In recent times, the cryptocurrency landscape has experienced a widespread decline, yet the digital asset bitcoinsv, known for its associations with Craig Wright, has seen the most significant weekly downturn within the crypto sphere, dropping 18.9% versus the U.S. dollar in seven days. This decline in bitcoinsv’s value closely follows the verdict by U.K. Judge […]
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XRP continues to show strength despite largely underperforming during the ongoing bull market. Interestingly, the crypto witnessed a surge in activity last week, with trading volume surging in tandem. Particularly, the trading volume saw an increase of over 80% recently.
However, the boost in activity and trading volume has not necessarily translated into continuous price growth, as XRP is currently on a 13% percent correction from the $0.74 price level on Monday.
XRP witnessed a surge earlier in the week which saw it breaking out of a 6-year-long symmetrical triangle, prompting analysts to anticipate a continued price surge.
During this period, the crypto witnessed a surge in trading volume from whales in particular, with large bouts of XRP leaving crypto exchanges.
This bullish sentiment allowed XRP to cross over $0.74 for the first time in eight months, albeit for a short moment. This surge in price was short-lived, as XRP fell as low as $0.6 in the days after.
However, a recent 80% surge in on-chain activity and trading volume has led to the price of XRP increasing by 4.45% in the past 24 hours and 2.2% in a seven-day timeframe.
Volume spikes of this magnitude often occur before a price rally, therefore, this massive spike in volume has the XRP community speculating that a strong price rally could be on the horizon.
Total crypto market cap currently at $2.5 trillion. Chart: TradingView
At the time of writing, XRP is trading at $0.6398. The crypto’s journey to a new all-time high is definitely not going to be an easy one, as it is now down by 83% from its current all-time high of $3.84.
However, current market dynamics and various predictions from many crypto analysts indicate that the crypto might go on a surge of great magnitude in the near future.
One of these is a prediction from analyst Jaydee, who noted that XRP’s recent breakout from the six-year trendline mentioned earlier could lead to a surge to $3 from the current price level.
The major resistance level to watch is $0.74. XRP tested this level a few days ago but failed to close above it. If bullish momentum continues and volume stays strong, XRP could break through $0.74 decisively in the new week. If it does, the next resistance levels are at $0.82 and $1.5.
One of the few factors that could contribute to a strong price increase is regulatory clarity regarding XRP’s status, which could boost confidence from institutional investors.
Notably, XRP’s non-security status seems to be gaining ground. The European Corporate Governance Institute (ECGI) recently published a research paper acknowledging this non-security status.
Featured image from Pexels, 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.
Norway has had massive success with EV adoption — 82% of new cars sold in the country in 2023 were electric, according to the Norwegian Road Federation. This high adoption rate can be attributed to the generous subsidies the Scandinavian country has offered to electric vehicle owners as well as its investment in charging infrastructure.
Tesla’s sales in the country may represent only a sliver of the 1.8 million vehicles the company delivered globally last year, but its importance to the EV maker goes beyond revenue. Tesla’s early foothold there has made Norway a pivotal proving ground for the company and a national model for electric vehicle transition. As a result, Tesla CEO Elon Musk has taken a number of trips to the small Nordic country and has often praised its support for the technology change.
Norwegians were the first European customers to receive deliveries of the Tesla Model S in 2013. In April of 2014, Tesla broke Norway’s record for most monthly sales of a single model, electric or gas, with its Model S. Today, the top-selling model is Tesla’s Model Y. Tesla accounted for about 20% of all vehicles sold in the country last year, according to Norwegian Road Federation.
But with competition from other EV automakers including Toyota, Skoda, Volkswagen and BYD heating up, it remains to be seen if Norwegians will continue to favor Tesla in the future.
CNBC traveled to Norway to meet with local people, government officials and experts to find out how Tesla has become so successful in the Scandinavian country. Watch the video for the full story.
When it comes to artificial intelligence (AI), applications in machine learning, large language models, and compute networking garner most of the attention. But what investors may not realize is that use cases packaged around AI are evolving in real time.
One area that is getting particular interest is robotics. Indeed, companies such as Amazon and Alibaba have implemented robotics throughout their warehouses for years, creating efficiencies as it relates to packaging and logistics.
