Array Digital Infrastructure declares special dividend of $23.00 per share
Elevate Your Investing Strategy:
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Take this simple step as you approach retirement
While most retirement portfolios include allocations to stocks and bonds in the years leading up to retirement, most retirement savers don't hold much more than an emergency cushion in cash. Thus, an important job in the years before retirement is building up that cash cushion. The good news is that cash yields are up, meaning cash holdings aren't the 'dead money' they were a few years ago. And equity investments have performed well, too—at least until very recently. That means that most investors can build their cash stakes, at least in part, by pruning appreciated holdings. Here's some guidance on the amount, source, and location of those liquid reserves, according to the Bucket approach to retirement portfolio planning. Rightsizing Bucket 1 Your cash bucket should consist of one to two years' worth of portfolio withdrawals, not living expenses. In order to set up Bucket 1 initially, think through your cash flow sources for the first few years of retirement. For example, let's say a 66-year-old wants to retire in two years and expects that he'll need to spend $80,000 per year, in total, from his $1.5 million portfolio, at that time. He wants to delay filing for Social Security until age 70, so all of his spending will come from his portfolio in those first few years of retirement. After that, roughly half his spending needs will come from Social Security. If he wanted to be conservative, he could build a cash cushion consisting of $160,000—his years 1 and 2 portfolio withdrawals. His Bucket 2—high-quality bonds—would consist of eight years' worth of portfolio withdrawals, which at that point will be $40,000 per year. The remaining $1 million and change could go into a globally diversified equity portfolio. Where to put the money? It's also worth considering the 'where' of your liquid reserves. To do so, consider your sequence of withdrawals in retirement. Taxable accounts are often first in the queue for retirement withdrawals because their ongoing tax costs are higher than tax-sheltered accounts. But some retirees may benefit from spending from their tax-deferred accounts early in retirement, with an eye toward reducing future required minimum distributions and tax bills. This is a good spot to get some advice from a financial or tax advisor. Armed with the knowledge of where you'll turn for your spending in the first part of your retirement, you can then figure out where best to hold your liquid reserves. Where to get the money? The next step is figuring out how to build up this reserve. Ideally, you'd give yourself a couple of years to enlarge your cash position rather than having to find the money just before retirement. For preretirees who are still saving for retirement, start by directing new contributions into cash. Say, for example, the aforementioned retiree is directing a couple years' worth of IRA and 401(k)contributions to cash. He could arrive at nearly half his target cash allocation by the time he reaches his retirement. There's also potential bonuses and inheritances. If you've recently received a surprise cash injection, the assets are a logical source for bulking up cash reserves. Another solid option is to build up cash by peeling back on highly appreciated asset classes, especially US stocks. Trimming equities and adding those assets to cash and bonds reduces risk and helps cover cash flows for the first few years of retirement. Finally, you can reduce risky positions. Consider the employer stock you know you should scale back on or the individual-stock portfolio that's duplicative of what's in your mutual funds. Such holdings can be ideal sources when building up your cash reserves, but mind the tax consequences if you're selling them from a taxable account. ___ This article was provided to The Associated Press by Morningstar. For more personal finance content, go to Christine Benz is director of personal finance for Morningstar. 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
Fast Company
10 hours ago
- Fast Company
Is retirement approaching? Use these expert tips to build up your cash cushion
While most retirement portfolios include allocations to stocks and bonds in the years leading up to retirement, most retirement savers don't hold much more than an emergency cushion in cash. Thus, an important job in the years before retirement is building up that cash cushion. The good news is that cash yields are up, meaning cash holdings aren't the 'dead money' they were a few years ago. And equity investments have performed well, too—at least until very recently. That means that most investors can build their cash stakes, at least in part, by pruning appreciated holdings. Here's some guidance on the amount, source, and location of those liquid reserves, according to the Bucket approach to retirement portfolio planning. Rightsizing Bucket 1 Your cash bucket should consist of one to two years' worth of portfolio withdrawals, not living expenses. In order to set up Bucket 1 initially, think through your cash flow sources for the first few years of retirement. For example, let's say a 66-year-old wants to retire in two years and expects that he'll need to spend $80,000 per year, in total, from his $1.5 million portfolio, at that time. He wants to delay filing for Social Security until age 70, so all