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The U.S. Department of the Treasury and IRS on Friday released final tax reporting rules for digital asset brokers.
Mandatory yearly reporting will phase in starting in 2026, which will cover gross sales from 2025.
However, investors need to assign basis, or original purchase prices, for each crypto wallet before 2025, experts say.

Recep-bg | E+ | Getty Images

The U.S. Department of the Treasury and IRS on Friday released final tax reporting rules for digital asset brokers — and crypto investors have limited time to prepare, experts say.
Mandatory yearly reporting will phase in starting in 2026, with digital currency brokers required to cover gross proceeds from sales in 2025 via Form 1099-DA. In 2027, brokers must include cost basis, or purchase price, for certain digital asset sales for 2026.  

“These regulations are an important part of the larger effort on high-income individual tax compliance,” IRS Commissioner Danny Werfel said in a statement. “We need to make sure digital assets are not used to hide taxable income, and these final regulations will improve detection of noncompliance in the high-risk space of digital assets.”
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Enacted in 2021 via the Inflation Reduction Act, yearly digital asset reporting was estimated to raise nearly $28 billion over a decade, according to the Joint Committee on Taxation. However, the original start date was postponed.
The new IRS regulations come roughly four months after the agency hired two former crypto executives to improve digital currency service, reporting, compliance and enforcement programs.
“Everybody’s been waiting for the tidal wave of this enforcement activity,” James Creech, an attorney and senior manager at accounting firm Baker Tilly, previously told CNBC.

Basis will be ‘specific to the wallet’

With limited reporting on basis, crypto investors have the chance to establish a “reasonable allocation” before Jan. 1, 2025, according to an IRS revenue procedure released Friday.
Taxpayers need to assign basis for each digital currency wallet by the end of 2024, said Matt Metras, a Rochester, New York-based enrolled agent and owner of MDM Financial Services.  

If you bought digital currency over several years across multiple wallets, you currently have “different basis lots,” he said.
Crypto tax software often uses the best basis from your combined accounts to calculate gains. But going forward, each asset’s basis must be “specific to the wallet,” Metras said.
It’s important to establish digital currency basis because, generally, if you can’t prove your basis, the IRS considers it zero, which calculates a bigger profit.

‘The most important tax year’ for reporting

The new crypto tax reporting rules won’t apply to the upcoming tax season.
However, “2024 is the most important tax year for crypto investors to be reporting,” said Andrew Gordon, tax attorney, certified public accountant and president of Gordon Law Group.

2024 is the most important tax year for crypto investors to be reporting.

Andrew Gordon
President of Gordon Law Group

For 2024, you still need to collect crypto data and properly report activity, including your cost basis. Starting in 2025, the IRS will have a “firehose of information” to verify whether past reporting was accurate, Gordon said. More

Although the unemployment rate is just 4%, there is a growing share of young adults not working.
“NEETS” are opting out of the labor force by choice.
Others, referred to as “new unemployables,” are struggling to find employment despite their best efforts.

Klaus Vedfelt | Digitalvision | Getty Images

Although the unemployment rate has spent 30 months at or below below 4% — a near record — not everyone who wants a job has one. And not everyone even wants a job at all.
Some, referred to as “NEETs,” which stands for “not in employment, education, or training,” are opting out of the labor force largely because they are discouraged by their economic standing.

Others, alternatively, are well-qualified but often younger candidates who are struggling to find positions, comprising a contingent of “new unemployables,” according to a recent report by Korn Ferry. 

Among 16- to 24-year-olds, the unemployment rate rose to 9% in May, which is “typical,” according to Alí Bustamante, a labor economist and director of the Worker Power and Economic Security program at the Roosevelt Institute, a liberal think tank based in New York City.
Although the youth unemployment rate fell below 7% in 2023, according to the U.S. Bureau of Labor Statistics, such lows were “emblematic of how hot the labor market was at that point,” Bustamante said.
“9% is basically what we should be expecting during relatively good economic times for younger workers,” he added.

‘NEETS’ feel ‘left out and left behind’

Still, some young adults in the U.S. are neither working nor learning new skills.

