30-Year Fixed Mortgage Rate Hovers Above All-Time Low

As of April 28, the rate borrowers were quoted on Zillow for 30-year fixed mortgages was 2.78%.

Abstract illustration of houses and charts

As of April 28, the rate borrowers were quoted on Zillow for 30-year fixed mortgages was 2.78%.

Mortgage rates fall despite strong economic data reports.

“Mortgage rates fell again this week, continuing the downward trend they’ve exhibited for most of April,” said Zillow Economist Matthew Speakman. “In what was a relatively unremarkable week for mortgage rates, the modest movement was partially driven by discussions about a proposed increase in capital gains tax rates – which placed downward pressure on bond yields and thus rates – and anticipation of a key announcement by the Federal Reserve. Fed Chair Jerome Powell reiterated on Wednesday that the Central Bank has no immediate plans to increase interest rates or curb the purchases of mortgage-backed securities – a position that placed more downward pressure on bond yields and is likely to result in more mortgage decreases in the coming days. Looking ahead, with a slew of key economic reports on the horizon – including consumer spending and inflation data – the relatively muted mortgage rate activity from the past couple weeks may transition to more significant movements.”

Additionally, the 15-year fixed mortgage rate was 2.11%, and for 5/1 ARMs, the rate was 2.55%.

Check Zillow for mortgage rate trends and up-to-the-minute mortgage rates for your state, or use the mortgage calculator to calculate monthly payments at the current rates.

The weekly mortgage rate chart above illustrates the average 30-year fixed interest rate for the past week. Here’s a comprehensive look at the current mortgage rates for all loan types:

Today’s Average Rates for Conventional Loans

Program Interest Rate APR 1 Wk Change
30-Year Fixed 2.8% 2.85% 0.08%
20-Year Fixed 2.66% 2.73% 0.03%
15-Year Fixed 2.1% 2.19% 0.02%
10-Year Fixed 2.01% 2.15% -0.08%
7/1 ARM 2.28% 2.96% 0.22%
5/1 ARM 2.34% 3.1% 0.15%
3/1 ARM 0% 0% 0%

A 30-Year Fixed loan of $300,000 at 2.8% APR with a $75,000 down payment will have a monthly payment of $1,232. A 20-Year Fixed loan of $300,000 at 2.66% APR with a $75,000 down payment will have a monthly payment of $1,613. A 15-Year Fixed loan of $300,000 at 2.1% APR with a $75,000 down payment will have a monthly payment of $1,944. A 10-Year Fixed loan of $300,000 at 2.01% APR with a $75,000 down payment will have a monthly payment of $2,762. A 7/1 ARM loan of $300,000 at 2.28% APR with a $75,000 down payment will have a monthly payment of $1,151. A 5/1 ARM loan of $300,000 at 2.34% APR with a $75,000 down payment will have a monthly payment of $1,159. A 3/1 ARM loan of $0 at 0% APR with a $0 down payment will have a monthly payment of $0. All monthly payments displayed assume a maximum Loan to Value (LTV) of 80% and 740 credit score, and do not include amount for taxes and insurance. The actual monthly payment may be greater.

Today’s Average Rates for Government Loans

Program Interest Rate APR 1 Wk Change
30-Year Fixed FHA 2.33% 2.99% 0.24%
30-Year Fixed VA 2.54% 2.81% 0.05%
15-Year Fixed FHA 2.11% 2.85% 0.17%
15-Year Fixed VA 2.53% 3.02% 0.04%
5/1 ARM FHA 2.6% 2.97% 0.02%
5/1 ARM VA 3.06% 2.75% -0.19%

A 30-Year Fixed FHA loan of $300,000 at 2.33% APR with a $75,000 down payment will have a monthly payment of $1,159. A 30-Year Fixed VA loan of $300,000 at 2.54% APR with a $75,000 down payment will have a monthly payment of $1,191. A 15-Year Fixed FHA loan of $300,000 at 2.11% APR with a $75,000 down payment will have a monthly payment of $1,946. A 15-Year Fixed VA loan of $300,000 at 2.53% APR with a $75,000 down payment will have a monthly payment of $2,004. A 5/1 ARM FHA loan of $300,000 at 2.6% APR with a $75,000 down payment will have a monthly payment of $1,200. A 5/1 ARM VA loan of $300,000 at 3.06% APR with a $75,000 down payment will have a monthly payment of $1,273. All monthly payments displayed assume a maximum Loan to Value (LTV) of 80% and 740 credit score, and do not include amount for taxes and insurance. The actual monthly payment may be greater.

Today’s Average Rates for Jumbo Loans

Program Interest Rate APR 1 Wk Change
30-Year Fixed Jumbo 3.22% 3.27% 0.07%
20-Year Fixed Jumbo 3.29% 3.33% 0.24%
15-Year Fixed Jumbo 2.86% 2.94% 0.06%
10-Year Fixed Jumbo 2.52% 2.6% 0.1%
7/1 ARM Jumbo 2.68% 3.07% -0.25%
5/1 ARM Jumbo 2.61% 3.06% -0.09%
3/1 ARM Jumbo 2.14% 2.74% 0%

A 30-Year Fixed Jumbo loan of $600,000 at 3.22% APR with a $150,000 down payment will have a monthly payment of $2,602. A 20-Year Fixed Jumbo loan of $600,000 at 3.29% APR with a $150,000 down payment will have a monthly payment of $3,414. A 15-Year Fixed Jumbo loan of $600,000 at 2.86% APR with a $150,000 down payment will have a monthly payment of $4,102. A 10-Year Fixed Jumbo loan of $600,000 at 2.52% APR with a $150,000 down payment will have a monthly payment of $5,660. A 7/1 ARM Jumbo loan of $600,000 at 2.68% APR with a $150,000 down payment will have a monthly payment of $2,427. A 5/1 ARM Jumbo loan of $600,000 at 2.61% APR with a $150,000 down payment will have a monthly payment of $2,406. A 3/1 ARM Jumbo loan of $600,000 at 2.14% APR with a $150,000 down payment will have a monthly payment of $2,259. All monthly payments displayed assume a maximum Loan to Value (LTV) of 80% and 740 credit score, and do not include amount for taxes and insurance. The actual monthly payment may be greater.

Source: zillow.com

30-Year Fixed Mortgage Rate Rises

As of April 28, the rate borrowers were quoted on Zillow for 30-year fixed mortgages was 2.78%.

Abstract illustration of houses and charts

As of April 28, the rate borrowers were quoted on Zillow for 30-year fixed mortgages was 2.78%.

Mortgage rates fall despite strong economic data reports.

“Mortgage rates fell again this week, continuing the downward trend they’ve exhibited for most of April,” said Zillow Economist Matthew Speakman. “In what was a relatively unremarkable week for mortgage rates, the modest movement was partially driven by discussions about a proposed increase in capital gains tax rates – which placed downward pressure on bond yields and thus rates – and anticipation of a key announcement by the Federal Reserve. Fed Chair Jerome Powell reiterated on Wednesday that the Central Bank has no immediate plans to increase interest rates or curb the purchases of mortgage-backed securities – a position that placed more downward pressure on bond yields and is likely to result in more mortgage decreases in the coming days. Looking ahead, with a slew of key economic reports on the horizon – including consumer spending and inflation data – the relatively muted mortgage rate activity from the past couple weeks may transition to more significant movements.”

Additionally, the 15-year fixed mortgage rate was 2.11%, and for 5/1 ARMs, the rate was 2.55%.

Check Zillow for mortgage rate trends and up-to-the-minute mortgage rates for your state, or use the mortgage calculator to calculate monthly payments at the current rates.

