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The Federal Reserve is still expected to hike rates by one-quarter of a percentage point at this week’s policy meeting.
Borrowing rates are already at fresh highs.
Here’s a breakdown of how the Fed’s moves have been affecting your monthly expenses and savings.

Average credit card rates top 20%

Most credit cards come with a variable rate, which has a direct connection to the Fed’s benchmark rate.
After a prolonged period of rate hikes, the average credit card rate is now more than 20% on average — an all-time high, while balances are higher and nearly half of credit card holders carry credit card debt from month to month, according to a Bankrate report.
“Yet another rate hike from the Fed means today’s sky-high credit card interest rates will rise even further in the very near future,” said Matt Schulz, chief credit analyst at LendingTree. Cardholders should expect their current cards’ interest rates to rise in the next billing cycle or two, he said.

Mortgage rates now average around 6.5%

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Although 15-year and 30-year mortgage rates are fixed, and tied to Treasury yields and the economy, anyone shopping for a new home has lost considerable purchasing power, partly because of inflation and the Fed’s policy moves.
The average rate for a 30-year, fixed-rate mortgage currently sits at 6.48%, according to Bankrate, down slightly from November’s high but still much higher than it was a year ago.
“While borrowers can save money relative to what they would have paid for a mortgage a few months ago, they’re still going to be shelling out much more than they would have had they bought a home at the start of last year,” said Jacob Channel, senior economic analyst at LendingTree.
“All in all, there’s no getting around just how tough today’s housing market is for many people to break into and navigate.”

They’re still going to be shelling out much more than they would have had they bought a home at the start of last year.

Jacob Channel
senior economic analyst at LendingTree

Adjustable-rate mortgages, or ARMs, and home equity lines of credit, or HELOCs, are pegged to the prime rate. As the federal funds rate rises, the prime rate does, as well, and these rates follow suit. Most ARMs adjust once a year, but a HELOC adjusts right away. Already, the average rate for a HELOC is up to 7.99%, according to Bankrate.

Auto loan rates rose to more than 6.5%

Even though auto loans are fixed, payments are getting bigger because the price for all cars is rising along with the interest rates on new loans.
The average rate on a five-year new car loan is now 6.58%, according to Bankrate.
Keeping up with the higher cost has become a challenge, research shows, with more borrowers falling behind on their monthly loan payments.

Federal student loans are already near 5%

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Federal student loan rates are also fixed, so most borrowers aren’t immediately affected by rate hikes. The interest rate on federal student loans taken out for the 2022-23 academic year already rose to 4.99%, and any loans disbursed after July 1 will likely be even higher. Interest rates for the upcoming school year will be based on an auction of 10-Year Treasury notes later this month.
For now, anyone with existing federal education debt will benefit from rates at 0% until the payment pause ends, which the U.S. Department of Education expects to happen sometime this year.
Private student loans tend to have a variable rate tied to the Libor, prime or Treasury bill rates — and that means that, as the Fed raises rates, those borrowers will also pay more in interest. How much more, however, will vary with the benchmark.

Deposit rates at some banks are up to 4.5%

While the Fed has no direct influence on deposit rates, the yields tend to be correlated to changes in the target federal funds rate. The savings account rates at some of the largest retail banks, which were near rock bottom during most of the Covid pandemic, are currently up to 0.39%, on average.
Thanks, in part, to lower overhead expenses, top-yielding online savings account rates are as high as 4.5%, according to Bankrate.
However, if this is the Fed’s last increase for a while, then deposit rate hikes are likely to slow, according to Ken Tumin, founder of DepositAccounts.com.

But “it’s not too late,” said Greg McBride, chief financial analyst at Bankrate.com. “We may not see much more in the way of improvement but there’s still a substantial advantage,” he said of switching to a high-yield savings account.
“There’s no advantage to staying where you are if you haven’t benefited from rising rates.”
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If you’re one of the nearly 1.5 million people with an unclaimed tax refund from 2019, the last chance to file your return is July 17, according to the IRS.
Those refunds are worth almost $1.5 billion in total, with a median payment of $893, the agency said.

