Finance
Suze Orman: Americans are short on emergency savings amid ‘dangerous scenario’ for economy
Suze Orman speaks throughout AOL’s BUILD Speaker Sequence at AOL Studios In New York.
Jenny Anderson | WireImage | Getty Photos
An sudden invoice isn’t handy.
However there are much more causes now that an unexpected occasion — comparable to a automotive restore or medical expense — may put People on unstable monetary footing.
Blame document excessive inflation, which has soared to the best ranges in 40 years and pushed up costs for all the pieces, together with grocery retailer staples like butter, lettuce and dairy merchandise.
Heading into 2023, recession dangers additionally loom. The query is whether or not a downturn can be delicate or extended, whereas main tech employers like Amazon and Google have already began slashing jobs.
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In the meantime, the federal authorities has reached the debt ceiling. It is now as much as lawmakers to discover a resolution so the U.S. authorities can proceed to pay its payments.
“We’re having a monetary pandemic now, so to talk,” private finance skilled Suze Orman advised CNBC.com.
“It is a … extra harmful situation now than it was in the course of the pandemic,” Orman mentioned of the present monetary dangers People face.
Many People have been in a position to put aside extra money than normal in the course of the Covid-19 pandemic, as authorities support meant extra unemployment advantages for jobless People for longer, whereas tens of millions of people and households obtained stimulus checks.
These federal funds are actually dwindling, Orman mentioned, as payments — together with rents which have, in some instances, tripled and rates of interest on mortgages which have climbed greater than they have been earlier than the pandemic — begin to come due.
The surroundings stands out as the wake-up name many People want, she mentioned.
“You must have an emergency financial savings account, whether or not you are in recession or not in a recession,” Orman mentioned.
People residing paycheck to paycheck
There’s by no means been a greater time to have emergency money put aside.
But placing away a significant sum of cash continues to be a problem for a lot of People.
A brand new survey finds 74% of People are actually residing paycheck to paycheck, in line with SecureSave, a monetary know-how firm that goals to assist employees put apart emergency financial savings by means of their employers.
As inflation has soared, greater than half of respondents — 54% — have decreased their financial savings previously 12 months, SecureSave’s November on-line survey of greater than 1,000 U.S. adults discovered.
About 67% of employees can’t afford to pay for an emergency $400 expense.
Among the many issues that People remorse most about their private funds is the failure to avoid wasting for emergencies.
Mark Hamrick
senior financial analyst at Bankrate.com
Orman co-founded SecureSave in the course of the pandemic after having advised folks for 40 years they should have a financial savings account, she mentioned.
“Our purpose was quite simple: Let’s examine if we are able to change the financial savings fee in America for many who have by no means saved a penny earlier than,” Orman mentioned.
Many individuals typically fall in need of that purpose. A brand new survey from Bankrate.com finds that almost all adults — 57% — are unable to afford an emergency $1,000 expense.
“Folks simply cannot do that on their very own,” Orman mentioned. “The hot button is to not see it in your paycheck.”
By way of SecureSave, employees can have financial savings — comparable to $25 — routinely taken from their paycheck, and should then additionally obtain a $3 or $5 match from their employers.
On the finish of a 12 months, persons are typically stunned by the sums they save, whether or not it’s $600 or $1,000, Orman mentioned.
“They adore it,” she famous. “And plenty of occasions they may increase their paycheck contribution.
“When you begin seeing how straightforward it’s to avoid wasting, the extra you want to avoid wasting,” Orman mentioned.
By build up the money you may have available, you might be able to keep away from turning to bank cards as rates of interest rise.
To that time, 25% of shoppers surveyed by Bankrate.com mentioned they might cost an sudden expense of $1,000 or extra and pay it off over time.
That technique can be much more costly now, with new bank card presents for even the most effective certified people at rates of interest of virtually 20%, famous Mark Hamrick, senior financial analyst at Bankrate.com.
How financial savings may help different monetary targets
Guido Mieth | DigitalVision | Getty Photos
Establishing emergency financial savings with an employer is simply the primary hurdle in the direction of monetary wellness, in line with Orman.
The following purpose is to avoid wasting eight to 12 months’ bills in a separate financial savings account, Orman mentioned.
Even employees who’re strapped for money needs to be contributing sufficient to their retirement accounts as much as an employer match, if there’s one.
“You can not cross up free cash,” Orman mentioned.
As employees cut back their monetary stress, that will additionally assist employers. Nearly 30% of employees say they spend one to 2 hours a day worrying about cash, in line with SecureSave.
It may well additionally assist to stop regrets in a while, in line with Bankrate.com’s Hamrick.