The weekly mortgage rate chart above illustrates the average 30-year fixed interest rate for the past week. Here’s a comprehensive look at the current mortgage rates for all loan types:

Today’s Average Rates for Conventional Loans

Program Interest Rate APR 1 Wk Change
30-Year Fixed 2.8% 2.85% 0.08%
20-Year Fixed 2.66% 2.73% 0.03%
15-Year Fixed 2.1% 2.19% 0.02%
10-Year Fixed 2.01% 2.15% -0.08%
7/1 ARM 2.28% 2.96% 0.22%
5/1 ARM 2.34% 3.1% 0.15%
3/1 ARM 0% 0% 0%

A 30-Year Fixed loan of $300,000 at 2.8% APR with a $75,000 down payment will have a monthly payment of $1,232. A 20-Year Fixed loan of $300,000 at 2.66% APR with a $75,000 down payment will have a monthly payment of $1,613. A 15-Year Fixed loan of $300,000 at 2.1% APR with a $75,000 down payment will have a monthly payment of $1,944. A 10-Year Fixed loan of $300,000 at 2.01% APR with a $75,000 down payment will have a monthly payment of $2,762. A 7/1 ARM loan of $300,000 at 2.28% APR with a $75,000 down payment will have a monthly payment of $1,151. A 5/1 ARM loan of $300,000 at 2.34% APR with a $75,000 down payment will have a monthly payment of $1,159. A 3/1 ARM loan of $0 at 0% APR with a $0 down payment will have a monthly payment of $0. All monthly payments displayed assume a maximum Loan to Value (LTV) of 80% and 740 credit score, and do not include amount for taxes and insurance. The actual monthly payment may be greater.

Today’s Average Rates for Government Loans

Program Interest Rate APR 1 Wk Change
30-Year Fixed FHA 2.33% 2.99% 0.24%
30-Year Fixed VA 2.54% 2.81% 0.05%
15-Year Fixed FHA 2.11% 2.85% 0.17%
15-Year Fixed VA 2.53% 3.02% 0.04%
5/1 ARM FHA 2.6% 2.97% 0.02%
5/1 ARM VA 3.06% 2.75% -0.19%

A 30-Year Fixed FHA loan of $300,000 at 2.33% APR with a $75,000 down payment will have a monthly payment of $1,159. A 30-Year Fixed VA loan of $300,000 at 2.54% APR with a $75,000 down payment will have a monthly payment of $1,191. A 15-Year Fixed FHA loan of $300,000 at 2.11% APR with a $75,000 down payment will have a monthly payment of $1,946. A 15-Year Fixed VA loan of $300,000 at 2.53% APR with a $75,000 down payment will have a monthly payment of $2,004. A 5/1 ARM FHA loan of $300,000 at 2.6% APR with a $75,000 down payment will have a monthly payment of $1,200. A 5/1 ARM VA loan of $300,000 at 3.06% APR with a $75,000 down payment will have a monthly payment of $1,273. All monthly payments displayed assume a maximum Loan to Value (LTV) of 80% and 740 credit score, and do not include amount for taxes and insurance. The actual monthly payment may be greater.

Today’s Average Rates for Jumbo Loans

Program Interest Rate APR 1 Wk Change
30-Year Fixed Jumbo 3.22% 3.27% 0.07%
20-Year Fixed Jumbo 3.29% 3.33% 0.24%
15-Year Fixed Jumbo 2.86% 2.94% 0.06%
10-Year Fixed Jumbo 2.52% 2.6% 0.1%
7/1 ARM Jumbo 2.68% 3.07% -0.25%
5/1 ARM Jumbo 2.61% 3.06% -0.09%
3/1 ARM Jumbo 2.14% 2.74% 0%

A 30-Year Fixed Jumbo loan of $600,000 at 3.22% APR with a $150,000 down payment will have a monthly payment of $2,602. A 20-Year Fixed Jumbo loan of $600,000 at 3.29% APR with a $150,000 down payment will have a monthly payment of $3,414. A 15-Year Fixed Jumbo loan of $600,000 at 2.86% APR with a $150,000 down payment will have a monthly payment of $4,102. A 10-Year Fixed Jumbo loan of $600,000 at 2.52% APR with a $150,000 down payment will have a monthly payment of $5,660. A 7/1 ARM Jumbo loan of $600,000 at 2.68% APR with a $150,000 down payment will have a monthly payment of $2,427. A 5/1 ARM Jumbo loan of $600,000 at 2.61% APR with a $150,000 down payment will have a monthly payment of $2,406. A 3/1 ARM Jumbo loan of $600,000 at 2.14% APR with a $150,000 down payment will have a monthly payment of $2,259. All monthly payments displayed assume a maximum Loan to Value (LTV) of 80% and 740 credit score, and do not include amount for taxes and insurance. The actual monthly payment may be greater.

Source: zillow.com

Investing in Food Stocks

You may not know what the future holds, but you know there’ll be a meal involved. A good meal or grocery trip is not only a necessity for survival, it can also be part of an investment strategy.

While restaurants and grocery stores may come to mind, the world of food stocks is larger than one might think, encompassing everything from a grain of wheat to the latest on-demand app.

Food stocks and the industries surrounding them have long been a part of investors’ portfolios. The most recent figures show that Americans dedicate close to 10% of their disposable income on food, a level that’s been consistent for about two decades. Roughly half that is spent for food at home, and the other half is on dining out.

But some types of food stocks can hold more risk than others. Read on to learn the history of food stocks in the market, the types of food stocks, and the overall risk profile of these investments.

Are Food Companies Consumer Staples or Discretionary Stocks?

Looking at the market as a whole, food stocks are part of the “consumer staples” industry, which is considered to be a “defensive” sector in investing. Defensive sectors are those less closely tied to the economy. That means even if the economy is in a recession, consumer staples are seen as less risky and more stable than other industries.

However, no stock is recession-proof. And not all food stocks are actually consumer staples. For instance, restaurant companies typically fall into the consumer discretionary category, which consist of “cyclical stocks,” or those tied to how well the economy is doing. That’s because of how people tend to dine out when they have more income to spend in their pockets.

Recommended: Investing With the Business Cycle

When deciding whether to invest in a food stock, beginner investors might want to research which industry the company falls under: consumer staples or consumer discretionary.

Different Types of Food Stocks

Food stocks include more than just memorable brands. It’s more encompassing than just consumer-facing brands or restaurants. Anything that helps food get to your plate can be considered part of the food supply chain.

Food stocks generally fall under these seven sub-industries:

Farming

Food stock investing can start at the granular level–investing in raw agricultural commodities like soy, rice, wheat, and corn. Farming stocks can also include the ancillary companies that foster that growth–companies that create and distribute insecticide and herbicide or build the industrial-size farm equipment to help harvest goods.

While one might think investing in farming stock would be actual farms, the reality is the opposite. About 98% of farms in the U.S. are family-owned and therefore, not publicly traded. So investing in farming stock primarily means the chemicals and machinery that help harvest the raw product.

Farming stocks can waver based on things like the weather and current events. It can be challenging to predict the next rainy season or drought, sometimes making it hard to track and predict value. In addition, tariffs and trade agreements can influence the performance of these stocks, making them more volatile.

Recommended: Understanding Stock Volatility

Food-Processing Stocks

Companies that work in food processing buy raw ingredients that are combined to make items in the grocery store aisles or on restaurant menus.

Some names and brands in the food processing sector might not be familiar to the casual investor. More often than not, these companies are behind the scenes, operating at a large scale to provide the world oils and sweeteners.

Food processing stocks have their own quirks when it comes to investing. Unlike farming, they’re less influenced by the whims of weather or season, but they still have an associated set of risks. The costs associated with this industry vertical are vast, and price competition across brands can lead to drops or jumps in the market.

