Latest news with #financialadvice
Yahoo
13 hours ago
- Business
- Yahoo
3 Stocks Under $10 with Open Questions
Stocks under $10 pique our interest because they have room to grow (as well as the most affordable option contract premiums). That doesn't mean they're bargains though, and we urge investors to be careful as many have risky business models. The bad behavior exhibited by lower-quality companies in this space can spook even the most seasoned professionals, which is why we started StockStory - to separate the good from the bad. Keeping that in mind, here are three stocks under $10 to avoid and some other investments you should consider instead. Share Price: $7.16 With courses ranging from investing to cooking to computer programming, Udemy (NASDAQ:UDMY) is an online learning platform that connects learners with expert instructors who specialize in a wide range of topics. Why Are We Wary of UDMY? Customer spending has dipped by 1.6% on average as it focused on growing its buyers Sales are projected to remain flat over the next 12 months as demand decelerates from its three-year trend High marketing expenses suggest it needs to spend heavily on new customer acquisition to sustain momentum Udemy's stock price of $7.16 implies a valuation ratio of 11.1x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than UDMY. Share Price: $0.74 Founded by two brothers, Purple (NASDAQ:PRPL) creates sleep and home comfort products such as mattresses, pillows, and bedding accessories. Why Should You Dump PRPL? Sales tumbled by 6.3% annually over the last two years, showing consumer trends are working against its favor Diminishing returns on capital from an already low starting point show that neither management's prior nor current bets are going as planned Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders Purple is trading at $0.74 per share, or 24.6x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why PRPL doesn't pass our bar. Share Price: $1.33 Pioneering what scientists call "HiFi long-read sequencing," recognized as Nature Methods' method of the year for 2022, Pacific Biosciences (NASDAQ:PACB) develops advanced DNA sequencing systems that enable scientists and researchers to analyze genomes with unprecedented accuracy and completeness. Why Should You Sell PACB? Sales trends were unexciting over the last two years as its 6.6% annual growth was below the typical healthcare company Free cash flow margin dropped by 29.9 percentage points over the last five years, implying the company became more capital intensive as competition picked up Short cash runway increases the probability of a capital raise that dilutes existing shareholders At $1.33 per share, PacBio trades at 2.4x forward price-to-sales. To fully understand why you should be careful with PACB, check out our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
Times
16 hours ago
- Business
- Times
We have £800k in pensions. Can we afford to stop saving?
Q. If a couple in their early sixties have a reasonably sized combined pension pot, say £800,000, but struggle to meet weekly expenses, does it make sense to stop contributing nearly £500 a month to their pensions? Paul, Croydon Will Stevens replies For many savers it can seem like a daunting task to balance saving for the future while also living in (and enjoying) the now. In simple terms there are three things to bear in mind: budgeting for more immediate necessities, your future long-term needs (for example holidays, renovations or care) and any other considerations, such as tax. To properly understand how much you are spending each month — and perhaps why you are struggling to meet these expenses — it is worth spending time on a budgeting exercise. This includes taking a good look at what you are spending and where there is any scope to reduce your outgoings, including any direct debits you no longer need or have forgotten about. While this may seem unexciting, it is time well spent, and there are lots of great tools on the internet to help with this step. Next, make sure that your income can meet your expenditure on a regular, ongoing basis. If not you will need to look at options such as reducing your pension contributions, to avoid being forced to rely on your savings. When it comes to savings, make sure that you have enough cash set aside to meet emergencies. These rainy-day savings should cover three to six months' expenditure and should be held as cash in an instant access account. If you know that you will need money for other events in the next three years, it's worth holding this as cash too. If you find yourself regularly drawing down on these cash supplies, say weekly or monthly, you will want to top them up from other sources. With a combined pension pot of £800,000 you're in a strong position. But it's essential to do the sums on what income this could realistically generate in retirement to ensure that it meets your projected living costs. These costs will obviously be unique to you and there is no one-size-fits-all approach, but as a good guide, the Pensions and Lifetime Savings Association (PLSA) recently published its latest figures on the income it calculates is needed in retirement to achieve certain standards of living. • How to stop the taxman taking a big slice of your pension The PLSA says that an annual post-tax income of £43,900 is needed for a couple to enjoy a 'moderate' standard of living while a post-tax income of £60,600 is what you need for a 'comfortable' retirement. It is important to note that these figures do not budget for any housing costs. If you both qualify for the full state pension, it will be a big help. Look at the total value of your pensions, how they are invested and the potential income you could draw from them in retirement. This will help to determine if contributions are still essential or if your pot is already enough to secure your desired lifestyle. It can be a good idea to consolidate pensions in one place, but check that you're not giving up any benefits to each scheme when transferring pots. While reducing pension contributions might provide immediate relief, it's vital to consider the significant benefits you could be giving up. Tax relief on pension contributions means that your savings are boosted by a government top-up. This means that every 80p contributed by a basic-rate taxpayer is topped up to £1 while higher or additional-rate taxpayers can reclaim even more. If you were contemplating stopping contributions to a workplace pension, the benefit you would lose could be even greater. If your employer matched your contributions, that 40p from you would become £1 once your employer's contribution and tax relief was added. The actual 'saving' from stopping contributions might be less than you think, because you would be forfeiting these substantial perks. • Before deciding whether to stop paying into your pension, explore other ways to ease immediate financial strain. Looking at other expenses and identify a plan to reduce your outgoings. If you have a mortgage, it's worth assessing how and when you intend to pay it off. Many savers do this with the 25 per cent tax-free cash that they can take from their pensions but this could lead to not having enough pension to live off in later life. A financial adviser can help you to build a comprehensive financial model tailored to your unique circumstances.
