Investing

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Shares of Silvergate Capital plummeted Thursday after the bank delayed the filing of its annual 10-K report as it evaluates events that have happened since the end of 2022.
The company, which provides banking services to crypto businesses, ended the day lower by 57.72%. That pushed its year-to-date loss to 67%. It’s lost 95.7% in the past year.

Silvergate said in a filing Wednesday that it needs additional time for its accounting firm to complete certain audit procedures and that it’s “currently analyzing certain regulatory and other inquiries and investigations.”
Specifically, it cited the “sale of additional investment securities beyond what was previously anticipated” and the “impact that these subsequent events have on its ability to continue as a going concern.”
“The losses from the securities sales appear large enough to result in Silvergate calling out that it may now be less than well capitalized on its regulatory capital ratios,” JPMorgan analyst Steven Alexopoulos said in a note Thursday. “Given significant regulatory challenges (including the pending investigations from regulators) and business challenges (including the exacerbating liquidity challenges amid a crisis of confidence from digital asset customers), the company is reevaluating its businesses and strategies.”
JPMorgan downgraded Silvergate shares Thursday along with other Wall Street analysts.
Silvergate noted that its preliminary, unaudited financial results for 2022, filed Jan. 17, included a net loss attributable to common shareholders of $948.7 million, compared with net income of $75.5 million in 2021.

Silvergate is has been facing several challenges since the end of last year, following the blowup of crypto exchange FTX. In January it suffered another 40% drop in a single day after reporting massive withdrawals in the fourth quarter, in light of the FTX collapse. Then in February the Department of Justice opened an investigation into the bank’s dealings with FTX and its sister company Alameda Research.
The move in its shares weighed on Signature Bank, which also banks crypto startups. Its stock hit a 52-week low intraday, and fell as much as 7%
Coinbase also fell as much as 11%, but cut losses as the stock market rallied and finished the day down just 1.5%. The crypto services company said in a statement that has de minimis corporate exposure to Silvergate and that it has stopped accepting or initiating payments to or from Silvergate. Hedge fund Galaxy Digital, stablecoin issuers Circle and Paxos and others have taken the same measure.
The move did not have a big effect on cryptocurrencies, however. Bitcoin and ether both hovered at the flatline.

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Smart Tax Planning

If you’re banking on a refund this tax season, the IRS said you should file a complete and accurate return to avoid delays.
Before rushing to file, it’s important to gather tax documents for activity like your income, deductions and credits.
You can review last year’s tax return to make a checklist of which forms you may need this season.

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If you’re banking on a refund this tax season, the IRS has a warning: You should file a complete and accurate return to avoid delays.
While it’s been a smoother filing season compared with years past, it’s still important to file correctly the first time, experts say. One way to avoid possible issues is by getting organized with the necessary tax forms, known as information returns, sent to the IRS and taxpayers yearly.

“Missing tax documents are definitely going to cause a refund delay,” said Sheneya Wilson, a certified public accountant and founder of Fola Financial in New York.

More from Smart Tax Planning:

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

Here’s why: If you skip tax forms received by the agency, the IRS systems may flag your return and mail you a notice, she explained.
Whether you’re working with a tax professional or filing on your own, here’s what to know about your tax forms — and when to expect them.

When you’ll receive each tax form

While most tax forms have a Jan. 31 deadline, others aren’t due until mid-February or beyond, said certified financial planner John Loyd, owner at The Wealth Planner in Fort Worth, Texas. 
For example, the deadline for 1099-B for capital gains and losses and 1099-DIV for dividends and distributions is Feb. 15. But some investment firms get an extension from the IRS for more time to validate forms and avoid corrections, meaning you may not receive these forms until March, Loyd said. 

If you do need a corrected form, it can slow down your filing process because it takes time for the investment firm to update and reissue your documents, he said.
Regardless of your situation, it’s important to have all the necessary forms handy before filing your return, Loyd said. “It’s 1,000 times better” to file correctly the first time, he added, noting that IRS notices may take months to resolve.