Stocks of Food Producers

Further up the supply chain comes food producers, where novice investors are more likely to know these brands and companies from daily life and dietary habits. Food producers take the raw ingredients provided by processors and create the items found on store shelves.

Break this vertical down further to find “diversified” and “specialized” producers.

As the name suggests, diversified food producers are companies that create a ton of different products under the same name umbrella, like Nestlé, which makes everything from baby food to ice cream.

Then there are specialized producers. They make consumer products as well, but these companies often cater to a narrower audience, producing only a few items, often within the same vertical.

In times of recession, luxury or expensive food processing stocks might take a dip. Additionally, consumer trends can influence the market. Take the alternative meat craze–a popular investment trend in recent years. Investors saw larger-than-average returns for the industry due to interest in the trend.

Food-Distribution Stocks

Distribution companies have little to do with consumption or production and focus more on logistics and transport. These companies send products across the country and world.

Distribution companies range from very large, reaching national distribution, to fairly small, where they connect specialty retailers. The distribution market might have its long-term players, but investing in it comes with its own risks.

Grocery-Store Stocks

Grocery stores have become big business in the investment game. The next link in the chain, grocery stores are where the products end up once a distributor drops them off.

Grocery store investments are hardly recession-proof, but the necessity of groceries as a staple for consumers suggests these investments take a lesser hit in a market downturn.

Recommended: Investing During a Recession

Restaurant Stocks

Restaurants are an additional resting place for food distributors. In economic downturns, discretionary restaurant spending is usually the first to go, making this industry within food investing slightly less stable than the others. Additionally, this arena might be most susceptible to trends.

Food-Delivery Service Stocks

The newest addition in food stocks is more about tech than good eats. Online delivery services have burst onto the scene, and with a limited history of performance, are considered to be riskier than the traditional food stocks outlined above.

Right now, delivery service companies are still duking it out across the country, expanding to new cities and slashing the price of services to entice customers.

Pros and Cons of Investing in Food Stocks

With all the ingredients in order, it’s time to highlight a few of the basic pros and cons of investing in food stocks.

Pro: Food stocks, particularly those that are consumer staples, can perform consistently. Food stocks can be a relatively safe, recession-resistant investment (but remember all stocks have inherent risk).
Con: Food stocks perform consistently. For an investor looking for a higher-risk investment, the steady year-over-year earnings might not be as enticing for someone trying to build a high-return portfolio.
Pro: Familiarity with brands. Many food stocks are also commonly found in investors’ pantries and refrigerators. For someone new to investing, buying stocks in the brands they trust and use could be a great way to dip their toes in the market.
Con: Not all food stocks are immune to ups and downs in the economy. Some companies, particularly restaurant groups or those that produce higher-priced products, may be hurt if discretionary spending by consumers pulls back.

The Takeaway

Investing in food companies can actually lead to investing in a wide range of different companies–those that are defensive and more immune to economic shifts, those that are cyclical and rise when the economy is hot.

It can also involve wagering on stocks that have long been a part of the food supply chain, as well as startup unicorn companies that are using innovative mobile technology to deliver meals to consumers.

For individuals who want to try their hand at picking food stocks, SoFi’s Active Investing platform may be a good option. Investors can buy traditional stocks, exchange-traded funds (ETFs), or even fractional shares of some companies. For those who need help, the Automated Investing service builds portfolios for SoFi Members and Certified Financial Planners can answer questions on investing.

Get started with SoFi Invest today.


SoFi Invest®
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For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal.
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Source: sofi.com

10 Characteristics of the Best Growth Stocks (for High Investment Return)

Your investment strategy plays a major role in your profitability, or lack thereof. One of the most popular strategies investors employ is known as the growth investing strategy. The strategy is centered around finding and investing in stocks that have experienced compelling growth in recent history, and tapping into the ongoing growth potential.

But what exactly is a good growth stock?

Characteristics of the Best Growth Stocks

If you’re looking for stocks with incredible growth potential, ultimately hoping to cash in on the upward volatility to generate profits, you’re looking for stocks that display the following characteristics.

1. Stock Price Growth

For a stock to qualify as a growth stock, it has to be experiencing growth in its share price. Without price appreciation, the stock simply doesn’t fall into this category.

So, how do you determine if a stock is on an upward trend?

The easiest way is to take a look at the stock chart.

  • Look at Three-Month and One-Year Stock Charts. It will be clear whether a stock is trending upward when you look at the chart. If the share price has seen relatively consistent upward movement, there’s a strong chance you’re looking at a growth stock. It’s important to look at the chart over the past three months and one year. The three-month chart will tell you whether the trend is currently upward and the one-year chart will tell you whether the growth in the stock has been sustained over a significant period of time.
  • Forgive Dips. Even in bull markets, stocks that are climbing will dip from time to time as investors take profits or digest pieces of news. What you’re looking for is an overall performance in the upward direction, ignoring short-term dips in the data.
  • Compare the Growth to the S&P 500. The S&P 500 index is the primary benchmark of the United States market. By comparing the growth of the stock you’re interested in over the past three months and one year to growth in the S&P 500, you’ll be able to determine whether the company’s stock price has underperformed, performed in line, or outperformed the wider U.S. market. After all, the goal here is to find high-growth stocks that outperform market returns.

After looking at the charts, if you find that the stock has outperformed Wall Street averages over the past three months and one year, chances are you’ve landed on a solid opportunity to beat the market with your investing dollars.

2. Earnings Growth

Sustained gains in the value of a stock will only be possible if the company you’re investing in sustains growth in profitability. Who wants to continue piling money into a company that’s losing it all?

Determining earnings growth is a relatively simple process, thanks to a tool provided by Nasdaq. To access the tool, visit the Nasdaq website and look up the stock ticker you want to research. On the left of any stock’s profile is a link titled Earnings you can click for more details.

The resulting page will have a graph that shows the earnings per share on a quarterly basis over the past year. Look for consistent quarter-over-quarter growth in earnings. Also, pay attention to the earnings surprises. Stocks that have all positive earnings surprises consistently beat analyst expectations — a great sign for a growth stock.

3. Revenue Growth

It’s also important that the stock you invest in has a track record of impressive revenue growth. There are ways to reduce costs to inflating earnings while revenue is either plateauing or falling. These methods will only last so long, and earnings will begin to falter at some point if there isn’t real revenue growth underneath.

So, it’s important to make sure that the stocks you’re interested in are experiencing consistent and compelling growth in revenue.

To determine whether revenue is growing, simply look into the company’s last four quarterly earnings reports. Take note of the revenue reported in each quarter, keeping in mind normal peaks and valleys seen in the sector.

For example, tech companies tend to do best around the holidays, leading to strong fourth quarter revenue. As a result, companies in this space may see a plateau in revenue, or even slight declines, from the fourth quarter to the first quarter, which would be acceptable as long as revenues sequentially rise throughout the rest of the year.

Pro tip: Stock screeners like Trade Ideas and Stock Rover can help you find companies that meet or exceed most of your requirements for things like revenue growth, earnings per share, and other key metrics.

4. Market Growth

You may be noticing a trend here. The key to growth investing is finding a stock with sustained growth across all metrics, but the stock and the company it represents aren’t the only factors you should be paying attention to.

Growth in the addressable market the company you’re interested in targets is also crucially important to its ability to realize sustained gains in revenue, earnings, and ultimately share price.

If a company is beginning to capture the majority of the market it addresses, it may be going through a growth spurt, but that upward movement won’t be sustainable if the market size remains flat. At some point, the company will have saturated the market and will eventually plateau itself.

So, it’s important to look into market data to determine whether the market in which the company operates is growing at a rate capable of supporting continued upward movement in the stock you’re investing in.

