Share to Twitter Share to Linkedin The relentless pace of the Federal Reserve’s rate hikes are coming against a backdrop of large numbers of older adults struggling economically and taking on debt to make ends meet. Even before the pandemic, debt was growing among older households . And the pandemic hit older adults especially hard . They experienced outsized health and employment impacts and weren’t eligible for some of the more generous forms of pandemic relief, which focused on families with children at home. And even as the economy has rebounded, for many older adults, economic pressures continue. Last year, poverty rates for those over age 65 went up , while falling for other age groups. And it’s not only those at the very bottom of the economic ladder who are struggling. The share of people reporting difficulty paying regular expenses (things like groceries, rent, and healthcare) has nearly doubled over the last 12 months and now stands at 35% … [Read more...] about Older Adults And Debt: A Storm On The Horizon?
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Representative image Foreign investors have been aggressively buying Indian equities in November, investing Rs 30,385 crore this month so far, on stabilisation in rupee and resilience of the domestic economy compared to global counterparts. However, going forward, buying by Foreign Portfolio Investors (FPIs) is unlikely to turn very aggressive as high valuations in India are a headwind, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. Further, valuations in markets like China, South Korea and Taiwan are very attractive now and so more FPI money is likely to move to these markets, he added. According to data with the depositories, FPIs invested a net sum of Rs 30,385 crore in equities during November 1-18. This came following a net outflow of just Rs 8 crore last month and Rs 7,624 crore in September. Prior to these outflows, FPIs were net buyers in August to the tune of Rs 51,200 crore and nearly Rs 5,000 crore in July. Before that, … [Read more...] about FPIs invest Rs 30,385 crore in Indian equities in November so far
Representative Image: Reuters Sebi has proposed to do away with the system of share buyback through open market transactions in a phased manner as well as reduce the overall time period to address the drawbacks associated with the existing buyback mechanism. Also, the markets watchdog proposed to enhance the threshold for companies to buyback shares from their free reserves, reduce the cooling-off period between two buybacks under the tender route and shift the tax incidence fully to the share-tendering shareholders rather than the companies concerned. The sweeping proposals are part of a consultation paper floated by the Securities and Exchange Board of India (Sebi) on which comments from the stakeholders have been sought till December 1. The consultation paper was released on Wednesday. A glide path has been proposed with respect to the reduction in the maximum limit and the time period for a buyback offer through the open market under the stock exchange mechanism. … [Read more...] about Share buyback offer: Sebi moots glide path; proposes to do away with open market option
Share to Twitter Share to Linkedin With mortgage rates skyrocketing to highs we haven’t seen in well over a decade, accessing your home equity may be more costly than just a few months ago. If you are reading this post, I'm guessing you have owned a home and hopefully have substantial home equity. As a financial planner , I’d caution you only to use your home as a piggy bank if there are no other viable options to meet your need for cash. Keep reading as we highlight the most common ways to access your home's accumulated value. Home Equity Line Of Credit (aka HELOC) A home equity line of credit can act as a quasi-emergency fund. I like to see people use a HELOC for that rare emergency or a temporary cash flow crunch. While HELOCs can be very flexible, they can be costly if used improperly. The best time to establish a HELOC is when you don't need the money. You establish the ability to borrow a certain amount against your home equity. Setting … [Read more...] about 7 Ways To Capitalize On Your Home Equity
Share to Twitter Share to Linkedin When the U.S. came close to not raising the debt ceiling in 2011, stock markets fell over 10% and the debt of the U.S. government was downgraded by S&P from AAA to AA+. Now, there are fears of debt ceiling risk for markets once again in 2023. The political environment is similar to 2011, though perhaps politicians have learned their lesson. The Debt Ceiling Is Looming In 2023 Currently the debt ceiling is a little under $31.4 trillion . U.S. government debt, which is not precisely comparable, since some debt is excluded from the debt ceiling calculation, stands at $31.3 trillion . Most estimates have the debt ceiling being reached in early 2023. We’re clearly getting close. The Treasury Secretary may be able to use extraordinary measures to buy several months of additional time beyond that. Still, the debt ceiling is likely approaching at some point in 2023. Lame Duck Plans Failing Democrats had … [Read more...] about Debt Ceiling Risk Looms For Markets In 2023
