💰 5 Fact Friday: Would You Settle for a C+ Retirement?

PERSONAL FINANCE
1. America’s Retirement Grade: C+ 👎

The U.S. retirement system just got slapped with a C+ grade, ranking 29th out of 48 according to the Mercer CFA Institute Global Pension Index.

That’s right, we’re stuck in the middle of the pack while nations like the Netherlands, Iceland, and Denmark are cruising by with straight A’s.

So, what’s the deal? Why are we sporting an average report card? Unfortunately, there are a few concerns.

1. Premature Cash-Outs: About 40% of U.S. workers who switch jobs end up tapping into their 401(k) accounts—many draining them to $0. It’s like breaking open your piggy bank every time you change your email address. Not good.

2. Plan Access: Sure, 72% of private-sector workers have access to a retirement plan, but only about half of employees actually participate. Compare that to countries like the Netherlands, where nearly all workers are covered by workplace retirement plans.

3. Flexibility Flaw: The U.S. system makes it easy to withdraw funds early, which can be a lifeline in emergencies, but it’s a killer for long-term savings.

4. DIY Retirement Planning: America has shifted away from traditional pensions, leaving employees in charge of their retirement savings. Now, if a stock picks go south or you live longer than expected, you bear that risk.

5. Aging Pressure: The U.S. retirement system is feeling the strain of an aging population. As more people retire, Social Security could be stretched, putting even more pressure on private savings.

Yikes, that's a lot of strikes against us, but don’t worry—you don’t have to settle for a C+ retirement.

• Maximize employer matching

• Avoid early withdrawals

• Roll over previous balances

• Double-check your contribution level when switching jobs

The most important part? Don’t leave your future to chance. With smart financial planning, you can upgrade your retirement to an A+ lifestyle.

OUR PARTNER: VANTAGEPOINT

How to Avoid the Next “Market Tsunami”

The Fed is making an announcement that is poised to wipe out billions of dollars in the market. There are 4 stocks you MUST avoid. 

This could be worse than the .com bubble, housing meltdown, or covid-crash…

Which could all feel like a blip compared to what some Wall Street analysts expect may be coming.

It’s called The Market Tsunami.

And it could wipe out BILLIONS of dollars in the Markets. Like flipping the switch — it could be a lights-out scenario.

Where do you turn to find the survivors? The fast-growers? The stocks set to skyrocket in a brave new world? 

The media is telling you one thing.

But in America, we think for ourselves. If you’re thinking about getting ahead of the game, you’ll want to investigate this hidden-in-plain-sight secret weapon.

Because it’s a proven way to forecast the market 1-3 days in advance.

ECONOMY
2. Debt Monetization Is A Bad Idea 💣

Last week, we touched on why growth is the best way to manage national debt.

But what if growth doesn’t come fast enough to keep our debt-to-GDP at bay? How can we correct for ineffective spending?

One “solution”, often referred to as debt monetization, involves printing more money to pay off debt. Theoretically, the U.S. has this privilege because the government issues debt in its own currency.

For example, if Mexico issues debt in U.S. dollars to tap a broader investor base, they also need to repay lenders in U.S. dollars, or risk default.

But the U.S.? We could just print more dollars to repay our debt. This is why U.S. Treasuries are often labeled "risk-free”—because, technically, we never need to default.

While debt monetization may seem like an easy fix, it’s a dangerous path.

Printing more money devalues our currency, leading to inflation. If we print too much, this can escalate into hyperinflation, where the dollar’s value plummets and the wealth of anyone holding assets in U.S. dollars is quickly eroded.

It gets worse.

When a country turns to debt monetization, credit agencies take notice. Our credit rating could plummet, making it more expensive for the U.S. to borrow money in the future.

Higher interest rates would follow, meaning we’d need to borrow even more just to finance past debt, trapping us in a vicious cycle of borrowing and inflation.

And let’s not forget the global consequences. Countries and investors could lose confidence in the U.S. dollar, putting our status as the world’s reserve currency at risk. If the dollar loses that position, demand for it would fall, further worsening the cycle.

Bottom line: Monetizing debt may sound like a quick fix, but the long-term consequences are brutal—hyperinflation, damaged credit, a devalued dollar, and diminished influence on the world stage.

Stay tuned for next week, where we’ll explore another flawed approach: aggressive taxation.

