounts.

    Young man working at home
    Eva-katalin | E+ | Getty Images

    Investors seeking safety from last year’s market havoc went running to Uncle Sam — that is, they opened more than 3 million accounts to buy Treasurys and other bonds directly from the U.S. government.
    In 2022, savers created 3.6 million accounts at TreasuryDirect.gov, a website where investors can buy a range of savings bonds and Treasury securities from the U.S. government. That’s up about fivefold from 2021, when investors opened 689,369 accounts on the site.

    Arrows pointing outwards

    TreasuryDirect.gov

    The spike in investor interest in the website coincides with a couple of key market events.

    I bonds

    First, savers turned toward Series I savings bonds, an inflation-protected and largely risk-free asset that’s issued by the federal government. The rate on these bonds has two components: a fixed rate of interest and a rate that varies based on inflation.
    In May 2022, the Bureau of Fiscal Service announced that I bonds purchased from then through Oct. 28 of that year would earn a composite rate of 9.62% for the first six months after the date of issue. Bonds issued between Nov. 1, 2022, and April 30, 2023, have a rate of 6.89% — which is still attractive, even if it’s lower than last year’s bonanza.
    Be aware that individuals buying I bonds through TreasuryDirect are limited to $10,000 in purchases per calendar year. You can buy up to $5,000 in paper I bonds using your tax refund.
    Be sure you’re comfortable with tying up some of your funds in an I bond. Though you can cash it in after 12 months, you’ll lose the last 3 months of interest if you redeem it in fewer than five years.

    Rising Treasury yields

    The Federal Reserve’s rate hiking campaign, which began a year ago, spurred a rise in bond yields. Though this was bad news for people with diversified portfolios – they saw price declines in both fixed income and equities – it was good news for income-focused investors who wanted to buy Treasury securities on the cheap.
    Indeed, the yield on the 10-year Treasury started 2022 around 1.5%, but surged to 4% by that fall. The inversion in the yield curve – an event in which yields on near-dated bonds are higher than long-dated issues – has also made Treasury bills especially promising. Consider that a 6-month T-bill has a yield of 4.91%.
    Investors can ladder T-bills to extract a little more yield out of otherwise idle cash.
    Aside from buying Treasurys through a brokerage firm, you can go directly to TreasuryDirect.gov.
    There, you set up an account, link your bank and participate in an auction for Treasurys. Four-week, 8-week, 13-week and 26-week T-bills are auctioned every week. Two-year notes are auctioned monthly and 10-year Treasurys are auctioned every quarter.
    Though these bonds are offering attractive yields and are deemed risk-free, investors should be aware that their yield may not keep pace with inflation. They might also miss out on investment opportunities in stocks, so be wary of how much you stash in these government bonds.
    -CNBC’s Michelle Fox contributed to this story.         

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    More than 5 million households still behind on rent — what to do if yours is among them

    As of February, renters in the U.S. continued to owe nearly $11 billion in debt.
    The average arrears is more than $2,000.
    Here are some of your options if you’re in the red.

    Viorel Kurnosov | Istock | Getty Images

    With roughly two more months before the U.S. Department of Health and Human Services ends the three-year Covid public health emergency, more than 5 million of the nation’s households remain behind on their rent.
    All together, tenants continued to owe nearly $11 billion in rental debt during the first two weeks of February, according to data by the National Equity Atlas. On average, renters who are behind owe $2,094.

    Fortunately, the public health crisis led to the creation of a number of new protections for struggling renters, some of which remain in place.
    More from Personal Finance:Here’s the inflation breakdown for February — in one chartExperts weigh in on the banking systemWage growth is cooling, but workers still have bargaining power
    “In some cities, there might be rental assistance or free legal aid available, as well as community organizations and tenant unions that could help them understand their rights and possible solutions,” said Jacob Haas, research specialist at the Eviction Lab.
    Here are some of your options if you’re in the red.

    Consider your options for rent aid

    Most rental assistance programs that opened during the pandemic are now closed, but some are still accepting applications.

    On the National Low Income Housing Coalition’s website, you can find a state-by-state guide of relief options and their status.