Share to Twitter Share to Linkedin Trying to keep the lid on federal borrowing with a statutory debt limit is like trying to manage your weight by refusing to buy bigger pants. Neither actually works because both are forms of performative discipline. Each involves an expression of hard-nosed determination, but neither involves any actual hard work. Ultimately, if you want to avoid packing on the pounds, you have to limit the doughnuts and maximize your time at the gym. And if you want to constrain federal debt, you have to limit government spending and increase tax revenues. There is no substitute for doing the work. Now in theory, tight pants and limited borrowing authority might motivate some hard work. You can judge for yourself whether holding onto those pants from college has inspired any healthy habits over the years. But it’s self-evident that the debt limit has failed to curb federal borrowing. In October America’s gross national debt … [Read more...] about Worried About Federal Debt? Then Raise Taxes, Cut Spending, And Abolish The Debt Ceiling
Share to Twitter Share to Linkedin Some are now claiming that you, especially if you are a kid, may have some debt. In this case, they’re not talking about the shouldn’t-have-traded-on-the-FTX-crypto-exchange-as-a-five-year-old kind of debt. No, there are claims that you may have what’s being called “immunity debt” from Covid-19 precautions like face mask wearing. The assertion is that not being exposed to respiratory viruses over the past two years has left your immune system “out of practice” and thus weaker. And having such supposedly weaker immune systems is supposedly leaving many people more susceptible to viruses like the respiratory syncytial virus (RSV), hence the current surges in such pathogens . So is there any truth behind such claims? Or are they yet another attempt at railing against face masks , social distancing, and other “inconvenient” Covid-19 precautions that you can do to, you know, help your fellow humans not get sick and die? You’ve … [Read more...] about Are ‘Immunity Debt’ Claims After Covid-19 Precautions Accurate Or Misinformation?
Share to Twitter Share to Linkedin With our student loan debt crisis raging on and Biden's student loan forgiveness plan now officially paused, it's easy to see why parents of college students — and college school students themselves — are worried. Nothing seems to be going right in the higher education space, and it couldn't come at a worse time since monthly payments on federal student loans are set to resume in January of 2023. But, some segments of borrowers seem to be much worse off than the rest. Specifically, students who have earned a graduate degree or are in graduate school tend to take on more than their share of debt. There are a multitude of reasons those who attend graduate school wind up with more student debt than the rest, as the Brookings Institution recently pointed out . The most obvious reason is the fact graduate school students tend to borrow for both their undergraduate education and graduate school. Beyond that, graduate … [Read more...] about As Graduate School Student Loan Debt Balloons, It’s Time To Implement Borrowing Caps
Share to Twitter Share to Linkedin Leaders and funders should look across their organizations and think creatively about leveraging all the tools available to further equity. Our current and growing inequities experienced in our Black and Brown communities demand it. Currently, when funders are interested in supporting community enterprises, all too often the sole focus is philanthropy. Although funding is extremely important, it is imperative that we explore how to build economic opportunities through multiple different avenues. But where to begin? Research shows that Black and Latinx entrepreneurs are less successful in accessing capital to grow their companies, one of the most important ingredients to business success. The Foundation for Business Equity (FBE) helps to address the widening income and wealth gap experienced most acutely by Black and Latinx communities. By focusing on scaling businesses of color, we can create greater wealth for … [Read more...] about Moving Beyond Philanthropy: How Companies Can Create Equity Through Innovative Ways
Share to Twitter Share to Linkedin Although the legal battles wage on over President Joe Biden’s student loan debt forgiveness program there may be some relief. The U.S. Department of Education has stated that student loan borrowers who made payments on their debt during the pandemic-era pause on the bills could be automatically refunded . Even with total forgiveness on hold, refunds still have the potential to start closing the racial wealth gap. The Breakdown You Need To Know: More than 9 million people made at least one payment on their federal student debt between April 2020 and March 2022, according to the government, so a refund could go a long way. Now a Trump appointee, Texas-based Judge Mark Pittman, struck down Biden’s broad student loan forgiveness program and issued a nationwide injunction purporting to block it across the country. This refund process will be automatic for borrowers who are eligible for student loan forgiveness . … [Read more...] about Student Debt Forgiveness On Hold, Are Refunds Still Possible?