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A key retirement rule is that you should replace 70% of your income to maintain your standard of living through your golden years. But the majority of Americans fall short of this goal.
Let’s examine 3 strategies that you can use to supercharge your savings and get your retirement planning back on track.
US stocks rise as investors digest earnings
• US stocks finished higher Friday as investors digested another round of corporate earnings. Intel (INTC) shocked investors with a larger-than-expected quarterly loss, missing on both the top and bottom lines. Chevron (CVX), on the other hand, saw its annual profit double to a record $36.5 billion.
• In economic data, PCE inflation slowed to 4.4%, the lowest annual increase since October 2021. Meanwhile, the latest consumer spending numbers indicated that households cut spending in December.
What to be on the lookout for today
• The Dallas Fed Manufacturing Index will be released. This monthly metric fell again in December, marking the 8th straight contraction.
• On the earnings front, GE HealthCare Technologies (GEHC) kicks off the week with a fresh report. GE (GE) recently completed the spin-off of GE HealthCare after market close on January 3, 2023. Many analysts are interested to hear what's in store for the newly minted medical technology company.
It can be incredibly tempting to use a tax refund to buy something fabulous. There’s nothing wrong with an occasional splurge, but here are some ways to make that money work harder for you.
If you are carrying any high interest debt, one smart move might be to put your tax refund towards minimizing that debt — or, if possible, wiping it out all together.
Doing this can help you avoid spending more money just on interest charges, and may also help boost your credit score (which may help you qualify for loans and credit cards with lower interest rates in the future).
Or, you might consider using your tax refund to jump-start one of your current savings goals, such as building up an emergency fund, a downpayment on a home, or buying a new car.
For an emergency fund or savings goals you hope to accomplish within the next few years, you may want to put your refund in a high-yield savings account or checking and savings account.
These options typically offer a higher return than a traditional savings account, but allow you access your money when you need it.
Your tax refund can also help you start saving for the longer term, such as retirement or paying for a child’s education. Using a tax refund to buy investments can help you create additional wealth over time.
Today’s top stories
The Federal Reserve will meet this Wednesday in a meeting that will influence the cost of borrowing money across the country. On top of that, Apple (AAPL), Amazon (AMZN), and Alphabet (GOOGL) will lead a monstrous week of earnings, this week ahead on Wall Street. Read more >> It’s been a problem since they were introduced over 80 years ago: stolen, lost, or damaged shopping carts. You’ve likely seen them around your town or city. But the hidden cost is huge. Each cart costs around $250 to make. Supermarkets have 200 to 300, while big box retail can have up to 800. You can probably guess as to how the missing cart trend is impacting your grocery bill. Read more >> Winter is generally slow for real estate, however there are a number of things you can do to boost your home’s curb appeal for an open house. Whether it’s sprucing up the yard or adding a fresh coat of paint to your front door, minor updates to the face of your home can help increase its market appeal during real estate’s off-season. Read more >>Not-So-Breaking News
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Energy giant Chevron (CVX) reported a $36.5 billion profit for 2022, setting a record and more than doubling its earnings on a year-over-year basis. Still, the company failed to meet analyst expectations as oil and gasoline prices dipped toward year end. It figures to be a banner earnings season for the energy sector given high demand and shortages amid Russia’s invasion of Ukraine.
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Indian multinational conglomerate Adani Group saw its share price slide following a negative report from Hindenburg, a short seller firm. Hindenburg doubled down on shorting Adani, saying the company hasn’t adequately answered concerns of stock manipulation and fraud.
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Clean steel tech firm Boston Metal announced a $120 million funding round on Friday, led by ArcelorMittal (MT), with Microsoft (MSFT) and Bill Gates’ Breakthrough Energy Ventures fund also in the mix.
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Toy maker Hasbro (HAS) plans to lay off around 1,000 workers after sales came in weak for the holiday season. That said, the company notes it experienced strong performance from its Digital Gaming and Wizards of the Coast divisions.
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Visa (V) benefited from the recent surge in travel, as higher cross-border spending helped the payment titan beat earnings expectations. The company notes cross-border spending was up 22%, and it predicts increased travel outbound from China to South Asia.
Financial planner tip of the day
“If you have access to a workplace retirement account and your employer provides a match, contribute at least enough to get your full employer match. That’s a return that you can’t beat anywhere else in the market, and it’s part of your compensation that you should not leave on the table.”
Brian Walsh, CFP® at SoFi