Latest news with #JPMorgan
Yahoo
2 hours ago
- Business
- Yahoo
Why your Social Security check could shrink by nearly 20% — and more if jobs are scarce
Social Security is hugely important to a large share of Americans. Almost 69 million Americans will receive monthly Social Security benefits in 2025, totaling about $1.6 trillion in benefits paid during the year. But Social Security will need some kind of reform within the next decade in order for America's retirees to keep counting on it. Given its funding structure, if Social Security continues to roll forward in its current trajectory, the program will be able to cover just 81% of promised benefits starting in 2034, according to the latest estimates of the Social Security Trust Fund report. My brother stole $100K from my mom to buy bitcoin. Do I convince her to sue him? Most American weddings are a lot more extravagant than the nuptials of Amazon's Jeff Bezos I'm a stay-at-home. Do I take a part-time job to spend more time with my kids — or get a job for six figures? JPMorgan has a new way of forecasting the stock market — and there's a surprising finding 'He doesn't seem to care': My secretive father, 81, added my name to a bank account. What about my mom? Congress will need to take action. But both Republicans and Democrats have long been reluctant to reduce Social Security benefits and averse to raising payroll taxes to close the funding gap. Yet the economic reality can't be ignored. The way in which Social Security is funded exposes the program to challenges. Unlike other forms of saving for retirement, where workers put away savings into an account that is dedicated to them, this pay-as-you-go system acts more like a checking account: Current workers are paying into the system and the current beneficiaries are receiving those funds out of the program. This structure did not present a challenge while the baby-boom generation was entering the workforce in the early 1960s, with the share of workers paying into the system rising much faster than the share of the population able to claim benefits. Since the early 2000s the tables have turned: The share of the U.S. population that is 18-64 has been declining while the share that is 65 and older grew at the fastest rate in over a century, going from 13.0% of the total population in 2010 to 16.8% in 2020. As a result of these opposing trends, while there were about 18 people aged 65 and older for every 100 working-age Americans in 1980, this dependency ratio grew to 30 retirement-age Americans per 100 workers in 2025 (see the chart above). The ratio of retirees to workers is likely to continue increasing beyond the retirement of the baby boomers because of the lower fertility rates that the U.S. has experienced over the past 15 years or so. For several years, the trustees of the Social Security Trust Fund have been projecting that the program has promised more benefits than it is able to pay out. According to the latest trustees report, released on June 18, the combined Old-Age, Survivors and Disability Insurance Trust Fund is expected to be depleted in 2034. At that time, benefits will be paid only from the income that is coming in, as there won't be anything in the reserves to supplement that income. Legally, the trust fund cannot borrow money. At that point, the trust funds would only be sufficient to pay about 81 cents on every dollar scheduled to be paid. Unless policymakers make deliberate efforts to clarify how to handle shortfalls, it is likely that the program will face similar uncertainties in the future. Right now, we face uncertainty in how the gap between the funds coming in and the benefits promised will be closed. It is not clear if beneficiaries will face those benefit cuts, if taxpayers will be liable for those tax increases, or something else. Both the benefits paid and the contributions into Social Security are prescribed by law. This means it's likely that demographic or economic assumptions will change again at some point in the future, resulting in an imbalance between the benefits that are scheduled to be paid and the revenue that is expected to come in. For example, when there's an economic downturn, fewer people are working and contributing into the trust fund. There are other ways in which the retirement security system is lacking that could be addressed. While the existence of Social Security and Medicare have contributed to a dramatic reduction in elderly poverty, some groups face persistent challenges. Although survivor benefits provide helpful protection to surviving spouses, there is some evidence that the existing level of survivor insurance may not be adequate to cover the costs that a surviving spouse incurs. In 2019, among those 60 and over, 16% of new widows lived in poverty, compared to 10% overall. There remain significant expenditure risks that the elderly face that are not fully addressed by Social Security and Medicare. While Social Security does not provide any kind of medical payments, Medicare provides a source of health insurance for most people over the age of 65. However, Medicare doesn't cover everything, and there are significant copayments and deductibles that a person may be responsible for. Read: Trump pledged not to cut Medicare — but his budget bill does just that For example, annual out-of-pocket spending on healthcare was on average $6,663 for all beneficiaries enrolled in traditional Medicare in 2019, according to a study by AARP. This average out-of-pocket spending for healthcare was equivalent to about 38% of the average annual Social Security retirement benefit ($17,460) in 2019. Moreover, there is a significant coverage gap regarding long-term care services for chronic conditions. This type of care is costly and largely paid for either out of pocket, through state Medicaid programs for those who qualify, or provided by unpaid caregivers, often spouses and adult children, who indirectly bear the costs through reduced labor force participation and adverse impacts on their own health. A person turning 65 between 2021 and 2025 is estimated to incur, on average, $120,900 in paid long-term care costs, of which 37% is estimated to be paid out of pocket, and the remainder covered by a combination of Medicaid (and other sources of public insurance) and private insurance (see here). Read: $1 trillion in cuts to Medicaid would