Wednesday,
April 17, 2024
Market recap
Dow Jones
37,798.97
+63.86 (+0.17%)
S&P 500
5,051.41
-10.41 (-0.21%)
Nasdaq
15,865.25
-19.77 (-0.12%)
Top Story
No respite for parents: Child care costs keep rising faster than inflation
While the cost of care varies wildly by where you live, and how old your child is, one thing is clear: Child care is expensive and American parents are under pressure.
US stocks were mixed on Tuesday following some tough comments from Fed Chair Jerome Powell
• Powell said recent inflation data makes it “likely to take longer than expected” for the central bank to feel comfortable cutting interest rates.
• Ticketmaster-owner Live Nation Entertainment saw its stock tumble 7.6% after the Wall Street Journal reported the Justice Department is preparing to file an antitrust suit against the company.
• Gold prices pushed to a fresh record close of more than $2,400 per ounce.
What to be on the lookout for today
• The weekly update on the 30-year mortgage rate.
• In earnings, U.S. Bancorp will report.
HSA or FSA: Which is right for you?
Medical and care costs can be a strain on your budget. But here’s the good news: There are pretax account options that can help pay these expenses.
Understanding HSAs and FSAs
HSAs: Contributions into a Health Savings Account, or HSA are made with pretax dollars and earnings in the account can grow tax-free. You can use the funds to pay for things like medical treatments, deductibles, and copayments.
For 2024, the contribution limit is $4,150 for self-only coverage and $8,300 for family coverage. Unspent HSA money rolls over every year and the account is “portable” so it’s not tied to your employer.
One thing to note is that you must have a high deductible plan to qualify for an HSA, and if you use the money for non-qualified medical expenses before a certain age, you may be hit with a tax penalty.
FSAs: Flexible spending accounts, or FSAs, also allow you to set aside pre-tax money to cover eligible medical expenses. While you don’t need to have a high deductible plan to qualify for an FSA, these accounts are only offered through an employer’s benefits.
FSA money is also “use it lose it,” meaning any unused money in the account at the end of the year will be forfeited.
Whichever account you qualify for, it can be useful to look into them if you want to lower your medical costs.
Today’s top stories
Women’s sports are booming. And rightly soCaitlin Clark is one of the biggest athletes of the year, but she’s not the only reason the crowd’s at women’s sports events are growing. This is a story of consumer choices, sports excellence and many, many dollars.
Read more >> What do you really leave behind when you leave the city?New York, Los Angeles, San Francisco, and Seattle have been still seeing citizens leave en masse, but some regret the benefits they are leaving behind.
Read more >> Are stock market forums worth your time?Online communities of investors can help you find your footing in the investing world. But there are drawbacks too. Here’s what you need to know.
Read more >>Other news that caught our eye
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Beyoncé’s new country album and song “Levii’s Jeans” have boosted Levi’s sales as fans flock to denim clothing. Sales for Western boots have also surged.
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Analysts at Citi project the price of gold will reach $3,000 per ounce in the next 6 to 18 months, as the precious metal keeps rising amid Middle East tensions.
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Starbucks is hopping on the “swicy” (sweet and spicy) TikTok trend with a new line of spicy lemonade drinks available for a limited time.
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Microsoft plans to invest $1.5 billion in UAE-based AI firm G42. As part of the deal, the company will use Microsoft’s cloud services for its AI applications.
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Volkswagen workers in Tennessee will vote on whether to join United Auto Workers this week as the union looks to expand beyond the Big Three U.S. automakers.
Financial planner tip of the day
“If you truly want to get better at spending and saving, then you may want to track both your daily spending habits and your long-term progress on your savings goals. This may feel difficult at first, but as with most things, it becomes easier with practice and as you hone the methods that work for you.”
Brian Walsh, CFP® at SoFi