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Tipping at full-service restaurants fell to the lowest level since the start of the pandemic, according to a recent report.
Cash-strapped consumers with tip fatigue are pushing back, experts say.

Tipping 20% at a sit-down restaurant is still the standard in the U.S., according to most etiquette experts. Diners disagree.
After holding steady for years, tipping at full-service restaurants fell to 19.4% in the second quarter of 2023, according to online restaurant platform Toast’s most recent restaurant trends report, notching the lowest average since the start of the pandemic.

“Tip fatigue” is largely to blame, the report found.

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“During Covid, everyone was feeling generous,” said Eric Plam, founder and CEO of San Francisco-based startup Uptip, which aims to facilitate cashless tipping. 
“The problem is that it reached a new standard that we all couldn’t really live with,” he added, particularly when it comes to tipping prompts at a wider range of establishments, a trend also referred to as “tip creep.”
With more opportunities to tip and predetermined point-of-sale options that can range from 15% to 35% for each transaction, gratuity became less about rewarding good service, he said.
Now, consumers are pushing back.

Inflation, surcharges weigh on diners

Two-thirds of Americans have a negative view about tipping, according to a recent report by Bankrate, especially when it comes to contactless and digital payment prompts. 
Higher prices due to persistent inflation have also left more consumers feeling cash-strapped.
Further, the increasing use of surcharges has played a role, according to Toast. Fees for restaurant employee health insurance, credit card transactions and even tap water make diners want to leave less on the total tab, Plam said. “They don’t need to tip as much if they’re covering health care,” he said. “That’s the quick calculation.”
These days, fewer consumers also said they “always” tip when dining out compared with last year, according to Bankrate, or for other services, such as ride-hailing services, haircuts, food delivery, housekeeping and home repairs.

Brand New Images | Getty Images

Yet, since transactions are increasingly cashless, having a method to tip workers in the service industry earning minimum or less than minimum wage is critical, Plam added.
Under federal law, employers can pay workers as little as $2.13 per hour — much less than the minimum wage — if the tips they receive bring them up to a baseline salary. (Some states are now increasing the hourly minimum wage for tipped employees or eliminated tipping wages altogether.)
For restaurant workers, tips can boost wages by about 90%, according to data provided to CNBC from payroll platform Gusto.
Still, tips are down slightly from a year ago, Gusto also found.
“What we are seeing is a settling at a lower level in the wake of the post-pandemic surge,” said Luke Pardue, an economist at Gusto. 
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Supplemental Security Income provides monthly benefits aimed at keeping beneficiaries out of poverty.
But the program’s asset limits have not been adjusted for inflation in decades.
Washington lawmakers are renewing a push to change that.

Halfpoint Images | Moment | Getty Images

A federal program that provides monthly income to elderly, blind and disabled Americans to provide for their basic needs has not been updated in about 40 years.
On Tuesday, Washington lawmakers renewed a push to update rules associated with the program known as Supplemental Security Income, or SSI.

The proposal, called the SSI Savings Penalty Elimination Act, would raise the program’s asset limits to $10,000 for an individual and $20,000 for couples, up from $2,000 and $3,000, respectively.
The reintroduced proposal is by Sens. Sherrod Brown, D-Ohio, and Bill Cassidy, R-La.
“It’s an easy fix, encourages work, allows savings and gets people out of poverty,” Cassidy said Tuesday during a Capitol Hill event.
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Today, SSI has about eight million beneficiaries. The program is managed by the Social Security Administration. The average monthly benefit is $585 for individuals and the most people may receive is $794 — less than the minimum wage, Brown noted.

“Right now, arbitrary and outdated restrictions prevent these Americans from saving money for emergencies,” he said. “And they punish people who want to do the right thing and save money.”

Asset limits hamper beneficiary savings

Emily Demko, 18, of Athens County, Ohio, has Down syndrome and, in addition to being an artist, works three jobs at two local restaurants.
But the asset limits for the monthly SSI checks she relies on means she cannot take on extra hours when asked at the Applebee’s where she works. If she sells one of her paintings, she may have to cut back on work at her other jobs.
“I want to live a full life, make money, save money and [be] independent without losing Social Security,” Demko said at Tuesday’s Capitol Hill event.
Going over SSI’s cap on savings and other assets would mean she may be deemed ineligible for benefits, have to start the application process over or pay back the extra money, her mother, Margaret Demko, noted.

