Wednesday,
April 12, 2023
Market recap
Dow Jones
33,684.79
+98.27 (+0.29%)
S&P 500
4,108.94
-0.17 (-0.00%)
Nasdaq
12,031.88
-52.48 (-0.43%)
Top Story
Financial therapists believe money management has roots in subconscious beliefs called “money scripts” — behaviors driven by unconscious habits and learned behaviors that impact your financial well-being.
Financial therapists try to help by teasing out these beliefs, which are often formed in childhood. These professionals address the ways in which mental health and upbringing may affect work, income, and spending.
US stocks were mixed Tuesday as investors look ahead to the upcoming March CPI numbers
• CarMax (KMX) reported revenue below expectations at $5.72 billion. But its earnings per share came in at $0.44, 20 cents above projections. The company implemented cost-cutting measures in December to better navigate the pressures facing the used car industry, but believes leasing rates and rising new car prices could help bolster used car demand going forward.
• The International Monetary Fund cut its global GDP forecasts to 2.8% for this year and 3% in 2024. The IMF also said it expects growth five years from now to be around 3% — the lowest medium-term forecast in over 30 years.
• Weight Watchers parent WW international (WW) saw its shares surge nearly 30% after receiving an upgrade from Goldman Sachs (GS). The investment bank argued the company could triple in value, pointing to its new obesity drug on-ramp solution as the key catalyst.
What to be on the lookout for today
• CPI inflation numbers that will offer much-needed insight into the state of consumer prices and whether the Fed’s rate hike campaign is nearing its end. In February, headline CPI was 6%, while the forecast for March is 5.2%.
• Bed Bath & Beyond (BBBY) will report on its fourth-quarter results from 2022. The retailer has been seeking a funding lifeline to continue operations as it eyes bankruptcy protection.
4 ways to use your tax refund to secure your future
It can be challenging to find the right time to think about your financial situation 20 to 30 years from now. Looking for inspiration? Perhaps receiving your tax refund is just the thing. This little influx of cash can be the perfect opportunity to make some commitments to your more distant future.
These are options to explore (don’t be shocked we think SoFi is a great way to access many of these benefits):
1. Plan for retirement: Does your company offer to match your retirement savings in your 401(k)? If so, you could take advantage of this “free money” by increasing your contributions with your tax refund. This can maximize the benefit your employer offers. If you don’t have a 401(k), you could use your tax refund to start an Individual Retirement Account (IRA), or add to an existing one. More on retirement planning here!
2. Purchase life insurance: Signing up for a term life policy when you have the resources to do so can be a smart idea, especially if you are married and/or have children. That way, you’ll know your loved ones are protected should anything happen to you!
3. Hire an estate planning attorney: If you have a spouse or young children, an estate planning attorney can help you devise an estate plan that protects them in the event you pass away. This could mean designating guardians or setting up a trust for your children. Yeah, SoFi offers help with estate planning too.
4. Save for Your {current or future} kid’s college education: If you have kids, using your tax refund to start a 529 college savings plan could be a great first step toward dealing with the rising cost of college education. Money in these funds grows tax-free. You may also be able to deduct your contributions from your state income taxes, depending on your state.
If you’re still wrapping your head around the topic of taxes more generally, check out this guide to understanding your taxes.
Today’s top stories
The rise of hybrid and remote schedules is causing more Americans to work during the weekend. Remote and hybrid schedules allow people to reclaim some time during the week, as long as they make up for it on the weekends. But is this tradeoff worth it? Read more >> The average tax refund check has been about $360 smaller this year. Here’s why refunds are trending down, and how to keep your wallet full despite this. Read more >> What exactly makes a good starter home, and how do you know when to jump into the housing market? Buying a starter home can be a good way to get your foot in the door of homeownership, but it’s important to consider your financial situation and your plans for the next two to five years or more before buying a starter house. Read more >>Not-so-breaking news
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Chipotle (CMG) is implementing a new store design in an attempt to halve its greenhouse emissions by 2030. By next year, the burrito chain plans to use all-electric equipment, among other updates, at 100 of its new locations.
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Twitter’s ex-CEO, CFO, and legal head have sued their former company for not reimbursing legal fees. The executives are seeking $1 million for bills associated with requests by the US DOJ and SEC.
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A judge denied Elizabeth Holmes’ request for bail while she appeals her conviction. The former Theranos CEO is on trial for defrauding investors.
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Alibaba (BABA) just unveiled Tongyi Qianwen, its answer to ChatGPT. The ecommerce company plans to use the generative AI tool in its smart speakers and workplace messaging platform.
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Since 2017, Dollar General (DG) has been fined $15 million for failing to meet federal workplace safety regulations. The discount retailer has failed a total of 180 inspections conducted by the Occupational Safety and Health Administration.
Financial planner tip of the day
“Waiting until the end of the month to check in on accounts leaves consumers at risk for excess spending and potentially overdrawing a checking account or having a higher credit card bill than they anticipated. Checking in once a week leaves time to self correct and adjust the budget to help balance the numbers.”
Brian Walsh, CFP® at SoFi