In 2023, about 11.2% of young adults ages 15 to 24 in the U.S. were considered as NEETs, according to the International Labour Organization.
In other words, roughly one in 10 young people are “being left out and left behind in many ways,” Bustamante said.
Even though “that’s typically the norm,” he said, “we should be expecting these rates to be lower.”
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Young men, especially, are increasingly disengaged, according to Julia Pollak, a labor economist at ZipRecruiter.
“The NEET trend is mostly a male phenomenon,” she said.
Pollak explained that’s in part due to declining opportunities in traditionally male occupations, such as construction and manufacturing, while “women’s enrollment in schooling, education outcomes, and employment outcomes have mostly trended upwards.”

‘Talent hoarding’ has led to ‘new unemployables’

According to Korn Ferry’s report, a “perfect storm” has also created a glut of “new unemployables,” or highly trained workers who struggle to find job opportunities.
“Employers are holding on to the talent they have and increasingly focusing on talent mobility,” said David Ellis, senior vice president for global talent acquisition transformation at Korn Ferry.
This “talent hoarding” has led to fewer available job openings even for well-qualified candidates, he said.

At the same time, firms are scaling back on new hires, limiting the opportunities at the entry level, as well.
While the teen employment rate is the highest it has been in over a decade, early 20-somethings are struggling to find jobs, Pollak said. “It’s the 20- to 24-year-olds that saw a massive drop off in the labor force participation during the pandemic, and who have lagged behind ever since.”
Overall, hiring projections for the class of 2024 fell 5.8% from last year, according to a report from the National Association of Colleges and Employers, or NACE.
As more candidates compete for fewer positions, stretches of unemployment are also lengthening. Now, the number of people unemployed for longer than six months is up 21%, Korn Ferry found.

‘Unemployable’ to employable

Despite those trends in the job market, “all is not lost,” Ellis said.
“Don’t wait to reach out,” he advised. Get back in touch with former employers or colleagues through LinkedIn or email and set up informational interviews. After that initial approach, ask for any job leads or contacts.
In the meantime, make yourself more visible by writing about noteworthy topics in the industry and updating your resume to include keywords and so-called “title tags,” which highlight important elements at the top.
Finally, don’t limit yourself to roles that include a promotion or a raise, Ellis also advised. Rather, aim for a “career lattice,” which could entail taking lower position to gain skills that will pay dividends later.
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A federal appeals court will allow a key part of Biden’s student loan relief plan to resume as the legal challenges against it unfold.
The 10th Circuit Court of Appeals granted the Biden administration’s request to stay an order from last week that temporarily blocked a provision of its Saving on a Valuable Education, or SAVE, plan.

US President Joe Biden gestures after speaking about student loan debt relief at Madison Area Technical College in Madison, Wisconsin, April 8, 2024. 
Andrew Caballero-Reynolds | AFP | Getty Images

A federal appeals court will allow a key part of President Joe Biden’s student loan relief plan to resume as the legal challenges against it unfold.
In a Sunday ruling, the 10th Circuit Court of Appeals granted the Biden administration’s request to stay an order from last week that temporarily blocked a provision of its Saving on a Valuable Education, or SAVE, plan.

The decision is a major win for President Joe Biden, experts say. The SAVE plan was his biggest accomplishment to date in delivering relief to millions of student loan borrowers. So far, around 8 million borrowers have signed up for the new income-driven repayment plan, according to the White House.
Last week, just as the Biden administration prepared to lower borrowers’ monthly payments under the SAVE plan, a federal judge issued an injunction blocking it from doing so.
The Department of Justice quickly appealed.
The appeals court ruling will allow the Biden administration to go ahead with lowering borrowers’ monthly payments.
Under SAVE, many borrowers pay just 5% of their discretionary income toward their debt each month, and anyone making $32,800 or less has a $0 monthly payment.
This is breaking news. Please check back for updates. More

Effective retirement planning largely depends on the answer to one question: How long will I live?
Yet no one truly knows the answer to that question.
Here’s what experts say you should consider to best gauge your plans.

Peopleimages | Istock | Getty Images

To effectively plan for your retirement, experts say, you need to watch your savings rate and total nest egg.
But how much you really need to have set aside depends on another number — your life expectancy.

Yet that figure is also the most elusive — no one knows how long they will live.
“Nobody really knows, and that uncertainty is uncomfortable,” said Lisa Schilling, director of practice research at the Society of Actuaries Research Institute, the research arm of the Society of Actuaries.
The financial industry typically uses age 95 as a default assumption, according to research from HealthView Services, a provider of health-care cost projection software.
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Instead of planning for one life expectancy number, the Society of Actuaries and American Academy of Actuaries emphasize longevity.

