fotog/Getty Images Interest Rates “Interest rate risk” refers to the sensitivity of a bond’s price to changes in current interest rates. Bonds with more interest rate risk (that is, a higher duration) tend to rise in price as the rates fall, but they tend to perform poorly or below par as the rates begin to rise. Keep in mind: Bond prices and yields move in opposite directions. One result is that when the economy slows down, the slower growth leads to falling interest rates....

Debt settlement is when you or a third party negotiates with creditors and lenders to pay less than what you owe. Bankruptcy is a legal process in which you petition a bankruptcy court to discard your debt or create a manageable payment plan. Learn more about the differences to figure out which option is right for you. What’s the Difference Between Debt Settlement and Bankruptcy? Bankruptcy is when someone claims they can’t afford to pay their debt obligations and asks a bankruptcy court to discharge what they owe....

The government could reduce prices by 57% and 75% on the cost of each drug by negotiating, according to an estimate earlier this year by the Congressional Budget Office (CBO). This would save participants in Medicare Part D (Medicare’s optional drug coverage) money, since beneficiaries pay for some of the cost of the medications they use. But there’s a trade-off: With drugs generating less money, there could be less reason for pharmaceutical companies to develop new ones....

The child care measure is one of many subsidies proposed in the American Families Plan, a set of sweeping reforms President Joe Biden outlined in April to overhaul the U.S. social safety net and tax code. Sanders and Sen. Majority Leader Chuck Schumer of New York introduced a $3.5 trillion budget resolution Monday in hopes of eventually passing the plan. The resolution instructs lawmakers to write legislation they plan to pass using a procedure called budget reconciliation to avoid needing 60 votes in the Senate....

Patients who are looking for alternatives to traditional healthcare have a new option: the direct primary care (DPC) model. With DPC, you pay a monthly fee to a healthcare provider’s practice. In exchange, you have access to a doctor, often including both in-person and telehealth visits. Learn more about the DPC model and how it works. What Is Direct Primary Care? DPC gives primary care physicians a way to charge patients without having to go through a third party first....

Find out more about some of the disadvantages of Roth IRAs, including contribution limits, tax issues, and penalties. Roth IRA Contributions Aren’t Tax-Deductible A traditional IRA allows individuals to make before-tax contributions for retirement, and these funds aren’t taxable until the year they are withdrawn. In the same way, a 401(k) plan or other type of employee retirement plan allows employees to contribute to a retirement account through their employers and then take a tax deduction....

According to the CDC, 1 in 5 people bitten by a dog will require medical attention. Dog bite injuries can be painful, and can cause nerve damage, diseases such as MRSA, and other serious injuries. In the most severe cases, death may even be possible. If you own a dog, consider protecting yourself from any potential liability for injuries caused by your dog biting someone or knocking down a small child or a cyclist....

Financial restraints often require owners of startups to be jacks of all trades during the first months or years of operation. As businesses mature and profits increase, there are many needs that are better served by experts in the discipline. The ever-increasing complexities of information technology, the tax code, and the regulations and other legal aspects surrounding a business can be very difficult to keep track of. Small business consultants can help business owners manage these complexities....

Should you buy a stock using a margin loan? Learn what can happen and some actions you can take to mitigate, but not eliminate, the significant losses that can occur when using a margin loan. A Margin Loan Can Be Called at Any Time A margin loan isn’t like a bank loan. Brokers can call in their loans at any time and expect an immediate payment, because it is in the margin account agreement....

Since the euro’s launch on January 1, 1999, it has spent less than two years valued at less than a dollar. The euro peaked on April 22, 2008, with an exchange rate of $1.60. High euro-to-dollar exchange rates mean that your dollar could purchase more in the European Union, while a low rate means you would purchase less there. Here is a brief summary of how the euro is valued, with a run-down of the historical euro-to-dollar conversion rates to help you understand the relationship between the two currencies....