of his spending will come from his portfolio in those first few years of retirement. After that, roughly half his spending needs will come from Social Security. If he wanted to be conservative, he could build a cash cushion consisting of $160,000—his years 1 and 2 portfolio withdrawals. His Bucket 2—high-quality bonds—would consist of eight years' worth of portfolio withdrawals, which at that point will be $40,000 per year. The remaining $1 million and change could go into a globally diversified equity portfolio. Where to put the money? It's also worth considering the 'where' of your liquid reserves. To do so, consider your sequence of withdrawals in retirement. Taxable accounts are often first in the queue for retirement withdrawals because their ongoing tax costs are higher than tax-sheltered accounts. But some retirees may benefit from spending from their tax-deferred accounts early in retirement, with an eye toward reducing future required minimum distributions and tax bills. This is a good spot to get some advice from a financial or tax advisor. Armed with the knowledge of where you'll turn for your spending in the first part of your retirement, you can then figure out where best to hold your liquid reserves. Where to get the money? The next step is figuring out how to build up this reserve. Ideally, you'd give yourself a couple of years to enlarge your cash position rather than having to find the money just before retirement. For preretirees who are still saving for retirement, start by directing new contributions into cash. Say, for example, the aforementioned retiree is directing a couple years' worth of IRA and 401(k)contributions to cash. He could arrive at nearly half his target cash allocation by the time he reaches his retirement. There's also potential bonuses and inheritances. If you've recently received a surprise cash injection, the assets are a logical source for bulking up cash reserves. Another solid option is to build up cash by peeling back on highly appreciated asset classes, especially US stocks. Trimming equities and adding those assets to cash and bonds reduces risk and helps cover cash flows for the first few years of retirement. Finally, you can reduce risky positions. Consider the employer stock you know you should scale back on or the individual-stock portfolio that's duplicative of what's in your mutual funds. Such holdings can be ideal sources when building up your cash reserves, but mind the tax consequences if you're selling them from a taxable account.
Miami Herald
12 hours ago
- Miami Herald
Stock Market Today: Algorithms Are Not Efficient
I began my career not in journalism but on the New York Stock Exchange. Technically, I wasn't on the floor, but I worked 16 stories above it, trading through a network of brokers who were on the floor. I was there in trading activity, if not in body. It probably shows in my writing. Back in those days some 1,300 traders plus support staff made up the crowds where stocks were traded and prices were discovered. It was a loud and active place, where price efficiency ruled. Today, the NYSE floor is an empty place. Market makers still work there, but price discovery happens largely through computers. This is what the floor looks like today: Jason Meshnick In today's Market Recon piece over on TheStreet Pro, Stephen "Sarge" Guilfoyle discusses the trading action from Friday and Monday, and tells us that both Friday and Monday were overshoots from where the market should have traded. He says: "On Monday, U.S. equity markets absolutely roared back from a harsh selloff on Friday. On Friday, the algorithms that run price discovery in 2025 sold stocks en masse because of a recessionary looking labor report that was really three consecutive recessionary-looking labor reports at once. On Monday, those same algorithms bought the market hand over fist because now the Fed will likely have to cut short-term interest rates in six weeks." He goes on to say that this game of "Chutes and Ladders" is occurring because we've removed humans from the art of price discovery and replaced them with algorithms. While the market is much cheaper to run (spreads are down), markets are less efficient. In other words, day-to-day volatility might be lower, but reaction to news is much harsher. I couldn't agree more. Sarge also tells us that Wall Street strategists have turned bearish. They see a lethal combination of softening economic data and sky-high valuations. Perhaps "lethal" is a strong word. More accurately, they see a dip on the horizon that they feel will be worth buying. But the reason why I'm quoting Sarge so much today is that he more succinctly than anybody has listed the four reasons that valuations are high and deserve to be. Lower taxesLess regulationExpected lower interest ratesIncreased productivity (on a per-employee basis) driven by artificial intelligence. It all comes down to potential corporate growth and reduced expenses. Demand for workers probably will drop, however, which could be a net negative for economic growth. How is the stock market looking this morning? Slightly up. S&P 500 futures are higher by 0.12%, while Nasdaq futures are up 0.27%. ThinkOrSwim It's still earnings season and several major companies have reported this morning. TipRanks After market close, we await reports from AMD, Super Micro Computer, and others, including EV makers Rivian and Lucid. TipRanks Check back throughout the day! The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