Longevity risk measures the likelihood someone may live longer than expected and outlive their savings.
“If you read that life expectancy is 84 and you are planning on your money lasting until 84, there’s a big surprise behind the curtain that you haven’t opened,” Schilling said. “There’s a really good chance for a lot of reasons that you might need your money to last longer than that.”

Longevity estimates may bring surprises

The Society of Actuaries and American Academy of Actuaries recently relaunched a free online longevity illustrator.
The tool asks for basic information on either an individual or a couple: age, sex, retirement age, smoking status and a description of their general health — poor, average or excellent.
The results aim to provide a “reasonable” estimate of how long you might live, according to the organizations. The illustrations show the probability of living to certain ages, as well as the number of years of life one might live in retirement.
Generally, the higher your current age, the greater the possibility you may live longer. While life expectancy at birth may be 84, it will be even longer if you’ve already made it to age 65, Schilling said.

The results may help individuals fully understand the range of possibilities when planning for how long their money may need to last, she said.
For couples, there is also another revelation that often comes as a surprise. “The chance that at least one of you lives to 90 is even bigger,” Schilling said.
Yet the financial industry’s assumption of living to age 95 may be too generous, according to recent research from HealthView Services.
The projected life expectancy for someone who is 65 years old today with no chronic conditions is age 90 for women and age 88 for men.
Yet only around 5% of people over 60 have no chronic conditions, according to the research.

Health status affects life expectancy projections

Chronic health conditions such as high blood pressure, cardiovascular disease, cancer, diabetes, high cholesterol, tobacco use, obesity or Parkinson’s disease reduce an individual’s projected life expectancy.
For example, while a healthy 65-year-old man with no chronic conditions has a 19.3% probability of living to age 95 or longer, that gets reduced to a 17.5% chance if he has high blood pressure, 15.8% if he has cardiovascular disease, 12.5% for high cholesterol, 8.8% for obesity with a body mass index of 35 to 39, 7.4% for tobacco use, 2% for obesity with body mass index of 40 to 44 and to just 0.4% for diabetes, according to the research.
Those probabilities could mean a huge difference to his retirement funding needs. A healthy 65-year-old man may need around $1.1 million to maintain the 80% income replacement rate he needs if he was earning $100,000 in 2023, according to HealthView Services. This assumes he lives to age 95, has a 6% annual portfolio return, receives Social Security benefits, and inflation is 3%.

However, if that 65-year-old man has a chronic condition, his life expectancy will be lower. And that could free up more of that retirement nest egg to be spent in other ways, according to HealthView Services.
High blood pressure could reduce his life expectancy by nine years to age 86, and therefore allow for $447,469 to be used for long-term care planning, emergency savings, money for heirs or other uses, the research found.
Tobacco use could reduce his life expectancy by 13 years to 82, freeing up $616,245, the research estimates, while diabetes may reduce his lifespan by 16 years, enabling him to spend $727,947.
Most experts advise individuals to plan for outliving their assets by delaying Social Security retirement benefits or considering an annuity to amplify monthly income.

How personalized numbers can help

But considering an individual’s specific health status and how that affects their life expectancy can help personalize financial plans, according to Ron Mastrogiovanni, CEO of HealthView Services.
“During a planning process, people are more likely to take action if numbers are personalized,” Mastrogiovanni said.
That doesn’t necessarily require eliminating age 95 assumptions altogether, he said.
But letting someone know their personal life expectancy can help provide a more reasonable sense of an age to plan to.
“That doesn’t mean you choose that number” to plan to, Mastrogiovanni said.
“Whatever makes you comfortable; you want to move out four years, 10 years, you can do that,” he said.
“But at least you’re working off an actuarial base number.” More

A sign is posted in front of an Olive Garden restaurant on June 20, 2024 in Rohnert Park, California. 
Justin Sullivan | Getty Images

Dividend-paying stocks can help investors bolster their portfolios and boost returns.
Investors searching for these names will need to find companies that have a track record of making steady payments, backed by robust financials.

