There are 34 days left until the Bitcoin network’s halving event, expected on or around April 20, 2024, which will reduce miners’ rewards by half. Bitcoin’s price has remained above $60,000 throughout March, reaching close to $74,000 on March 14. Between onchain fees and the price increase, these factors could offset revenue losses from the […]
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It’s no secret that lots of analysts like tech behemoths like Amazon.com Inc., Microsoft Corp. and Nvidia Corp. amid the AI gold rush. But as of Friday, they liked one just a bit more, at least based on the percentage of ‘buy’ recommendations: Delta Air Lines Inc.
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Robert Kiyosaki has issued a stark warning about an impending financial disaster, which he believes will devastate baby boomers. A crypto analyst predicts bitcoin could exceed $330,000, defying historical growth patterns through a combination of pattern disruptions and the theory of diminishing returns. Venture capitalist Tim Draper forecasts that bitcoin will dramatically transform El Salvador […]
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For millions of older adults, Social Security is a safety net in retirement. Around 21% of adults age 50 and older have no other retirement income outside of their benefits, a 2023 survey from the Nationwide Retirement Institute found. So it’s wise to maximize your monthly checks.
Retirement benefits are the most common form of Social Security, but they’re not the only type of benefit you may qualify for. If you’re married or divorced, you could also be entitled to some form of spousal Social Security.
There are a few requirements you’ll need to meet to qualify, and the amount you receive will depend on several factors. Here’s your step-by-step guide to determining whether you’re eligible and how much you can expect to collect.
Image source: Getty Images.
To qualify for spousal benefits, you must currently be married to someone who is entitled to either retirement or disability benefits. You also generally need to be at least 62 years old to begin claiming, unless you’re caring for a child who is under age 16 or disabled. In that case, you may qualify for spousal benefits at any age.
Divorce benefits have a few more requirements. For one, you can’t currently be married, and your previous marriage must have lasted for at least 10 years. If you’ve been divorced for less than two years, you’ll need to wait until your ex-spouse begins taking Social Security before you can file for divorce benefits. As with spousal benefits, you also must be at least 62 years old or caring for a qualifying child.
With both types of benefits, your payments will not affect your spouse’s or ex-spouse’s benefit in any way. If you’re divorced and your ex-spouse has remarried, taking divorce benefits also won’t affect their current spouse’s ability to claim spousal benefits.
Even if you’ve never worked, you can still collect hundreds of dollars per month from Social Security. With both spousal and divorce benefits, the maximum you can collect is 50% of the amount your spouse or ex-spouse will receive at their full retirement age (FRA).
If you’ve worked enough to qualify for retirement benefits, that could affect your spousal or divorce benefit. The Social Security Administration (SSA) will pay out your retirement benefit first. Then, if your spousal or divorce benefit is higher, you’ll receive an additional amount so that your total payment equals the higher of the two amounts.
For example, say you qualify for $900 per month in retirement benefits, and your spouse is entitled to $2,000 per month at their FRA. Your maximum spousal benefit in this case, then, is $1,000 per month. The SSA will pay out your $900 first, then you’ll receive an extra $100 per month in spousal benefits so that your total payment is $1,000 per month.
If your retirement benefit is higher than your maximum spousal or divorce benefit, you won’t qualify for this type of Social Security at all. Say, for instance, you qualified for $1,100 per month in retirement benefits in the previous example. Because that’s higher than your max spousal benefit, you’d only receive your $1,100 per month retirement benefit.
To receive the full spousal or divorce benefit you qualify for, you’ll need to wait until your own FRA to begin claiming. Your FRA will depend on your birth year, but it’s age 67 for anyone born in 1960 or later.
You can file before your FRA (as early as age 62), but your benefit will be permanently reduced depending on just how early you file. Also, unlike retirement benefits, delaying claiming past your FRA won’t increase your spousal or divorce benefit. There’s no financial incentive, then, for waiting beyond your FRA to file.
This doesn’t necessarily mean you shouldn’t claim early, as there are valid reasons to consider filing before your FRA. Just be sure that you’re aware that it will result in smaller payments each month.
Spousal or divorce benefits can go a long way in retirement, sometimes increasing your payments by hundreds of dollars per month. By taking full advantage of every type of benefit you qualify for, you can set yourself up for a more comfortable retirement.
Last year, companies around the world paid a record $1.7 trillion in dividends to their shareholders, a 5% increase from the prior year. Leading the way were tech titans Microsoft (MSFT -2.07%) and Apple (AAPL -0.22%) at $20.7 billion and $14.9 billion, respectively.