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The 2022 federal tax deadline has passed for most Americans, but another key date is approaching for past-due filers.
If you’re one of the nearly 1.5 million people with an unclaimed tax refund from 2019, the last chance to file your return is July 17, according to the IRS.

Those refunds are worth almost $1.5 billion in total, with a median payment of $893, the agency said. There’s a state-by-state breakdown of median potential refunds for 2019 here.
More from Personal Finance:Series I bond rates fall to 4.3% amid cooling inflation3 smart ways to prepare for next year’s taxes nowAmericans are saving far less than normal in 2023. Here’s why
Typically, there’s a three-year deadline to claim refunds for unfiled returns before the money becomes the property of the U.S. Department of the Treasury. In most years, that deadline coincides with the federal tax filing deadline. But there’s extra time for 2019 due to the Covid-19 pandemic.
“The 2019 tax returns came due during the pandemic, and many people may have overlooked or forgotten about these refunds,” IRS Commissioner Danny Werfel said in a statement. “We want taxpayers to claim these refunds, but time is running out.”
With the 2019 tax deadline extended until July, Werfel said, many Americans, particularly lower earners such as students and part-time workers, may have accidentally skipped the filing.

“People get scared and think it’s going to be harder than it really is,” said certified financial planner John Chichester Jr., founder and chief executive of Chichester Financial Group in Phoenix. “And they don’t realize that they’re leaving money on the table.”

People get scared and think it’s going to be harder than it really is, and they don’t realize that they’re leaving money on the table.

John Chichester Jr.
Founder and CEO of Chichester Financial Group

For example, low- to moderate-income workers may qualify for the so-called earned income tax credit, which provides a tax break even without a balance due.
But for workers with a relatively simple tax situation, such as W-2 income and without a business, “it’s quite easy to file your taxes,” said Chichester, who is also a certified public accountant.

How to start past-due 2019 returns

If you’re feeling overwhelmed by an unfiled return, experts say to begin by gathering documents.
“Taxpayers can request copies of tax documents from employers and other sources like loan service providers,” said Kathy Pickering, chief tax officer for H&R Block. “Sometimes documents were provided electronically and are still available on demand.” 
Another way to access older tax documents is through your IRS online account, she said.

You can login to download IRS transcripts, such as the wage and income transcript, which includes W-2s and 1099s. You can access IRS transcripts for the current season and three prior years. “For many taxpayers, this is by far the quickest and easiest option,” the IRS said in a statement.
And if you have multiple years of unfiled returns, Chichester’s advice is to just get started with 2019. “Sometimes it can be daunting if you have multiple years,” but completing 2019 may make it easier to move on to the next one, he said. More

People are seen at the entrance of the UBS office in London, Britain March 20, 2023. 
Henry Nicholls | Reuters

After identifying the 10 best analysts on Wall Street of the past decade, here is a list of the 10 top research firms.
To create this list, TipRanks analyzed every stock recommendation made by investment research firms in the past decade. The ranking is based on the average return, success rate and statistical significance (number of recommendations made) of the ratings of analysts working at those firms.

By incorporating statistical significance into our analysis, the list prioritizes firms with a higher number of ratings. This explains why some research firms may have a higher success rate and average return yet rank lower.
TipRanks has leveraged its Experts Center tool to identify the top 10 research firms.

Top 10 Wall Street Research Firms

The image below shows the most successful Wall Street research firms in descending order.

Arrows pointing outwards

1. RBC Capital

Topping the list is the global investment bank RBC Capital. The firm’s 223 analysts issued 27,352 recommendations, the most out of all firms on this list, across various sectors. RBC Capital sports a success rate of 56%. Based on its recommendations, the firm generated an average return of 9.3%.

2. Jefferies

Full-service investment banking and capital markets firm Jefferies came second on the list. It has delivered an average return of 8.3% and has a success rate of 56% based on 25,218 ratings from 358 analysts. The firm’s most profitable sector is Utilities.

3. Truist Financial

Grabbing the third spot is the financial services provider Truist Financial. It has generated an average return of 13.4% based on 10,164 recommendations by 66 analysts across a diverse range of sectors. It has a success rate of 60%. 

