Markets News 

Economists say a recession is coming: How can 401 investors prepare?

“That reasonable anxiety can prompt 401(k) participants to decrease their contributions or even cash out on their retirement savings entirely” writes Nick Strain for marketwatch.com. An economic downturn may tempt investors to put even less into retirement savings while waiting for a bull market to return.Stopping contributions, especially in a recession, will have a net negative effect on your overall retirement savings and plan.When you stop contributing to your retirement savings in a recession, you are missing the chance to buy stocks at the lowest prices.It is nerve-racking to watch…

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How the real estate commission gets divided among agents

“So each brokerage company (listing agent and buyers agent) gets 2.5 to 3 percent of the sales price” writes Ilyce Glink for washingtonpost.com. Being a real estate agent is expensive, too.Samuel J. Tamkin is a Chicago-based real estate attorney.There is a reason people continue to pay 5 percent to 6 percent to real estate companies — and not directly to the agents.You raise a good point about the expenses that go into running a real estate brokerage. Source: washingtonpost.com

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Health savings accounts could cure cost crunch for seniors

“Right now, Medicare recipients are not allowed to keep contributing to, or to start, health savings accounts” reports washingtonexaminer.com. The effect would be to allow out-of-pocket expenses to be treated on a pre-tax, rather than post-tax, basis.Also co-sponsored by Republican Mike Kelly of Pennsylvania and Democrat Lucille Roybal-Allard of California, H.R. 3796 would implement a very simple change that could reduce effective out-of-pocket costs by 25%.A new, bipartisan effort in Congress wisely aims to reduce out-of-pocket medical costs for senior citizens without requiring a complicated, systemic revamping of the whole…

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The health insurance system would collapse if everyone picked the right plan

“Bernie Sanders (I-Vt.) and (on a slower timetable) Warren solve the issue in one way: People would no longer make bad insurance choices because they would no longer have insurance choices” writes Peter A for washingtonpost.com. But a $2,000 insurance deductible means your insurance won’t cover your expenses until you’ve spent $2,000 out-of-pocket on medical care.To understand why the financial viability of the ACA’s insurance plans rely on bad choices, imagine what would happen if everyone made good ones. Source: washingtonpost.com

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China’s Pinduoduo posts bigger loss as costs surge; shares tumble

“Net loss attributable to ordinary shareholders widened to 2.34 billion yuan in the quarter ended Sept. 30, from 1.1 billion yuan a year earlier” writes Midwest Communications Inc for 95kqds.com. Operating expenses of Pinduoduo more than doubled to 8.47 billion yuan ($1.20 billion) in the quarter as sales and marketing costs surged 114%.Analysts on average had expected a loss of 0.53 yuan per ADS. Revenue rose 123% to 7.51 billion yuan.(Reuters) – China’s Pinduoduo Inc reported a bigger-than-expected quarterly loss on Wednesday due to higher operating expenses, sending the e-commerce…

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Ravenna woman admits to stealing $490,000 from employer, using money to pay credit card bills

“Ladd embezzled money to pay for her personal bills and expenses, including her credit cards, the plea agreement says” writes Cleveland Com for cleveland.com. CLEVELAND, Ohio — A Ravenna woman admitted in court Monday to stealing more than $490,000 from a company in Kent where she worked.Victoria Ladd, 50, stole the money while working at Jos-Tech, a thermofoaming and plastic fabricating business.She worked for the company for several years before leaving in 2018 and had access to the company’s bank account to pay for business expenses, according to a plea…

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I’ve paid off $12,000 of credit card debt in 3 months thanks to a strategy that’s just strict enough to work

“We already had about $5,000 in credit card debt lingering around” writes Kelly Burch for businessinsider.com. In the lead-up to the move and the first month of owning our home, we wracked up about $15,000 in credit card debt.We put incidentals like groceries, Amazons purchases, or a meal out on a specific rewards credit card.Enter, credit cards.Any money that comes in after the bills are paid is immediately transferred to pay off credit card balances. Source: businessinsider.com

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Early retirement gone wrong: how to make sure your FIRE plans don’t get derailed

“If you miscalculate your future expenses, you could end up exhausting your nest egg ahead of schedule” writes Markets Reporter for marketwatch.com. In fact, the biggest unexpected cost in retirement is a major home repair, according to a Society of Actuaries study on unexpected or shocking retirement expenses.If your early retirement is a team effort as part of a marriage or committed partnership, experts say you need to make sure you also plan for if it were just you.For members of the FIRE movement — short for “financial independence, retire…

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Top 8 year-end tax tips from Intuit TurboTax

“Learn these top 8 year-end tax tips in order to maximize your tax refund or minimize the taxes you owe” writes Aol Staff for aol.com. Sometimes accelerating tax deductions can cost you money… if you’re already in the alternative minimum tax (AMT) or if you inadvertently trigger it.Income is taxed in the year it is received—but why pay tax today if you can pay it tomorrow instead?. Don’t miss out on valuable tax deductions if you can itemize rather than claiming the standard deduction. Best investments for boosting your tax…

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