Ilyas nasrulloh / Shutterstock.com Quick Read iShares Flexible Income Active ETF (BINC) yields 6.14% monthly through 4,000 holdings managed by Rick Rieder who oversees $2.7T in assets. ALPS REIT Dividend Dogs ETF (RDOG) yields 6.67% quarterly across 47 diversified REITs positioned to benefit from Fed rate cuts. iShares Preferred and Income Securities ETF (PFF) yields 6.07% monthly and trades below par value after losing 18.8% over five years. If you’re thinking about retiring or know someone who i ...

I’m 68, single and retired. I started claiming Social Security at 65 and my house is paid off completely. I have two fixed annuities: one for $300,000 at 5.5%, due to mature in 2026, and one for $100,000 at 4.5%, due to mature in 2028. RMDs are looming in five years when I will be 73. I don't need the money as I have CDs, stocks and savings. What advice can you give me regarding the two annuities to minimize taxes and ways to possibly reinvest the money. Thank you for your help in this matter and keep up th ...

Key Takeaways What the Fed's December Rate Cut Means for Your Savings As widely expected, the Federal Reserve ended the year with a quarter-point rate cut today—its third reduction of 2025, following similar moves in September and October. That brings total cuts this year to 0.75 percentage points, on top of 1.00 point in cuts delivered in late 2024. Today's Fed cut was widely expected, but it still signals that savings and CD yields will likely begin drifting a bit lower in the coming weeks. The Fed's 2026 ...

Key Takeaways Why CD Rates Could Drop After the Fed Meeting This Week Earnings on a $10,000 CD Opened at Today's Top Rates The Federal Reserve is widely expected to make its third rate cut of the year this week, with markets pricing in nearly 90% odds of another quarter-point reduction. That matters for savers because the yields banks and credit unions pay on savings accounts and certificates of deposit (CDs) typically move in the same direction as the Fed's benchmark rate. If policymakers do cut again, dep ...

Core Insights - Inflation is currently around 3%, which is higher than the Federal Reserve's target, impacting retirees with increased costs for essentials like groceries and healthcare [1] Group 1: Financial Strategies for Retirees - Retirees are adapting to inflation by adjusting their spending habits and employing smart financial strategies to maintain their savings [2] - Good budgeting practices involve prioritizing essential expenses and reducing discretionary spending, with small adjustments leading to significant savings [3] - Tax-efficient withdrawals and strategic asset allocation are essential for extending the longevity of retirement funds [4] Group 2: Investment Approaches - Retirees are advised to avoid keeping funds in basic checking accounts, opting instead for high-yield savings accounts, short-term CDs, and Treasury bills to achieve better returns [5] - Laddering CDs or Treasury maturities can provide steady interest income while ensuring accessibility for short-term needs [6] - Strategic investments in Treasury Inflation-Protected Securities (TIPS), inflation-focused bond funds, and dividend-growing equities help retirees maintain purchasing power [7] Group 3: Withdrawal Management - Financially secure retirees reassess their withdrawal rates annually, considering inflation, portfolio performance, and unexpected expenses to preserve capital [8]

Group 1 - The importance of balancing liquidity, safety, and growth in personal finance is emphasized, as many individuals lack the knowledge to effectively distribute funds across banking products [1] - Experts suggest that individuals should strategically allocate their money among checking accounts, high-yield savings accounts, certificates of deposit (CDs), and treasury bills [2][3] Group 2 - It is recommended to maintain a couple of months' worth of budgeted expenses in checking accounts for bill payments, as interest rates are low and excess funds may lose value due to inflation [4] - An emergency fund of three to six months' worth of living expenses should be kept in a high-yield savings account to earn higher interest [5] - A CD ladder is advised for additional savings, with three to six months' worth of living expenses, allowing for periodic access to funds without penalties [6][7] Group 3 - CDs offer slightly higher interest rates than high-yield savings accounts but require careful consideration regarding liquidity needs [7] - Short-term treasury bills are recommended as a safe alternative to CDs, backed by the U.S. government [8]

Core Points - The Federal Reserve has cut its benchmark interest rate by a quarter point for the second time since September, following a nine-month period without cuts [1] - The federal funds rate influences borrowing costs for consumers, affecting credit cards, auto loans, and mortgages [1][3] - The Fed aims to manage inflation and encourage full employment, facing challenges with inflation above the 2% target and a weak job market [3] Impact on Savings and Loans - Falling interest rates will reduce the attractiveness of yields on savings accounts and certificates of deposit [4] - After the last rate cut in September, three of the top five high-yield savings accounts reduced their rates, with current top rates around 4.46% to 4.6% [5] - The national average for traditional savings accounts is significantly lower at 0.63% [6] - Prospective homebuyers have already factored in the recent rate cut into the housing market [7]