4. Credit Suisse

Taking fourth place is the global financial services firm Credit Suisse. Its 467 analysts provided 18,683 recommendations across diverse sectors, generating an average return of 8.3%. Credit Suisse has a 57% success rate. 
Note: Credit Suisse was acquired by UBS on March 19.

5. UBS

Swiss banking and financial services giant UBS came in fifth place. Its 417 analysts have a 58% success rate on over 15,800 ratings, with an average return of 7.2%. The firm’s most profitable sector is Technology.

6. Keefe, Bruyette & Woods (KBW)

KBW is a full-service, boutique investment bank, and broker-dealer. Its team of 75 analysts issued 3,947 stock recommendations. The analysts have been most successful at recommending Services sector stocks. It boasts a success rate of 65%, the highest on this list, and an average return of 11.6%. 

7. Raymond James

Next on the list is the independent investment bank and financial services company Raymond James. It has delivered an average return of 8.2%. Moreover, it has a success rate of 55% based on 21,691 ratings from 162 analysts across a diverse range of sectors.

8. Stifel

Global wealth management and investment banking company Stifel features on the eighth spot of this list. The firm’s 291 analysts issued 20,870 recommendations across various sectors. Stifel has a success rate of 54%, and the firm generated an average return of 9.1%. It has been most profitable in recommending Technology sector stocks.

9. Wolfe Research

Independent sell-side research firm Wolfe Research takes the ninth spot. Its 48 analysts have a 61% success rate on over 5,432 ratings with an average return of 11%. The firm has been most profitable at recommending consumer goods sector stocks.

10. Deutsche Bank

German investment bank and financial services company Deutsche Bank is in the 10th spot. It has generated an average return of 7.3%. It has a 56% success rate on over 15,732 ratings from 346 analysts.

Bottom Line

Investors can follow the views of these top research firms to form well-informed investment decisions. Meanwhile, investors willing to see which firms come out on top using different criteria, including benchmarked against the sector, or S&P 500, no benchmark, and timeframe, can leverage TipRanks’ Top Performing Research Firms tool.  More

Despite concerns about inflation and a possible recession, consumers are still spending — and even splurging on occasion.
But when it comes to discretionary spending, splurges look different in 2023: These days, adults would rather treat themselves to drinks or dinner out.
Spending on experiences is important, one advisor says, as long as it fits in your budget.

Consumers are sending mixed signals.
For the most part, people are concerned about inflation and the direction of the U.S. economy. Consumer spending sank in March, according to Morning Consult. “Sticker shock” has taken a toll, the report found, with consumers more likely to walk away from a purchase because the price is too high.

However, many are still spending — and even splurging on occasion, other reports also show.  
To that point, 75% of adults said they splurged over the past month, although fewer than half said they could afford those types of purchases, according to a recent paper by Deloitte based on consumers in 23 countries.

Lipstick index is now ‘bourbon barometer’

The “lipstick index” was initially coined by former Estee Lauder chairman Leonard Lauder after the bursting of the dot-com bubble in the early 2000s sent the economy reeling. Lauder noticed that women substituted costlier luxury items for practical indulgences like lipstick.
The theory stuck: Even in tough times, consumers might rein in their spending, but they will still buy small luxuries on occasion, like a lipstick.
However, lipstick may not be the economic indicator it once was.

Deloitte’s researchers found that consumers are treating themselves, but they are now indulging differently.
More from Personal Finance: How to set up a budgetWhy it’s important to talk about moneyA recession may be coming — here’s how long it could last
“The bourbon barometer may be a more accurate reflection of these splurge behaviors,” the researchers wrote.
For starters, men are statistically as likely to splurge as women. And when they do, men shell out more. While lipsticks cost about $10, on average, adults are now spending $32, on average, on their splurges, according to Deloitte.
Further, when it comes to discretionary spending, adults are more likely to treat themselves to dinner out or premium spirits rather than cosmetics.
Consumers in the U.S. are four times more likely to have said their latest splurge purchase was food and beverages over personal care, Deloitte found.