Make a checklist with last year’s return

If you’re not sure which tax forms to expect, experts say last year’s tax return is a great starting point.
“I go page-by-page with the prior year and current year’s [returns],” said Marianela Collado, a CFP and CEO of Tobias Financial Advisors in Plantation, Florida. She is also a CPA. “That’s always a good check,” she said.
For earnings, some of the common forms include a W-2 for wages, 1099-NEC for contract or gig economy work, 1099-G for unemployment income and 1099-R for retirement plan distributions. 
For 2022, you probably won’t receive a 1099-K for payment apps such as Vemno or PayPal unless there were more than 200 payments worth an aggregate above $20,000. If you receive this form by mistake, the IRS said it is working on guidance.

Of course, it’s also important to make sure the numbers on your tax return match those on your 1099s because “that’s something that could trigger a delay,” Collado said.   
As for tax breaks, you may need forms 1098 for mortgage interest, 5498 for individual retirement account deposits, 5498-SA for health savings account contributions, 1098-T for tuition, 1098-E for student loan interest and more. More

Questions on fairness and the scope of the president’s power emerged as the Supreme Court justices debated Biden’s student loan forgiveness plan.
Here were some of the most heated exchanges during the arguments.

Justices on the bench hearing arguments about the student loan forgiveness program.
Source: Bill Hennessy

There were many tense moments Tuesday as the nine Supreme Court justices grilled the plaintiffs challenging the Biden administration’s student loan forgiveness plan and the government attorney defending the policy.
The Supreme Court agreed to hear two challenges against President Joe Biden’s unprecedented plan to cancel up to $20,000 in student debt for tens of millions of Americans. Six Republican-led states brought one lawsuit against the forgiveness plan, and conservative advocacy organization, the Job Creators Network Foundation, backed the second. Both accuse the president of overstepping his authority.

While the justices heard oral arguments, hundreds of student loan borrowers from around the country gathered outside the court in support of the president’s plan, with signs bearing messages such as “Death to student debt” and “Student debt cancellation is legal.”
The justices are expected to issue a decision by the end of June.
Here were three of the most heated exchanges during the arguments.

Response to a ‘once-in-a-century pandemic’

The Heroes Act of 2003, which the Biden administration is using as its legal justification to carry out its student loan forgiveness program, authorizes the education secretary to “waive or modify” student loan programs during national emergencies to avoid borrower distress.
Some of the justices expressed skepticism that that law permits the president to carry out the kind of sweeping debt relief his forgiveness plan entails. At an estimated cost of about $400 billion, Biden’s plan is one of the most expensive executive actions in history.

“You think…Congress shouldn’t have been surprised when half a trillion dollars is wiped off the books?” asked Chief Justice John Roberts.
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In response, Solicitor General Elizabeth Prelogar, the lawyer representing the Biden administration in front of the nine justices, said she recognized it was a big action.
“But that’s in direct reaction to the COVID-19 pandemic, which itself was a really big problem,” Prelogar said.
“There hasn’t been a national emergency like this in the time that the Heroes Act has been on the books that’s affected this many borrowers,” she said. “And so I think it’s not surprising to see in response to this once-in-a-century pandemic.”

Whether student loan forgiveness is ‘fair’

Supreme Court Justice Samuel Alito became frustrated with Prelogar at one point, accusing her of not answering his question on the fairness of the forgiveness plan.
“I’ll try one more time,” Alito said. “Why was it fair to the people who didn’t get arguably comparable relief?”
Prelogar replied that Congress had already made the decision to allow the Secretary of Education to provide borrowers relief when they’re impacted by a national emergency.
“And you could make this critique of every prior exercise of Heroes Act authority,” the solicitor general said. “There too, you could say, ‘Well, that only benefits the specific enumerated affected individuals,’ but it’s Congress who defined those individuals, and the secretary acted properly here in giving them relief.”

A top U.S. Department of Education official recently warned that the public health crisis has caused considerable financial harm to student loan borrowers and that its debt cancellation plan is necessary to stave off a historic rise in delinquencies and defaults.
Justice Sonia Sotomayor built on Prelogar’s response, pointing out that throughout the pandemic, different relief measures helped different people. One example is the Paycheck Protection Program, which aimed to offer potentially forgivable government loans to small businesses hurting from the pandemic.
“There’s inherent unfairness in society because we’re not a society of unlimited resources,” Sotomayor said. “Every law has people who encompass it [and] people outside it.”