Here are three attractive dividend stocks, according to Wall Street’s top pros on TipRanks, a platform that ranks analysts based on their past performance.
Darden Restaurants
The first dividend stock is Darden Restaurants (DRI), which operates several popular brands in full-service dining, including Olive Garden, LongHorn Steakhouse and Yard House. The company recently announced mixed results for the fourth quarter of fiscal 2024. While Darden exceeded analysts’ earnings expectations, its sales slightly missed the Street’s consensus amid increased discounting by rivals.
Darden issued $628 million in dividends and committed $454 million to share repurchases in fiscal 2024. Moreover, the company announced a dividend hike of nearly 7%, bringing the quarterly dividend to $1.40 per share. The stock has a dividend yield of 3.5%.
Following the results, BTIG analyst Peter Saleh reiterated a buy rating on DRI stock with a price target of $175. The analyst highlighted that at the mid-point, Darden’s earnings per share outlook of $9.40 to $9.60 indicates double-digit total shareholder return, which is in line with the company’s long-term targets.
Saleh thinks that the company can achieve its targeted return metrics, supported by several factors, including a modest rise in pricing, advertising initiatives and easing inflation.

“We view Darden Restaurants as one of the strongest operators in the industry with historical sales and restaurant margin performance that has consistently exceeded peers,” said Saleh.
Saleh ranks No. 360 among more than 8,900 analysts tracked by TipRanks. His ratings have been successful 61% of the time, with each delivering an average return of 11.7%. (See Darden’s Financial Statements on TipRanks)
International Seaways
Next up is International Seaways (INSW), a tanker company that offers energy transportation services for crude oil and petroleum products. On June 26, the company paid a combined dividend of $1.75 per share. The company’s combined dividend represented 60% of its first-quarter adjusted net income.
In its first-quarter results, INSW highlighted that its combined dividend payments of $5.74 per share over the last twelve months reflected a dividend yield of more than 13%.
Following meetings with INSW’s management, Stifel analyst Benjamin Nolan reaffirmed a buy rating on the stock and increased the price target to $68 from $66. The analyst noted that the tanker market remains cyclically strong due to a continued increase in global oil consumption, the limited supply of new ships and the longer average voyage lengths caused by the ongoing geopolitical troubles.
Accordingly, Nolan increased his rate assumptions for 2024 and 2025. The analyst expects International Seaways to continue to deliver higher cash flows, fueled by a favorable backdrop for the tanker market.
Nolan expects INSW to sustain high supplemental dividends, given the estimated $200 million to $300 million of excess cash flow after capital expenditure (assuming there is no new debt associated with tanker acquisitions). “We are modeling $5.51/share in 2024 dividends, although there is room to be a little higher,” said the analyst.
Nolan ranks No. 68 among more than 8,900 analysts tracked by TipRanks. His ratings have been successful 67% of the time, with each delivering an average return of 19.5%. (See International Seaways’ Stock Charts on TipRanks)
Citigroup
Finally, let’s discuss this week’s third dividend stock, banking giant Citigroup (C). At a quarterly dividend of 53 cents per share, Citigroup offers a yield of 3.3%.
The bank held its Services Investor Day on June 18. Management expressed confidence about achieving the 2024 guidance, driven by revenue growth across all the core businesses despite macro uncertainty and the possibility of lower interest rates.
Following the event, Goldman Sachs analyst Richard Ramsden reiterated a buy rating on Citigroup stock and slightly raised his price target to $72 from $71. The higher price target reflects an increase in the analyst’s EPS estimates for 2024, 2025 and 2026 based on management’s commentary, which indicated that the bank’s strategic transformation plan is gaining momentum.
Ramsden noted that Citi is highly focused on its transformation efforts, with the bank making steady progress on risk control and data quality. Coming to the Services business, the analyst noted that management established strategic priorities for this vital component of the company’s financial targets. The analyst estimates that the Services business will account for 25% of the group revenue growth through 2026.
“The Services business is well positioned to maintain their market leading positions with potential to continue share gains across businesses,” said Ramsden. The analyst’s optimism is based on Citi’s extensive global network in 95 countries, well-established long-term client relationships, and market share gains that are expected to be driven by investments in technology and innovative offerings.
Ramsden ranks No. 969 among more than 8,900 analysts tracked by TipRanks. His ratings have been successful 65% of the time, with each delivering an average return of 11.9%. (See Citigroup Technical Analysis on TipRanks) More

While lawmakers have a growing interest in taxing the ultra-rich, last week’s Supreme Court ruling could threaten future wealth tax proposals, experts say.
Many tax experts watched Moore v. United States to gauge Congress’ authority to tax unrealized earnings.
While the justices didn’t comment directly on wealth taxes, the ruling scattered clues about whether certain revenue raisers could pass constitutional muster.

