Author: Arabian Media staff
Key Takeaways The Federal Reserve’s interest rate moves directly impact the APYs savers earn.Rate cuts can erode consumer purchasing power.Pay close attention to Fed-related headlines for any clues regarding the direction of interest rates.Online banks may respond more aggressively to Fed policy changes.Consider ladders of long-term CDs or T-bills that may offer better rates or stability. The actions taken by the Federal Reserve impact the entire economy, and this includes savings account rates. When the Fed cuts the federal funds rate, banks typically follow suit by reducing their own interest rates. At the Federal Reserve’s recent meeting, Chair Jerome Powell…
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Key Takeaways About 70% of spouses choose the same Medicare Part D plan, even if it costs more over time. Couples who pick identical plans spend an average of $690 more per year, and as high as $1,000 more. Medicare Part D is meant to be tailored to each person’s prescription needs, so individual plan selection is key. Use the free Medicare.gov plan finder to compare costs based on your prescriptions and find the best value. Enrolling in the same Medicare Part D plan as your spouse can be convenient—but it can cost you. A 2025 study found couples often…
Credit cards can be a huge convenience. But if you aren’t careful, they’re also an easy way to get into serious financial trouble and end up with high debts and bad credit. The best way to handle credit cards is to spend frugally and pay promptly. But for those people already struggling, the following are some ways to reduce credit card debt, from payoff strategies to debt settlement. Key Takeaways Credit card debt is expensive, and having too much of it can hurt your credit score.Credit cards have high interest rates, so any balance left at the end of the…
Key Takeaways Bridgewater Associates founder Ray Dalio warns that growing wealth inequality is driving both left- and right-wing populist movements. These movements are creating “irreconcilable differences” that threaten the stability of the markets. Government intervention in private business signals a shift toward state capitalism that Dalio says mirrors the dangerous era of the 1930s. Ray Dalio isn’t just worried about markets—he’s worried about democracy itself. In an interview with the Financial Times this week, the Bridgewater Associates founder compared today’s widening “wealth and values gaps” with the 1930s, when he says economic extremes fueled the rise of authoritarian governments. The…
Key Takeaways For the most part, home listing prices increased within three years after a major disaster. While there may be an initial drop as hard-hit areas rebuild, prices usually bounce back because of reduced housing supply, which increases buyer competition. If your home is in an area hit by a natural disaster and you think you may want to sell, your prospects may be better than you’d imagine. For potential buyers, “disaster discounts” may be small or non-existent unless you act quickly. You might expect home prices to plummet after a major disaster like Hurricane Harvey. The storm brought…
What Is Indexed Universal Life Insurance (IUL)? Indexed universal life (IUL) insurance is a type of universal life insurance that provides a cash value component along with a death benefit. The money in a policyholder’s cash value account can earn interest by tracking a stock market index selected by the insurer, such as the Nasdaq-100 or the Standard & Poor’s 500. If your policy also has a fixed-rate account, you can choose how much you want to go into each account. Although the interest rate derived from the equity index account can fluctuate, the policy does offer an interest rate guarantee, which limits your losses.…
What Is a Section 1031 Exchange & Who Uses It? A 1031 exchange is a swap of one real estate investment property for another that allows capital gains taxes to be deferred. The term—which gets its name from Section 1031 of the Internal Revenue Code (IRC)—is often used by real estate agents, title companies, investors, and more. Some people even insist on making it into a verb, as in, “Let’s 1031 that building for another.” IRC Section 1031 has many moving parts that real estate investors must understand before attempting its use. An exchange can only be made with like-kind…
Key Takeaways Americans gave a record $592.5 billion in 2024, driven by a strong stock market and economy.Fewer people are donating—down from about two-thirds of Americans in the early 2000s to under half in recent years.Wealthy individuals, corporations, and foundations are making up more of the total, creating what experts call “top-heavy” philanthropy.Tax law changes are a significant reason, especially a shift in 2017 that decreased the number of households that itemize their deductions, making donations less rewarding for many everyday givers. Americans gave a record $592.5 billion to charity in 2024, but fewer of us are actually reaching into…