“Increasing the asset limit to an appropriate up-to-date amount would undo so many of these burdens,” she said.
The creation of the SSI program more than 50 years ago was an important development that missed a crucial detail: regular adjustments for inflation, noted Cassidy.
That has forced beneficiaries to choose between saving up for an emergency or losing their safety net, he said.
“Everyone who can work should be working,” Cassidy said, while touting the asset limit increase.

I think we can agree all Americans should have the ability to sock away a few dollars for an unexpected financial emergency.

Jenn Jones
vice president of financial security and livable communities at AARP

While the proposal has bipartisan support in both the Senate and the House, it remains to be seen how far lawmakers may be able to push the proposal.
Organizations such as AARP and JPMorgan Chase expressed their support for the change.
SSI’s “draconian” asset limits have prevented some older Americans from qualifying for the program, even though they have low incomes, noted Jenn Jones, vice president of financial security and livable communities at AARP.

“I think we can agree all Americans should have the ability to sock away a few dollars for an unexpected financial emergency, and SSI beneficiaries are no exception,” Jones said.
At JPMorgan Chase, SSI’s strict asset limits make employees who receive benefits worry that receiving a bonus or raise may put them over the cap on earnings, noted Bryan Gill, global head of the office of disability inclusion at the firm.
When that happens, those employees often cut back on their hours to make sure they stay within the program’s required thresholds.
“And they often cannot participate in our 401(k) program, where JPMorgan provides matching contributions to help with wealth accumulation,” Gill said. More

The federal government provided states with nearly $24 billion in stabilization funds to keep child care services afloat as part of the American Rescue Plan Act of 2021.
However, more than 70,000 child care providers who benefited are likely to close after the program expires this month, shutting down care for 3.2 million kids, a think tank estimates.
Experts say that systemic change, such as broader parental leave and more public funding for child care, must be involved for child care to improve at a larger scale.

Lauren Rosenberg, right, of Portland, Maine, and her nanny, left, set out toys for Rosenberg’s children.
Portland Press Herald | Portland Press Herald | Getty Images

Child care is already scarce and expensive — and the stakes are about to get higher.
The federal government provided states with nearly $24 billion in stabilization funds to keep child care services afloat as part of the American Rescue Plan of 2021.

That program expires at the end of this month.
More than 70,000 child care providers who benefited are likely to close as a result of lost funding, according to estimates from The Century Foundation, a liberal think tank. That would affect 3.2 million kids and slash $10.6 billion in revenue from lost worker productivity as parents reduce hours or leave jobs in the scramble to find new care.
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Researchers came to these figures based on data from a survey of 12,000 early childhood educators from all states and settings — including faith-based programs, home providers, Head Start programs and child care centers — as well as data from the U.S. Department of Health and Human Services Office of Child Care.
“Quality, affordable child care is already scarce, and the child care workforce is already badly underpaid and under great stress,” said Lauren Hipp, national director for early learning at advocacy group MomsRising. “As pandemic child care relief runs out, all that is likely to get worse.”

The share of working mothers with young children is at historic levels, exceeding other working-age women’s labor participation growth from 2020, The Hamilton Project found. However, experts are concerned that this loss of child care options will pull more people, especially women, back out of the workforce.

Child care ‘is a public good’

Experts say that systemic change, such as broader parental leave and more public funding for child care, must be involved for child care to improve at a larger scale.
Child care “is a public good just as much as having clean water, having a strong education system, having access to health care,” said Hipp. “The access to child care has an immediate impact on everyone in society.”
Child care providers want to be able to support families but can’t make it work on the amount they make, she added. The hourly wage of a child care worker in 2022 was $13.71 per hour or $28,520 annually, according to the U.S. Bureau of Labor Statistics.
“If you work in a preschool private child care center versus a kindergarten classroom, that wage differential is huge,” said Taryn Morrissey, a public policy professor at American University. “The wage difference is quite large because the K-through-12 education sector has public financing.”

If you have two kids under 5, in most parts of the country, you’re really struggling.