However, a rising number of the world’s largest technology companies are increasingly focusing on the next frontier of robotics: humanoid bots. In late February, Nvidia‘s (NVDA -0.12%) CEO, Jensen Huang, said “humanoid robotics should be right around the corner” during a panel discussion about AI.
Let’s dig into the rise of humanoid robotics and analyze the moves Nvidia is making in the space.
Robotics is an interesting part of the overall AI narrative because it is uniquely positioned at the intersection of software and hardware. And believe it or not, there are lots of companies working to develop humanoid bots.
Two of the more recognized brands in robotics include Boston Dynamics and Tesla. Over the last year, Tesla has teased investors with previews of its humanoid bot Optimus — which is planned to be used across the company’s factories and assembly lines in the future.
One lesser-known robotics start-up called 1X hails from Norway. The company has raised $125 million in venture capital (VC) funding over the last year from high-profile investors including OpenAI, Samsung, and Tiger Global.
Image source: Getty Images.
About a week after Huang’s comments regarding humanoid robots, Nvidia was cited as an investor in a $675 million funding round for start-up Figure AI. Nvidia joined Microsoft, OpenAI, Intel, and Amazon co-founder Jeff Bezos as investors.
Figure AI is developing humanoid robots that it plans to commercialize in industries such as manufacturing, warehousing, and retail. Figure AI’s robots are being trained on generative AI models to learn how to perform basic tasks. The theme? The company is seeking to disrupt the workforce — a market estimated to be worth $42 trillion annually.
Nvidia has incredibly lucrative opportunities in robotics. Currently, the company is primarily a hardware player — developing high-performance semiconductors called graphics processing units (GPUs).
However, Nvidia is quietly expanding outside compute networking. Specifically, the company’s enterprise software and services business is already operating at an annual revenue run rate of $1 billion. While this is impressive, it pales in comparison to Nvidia’s data center business — which generated $47 billion in sales last year.
Moreover, Nvidia is aggressively pursuing the enterprise software market through a combination of investments and strategic partnerships. The company is an investor in start-up Databricks, which largely competes with Palantir Technologies. Additionally, Nvidia also partners with Snowflake, helping bring AI capabilities to the company’s data cloud platform.
Given Nvidia’s distinctive position as both a hardware and software developer, the company has a massive opportunity to play an integral role in the development of humanoid robotics. I see the investment in Figure AI as a first step that could lead to further strategic partnerships and revenue opportunities across both sides of its business.
The important idea here is that Nvidia is subtly building an end-to-end AI solution — spanning across both software and hardware. As such, I think the company is setting itself up for long-term sustained growth in a variety of areas in the overall AI realm.
My guess is that Huang will continue to drop breadcrumbs, alluding to AI-powered applications that he believes Nvidia can play a role in. Despite the run-up in the stock, I think now is a terrific time to scoop up some shares and plan to hold long term.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Adam Spatacco has positions in Amazon, Microsoft, Nvidia, Palantir Technologies, and Tesla. The Motley Fool has positions in and recommends Amazon, Microsoft, Nvidia, Palantir Technologies, Snowflake, and Tesla. The Motley Fool recommends Alibaba Group and Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long January 2026 $395 calls on Microsoft, short January 2026 $405 calls on Microsoft, and short May 2024 $47 calls on Intel. The Motley Fool has a disclosure policy.
The Social Security Administration pays retirement, disability, and family benefits to tens of millions of Americans every month. It’s an impressive feat, but as with any human endeavor, mistakes happen.
Sometimes, those mistakes can lead to Social Security recipients getting smaller checks than they are entitled to, which could cost a person a significant amount of money over their lifetime if they don’t catch the problem and get it corrected. Here’s how to make sure no errors are sapping your benefits — or, if there are, how to get those issues corrected.
Image source: Getty Images.
Your Social Security benefit is based on how much you’ve paid in Social Security payroll taxes throughout your working life, and the government keeps a record of that in your earnings record. The data comes from the IRS, so it’s usually correct. But errors can arise if you forget to notify your employer of a name change, for example, or if you or your employer transpose the digits in your Social Security number on your employment paperwork.
In a worst-case scenario, your record might show no earnings at all for a year during which you worked. This could significantly bring down your Social Security benefit. But those errors are fixable.
First, check your earnings record at the my Social Security website. (If you haven’t done so already, you’ll need to create an account. But that’s well worth doing.) Look for any numbers that appear out of place.
