Carrots and Sticks to Bring Manufacturing Jobs Back to the US
Both Democratic and Republican presidents have tried to revitalize US manufacturing, using the carrot of tax incentives and subsidies and the stick of tariffs to bring production back home.
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23 minutes ago
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I'm 62 and not ready to retire, but over working full-time. How do I make sure I can afford to slash my hours?
Imagine this scenario: Tracey from Philadelphia is going on 62, and while her friends are talking about retirement, she's not quite ready to walk off into her golden years just yet. She loves having structure and purpose to her days, as well as the mental challenge of work. Since she's divorced and her adult children have their own lives, she also looks forward to social interactions at the office. She's even become an informal mentor to some of the younger employees. But her health isn't what it used to be, and she wouldn't mind having a bit more time to putter around the garden and babysit her grandkids. Plus, she's tired of the daily commute to work. Yet she isn't quite ready for retirement, nor does she feel she's saved enough money to do so. Ideally, Tracey would like to cut back her hours to part-time work and slowly make the transition to retirement, perhaps over several years. But she's worried about how that could impact her overall retirement savings, as well as her pension and health insurance. She's also worried about how to broach the topic with her boss. She doesn't want to appear as though she's no longer committed to her role or the company, nor does she want to be relegated to less important 'busy work' until she officially retires. Here's what she needs to consider, and how she can bring this up at work. Don't miss Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it What to consider before reducing your hours Reducing your hours or working part-time is an option for older workers who aren't quite ready for retirement, whether financially or emotionally (or both). For Tracey, part-time work would allow her to stay mentally sharp, continue saving for retirement and gently ease into her golden years. Some employers may even offer this as an option through partial or phased retirement, so it's worth checking in with HR. Retirement savings Tracey will need to crunch the numbers, perhaps with the help of a financial advisor, to see how a reduced salary would impact retirement savings goals. Like many Americans, Tracey probably hasn't met her retirement savings goals just yet. A recent Bankrate survey found that more than half (57%) of Americans (whether working full-time, part-time or temporarily unemployed) feel that they're behind with their savings for retirement. For workers 50 and older, there's the option to make annual catch-up contributions to a 401(k), 403(b) or governmental 457 plans. For 2025, workers can contribute up to an additional $7,500 for a total of $31,000. If you're considering going part-time before retirement, you'll likely have less to put aside in your retirement savings accounts and/or brokerage accounts — and you may not have the extra cash to benefit from catch-up contributions. Cutting down to part-time can also impact your pension (if you have one). Each pension plan has different rules; for example, some may have a provision for annualizing part-time earnings. So it's best to talk to the HR department about your options. If you have a spouse, you'll also want to discuss how going part-time could impact your shared retirement goals. Social Security If Tracey works part-time but still makes enough money to live on, she could potentially delay taking her Social Security benefit until her full retirement age (between age 66 and 67), when she'd receive 100% of her benefit. But Social Security benefits are calculated based on your 35 highest-earning years. If Tracey earned significantly more in her later career, cutting back her hours now could lower her average and slightly reduce her benefit. For those considering going part time, the Social Security Administration (SSA) has a number of online tools that can help you crunch the numbers to figure out how reducing your hours could affect your benefits down the road. Health insurance coverage Even if Tracey has already met her retirement savings goal and money isn't really an issue, she'll still need to consider health insurance. Medicare doesn't kick in until age 65, and employers are not obligated to provide health insurance part-time employees. In fact, only a quarter (26%) of part-time workers have employer-sponsored health coverage, according to the Bureau of Labor Statistics. However, anyone who works 30 hours a week or 130 hours a month is considered a full-time employee by the IRS under the Affordable Care Act (ACA). That means, if Tracey continues to work at least 30 hours a week until she turns 65, she'd still hold onto her employer-sponsored health coverage. If you find yourself wanting to reduce your work hours but losing health coverage in the process, you can fill out a Marketplace health insurance application to see if you're eligible for a plan based on your income (or free or low-cost coverage through Medicaid). Read more: Nervous about the stock market? Gain potential quarterly income through this $1B private real estate fund — even if you're not a millionaire. Working it out with your employer If you're in a similar position as Tracey and are ready to bring this topic up with your boss, first make sure to research your company's policies around part-time work. Once you're as aware of the policies as possible, prepare a proposal. Proposing part-time work to your employer The proposal that you bring to your boss should highlight the benefits of this arrangement both for you and for them. You can emphasize how the new arrangement would allow the company to