#782: Changes Coming for Your Retirement Plan

 Interesting article from KCM Media on changes coming in 2023

#781: Fidelity's Public 2023 Financial Resolutions Study

 An interesting bird's eye view of American attitudes about our current economy.

#780: Financial Aid Letters Don't Reveal Real Cost of College

 Another excellent article from Michelle Singletary of the Washington Post - find it here

#779: More Good Tips from Michelle Singletary on iBonds

 Read WaPo article here

#778: 4 Ways Inflation Can Help Cut Taxes

 Read this article here

#777: Planning for the Future

 

#776: Social Security Up, Medicare Down for 2023

 From the Washington Post:

https://www.washingtonpost.com/us-policy/2022/10/12/social-security-cola-2023/

#775: Inflation Adjusted Tax Rates & Other Changes for 2023

From the Washington Post.  You may be required to register for a free account that provides a limited number of articles each month.

https://www.washingtonpost.com/us-policy/2022/10/18/irs-deductions-brackets-inflation/

#774: Recessions Have a Silver Lining

 From the Washington Post (you may have to register for a free WAPO account to get a limited number of free articles each month).  I'm a big fan of Michelle Singletary, the personal finance columnist.

https://www.washingtonpost.com/business/2022/09/28/recession-seven-silver-lining-strategies/

#773: Grocery Stores, Supply Chains & Inflation

 

#772: Overdraft Overdrive from 8/9/22 Morning Brew

Few things can ruin your day like a notification from your bank alerting you (or should I say, thanking you?) for taking out a bit too much from your checking account. Ugh. Those few dollars you spent beyond your balance now mean an extra $35 or so down the drain. Yikes. 

For some, this is nothing more than a big bummer that might make them rein in their spending (or at least check their balance before withdrawing cash). But for many Americans living paycheck to paycheck, overdraft fees have become a constant handicap that adds insult to injury in tough times. For example, a series of steep medical bills charged to a near-empty account could inflate the owed balance by hundreds of dollars in the end. Looking at it this way, punishing an account holder who already lacks funds with an overdraw fee per transaction sounds more like a poverty tax in action. 

You’d think your bank would decline a debit card charge if your account didn’t have enough funds to complete a purchase, but where’s the profit fun in that? Banks began charging overdraft fees in the 1990s and that sneaky penalty against underfunded transactions made them over $8 billion in 2021. Also, according to a report by Oliver Wyman, US consumers who overdraw account for over three-fourths of the profitability of mass market checking accounts.

What’s that look like in money terms? Compare top players—like JPMorgan, Wells Fargo, and Bank of America—that made over $1 billion each thanks to these fees to the frequent overdrafters who tend to have an average checking account balance of $600 and a credit score around 582. This pool makes up only 10% of mass market consumers yet creates over 80% of that overdraft revenue. Wow.

It turns out these fees are so sus that the Consumer Finance Protection Bureau (CFPB) is running an investigation on their transparency and proportionality, and is pushing for new regulations. As part of this investigation, the CFPB put out a request for Americans affected by overdraft fees to share their experiences and has received close to 50,000 submissions. Some heart-wrenching complaints included, “Overdraft fees and hidden fees prey on people, especially those who are already underprivileged and struggling,” and “Charging for overdraft is like picking at the bones of a decomposed corpse.”

With all the bad vibes in the air, some banks preemptively washed their hands of the practice this year: Ally Bank and Capital One completely eliminated overdraft fees, JPMorgan gave a window to replenish insufficient funds, and Bank of America announced reduced fees.

However, to end overdraft fees for good, the federal government may have to intervene. Otherwise, this vicious cycle will continue to punch down those who can’t afford it.—Isabel

#771: Last Minute Tax Tips

 

#770: Elon Musk Offers to Buy Twitter

 

#769: Inflation Hits 40 Year High

 

#768: Inflation & The Price of Eggs

 

#767: Through the Roof

 An interesting 60 Minutes segment on the shifting rental market in the USA

#766: Inflation Explained

 An excellent basic explainer from the Washington Post: https://www.washingtonpost.com/business/interactive/2022/what-is-inflation/?itid=hp-more-top-stories

You may need to create an account to access a limited number of free articles per month.

#765: Trump's Longtime Accounting Firm Says His Financial Statements Cannot Be Relied On

 From the Washington Post 2/15/22.  You may need to register for an account that will allow access to a limited number of free articles each month.

It is rare to have an accounting firm disengage so publicly from a client.  Mazar's has indicated that financial statement users should no longer rely on statements from 2011 - 2020 over concerns that property values were misstated.

https://www.washingtonpost.com/business/2022/02/14/trump-accountant-financial-statements/

#764: On the Challenge of Retail Returns

 From Retail Brew 1/11/22:

Let’s be honest: You want to send back that highlighter-yellow sweater you got for Christmas, but don’t want to go through the hassle. Well, you aren’t the only one.

Nearly all shoppers (95%) said a poor returns experience will make them less likely to buy from a brand again, according to the 2022 Omnichannel Returns Index from market research firm Incisiv and Appriss Retail.

More is on the line for retailers now, as shopping continues to shift online. E-comm purchases are returned at least 3x more frequently than in-store buys, explained Giri Agarwal, Incisiv’s chief strategy officer.

Why does it matter? He called out the costs of the Es: environmental (more packaging and transportation), economic (prices passed onto consumers), and emotional (the potential for more poor experiences).

• Still: “Returns aren’t all bad,” Agarwal told Retail Brew. They’re part of the business, but need to be “optimized” to cut down on the ones that should’ve never happened to begin with, he noted.

Show me: Apparel is the segment furthest along when it comes to “returns flexibility,” the report found.

• All 28 companies assessed in the space let orders be returned in stores, and 90% allow replacement or exchanges.

That makes sense to Agarwal, given the high return rates of the category. But he was surprised by “how relatively immature everybody is.”

Agarwal noted that Amazon is really leading the charge on returns, thanks in part to its thousands of free drop-off options. Many companies will be forced to follow in step.

• “They’re going to push traditional retail to begin to match up to that expectation,” he said.—KM

#763: Why Manufacturing Workers Are Quitting

 An interesting article from the Washington Post.  You may need to register to access, but registration unlocks 10 free articles per month.

https://www.washingtonpost.com/opinions/2022/01/09/why-manufacturing-has-seen-biggest-spike-workers-quitting

#762: What You Need to Consider When Looking to Buy a Home