“We have traditionally discovered that among the many issues that People remorse most about their private funds is the failure to avoid wasting for emergencies,” Hamrick mentioned. “The opposite is the failure to avoid wasting for retirement.”
Finance
GOP Rep. Andy Ogles faces reelection amid FBI campaign finance probe
Andy Ogles, a freshman Republican from Tennessee, is hoping to retain his seat in the U.S. House of Representatives amid an FBI investigation into alleged discrepancies in his 2022 campaign finances.
As the first-term congressman seeks reelection, he will face a strong challenge from Democrat Maryam Abolfazli, a progressive advocate from Nashville, in a district that has become increasingly competitive following recent redistricting.
Ogles, a member of the conservative House Freedom Caucus, confirmed in August that federal agents had seized his cellphone as part of an ongoing investigation into his campaign’s financial filings.
The inquiry stems from reported inconsistencies in Ogles’ 2022 records, including a $320,000 loan he initially reported making to his campaign.
Newsweek has contacted Ogles’ office for comment via email.
What is Andy Ogles Accused Of?
Ogles later amended his filings, lowering the figure to $20,000, and explained that the larger amount had been a pledge, not an actual loan, which he claimed was mistakenly included in the reports.
In addition to the phone seizure, FBI agents obtained a warrant to access Ogles’ personal email account.
However, according to court documents, investigators have yet to review the contents of the account.
Ogles has publicly stated that he is fully cooperating with the investigation and believes the discrepancies were the result of honest errors.
Why is Nashville Left-Leaning?
The scrutiny follows an ethics complaint filed in January 2023 by the Campaign Legal Center, which raised concerns about potential violations related to his personal and campaign finances.
The nonprofit, which advocates for transparency in political funding, compared Ogles’ situation to that of embattled New York Rep. George Santos, who has faced numerous investigations into his own campaign finances.
Ogles represents Tennessee’s 5th District, a Republican-leaning area that includes a portion of the liberal-leaning city of Nashville and stretches through five more conservative counties.
Although the district remains solidly Republican, the influence of Nashville’s progressive voters, combined with shifting national political dynamics, has created a potentially more competitive race than in the past.
In the 2022 election, Ogles won the seat by more than 13 percentage points, a result bolstered by the Republican-led redrawing of the state’s congressional districts after the 2020 census.
Lawmakers split Nashville into three separate districts, forcing longtime Democratic Rep. Jim Cooper into retirement and shifting the state’s congressional delegation to an overwhelming GOP majority.
Ogles’ district now includes part of the newly drawn 5th District, which spans from the Democratic stronghold of Nashville through more conservative rural counties. The redistricting was seen as a strategic move by Republicans to strengthen their hold on the state’s congressional seats.
Ogles faces a tough challenge from Maryam Abolfazli, a Nashville-based nonprofit leader and activist.
Who is Maryam Abolfazli?
Abolfazli, the founder of Rise and Shine TN, has been a vocal advocate for stronger gun control in the wake of the tragic shooting at the Covenant School in Nashville in March 2023, which left six people dead, including three children.
Since entering Congress, Ogles has become known for his vocal opposition to the Biden administration and his alignment with the most conservative factions of the Republican Party.
Beyond his financial controversies, Ogles has faced criticism for past statements about his educational background.
After a news outlet questioned his claim of holding an international relations degree, Ogles admitted to overstating his credentials, saying he was “mistaken” about his academic history.
Ogles, a former mayor of Maury County and state director for the conservative group Americans for Prosperity, remains a staunch defender of conservative policies.
He has filed multiple articles of impeachment against President Joe Biden and Vice President Kamala Harris, citing their administration’s policies on border security, the economy, and other issues.
Following Biden’s announcement that he would not seek reelection in 2024, Ogles introduced new articles of impeachment targeting Harris.
As the race in Tennessee’s 5th District heats up, Ogles’ ability to navigate the FBI investigation, manage his financial controversies, and hold onto his conservative base will be key to his chances of securing a second term.
This article contains additional reporting from The Associated Press
Finance
Stock market today: Asian shares are mixed after Wall Street drifts ahead of US Election Day
NEW YORK (AP) — Shares were mixed in Asia early Tuesday after U.S. stock indexes drifted lower a day ahead of the U.S. presidential election.
This week will bring various potential flashpoints, among them Election Day in the United States. But the results may not be known for some time as officials count all the votes, and that could bring sharp swings since markets hate uncertainty.
U.S. futures were virtually unchanged early Tuesday.
Adding to the potential for volatility, the Federal Reserve will also be meeting on interest rates later this week. The widespread expectation is for it to cut its main interest rate for a second straight time.