Legal standing

The biggest obstacle for those trying to challenge Biden’s student loan forgiveness plan has been proving that they’ve been harmed by the policy, which is typically a requirement to have standing to sue.
The six states — Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina — opposing the president’s plan argue that debt forgiveness would lead to a loss of profits for the companies that service federal student loans in their states, particularly MOHELA, or the Missouri Higher Education Loan Authority.
Yet the justices were perplexed as to why the servicers weren’t bringing their own challenges then, and how the states could claim harm on their behalf.
“Do you want to address why MOHELA’s not here?” Justice Amy Coney Barrett asked.
“MOHELA doesn’t need to be here because the state has the authority to speak for them,” Nebraska Solicitor General James A. Campbell said.
Barrett wasn’t satisfied by that answer.
“Why didn’t the state just make MOHELA come then?” she asked. “If MOHELA is really an arm of the state…why didn’t you just strong-arm MOHELA and say you’ve got to pursue this suit?”
Campbell replied: “Your honor, that’s a question of state politics.”
MOHELA recently said its executives had no involvement in Missouri Attorney General Eric Schmitt’s decision to sue.

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The New Road to Retirement

Of the more than 2,250 Medicare Advantage Plan enrollees surveyed for a new report, 51% are “very satisfied” and 38% are “satisfied” with their plan.
If you are not among them, a current opportunity to change your coverage ends March 31.
Here’s what to know.

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For the most part, Medicare beneficiaries in Advantage Plans are happy with their coverage, a new study suggests.
Of the more than 2,250 enrollees surveyed for the report from eHealth, 51% are “very satisfied” and 38% are “satisfied.”

However, if you’re among those who are not thrilled about your 2023 Advantage Plan, you can do something about it.

More from The New Road to Retirement:

Here’s a look at more retirement news.

Your opportunity to make a change ends March 31

Each year between Jan. 1 and March 31, beneficiaries who are unhappy with the choice they made during Medicare’s annual open enrollment period (Oct. 15 – Dec. 7) can switch to a different Advantage Plan. Or, they can drop the one they have altogether in favor of basic Medicare (Part A hospital coverage and Part B outpatient care coverage).
“It’s the time of year when only beneficiaries in Advantage Plans who feel they made the wrong plan selection for 2023 can change it,” said Elizabeth Gavino, founder of Lewin & Gavino and an independent broker and general agent for Medicare plans.
Common reasons to do so include discovering a preferred doctor or other provider is not in network — which means you pay more to see them — or finding out your prescriptions either are uncovered or cost more than anticipated, Gavino said.

Of Medicare’s 64.5 million beneficiaries — the majority of whom are age 65 or older — about 29.1 million were enrolled in Advantage Plans in 2022, according to the Centers for Medicare & Medicaid Services. These plans deliver Parts A and B and usually Part D prescription drug coverage, along with extras such as basic dental and vision.

However, they come with their own cost-sharing structures (i.e., deductibles and copays) and their lists of drugs covered (and their cost), which differ from plan to plan — and are likely to change from year to year.

What to know if you’re dropping your Advantage Plan

If you want to return to basic Medicare instead of having an Advantage Plan, be aware that the move often means losing drug coverage — which means you would have to enroll in a standalone Part D plan.
This matters, because if you go 63 days without the coverage, you could face a lifelong late-enrollment penalty that gets tacked on to your monthly premiums if you do eventually enroll. That charge is 1% of the national base premium ($32.74 for 2023) for each full month you go without drug coverage.
Additionally, if you drop your Advantage Plan, don’t assume that you’ll be able to get a so-called Medigap policy, which many beneficiaries pair with basic Medicare. These plans either fully or partially cover cost-sharing of some aspects of Parts A and B, including deductibles, copays and coinsurance.

However, they come with their own rules for enrolling. So depending on your state, you may need to pass medical underwriting to get approved for a Medigap policy. This makes it worth knowing first that you would be able to be approved, said Danielle Roberts, co-founder of insurance firm Boomer Benefits.
There is an exception to the medical underwriting requirement: If you are within the first year of trying out an Advantage Plan, you generally can return to a Medigap policy without facing underwriting.

You can only make one change during this window

In contrast to Medicare’s annual fall enrollment, when a variety of options were available for those who wanted to modify their coverage, this Advantage Plan-related enrollment period comes with restrictions.
For starters, you can only make one switch. This means that once you move to a different Advantage Plan or drop it for basic Medicare, the change is generally locked in for the year. 
In other words, be sure your new choice will work for the rest of 2023. If you are looking for a more suitable plan, you can use Medicare’s online plan finder.