To do so, simply go to your favorite search engine and type “(industry) market size” into the search bar and read through the results. In most cases, several statistics companies have performed detailed analyses of the market, determining the current market size and the size the market is expected to achieve over the next several years.

If the company you’re considering is working within a market that’s plateauing, look into how much of the market the company has already penetrated to determine how much more room is left for upward movement.

5. Free Cash Flow Growth

Money flows in and out of businesses like water. Free cash flow represents the net amount of money that flows into a business once all outflows are taken into consideration. This differs from profitability because free cash flow does not measure non-cash expenses such as depreciation.

It’s important to make sure there’s consistent growth in free cash. This can be seen by looking into the company’s balance sheets over the past four consecutive quarters.

6. A Fair Valuation

Growth stocks are notorious for reaching significant overvaluations after big runs higher, resulting in dramatic declines when investors take profits and move on to the next opportunity. While an average valuation is to be expected, risk levels increase when prices fly too high.

One of the best ways to determine if a stock is undervalued, overvalued, or valued fairly is to look at the price-to-earnings ratio, or P/E ratio. A metric commonly used by investors looking for value stocks, the P/E ratio compares the price of the stock to the earnings per share generated by the company over the course of a year.

Every industry will have its own average ratio. By comparing the ratio of the stock you’re interested in to that of the market in which it operates, you’ll be able to determine if the current value of the stock you’re interested in is fair.

7. A Strong Balance Sheet

This has little to do with growth and more to do with general investing due diligence. Any time you buy a stock, you want to make sure that the underlying company has a strong balance sheet.

The balance sheet will clearly outline the value of the assets the company owns as well as the debt it owes, giving you an idea of whether the company is sitting on a strong financial foundation.

8. Clear Competitive Advantages

In order for a company to maintain an upward trajectory, it has to have clear competitive advantages. For example, compare BlackBerry and Apple when it comes to their activities in the smartphone space.

BlackBerry was a clear pioneer, creating some of the first devices classified as smartphones. Over time, competitors came in, taking market share from the company until “BlackBerry” became “Black-What?”

On the other hand, Apple jumped in with a clear competitive advantage. The company consistently innovated new ways to use smartphones, put together an ecosystem including an app store, music service, and more. Apple continues to improve the experience for users of its smartphones to this day, many of whom refuse to switch to other devices despite there being many choices in the smartphone market. As a result, Apple is touted as one of the best growth stocks on the market today.

9. A Solid Management Team

Like a chain, a company’s team is only as strong as its weakest line, and those weak links are sometimes found in management.

When investing in a company, you’re trusting that company with your money, meaning you’re trusting the company’s management team to make moves that will lead to growth.

Why would you trust a team of people you know nothing about?

Before investing in any stock, you should dig into the management team at the helm of the company. How long have members of the team been with the company, and what have they done since taking on their positions? Where did these team members work before, and did their work with previous companies lead to positive outcomes?

These are questions you should know the answers to before you dive in.

10. Forward-Looking Growth Prospects

Finally, before buying a stock you expect to grow substantially ahead, it’s important to take a look at the company’s growth prospects. What is its story for how it will grow and expand into the future?

For example, Gevo, a company focused on the production of clean fuels, is a hot topic among growth investors at the moment. Investors are excited because the company has signed several agreements that will open the door to expanding revenues in the years ahead. Moreover, the company is working to expand its infrastructure to meet increasing demand. Based on the activities taking place at the company, investors are excited about the expectation of meaningful growth in the value of the stock moving forward.

Any growth stock you invest in should have compelling forward-looking growth prospects, such as a plan to enter a new market, a strategy for making their products or services more widely available, or new products in the pipeline.


Consider Investing in Growth ETFs

Finding and taking advantage of growth opportunities in the market can be a cumbersome process, taking quite a bit of time. If you don’t have the time to dedicate to the process, or the expertise it takes to research each and every investment opportunity before risking your money, you may want to consider investing in exchange-traded funds (ETFs) with a focus on growth strategies instead of picking individual stocks.

Although investing in growth-focused funds will reduce the amount of research required, it’s still important to look into each fund’s historic performance, expense ratio, and dividend yield before diving in.


Final Word

Investing in growth stocks has the potential to be a lucrative business. The potential to produce market-beating returns has made the growth investing strategy one of the most popular among retail and institutional investors alike.

As with any other investing strategy however, research forms the foundation of successful investment decisions. Taking the time to dive in deep and make sure the stocks you invest in display the above characteristics will greatly increase your potential profitability.

Source: moneycrashers.com

30-Year Fixed Mortgage Rate Falls to New Record Low

As of April 28, the rate borrowers were quoted on Zillow for 30-year fixed mortgages was 2.78%.

Abstract illustration of houses and charts

As of April 28, the rate borrowers were quoted on Zillow for 30-year fixed mortgages was 2.78%.

Mortgage rates fall despite strong economic data reports.

“Mortgage rates fell again this week, continuing the downward trend they’ve exhibited for most of April,” said Zillow Economist Matthew Speakman. “In what was a relatively unremarkable week for mortgage rates, the modest movement was partially driven by discussions about a proposed increase in capital gains tax rates – which placed downward pressure on bond yields and thus rates – and anticipation of a key announcement by the Federal Reserve. Fed Chair Jerome Powell reiterated on Wednesday that the Central Bank has no immediate plans to increase interest rates or curb the purchases of mortgage-backed securities – a position that placed more downward pressure on bond yields and is likely to result in more mortgage decreases in the coming days. Looking ahead, with a slew of key economic reports on the horizon – including consumer spending and inflation data – the relatively muted mortgage rate activity from the past couple weeks may transition to more significant movements.”

Additionally, the 15-year fixed mortgage rate was 2.11%, and for 5/1 ARMs, the rate was 2.55%.

Check Zillow for mortgage rate trends and up-to-the-minute mortgage rates for your state, or use the mortgage calculator to calculate monthly payments at the current rates.

The weekly mortgage rate chart above illustrates the average 30-year fixed interest rate for the past week. Here’s a comprehensive look at the current mortgage rates for all loan types:

Today’s Average Rates for Conventional Loans

Program Interest Rate APR 1 Wk Change
30-Year Fixed 2.84% 2.9% -0.05%
20-Year Fixed 2.72% 2.79% -0.04%
15-Year Fixed 2.13% 2.21% -0.03%
10-Year Fixed 2.02% 2.14% -0.12%
7/1 ARM 2.65% 3.25% -0.1%
5/1 ARM 2.49% 3.19% 0.02%
3/1 ARM 0% 0% 0%

A 30-Year Fixed loan of $300,000 at 2.84% APR with a $75,000 down payment will have a monthly payment of $1,239. A 20-Year Fixed loan of $300,000 at 2.72% APR with a $75,000 down payment will have a monthly payment of $1,621. A 15-Year Fixed loan of $300,000 at 2.13% APR with a $75,000 down payment will have a monthly payment of $1,948. A 10-Year Fixed loan of $300,000 at 2.02% APR with a $75,000 down payment will have a monthly payment of $2,762. A 7/1 ARM loan of $300,000 at 2.65% APR with a $75,000 down payment will have a monthly payment of $1,208. A 5/1 ARM loan of $300,000 at 2.49% APR with a $75,000 down payment will have a monthly payment of $1,183. A 3/1 ARM loan of $0 at 0% APR with a $0 down payment will have a monthly payment of $0. All monthly payments displayed assume a maximum Loan to Value (LTV) of 80% and 740 credit score, and do not include amount for taxes and insurance. The actual monthly payment may be greater.