Yahoo
19 hours ago
- Business
- Yahoo
I Let ChatGPT Review My Investment Portfolio: Here's What It Told Me To Change
Staring at investment accounts can be overwhelming to say the least. With so many different accounts to monitor, it's hard not to wonder if you're doing everything correctly. And financial advisors are expensive. So, what's an investment-minded person to do? Learn More: Read Next: Well, there is an alternative. Instead of paying for spendy financial advice, I fed all my numbers into ChatGPT and asked for a brutally honest review. And, well, the AI didn't disappoint. Here's what ChatGPT told me about my $469,306 investment portfolio and the specific changes I need to make. ChatGPT started with the basics. My total portfolio sits at $469,306, which sounds impressive until you dig into the details. It gave me a 'retirement score' of 83 out of 150, which falls into the 'good' category. So, not terrible, but definitely room for improvement. The projected numbers were a wake-up call. Based on my current trajectory, ChatGPT estimates I'll have about $3,479 in monthly retirement income, but I'll actually need around $4,191 per month. That leaves me about $712 short every single month in retirement. That gap hit me hard. We're talking about nearly $8,500 per year that I won't have when I stop working. ChatGPT made it clear this isn't just a minor adjustment; this is a real problem that needed fixing now. Find Out: ChatGPT didn't mince words about how my employer 401(k) was 'very low' compared to my other accounts. However, this wasn't surprising news as I recently started a new job and it hasn't had time to grow yet. That said, it was a solid reminder to make sure the 401(k) took full advantage of my employer match. My employer offers to match my contributions at 50% of up to 7% of my salary. I was pretty sure I was already taking full advantage, but I went through and double-checked. ChatGPT recommended I contribute 10%-15% of my income and reminded me that the contribution limit for 2025 is $23,500. Armed with that information, I decided on a 10% contribution, and my 401(k) is now perfectly set up and ready to go. Here's where ChatGPT gave me some good news. My traditional and Roth IRAs total about $306,000, which it called 'excellent.' The mix between traditional ($214,380) and Roth ($92,001) gives me good tax diversification for retirement. ChatGPT recommended I keep maxing out the annual Roth IRA contributions ($7,000 if you're under age 50, or $8,000 if you're 50 or older). Side note here, it should be mentioned that ChatGPT got this information incorrect. It told me that it's $7,000 if you're over age 50. Thus proving that whatever info you get from AI, should be double checked. I'm already maxing out my $7,000 Roth IRA, and it also suggested something I hadn't considered: gradually converting some traditional IRA money to Roth during lower income years. The strategy actually makes sense. By paying taxes now on smaller conversions, I could reduce the tax bomb when required minimum distributions kick in later. When I gave ChatGPT more details. My age with medium risk tolerance and wanting to retire at 65, it got specific about how my money should be divided up. The recommended breakdown was different from what I expected: 40%-45% U.S. stocks for core growth 15%-20% international stocks for diversification 25%-30% bonds for stability and income 0%-5% cash for emergency reserves 5%-10% alternative assets like REITs if available ChatGPT was clear that with around 25 years until retirement, I have enough time to take growth-oriented risks while managing volatility. The mix leans more toward stocks than I thought it would, but the reasoning made sense. This was the tough part. To close that monthly shortfall in retirement, ChatGPT calculated I need roughly $215,000 to $250,000 more saved by age 65, assuming a 4% withdrawal rate. Breaking that down, I need to save an additional $550-$700 per month starting now. That's not pocket change, but it's also not impossible if I make some adjustments. ChatGPT suggested using Roth IRAs or taxable brokerage accounts once I max out the tax-deferred options. The key is consistency; that extra $600 per month needs to happen every month, not just when I remember or have extra cash. One recommendation caught me off guard: treating my HSA like a stealth retirement account. ChatGPT pointed out that if my HSA allows investing, I should put most of it in growth investments and let it grow tax-free for future health expenses. The strategy is to keep about a year's worth of out-of-pocket maximum in cash, then invest the rest. Since healthcare costs typically increase in retirement, this is a real tool as it becomes a powerful tax-free bucket for a major expense category. ChatGPT laid out a clear priority list that I can actually follow: High priority: Increase my 401(k) contributions immediately, especially to capture any employer match I'm missing. Medium priority: Rebalance my portfolio to match the recommended asset allocation and explore Roth conversions during lower income years. Ongoing: Increase my overall savings rate to close that monthly income gap and consider working with a financial planner for more personalized strategies. The biggest surprise was how specific and actionable the feedback was. To be very honest, I expected generic advice about diversification, saving more and blah blah blah. Instead, ChatGPT gave me exact dollar amounts, specific percentages and a clear timeline for implementation. I now have an actionable plan and goals. Now I just have to do it. Too bad the AI can't do that part for me! More From GOBankingRates 25 Places To Buy a Home If You Want It To Gain Value This article originally appeared on I Let ChatGPT Review My Investment Portfolio: Here's What It Told Me To Change Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mail