continue to lean on your offerings while also giving you much-needed flexibility. The proposal should also address any potential concerns. According to career advice from Indeed, 'Your supervisor may worry about how the reduction of your work hours might result in a loss of work or impact your colleagues negatively. Try to validate these concerns and offer your supervisor options for overcoming any potential challenge.' For example, perhaps you have institutional knowledge that can help train the next generation of workers. If you're able to negotiate part-time work, it's advisable to sign a new employment agreement (or amend your current one) that outlines the change in hours, pay and benefits. What to do if your employer says no It's possible that, despite a stellar proposal, your boss may not go for it. If that's the case, there are still a couple of options. You could discuss the possibility of working for the company as a freelance consultant, which gives you control over which projects you take on. If you can't negotiate any arrangement with her current employer, you could also consider looking for part-time work elsewhere. This might be a good option for someone who still needs to save for retirement, but finds their current job to be a bad fit. Easing into retirement through part-time work could give Tracey the best of both worlds: the security and social structure of her job, along with the freedom to start enjoying more personal time. And for anyone in her position, the same holds true. As long as you carefully review the impact on savings, benefits and insurance, and work with your employer on a clear plan, you'll be better prepared to step confidently into the next chapter of life. What to read next Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 simple ways to grow rich with real estate if you don't want to play landlord. And you can even start with as little as $10 Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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23 minutes ago
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Intel's $24 Billion Rally Sends Valuation to Dot-Com Levels
(Bloomberg) -- After months of turbulence, Intel Corp. bulls are finally being rewarded for their patience. But the stock's sudden rebound comes with a worrying side effect: a valuation so high its most recent precedent is from the dot-com era more than two decades ago. Shares of the struggling chipmaker have rallied 28% this month, adding about $24 billion in market value, on reports that the US government is in talks for a potential equity stake, as well as plans for a $2 billion investment from Japan's SoftBank Group Corp. The jump has Intel trading at 53 times profits projected over the next 12 months, the highest since early 2002, according to data compiled by Bloomberg. Why New York City Has a Fleet of New EVs From a Dead Carmaker Chicago Schools Seeks $1 Billion of Short-Term Debt as Cash Gone Trump Takes Second Swing at Cutting Housing Assistance for Immigrants A Photographer's Pipe Dream: Capturing New York's Vast Water System A London Apartment Tower With Echoes of Victorian Rail and Ancient Rome 'The stock looks incredibly expensive here,' said Wayne Kaufman, chief market analyst at Phoenix Financial Services. 'That kind of multiple is a bet that the government will push Intel so hard on customers that it becomes a winner.' The surge in Intel this month followed a slump in the wake of a disappointing earnings report on July 24 and criticism of Tan earlier by President Donald Trump, who called for the CEO to step down, citing conflicts of interest. After meeting with Tan on Aug. 11, Trump changed his tune, saying Tan's 'success and rise is an amazing story.' Since then, reports have circulated that the Trump administration is in discussions to take a stake of about 10% in the company. Commerce Secretary Howard Lutnick said in a CNBC interview on Tuesday that the talks are aimed at converting US grants already made to Intel under the Chips and Science Act into non-voting equity. Intel shares slid 1.4% in premarket trading Wednesday. Of course, the US's plans regarding Intel haven't been finalized and could still change. Intel declined to comment on Lutnick's remarks. For Paul Nolte, market strategist and senior wealth manager at Murphy & Sylvest Wealth Management, the potential government involvement could benefit Intel in the short-term but may pose a risk in the long term. 'This strikes me as an easy road to get onto, but a hard one to get out of,' Nolte said. 'At the end of the day, this raises so many more questions than it answers.' Meanwhile, Intel's premium valuation is largely a reflection of just how much its profitability has collapsed in recent years. Intel is projected to generate more than $1 billion in adjusted profit over the next four quarters, after losing about $1.3 billion in the previous four, according to data compiled by Bloomberg. From 2018 to 2021 the company generated more than $20 billion in annual profits on average. 'We have no idea what Intel can deliver in earnings growth since it is so behind on tech and because you can't cost-cut your way to growth,' said Nancy Tengler, chief executive officer of Laffer Tengler Investments. 'It's hard to have confidence in the estimates, which makes it difficult to assess the valuation. I think it's overvalued, but I also think the picture is so uncertain that it wouldn't be attractive at any price.' Wall Street largely echoes her caution. Fewer than 8% of the analysts tracked by Bloomberg recommend buying the stock, while nearly 80% have the equivalent of a neutral rating. In addition, at its Tuesday close of $25.31, Intel trades notably above the average price target of about $22, representing the weakest return potential among components of the Nasdaq 100 Index. Still, there is optimism that Chief Executive Officer Lip-Bu Tan will be able to turn things around. Much of his focus has been on cost cutting, which has improved Intel's outlook to return to profitability but raised concerns the chipmaker may be bowing out of the race for technological leadership. Part of his effort has also been centered on a costly build out of its foundry operations undertaken by his predecessor, Pat Gelsinger. 