As part of a pandemic relief program, eligible U.S. households can enroll to receive a discount on broadband service beginning May 12, the Federal Communications Commission (FCC) announced last week. Those approved will receive a so-called Broadband Emergency Benefit of up to $50 a month for broadband service (or up to $75 a month on tribal lands), while some people will also receive a one-time discount of up to $100 on a computer or tablet....

All states, including South Carolina, have passed laws aimed at curbing the problem by making it harder and more expensive for drivers to remain uninsured. If you drive in the state and you aren’t covered, or if you are thinking of dropping your insurance to save a little money, then it’s time that you became acquainted with the penalties for driving without insurance in South Carolina. South Carolina Insurance Requirements If you don’t already know, South Carolina requires that drivers carry a minimum level of automobile insurance coverage at all times....

The FOMC uses monetary policy to influence the availability of money and credit. It announces its decisions at a committee meeting eight times a year, explaining its actions by commenting on how well the economy is performing, especially inflation and unemployment. Who Is on the FOMC? The FOMC is made up of 12 voting members. They include the chair and six other governors appointed by Congress. It also includes the vice-chair and four other regional Federal Reserve Bank presidents....

In most cases, you and your estate planning attorney will have decided long before the Irrevocable Living Trust is even created what should go into the trust. Why? Because Irrevocable Living Trusts are designed to hold and own a single asset or specific assets, and so they are only used in very limited situations. Here is a summary of the funding procedures. Change of Title/Ownership For assets such as bank accounts; non-IRA and non-401(k) investment and brokerage accounts; stocks and bonds held in certificate form; life insurance policies; and real estate, these types of assets are funded into an Irrevocable Living Trust by changing the owner of the asset from the Trustmaker’s individual name into the name of the trust:...

Following up this meeting with a letter formalizes your resignation and the date of your departure. Sending an email message or a letter is also appropriate if you’re working remotely and don’t have the opportunity to personally inform your boss that you are leaving. What to Include in the Letter Your letter should include the last date that you will be working. You don’t necessarily need to give a reason for your departure in a resignation letter, but it’s fine to share the fact that you’re going back to school....

Mutual Fund Returns: Annual Return vs. Annualized Return When researching mutual fund returns, it’s wise first to understand the distinction between annual return and annualized return. The annual return is the gain or loss of the initial investment over a year. The annualized return is the average rate of return over a multiple-year time frame. For example, suppose you see that a mutual fund had a 15% return last year, and the 10-year historical return is 10%....

Ten percent of homeowners plan to list within the next 12 months—25% more than in a typical year—according to the results of a Realtor.com/Harris X survey conducted in late March and released Monday. An additional 16% of homeowners said they’d likely list their homes in the next two or three years. The housing market has roared during the pandemic, with ultra-low mortgage rates and a shift to working from home fueling far more demand for real estate than supply....

However, your financial decisions are still important and should be considered carefully. Remember that taking advantage of some work benefits can reduce your taxable income. Here are the most important benefits to think about with your new job. Health Insurance Generally, there is a waiting period at a new employer before you qualify for health insurance. You still need health insurance coverage during that time. You can choose between using COBRA insurance or a short-term health insurance policy....

What Is a Pension? A pension is a source of guaranteed retirement income provided by an employer to employees who have qualified for this benefit. To be eligible for a pension benefit you usually need to work for an employer for a certain number of years. (That number can vary.) Your pension benefit usually increases as you accumulate additional years of employment with that employer. Pensions are also referred to as “defined benefit retirement plans” as they are designed to define the future retirement benefit that you receive....

The plan includes a one-year extension of this year’s child tax credit expansion, free preschool for 3- and 4-year-olds, and subsidies for child care costs, among other changes to social programs. The White House provided a rough outline of the proposal, but it will be up to Congress to flesh out the details and pass legislation. “This is a fundamental game changer for our families and for our economy, because more parents—especially women—can get back to work,” Biden said of the framework’s child care provisions, in a speech about the budget proposal....