Getty Images

In fact, premium spirit sales are booming.
“Despite the tough economy, consumers continued to enjoy premium spirits and fine cocktails,” Chris Swonger, president and CEO of the Distilled Spirits Council of the United States, said in a statement.
“Cocktail culture continues to thrive in the United States,” Swonger said.

How to budget for experiences

To better budget for such indulgences, “always make sure you understand where you spend your money and how much is going toward needs over wants,” said certified financial planner Carolyn McClanahan, founder of Life Planning Partners in Jacksonville, Florida.
Although spending on high-end cocktails should come only after necessary expenses are covered and savings are set aside, such experiences are important, she said. Determine how much you have left over at the end of the month and designate some of those funds for going out.
“Buying stuff only brings a short-term bump in happiness but experiences bring a lot more pleasure,” McClanahan said.
But “always look for deals, too,” McClanahan added. “Go to happy hour.”
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Retirement confidence among both workers and retirees is dropping due to a lack of savings and high inflation, new research finds.
If you’re approaching retirement, there are some key decisions to make that will affect how well you live. Here’s how to get started.

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1. Claiming Social Security benefits

• Key deadline to watch: By age 60, you should go to the Social Security Administration website and review your statement, recommends Craig Copeland, director of wealth benefits research at EBRI.
When to claim Social Security retirement benefits is one of the big questions retirees face.
Most experts generally recommend waiting beyond age 62, the earliest eligibility age. At full retirement age — 66 or 67, depending on your date of birth — you will receive 100% of the benefits you earned. But for every year you delay past full retirement age up to age 70, you will get an 8% boost — a guaranteed return that’s hard to beat in the markets or elsewhere.
It’s important to note that those benefits are also inflation-adjusted, unlike most other sources of income, explained David John, senior strategic policy advisor at the AARP Public Policy Institute.
“The later you can file for Social Security, the better it is as far as the amount you’re going to get,” John said.
By your early 60s, you should be reviewing your earnings record to make sure it’s correct, Copeland said, as that is what will be used to calculate your benefits.
At that time, you will also be able to get a sense of how large your monthly benefit check will be if you claim at ages 62, 67 (provided that’s your full retirement age) and 70.

2. Coming up with a Medicare strategy

• Key deadline to watch: Your 65th birthday.
While you may start your Social Security retirement benefits at age 62, eligibility for Medicare generally does not start until age 65.
An initial enrollment period starts three months before you turn 65, includes your birth month and goes three months after the month you turn 65 — for a total of seven months.
That goes for Medicare Part A, which covers inpatient hospital care, skilled nursing facility care, nursing home care, hospice care and home health care, as well as Medicare Part B, which covers diagnostic and preventive care services.
A small portion of people may be automatically enrolled if they are already receiving Social Security benefits, noted Jane Sung, senior strategic policy advisor at AARP Public Policy Institute.

Halfpoint Images | Moment | Getty Images

For others, their 65th birthday, and the surrounding months that make up their initial enrollment period, are a key date to watch.
“Don’t wait until the last week of your initial enrolment period, because it is complex,” Sung said.
If you’re still working and have health-care coverage through an employer, you may decide not to sign up right away when you turn 65, she said.
Those who opt for traditional Medicare may also want to add Medigap plans, which can help cover out-of-pocket costs, or Medicare Part D, for prescription drug coverage.
Alternatively, people may opt for Medicare Part C, otherwise known as Advantage plans, which are offered through private insurance and include Medicare Parts A and B, and oftentimes other coverage areas.

Certainly, I think six months, four months before your 65th birthday is a great time to start thinking about learning more about Medicare and the different choices available out there.

senior strategic policy advisor at AARP Public Policy Institute

To help sort through the choices, the AARP offers a Medicare enrollment guide and other resources.
State Health Insurance Assistance Programs, also known as SHIP, also provide guidance to Medicare beneficiaries.
In addition, some people may qualify for financial help through Medicare savings programs if they have income or resources below certain limits.
The key is to be proactive and do your research.
“Certainly, I think six months, four months before your 65th birthday is a great time to start thinking about learning more about Medicare and the different choices available out there,” Sung said.