You can ask your doctor, pharmacy for guidance

Alternatively, if you want to make sure your doctor or other key provider is in network with a plan you’re considering switching to, you can check directly with them, said certified financial planner and physician Carolyn McClanahan, founder of Life Planning Partners in Jacksonville, Florida.
“Call your doctor’s office and ask what their favorite Medicare Advantage Plan is,” said McClanahan, a member of CNBC’s Financial Advisor Council.
You also could check with your pharmacy if you want to confirm your prescriptions are covered. “They see a lot come through, so they often do know which Advantage Plans cover your drug,” McClanahan said. 
Be aware that the current three-month window also differs from fall enrollment in that you cannot switch from one standalone Part D plan to another.  If you picked a Part D plan in the fall open enrollment period based on faulty or misleading information, you can call 1-800-Medicare to see if your situation would allow you to make a change.
Also from Jan. 1 through March 31, separate from the Advantage Plan window: If you missed your initial Medicare enrollment period, you can sign up during this time frame. As of this year, coverage takes effect the month after you enroll; it previously was July 1. More

In March, 32 states and Washington, D.C., will end emergency Supplemental Nutrition Assistance Program aid that helped individuals and families cope with food insecurity during the pandemic.
The average person is projected to receive about $90 less in SNAP benefits per month.
“It’s a huge hunger cliff families are facing,” one expert said.

People shop at a 99 Cents store in Santa Monica, California, on Sept. 13, 2022.
Apu Gomes | AFP | Getty Images

Food stamp recipients may be in for a shock as temporary pandemic enhancements to the Supplemental Nutrition Assistance Program expire, leading the average person to receive about $90 less in benefits per month.
“It’s a huge hunger cliff families are facing,” said Poonam Gupta, research associate at the Urban Institute’s Income and Benefits Policy Center.

As of March, 32 states along with Washington, D.C., Guam and the Virgin Islands will end the emergency allotments that were put in place in response to the Covid-19 pandemic to help individuals and families cope with food insecurity, according to the Center on Budget and Policy Priorities.
Congress terminated SNAP’s emergency increases with the December government funding bill. The broader federal public health emergency is scheduled to end May 11.
The SNAP emergency benefits have already ended in 18 states. For beneficiaries in the remaining locations, the February issuance will be their last with extra pandemic sums.
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Once the extra aid ends, every household in the affected states will receive at least $95 per month less, according to the Center on Budget and Policy Priorities. Some households will see a loss of $250 or more in benefits based on their incomes.

“It will unfortunately leave a lot of families across the country scrambling to stretch their budgets,” Gupta added.

Cuts to result in ‘a really tight budget’ amid inflation

The change comes as inflation is still reflected in higher prices on grocery store shelves. The latest consumer price index data shows double-digit percentage year-over-year price increases for eggs, butter and margarine, frozen vegetables, lettuce, and cereal and baking products.
Once SNAP’s emergency allotments phase out, benefits will average about $6.10 per person per day, according to the Center on Budget and Policy Priorities.

“That’s a really tight budget if you’re talking about low-income families,” said Ellen Vollinger, SNAP director at the Food Research and Action Center.
Starting this month, tens of millions of people will see large amounts of benefits missing from what they otherwise would have expected, she noted.
“This is a very precipitous change,” Vollinger said. “It hasn’t given a lot of time for customers to even know this is coming.”

It will unfortunately leave a lot of families across the country scrambling to stretch their budgets.

Poonam Gupta
research associate at the Urban Institute’s Income and Benefits Policy Center

The Food Research and Action Center is one of several organizations, including the U.S. Department of Agriculture and state agencies, that are working to spread the word about the change to make sure people are not surprised by a benefit shortfall at the grocery store checkout counter, according to Vollinger.
Meanwhile, some states are considering or have enacted state funds to help replace the lost federal benefits, either on a temporary or permanent basis. Last year, New Jersey enacted a SNAP floor of $95 per household.
The burden is now on states, cities and counties to do more as the federal government has shifted the problem and costs associated with it downstream, Vollinger said.
The Food Research and Action Center has advocated for congressional legislation to address the problem. That includes one bill, the Closing the Meal Gap Act, that would increase the minimum SNAP benefit and eliminate certain eligibility limits. The proposal had the support of more than 100 House Democrats and certain Senate Democrats in 2021 and 2022.
Spending on SNAP is slated to be part of the debate as lawmakers look to pass a new farm bill.
However, a reinstatement of the pandemic-era benefit enhancements is unlikely, Gupta said. In fact, some House lawmakers have called for cutting back on SNAP spending, Vollinger noted.