Taryn Morrissey
Child and family policy researcher

Teachers in elementary, middle and high schools generally make higher salaries. While kindergarten and elementary school teachers roughly earned $61,620 last year, high school teachers made $62,360, the U.S. Department of Labor has found.Plus, teachers enjoy an array of benefits, such as health insurance and retirement plans, while oftentimes early care and education workers do not, she added.
Moreover, parents often deal with early child care costs when they are at the lowest earning years of their careers, without low-interest loans or subsidies to lean on, said Morrissey.
The national annual cost of child care was about $10,853 for one child in 2022, the organization Child Care Aware of America found. In 2023, 67% of parents reported spending 20% or more of their household income on child care, Care.com found.

“If you have two kids under 5, in most parts of the country, you’re really struggling,” Washington, D.C.-based Morrissey added.
While child care issues financially affect women in particular in both the short term and long term — including in a loss in wages and retirement savings — the economy also takes a hit. When parents don’t have access to affordable, reliable child care, the U.S. loses about $57 billion a year in economic productivity and revenue, according to a report from Council for a Strong America.
“All of these factors mean that it impacts and is important to people who do or do not have children,” said Hipp.

Use the benefits you have available

Your workplace may have some options to help you find care, such as backup care providers or on-site child care. Other companies offer benefits to help finance child care costs. Some companies provide employees with a dependent-care flexible spending account, or FSA, allowing households to set aside up to $5,000 in pretax dollars from a paycheck.
If you are expecting, you may have access to workplace and state programs for paid leave that can give you and your partner time at home, stretching your time to find a caregiver.
Workplace benefits, including parental leave, may be a resource for many workers. In 2022, 35% of organizations offered employees paid maternity leave, according to the Society for Human Resource Management, and 27% have paid paternity leave. Those figures are down from 2020 rates of 53% and 44%, respectively.

Outside of workplace benefits, 13 states and the District of Columbia offer paid family leave for workers, said Katherine Gallagher Robbins, senior fellow of The National Partnership for Women and Families. Those states are California, Colorado, Connecticut, Delaware, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, Oregon, Rhode Island and Washington.
“Make sure you are taking advantage of the policies that you do have in place and where they do exist,” she added.

Cast a wide net for care

With fewer child care providers available, families might need to get creative and consider different options in their area, experts say. That might include talking with other parents about starting a child care co-op or sharing a nanny.
Some states and cities offer universal preschool programs where kids can enroll into the public education system before the age of 5, added Morrissey.
Washington, D.C., and six states have implemented universal preschool, such as Florida, Iowa, Oklahoma, Vermont, West Virginia and Wisconsin, the National Institute for Early Education Research found. Washington, D.C., is the only jurisdiction to provide universal preschool at ages 3 and 4, the institute notes.

Hispanolistic | E+ | Getty Images

Georgia, Illinois, Maine and New York have universal preschool policies but have yet to put them in practice. Meanwhile, California, Colorado, Hawaii and New Mexico passed laws to provide universal preschool in the past year.
Also consider signing up on waitlists at child care centers early, experts say. While putting your child on the waitlist oftentimes does not guarantee a spot, it is a line of security worth having.

Lean on your community

Additionally, think about ways you can lean on your community or support system to help care for your child, experts say.
Some families are asking for care help from friends and family members, or even relocating to be closer to family. Others are working multiple jobs or adjusting their work schedules, according to Care.com.
“There’s a reason that there’s a proverb ‘it takes a village to raise a child,'” said Hipp.  More

Life Changes

The Biden administration recently announced it would forgive $39 billion in student debt for hundreds of thousands of borrowers as a result of fixes to the lending system’s income-driven repayment plans.
Wendee Goles found out she qualified.
“I wake up in the morning, and the first thing I think is, ‘I don’t have a student loan’ and I cry,” Goles, 53, said.

Wendee Goles
Courtesy: Wendy Goles

In July, Wendee Goles saw headlines that the Biden administration planned to cancel the student loans of more than 800,000 people. Even though she seemed to fit the description of eligible borrowers — those who had made payments for decades through an income-driven repayment plan — she didn’t get her hopes up.
Ever since Goles graduated from the School of The Art Institute of Chicago in the early 2000s, her student debt was a constant source of anxiety. Her original loan balance of around $50,000 had only grown over the years because she wasn’t able to make consistent payments. Even when she tried to, the interest still accrued faster. Along the way, she got confusing information from her loan servicers, and her lender was always changing.