Today’s Average Rates for Government Loans

Program Interest Rate APR 1 Wk Change
30-Year Fixed FHA 2.33% 2.99% 0.53%
30-Year Fixed VA 2.6% 2.89% -0.21%
15-Year Fixed FHA 2.06% 2.84% -0.06%
15-Year Fixed VA 2.62% 3.13% 0%
5/1 ARM FHA 2.69% 3% -0.14%
5/1 ARM VA 2.35% 2.45% 0.09%

A 30-Year Fixed FHA loan of $300,000 at 2.33% APR with a $75,000 down payment will have a monthly payment of $1,158. A 30-Year Fixed VA loan of $300,000 at 2.6% APR with a $75,000 down payment will have a monthly payment of $1,200. A 15-Year Fixed FHA loan of $300,000 at 2.06% APR with a $75,000 down payment will have a monthly payment of $1,939. A 15-Year Fixed VA loan of $300,000 at 2.62% APR with a $75,000 down payment will have a monthly payment of $2,017. A 5/1 ARM FHA loan of $300,000 at 2.69% APR with a $75,000 down payment will have a monthly payment of $1,214. A 5/1 ARM VA loan of $300,000 at 2.35% APR with a $75,000 down payment will have a monthly payment of $1,162. All monthly payments displayed assume a maximum Loan to Value (LTV) of 80% and 740 credit score, and do not include amount for taxes and insurance. The actual monthly payment may be greater.

Today’s Average Rates for Jumbo Loans

Program Interest Rate APR 1 Wk Change
30-Year Fixed Jumbo 3.27% 3.32% -0.03%
20-Year Fixed Jumbo 3.71% 3.76% -0.3%
15-Year Fixed Jumbo 2.86% 2.94% -0.06%
10-Year Fixed Jumbo 2.63% 2.7% 0%
7/1 ARM Jumbo 2.59% 2.81% 0.04%
5/1 ARM Jumbo 2.39% 2.73% 0.19%
3/1 ARM Jumbo 2.14% 2.74% 0%

A 30-Year Fixed Jumbo loan of $600,000 at 3.27% APR with a $150,000 down payment will have a monthly payment of $2,618. A 20-Year Fixed Jumbo loan of $600,000 at 3.71% APR with a $150,000 down payment will have a monthly payment of $3,545. A 15-Year Fixed Jumbo loan of $600,000 at 2.86% APR with a $150,000 down payment will have a monthly payment of $4,101. A 10-Year Fixed Jumbo loan of $600,000 at 2.63% APR with a $150,000 down payment will have a monthly payment of $5,690. A 7/1 ARM Jumbo loan of $600,000 at 2.59% APR with a $150,000 down payment will have a monthly payment of $2,400. A 5/1 ARM Jumbo loan of $600,000 at 2.39% APR with a $150,000 down payment will have a monthly payment of $2,336. A 3/1 ARM Jumbo loan of $600,000 at 2.14% APR with a $150,000 down payment will have a monthly payment of $2,259. All monthly payments displayed assume a maximum Loan to Value (LTV) of 80% and 740 credit score, and do not include amount for taxes and insurance. The actual monthly payment may be greater.

Source: zillow.com

The Benefits of Working Longer

Financial planners and analysts have long advised workers who haven’t saved enough for retirement to work longer. But even if you’ve done everything right—saved the maximum in your retirement plans, lived within your means and stayed out of debt—working a few extra years, even at a reduced salary, could make an enormous difference in the quality of your life in your later years. And given the potential payoff, it’s worth starting to think about how long you plan to continue working—and what you’d like to do—even if you’re a decade or more away from traditional retirement age.

Larry Shagawat, 63, is thinking about retiring from his full-time job, but he’s not ready to stop working. Fortunately, he has a few tricks up his sleeve. Shagawat, who lives in Clifton, N.J., began his career as an actor and a magician. But marriage (to his former magician’s assistant), two children and a mortgage demanded income that was more consistent than the checks he earned as an extra on Law & Order, so he landed a job selling architectural and design products. The position provided his family with a comfortable living.

Now, though, Shagawat is con­sidering stepping back from his high-pressure job so he can pursue roles as a character actor (he’s still a member of the Screen Actors Guild) and perform magic tricks at corporate events. He also has a side gig selling golf products, including a golf cart cigar holder and a vanishing golf ball magic trick, through his website, golfworldnow.com. “I’ll be busier in retirement than I am in my current career,” he says.

Shagawat’s second career offers an opportunity for him to return to his first love, but he’s also motivated by a powerful financial incentive. His brother, Jim Shagawat, a certified financial planner with AdvicePeriod in Paramus, N.J., estimates that if Larry earns just $25,000 a year over the next decade, he’ll increase his retirement savings by $750,000, assuming a 5% annual withdrawal rate and an average 7% annual return on his investments.

Do the math

For every additional year (or even month) you work, you’ll shrink the amount of time in retirement you’ll need to finance with your savings. Meanwhile, you’ll be able to continue to contribute to your nest egg (see below) while giving that money more time to grow. In addition, working longer will allow you to postpone filing for Social Security benefits, which will increase the amount of your payouts.

For every year past your full retirement age (between 66 and 67 for most baby boomers) that you postpone retiring, Social Security will add 8% in delayed-retirement credits, until you reach age 70. Even if you think you won’t live long enough to benefit from the higher payouts, delaying your benefits could provide larger survivor benefits for your spouse. If you file for Social Security at age 70, your spouse’s survivor benefits will be 60% greater than if you file at age 62, according to the Center for Retirement Research at Boston College.

Liz Windisch, a CFP with Aspen Wealth Management in Denver, says working longer is particularly critical for women, who tend to earn less than men over their lifetimes but live longer. The average woman retires at age 63, compared with 65 for the average man, according to the Center for Retirement Research. That may be because many women are younger than their husbands and are encouraged to retire when their husbands stop working. But a woman who retires early could find herself in financial jeopardy if she outlives her husband, because the household’s Social Security benefits will be reduced—and she could lose her husband’s pension income, too, says Andy Baxley, a CFP with The Planning Center in Chicago.

Calculate the cost of health care

Many retirees believe, sometimes erroneously, that they’ll spend less when they stop working. But even if you succeed in cutting costs, health care expenses can throw you a costly curve. Working longer is one way to prevent those costs from decimating your nest egg.

Employer-provided health insurance is almost always less expensive than anything you can buy on your own, and if you’re 65 or older, it may also be cheaper than Medicare. If you work full-time for a company with 20 or more employees, the company is required to offer you the same health insurance provided to all employees, even if you’re older than 65 and eligible for Medicare. Delaying Medicare Part B, which covers doctor and outpatient services, while you’re enrolled in an employer-provided plan can save you a lot of money, particularly if you’re vulnerable to the Medicare high-income surcharge, says Kari Vogt, a CFP and Medicare insurance broker in Columbia, Mo. In 2021, the standard premium for Medicare Part B is $148.50, but seniors subject to the high-income Medicare surcharge will pay $208 to $505 for Medicare Part B, depending on their 2019 modified adjusted gross income. Medicare Part A, which covers hospitalization, generally doesn’t cost anything and can pay for costs that aren’t covered by your company-provided plan.

Vogt recalls working with an older couple whose premiums for an employer-provided plan were just $142 a month, and the deductible was fairly modest. Because of their income levels, they would have paid $1,150 per month for Medicare premiums, a Medicare supplement plan and a prescription drug plan, she says. With that in mind, they decided to stay on the job a few more years.

The math gets trickier if your employer’s plan has a high deductible. But even then, Vogt says, by staying on an employer plan, older workers with high ongoing drug costs could end up paying less than they’d pay for Medicare Part D. “If someone is taking several brand-name drugs, an employer plan is going to cover those drugs at a much better price than Medicare.”

Even if you don’t qualify for group coverage—you’re a part-timer, freelancer or a contract worker, for example—the additional income will help defray the cost of Medicare premiums and other expenses Medicare doesn’t cover. The Fidelity Investments annual Retiree Health Care Cost Estimate projects that the average 65-year-old couple will spend $295,000 on health care costs in retirement.