'Clearly it's going to take a number of years for it to really start operating on a smooth basis,' said Gerrit Smit, lead portfolio manager of the Stonehage Fleming Global Best Ideas Equity fund. 'We've got trust in him, but we think he's got a long slog ahead.' --With assistance from Subrat Patnaik and Dina Bass. (Updates with premarker share move in the fifth paragraph. An earlier version of the story corrected the figure in the headline.) Foreigners Are Buying US Homes Again While Americans Get Sidelined What Declining Cardboard Box Sales Tell Us About the US Economy Women's Earnings Never Really Recover After They Have Children Americans Are Getting Priced Out of Homeownership at Record Rates Survived Bankruptcy. Next Up: Cultural Relevance? ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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23 minutes ago
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Exclusive-Amazon looks to ditch homegrown software for Android in Fire tablet revamp, sources say
By Greg Bensinger SAN FRANCISCO (Reuters) -Amazon is plotting a big change to its Fire tablet lineup following years of escalating gripes from consumers and app developers over the company's homegrown operating system. As part of a project known internally as Kittyhawk, Amazon plans to release a higher-end tablet as soon as next year offering the Android operating system software for the first time, according to six people familiar with the matter. Since the Fire tablet's introduction in 2011, Amazon has used what is known as a 'forked' version of Android with custom modifications that make it work like a unique operating system. Amazon has long sought to undercut hardware rivals with inexpensive tablets and other devices that serve as a doorway to the firm's digital content, like e-books, videos and music. The devices have typically sold at or near manufacturing cost. But the focus on simplicity has held back sales, particularly among consumers who seek higher-performing devices. The multiyear project to switch to Android marks a philosophical change for the online retail giant, which has eschewed third-party operating systems and software in favor of its own. As a result, Amazon has offered its own app store requiring developers to make separate versions of their apps for Fire tablets, limiting the store's variety. If Kittyhawk is successful, Fire tablets could be more desirable for consumers who crave compatibility with other Android devices, the people said. They cautioned that Kittyhawk could be delayed or cancelled over financial or other concerns. Amazon declined to comment, saying it does not respond to rumors or speculation. 'Consumers have always expressed a concern about not having access to the latest Android versions, not having access to some of their apps because Amazon used their own store,' said Jitesh Ubrani, a researcher at IT advisory firm IDC. 'It's meant more work for developers in this day and age of largely free apps or services.' Ubrani noted that Amazon has nonetheless sold many millions of the tablets. Amazon has forfeited profits on the devices themselves in favor of making money on selling their associated services, like streaming movie rentals. But such inexpensive devices typically come with compromises like lower screen quality or battery life compared with pricier options. Amazon is the world's fourth-largest tablet seller, with 8% of the market, just behind Lenovo's 8.2%, according to second-quarter IDC data. Apple and Samsung were the market leaders with 33.1% and 18.7%, respectively. PRICIER TABLET The first Amazon Android tablet, slated for next year, will be pricier than current models, the people said. One of them said Amazon had discussed a $400 price tag, nearly double the cost of its current higher-end $230 Fire Max 11 tablet. IPads, by comparison, range from $350 to $1,200. Reuters could not learn additional specifications for the planned Amazon tablet, such as screen size and speaker quality or memory capacity. Amazon historically has avoided using software or other products from third parties, preferring to develop the services in-house or, barring that, to acquire a competitor. The Fire Phone smartphone championed by Amazon founder Jeff Bezos and released in 2014 failed to win over buyers in part because of its reliance on Fire OS, as well as its high price tag. Amazon canceled the device and took a $170 million writedown. But the Seattle retailer has more recently shown a willingness to use rivals' services, particularly through its investment in startup Anthropic, whose Claude artificial intelligence software is the primary underpinning of Amazon's Alexa+ voice assistant and a chatbot used by employees known as Cedric. The new Fire tablet, the people said, will use the open-source version of Android, meaning it does not require direct coordination with Google and can be customized. Amazon is planning to roll out some lower-priced tablets with its Linux-based Vega operating system now in some Fire TV devices, some of the people said. The full slate of tablets will eventually be powered by a version of Android, the people said. The Fire project's internal code name of Kittyhawk seems to derive from the North Carolina town near where the Wright brothers conducted the first powered flight in 1903. But it is also the name of a failed flying car startup backed by Google co-founder Larry Page that burned through hundreds of millions in cash. Amazon declined to discuss the meaning behind its Kittyhawk project name. Sign in to access your portfolio