A side note for high earners: It’s possible that your earnings record may correctly show a figure lower than your actual income for the year. That’s because the government doesn’t assess Social Security taxes on all income: There’s a cap. So, for example, in 2024, workers will only pay wage taxes on the first $168,600 they earn; in past years, the ceiling was lower. If you earned more than the maximum income subject to payroll taxes in a given year, your earnings record will show that year’s maximum amount instead of your real earnings.
If everything looks correct here, move on to the next step. But if you notice an error in the record, fill out a Request for Correction of Earnings Record form and submit it to the Social Security Administration. Enclose copies of any tax documents you have that prove your real income for the year or years in question. The Social Security Administration will investigate your claim and, if it finds it valid, it will update your earnings record accordingly.
Contacting the Social Security Administration should be your next step if you believe you’re being underpaid. You can do this by phone, email, or mail. Or you could schedule an appointment at your local Social Security office if you prefer to address the matter in person.
When you reach out, have your Social Security number handy and be prepared to explain the situation. Tell the Social Security Administration the amount you’re currently receiving and why you feel it’s too low. The representative will direct you on the next steps.
If, after investigation, the agency determines that you were underpaid, it will either compensate you via a separate payment or by increasing the amount of your monthly payments. Unfortunately, Social Security does not pay beneficiaries any interest on the money they were underpaid.
Social Security payment issues can take time to resolve, so it’s best not to delay if you suspect you’re being underpaid. Get the ball rolling as soon as you can and check in if necessary to ensure your case is being handled.
Tech stocks are not known for their top-notch dividend policies. Many companies in this sector are busy inventing tomorrow’s technologies, often prioritizing reinvestment over distributing cash profits through dividends.
Let me paint a picture for you. There are 2,457 stocks trading on American stock exchanges with a market cap of at least $1 billion, according to Finviz. Of them, 1,504, or 61%, offer some sort of dividend payout.
Narrow your view to the tech sector, and you’ll find 111 dividend payers out of 373 billion-dollar companies. Only 30% of these companies offer any dividends at all.
The gap grows even wider if you’re looking for generous dividend policies, too. Thirty-five percent of all billion-dollar companies provide an annual dividend yield of at least 2%. In the tech sector, the group of 2% yields shrinks to just 29 names, or 8% of the sector.
That being said, it’s not impossible to find great dividend payers in the metaphorical Silicon Valley. Some of those 29 names are absolutely fantastic income investments right now.
Let me show you three of my favorite ideas in that category. Savvy income investors can set up an effective dividend portfolio around semiconductor veteran Texas Instruments (TXN 0.81%), artificial intelligence (AI) expert IBM (IBM -1.22%), and materials science innovator Corning (GLW -0.06%).
Legendary chipmaker Texas Instruments has a long history of shareholder-friendly dividend payouts. The company sent its first dividend checks in the spring of 1962. The annual payouts have increased in every year since 2004.
Semiconductor companies tend to be very cyclical. Each sector member’s key products face sharp swings in demand as they often focus on hyper-specific end markets.
But TI gets around. It generated 40% of its 2023 revenue from industrial customers and 34% from automotive clients. Personal electronics and communications equipment also made significant contributions to the company’s top line. Moreover, TI makes both analog and digital chips, widening its exposure to different contract opportunities even within any particular target industry.
And don’t forget that the company runs its own manufacturing facilities, too. When fabless chip designers compete for production capacity at one of the industry’s third-party manufacturing giants, TI can just get to work with its own chipmaking machinery. So TI’s diverse clientele buffers it against sector-specific downturns, unlike many of its peers.
And this paragon of business stability isn’t even expensive. The stock has traded sideways over the last year, missing out on the tech sector’s artificial intelligence (AI) boom. As a result, the effective dividend yield has soared to 3%.
Sure, TI’s stock is down for a reason — it ran into a rare tag-team attack as both automakers and industrial computing giants are holding back their infrastructure investments at the same time. But these paired market weaknesses won’t last forever. You should consider locking in those juicy yields while they last, because TI will surely come back swinging when the global economy finally gets over the inflation-based flu.
The company behind the namesake glass-ceramic cookware has moved on to more advanced materials. You’ll find Corning’s hardened Gorilla Glass covering the screens on most smartphones nowadays, not to mention both the windshields and internal glass panels in modern cars. And fiber-optic cables accounted for $4 billion of top-line sales last year, or roughly one-third of Corning’s total revenue.