Dividend payments are likely to set a new record this year. One catalyst is that fellow tech titan Meta Platforms (META -1.57%) initiated a dividend, which should total more than $5 billion this year. It’s now the fourth member, along with Nvidia, of the vaunted “Magnificent Seven” to join the bandwagon of dividend-paying stocks.
Among the holdouts is Alphabet (GOOG -1.50%) (GOOGL -1.34%). It’s high time for the search giant to start paying dividends. Here’s why.
Microsoft, Apple, and Meta Platforms can afford to pay massive dividends because they generate huge cash flows. Over the past six months, Microsoft has produced $49.4 billion in operating cash flow. It returned $19.5 billion to shareholders through dividend payments ($10.6 billion) and share repurchases ($8.8 billion). Apple is also a cash flow machine. It generated $39.9 billion in cash from operating activities in its fiscal first quarter. It paid $3.8 billion in dividends and repurchased $20.1 billion in stock. Meanwhile, Meta Platforms produced $40.8 billion in net cash from operating activities last year and used $20 billion to repurchase shares.
Alphabet is just as good at generating cash as its dividend-paying Magnificent Seven peers. Last year, the search giant produced a prodigious $101.7 billion in net cash from operating activities. While the company didn’t use any of that money to pay dividends, it did return $61.5 billion to shareholders through repurchases.
However, the company could easily follow Meta’s approach when it initiated its dividend earlier this year. CFO Susan Li commented on Meta’s new dividend policy on the fourth-quarter earnings conference call:
Aside from organic investments, returning capital to shareholders remains important to us. We believe our strong financial position and performance will enable us to invest in the business while also continuing to return capital to investors over time. We’ve historically done so through share repurchases, and while we expect to maintain an active share repurchase program, we are modestly evolving our approach going forward by returning a portion of capital through a regular dividend.
Another reason tech titans Microsoft, Apple, and now Meta Platforms are paying dividends is that they have a lot of cash on their balance sheets.
|
Magnificent Seven Dividend Stock |
Cash, Cash Equivalents, and Short-Term Investments |
Total Debt Outstanding |
Net Cash Position |
|---|---|---|---|
|
Apple |
$172.6 billion |
$108 billion |
$64.6 billion |
|
Microsoft |
$81 billion |
$74.2 billion |
$7 billion |
|
Meta Platforms |
$65.4 billion |
$18.4 billion |
$47 billion |
Data sources: Company websites. Data as of the end of 2023.
Apple’s net cash position alone could fund its current dividend outlay for more than four years, while Meta’s would last nearly a decade.
Alphabet has an equally enormous cash position. It ended last year with $110.9 billion of cash, equivalents, and marketable securities against only $13.3 billion in debt.
Like its peers, Alphabet produces more cash than it needs to grow its business. The money it doesn’t return to shareholders through buybacks is piling up on its balance sheet. While the company might be strategically holding cash to make a sizable acquisition, that seems unlikely, since mergers and acquisitions aren’t a big part of its growth strategy. The company’s biggest deal was its $12.5 billion acquisition of Motorola Mobility in 2012. Other notable deals were relatively smaller including Nest at $3.2 billion in 2014, Fitbit at $2.1 billion in 2021, and YouTube at $1.7 billion in 2005. Between that and the increased regulatory scrutiny of acquisitions in the tech sector, Alphabet probably won’t use its cash position to make a big deal.
That leaves returning it to shareholders as the most likely outcome. On one hand, it’s hard to argue with its share repurchase program. Alphabet has reduced its outstanding shares by 10% over the past five years, second only to Apple in this group. Alphabet could buy back even more shares, which wouldn’t be a bad idea, since it has the lowest forward P/E ratio in this group at 21. However, a dividend could broaden its appeal to more investors, which could boost its valuation. Meanwhile, paying a dividend would put cash in the pockets of long-term holders, not those selling shares to Alphabet as part of the repurchases.
Microsoft and Apple pay their investors billions of dollars in dividends each year. Meta is joining them this year. It’s time for Alphabet to get on board, too. Like its peers, it produces massive cash flows, which are piling up on its balance sheet. It really doesn’t have much use for that money, other than returning it to investors. While its buyback is doing a good job, the company can easily squeeze in a dividend to provide its investors with a little income.
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Matt DiLallo has positions in Alphabet, Apple, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Social Security benefits are a lifeline for millions of older adults. Roughly 90% of current retirees say they rely on their checks to some degree, according to a 2023 poll from Gallup, and of that group, close to 60% say their benefits are a major source of income.