have a devastating impact on people receiving long-term care. Here's why. Also read: Medicare may actually be in more trouble than Social Security What will Social Security reform ultimately look like? The answer is unclear at this stage. Would it be an across-the-board cut or a cut that applies more to certain people than others? Will the burden fall on all U.S. taxpayers or only on current workers? Delaying real discussion about the solutions makes the problems harder to solve. The timeline that the U.S. has to fix it is shorter and the change that is needed is more drastic than it would be otherwise. While addressing the imminent financial challenges of the program will be unavoidable, Americans shouldn't just be thinking about the issue of solvency. What is the role of government and markets in providing this protection? How can Americans ensure that their major entitlement programs are solvent and sustainable for the long term? Social Security reform offers an opportunity to take comprehensive look at how policy can best help people manage the risks they face in retirement. Gopi Shah Goda is director of the Retirement Security Project, the Alice M. Rivlin chair in economic policy and senior fellow in economic studies at the Brookings Institution. This commentary was originally published by Econofact — 'Facing the Social Security Shortfall.' Also read: As Social Security starts operating under controversial new rules, here's how they could affect you and your benefits More: Social Security will stop sending paper checks soon. How to make sure you still get your benefits on time. S&P 500 scores record high for first time in 4 months. What could push stocks higher from here? There's an important market indicator that suggests investors remain wary. It's good news for stocks. My job is offering me a payout. Should I take a $61,000 lump sum or $355 a month for life? What drove stock market's record-breaking week? Don't overlook growing rate-cut expectations. Coinbase's stock is up over 40% this month as Wall Street projects amazing profit growth Sign in to access your portfolio
Yahoo
11 hours ago
- Business
- Yahoo
McGraw Hill files for a NYSE IPO
-- McGraw Hill, a leading global provider of educational information solutions, has filed for a proposed initial public offering (IPO) on the New York Stock Exchange. The company intends to list its shares under the ticker "MH." Goldman Sachs will serve as the lead underwriter for the offering. Additional underwriters include BMO Capital Markets, J.P. Morgan, Macquarie Capital, and Morgan Stanley, among others. Financial data included in the filing shows the company generated revenue of $2,101.3 million for the fiscal year ended March 31, 2025, up from $1,960.5 million in 2024 and $1,947.8 million in 2023. Despite the revenue growth, McGraw Hill reported a net loss of $85.8 million for fiscal year 2025. This represents an improvement from net losses of $193.0 million in 2024 and $404.1 million in 2023. The company has not yet disclosed the number of shares to be offered or the price range for the proposed offering. McGraw Hill delivers personalized learning experiences across the educational spectrum, from K-12 to higher education and professional learning. It utilizes content, data-driven insights, and learning science to create its educational products and services. The company claims that it serves approximately 60 million learners and educators on an annual basis. Related articles McGraw Hill files for a NYSE IPO OpenAI taps Google Cloud TPUs in bid to diversify AI chip supply - The Information TransUnion, Equifax stocks fall after FHFA Director announces credit bureau review Sign in to access your portfolio
Entrepreneur
14 hours ago
- Business
- Entrepreneur
Goldman Sachs Internship Acceptance Harder Than Harvard
Goldman Sachs' famed summer internship program began last week. The 10-week program allows college students to "spend the summer learning from the firm's leaders, working on the most consequential challenges in finance, and growing as professionals," according to the company. But you'll have an easier time getting accepted into Harvard University than becoming a Goldman Sachs summer intern. While Harvard boasted a low 3.6% acceptance rate for its undergraduate class of 2028, Goldman Sachs had an even lower acceptance rate for its 2025 summer internship: 0.7%. Related: Goldman Sachs Asks Some Managers to Move From Major Hubs Like New York City to Emerging Regions Like Dallas — Or Quit Over 360,000 global applicants applied for 2,600 seats in offices around the world, marking "the most competitive intern class" in the bank's history, the firm noted in a LinkedIn post. Over 500 schools were represented, with more than 85 languages spoken among the accepted batch. Since David Solomon took over as Goldman Sachs CEO in 2018, the number of applicants for the bank's coveted summer internship program has grown more than 300%, according to Fox Business. Compared to a year ago, the applicant pool has expanded by 15%. Goldman isn't the only bank with a less than 1% acceptance rate for its summer internship. JPMorgan reported receiving 493,000 applications last year for 4,000 seats, marking an acceptance rate of 0.8%. The interview process for Goldman internships involves two steps: First, a 30-minute video interview with HireVue, and second, a "superday" final round of interviews with two to five interviewers. Engineering candidates additionally have to pass an online skills assessment. According to Glassdoor, interns were asked questions like "Walk me through your resume," "Explain banking like you were five," and "Why Goldman Sachs?" Related: Goldman Sachs CIO Says Coders Should Take Philosophy Classes — Here's Why The application process for Goldman's intern program begins over a year in advance, in the spring of the previous year. Final round interviews are already underway for candidates for next year's internship class. Applicants have typically completed their junior year of college by the time the internship starts, making them sophomores at the time they apply. What's harder than landing an internship at JPMorgan or Goldman Sachs? Being a NASA astronaut, which only accepted 10 out of 12,000 applicants when it opened up selection in 2020, for an acceptance rate of 0.083%. Goldman Sachs stock was up over 20% year-to-date.