Like Texas Instruments, Corning is resistant to single-industry downturns. Both companies were caught by multiple sector challenges, and Corning’s stock is also back almost exactly where it was a year ago.
Its effective dividend yield is even richer at 3.4%. Smartphone sales can’t stay slow forever, and the auto industry can’t wait to take advantage of pent-up demand for modern vehicles whenever the interest rates on car loans start sliding down again. And the coronavirus pandemic halted the global expansion of 5G networking in its tracks, setting another important Corning market up for a strong upswing someday soon. Yes, high-speed wireless networks usually rely on even faster fiber-optic connections to the worldwide internet.
From cookware to cutting-edge networking and digital screens, Corning continues to innovate.
So Corning is also set up to recover over time, likely softening those robust dividend yields in the process. That’s just how the math works — higher buy-in prices result in weaker yields from the same dividend checks. That’s why I recommend locking in the generous yields on Corning and Texas Instruments while they last.
Finally, you already missed the best possible time to lock in IBM’s strongest yields, but Big Blue’s stock should still deliver both strong price gains and robust dividends for years to come.
IBM’s stock has gained nearly 60% over the last year. The strategy shift that started under CEO Ginni Rometty a decade ago is finally paying dividends, literally and metaphorically.
This company was a bit late to the AI party due to its unshakable focus on enterprise-class business solutions. IBM’s Watson AI platform has been around for years, harking back to the Deep Blue chess computer that defeated world champion Garry Kasparov in a game-changing 1997 match.
Prospective customers in this category are rarely free to simply jump on the next red-hot bandwagon. New solutions must go through a gauntlet of performance, security, and cost-efficiency tests. Any large-scale deal may require signatures from multiple levels of management. But when that time-consuming process is completed, IBM ends up with a multiyear contract and a burly helping of customer loyalty. Replacing a system that cleared every hurdle will be even tougher.
So you’re catching IBM in the early stages of an active upswing. The AI-driven success that inspired a 10% stock price jump the day after its latest earnings report should accelerate in 2024 and beyond. Thanks to the harsh reality of dividend calculations, a rising stock price will dilute IBM’s muscular 3.4% yield over time.
Time in the market is always more important than timing the market, though. In other words, it’s not too late to grab a few IBM shares in preparation for an AI-driven surge in the next few years. It may take decades before you see a 3.4% yield on new IBM investments again.
According to Brendan Cooper, a core contributor at Andromeda, the widespread distribution and adoption of the Web3 operating system (OS) will likely result in the emergence of new business models, much like what happened with the Web2 OS. The Web3 OS is also likely to simplify “how developers and users interact with the resources provided […]
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Space tourism company Virgin Galactic (SPCE 1.84%) reported full-year 2023 earnings at the end of February. This closed out a “record” year for spaceflight, in which the company flew its VSS Unity spaceplane seven times, and tripled its annual revenue. And what did this mean for the company’s multi-year history of losing money and burning cash?
Losses increased by $2 million, and cash burn grew by 24%, to $492.5 million. That’s according to S&P Global Market Intelligence, a provider of financial data on U.S. companies.
But beyond the headlines, S&P Global also provided audio from the post-earnings conference call that Virgin Galactic held with Wall Street analysts. It was there that investors learned three more things about Virgin Galactic, its plans, and its future prospects.
In 2021, Virgin Galactic famously offered to fly tourists to the edge of space for as little as $200,000 a ticket. According to the company, 600 would-be astronauts took Virgin Galactic up on its offer, encouraging the company to raise prices for its next batch of tickets to $450,000 apiece in 2022.
This new offer wasn’t as popular. So far, only about 125 customers have signed up to buy Virgin’s pricier tickets. But with Virgin still losing money (and indeed, losing money a bit faster than it used to), the company has decided to raise prices again — this time, to $600,000 a ticket.
Virgin still thinks this price offers “outstanding value for the product and lifetime experience.” Citing media reports, CEO Michael Colglazier says archrival Blue Origin is probably selling tickets on its own New Shepard space tourism rocket for more than $1 million each. Virgin itself has successfully sold Unity tickets for $800,000 and up to various scientific researchers. Now, Colglazier confides that in rare instances when existing reservation holders give up their place in line, Virgin might sell new tickets for those placeholders at the new and improved $600,000 price.
