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How to avoid a retirement shortfall
This is the one thing that’s keeping Americans from running out of money in retirement, according to a Morningstar report.
US stocks finished mixed on Monday
• The Dow Jones Industrial Average finished at an all-time high, while the S&P 500 and Nasdaq were dragged lower by tech stocks.
What to be on the lookout for today
• A key measure of national home prices, as well as the Conference Board’s survey of consumer confidence.
• In earnings, Nordstrom will report.
Should I pay down debt or save money?
If you have set up a monthly budget and are fortunate enough to have money left over each month, you might be thinking about how to use that extra cash. There are pros and cons to both paying off debts and saving money — here's a look at reasons you might consider one versus the other.
Why You Should Save Money
One of the smartest financial moves you can make is setting up an emergency fund. This ensures that if your car breaks down, you have unexpected medical expenses, or some other emergency, you can pay for it without resorting to using credit cards. If you don't have any emergency fund yet, this could be a great start on your financial wellness journey, even before paying down debt.
When To Pay Down Debt
There are different schools of thought as to how much money should be in your emergency fund; a good rule of thumb might be a few months' worth of expenses. But if you have high-interest debt, putting a smaller amount into your emergency fund in order to get to work on tackling your debt could serve you well. Once you've paid off most if not all of your debt, you can get back to padding your emergency fund.
Today’s top stories
Pay your rent, earn rewardsSome landlords now offer credit-card-style rewards programs to tenants. But are these programs really worth it?
Read more >> Gen Z, you can’t drive my carFewer young Americans are buying cars, or even getting driver’s licenses, likely due to these factors.
Read more >> Don’t know how to start saving for retirement?Here are ten ways to secure your financial future.
Read more >>Other news that caught our eye
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Oil prices surged at the start of the week as geopolitical tensions escalated in Eastern Europe, the Middle East, and Africa.
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NASA announced the stranded Boeing Starliner astronauts will return to Earth in February on a SpaceX ship, roughly 8 months after their one-week mission began. Boeing’s Starliner spacecraft will return unmanned due to safety concerns.
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Red Lobster will close about two dozen more locations this month, in addition to more than 100 restaurants already closed this summer, as part of the chain’s ongoing bankruptcy proceedings.
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Renewable energy company SolarEdge’s shares plummeted 9.2% after announcing its CEO would step down after five years at the helm.
Financial planner tip of the day
“IRAs offer individuals an opportunity to save money for retirement in a tax-advantaged plan, without relying on an employer-sponsored plan like a 401(k). In addition, with a few different types of IRAs to choose from, it’s likely that many people will find an account that fits with their needs and goals.”
Brian Walsh, CFP® at SoFi