US financial news | Summary news 20 August

Turn modest retirement contributions into a small fortune

It's possible to beat inflation and prepare for the time when you finally stop working, even with the smallest amounts of money being tossed into your retirement nest egg. The key is time.

It takes a lot of it before the earnings on your past investment gains start to make more of a positive difference than your annual contributions to a retirement account do.

Thus, It's best to invest a little over a long period of time.

PERSONAL FINANCE

How much should you save for an emergency fund?

A recent survey shows that more and more Americans are living from paycheck to paycheck and do not set aside any money, with 67% saying they don’t have a big enough emergency fund to cover a sudden expense of $400.

This is a rather small amount in the scheme of major life events, but even if you have much more than that, it may still not be enough to cover emergencies.

How much should one have in an emergency fund?

WELFARE

$914 direct payments from Social Security on September 1: Who will receive them?

Each month, the SSA sends benefits to retired workers and survivors; that is, the children, spouses, widows, widowers, or parents of a deceased beneficiary.

The SSA also sends disability benefits from the Supplemental Security Income (SSI) program and Social Security Disability Insurance (SSDI).

Some recipients can receive up to $914 on Sept. 1. Find out if you are one of these beneficiaries, as well the full schedule for the month.

FINANCE

How does mortgage interest work? How is your interest rate calculated?

When purchasing a house, you’ll most likely have to take out a loan. Before going to a lender to apply, one of the key elements to keep in mind is the interest you will have to pay on your mortgage.

Several factors go into determining what interest rate you will have to pay on your mortgage. These include the type of loan you apply for, what the market rate is and your creditworthiness to name a few.

How is your mortgage interest rate calculated?

Mortgage rates hit 21-year high

Mortgage rates surpassed 7% this week, hitting the highest level in more than two decades.

The average rate on the popular 30-year fixed mortgage increased to 7.09% this week, up from 6.96% the week prior, according to Freddie Mac.

That's the highest point since the first week of April 2002 and marks just the third time rates have exceeded 7% since then. The last times were in October and November of last year, when the rate reached 7.08%.

How Social Security works

Every month, the Social Security Administration issues millions of payments to its beneficiaries. Most of them are retired workers or people with some type of disability.

The exact amount received depends on the situation of each person, while the date of payment is linked to the day of birth of the beneficiaries. 

FINANCE

What happens if you die without a will? Who will inherit your money and properties?

Organising a will is a necesity once you own some expensive assets. They prevent legal wranglings between family members which would undoubtedly turn relationships toxic.

So what happens if you haven’t prepared one and pass away?

FLORIDA

How much will Florida minimum wage rise to in September 2023?

Currently, the standard minimum wage in Florida is $11 - but this amount is to rise to $12 from 30 September 2023.

What’s more, automatic increases of $1 are scheduled to take place every year until 2026, as follows.

WELFARE

Social Security: What to do if you haven’t received a payment and how to claim it

Payments are often on time and late payments only take place on rare occasions, so if you don’t receive your Social Security check on the scheduled date, SSA recommends contacting your bank or financial institution first.

If the bank hasn't received the money, then you should contact Social Security offices directly to report a missing, late, or stolen payment. 

Estee Lauder sees weak annual profit on slow recovery in Asia, waning US demand

Estee Lauder forecast annual sales and profit below estimates, indicating a slower-than-expected rebound in its travel retail business, mainly in Asia, and waning demand in the United States, sending its shares down about 3%.

Major global companies have taken a cautious stance on their China recovery, as the world's second-largest economy struggles to revive demand and battles rising youth unemployment rates and a high cost of living.

WELFARE

SNAP: These are the new requirements to receive food stamps in 2024

To receive SNAP benefits, it is necessary to meet certain requirements such as meeting gross and net income limits, resources, among others. Despite being a federal scheme, each state administers its program, and the requirements may vary in different areas.

The Food and Nutrition Service of the United States Department of Agriculture establishes certain general criteria, which usually change each year, taking effect each October. Benefit amounts also change annually.

After the Fiscal Responsibility Act of 2023 was signed into law, some requirements to be able to receive SNAP benefits have changed and will go into effect very soon.

Could interest rate hikes have come to an end?

The US economy continues to grow as financial experts abandon recession forecasts. The stock market has staged a rebound rally after enduring its most challenging year since the 2008 financial crisis in 2022.

Inflation is falling faster than expected. Home prices have stayed firm against mortgage rates that have topped 7% at times. Consumers are still spending down their pandemic savings.

HAWAII WILDFIRES

How to avoid scams if you want to donate money to the victims of the wildfires in Hawaii

The devastating wildfires in Hawaii have killed more than a hundred people and left thousands homeless, and also razed businesses and historical sites to the ground.

The fires that began on Aug. 8 are considered the deadliest natural disaster in the history of the state, and locals need as much help as they can to recover from the tragedy.

Many people want to help, but unfortunately, there are others who take advantage of the situation by setting up schemes to scam potential donors. Make sure that the assistance that you want to provide goes into the hands of those who are truly in need

Good morning and welcome to AS USA's live financial blog!

We will be brining you the latest on SNAP benefits news as well as Social Security updates and student debt plans.