This could potentially produce positive revenue surprises in future quarters.
Virgin Galactic’s longer-range plans continue to hinge on the Delta spaceplane. Resembling Unity in most respects, Delta will differ from Unity (which was supposed to carry six passengers, but actually carries only four) in that Delta will strip out excess weight to enable a full complement of six paying passengers per flight.
Combined with $600,000 ticket prices, this could generate $3.6 million in revenue per flight. Multiply that by an anticipated eight flights per month, and that would mean $28.8 million in revenue per month, $86.4 million per quarter, and $345.6 million per year, per spaceplane.
Virgin says Delta will begin flight tests in 2025, and enter service in 2026, flying out of Spaceport America in New Mexico. The company says it will need four or five spaceplanes and two motherships to support this pace of operations. Management did not say how much it expects to spend on the motherships, but each Delta will cost $50 million to $60 million. Thus, the total cost of outfitting just one Spaceport will exceed $300 million — perhaps by a factor of two or three times.
How many flights will it take to recoup that capital investment? Without more data, it’s impossible to be certain, but with five spaceplanes flying fully loaded flights, and 400 or more total flights per year, it seems likely the company could make back its capital investment within one year of completing its fleet.
That’s assuming, of course, that Virgin can find 2,400 customers willing to pay $600,000 a pop.
Is this a realistic assumption? Virgin Galactic thinks so.
CFO Douglas Ahrens estimates there’s a total of about 300,000 people potentially willing and able to ante up that kind of cash worldwide, and the market is growing 8% annually. If he’s right, then 2,400 customers a year is only 1% of a growing market — and if the market grows 8% per year, Virgin could literally never run out of customers.
For this reason, Colglazier believes now is the time for Virgin Galactic to shift into “Phase 2” of its plans. Having proven its concept by flying 32 humans to space and back, Virgin Galactic will now move past its “R&D and prototype roots” and begin to scale up operations.
First, the company will build out Spaceport America and the fleet based there. Operations will accelerate with the arrival of Delta in 2026. As the tempo increases, and annual revenue passes $1 billion at Spaceport, the company will build a second spaceport in 2029 — aiming to create a whole chain of spaceports, each contributing annual revenue in the $1.1 billion to $1.4 billion range.
Admittedly, for a company that’s losing money, burning cash, and counting its revenue in just the single-digit millions today, the plan sounds a little farfetched — but at least Virgin Galactic has a plan.
Many investors have kicked value stocks to the curb in the new bull market. That’s not surprising considering the jaw-dropping gains that several large-cap growth stocks have generated.
However, value stocks typically beat growth stocks over the long term. And some value stocks will be bigger winners than others. I predict that these could be the best-performing value stocks through 2030.
Most investors would probably view Alibaba Group (NYSE: BABA) as a growth stock. After all, the company is a technology giant focusing on exciting areas including e-commerce, cloud services, and artificial intelligence (AI). But there’s a strong case that Alibaba is also a value stock.
Alibaba’s shares have plunged almost 60% below the highs set in late 2020. The beaten-down stock now trades at only 8.3 times forward earnings. That’s indisputably value territory, in my book.
What’s the main reason for Alibaba’s dismal performance and dirt cheap valuation? The sluggish Chinese economy. The once fast-growing company saw revenue rise by only 5% year over year in the fourth quarter of 2023 with adjusted earnings declining by 2%.
Don’t count Alibaba out, though. The company is investing in initiatives to boost growth. AI should serve as a major tailwind for its cloud platform.
I’m not the only one bullish about Alibaba. Of the 48 analysts surveyed by LSEG in March who cover the stock, all but one recommended it as a buy or a strong buy.
Enterprise Products Partners’ (NYSE: EPD) forward earnings multiple is below 10.6x. That’s a bargain compared to the valuations for the S&P 500 and the energy sector as a whole.
I think Enterprise Products Partners has a key advantage that could help make it a big winner over the next six years. The midstream energy provider’s distribution yield tops 7.1%. Enterprise won’t need huge unit price appreciation (limited partnerships like Enterprise have units instead of shares) to deliver exceptional total returns.
Solid price appreciation could be in store for Enterprise, though. The demand for the company’s pipelines and other midstream assets is likely to increase in the coming years, especially if an oil supply shortage arrives in late 2025 as Occidental CEO Vicki Hollub predicts.