Goles resigned herself to the fact that her education debt, and its myriad consequences, would always be a part of her life.
“I knew I was going to take this debt to my grave,” said Goles, 53, a painter and educator.

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But on Aug. 18, when she signed into her loan account, she was in shock: Her balance had gone from $60,000 to $0.
“It was incredible,” Goles said. “My face hurt from smiling.”
The Biden administration announced this summer that it would automatically forgive $39 billion in federal student debt for hundreds of thousands of borrowers. The news, separate from President Joe Biden’s proposed sweeping forgiveness plan that was eventually struck down by the Supreme Court, was a result of fixes to the lending system’s income-driven repayment plans. Under those plans, people are supposed to get their loans forgiven after 20 years or 25 years of payments, but in many cases that wasn’t happening.

The debt relief grants many borrowers, like Goles, a chance to see another way of living.

Balancing life dreams and monthly bills

Goles has a studio in the basement of her house in Villa Park, Illinois, where she works anywhere from five hours to five months on a single painting. Her favorite piece is the one she did of her father, who died in 2019. “I captured something in him that was very special to me,” she said. “It’ll never be for sale.” Her paintings have been privately commissioned and appeared in galleries.
She began drawing at 13 and never stopped, eventually moving to painting, puppetry and set design.

Artist Wendee Goles’ painting of her father, Greg, from 2008. He died in 2019.
Artist: Wendee Goles

“I don’t think I can focus in life except for that,” she said. “It takes me somewhere else.”
Still, Goles’ monthly student loan bill, which was last around $450, meant that she always had to balance trying to make it as an artist and raising two children with working other jobs.
For close to 20 years, she waited tables. She currently works as a sales representative at a manufacturing company.
“Job stress was always a big deal,” she said.

I feel like I’m just starting my life.

Wendee Goles

Whenever Goles found herself with extra cash, she threw it at her student debt. Her balance seemed only to rise, and so some relatives suggested she just stop paying it. But she was scared of the risks. Goles knew she wanted to be able to help her children financially as they got older. “I didn’t want my credit to be affected,” she said. At times, she put thousands toward her student debt in one payment.
As a result, most of her life she never had any savings. “It was scary,” she said. “Jobs come and go.”
When medical bills for the family came in, she only sent back partial payments. And so her student debt led to medical debt.
When her husband lost his job a little before 2008, it was an especially hard time. (They eventually couldn’t afford their house and had to move.) She put her student debt into forbearance, and it grew faster from interest.

Student debt ‘factored into every decision’

Arrows pointing outwards

Goles’ painting of a fisherman.
Artist: Wendee Goles

The debt was constantly on her mind.
“It factored into every decision I made,” Goles said. “How much can I spend on groceries? Can we go on vacation?”
Although it was hard to believe at first, she’s finally coming around to the idea that she doesn’t have student debt any more.
She and her husband recently celebrated by getting dinner at a fancy restaurant, where they ordered steaks and mango margaritas.
“I wake up in the morning, and the first thing I think is, ‘I don’t have a student loan,’ and I cry,” Goles said.

In the following months, however, a more somber truth has set in.
She can only start salting away money now, in her 50s. At this point, she doesn’t know if she’ll be able to retire.
She’s also thought about how much her student debt and the job stress she faced limited her as an artist. Often, she didn’t have enough cash to buy certain art supplies. On many nights, when she got home from waiting tables, she was too tired to paint.
“I feel like I’m just starting my life,” Goles said. More

When working toward financial goals, experts say individuals often neglect to plan for their personal happiness.
By creating an “opportunity fund,” you may be able to quickly reset if you want to change jobs or move.
Even celebrating small wins may help you create momentum toward bigger financial progress.

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When it comes to saving and investing, many investors tend to think of two key goals — funding emergencies that could crop up in the short term or retirement that may be years away.
But as many individuals continue to reconsider their goals following the Covid-19 pandemic, experts say that that thinking is changing. And that’s prompting a need for investors to place a new priority on funding nearer-term goals, say financial planners who work with them.

