I bonds are the one investment everyone should have right now

If there is one investment every person should have right now, it is a series I bond, according to personal finance expert Suze Orman. The bond’s variable interest rate is based on inflation, which means the asset currently has a high yield. The Consumer Price Index rose 8.6% in May, the highest rate since 1981. … Read more

Mortgage rates are rising. Here’s how to adjust your housing budget

Lifestylevisuals | E+ | Getty Images Homebuyers are feeling the squeeze of rising mortgage rates. On top of that, housing prices remain high. That may lead many to rethink their budget. “As mortgage rates go up, it raises the cost of buying a home with a mortgage,” explained Danielle Hale, chief economist at Realtor.com. “For … Read more

Here’s how to know the amount you can afford

Sdi Productions | E+ | Getty Images Debt impact ‘is not readily apparent’ to young borrowers As college tuition has increased, so has the average loan balance, which has tripled since the 1990s, to $30,000 from $10,000. Some 7% of borrowers have more than $100,000 in debt. “Young people, mostly we’re dealing with high-school students, … Read more

Here’s a simple way to see how inflation erodes your long-term savings

Sean Gladwell | Moment | Getty Images Inflation is at a 40-year high. That means consumers are losing buying power at a faster-than-usual pace. Just how quickly is inflation eating away at your savings? The so-called rule of 72 can help gauge its long-term impact. This rule of thumb is generally applied to investment returns. … Read more

Lifetime income illustrations are a ‘wake-up call’ for 401(k) savers

I think it’s very helpful for helping people start to think about outcome, and not emphasize the big pile of money. Philip Chao principal and chief investment officer at Experiential Wealth Blackcat | E+ | Getty Images The big-picture view of a lump sum may tell investors little about how their total savings will or … Read more

How to buy more than $10,000 in nearly risk-free I bonds this year

Chris Ryan | Getty Images I bonds have surged in popularity as riskier assets slip. The bonds are backed by the federal government, the principal doesn’t lose value and the bonds earn monthly interest through two parts, a fixed rate and a variable rate. Currently, the variable component will pay a record 9.62% annual rate … Read more

Your next quarterly 401(k) statement may be alarming. Here’s why

Your internal alarm bells may ring when reading your next 401(k) plan statement — at first blush, at least. Traditional 401(k) statements — regular notices that arrive by mail or online — show investors how much money they’ve saved for retirement, among other information such as investment allocations. Soon, they’ll also see how their nest … Read more

Child care is more expensive. What parents pay and how they’re coping

Hill Street Studios | Digitalvision | Getty Images American parents, already grappling with rising inflation, are facing another soaring cost: child care. Some 63% of parents report child care has become more expensive over the past year, according to a survey by Care.com. That high number has many concerned about whether they can afford care … Read more

Still missing your tax refund? You’ll soon receive 5% interest

Bill Oxford | E+ | Getty Images If you’re still waiting for a tax refund, there’s a silver lining: it may be accruing interest, and the rate jumps to 5% from 4% on July 1, according to the agency’s latest quarterly adjustment. Typically, the IRS has 45 days after the filing deadline to process returns … Read more

Here’s what the Fed’s highest rate hike in 28 years means for you

The Federal Reserve raised its target federal funds rate by three-quarters of a point, the largest increase in nearly three decades, at the end of its two-day meeting Wednesday in an effort to quell runaway inflation. “The motivation for all of this is that prices are going up,” said Chester Spatt, a professor of finance … Read more