US financial news | Summary news 21 August
Headlines: Monday 21 August 2023
- $39 billion of student debt being wiped this week.
- 20% of student loan borrowers to pay $500 monthly when payments resume, according to study
- 30-year fixed-rate mortgage weekly average hits highest level in 20 years at 7.09%
-Minimum wage in Florida set to increase in September
- New requirements to receive SNAP benefits in 2024 set to take effect soon
- Gas prices are up this summer as extreme heat hampers oil refinery operations
- 187,000 jobs added in July, unemployment falls to 3.5%
The US is an expensive country to retire. Desirable places, be it big cities or the coast, cost a lot to live in. Retiring before being eligible for Medicare means healthcare costs can be astronomical, a particular worry for people marching toward old age.
Another option can be to jet away to Europe. These are the best place to move to but there will be consequences for those you may be displacing.
The five worst states to retire in
Alaska was declared the worst state for retirement, followed by New York, California, Washington and Massachusetts.
Alaska was particularly low due to its awful weather and low affordability. According to data gathered by the Bureau of Economic Analysis, Alaska has the sixth-highest cost of living in the country
New York was the most expensive state to live in, making it difficult for reitrees to move to the state.
Choosing where to retire is not an option for many people. A Census Bureau report from 2022 found only 6.2 percent of people over the age of 65 move in a given year.
But if you were to move in retirement, what are the options? Bankrate has been studying people’s options for each state based upon these factors and the winning state may come as a surprise.
A 529 plan is a tax-advantaged savings plan in the United States designed to help individuals and families save for education expenses.
One of the main advantages of 529 plans is the potential for tax benefits. The earnings grow tax-free and withdrawals are not subject to federal income tax if they are for education purposes. If not then they have a 10 percent penalty.
There are two types of 529 plans: college savings plans and prepaid tuition plans.
Mortgage rates have been trending up in the US. This report details how these rates will evolve, how much they will rise and how far they can go.
Gas prices dip after steep summer rise, but more increases could be in the offing
Gas prices since early July jumped on average nationwide by nearly 40 cents to $3.86 by mid-August according to GasBuddy data, an increase of over ten percent. Since then, drivers have seen the cost per gallon retreat slightly with the biggest drop occurring over the past week. However, the company warns that there could be further price spikes at the pump as the nation moves deeper into the hurricane season.
Over 1,000 flights to and from the US Southwest were canceled and thousands more delayed due to Tropical storm Hilary.
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Certain Social Security beneficiaries will receive two checks in September. Find out who will receive them and when the exact payment dates will be.
After aggressive hikes, when will Fed cut interest rates?
The Federal Reserve, starting in the spring of 2022, began raising interest rates at the fastest pace in four decades to squash rampant post-pandemic inflation. Over 12 meetings, policymakers raised rates 11 times taking them from near zero to the 5.25-5.5% range, the highest level since 2001. The last increase, in July, was a quarter point hike after pausing the month before.
While the central bank may yet ratchet up rates even further depending on economic indicators, investors are now wondering when the cost of borrowing may decrease. Deutsche Bank Chief US Economist Matthew Luzzetti walks through some of the paths that may convince the Fed to lower interest rates.
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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.
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.
30 year fixed rate mortgage weekly average hits two decade high
The weekly average rate for a 30 year fixed-rate martgage broke the 7% mark and reached its highest level in over 20 years for the week ending 17 August according to Freddie Mac data.
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.
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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.
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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.
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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.
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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.
Good morning and welcome to AS USA's live financial blog!
We will be bringing you the latest on SNAP benefits news Social Security updates and student debt plans, as well as other financial news affecting US consumers as policymakers continue to work to tame inflation.