Food bank braces for increased demand

Los Angeles County Regional Food Bank workers help with food distribution in Willowbrook, California, on April 29, 2021.
Frederic J. Brown | Afp | Getty Images

The Urban Institute’s research shows the policy helped keep 4.2 million people above the poverty line. It also helped reduce poverty by 10% and child poverty by 14%. The reduction in poverty was highest for Black and Latino individuals.
As the extra benefits end, people will have to consider whether they can still afford to put the same amount of food on the table, Vollinger said.
Often that may mean an adult missing a meal. At worst, it could mean a child missing a meal, she said.
Residents of California will receive their last February emergency allotment in March, along with residents of a small group of other states including Hawaii, Kansas, Massachusetts, Minnesota, Nevada and Vermont.

The Los Angeles Regional Food Bank is bracing for a surge in demand when the extra pandemic benefits drop off.
“We’re very worried about it, because this is a huge drop” in California’s SNAP benefits, known as CalFresh, said Michael Flood, the food bank’s president and CEO. The food bank serves 800,000 county residents per month with 600 partner agencies and food pantries.
The food bank has been increasing its food purchases in recent weeks to anticipate increased demand for food assistance, Flood said.
Yet it is unclear how many more individuals and families may seek help. In the aftermath of the pandemic’s onset in 2020, the food bank was serving 1 million county residents, Flood said.
“If the resources are there, we know we can scale up and provide help,” Flood said. “But it’s not without its challenges.”

What to know if you’re on SNAP

You will continue to receive your regular benefits, even after the pandemic enhancements end, the Center on Budget and Policy Priorities said.
If you have questions about your benefits, contact your state human services agency.
If you’re seeking assistance, you may try dialing 211 to connect to agencies and community organizations.
If your personal situation has changed — your income has recently declined or certain qualifying expenses have increased — you may qualify for a higher regular benefit after updating your information with your state human services agency, according to the center.

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Experts have predicted the Supreme Court would rule against President Joe Biden’s student loan forgiveness plan, but some changed their minds after oral arguments, praising the lawyer who presented the administration’s case.
Solicitor General Elizabeth Prelogar’s “preparation, poise and power were impressive,” said higher education expert Mark Kantrowitz.

U.S. Solicitor General Elizabeth Prelogar
Artist: Bill Hennessey

The government’s top Supreme Court lawyer may have saved President Joe Biden’s $400 billion student loan forgiveness plan from what experts considered all but certain defeat.
Experts lobbed praise on Solicitor General Elizabeth Prelogar, the lawyer who represented the Biden administration in front of the nine justices Tuesday.

“The Biden administration now seems more likely than not to win the cases,” said higher education expert Mark Kantrowitz.
“Her preparation, poise and power were impressive,” Kantrowitz said.
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In contrast, the attorneys for plaintiffs opposed to the program were less than stellar, Kantrowitz said. “It was like the difference between a star quarterback and two tiddlywinks players,” he said.
University of Illinois Chicago law professor Steven Schwinn agreed: “Prelogar knocked it out of the park.”

“I do think she could have influenced or even changed the thinking of two justices, maybe more,” he added.
On Wednesday, Fordham law professor Jed Shugerman tweeted that he remains “struck by SG Elizabeth Prelogar’s brilliant performance.”

“She may have snatched victory from the jaws of defeat,” Shugerman wrote.
The nine justices considered two legal challenges to Biden’s plan to cancel up to $20,000 in student debt for borrowers. Six GOP-led states — Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina — had brought one of the lawsuits, and the other was backed by the Job Creators Network Foundation, a conservative advocacy organization.
Prelogar argued that the president was acting squarely within the law to avoid borrower distress during national emergencies and that plaintiffs had not shown in any way that they’d be harmed by the policy, which is typically a requirement to establish so-called legal standing.
When the Biden administration rolled out its student loan forgiveness plan in August, it cited the Heroes Act of 2003 as its legal justification.