STOCKS
3. Big Banks Bring The Heat 🔥

Wall Street’s heavy hitters just dropped their earnings—and these reports give us a real-time read on the economy.

Why? Because banks provide insight into consumer spending, corporate investment, and deal-making.

Even though ate cuts are a double-edged sword for banks (lower loan profitability but higher deal-making potential), this quarter’s results are signaling optimism. Investment banking is bouncing back, trading revenues are climbing, and wealth management divisions are seeing renewed interest.

Overall, banks are signaling that the bull market lives on, even if a few geopolitical clouds linger on the horizon.

Here are the highlights (and 5-day price performances):

JPMorgan Chase ($JPM, +5.5%) saw profits dip 2% to $12.9 billion, but revenue shot up 6% to $43.3 billion. Investment banking fees? Up a massive 31%—a clear sign that deal-making is back on the menu.

Goldman Sachs ($GS, +5.0%) threw a profit party with earnings up 45% to $3.0 billion. Their equities trading division? Casually added half a billion more revenue than expected, rising 18%. Looks like their traders had the Midas touch!

Bank of America ($BAC, +6.6%) wasn’t far behind, topping profit and revenue forecasts. Their trading desks were on fire: fixed income was up 8% and equities rose 18%. Sure, net income dipped 12% due to higher loan loss provisions, but with all other metrics turning the corner, it's hard to complain.

Citigroup ($C, +0.8%) saw investment banking revenue rise 31% and wealth management revenue climb 9%. CEO Jane Fraser continues to ditch underperforming international markets and sharpen the bank's core focus.

Morgan Stanley ($MS, +10.5%) dominated in wealth management, raking in $7.3 billion from the division. Profit jumped 32% to $3.2 billion—proof that more clients are seeking financial advice in today’s volatile market.

Wells Fargo ($WFC, +11.5%) is still on the comeback trail after years of regulatory issues. Net income hit $5.1 billion, and their stock is now at multi-year highs, with non-interest income helping smooth out the bumps.

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BONDS
4. Finding Yield In The Bond Market 📈

The days of easy high yields are fading. The average yield on money-market funds has already dipped from 5.10% in August to around 4.7% today.

If you’ve been parking your cash in high-yield savings accounts (HYSAs), it might be time to look elsewhere for better returns—like bonds.

Bonds aren’t just for retirees anymore. In fact, yields on U.S. Treasuries, corporate bonds, and even municipals offer some of the most attractive returns in years.

Here’s how to build a solid bond portfolio:

1. Start with core bonds: U.S. Treasuries should make up 50% to 100% of your bond portfolio. These are considered safe bets with historically low or even negative correlation to the stock market, helping to balance out the risks from equities.

2. Add in investment-grade bonds: Allocate up to 50% of your portfolio to investment-grade corporates, agency mortgage-backed securities, or municipal (muni) bonds. These options are highly creditworthy and offer better yields than Treasuries. For those in higher tax brackets, the tax efficiency of muni bonds can be especially attractive.

3. Tread carefully with high-yield bonds: If you’re feeling a bit adventurous, up to 20% of your bond portfolio could be allocated to high-yield (junk) bonds. These may offer eye-popping yields, but remember, their risk of default is much higher too.

Vanguard predicts bonds may actually outperform stocks over the next decade—with returns of 4.6% to 5.6%. Although it’s a bold call, now could be the time to jump on the bond bandwagon for those prioritizing stability and income.

STOCKS
5. Guess Today’s Mystery Stock 🕵️‍♂️

Ready to put your stock smarts to the test? This week, we’re looking at a tech giant that recently rallied to fresh all-time highs.

1. This business sports a lofty P/E ratio of 35x, a modest dividend yield of 0.4%, and has delivered 300%+ returns over the past 5 years.

2. Warren Buffett missed out on $6.2 billion in gains by cutting his position in this stock in half during Q2 of this year.

3. The company’s latest product launch fell flat, with critics pointing to a steep price and limited app developer interest.

4. The AI-enabled version of its flagship product—responsible for 46% of total sales—was delayed, but still managed to reignite investor demand.

5. This brand remains the most valuable publicly traded U.S. stock, even though its top product ranks second globally with 17.7% market share.

Got a guess? Tap here to reveal the answer → 

Thanks For Reading!

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