Long-term care is another threat to your retirement security, even if you have a well-funded nest egg. In 2020, the median cost of a semiprivate room in a nursing home was more than $8,800 a month, according to long-term-care provider Genworth’s annual survey.

If you’re in your fifties or sixties and in good health, it’s difficult to predict whether you’ll need long-term care, but earmarking some of your income from a job for long-term-care insurance or a fund designated for long-term care will give you peace of mind, Baxley says.

And working longer could not only help cover the cost of long-term care but also reduce the risk that you’ll need it in the first place. A long-term study of civil servants in the United Kingdom found that verbal memory, which declines naturally with age, deteriorated 38% faster after individuals retired. Other research suggests that people who continue to work are less likely to experience social isolation, which can contribute to cognitive decline. Research by the Age Friendly Foundation and RetirementJobs.com, a website for job seekers 50 and older, found that more than 60% of older adults surveyed who were still working interacted with at least 10 different people every day, while only 15% of retirees said they spoke to that many people on a daily basis (the study was conducted before the pandemic). Even unpleasant colleagues and a bad boss “are better than social isolation because they provide cognitive challenges that keep the mind active and healthy,” economists Axel Börsch-Supan and Morten Schuth contended in a 2014 article for the National Bureau of Economic Research.

A changing workforce

Many job seekers in their fifties or sixties worry about age discrimination—and the pandemic has exacerbated those concerns. A recent AARP survey found that 61% of older workers who fear losing their job this year believe age is a contributing factor.  But that could change as the economy recovers, and trends that emerged during the pandemic could end up benefiting older workers, says Tim Driver, founder of RetirementJobs.com. Some companies plan to allow employees to work remotely indefinitely, a shift that could make staying on the job more attractive for older workers—and make employers more amenable to accommodating their desire for more flexibility. “People who are working longer already wanted to work from home, and this has helped them do that more easily,” Driver says. To make that work, though, older workers need to stay on top of technology, which means they need to be comfortable using Zoom, LinkedIn and other online platforms, he says.  

More-flexible arrangements—including remote work—could also benefit older adults who want to continue to earn income but don’t want to work 50 hours a week. Baxley says some of his clients have gradually reduced their hours, from four days a week while they’re in their fifties to three or two days a week as they reach their sixties and seventies.

That assumes, of course, that your employer doesn’t lay you off or waltz you out the door with a buyout offer you don’t think you can refuse. But even then, you don’t necessarily have to stop working. The gig economy offers opportunities for older workers, and you don’t have to drive for Uber to take advantage of this emerging trend. There are numerous companies that will hire professionals in law, accounting, technology and other fields as consultants, says Kathy Kristof, a former Kiplinger columnist and founder of SideHusl.com, a website that reviews and rates online job platforms. Examples include FlexProfessionals, which finds part-time jobs for accountants, sales representatives and others for $25 to $40 an hour, and Wahve, which finds remote jobs for experienced workers in accounting, insurance and human resources (pay varies by experience).

Job seekers in their fifties (or even younger) who want to work into their sixties or later may want to consider an employer’s track record of hiring and retaining older workers when comparing job offers. Companies designated as Certified Age Friendly Employers by the Age Friendly Foundation have been steadily increasing and range from Home Depot to the Boston Red Sox. Driver says age-friendly employers are motivated by a desire for a more diverse workforce—which includes workers of all ages—and the realization that older workers are less likely to leave. Contrary to the assumption that older workers have one foot out the door toward retirement, their turnover rate is one-third of that for younger workers, Driver says.

At the Aquarium of the Pacific, an age-friendly employer based in Long Beach, Calif., employees older than 60 work in a variety of jobs, from guest service ambassadors to positions in the aquarium’s retail operations, says Kathie Nirschl, vice president of human resources (who, at 59, has no plans to retire anytime soon). Many of the aquarium’s visitors are seniors, and having older workers on staff helps the organization connect with them, Nirschl says.

John Rouse, 61, is the aquarium’s vice president of operations, a job that involves everything from facility maintenance to animal husbandry. He estimates that he walks between 12,000 and 13,000 steps a day to monitor the aquarium’s operations.

Rouse says he had originally planned to retire in his early sixties, but he has since revised those plans and now hopes to work until at least 68. He has a daughter in college, which is expensive, and he would like to delay filing for Social Security. Plus, he enjoys spending time at the aquarium with the fish, animals and coworkers. “It’s a great team atmosphere,” he says. “It has kept me young.”

New rules help seniors save

If you’re planning to keep working into your seventies—which is no longer unusual—provisions in the 2019 Setting Every Community Up for Retirement Enhancement (SECURE) Act will make it easier to increase the size of your retirement savings or shield what you’ve saved from taxes.

Among other things, the law eliminated age limits on contributions to an IRA. Previously, you couldn’t contribute to a traditional IRA after age 70½. Now, if you have earned income, you can contribute to a traditional IRA at any age and, if you’re eligible, deduct those contributions. (Roth IRAs, which may be preferable for some savers because qualified withdrawals are tax-free, have never had an age cut-off as long as the contributor has earned income.)

The law also allows part-time workers to contribute to their employer’s 401(k) or other employer-provided retirement plan, which will benefit older workers who want to stay on the job but cut back their hours. The SECURE Act guarantees that workers can contribute to their employer’s 401(k) plan, as long as they’ve worked at least 500 hours a year for the past three years. Previously, employees who had worked less than 1,000 hours the year before were ineligible to participate in their employer’s 401(k) plan.

Delayed RMDs. If you have money in traditional IRAs or other tax-deferred accounts, you can’t leave it there forever. The IRS requires that you take minimum distributions and pay taxes on the money. If you’re still working, that income, combined with required minimum distributions, could push you into a higher tax bracket.

Congress waived RMDs in 2020, but that’s unlikely to happen again this year. Thanks to the SECURE Act, however, you don’t have to start taking them until you’re 72, up from the previous age of 70½. Keep in mind that if you’re still working at age 72, you’re not required to take RMDs from your current employer’s 401(k) plan until you stop working (unless you own at least 5% of the company).

One other note: If you work for yourself, whether as a self-employed business owner, freelancer or contractor, you can significantly increase the size of your savings stash. In 2021, you can contribute up to $58,000 to a solo 401(k), or $64,500 if you’re 50 or older. The actual amount you can contribute will be determined by your self-employment income.

chart that shows payoff from putting off retirement for a few yearschart that shows payoff from putting off retirement for a few years

Source: kiplinger.com

The Benefits of Working Longer

Financial planners and analysts have long advised workers who haven’t saved enough for retirement to work longer. But even if you’ve done everything right—saved the maximum in your retirement plans, lived within your means and stayed out of debt—working a few extra years, even at a reduced salary, could make an enormous difference in the quality of your life in your later years. And given the potential payoff, it’s worth starting to think about how long you plan to continue working—and what you’d like to do—even if you’re a decade or more away from traditional retirement age.

Larry Shagawat, 63, is thinking about retiring from his full-time job, but he’s not ready to stop working. Fortunately, he has a few tricks up his sleeve. Shagawat, who lives in Clifton, N.J., began his career as an actor and a magician. But marriage (to his former magician’s assistant), two children and a mortgage demanded income that was more consistent than the checks he earned as an extra on Law & Order, so he landed a job selling architectural and design products. The position provided his family with a comfortable living.

Now, though, Shagawat is con­sidering stepping back from his high-pressure job so he can pursue roles as a character actor (he’s still a member of the Screen Actors Guild) and perform magic tricks at corporate events. He also has a side gig selling golf products, including a golf cart cigar holder and a vanishing golf ball magic trick, through his website, golfworldnow.com. “I’ll be busier in retirement than I am in my current career,” he says.

Shagawat’s second career offers an opportunity for him to return to his first love, but he’s also motivated by a powerful financial incentive. His brother, Jim Shagawat, a certified financial planner with AdvicePeriod in Paramus, N.J., estimates that if Larry earns just $25,000 a year over the next decade, he’ll increase his retirement savings by $750,000, assuming a 5% annual withdrawal rate and an average 7% annual return on his investments.

Do the math

For every additional year (or even month) you work, you’ll shrink the amount of time in retirement you’ll need to finance with your savings. Meanwhile, you’ll be able to continue to contribute to your nest egg (see below) while giving that money more time to grow. In addition, working longer will allow you to postpone filing for Social Security benefits, which will increase the amount of your payouts.

For every year past your full retirement age (between 66 and 67 for most baby boomers) that you postpone retiring, Social Security will add 8% in delayed-retirement credits, until you reach age 70. Even if you think you won’t live long enough to benefit from the higher payouts, delaying your benefits could provide larger survivor benefits for your spouse. If you file for Social Security at age 70, your spouse’s survivor benefits will be 60% greater than if you file at age 62, according to the Center for Retirement Research at Boston College.

Liz Windisch, a CFP with Aspen Wealth Management in Denver, says working longer is particularly critical for women, who tend to earn less than men over their lifetimes but live longer. The average woman retires at age 63, compared with 65 for the average man, according to the Center for Retirement Research. That may be because many women are younger than their husbands and are encouraged to retire when their husbands stop working. But a woman who retires early could find herself in financial jeopardy if she outlives her husband, because the household’s Social Security benefits will be reduced—and she could lose her husband’s pension income, too, says Andy Baxley, a CFP with The Planning Center in Chicago.

Calculate the cost of health care

Many retirees believe, sometimes erroneously, that they’ll spend less when they stop working. But even if you succeed in cutting costs, health care expenses can throw you a costly curve. Working longer is one way to prevent those costs from decimating your nest egg.

Employer-provided health insurance is almost always less expensive than anything you can buy on your own, and if you’re 65 or older, it may also be cheaper than Medicare. If you work full-time for a company with 20 or more employees, the company is required to offer you the same health insurance provided to all employees, even if you’re older than 65 and eligible for Medicare. Delaying Medicare Part B, which covers doctor and outpatient services, while you’re enrolled in an employer-provided plan can save you a lot of money, particularly if you’re vulnerable to the Medicare high-income surcharge, says Kari Vogt, a CFP and Medicare insurance broker in Columbia, Mo. In 2021, the standard premium for Medicare Part B is $148.50, but seniors subject to the high-income Medicare surcharge will pay $208 to $505 for Medicare Part B, depending on their 2019 modified adjusted gross income. Medicare Part A, which covers hospitalization, generally doesn’t cost anything and can pay for costs that aren’t covered by your company-provided plan.

Vogt recalls working with an older couple whose premiums for an employer-provided plan were just $142 a month, and the deductible was fairly modest. Because of their income levels, they would have paid $1,150 per month for Medicare premiums, a Medicare supplement plan and a prescription drug plan, she says. With that in mind, they decided to stay on the job a few more years.

The math gets trickier if your employer’s plan has a high deductible. But even then, Vogt says, by staying on an employer plan, older workers with high ongoing drug costs could end up paying less than they’d pay for Medicare Part D. “If someone is taking several brand-name drugs, an employer plan is going to cover those drugs at a much better price than Medicare.”

Even if you don’t qualify for group coverage—you’re a part-timer, freelancer or a contract worker, for example—the additional income will help defray the cost of Medicare premiums and other expenses Medicare doesn’t cover. The Fidelity Investments annual Retiree Health Care Cost Estimate projects that the average 65-year-old couple will spend $295,000 on health care costs in retirement.

Long-term care is another threat to your retirement security, even if you have a well-funded nest egg. In 2020, the median cost of a semiprivate room in a nursing home was more than $8,800 a month, according to long-term-care provider Genworth’s annual survey.

If you’re in your fifties or sixties and in good health, it’s difficult to predict whether you’ll need long-term care, but earmarking some of your income from a job for long-term-care insurance or a fund designated for long-term care will give you peace of mind, Baxley says.

And working longer could not only help cover the cost of long-term care but also reduce the risk that you’ll need it in the first place. A long-term study of civil servants in the United Kingdom found that verbal memory, which declines naturally with age, deteriorated 38% faster after individuals retired. Other research suggests that people who continue to work are less likely to experience social isolation, which can contribute to cognitive decline. Research by the Age Friendly Foundation and RetirementJobs.com, a website for job seekers 50 and older, found that more than 60% of older adults surveyed who were still working interacted with at least 10 different people every day, while only 15% of retirees said they spoke to that many people on a daily basis (the study was conducted before the pandemic). Even unpleasant colleagues and a bad boss “are better than social isolation because they provide cognitive challenges that keep the mind active and healthy,” economists Axel Börsch-Supan and Morten Schuth contended in a 2014 article for the National Bureau of Economic Research.

A changing workforce

Many job seekers in their fifties or sixties worry about age discrimination—and the pandemic has exacerbated those concerns. A recent AARP survey found that 61% of older workers who fear losing their job this year believe age is a contributing factor.  But that could change as the economy recovers, and trends that emerged during the pandemic could end up benefiting older workers, says Tim Driver, founder of RetirementJobs.com. Some companies plan to allow employees to work remotely indefinitely, a shift that could make staying on the job more attractive for older workers—and make employers more amenable to accommodating their desire for more flexibility. “People who are working longer already wanted to work from home, and this has helped them do that more easily,” Driver says. To make that work, though, older workers need to stay on top of technology, which means they need to be comfortable using Zoom, LinkedIn and other online platforms, he says.  

More-flexible arrangements—including remote work—could also benefit older adults who want to continue to earn income but don’t want to work 50 hours a week. Baxley says some of his clients have gradually reduced their hours, from four days a week while they’re in their fifties to three or two days a week as they reach their sixties and seventies.

That assumes, of course, that your employer doesn’t lay you off or waltz you out the door with a buyout offer you don’t think you can refuse. But even then, you don’t necessarily have to stop working. The gig economy offers opportunities for older workers, and you don’t have to drive for Uber to take advantage of this emerging trend. There are numerous companies that will hire professionals in law, accounting, technology and other fields as consultants, says Kathy Kristof, a former Kiplinger columnist and founder of SideHusl.com, a website that reviews and rates online job platforms. Examples include FlexProfessionals, which finds part-time jobs for accountants, sales representatives and others for $25 to $40 an hour, and Wahve, which finds remote jobs for experienced workers in accounting, insurance and human resources (pay varies by experience).

Job seekers in their fifties (or even younger) who want to work into their sixties or later may want to consider an employer’s track record of hiring and retaining older workers when comparing job offers. Companies designated as Certified Age Friendly Employers by the Age Friendly Foundation have been steadily increasing and range from Home Depot to the Boston Red Sox. Driver says age-friendly employers are motivated by a desire for a more diverse workforce—which includes workers of all ages—and the realization that older workers are less likely to leave. Contrary to the assumption that older workers have one foot out the door toward retirement, their turnover rate is one-third of that for younger workers, Driver says.

At the Aquarium of the Pacific, an age-friendly employer based in Long Beach, Calif., employees older than 60 work in a variety of jobs, from guest service ambassadors to positions in the aquarium’s retail operations, says Kathie Nirschl, vice president of human resources (who, at 59, has no plans to retire anytime soon). Many of the aquarium’s visitors are seniors, and having older workers on staff helps the organization connect with them, Nirschl says.