The Biden administration now seems more likely than not to win the cases.

Mark Kantrowitz
higher education expert

That law, which is a product of the Sept. 11 terrorist attacks, allows the U.S. secretary of education to “waive or modify” student loan programs to ensure borrowers aren’t left worse off because of a national emergency. Opponents of the president’s plan say canceling hundreds of billions in dollars in student debt for tens of millions of Americans goes far beyond the scope of the Heroes Act.
Justice Clarence Thomas, who kicked off the justices’ questioning of the Biden administration, seemed to echo that view.
“We’re talking about half a trillion dollars and 43 million Americans,” Thomas said. “How does that fit under the normal understanding of ‘modifying'”?
Prelogar countered that the heart of the provision’s purpose was to allow the secretary to make sure borrowers don’t suffer financially because of their loans during a crisis and that’s exactly what the Biden administration’s policy does.

Supreme Court justices listen to arguments.
Artist: Bill Hennessey

A top U.S. Department of Education official recently warned that the public health crisis has caused considerable financial harm to student loan borrowers and that its debt cancellation plan is necessary to stave off a historic rise in delinquencies and defaults.
“It couldn’t have surprised Congress one bit that in response to hardship posed by a national emergency, the secretary might consider similarly providing discharge if that’s what it takes to make sure borrowers don’t default,” Prelogar said.
Justice Elena Kagan agreed.
“This is an emergency provision,” Kagan said at one point, posing a hypothetical that the crisis had been an earthquake rather than a pandemic.
“You don’t think Congress wanted to give … the secretary power to say, ‘Oh, my gosh, people have had their homes wiped out, we’re going to discharge their student loans”?

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Increasingly, high school students are rethinking the value of college.
The rising cost of college and ballooning student loan balances have played a large role in changing views about the higher education system.
Still, earning a degree is almost always worthwhile, research shows.

Ben Kirkhoff, a high school senior at Cretin-Derham Hall in St. Paul, Minnesota, knows that a four-year college degree isn’t for him.
Even though his parents have a college savings account for him, he said money is still a factor. “I don’t want to put myself and my family in a lot of debt.”

Instead, Kirkhoff, who is 17, will attend Dakota County Technical College in Rosemount, Minnesota, next fall to become an electrician. The two-year program feeds into an apprenticeship and then a full-time position. “I’ll have a job right out of college and I know I’ll have a lot of job opportunities moving forward,” he said.
His parents support his decision to pursue a certification in a skilled trade rather than get a bachelor’s degree, he said.
Although Kirkhoff is the only one of his friends who decided against a four-year school next year, more high school students nationwide are questioning the value of college.
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For decades, research showed that earning a degree is almost always worthwhile.

Bachelor’s degree holders generally earn 75% more than those with just a high school diploma, according to “The College Payoff,” a report from the Georgetown University Center on Education and the Workforce — and the higher the level of educational attainment, the larger the payoff.
Finishing college puts workers on track to earn a median of $2.8 million over their lifetimes, compared with $1.6 million if they only had a high school diploma, the report found. 

However, some experts say the value of a bachelor’s degree is now fading as college costs remain high and a shortage of workers increases opportunities in the labor force — with or without a diploma.

Most high-paid jobs still require a college degree

A growing number of companies, including many in tech, are dropping degree requirements for middle-skill and even higher-skill roles. In his State of the Union address last month, President Joe Biden said some new jobs are “paying an average of $130,000 a year, and many do not require a college degree.”
“Good luck” finding those roles, said Anthony Carnevale, director of Georgetown’s Center on Education and the Workforce.
“Jobs for people without college degrees that pay over $130,000 a year make up 1% of the American economy.”

Over time, occupations as a whole are steadily requiring more education, according to another upcoming report by Georgetown’s Center on Education and the Workforce. And the fastest-growing industries, such as computer and data processing, still require workers with disproportionately high education levels compared with industries that have not grown as quickly.

Students from underserved communities are looking at education through a practical lens.

Dan Fisher
president and CEO of ECMC Group

In 1983, only 28% of jobs required any postsecondary education and training beyond high school. By 2021, that had jumped to 68%, the report also found. In another decade, it will climb to 72%.
To be sure, the recently enacted infrastructure law will create more jobs for workers with a high school diploma or less. According to the White House, the legislation will add as many as 1.5 million jobs a year for the next 10 years. “And they will be good jobs but after that, those jobs may be gone,” Carnevale said.