    Renters should keep track of the rental assistance opportunities available to them and apply quickly when they see one open, advocates say. The money tends to run out fast.
    On Tuesday, the Texas Rent Relief Program began accepting applications for aid, but it’s already scheduled to stop doing so Thursday. A notice on its website reads, “Within the first 24 hours of re-opening, requests for assistance far exceeded available funding.”

    Assess your financial resources

    “The biggest potential issue is carrying a balance and paying interest on your rent,” Rossman said. “This can make an already sizable expense much more substantial.”
    Instead, he recommends tenants ask their landlord for an extension or payment plan. Other ways to come up with rent can include borrowing from family members and friends, or from your retirement plan, Rossman said — although withdrawing from your nest egg comes with its own consequences.

    Familiarize yourself with tenant rights

    It’s worth researching and familiarizing yourself with any rights you as a tenant may have, experts say. Many of those rights expanded during the pandemic.
    In certain cities, for example, landlords are now limited in how much they can raise your rent. If you’re facing eviction because of an increase that was illegal, it’s worth knowing: You may be able to bring this up in housing court, or with your landlord.

    Protesters n Minneapolis rallied to stop housing evictions during the pandemic.
    Universalimagesgroup | Universal Images Group | Getty Images

    In some places, you’re entitled to a set amount of notice with an eviction, such as at least 90 days in specific cases in Portland, Maine. During the school year, educators and families with school-age children recently got new eviction protections in Oakland, California.
    Meanwhile, if your landlord has raised your rent above a certain amount, you could be eligible in a few cities, including Seattle and Portland, Oregon, to get some of your moving costs covered.

    Work with a lawyer

    If your landlord has moved to evict you, housing advocates recommend that you try to get a lawyer as soon as possible.
    One study in New Orleans found that more than 65% of tenants with no legal representation were evicted, compared with just 15% of those who had a lawyer with them at their hearing.
    You can find low-cost or free legal help with an eviction in your state at Lawhelp.org.
    In a growing number of cities and states, including Washington, Maryland and Connecticut, tenants facing eviction now have a right to free counsel.
    You can find a longer list of those places at civilrighttocounsel.org.

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    Op-ed: Be sure to ask these 5 questions before hiring a new financial advisor

    There are more than a few factors to consider when deciding whether to work with a financial advisor. Here’s a look at some key boxes to check before deciding.
    Are they a fiduciary? Do they have a disciplinary record? That’s just for starters.
    Here’s a look at several questions to put to a financial professional you’re considering.

    Customer shaking hands with car salesman buying a car
    Fg Trade | E+ | Getty Images

    Several considerations go into selecting a financial advisory firm, especially if you are in your prime working years and have plenty of time left before you retire.
    For one, think about whether the advisors are fiduciaries. More and more investors today want to work with a professional who provides advice (versus selling products) and is legally obligated to consider a client’s best interest.

    Also, do the advisors have a good disciplinary record? A violation doesn’t mean an advisor is a crook. Mistakes happen. But if they have a history of not keeping their own house in order, do you really want them to manage your family’s money? Entering their name into FINRA’s online Broker Check tool is an easy way to find out.
    More from Personal Finance:How to find the right financial advisor fit for youHere are some key things to consider before ‘unretiring’Average 401(k) balance dropped 20% in 2022, Vanguard says
    Another factor is personal chemistry. Remember, your professional relationship with an advisor is much like that with a doctor — it could last decades. You don’t have to be best friends, but it would be better if you liked them.
    These are all important concerns. Yet one that doesn’t come up as often: How equipped are the firm and its advisors to grow and evolve? Here are five questions to ask your current or would-be advisor to help determine whether they are running in place or capable of keeping up with your ever-changing needs.