John Rouse, 61, is the aquarium’s vice president of operations, a job that involves everything from facility maintenance to animal husbandry. He estimates that he walks between 12,000 and 13,000 steps a day to monitor the aquarium’s operations.

Rouse says he had originally planned to retire in his early sixties, but he has since revised those plans and now hopes to work until at least 68. He has a daughter in college, which is expensive, and he would like to delay filing for Social Security. Plus, he enjoys spending time at the aquarium with the fish, animals and coworkers. “It’s a great team atmosphere,” he says. “It has kept me young.”

New rules help seniors save

If you’re planning to keep working into your seventies—which is no longer unusual—provisions in the 2019 Setting Every Community Up for Retirement Enhancement (SECURE) Act will make it easier to increase the size of your retirement savings or shield what you’ve saved from taxes.

Among other things, the law eliminated age limits on contributions to an IRA. Previously, you couldn’t contribute to a traditional IRA after age 70½. Now, if you have earned income, you can contribute to a traditional IRA at any age and, if you’re eligible, deduct those contributions. (Roth IRAs, which may be preferable for some savers because qualified withdrawals are tax-free, have never had an age cut-off as long as the contributor has earned income.)

The law also allows part-time workers to contribute to their employer’s 401(k) or other employer-provided retirement plan, which will benefit older workers who want to stay on the job but cut back their hours. The SECURE Act guarantees that workers can contribute to their employer’s 401(k) plan, as long as they’ve worked at least 500 hours a year for the past three years. Previously, employees who had worked less than 1,000 hours the year before were ineligible to participate in their employer’s 401(k) plan.

Delayed RMDs. If you have money in traditional IRAs or other tax-deferred accounts, you can’t leave it there forever. The IRS requires that you take minimum distributions and pay taxes on the money. If you’re still working, that income, combined with required minimum distributions, could push you into a higher tax bracket.

Congress waived RMDs in 2020, but that’s unlikely to happen again this year. Thanks to the SECURE Act, however, you don’t have to start taking them until you’re 72, up from the previous age of 70½. Keep in mind that if you’re still working at age 72, you’re not required to take RMDs from your current employer’s 401(k) plan until you stop working (unless you own at least 5% of the company).

One other note: If you work for yourself, whether as a self-employed business owner, freelancer or contractor, you can significantly increase the size of your savings stash. In 2021, you can contribute up to $58,000 to a solo 401(k), or $64,500 if you’re 50 or older. The actual amount you can contribute will be determined by your self-employment income.

chart that shows payoff from putting off retirement for a few yearschart that shows payoff from putting off retirement for a few years

Source: kiplinger.com

Understanding Pivot Points for New Investors

Pivot points are a tool that traders use to determine price levels of technical significance on intraday charts. A pivot point can help to identify a potential price reversal, which traders can then use (often in tandem with other technical indicators) as a cue to buy or sell.

When used alongside other common technical indicators, identifying pivot points can be part of an effective trading strategy. Pivot points are regarded as being important indicators for day traders.

What is a Pivot Point?

Pivot points are predictive indicators that average the high, low, and closing price from the previous period to define future support levels. These pivot points can help inform a decision to buy or sell.

The main pivot point is considered to be of the utmost importance. This point indicates the price at which bullish and bearish forces tend to flip to one side or the other (i.e., the price where sentiment tends to pivot from). When prices rise above the pivot point, this could be considered bullish, while prices falling beneath the pivot point could be considered bearish.

Brief History of Pivot Points

Pivot points got their start back when traders gathered on the floor of stock exchanges. Calculating a pivot point using yesterday’s data gave these traders a price level to watch for throughout the day. Pivot point calculations are considered leading indicators.

Today, pivot points are used by traders around the world, particularly in the forex and equity markets.

Different Types of Pivot Points

There are several different kinds of pivot points in addition to the standard ones. The variations make some changes or additions to the basic pivot point calculations to bring additional insight to the price action.

Standard Pivot Points

These are the most basic pivot points. They begin with a base pivot point, which is the average of the high, low, and closing prices from a previous trading period.

Fibonacci Pivot Points

Fibonacci projections, named after a mathematical sequence found in nature, connect any two points a trader might see as important. The percentage levels that follow are potential areas of a trend change. Most commonly, these percentage levels are 23.6%, 38.2%, 50%, 61.8%, and 78.6%. It’s thought that when an asset falls to one of these levels, the price might stall or reverse.

Many traders love using Fibonacci projection levels in some form or another. These work well in conjunction with pivot points because both aim to identify levels of support and resistance.

Woodie’s Pivot Point

The Woodie’s pivot point places a greater emphasis on the closing price of a security. The calculation only varies slightly from the standard formula for pivot points.

Demark Pivot Points

Demark points create a different relationship between the open and close price points, using the number X to calculate support and resistance, and also emphasizes recent price action. This pivot point was introduced by a trader named Tom Demark.

How Do I Read Pivot Points?

A trader might read a pivot point as they would any other level of support or resistance. Traders generally believe that when prices break out beyond a support or resistance level, there’s a good chance that the trend will continue for some length of time.

•  When prices fall beneath support, this could indicate bearish sentiment, and the decline could continue.
•  When prices rise above resistance, this could indicate bullish sentiment, and the rise could continue.
•  Pivot points can also be used to draw trend lines in attempts to recognize bigger technical patterns.

What Are the Resistance and Support Levels in Pivot Points?

The numbers R1, R2, R3 and S1, S2, S3 refer to the resistance (R) and support (S) levels used to calculate pivot points. These six numbers combined with the basic pivot point level (PP) provide the seven metrics needed to determine pivot points.

Resistance 1 (R1): The first pivot level above the PP.
Resistance 2 (R2): The first pivot level above R1, or the second pivot level above the PP.
Resistance 3 (R3): The first pivot level above R2, or the third pivot level above the PP.
Support 1 (S1): The first pivot level below the PP.
Support 2 (S2): The first pivot level below the PP, or the second below S1.
Support 3 (S3): The first pivot level below the PP, or the third below S2.

Which Pivot Points Are Best for Intraday?

Because technical analysis has a large subjective component to it, traders will likely have their own interpretations of which pivot points are most important for intraday trading.

While some traders are fond of Fibonacci pivot points, others may prefer different points.

There are communities online, like TradingView, where traders gather to discuss ideas like these.

Pivot Points Calculations

The PP is vital for the pivot point formula as a whole. It’s important to exercise caution when calculating the PP level, because if this calculation is done incorrectly, the other levels will not be accurate.
The formula for calculating the PP is:

Pivot Point (PP) = (Daily high + daily low + close) divided by 3

To make the calculations for pivot points, a chart from the previous trading day will be needed. This is where the values for the daily low, daily high, and closing prices are obtained. The resulting calculations are only relevant for the current day.

All the formulas for R1-R3 and S1-S3 include the basic pivot level (PP) value. Once the PP has been calculated, you can move on to calculating R1, R2, S1 and S2:

R1 = (PP x 2) – daily low
R2 = PP + (daily high – daily low)
S1 = (PP x 2) – daily high
S2 = PP – (daily high – daily low)

At this point, there are only two more levels to calculate, those of R3 and S3.

R3 = Daily high + 2x (PP – daily low)
S3 = Daily low – 2x (daily high – PP)

How Are Weekly Pivot Points Calculated?

While pivot points are most commonly used for intraday charts, the same thing could be accomplished for a weekly time frame by instead using a weekly chart from the previous week as the basis for calculations that would apply to the current week.

The Takeaway

The pivot point indicator is best used with other indicators on short, intraday time frames. This indicator is thought to provide a good guess as to where prices could “pivot” in one direction or another.

Different types of pivot points are preferred by different traders, and they all can potentially be incorporated into a successful trading plan.

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