Enter the “opportunity fund,” as some experts are calling it.
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“Covid kind of changed the way a lot of us think about the way we want to live, where we want to live, what opportunities might come — career, life, you name it,” said Brent Weiss, a certified financial planner and head of financial wellness at Facet, a registered investment advisor firm based in Baltimore.
“Now we’re starting to see people say, ‘I don’t know that I want to put all of my money in this retirement fund for 30 years away from today; I might want to do something different in three or five years,'” Weiss said.
Those goals may include starting a company, going back to school or switching jobs or careers, Weiss said. Or it may include big-ticket vacations or experiences.

‘What is the life you want to live?’

Identifying such opportunity fund goals can be a financial wake-up call.
Weiss said he typically begins meetings by asking clients what matters most to them and what do they want to do, particularly in the next three to five years.
“What is the life you want to live?” Weiss said he asks them.
Carolyn McClanahan, a CFP and founder of Life Planning Partners in Jacksonville, Florida, said she gives a talk titled, “Are you happy now?”

“When you make that mindset of maximizing the clients’ life now, it really changes the conversation,” said McClanahan, who is also a member of the CNBC FA Council.
For example, instead of focusing on retirement planning with someone who hates their job, more immediate questions should be asked, such as what can be changed to make the position more likeable or can they change careers, she said.
The savings then becomes all about furthering those transitions alongside short-term and long-term goals.
“By focusing on planning for now, it makes the client more resilient for whatever the future throws their way,” McClanahan said.
To find ways to build an opportunity fund to improve your life, three tips may help.

1.  Treat money as a tool

Start by getting clear on what you want to achieve and when, Weiss advised. From there, start to identify what kind of contributions you may need to help achieve your goals.
“Money is just a tool to help you achieve success, however you define it,” Weiss said.

2. Match your investments to your goals

Boonchai Wedmakawand | Moment | Getty Images

The time horizon you identify for what you want to achieve should help guide where you save or invest the money to pay for those items on your to-do list.
That may include creating a separate strategy for three- to five-year goals apart from emergency or retirement funds, which may include high-yield savings accounts or bonds, Weiss said.
However, McClanahan said it can be OK to keep liquid funds for both emergencies or near-term life goals together.
For goals less than five years away, “there’s no reason to invest that in the stock market,” she said.

3. Celebrate small wins

Regardless of your financial goal, making progress can sometimes feel like an uphill battle. That makes it important to regularly celebrate small wins, Weiss said.
For example, if you have credit card debt and put all of your free cash flow toward paying those balances down, it will feel very much like a diet.

“It’s going to be emotionally straining,” Weiss said. “You’ll probably relapse in three months and go back to your old ways.”
Instead, if you allocate a certain amount of funds to ways to celebrate your progress — say by buying dinner out after paying down a credit card balance — you will still be able to enjoy your money while working toward your goals.
“Your mindset matters,” Weiss said. “If we focus only on the money part of life, and we forget about our mindset and our psychology, we’re never going to start creating the change or success that we want to see.” More

The third-quarter estimated tax deadline for 2023 is Sept. 15, and applies to income from self-employment, small businesses, investments, gig economy work and more.
Typically, you need to make estimated payments if you’re expecting an annual tax liability of $1,000 or more.
But you can avert an IRS penalty by paying the lesser of 90% of taxes for 2023 or 100% of your 2022 levies if your adjusted gross income is less than $150,000.

Artistgndphotography | E+ | Getty Images

Sept. 15 is fast approaching — and if you’re not withholding taxes from your income, it’s time to send a payment to the IRS.
Many employers withhold taxes from every paycheck, but freelancers, self-employed workers, small business owners, investors and others pay on their own via quarterly estimated tax payments.

Typically, you must make quarterly estimated payments if you’re expecting an annual tax liability of $1,000 or more. Last week, the IRS reminded filers that these payments can help “avoid a surprise at tax time.”
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“Estimated tax payments are crucial for meeting tax obligations throughout the year, avoiding penalties and staying on top of your finances,” said Sean Lovison, a Philadelphia-area certified financial planner with WJL Financial Advisors. He is also a certified public accountant.
It’s important to calculate tax payments accurately, pay on time and to consider meeting the “safe harbor” rule to avoid underpayment penalties, Lovison said.
“Keep records, monitor your tax situation, and seek professional guidance for a smooth tax experience,” he said.