Forbes
15 hours ago
- Business
- Forbes
The 6 Best Stocks To Buy Now For July 2025
Opt for companies with reasonable valuations and strong outlooks to hedge against a downturn later ... More this year. The S&P 500 is flirting with a new high this June, despite geopolitical unrest and a fast-approaching tariff deadline. When investor enthusiasm runs hot, it can be a good time to exercise caution. Should inflation or unemployment jump later this year, you'll appreciate having defensive options in your portfolio. That's why these top stocks for July have defensive qualities alongside double-digit upside potential. Any one of them could be the all-field player your portfolio needs to thrive amid the economic complexities of 2025. How These Top Stock Picks Were Chosen Analysts at Wealth Management see opportunities later this year in utilities, financials and international industrials alongside ongoing growth in technology. Utilities have long been viewed as defensive stocks, but they now have good growth potential, too—since the AI data center buildout is driving electricity demand higher. Financials can be a defensive play against rising interest rates, but they're also likely to thrive as banking regulations ease under President Trump. Also, regional financial companies and utilities have the added advantage of limited tariff exposure. The selection criteria for these top stock picks were designed to capitalize on these trends. All six stocks are either utilities or financials that meet these parameters: The six stocks chosen also pay dividends, with yields ranging from 0.7% to 6.5%. 6 Top Stocks To Buy Now In July 2025 The table below highlights six reasonably valued financial and utility stocks that are expected to deliver double-digit EPS growth this year. A review of each company follows. Metrics are sourced from company reports, and author calculations. For more top stock ideas, see this list of best stocks to buy for 2025. 1. PG&E Corporation (PCG) (H2) PCG by the numbers: PG&E sells electricity and natural gas to residential, commercial and agricultural customers in Northern and Central California. PG&E's 2025 non-GAAP core earnings EPS guidance is $1.48 to $1.52. The midpoint of the range, $1.50, represents an increase of 10.2% from 2024. Longer term, analysts expect the utility company to continue increasing earnings by high single digits, reaching EPS of $2.12 in 2029. A strong data center pipeline and aggressive capital spending plan are contributing to PG&E's optimistic outlook. The utility has 18 projects in the final engineering phase, with some scheduled to come online next year. PG&E's capital spending budget from 2025 through 2028 totals $52.5 billion. Cost control and risk mitigation are also priorities. PG&E's long-term operations and maintenance cost reduction target is 2% annually. The company exceeded this goal in 2023 and 2024. The risk mitigation efforts are focused on improving wildfire response and powerline safety. PG&E's quarterly dividend is $0.025 and the yield is 0.7%. 2. Edison International (EIX) EIX by the numbers: Edison International provides electricity to residential, commercial, agency and industrial customers in Southern California. Edison International's 2025 core EPS guidance is $5.94 to $6.34. The midpoint of the range, $6.14, is 24.5% higher than EIX's 2024 core EPS of $4.93. The EIX leadership team says the company can grow core EPS 5% to 7% annually through 2028. The targeted range for 2028 core EPS is $6.74 to $7.14. EIX's stock price fell dramatically after the California wildfires in January 2025. The stock had been trading above $80 per share since the prior summer. It's now in the $50s. Several analysts see this as a buying opportunity. The consensus price target on the utility is $76.82, equating to 51.5% upside. Edison is facing lawsuits related to the wildfires, a risk investors should weigh carefully. California has a wildfire fund to protect its utility companies from bankruptcy if courts rule one of them liable for fire damages. Unfortunately, the $21 billion fund may not be enough to cover losses from the Eaton Fire. PG&E executives have said they don't think the utilities or their shareholders should contribute to the fund. Edison International pays a quarterly dividend of $0.8275 per share, for a yield of 6.5%. 