    How long has their firm’s leadership been in place, and how many of them were promoted from within? It would be silly and impractical for a company — financial services or otherwise — to have a policy against bringing in outside talent. Indeed, experienced leaders who can help businesses become more efficient and offer better services are valuable, no matter where they come from. Yet, if too many leaders are new to the firm or have not been groomed from within, it could be a sign that they are short-term hired guns whose primary responsibility is to supercharge growth at all costs. That approach may produce slimmer margins, but it’s unlikely to yield investments back into the firm that improves your experience. 
    How long has the staff been in place? A startup can be a great place to work. Everyone is new and has a sense of purpose, which often infuses the workplace with a positive, almost virtuous, energy. The story is sometimes different when established businesses have few tenured employees and everyone is new. It could indicate that the culture is poor. That produces a very different energy throughout the office — one that could ultimately filter down to customers like you.
    When was the last time they upgraded their technology, and how integrated is it? Imagine sitting with your advisor, looking at a screen displaying your investments. You have a question about one of your holdings, but it’s not there. To find it, they have to log into a different system. While this may not seem like a big deal, it’s a huge red flag when an advisor must toggle between two platforms to see all of a client’s holdings. It means they either have outdated or substandard technology — which, in turn, suggests they care more about improving their own margins than investing in up-to-date, integrated systems.
    What safeguards do they have to protect customer data and thwart cyberattacks? Most cyber and data incidents result from human error (i.e., someone internally clicking a link they shouldn’t). With that in mind, ask them how often they undergo cybersecurity awareness training. Also, ask whether they monitor potential vulnerabilities within their systems and devices. Remember, this isn’t just about sensitive information getting compromised — as bad as that is. It’s also about being able to always trade within your portfolio. If a cyberattack takes down your firm for a prolonged period, you may not be able to do that.
    How many of their advisors are near or under 40? The financial services industry is facing a demographic crunch, with the average advisor about 55 years old. To make matters worse, many of these advisors do not have a succession plan. There’s nothing wrong with working with an older advisor. At the same time, if they were to retire without having anyone internally set to take their place, it would create a long line of issues for you. If an advisor isn’t planning for their future, do you want them planning yours?

    Your needs will change as you evolve and different things happen in your life, whether it’s getting married, having a baby or switching careers. Therefore, you need an advisor who will evolve right along with you.

    Good firms and advisors can keep up with the latest wealth management and financial planning trends. The best ones, though, stay ahead of them.
    — By Donald C. Cutler, senior principal at Haven Tower Group.

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    Medicare beneficiaries could pay less for 27 drugs covered under Part B starting next month

    The 27 drugs that may cost less for beneficiaries are those whose price increases have outpaced inflation.
    The cost savings is due to provisions in the Inflation Reduction Act, which cleared Congress last August and also ushered in other changes to Medicare drug coverage under both Part B and Part D.
    The medicines on the list are all covered under Part B because they are administered by a doctor in a clinical setting.

    miodrag ignjatovic | E+ | Getty Images

    Some Medicare beneficiaries will begin paying less next month for 27 prescription drugs whose prices have increased at a rate that outpaces inflation, government officials announced Wednesday.
    Depending on their individual coverage, beneficiaries could save between $2 and $390 per average dose for these drugs starting April 1, according to the Centers for Medicare & Medicaid Services. The reduced cost applies to certain drugs and biologicals that are administered in a hospital or other clinical setting — medications that treat cancer, arthritis and chronic kidney disease, for example — and are covered under Medicare Part B.

    “Some of these drugs are life-saving for various conditions and situations like organ transplants,” said Elizabeth Gavino, founder of Lewin & Gavino and an independent broker and general agent for Medicare plans.
    More from Personal Finance:A bill in Congress aims to help prevent elder fraudHow to factor your health into a financial planHere’s what you should consider before ‘unretiring’
    “It’s heartbreaking to hear stories from clients about life-saving medications that are financially out of reach because of fixed income,” Gavino said. “Lowering the costs may help some folks.”
    Beneficiaries who typically pay 20% coinsurance under Part B will see their share decline based on a lower inflation-adjusted price for the drugs on this list. And, the list of drugs impacted by this coinsurance adjustment may change quarterly.

    The change is due to legislation adopted last year

    The cost reduction for these 27 drugs is due to implementation of provisions in the Inflation Reduction Act, which Congress passed last August.

    The law requires pharmaceutical manufacturers to pay a rebate to the Medicare program if their drug prices rise faster than the rate of inflation — which is not uncommon. Half of all drugs covered by Medicare had list price increases that outpaced inflation between 2019 and 2020, according to the Kaiser Family Foundation.

    It’s worth noting that the law applies to drugs under Part D as well, although information on which ones are subject to the inflation rebates won’t be available until later this year, said Juliette Cubanski, deputy director of the program on Medicare policy at the Kaiser Family Foundation. Additionally, those rebates in Part D will not result in lower costs to beneficiaries — that reduction only applies in Part B.

    More changes to Medicare drug coverage are in effect

    This isn’t the only change to drug coverage that Medicare beneficiaries may notice this year.
    The Inflation Reduction Act also capped monthly cost-sharing for insulin delivered through Part D at $35, which took effect Jan. 1. Part D deductibles — which vary from plan to plan but cannot be more than $505 in 2023 — also won’t apply to the covered insulin product.
    For beneficiaries who take insulin through a traditional pump (which falls under Part B), the benefit starts July 1.
    Additionally, as of this year, there is no longer any cost-sharing for recommended vaccines under Part D, including the one for shingles. 

    More changes will happen in future years

    Other provisions that are intended to reduce Part D spending take effect in later years.
    This includes eliminating an existing 5% coinsurance in the so-called catastrophic phase of coverage, which takes effect in 2024.
    Additionally, beneficiaries’ annual out-of-pocket Part D spending will be capped at $2,000 beginning in 2025. Currently, there is no out-of-pocket limit, regardless of whether you get your coverage as a standalone Part D option or through an Advantage Plan.
    Medicare also will be able to start negotiating the price of some drugs beginning in 2026.

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    College hopefuls have a new ultimate dream school — and it’s not Harvard, Princeton or Yale

    This year, the school named by the highest number of students as their “dream” college was Massachusetts Institute of Technology, according to The Princeton Review. For parents, it was Princeton.
    The colleges that are considered the most desirable are also among the most selective and most expensive.
    With National College Decision Day just weeks away, affordability remains the top concern.

    Massachusetts Institute of Technology (MIT) campus in Cambridge, Massachusetts
    (Photo: Bloomberg / Getty Images)

    With an acceptance rate of just under 4%, Massachusetts Institute of Technology is considered the ultimate dream school, according to a new survey of college-bound students and their families.
    However, it’s not only one of the hardest schools to get into but also among the nation’s priciest institutions — tuition and fees, room and board and other student expenses came to more than $79,000 this year.

    At the same time, most college-bound students and their parents now say affordability and dealing with the debt burden that often goes hand-in-hand with a college diploma is their top concern, even over getting into their first-choice school, according to The Princeton Review’s 2023 College Hopes & Worries survey.

    Most of the colleges at the very top of students’ wish lists are “perennial favorites,” according to Robert Franek, The Princeton Review’s editor-in-chief. They are also among the most competitive: Stanford’s acceptance rate is also just below 4%; at Harvard, it’s about 3%.
    Coming out of the pandemic, a small group of universities, including many in the Ivy League, have experienced a record-breaking increase in applications this season, according to a report by the Common Application.
    The report found application volume jumped 30% since the 2019-20 school year, even as enrollment has slumped nationwide.
    “There’s a subconscious consensus that it’s only worth going to college if you can go to a life-changing college,” said Hafeez Lakhani, founder and president of Lakhani Coaching in New York. 

    More from Personal Finance:College is still worth it, research findsThe cheapest states for in-state college tuitionThese 4 moves can help you save big on college costs

    National College Decision Day is coming up

    As acceptance letters trickle in, students have just a few weeks to figure out their next move ahead of National College Decision Day on May 1, the deadline for high school seniors to choose which college they will attend. 
    At that point, they must pay a non-refundable deposit to secure their seat at the school of their choice. 
    But the biggest problem remains how they will pay for their degree. A whopping 98% of families said financial aid would be necessary to pay for college and 82% said it was “extremely” or “very” necessary, The Princeton Review found.
    “Financial aid is more a necessity now than ever,” Franek said.  

    Arrows pointing outwards

    Don’t base your decision on sticker price alone

    Still, “never cross an expensive school off of your list of consideration based on sticker price alone,” Franek said. Consider the amount of aid available, since private schools typically have more money to spend.
    “Many of those schools are giving out substantial scholarships — this is free money.”
    For example, MIT offers generous aid packages for those that qualify. Last year, the average annual price paid by a student who received financial aid was less than $20,000, according to the school. 
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