Meet the ‘safe harbor’ requirements

Since the U.S. tax system is “pay-as-you-go,” you may face penalties for not staying current, said CFP Kathleen Kenealy, founder of Katapult Financial Planning in Woburn, Massachusetts.
If you miss any of the four estimated tax payment deadlines for 2023 — April 18, June 15, Sept. 15 or Jan. 16, 2024 — you’ll incur a late penalty of 0.5% of your unpaid balance per month or partial month, up to 25%, plus interest.

However, the IRS has a “safe harbor” to avoid underpayment penalties, Kenealy explained. You meet the requirements by paying at least 90% of the current year’s tax liability or 100% of last year’s taxes, whichever is smaller.
But the rule is “a little different for high-income taxpayers,” she said. If your 2022 adjusted gross income was $150,000 or more, you need to pay the lower of 90% of the current year’s tax liability or 110% of last year’s taxes to meet the safe harbor requirement for 2023. Adjusted gross income can be found on line 11 of your 2022 tax return.

How to make estimated tax payments

Electronic payments are the “easiest, fastest and most secure” option for estimated tax payments, according to the IRS.
Online options include payments through your online account, via Direct Pay, the Electronic Federal Tax Payment System and more. However, you’ll incur a fee for debit and credit card payments. You can learn more about how to make payments here. More

Interest rates are higher than they have been in years, and so are the potential returns on cash.
That is changing conversations financial advisors have with their clients.
Here’s what those experts say individual investors should keep in mind about their cash holdings now.

Xavier Lorenzo | Moment | Getty Images

Not long ago, it was common to earn low returns on cash — less than 1%.
But after the Federal Reserve embarked on a series of interest rate increases to tamp down inflation, that has changed. Now, investors may get as much as 5% or more interest on their savings — the most they have been able to earn in about 15 years.

“What I hear from advisors these days is the phrase, ‘This is real money now,'” said Michael Halloran, head of partnerships and business development at MaxMyInterest, a company working with advisors and consumers to identify best interest rates on cash.
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When rates were low, cash was more of an afterthought during reviews with clients, according to Heather Ettinger, chairwoman of Fairport Wealth in Cleveland, Ohio.
“Now, I look at those numbers, and it’s like, ‘Wow, it’s not all bad to be sitting on some cash,'” Ettinger said.
The more cash you have, the more the interest can add up.

Investors with portfolios of $1.5 million or $2 million may be holding as much as $300,000 or $400,000 in cash, noted Halloran. At 5%, that may earn $25,000 to $30,000 per year. Over 10 years, that may add up to $300,000, he said.
Even more modest cash sums may still provide meaningful returns. A $50,000 cash reserve earning 5% interest would have $2,500 in interest income over the course of a year, noted Steve Stelljes, president of client services at The Colony Group, which has offices in several states.

‘Almost all of this cash is sitting in the wrong place’

Yet all savers are susceptible to making the same mistake — not putting their money in accounts that provide the best yield.
Just 1 in 5 savers have competitive interest rates of 3% or better on their cash, a Bankrate survey from earlier this year found.
Just 31% of those with incomes of $100,000 or more were earning at least 3% on their cash.

Yet savers in that income group were most likely to be getting higher rates. Only 19% of savers with incomes between $80,000 and $99,999 were earning 3% or more on their savings, as were 22% of those with incomes between $50,000 and $79,999, and 17% of those under $50,000.
“Here’s this $17 trillion industry, and almost all of this cash is sitting in the wrong place,” said Gary Zimmerman, CEO of MaxMyInterest.
Experts say it’s an issue savers need to address.
“Every investor should have their reserve savings working for them,” said Max Lane, CEO of Flourish, a fintech company providing a cash management product to advisors.
“There’s no reason somebody shouldn’t be getting at least 4% right now,” Lane said.
Here are several mistakes with cash that financial advisors say investors should try to avoid.

Mistake 1: Not shopping around for the best rates

While many savers may know they can get better interest on their money, it is very easy to do nothing.
“Inertia is one of the strongest powers in nature,” said Tim Harrington, a certified financial planner and founder of Longview Financial Advisors, which is based in San Rafael, California.
For savers who are keeping large balances in accounts providing low interest rates, Harrington said he tries to explain to them that they are losing spending power over time.
While a brick-and-mortar bank may be offering 0.25% interest on savings, inflation is 3.2%, based on the latest consumer price index data.
“You should shop around,” Harrington said.