Spotmatik | Photodisc | Getty Images

While lawmakers have a growing interest in taxing the ultra-rich, last week’s Supreme Court ruling could threaten future wealth tax proposals, experts say.
In Moore v. United States, the Supreme Court blocked a challenge to the “mandatory repatriation tax,” a one-time levy on certain foreign investments enacted in 2017.

The case centered on a U.S. couple who incurred about $15,000 in taxes on undistributed profits from an overseas company. The Moores argued the levy violated the 16th Amendment because they didn’t “realize” or receive income.  
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Many tax experts watched the Moore case to gauge Congress’ authority to tax unrealized earnings, which could have an impact on wealth tax proposals. But the Supreme Court didn’t comment directly on the issue.
“Nothing in this opinion should be read to authorize any hypothetical congressional effort to tax both an entity and its shareholders or partners on the same undistributed income realized by the entity,” Justice Brett Kavanaugh wrote in his majority opinion.
Still, the 83-page ruling scattered some clues about whether certain versions of a wealth tax could pass constitutional muster, experts say. 

Issues with wealth tax proposals

In concurring and dissenting opinions, four justices — Amy Coney Barrett, Samuel Alito, Clarence Thomas and Neil Gorsuch — said the 16th Amendment requires realization for taxes. One more justice could create a majority in future cases.
That could be a roadblock for Biden’s billionaire tax, which calls for a 25% tax on unrealized gains for households with wealth exceeding $100 million, experts say. Biden also included a billionaire tax in his 2023 and 2024 budget proposals, but the plan hasn’t gained broad support.

No billionaire should pay a lower federal tax rate than a teacher, a sanitation worker or a nurse.

President Joe Biden

“No billionaire should pay a lower federal tax rate than a teacher, a sanitation worker or a nurse,” Biden said during the State of the Union, where he renewed his proposal. He also briefly mentioned the plan during the first presidential debate on Thursday.
However, the Supreme Court opinions and Biden’s proposal “seem like they’re probably on a collision course,” said Alan Cole, senior economist with Tax Foundation’s Center for Federal Tax Policy.
Of course, the future of Biden’s tax proposal is unclear with uncertain control of Congress.

Plans ‘on the wrong side of the constitutional line’

Federal wealth taxes drew national attention during the 2020 presidential primaries when Sens. Elizabeth Warren, D-Mass., and Bernie Sanders, I-Vt., released dueling proposals. Senate Finance Committee Chairman Ron Wyden, D-Ore., has also proposed a similar tax on billionaires.
The issue is whether wealth tax proposals count as a “direct tax,” which must be apportioned, or split, among the 50 states based on their percentage of the total U.S. population, according to the Constitution.
That’s a barrier because “no taxes are ever apportioned,” said Steve Rosenthal, senior fellow at the Urban-Brookings Tax Policy Center. “It’s impossible.”

At oral arguments for the Moore case in December, Solicitor General Elizabeth Prelogar said a wealth tax would need to be apportioned among the states, which Rosenthal said “essentially threw the Warren and Sanders wealth tax under the bus.”
What’s more, Kavanaugh’s majority opinion, which “analytically divides direct and indirect taxes” and referenced Prelogar’s comment, could put the wealth tax proposals from Warren and Sanders “on the wrong side of the constitutional line,” Rosenthal said.

It’s not clear whether the Biden and Wyden proposals, which use so-called “mark-to-market” or yearly taxes of capital gains, would be constitutional either, experts say.
Wyden has insisted his plan is constitutional because annually taxing capital gains is already part of the tax code. 
The high court opinion “will open up the floodgates to much more litigation,” Rosenthal added.

