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Mr. Warsh is known as a consensus builder, skills he will need if he is to head the Federal Reserve when President Trump is demanding rock-bottom rates.
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Sell America Is the New Trade on Wall Street The New York TimesDollar Slide a Sign of Global Investor Hedging, Federated Says Bloomberg.com‘Sell America': is US market supremacy under threat? The EconomistThe 'depreciation trade' is making a comeback, are U.S. assets facing a 'quiet exit'? ????Is the world losing faith in the US economy? ThePost.co.nz
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Michela Allocca quadrupled her income after quitting her corporate role.
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Mortgage rates didn't move after President Donald Trump announced his pick of Kevin Warsh as the next Federal Reserve chair.
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The nomination of Kevin Warsh "avoids a lot of the worst-case scenarios, but it's still unclear what impact he will have on rates," one strategist said.
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It was a choppy start to the short trading week, with stocks spending time in both positive and negative territory Tuesday. Bears gained the upper hand in the afternoon, though, with the three major indexes ending another day in the red.
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Although this week's economic calendar is fairly thin, data from the Institute for Supply Management (ISM) this morning showed that activity in the services sector ticked up to 56.9% in August - the highest level since April - from July's 56.7%.
"This is the most recent piece of data to suggest the economy remains resilient and as such the market takeaway is that this gives the Fed more room to continue raising rates," says Michael Reinking, senior market strategist for the New York Stock Exchange. "Futures markets are now pricing in a 75% chance of a 75 basis-point hike later this month from a coin flip late last week." A basis point is one-one hundredth of a percentage point.
In reaction to today's ISM data, the 10-year Treasury yield rose to its loftiest level since mid-June. This, in turn, weighed on shares in the communication services (-1.3%) and technology (-0.6%) sectors, with names such as streaming giant Netflix (NFLX, -3.4%) and chipmaker Intel (INTC, -2.8%) seeing notable declines.
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As for the major indexes, the tech-heavy Nasdaq Composite fell 0.7% to 11,544, its seventh straight loss.
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Editor's note: This is part five of a seven-part series. It dives more deeply into the first strategy for mitigating a retirement tax bomb, which is to shift retirement savings from pre-tax to after-tax accounts, including Roths and HSAs. If you missed the introductory article, you may find it helpful to start here.
If you're facing a retirement tax bomb, there are three main strategies to defuse it: shifting retirement savings from pre-tax accounts to Roth and HSA accounts, implementing asset location, and executing Roth conversions.
I consider shifting your savings to be the first line of defense, because it's the easiest solution to implement. However, to really get the job done, you'll likely need to implement all three strategies.
There are two flavors to shifting savings, one uses Roth retirement accounts, while the other uses health savings accounts (HSAs).
Shift Retirement Plan Contributions from Pre-Tax to Roth
Perhaps the easiest solution to implement is simply changing your retirement plan contributions from pre-tax to Roth. You'll lose the tax deduction in the current year, and you may have to explain to your accountant why you made the change. However, any company match is tax-deferred, so even if you switch to 100% Roth, the employer match and your investment return means the tax-deferred account will still grow.
SEE MORE Find Out in 5 Minutes If You Have Enough to Retire
Many of my clients aren't aware they have a Roth option in their 401(k)/403(b), or they mistakenly think they can't contribute to one because of i
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