Students assess education ‘through a practical lens’

Most Americans still agree that a college education is worthwhile when it comes to career goals and advancement. However, only half think the economic benefits outweigh the costs, according to a separate report by Public Agenda, USA Today and Hidden Common Ground — and young adults are particularly skeptical.
The rising cost of college and ballooning student loan balances have played a large role in changing views about the higher education system, which many think is rigged to benefit the wealthy, the report found. 
Only 45% of students from low-income, first-generation or minority backgrounds believe education after high school is necessary, according to a study by ECMC Group.

High schoolers are putting more emphasis on career training and post-college employment, the nonprofit found after polling more than 5,000 high school students six times since February 2020.
“Students from underserved communities are looking at education through a practical lens,” said Dan Fisher, president and CEO of ECMC Group. “They want to know what the cost is, how they’re going to pay, how they will get through everyday life and whether there’s a job at the end of the road.”
More than half, or 53%, are open to an alternative path, and nearly 60% believe they can be successful without a degree.
Yet most said they feel pressure — mainly from their parents, community and internally — to go to a four-year school, even though community college or career and technical training may make more sense.

Ulrich Baumgarten | Ulrich Baumgarten | Getty Images

In part, there is a bias against vocational school that has been difficult to overcome, Fisher said. “We really need to destigmatize the idea that career and technical training is a lesser form of post-secondary education.”
Historically, interest in alternative career and technical training programs spikes during economic downturns, Carnevale said. Still, he advises students to find some path to higher education, whether through community college or an employer-sponsored tuition reimbursement plan.
Getting a degree offers the best shot at landing in the middle class, Carnevale said. “You have to figure out a strategy.”
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Although the number of fraud reports dropped to 2.4 million in 2022 from 2.9 million in 2021, the aggregate amount lost to the scams rose 44%.
Imposter scams were the most prevalent form of fraud reported, costing victims $2.6 billion, up from $2.4 billion in 2021.
Here are some expert tips to help you avoid becoming a victim of fraud.

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Scammers are making more money per episode of fraud, new government data suggests.
While the number of fraud reports recorded through the Federal Trade Commission’s database fell to 2.4 million in 2022 from 2.9 million, the aggregate loss from those instances reached nearly $8.8 billion. That’s up 44% from the $6.1 billion reported in 2021 to the FTC.

Investment scams cost the most — more than $3.8 billion — compared with other categories and more than double the $1.8 billion reported in 2021. The second-highest reported loss amount came from imposter scams — the most prevalent form of fraud reported — with losses of $2.6 billion reported, up from $2.4 billion in 2021.
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Imposter scams involve criminals pretending to be someone else to steal the victim’s money or personal information. This could include romance scams or people claiming to be a government official or a relative in distress, for example.

Young adults fall prey to scams more often

Young adults (ages 20 to 29) reported losing money more often than older adults (ages 70 to 79). But when the latter did lose money, they lost more than anyone else, according to the FTC. And if people paid a scammer, the biggest losses came from bank transfers ($1.5 billion) and cryptocurrency ($1.4 billion).

Scams that started on social media resulted in people reporting losing $1.2 billion. Additionally, there were more than 1.1 million reports of identity theft in 2022. 

How to avoid falling victim to fraud

Here are some tips to help you avoid being the victim of fraud, according to Erin Witte, director of consumer protection for the Consumer Federation of America:

Slow down: Scammers “often create a false sense of urgency, making you think you have to respond immediately or something terrible will happen,” Witte said. “Slow down and take a minute to digest what you are hearing or reading.”
Avoid checks or gift cards: “Be wary of these payment methods,” she said. “Being asked to cash a check and return a portion, or being asked to purchase gift cards are big red flags that it is likely a scam.”
Ask questions: “Ask as many questions as you can to the person calling or emailing you,” she said. “Also ask a friend or someone you trust what they think about what you’re being told — they can often give you some perspective about whether the information you’re being provided is legitimate.”
Make a report: “Tell your local consumer affairs agency, your state attorney general, and the Federal Trade Commission about your experience,” Witte said. “You may help other people avoid being scammed.”

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