3. Deciding where you will live

• Key deadline to watch: The sooner, the better.
When it comes to lifestyle, many retirees would prefer to age in place. Yet it’s important to consider whether your current home will still suit you as you age, notes EBRI’s Copeland.
When it comes to preparing a strategy for where to live in retirement, the sooner, the better, he said.
“Once you have any mobility issues, you really need to be moving on it,” Copeland said.
If you plan to relocate, you may want to do it early before health issues set in, he said.
Alternatively, if you plan to age in place, making some upgrades now, like putting guardrails or handrails on stairs, may help smooth the transition if and when your health declines.

Image Source | Vetta | Getty Images

To be sure, finding a place to live in retirement won’t look the same for everyone, noted Susan Reinhard, senior vice president and director of the AARP Public Policy Institute.
Notably, there is no one-size-fits-all answer. While some people may downsize, others may want more room to accommodate grandchildren. “It’s called right sizing for you,” Reinhard said.
While deciding where to live, people would also be wise to make other provisions for their care, including establishing or updating advance directives, legal documents that express your wishes in the event you are no longer able to care for yourself.
It’s also helpful to create medical records, and to have conversations with family members who you would want to help in the event you need medical attention, Reinhard noted.

4. Saving more

• Key deadline to watch: Check in at least 10 years away from retirement.
For many people, the idea of retirement doesn’t become a reality until around age 45, according to David John of AARP Public Policy Institute.
By the time you’re about a decade away from retirement, it’s a good idea to give some serious thought to your retirement goals while you’re still working and have time to build up your savings and make other arrangements, he said.
Even so, no matter where you are in relation to retirement, you can still make progress.
“If you don’t have retirement savings at this point, it’s never too late to start,” John said. “Having any level of savings is better than having no savings at all.” More

Student loan payments are expected to resume soon after the Supreme Court makes its ruling on the Biden administration’s forgiveness plan.
Borrowers can take these steps to get ready, according to experts.

Viktorcvetkovic | Istock | Getty Images

Know your lender

During the Covid pandemic, a number of the largest companies that service federal student loans announced they’ll no longer be doing so, meaning many borrowers will have to adjust to a new servicer when payments resume.
Three companies that serviced federal student loans — Navient, the Pennsylvania Higher Education Assistance Agency (also known as FedLoan) and Granite State — all said they’d be ending their relationship with the government.

As a result, around 16 million borrowers will have a different company to deal with by the time payments resume, or not long after, according to higher education expert Mark Kantrowitz.

Double-check that your servicer has your current contact information, so that you receive all the notices about the upcoming change, experts say.
Impacted borrowers should get multiple notices, said Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers.
If you mistakenly send a payment to your old servicer, the money should be forwarded by the former servicer to your new one, Buchanan said.

Find an affordable repayment option

Many people’s lives have been changed by the pandemic. If your circumstances look different than they did three years ago, it may make sense to review the payment plans available to you and find one that’s the best fit for your current situation.
In the meantime, the law has also changed.
Student loan forgiveness is now tax-free until at least 2025, thanks to a provision included in the $1.9 trillion federal coronavirus stimulus package that President Joe Biden signed into law in March 2021. That policy will likely become permanent.
That may make income-driven repayment plans more appealing, since they often come with lower monthly bills and borrowers will likely no longer be hit with a massive tax bill at the end of their 20 years or 25 years of payments.

But if you can afford it, the standard repayment plan is just 10 years.
To calculate how much your monthly bill would be under different plans, use one of the calculators at Studentaid.gov or Freestudentloanadvice.org, said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit.
If you do decide to change your repayment plan, Mayotte recommends submitting that application with your servicer before payments turn back on.
“I have significant concerns that there will be some big servicing delays,” she said.