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Company: Rapid7 (RPD)                                      

Business: Rapid7 is a global cybersecurity software and services provider. Its products span across information security, cloud operations, development and information technology teams, enabling them to understand attackers and leverage that information to take control of their fragmented attack surface. Rapid7 Managed Threat Complete is the company’s flagship offering, and it includes the Rapid7 Managed Detection and Response program. Rapid7 also provides risk and threat coverage through InsightIDR and Insight VM services, making them available in a single package. Its security solutions help more than 11,000 global customers unite cloud risk management and threat detection.
Stock Market Value: $2.69B ($43.23 per share)

Stock chart icon

Rapid7 in 2024

Activist: Jana Partners

Percentage Ownership:  n/a
Average Cost: n/a
Activist Commentary: Jana is a very experienced activist investor founded in 2001 by Barry Rosenstein. The firm made its name taking deeply researched activist positions with well-conceived plans for long term value. Rosenstein called his activist strategy “V cubed.” The three “Vs” were” (i) Value: buying at the right price; (ii) Votes: knowing whether you have the votes before commencing a proxy fight; and (iii) Variety of ways to win: having more than one strategy to enhance value and exit an investment. Since 2008, the firm has gradually shifted that strategy to one which we characterize as the three “Ss” (i) Stock price: buying at the right price; (ii) Strategic activism: sale of company or spinoff of a business; and (iii) Star advisors/nominees: aligning with top industry executives to advise them and take board seats if necessary.

What’s happening

On June 26, The Wall Street Journal reported that Jana has taken a significant position in Rapid7 and may urge the company to sell itself, as well as improve operations and forecasting.

Behind the scenes

Rapid7 is a cybersecurity company that expands the expertise of its clients’ security operations. Its Managed Threat Complete flagship offering combines end-to-end 24/7 managed detection and response with vulnerability management offerings. Historically, the company has focused on on-site cybersecurity operations, but it has begun to expand into the explosive growth area of cloud security. Rapid7 operates in a highly attractive industry and is the beneficiary of some meaningful tailwinds. In a time where software budgets are being cut or reallocated toward AI, the threat of cyberattacks looms large and presents a great enough risk that spend is either flat or increasing for these types of services. In addition, cybersecurity analysts and internal security staff are limited, so there is a tremendous need for outsourcing. With more complex operations and numerous applications both on-site and in the cloud, Rapid7 is well-positioned to continue growing and aims to be a high-quality provider for subject matter experts who may not be able to retain the services of their largest and most expensive competitors.

Despite its favorable position, the company has delivered negative returns on a one-, three-, and five-year basis. Rapid7 is one of three main players in vulnerability management, yet it’s assigned a much smaller revenue multiple (3x) compared to peers Tenable (5.5x) and Qualys (8x). One factor in this is that Rapid7 offers a combination of low- and high-growth cybersecurity offerings, which is difficult to value, but more important are the multiple slip-ups by management, exacerbated by a lack of oversight by the board. First, the company has undergone changes to its sales model, including a shift to selling packaged products from selling offerings individually. It’s also moved to a channel model from direct. Next, the company has encountered challenges in bringing its cloud product to market. In addition, to shift from pure growth to a profitable software company, Rapid7 has focused on meeting targets for $160 million in free cash flow and improved margins. In August 2023, likely in pursuit of these goals, the company abruptly announced plans to reduce its staff by 18%. Rapid7 has had further retention problems in key executive roles, including the departure of its chief innovation officer and its critically important chief operating officer and president. Finally, the company has not been able to properly make forecasts, leading to tremendous investor uncertainty and questions of board oversight. In February 2024, the company announced its 2024 guidance, which it stated it was highly confident in, only to cut it in May when the company delivered its Q1 results. That led to a 17% stock price decline on May 8. This is a company operating in a highly complex and dynamic space – it is doing everything all at once and has seemingly failed to deliver.
With a company like this, there are generally two paths to shareholder value creation: (i) a long-term plan involving board reconstitution, management overhaul and review of strategic and operational plans and (ii) a shorter-term plan to sell the company to an interested buyer who can make those changes. With respect to the long-term plan, Jana generally works with industry executives and consultants in performing due diligence and implementing its activist plans, and we do not expect this situation to be different. The firm will often bring these individuals to the table to serve as director nominees, if deemed necessary. Jana is experienced in getting these experts on company boards, where they often serve as assets in getting the company to correct its issues, from operational to governance to capital allocation. But Jana also has extensive experience in strategic activism and getting portfolio companies sold. We expect that Jana will advocate for the strategy it expects will maximize shareholder value on a risk- and time-adjusted basis. Given the problems the company has been experiencing and the lack of CEO focus (Aside from being chairman and CEO of Rapid7, Corey Thomas is on the National Security Telecommunications Advisory Committee, chair of the Federal Reserve Bank of Boston and a member of the Council on Foreign Relations. He also serves on the boards of the Blue Cross Blue Shield of Massachusetts, LPL Financial and Vanderbilt University.), a sale looks like it could be the easier and more certain path if there is a suitor at the right price.
Given industry tailwinds, there may be several strategic and financial buyers interested in this company. Recent transactions in the cybersecurity sector include Cisco’s $28 billion takeover of Splunk and Francisco Partners’ $1.7 billion acquisition of Sumo Logic. If Jana does advocate for a sale of Rapid7, it will ask the board to do it through a full sales process that attains the highest value for shareholders. In addition, Jana has a strategic partnership with Cannae Holdings, which could be helpful in providing the equity in a strategic transaction with a private equity firm. Consider that in 2019, Cannae joined with private-equity firms to buy Dun & Bradstreet. It is important to note that even if Jana thinks a sale of the company is the best way to optimize shareholder value, the firm will still have to get the board to agree. This does not look like a board and management team that will just go quietly. In such a case, Jana’s remedy would be to launch a proxy fight, but that could take some time. The 2024 annual meeting just passed on June 13 and the director nomination window does not open until Feb.13, 2025.
Ken Squire is the founder and president of 13D Monitor, an institutional research service on shareholder activism, and the founder and portfolio manager of the 13D Activist Fund, a mutual fund that invests in a portfolio of activist 13D investments. More

