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☆ What Is the 50/30/20 Rule?
▼ + stars: | 2023-09-07 | by ( Kevin J. Ryan | ) www.wsj.com time to read: +7 min

Perhaps the most popular method is the 50/30/20 rule, which is a simple and effective way to take control of your money. The 50/30/20 budget rule was popularized by Sen. Elizabeth Warren—then a Harvard Law professor—and her daughter, Amelia Warren Tyagi, in their 2006 book “All Your Worth: The Ultimate Lifetime Money Plan.” They called it a “good rule of thumb” for getting your budget in order. What is the 50/30/20 rule? Alternatives to the 50/30/20 budget methodOf course, no one budgeting method is for everyone. For example, like the 50/30/20 rule, the 70/20/10 rule also divides your after-tax income into three categories but differently: 70% for monthly spending (including necessities), 20% for savings and for 10% donations and debt repayment above the minimums.

Persons: Kevin J, Ryan, Sen, Elizabeth Warren —, —, Amelia Warren Tyagi, “ It’s, ”, Akeiva Ellis, Greg Giardino, “, “ You’ve, You’ve, Austin, Jordan Benold, that’s, it’s, There’s Organizations: Harvard Locations: Tarrytown, N.Y, San Francisco, New York, Frisco , Texas, you’ll

☆ These funds offer yields exceeding 4% and they’re on discount. Here’s why it might be time to buy them
▼ + stars: | 2023-07-10 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +3 min

But whether it's time to back up the truck and stock up on cheap dividend payers will depend on a range of factors, including risk appetite and style. Notable constituents include Altria Group, which has an 8.3% dividend yield, and Verizon , which touts a yield exceeding 7%. This would include the Vanguard High Dividend Yield ETF (VYM) , which has a total return of about -1.6% this year, and the WisdomTree U.S. Total Dividend ETF (DTD) , with a total return of 2.5%. VIG, for instance, has a total return of 6% this year, but offers a 30-day SEC yield of 1.82%. Whether it's time to snap up these dividend payers will also depend on your risk appetite and your timeline.

Persons: Johnson, Ryan Jackson, Jackson, VIG, Jordan Benold, Benold Organizations: Exxon Mobil, Johnson, Morningstar, SEC, Altria, Verizon, Vanguard, Microsoft, Apple, Dow Locations: U.S

Money market funds Assets in retail money market funds grew to $1.99 trillion, according to the latest data from the Investment Company Institute . Further, even as money market funds offer relative safety, they can still face some risk. Don't confuse money market funds with money market accounts. Though money market accounts – which are offered by banks – are protected by the Federal Deposit Insurance Corporation, up to $250,000, money market funds are not. Certificates of deposit and high-yield savings accounts Liquidity should be a big factor for investors eyeing bank products like CDs and high-yield savings accounts.

Persons: Jamie Hopkins, Hopkins, Don Grant, Jordan Benold, Lehman, Danika Waddell, BancShares, Waddell Organizations: Federal, Carson Group, Sabre, Investment Company Institute, Investors, –, Lehman Brothers, Federal Deposit Insurance Corporation, Xena, BMO, Ally Financial, CIT Bank, Synchrony, Ally, Capital

If the market gyrations and Silicon Valley Bank's failure are rattling your faith in stocks, there are places to look for safety. But for cash and bond allocations, T-bills – U.S. Treasurys with maturity of one year or less – might be the ticket. The rates will adjust and correct [at some point], and these short-term rates will go back to normal," he said. When buying bank CDs, investors should be mindful of the Federal Deposit Insurance Corp.'s coverage, he said. Hans Olsen, chief investment officer of Fiduciary Trust Company, highlighted short-duration, high-quality bonds are where it's at for safety.

☆ Six-month Treasury yield tops 5%. Here’s how you can put your idle cash to work
▼ + stars: | 2023-02-23 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +3 min

Rates on U.S. Treasurys have spurted even higher, and that means you don't have to look too far to safely grab some yield for your cash holdings. The yield on six-month Treasurys have surpassed 5%, and even 1-month bills tout rates of 4.5%. Further, you can put the same concept to work with short-dated Treasurys to get a little more yield on your cash and do so safely. Risk management and ladders When interest rates are rising, you can reinvest the proceeds of the maturing bonds in your ladder into a longer-dated issue. In a falling rate environment, you can count on the bonds that have already locked in the higher yields.

☆ Boost your portfolio income with this hybrid asset. Just be aware of the recession risk
▼ + stars: | 2023-02-16 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

For yield-hungry investors, preferred stocks offer a way to boost portfolio income. Preferred stocks are a hybrid asset. They have yields, which move inversely to the value of the preferred stock – the same way bonds do. "However, with bond yields rising, the place for preferred stock in a portfolio should be used sparingly." For those who want to stretch for yield and take on a little more risk, preferred stocks are another attractive possibility.

☆ Interest rates are high. Here’s a relatively safe way to squeeze more from your cash
▼ + stars: | 2023-01-25 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

Be aware that money market accounts offered by a bank are subject to protection from the Federal Deposit Insurance Corp. This isn't the case with money market funds, which can't guarantee that you won't lose money. When shopping for a money market fund, look for offerings that hold high quality underlying investments, and be sure to keep an eye out for fees. Money market funds that Lawrence likes include the Federated Hermes Prime Cash Obligations Fund (PCOXX) and the Fidelity Tax-Exempt Money Market Fund Premium Class (FZEXX). Unless they're tax exempt, money market fund income is subject to federal, state and local taxes.

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