a day ago
- Business
- Daily Mail
'Disrespectful' woman blasted for charging her mother for a simple household task
A woman has received backlash after revealing that she charged her mother £40 to help set up her household bills. Laura Shahu, believed to be from the UK, has 29,000 followers on Instagram where she often posts videos about tips and tricks she's learnt on how to save cash over the years. The mother-of-two recently shared a clip in which she revealed that her mother needed assistance with setting up her household bills and wanted to get her advice on the best rate possible. Laura said: 'Am I greedy for charging my mum £40 for setting up her own bank account for her? I know what you're thinking - what kind of person charges their own mother to help them manage their bills? Well I kind of did and kind of didn't - let me explain.' She said her mother was 'not very tech savvy' and wasn't 'confident' in finding the best value for money when it came to sorting out her bills. She said the pair 'came to an agreement' that led to Laura helping her mother to find the cheapest bills - if she gave her the £40 cashback she earned as a 'thank you'. But some social media users called her a 'joker' and said that she should be willing to help her mother out for free. The content creator explained: 'In return, if I get that deal through a cashback website for her, she would give me the cashback that she otherwise would not have got if she had done it herself. 'In essence, she gets the best rate for her household bills without having to do the work to find it and if the best deal happens to be on a cashback website, I get the cashback that my mum would have otherwise gotten if she had done the work herself. 'We see it as a win-win because she gets confidence in knowing that she is getting the best rate for her bills but doesn't have to spend any time trying to search for it and I get the little bit of cashback to say thank you.' Laura asked for people's opinions on whether they would ask their parents for money in return for helping them with admin tasks. One person wrote: 'That's madness. £40 is hardly anything, your mum birthed you, you joker. Just help her.' Another penned: 'No, no, no this is so wrong after all your mum has done for you. 'Now is the time you should be helping her and showing her how to do things. If she wants to treat you for your kindness that is up to her.' A third said: 'I personally wouldn't, I'd help her and show her and let her keep the £40.' A fourth commented: 'I think this is wrong, I help my mother as much as I can, I would never want anything in return. 'To me, it feels somewhat sad how money-focused you are. Losing values such as respect for elders, family importance and giving back to the parent(s) who raised us. 'Who provided for us for decades. If you feel this is fair and justified - I wonder what morals you have in terms of finances.' But others agreed with Laura and said that she was very fair in asking her mother for the £40 cashback. One said: 'The admin I do for my mum-in-law- I should claim a salary! I just take the hugs.' Another penned: 'No, you are not, this is essentially a referral fee and you are the one referring her. This is no different to you going to a broker and they take the referral fee. 'She doesn't have to go with your choice, but if she does, you earned that cashback, if it's a large amount you may want to split it, but if you are both happy with the deal, nothing wrong with it. 'She's getting the best rate and you get compensation for your time and effort without it costing your mum anything.'
The Independent
a day ago
- Business
- The Independent
The first thing a Lottery winner must do with their winnings
Andy Carter, a Winner's Adviser at Allwyn, guides UK lottery winners through the process of claiming and managing their substantial prizes. Carter advises new winners to take time off and let the reality of their lump-sum winnings, which can be overwhelming, fully sink in. Winners receive comprehensive support, including legal, financial, and well-being advice, and are connected with other lottery winners for shared understanding. Fewer than 20 individuals in the UK have won over £100 million, highlighting the rarity and the significant financial decisions involved. While many winners make conservative choices, they are encouraged to enjoy their wealth and can use concierge services to fulfill bucket list experiences.