If you’re going to be depending on Social Security to any extent, it’s often helpful to know how much you can expect to receive. This can give you a more realistic idea about how far your benefits will go, making it easier to see whether you’re saving enough to cover the rest of your expenses.
The good news is that it only takes a few minutes to see an estimate of your future benefit amount. And if it’s less than what you expected, there are a few simple ways to boost your monthly checks.
Image source: Getty Images.
Perhaps the easiest way to see your future benefit amount is to check your statements online. If you haven’t already, you’ll first need to create a mySocialSecurity account. From there, you can see an estimate of your future benefit based on your real earnings throughout your career.
Keep in mind, however, that you have to qualify for benefits before you’ll see an estimate. If you haven’t worked and paid Social Security taxes for at least 10 years, you likely won’t be eligible for retirement benefits yet.
Also, this estimate is the amount you’ll receive at your full retirement age (FRA). Your FRA is the age at which you’ll receive 100% of your benefit based on your earnings history, and it’s age 67 for everyone born in 1960 or later.
Image source: The Motley Fool.
You can file before or after your FRA, but it will affect your benefit amount. By claiming as early as possible at age 62, your payments will be permanently reduced by up to 30%. Delay benefits past your FRA (up to age 70), and you’ll receive your full benefit plus a bonus of at least 24% per month.
Finally, if you still have many years left in your career, that could also affect your benefit amount — especially if your income changes dramatically between now and retirement.
Delaying filing for Social Security is one of the most straightforward ways to increase your benefit amount. Again, waiting until age 70 to claim will boost your payments by at least 24%, which can amount to hundreds of dollars per month. There are a few other options, though, for increasing your benefits:
Small steps can go a long way toward earning larger Social Security checks. If you can’t work more than 35 years, delay benefits until age 70, or substantially increase your income, that’s OK. Maybe you can delay claiming by just one or two years, for example, or increase your income by a couple thousand dollars per year. Either one of those moves could still result in a bigger monthly benefit.
Social Security can make an enormous difference in retirement, so it’s wise to make the most of it. By checking your estimated benefit and maximizing your payments the best you can, you’ll be setting yourself up for a more financially secure retirement.
Starbucks has said it will discontinue its Odyssey non-fungible token beta program and members “have until March 25, 2024, to complete any remaining journeys.” Starbucks stated on its FAQ page that it will keep its NFT community in mind and is working to find a place for its members to connect in the future. Starbucks […]
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Shiba Inu, the meme coin sensation, is making headlines once again. With its sights set on a major achievement – a staggering $100 billion market cap – Shiba Inu has captured the attention of the crypto community.
This audacious ambition has been fueled by data from IntoTheBlock, shedding light on the coin’s potential. Additionally, renowned investor Jake Gagain has made a bold prediction, further igniting excitement within the crypto community.
$SHIB Will Be The First 100 Billion MC Memecoin. pic.twitter.com/YogeSb2E7q
— JAKE (@JakeGagain) March 15, 2024
According to analysis from IntoTheBlock, SHIB has witnessed a surge in the number of addresses holding the token. This surge indicates a growing interest and adoption of Shiba Inu among retail investors, who are eager to partake in the meme coin revolution.
Moreover, there has been a notable increase in the number of large transactions involving Shiba Inu tokens, suggesting institutional investors and whales are actively engaging with the coin.
SHIB market cap currently at $14.5 billion. Source: CoinMarketCap
IntoTheBlock’s data reveals a concentration of wealth among the top holders of Shiba Inu. Approximately 50% of the total supply is held by the top 100 addresses, indicating the potential influence these large holders may have on the market dynamics and price movements of Shiba Inu. This concentration of wealth can play a significant role in shaping the future trajectory of the coin.
Total crypto market cap is currently at $2.4 trillion. Chart: TradingView
Trading activity surrounding the memecoin has also been a focal point of the analysis. The data highlights the volatility of Shiba Inu’s trading volume, with periods of intense fluctuations followed by relative stability. This volatility can be attributed to various factors, including market sentiment, news events, and overall market conditions.
In the midst of this excitement, renowned investor Jake Gagain has made a bold prediction: He firmly believes that Shiba Inu has the potential to surpass Dogecoin and reach a remarkable $100 billion market cap. This prediction has sparked both enthusiasm and skepticism, as the rivalry between Shiba Inu and Dogecoin intensifies.
SHIB 30-day price action. Source: CoinMarketCap
Taking all these factors into account, the journey towards the billion-dollar market cap for Shiba Inu is not without its challenges. While the recent surge in market cap and the accumulation by large holders are positive indicators, the volatility and concentration of wealth present potential risks that need to be navigated.