Financial Data and Key Metrics Changes - The company reported a quarterly net loss of $1.9 million, an improvement from a $2 million loss in the prior quarter [2][6] - Pre-provision net loss was $1.3 million, also showing improvement compared to the previous quarter [2] - Net interest income increased by $551,000 to $12.2 million, driven by an 11.8% annualized increase in interest income [6][4] - Tangible book value per share increased to $15.14 [4] - Non-performing loans rose to $11.4 million, or 66 basis points of total loans, up from $6.3 million, or 38 basis points in the prior quarter [9] Business Line Data and Key Metrics Changes - Loan growth totaled $41.9 million, with commercial real estate and consumer loan portfolios driving this increase [3][9] - The commercial loan portfolio grew by $7.2 million, with strong origination activity of $81.3 million [3] - Consumer loan portfolio increased by $38 million, supported by purchases of unsecured consumer loans [3] - Core deposits grew by over 10% year-to-date, while commercial deposits increased by over 17% [3] Market Data and Key Metrics Changes - The net interest margin expanded by six basis points to 2.34%, supported by a nine basis point increase in asset yields [4][6] - The cost of average interest-bearing liabilities declined to 2.72% [6] Company Strategy and Development Direction - The company is focused on growing core deposits, diversifying the loan portfolio, and expanding the net interest margin [2] - A relationship-driven approach has been emphasized to enhance loan growth and deposit acquisition [3][21] - The company plans to de-emphasize CDs in favor of money market products to manage funding costs [12][13] Management's Comments on Operating Environment and Future Outlook - Management expects downward rate movements to benefit funding costs and net interest margin over time [5] - The company anticipates a relatively flat margin in Q4, with a significant pickup expected in 2026 due to repricing activities [17][18] - Credit quality remains sound, with minimal charge-offs and a disciplined approach to risk management [8][9] Other Important Information - The company repurchased over 837,000 shares at a weighted average price of $9.09 per share, with a total of 8.65 million shares repurchased since the program's inception [4] - Liquidity and capital remain strong, with $423 million in borrowing capacity and $178 million in unencumbered securities [4] Q&A Session Summary Question: Margin outlook and response to rate cuts - Management discussed strategies to manage funding costs and expectations for matching Fed rate cuts [12][13] Question: Loan growth outlook and consumer loan portfolio - Management confirmed a target growth range of 7% to 8% for the structured consumer loan portfolio [26] Question: Buyback activity and future expectations - Management indicated that the recent buyback activity may not be a sustainable run rate, but they still have shares available for repurchase [27][28]

Core Points - The Federal Reserve began raising interest rates aggressively in March 2022, reaching a peak of 5.25% to 5.5% by mid-2023, before starting to cut rates in late 2024 due to a stalling job market [1] - Changes in interest rate benchmarks have widespread effects on the economy, influencing businesses, mortgages, prices, and markets, which is crucial for individuals planning for retirement [2] - The Federal Reserve's decisions aim to stabilize inflation and maximize employment, impacting individual investors differently [3] Interest Rate Changes - The Federal Reserve uses data and analysis to determine the best course for the U.S. economy, adjusting benchmark interest rates that affect bank lending [4] - Raising the target interest rate makes borrowing more expensive, which can help control inflation, while cutting rates makes borrowing cheaper to stimulate economic growth [4] Economic Impact - Lower interest rates benefit businesses and consumers by making loans cheaper, encouraging spending and investment, but reduce the attractiveness of saving [5] - As borrowing costs decrease, businesses are more likely to pursue new ventures, and individuals find it easier to take on mortgages or car loans [5] Retirement Accounts - Rate cuts can positively impact stock investments within retirement accounts, as lower borrowing costs for businesses and increased consumer spending typically lead to rising equity prices [7]

Group 1 - The article discusses the complexities of retirement income and savings, emphasizing that there is no one-size-fits-all approach to withdrawing funds during retirement [2][3] - It highlights the importance of assessing individual retirement situations in collaboration with financial professionals to determine the best withdrawal strategy [2] - The article provides a roadmap for retirees, suggesting a sequence for drawing from various sources of income [2] Group 2 - Cash reserves are recommended as the first source for withdrawals, especially if they exceed emergency fund requirements [3] - The article notes that cash loses value due to inflation, illustrating this with an example where $2,000 in 2000 would need to be $3,600 today to maintain purchasing power [4] - It mentions that retirees can still grow their cash through high-yield certificates of deposit (CDs) [5] Group 3 - Taxable accounts are identified as the next source for withdrawals, as they are less tax-efficient due to capital gains and dividend taxes [6] - The article advises retirees to consider strategic losses in stock trading to offset gains and maximize overall returns [6] - It cites research from Vanguard indicating that retirees who consult financial advisors can achieve up to a 3% increase in net returns compared to those who do not [7]