Have a plan if you can’t make payments

Boophuket | Istock | Getty Images

If you’re unemployed or dealing with another financial hardship, you’ll have options when payments resume.
First, put in a request for the economic hardship or the unemployment deferment, experts say.
Those are the ideal ways to postpone your federal student loan payments because interest usually doesn’t accrue under them, as long as they’re subsidized undergraduate student loans.
If you don’t qualify for either, though, you can use a forbearance to continue suspending your bills. But keep in mind that interest will rack up and your balance will be larger – sometimes much larger – when you resume paying. More

It’s never too early to start thinking about retirement.
While the thought of funding your retirement adequately might be daunting, if you start planning now you’ll certainly be thankful later. It also might not be as difficult as you think.

Retirement usually entails replacing your annual salary from a workplace with other income sources to maintain your current lifestyle. While Social Security may cover part of your budget, the rest of your money will most likely need to come from your savings and investments.
CNBC crunched the numbers, and we can tell you how much you need to save now to get $60,000, $70,000 and $80,000 every year in retirement — without taking a bite out of your principal.

More from The New Road to Retirement:

Here’s a look at more retirement news.

First, there are some ground rules. The numbers assume you will retire at age 65 and that you currently have no money in savings.
Financial advisors typically recommend the mix of investments in your portfolio shift gradually to become more conservative as you approach retirement. But even in retirement, you’ll likely still have a mix of stocks and bonds, as well as cash. For investing, we assume a conservative annual 6% return when you are saving and an even more conservative 3% rate during your “interest-only” retirement.
We also do not factor in inflation, taxes or any additional income you may get from Social Security or your 401(k) investment plan.

We have a full breakdown of how much you need to save now if your goal is to get to $60,000, $70,000 or $80,000 every year in retirement.
Watch the video above to learn more. More

Overall, 60% of Americans now say they are living paycheck to paycheck, according to a recent report.
But between caring for children and caring for aging parents, millennials are much more likely to feel financially strained.

Some good news: Overall, fewer Americans are living paycheck to paycheck.
As of March, the share of adults feeling stretched too thin fell to 60% from 62% in the previous month, according to a new LendingClub report.

Many consumers have scaled back or picked up a side job to help make ends meet in the face of higher prices, other reports show.
More from Personal Finance:How to set up a budgetWhy it’s important to talk about moneyA recession may be coming — here’s how long it could last
But when broken down by age group, some Americans are still struggling, and millennials most of all.
Nearly three-quarters, or 73%, of adults ages 27 to 42 are living paycheck to paycheck, LendingClub found.

A ‘sandwich generation’ struggle

Millennials, more than any other generation, may face financial obstacles others do not.

“The oldest millennials are in their 40s now and often managing expenses for not just their kids but also aging parents,” said Anuj Nayar, LendingClub’s financial health officer. “It’s no wonder that almost three quarters of them are living paycheck to paycheck.”

A growing number in this group, also referred to as the “sandwich generation,” must financially support both their aging parents and their children. 

Gen Z faces ‘financially life-altering events’

Meanwhile, younger adults, in Generation Z, are showing signs of strain.
As of March, 66% of Gen Zers were living paycheck to paycheck — up from 58% a year ago, according to LendingClub. Many in this group are earlier in their careers, which can mean less earning potential and a greater susceptibility to layoffs.
“Generation Z are more apt to face financially life-altering events such as job loss, making them more financially vulnerable than any other generation,” Nayar said.

The oldest millennials are in their 40s now and often managing expenses for not just their kids but also aging parents.

Anuj Nayar
financial health officer at LendingClub

That leaves them more likely to dip into their cash reserves or lean on credit just when interest rates rise at the fastest pace in decades. 
“That’s troublesome,” said Tomas Philipson, University of Chicago economist and the former chair of the White House Council of Economic Advisers.
Coming out of the pandemic, many Americans have depleted any extra cash reserves they once accumulated. “We had a long run,” Philipson said. “We are now at the end of that runway.”

Most experts recommend going back to a basic budget — even if that means using the envelope method, or “cash stuffing,” to stay disciplined.
This can help avoid overspending, said CFP Carolyn McClanahan, founder of Life Planning Partners in Jacksonville, Florida.
“Look at how much you have left over after expenses and savings,” she said. “If you have $200 left in the month, that’s the number you can spend, and stick to it.”
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