Nevertheless, the resilience and determination exhibited by the memecoin, coupled with the growing interest from retail and institutional investors, provide a strong foundation for its pursuit of the $100 billion milestone.
Shiba Inu’s quest for a $100 billion market cap represents a paradigm shift in the world of meme coins. Backed by data from IntoTheBlock, which highlights growing adoption, concentration of wealth, and trading activity, as well as the bold prediction from Jake Gagain, SHIB has positioned itself as a formidable contender in the cryptoverse.
Featured image from Pixabay, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
When examined over long periods, no asset class has more consistently delivered for investors than the stock market. When compared to gold, oil, housing, and even Treasury bonds, the average annual return of stocks over the very long term handily outpaces these other asset classes.
However, things become less certain when the lens is narrowed. Over the previous four years, the ageless Dow Jones Industrial Average (DJINDICES: ^DJI), benchmark S&P 500 (SNPINDEX: ^GSPC), and growth-powered Nasdaq Composite (NASDAQINDEX: ^IXIC) have traded off bear and bull markets in successive years.
Truth be told, there is no foolproof method for accurately predicting short-term directional moves or crashes in Wall Street’s three major stock indexes — but that doesn’t stop investors from trying to gain an advantage.
Though there’s no concrete way to accurately forecast where the Dow Jones, S&P 500, and Nasdaq Composite will head next, there are a relatively small number of metrics and predictive indicators that have strongly correlated with directional moves in the stock market’s major indexes. One of these predictive tools suggests trouble may be brewing in paradise, which has the potential to send Wall Street over the proverbial edge.
The forecasting tool in question that’s piquing the interest of Wall Street skeptics is the Federal Reserve Bank of New York’s recession probability indicator.
Every month for more than six decades, the NY Fed’s recession probability tool has analyzed the spread (difference in yield) between the 10-year Treasury bond and three-month Treasury bill (T-bill) to determine how likely it is that a U.S. recession will crop up over the coming 12 months.
The vast majority of the time, the Treasury yield curve slopes up and to the right. In other words, Treasury bonds that aren’t set to mature for 30 years will offer higher yields than T-bills that are set to mature in, say, a month or a year. Yields should increase the longer your money is invested in an interest-bearing asset.
But as the 10-year/three-month yield spread has shown over the past 65 years, the yield curve doesn’t always behave as planned. Occasionally, the yield curve inverts, which represents an instance where T-bills sport higher yields than Treasury bonds maturing a long time from now. When the yield curve inverts, it’s typically a sign that investors are worried about the near-term outlook for the U.S. economy.
Now here’s the quirk: A yield-curve inversion doesn’t guarantee the U.S. economy will dip into a recession. However (and here’s the key “however’), every recession since the end of World War II in September 1945 has been preceded by a yield-curve inversion. It represents something of a warning to investors that the U.S. economy and stock market could be teetering on disaster.
As you can see from the data released in recent days by the NY Fed, there’s a 58.31% probability of a recession taking shape by or before February 2025. Although this isn’t the highest recent reading from this predictive tool, it remains one of the highest recession-probability forecasts over the past 42 years.
There are two things worth pointing out from the 65 years of reported yield-curve data from the NY Fed. To start with, this predictive tool can be wrong. In October 1966, the likelihood of a U.S. recession taking shape surpassed 40% without a downturn in the U.S. economy materializing. It’s not an infallible forecasting tool.
On the other hand, it’s only been wrong one time spanning 65 years and has a perfect track record over the last 58 years. Since October 1966, a recession probability of 32% or above has, without fail, eventually forecast a U.S. recession.
Even though the stock market doesn’t mirror the performance of the U.S. economy, corporate earnings do ebb and flow based on the health of the economy. Historically, two-thirds of the S&P 500’s drawdowns have occurred after, not prior to, a recession being declared by the National Bureau of Economic Research. Put another way, a recession would, indeed, be expected to decisively knock the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite off their respective perches. While a rapid crash may not occur, meaningful downside would be the expectation.
Truth be told, the NY Fed’s trusted recession probability tool is just one of a couple of metrics that appears to spell trouble for the U.S. economy and stock market. In particular, M2 money supply is meaningfully contracting for only the fifth time since 1870, and the Conference Board Leading Economic Index (LEI) is working on one of its longest consecutive declines dating back more than 60 years. All signs appear to point to a sizable downturn for the Dow Jones, S&P 500, and Nasdaq Composite.
While this may not be the rosiest of near-term forecasts, patience has a way of righting the ship when it comes to investing on Wall Street.