Mistake 2: Holding too much cash

Some people may be tempted to hold cash to see where the markets go. When they look back, they’ll often find that was a foolish trade, according to Harrington.
For example, if they had invested that money in the S&P 500 instead, they would be up over 15% this year.
Money earmarked for long-term goals should always be invested in the market, he said. Cash is appropriate for emergency funds and other near-term goals, where the timeline is less than five years.

Yet some investors may be more comfortable holding cash due to the feeling of safety it provides.
“The way your gut feels is usually the exact opposite of the way you should be investing,” Harrington said.
If you have a financial advisor, you should be talking to them about all of your cash savings, according to Lane at Flourish. While financial advisors tend to believe they manage all of their clients’ money, no financial advisor truly does, Lane said.

Mistake 3: Not having proper FDIC coverage

The failure of Silicon Valley Bank has prompted savers to question whether their cash balances are fully insured for the first time since the financial crisis of 2008. The answer is generally yes, if the institution that has their money is insured by the Federal Deposit Insurance Corporation, or FDIC.
But there are limits to those protections. Depositors generally have up to $250,000 of coverage per bank, per account ownership category through the FDIC.
When banking troubles cropped up earlier this year, the federal government stepped in as a backstop regardless of those limits. But savers should not count on that happening again, Stelljes said.
“It’s really being aware of how much you have and whether you’ve exceeded the limit,” Stelljes said.
Investors may be able to access additional FDIC coverage by opening more accounts at their financial institution, he said. Some platforms can offer enhanced FDIC protection by using multiple support banks.
It is important to know whether your institution offers FDIC protection, what your personal limits are and whether you’re exceeding them, and, if so, there are options to address that, he said. More

Verizon CEO Hans Vestberg on the floor at the New York Stock Exchange (NYSE) in New York, U.S., October 22, 2019.
Brendan McDermid

When markets get choppy, dividends offer investors’ portfolios some cushioning in the form of income.
Dividends provide a great opportunity to enhance investors’ total returns over a long-term horizon. Investors shouldn’t base their stock purchases on dividend yields alone, however: They ought to assess the strength of a company’s fundamentals and analyze the consistency of those payments first. Analysts have insight into those details.

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

Verizon Communications

Let us first look at telecommunication giant Verizon (VZ). The stock offers a dividend yield of 8%. Last week, the company declared a quarterly dividend of 66.50 cents per outstanding share, an increase of 1.25 cents from the previous quarter. This marked the 17th consecutive year the company’s board approved a quarterly dividend increase.
Recently, Citi analyst Michael Rollins upgraded Verizon and its rival AT&T (T) to buy from hold. The analyst increased his price target for Verizon stock by $1 to $40, while maintaining AT&T’s price target at $17.
Rollins noted that several headwinds like competition, industry structure, higher rates and concerns about lead-covered cables have affected investor sentiment on telecom companies. That said, he has a more constructive outlook for large cap telecom stocks.
“The wireless competitive environment is showing positive signs of stabilization that should help operating performance,” said Rollins, who ranks No. 298 out of more than 8,500 analysts on TipRanks.

The analyst contended that the recently announced price hikes by Verizon and AT&T indicate a stabilizing competitive backdrop for wireless. He further noted that customers continue to hold onto their phones for longer, which is reducing device upgrade costs and stabilizing churn.
Overall, the analyst sees the possibility of some of the ongoing market concerns fading over the next 12 months. Also, he expects the prospects for improved free cash flow to lower net debt leverage and support the dividend payments. 
Rollins has a success rate of 65% and each of his ratings has returned 13.3%, on average. (See Verizon Hedge Fund Trading Activity on TipRanks)

Medtronic

Medical device company Medtronic (MDT) recently announced a quarterly dividend of $0.69 per share for the second quarter of fiscal 2024, payable on Oct. 13. MDT has increased its annual dividend for 46 consecutive years and has a dividend yield of 3.5%. 
Reacting to MDT’s upbeat fiscal first-quarter results and improved earnings outlook, Stifel analyst Rick Wise explained that continued recovery in elective procedure volumes, supply chain improvements and product launches helped drive revenue outperformance across multiple business units.
The analyst thinks that Medtronic’s guidance indicates that it is now well positioned to more consistently deliver better-than-expected growth and margins. He also expressed optimism about the company’s transformation initiatives under the leadership of CEO Geoff Martha.
“We view Medtronic as a core healthcare holding and total return vehicle in any market environment for investors looking for safety and stability,” said Wise, while raising his price target to $95 from $92 and reaffirming a buy rating.
Wise holds the 729th position among more than 8,500 analysts on TipRanks. Moreover, 58% of his ratings have been profitable, with each generating a return of 6.3%, on average. (See Medtronic Insider Trading Activity on TipRanks)   