Investors also hope the Chinese government may announce stimulus for the world’s second-largest economy.
Japan’s Nikkei 225 index gained 1.3% to 38,552.67, reopening after a holiday on Monday.
South Korea’s Kospi fell 0.7% to 2,569.75, while the S&P/ASX 200 in Australia dropped 0.6% to 8,117.30.
The Standing Committee of China’s National People’s Congress is meeting this week, and analysts say the government may endorse major spending initiatives to boost economic growth amid troubles for the country’s real-estate industry.
The official Xinhua News Agency reported that the lawmakers had reviewed legislation to raise ceilings on local government debt to replace existing hidden debts, part of a process to arrange debt swaps to help resolve the financial woes brought on by the pandemic and by a collapse in the property market in recent years.
Hong Kong’s Hang Seng was up 0.1% at 20,597.30 and the Shanghai Composite index picked up 0.4% to 3,323.26.
On Monday, the S&P 500 slipped 0.3% to 5,712.69, remaining near its record set last month. The Dow Jones Industrial Average fell 0.6% to 41,794.60, while the Nasdaq composite slipped 0.3% to 18,179.98.
Intel fell 2.9%, and chemical producer Dow sank 2.1% in their first trading since getting notified they’ll no longer be included in the Dow Jones Industrial Average. Warren Buffett’s Berkshire Hathaway dropped 2.2% and was one of the heaviest weights on the market after reporting a drop in operating profit for the latest quarter.
But the majority of stocks within the S&P 500 rose, including a 2.8% gain for Fox after it reported a stronger profit than expected.
The hope that’s propelled U.S. stock indexes to records recently is that the U.S. economy can remain resilient and avoid a long-feared recession, in part because of the coming cuts to rates expected from the Fed.
The broad U.S. stock market has historically risen regardless of which party wins the White House. And in 2020, U.S. stocks climbed immediately after Election Day and kept going even after former President Donald Trump refused to concede and challenged the results, creating plenty of uncertainty. A large part of that rally was due to excitement about the potential for a vaccine for COVID-19, which had just shut down the global economy.
Finance
University of Phoenix and Goalsetter Launch Financial Wellness Webinar Series
Virtual, free series features Goalsetter’s award-winning curriculum along with guest speakers to support financial wellness
PHOENIX, November 04, 2024–(BUSINESS WIRE)–University of Phoenix is pleased to announce a new webinar series with Goalsetter, an award-winning financial education platform dedicated to helping individuals and families achieve financial wellness through engaging and practical resources. The ten-part series will launch with a discussion on “Managing Credit Card Debt and Fostering Good Credit Habits,” on Tuesday, November 19, at 12 p.m. MST. Featuring Tanya Van Court, Founder and CEO of Goalsetter, Kevin Soehner, Senior VP of Operations for iGrad®, and moderated by Chris Conway, Director of Financial Literacy at University of Phoenix, the discussion will focus on building good credit habits, understanding interest rates, and how credit can impact personal finance decisions. Throughout the series, participants will gain valuable insights and practical strategies to manage their finances and plan for a secure financial future, as well as have the opportunity to engage in a Q&A session during each webinar.
“At University of Phoenix, we are committed to equipping our students with the knowledge and tools necessary for financial success,” shares Director of Financial Literacy at the University, Chris Conway. “Our collaboration with Goalsetter aligns with our mission to empower students not only in their academic and career pursuits but also in their financial lives by helping them save time and money. This webinar series is designed to provide practical strategies and insights that can help learners make informed financial decisions.”
Each month during the series, University of Phoenix and Goalsetter will offer webinars focused on key strategies for financial wellness:
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November: Managing Credit Card Debt and Fostering Good Credit Habits
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December: Paying for School and Scholarships
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January: The Art and Science of Effective Budgeting
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February: Stop Overspending: 5 Tips
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March: Yes! You Can Save Money: Little Actions that Add Up
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April: Emergency Funds are Critical; How to Create Them, Even If You Think You Canʼt
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May: Why Credit Scores are Important and How to Improve Them
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June: How to Plan for Your Eventual Retirement
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July: Investing in Your Families’ Future
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August: How to Set Your Kids Up for Future Financial Success
“Our mission is to empower every individual with the financial knowledge they need to secure a strong financial future,” says Van Court. “By working with the University of Phoenix, we are bringing our award-winning financial education tools to a larger audience, helping individuals and families gain the practical skills to make informed financial choices. Together, we aim to create a pathway toward financial freedom that’s accessible, engaging, and transformative.”
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