Even if the oil and gas industry hits a rough patch, Enterprise Products Partners should be in good shape. The company has a long history of generating strong returns on invested capital regardless of the swings in commodity prices.
Pfizer (NYSE: PFE) is in the same boat as Enterprise Products Partners in one sense. The drugmaker doesn’t need to deliver big share price gains to generate market-beating total returns thanks to its dividend yield of more than 5.9%.
This big pharma stock isn’t as cheap as Alibaba and Enterprise based on forward earnings multiples. However, Pfizer is a steal compared to several of its peers. I also think the current negative sentiment for the stock is way overdone.
Sure, Pfizer faces some challenges. Its COVID-19 sales continue to plummet. Several of the company’s top-selling products will lose patent exclusivity in the next few years, including blood thinner Eliquis, breast cancer drug Ibrance, and rare-disease drug Vyndaqel.
That doesn’t tell the full story, though. Pfizer has multiple new drugs and new indications for existing drugs that it expects to generate enough annual revenue by 2030 to more than offset any losses from patent expirations. The company also projects an additional $25 billion in new annual revenue by 2030 from business development deals.
Should you invest $1,000 in Pfizer right now?
Before you buy stock in Pfizer, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Pfizer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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Keith Speights has positions in Enterprise Products Partners and Pfizer. The Motley Fool has positions in and recommends Pfizer. The Motley Fool recommends Alibaba Group, Enterprise Products Partners, and Occidental Petroleum. The Motley Fool has a disclosure policy.
Prediction: These Could Be the Best-Performing Value Stocks Through 2030 was originally published by The Motley Fool
More Americans had balances of $1 million or more in their 401(k) plans than ever before in 2023, according to Fidelity Investments. The company, one of the biggest providers of employer retirement plans, recently released data that revealed the number of its 401(k) accounts with at least $1 million totaled close to 422,000 at the end of last year.
Whether your retirement plan is with Fidelity or another company, joining the ranks of wealthy individuals could be a real possibility. Want to be a 401(k) millionaire? Here are seven tips you should know.
Image source: Getty Images.
Arguably the best investing advice you’ll ever get is to start socking money away as early as possible. Time is your greatest ally in building a sizable nest egg.
If you started investing $2,100 per year in a 401(k) plan at age 25 and kept it up, you’d have over $1 million at age 65 assuming a return of 10% (roughly the average long-term return of the S&P 500). If you waited until age 45 to begin investing, you’d have to save a whopping $16,000 per year to grow your account balance to $1 million.
Time in the market beats trying to time the market — hands down. Investing regularly is the best way to build up your 401(k) account. Set up an automatic deduction from your paycheck that flows directly into your 401(k). It’s easy and ensures you’re consistently investing.
How would you like a 100% return on your investment? You can get it with a 401(k) employer match. Many employers offer them. You should at least contribute the amount needed to maximize your employer match. Don’t turn down free money.
While employer matches provide a major tailwind for your 401(k), fees can be a significant drag. Check out the annual expenses of all the investment alternatives your 401(k) plan offers. If the fees for one option appear much higher than others, research it to see if the returns it has provided over the long term are worth the added cost.
It could be tempting to invest too conservatively, especially if you begin during a period when the stock market is highly volatile. Over the long run, however, stocks offer the highest returns of any investment alternative. Investing in index funds that own stocks can be a good way to avoid being overly conservative.
The current standard maximum annual individual contribution to 401(k) plans is $23,000. This maximum amount typically increases each year. However, if you’re 50 or older, you can invest even more money via catch-up contributions. For 2024, the catch-up contribution limit is $7,500. Taking advantage of this opportunity to save more for retirement is especially wise if you didn’t begin investing early in your career.
Imagine a scenario where your 401(k) account tops $1 million only a year or two away from retirement. Then the stock market crashes, wiping out half of your savings. Unfortunately, there’s a real possibility that this could happen.
While you shouldn’t invest too conservatively throughout most of your career, investing too aggressively during the years leading up to your retirement can also be problematic. Rebalancing your portfolio over time (i.e., shifting money from more aggressive investments such as stocks to more conservative investments like bonds) can be a good way to reduce your risk.
Investing your 401(k) account in a target date fund automates this process. The closer you get to the target date (your retirement year), the greater the allocation will be toward less aggressive investments.