3. SouthState Corporation (SSB) SSB by the numbers: SouthState Corporation operates a regional bank serving consumer and business customers in Texas and the southeastern U.S. Analysts expect SouthState to deliver EPS of $8.62 in 2025, up nearly 24% from the $6.97 result in 2024. By 2027, analysts expect SouthState's EPS to reach $10.50. SouthState implemented pivotal changes in the first quarter. The company completed its acquisition of Independent Bank Group, with branches located in fast-growing Texas markets. SouthState also completed a sale and leaseback of 165 bank branches and restructured $1.8 billion of securities. The acquisition expands SouthState's footprint into key markets. And the restructuring helped boost the bank's net interest margin to 3.85% from 3.48% in the prior quarter. The company is well-positioned for the future, with improved financial strength and profitability. SouthState pays a quarterly per-share dividend of $0.54, for a yield of 2.3%. 4. Webster Financial Corporation (WBS) WBS by the numbers: Webster Financial Corporation operates a regional bank serving consumers and business customers in Connecticut, Massachusetts, Rhode Island and the New York metro. The 2025 EPS expectation for Webster Financial is $5.79, up 32.6% from last year's $4.37 result. Additionally, eight analysts project the company's 2027 earnings to eclipse $7 per share. Webster reported solid first-quarter 2025 results that included deposit and loan growth across multiple business lines. The bank also grew net interest income 0.6% on a higher net interest margin. However, WBS did increase its allowance for credit losses in the first quarter. CFO Neal Holland cited an uncertain economic outlook and the need to prepare "for a wider range of economic scenarios." Despite the uncertainty, WBS increased its common stock repurchase authorization by a generous $700 million in May. The move signals confidence in the bank's outlook. Webster Financial pays a quarter per-share dividend of $0.10, for a yield of 2.9%. 5. UMB Financial Corporation (UMBF) UMBF by the numbers: UMB Financial provides regional banking services to consumers and businesses in the Midwest and California. Services include traditional depository services plus wealth management, financial planning and institutional banking. Analysts expect UMBF to produce 2025 EPS of $10.23, a 13.8% improvement over 2024 EPS of $8.99. The earnings growth is projected to continue, albeit more slowly, in 2026 and 2027. The 2027 EPS outlook for UMBF is $12.25. UMB Financial has historically been a conservatively managed business. Strategic priorities include balance sheet health, liquidity and above-average credit quality. This approach has contributed to double-digit net income growth in three of the last four years. Business prudence also allowed UMBF to close the largest acquisition in its history in January. The purchase of Heartland Financial increased the bank's asset size by 32% and expanded UMBF's footprint into California, New Mexico, Minnesota, Wisconsin and Iowa. The acquisition also contributed to a 37-basis point reduction in deposit costs and a 39-basis point improvement in net interest margin in the first quarter. UMBF pays a quarterly dividend of $0.40, for a modest yield of 1.5%. 6. Old National Bancorp (ONB) ONB by the numbers: Old National Bancorp operates the sixth largest commercial bank in the Midwest. The bank offers retail and commercial banking, wealth management, investing and capital markets services. Old National Bancorp produced 2024 EPS of $1.68. Analysts expect 2025 EPS of $2.17, which equates to earnings growth of 29.2%. Current EPS projections for 2026 and 2027 are $2.66 and $2.98, respectively. ONB's first quarter results beat analyst expectations for revenue and adjusted EPS. The leadership team cited solid organic loan and deposit growth combined with tight control of operating expenses. Other highlights included continued strong capital ratios and stable credit quality metrics. The positive results positioned ONB well for its merger with Bremer Bank, which closed after quarter-end on May 1. The ONB team expects the transaction to contribute to lower deposit costs and loan growth going forward. The combined entity at close had about $70 billion in assets and $37 billion in assets under management, placing it in the top 25 of U.S.-based banks. ONB pays a quarterly per-share dividend of $0.14, for a yield of 2.6%. Bottom Line For the second half of 2025, utility and midsized financial stocks could provide defensive growth, plus a nice boost to your cash income. Opt for companies with reasonable valuations and strong outlooks to hedge against a downturn later this year.
Bloomberg
17 hours ago
- Business
- Bloomberg
JPMorgan Has a $2 Billion Mystery Whale Behind Its New Junk ETF
Katie Greifeld. The just-launched JPMorgan Active High Yield ETF (ticker JPHY) is interesting for a few reasons:
