Bombardier secures $1.7 billion aircraft order with service deal
Bombardier said the customer, who has chosen to remain anonymous, would hold 70 new aircraft purchase options, which, if exercised, would increase the combined value of the aircraft and service agreements to over $4 billion.
Earlier this year, the company said it expects new order activity to be slower through the first half of the year and to pick up after that.
The Montreal-based company said in May that it expects to deliver more than 150 business jets this year, compared with 146 in 2024.
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The Guardian
2 hours ago
- The Guardian
A Trump IRA for kids? It's worth a bit of money. But here are better options
There's Trump Mobile, $Trump coins, Trump watches, Trump sneakers and now … the Trump baby savings accounts! Will it be popular? As a financial adviser, I'm not so sure. The Trump IRA (or individual retirement account) was established as a part of the recently passed 'big, beautiful bill' and aims to help young people save. Parents and employers can annually contribute up to $5,000 into an account for their kids who are under the age of 18. Within limits, the contributions are not taxed to the employee and employers even receive a deduction. What's nice about these accounts is that the income earned as the account grows (hopefully) is also not taxed. And, different from a typical IRA, which penalizes early withdrawals, once the child hits 18 they can withdraw the funds without any penalties. The biggest bonus? For kids born between 1 January 2025 and 31 December 2028, the government will kick in $1,000 to get things rolling. A thousand bucks? For free? Sounds good. And if you had a child this year, take advantage. Take the grand. Let it grow tax-free. At 5% interest it would be worth about $2,400 18 years from now. Why not? But that's all I'd do. Why? Because if your intention is to save money for your kids, there's at least two other strategies that make more sense. One is to lean into after-tax accounts like 529s and Roths. With a 529 account, you can put as much money away for your kids as you want into this after-tax account (be careful of gift tax limitations) and it will grow tax-free until the money is withdrawn. The catch is that the money has to be used for educational costs (tuition, books, fees, etc) at colleges and trade and vocational schools as well as private and religious schools. The new bill now also allows withdrawals to pay for professional certifications such as HVAC or plumbing licensing renewal courses. You can also set up a custodial Roth IRA for your child if they're under 18. One caveat is that the child does have to have actual income (not interest or investment income) from a W-2 wage. Contributions are limited to $7,000 this year and do not reduce taxes. But all earnings are tax-free and savings can be withdrawn at any time. 529s and Roths are good strategies if the goal is to pay for education or put money away for your child's long-term future. But the strategy that I really love? Insurance. Thanks to the advice from a great insurance adviser 30 years ago, I bought whole life insurance policies for my kids. Why? Because by naming them as both the insured and the beneficiary on their policy and then paying the bill, I locked them into insanely low premiums that continue on to this day. For example, even today a $100,000 whole life policy for a newborn might cost about $30 a month. At age 30, the same policy might cost $150 a month. Buying a whole life policy for your kids also gets them tax-free payouts for their families one day if anything – God forbid – happens to them. It also builds up cash over time. A $50,000 policy bought at age five could have $20,000-plus in cash value by age 45. There are more benefits to doing this. Many policies pay dividends each year, which can provide income to the owner. And, different than a 529 plan, you can borrow against a whole life insurance policy without potentially interrupting its benefits or cash buildup as long as you continue to pay the premiums. I have some clients who buy these policies because – in most cases – it can guarantee the ability to get more insurance in the future even if there are health issues. Of course, these are just my opinions based on what I recommend to clients and what has been recommended to me. Your circumstances may be different. So run these numbers – and strategies – by your financial adviser and tailor it to your situation. The Trump IRA has nice intentions but c'mon … it's really just a $1,000 political giveaway that at best will provide beer money for a kid once they hit 18. Sure, take it. But parents can realize a much better return on their investment by putting money away for their kids' future education, retirement or – sorry to say – death. Do this instead of the Trump IRA and your children – and their future families – will be thanking you more.
Times
4 hours ago
- Times
Markets are the casualty of Donald Trump's war on Federal Reserve
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Daily Mail
4 hours ago
- Daily Mail
A simple new savings habit among Americans is helping the US dodge a recession... and grow their wealth
Americans have been surprisingly strategic with their cash. New research finds that more US consumers are shifting money out of traditional checking and savings accounts and into financial vehicles that offer investment income. It's a trend that helps explain the surprising strength of the US economy — which continues to grow despite high inflation and uncertainty around tariffs. The analysis, conducted by the JPMorganChase Institute, examined the accounts of 4.7 million households. Researchers found that when including brokerage accounts, money market funds, and certificates of deposit, people's total cash reserves are actually rising. That finding offers a fresh perspective at a time when standard bank balances, adjusted for inflation, remain flat and historically low. 'Families across many income bands are now seeing a turnaround in their total cash,' said Chris Wheat, president of the institute. The shift explains a previously puzzling economic contradiction: consumer spending has remained strong, even though checking and savings balances appeared stagnant. So far, this earnings season, companies have continually reported that consumers keep spending cash at record numbers. GM reported a seven percent increase in US car sales. Hasbro said its revenue also shot up seven percent. Delta Airlines beat Wall Street's profit guidance. Some consumers have even had cash lying around to invest in new meme stocks. But that continued spending and stagnant wage growth might have just been a product of Americans making smarter financial moves. Wheat also noted that in today's higher-interest environment, consumers parking cash in accounts that yield returns, rather than making risky, long-term investments. Still, he cautioned that the trend might be temporary, and it's unclear whether it will continue. JPMorganChase Institute also uncovered that the investment shifts were more popular for middle- and high-income earners. The analysis also found that households earning under $35,000 saw their total cash balances increase at an annual rate of 5 to 6 percent. It found the lowest income quartile typically holds just over $1,000 in bank accounts. The median balances of the highest income quartile exceed $8,000. While some Americans have been parking their cash in smart places, other metrics of financial health have shown some serious warning signs. Millions of consumers are combating inflation with a record-setting arsenal of credit card debt — to the tune of $1.18 trillion. Meanwhile, a record number of consumers are turning to an inceasing array of on-demand pay options and buy-now, pay-later microloans.