For example, in the 78 years since World War II ended, the U.S. economy has navigated its way through a dozen recessions. Only three of these 12 downturns reached 12 months in length, and none surpassed 18 months. Based on what history tells us, recessions are short-lived events.
Conversely, periods of economic growth tend to stick around for multiple years. While there are a few instances of short-lived expansions, there are two periods of growth since 1945 that lasted at least a decade. Statistically speaking, it’s a considerably smarter move to bet on the American economy (and its underlying businesses) to grow over time.
It’s a similar story on Wall Street. According to analysts at Bespoke Investment Group, there’s a marked disparity between bear and bull markets in the S&P 500.
Last June, Bespoke published a dataset that revealed the length of every bear and bull market in the S&P 500 dating back to the start of the Great Depression in September 1929. The 27 S&P 500 bear markets have lasted an average of just 286 calendar days (about 9.5 months), with the longest enduring 630 calendar days in 1973 to 1974.
By comparison, the average S&P 500 bull market has lasted for 1,011 calendar days (roughly two years and nine months), with 13 of the 27 bull markets since September 1929 sticking around for a longer number of calendar days than the lengthiest S&P 500 bear market.
No matter what the U.S. economy or Wall Street has thrown investors’ way, patience has always paid off. Eventually, stock market corrections and bear markets are cleared away by bull market rallies. Even if 2024 turns out to be a rough year for equities, it could represent a blessing in disguise for opportunistic long-term investors.
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Is Wall Street on the Verge of a Crash? The Fed’s Most-Trusted Recession Indicator Weighs In. was originally published by The Motley Fool
As a member of the U.S. workforce, you’re obligated to pay into Social Security as you earn wages. And as such, you may be eager to collect as much money in benefits during retirement as you can.
It may also interest you to know that the maximum monthly benefit Social Security will pay out this year is $4,873. That’s over $58,000 a year, which is a nice income by itself. And if it’s one you’re interested in snagging, here the three steps you’ll need to take.
You may not have every dollar you earn count toward your future Social Security benefit. But you should know that the program accounts for your 35 most profitable years in the labor force when determining what monthly benefit to pay you. So if you want the maximum monthly benefit Social Security will give out, you’ll need to have 35 years of work under your belt at a minimum.
It’s not enough to just work for 35 years in your lifetime. If you want Social Security’s maximum benefit, you’ll need to earn a really high wage for 35 years — specifically, a high enough wage to meet or exceed each year’s annual cap for Social Security tax purposes.
Remember, workers don’t pay Social Security taxes on all of their income. This year, only wages of up to $168,600 are taxed. Next year, that cap is likely to increase. But either way, you need your earnings to meet or exceed the wage cap for 35 years to have a shot at Social Security’s maximum benefit.
At full retirement age (FRA), you’re entitled to the complete monthly benefit Social Security should be paying you based on your individual earnings history. But if you want the program’s maximum monthly benefit, you’ll need to be prepared to delay your filing until age 70.
Now in some cases, that might mean having to work until age 70. And if you hate your job or it’s bad for your health, then frankly, chasing that maximum monthly benefit may not be worth doing. But if you enjoy your job and have the option to keep at it, claiming Social Security at 70 instead of at FRA could result in a much higher monthly income stream for life.
Getting $4,873 a month from Social Security is a really nice thing — there’s no question about it. But remember, most recipients don’t get anywhere close to that much money from Social Security on a monthly basis. And if getting that maximum benefit just isn’t in the cards for you, whether because your career earnings aren’t high enough or you don’t have enough working years under your belt, don’t sweat it. There are other things you can do to set yourself up with a nice amount of retirement income.
First, do your best to fund an IRA or 401(k) plan consistently while you’re still earning a paycheck. And if you have access to a 401(k), aim to snag your full employer match each year.
Next, consider investing in assets that can continue to pay you as a retiree. Both dividend stocks and municipal bonds fit nicely into this category.
Finally, consider some type of part-time work in retirement to generate income and stay busy. In today’s gig economy, you don’t even have to settle for a fixed job schedule. You can make your own hours and work at your own pace at something you love.
If you’re a high enough earner with a lengthy career, and claiming Social Security at age 70 is feasible and desirable, then you might end up with the program’s maximum monthly benefit. If not, know that all certainly isn’t lost.
The $22,924 Social Security bonus most retirees completely overlook
If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. Simply click here to discover how to learn more about these strategies.
View the “Social Security secrets”
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3 Steps to Claiming the $4,873 Max Monthly Social Security Benefit was originally published by The Motley Fool