More than one-third of summer vacationers say they are willing to take on debt to pay for travel, according to a March 2024 report from Bankrate.
About a quarter (26%,) of summer travelers said they intend to use a credit card and pay for the vacation over multiple billing cycles.
“This represents a lot of people taking on expensive debt, and this is the kind of thing that can linger,” said Ted Rossman, a senior credit card industry analyst at Bankrate.

Some people could find themselves wrangling with summer travel bills well after Labor Day.
To that point, 36% of Americans said they plan to take on debt in order to travel this summer, according to a March survey from Bankrate. The payment methods for summer travel expenses ranged from personal loans (5%) and buy now, pay later services (8%) to borrowing from family and friends (6%).

Additionally, 26% of summer travelers said they intend to use a credit card and pay over for the vacation over multiple billing cycles.
“The reason that’s worrisome is because the average credit card charges more than 20%, which is close to a record high,” said Ted Rossman, a senior credit card industry analyst at Bankrate.
“I don’t want to tell people they can’t have any fun,” he said. “But this represents a lot of people taking on expensive debt, and this is the kind of thing that can linger.”
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Millennials (47%) and Gen Zs (42%) are the demographic cohort most likely to say they plan to go into debt to pay for vacation, according to Bankrate.

“There are so many compelling reasons why people choose to take on debt to have these vacations,” said Sabrina Romanoff, a clinical psychologist.
“If your kids are dreaming of going to Disney World and there’s no way the family could ever really swing it without going into debt, it could be a memory the family will have forever,” she said by way of example.
“And parents often can rationalize spending in these terms for their children, especially when the trip feels like such an important, seminal part of childhood,” she added.

How to have fun on a budget: ‘Zig when others zag’

Financial experts advise that the key to affording a vacation is to plan ahead and budget accordingly.
“Money on trips can feel like Monopoly money,” Romanoff said. “For some reason, we’re much more willing to just say yes to the experience because we’re just in this, like, luxurious mindset.”
For that reason, Romanoff advises her clients to set a budget for categories of spending while traveling such as food, activities and transportation.

Romanoff also suggests to give yourself areas where you splurge and those in which you spend conservatively.
“I had a client I worked with who decided they were going to stay in an Airbnb, and they were going to cook all of their food, so they were going to save on food and they were going to splurge on this boat trip they were really excited about, and it felt like a compromise,” Romanoff said.
The next step after establishing a budget is making a plan to save. Romanoff recommends starting small and setting aside a little bit of money from each paycheck.
People can also find other creative ways to save and to make the most of their trips. For example, Rossman suggests taking advantage of frequent flier miles or other credit card rewards.
Travelers can also save by choosing to visit locations at different times of the year. Lower demand usually leads to lower prices.
“Zig when others zag,” Rossman said. “Maybe travel in the offseason or the shoulder season, or drive instead of fly, or travel midweek instead of on the weekend. If you can let the deal dictate the destination, that can really help you out. Flexibility is key.”
Watch the video above to learn more about how Americans are paying for summer vacation. More