Hasbro

Another Stifel analyst, Drew Crum, is bullish on toymaker Hasbro (HAS). He increased the price target for Hasbro to $94 from $79 while maintaining a buy rating, and moved the stock to the Stifel Select List.
Crum acknowledged that HAS stock has been a relative laggard over the past several years due to many fundamental issues that resulted in unhappy investors.
Nevertheless, the analyst is optimistic about the stock and expects higher earnings power and cash flow generation, driven by multiple catalysts like portfolio adjustments, further cost discipline, greater focus on gaming and licensing, as well as a new senior leadership team.
Crum noted that Hasbro grew its dividend for 10 consecutive years (2010-2020) at a compound annual growth rate of over 13%, with the annual payout representing more than 50% of free cash flow, on average. However, any upward adjustments were limited following the Entertainment One acquisition, with only one increase during 2021 to 2023.
The analyst thinks that given the current dividend yield of around 4%, Hasbro’s board might be less inclined to approve an aggressive raise from here. That said, with expectations of higher cash flow generation, Crum said that “the company should have more flexibility around growing its dividend going forward.”
Crum ranks 322nd among more than 8,500 analysts tracked by TipRanks. His ratings have been profitable 59% of the time, with each rating delivering an average return of 12.9%. (See Hasbro Stock Chart on TipRanks)

Dell Technologies

Next up is Dell (DELL), a maker of IT hardware and infrastructure technology, which rallied after its fiscal second-quarter results far exceeded Wall Street’s estimates. The company returned $525 million to shareholders through share repurchases and dividends in that quarter. DELL offers a dividend yield of 2.1%.
Evercore analyst Amit Daryanani maintained a buy rating following the results and raised his price target for DELL stock to $70 from $60. Daryanani ranks No. 249 among more than 8,500 analysts tracked by TipRanks.
The analyst highlighted that Dell delivered impressive upside to July quarter revenue and earnings per share (EPS), driven by broad-based strength across both infrastructure and client segments. Specifically, the notable upside in the infrastructure segment was fueled by GPU-enabled servers.
The analyst also noted that Dell generated $3.2 billion of free cash flow in the quarter and is currently running at over $8 billion free cash flow on a trailing twelve-month basis. This implies that the company has “plenty of dry powder” to significantly enhance its capital allocation program, he added.
“We think the catalysts at DELL are starting to add up in a notable manner ranging from – cap allocation update during their upcoming analyst day, AI centric revenue acceleration and potential S&P 500 inclusion,” said Daryanani.
In all, 60% of his ratings have been profitable, with each generating an average return of 11.5%. (See Dell’s Financial Statements on TipRanks)

Walmart

We finally come to big-box retailer Walmart (WMT), which is a dividend aristocrat. Earlier this year, the company raised its annual dividend for fiscal 2024 by about 2% to $2.28 per share. This marked the 50th consecutive year of dividend increases for the company. WMT’s dividend yield stands at 1.4%.
Following WMT’s upbeat fiscal second-quarter results and upgraded full-year outlook, Baird analyst Peter Benedict highlighted that traffic gains in stores and online channels reflect that consumers are choosing Walmart for a blend of value and convenience.
Benedict also noted that the company’s efforts to drive improved productivity and profitability are gaining traction.
The analyst reiterated a buy rating on WMT and raised the price target to $180 from $165, saying that the new price target “assumes ~23x FY25E EPS, slightly above the stock’s five-year average of ~22x given the company’s defensive sales mix, market share gains, and an improved long-term profit/ROI profile as alternative revenue streams scale.” 
Benedict ranks 94th among more than 8,500 analysts tracked by TipRanks. His ratings have been profitable 68% of the time, with each rating delivering an average return of 13.7%. (See Walmart’s Technical Analysis on TipRanks)   More