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Business Insider
a minute ago
- Business Insider
OpenAI CFO says these 3 things will help your company stay competitive in the AI era
Building a competitive moat in the AI era isn't easy. AI is advancing so quickly that many companies struggle to plan more than a few months ahead, making it difficult to build a lasting advantage. OpenAI CFO Sarah Friar has three key tips for companies looking to stand out. First order of business is for companies to ask themselves whether they're solving a real problem, she said on CNBC's Squawk Box on Wednesday. "It sounds really trite, but sometimes I think people try to solve problems that don't really exist in the world." Instead, they should focus on automating complicated tasks that are necessary for real-world operations. There are a lot of complex business processes, especially in areas like finance, that can be automated with agents, she said. Lastly, she said that companies should focus on securing unique data sets. "90 plus percent of the world's data sits behind closed doors," she said. "It sits in university settings, and company settings, and so on. And so, can you access that in an appropriate way? That's what I think builds a competitive moat." The hunt for unique data is so fierce that even leading AI companies are pushing boundaries — sometimes at the risk of copyright violations. Meta considered acquiring publisher Simon & Schuster as a solution. Anthropic collected and scanned millions of pirated books while training its Claude model, which a district judge ruled in June did not constitute fair use. Finding proprietary data that isn't publicly available, and getting permission to use it, could be a legally sound foundation for a new AI company. Friar joined OpenAI last year along with Kevin Weil, now the company's chief product officer. She previously served as the CEO of Nextdoor and the CFO of Square. She has also worked at Goldman Sachs, McKinsey, and Salesforce.
CBS News
a minute ago
- CBS News
What disqualifies you from getting a reverse mortgage?
For many older Americans, their home is more than a place to live. It's also their biggest financial asset. And, for those who need access to more income in retirement, tapping into that wealth can be a smart move, whether they need help covering medical bills, supplementing Social Security or simply want more financial peace of mind while living on a fixed income. That's part of why reverse mortgages, which allow homeowners 62 and older to convert home equity into cash without monthly mortgage payments, have become a popular choice among retirees. But while reverse mortgages are designed to provide an accessible borrowing option to aging households, they aren't available to everyone. In fact, a surprising number of applicants don't qualify. Part of the issue is that the reverse mortgage application process has grown increasingly rigorous over the last decade, so there are significant hurdles borrowers may face when applying. For example, borrowers now face mandatory financial assessments that are required to protect both lenders and borrowers from defaults, which can make it harder to qualify. Understanding those hurdles is critical if you're considering a reverse mortgage in retirement. You don't want to begin the process only to discover that your home or finances won't make the cut. So, what exactly can disqualify you from securing one of these loans, and what should you know before applying? Compare your top reverse mortgage loan options online now. While reverse mortgages can be a valuable tool, lenders must follow strict rules to protect both borrowers and the financial institutions backing the loans. These requirements mean that not every homeowner qualifies. Here are some of the most common disqualifying factors: While you must be at least 62 to qualify for a government-insured Home Equity Conversion Mortgage (HECM), the age requirement becomes tricky when spouses are involved. If your spouse is younger than 62, they can be included as a non-borrowing spouse, but this significantly reduces the loan amount you'll receive since calculations are based on the younger spouse's age. Some proprietary reverse mortgages do allow borrowers as young as 55, though, depending on the lender and state regulations. However, these private loans typically come with stricter credit and income requirements that can disqualify borrowers who would otherwise qualify for an HECM. The age factor also affects your borrowing power throughout the life of the loan. Leaving your home for extended periods, including long-term medical care, can trigger loan repayment requirements, making reverse mortgages unsuitable for seniors who may need nursing home care in the near future. Find out what reverse mortgage loan options you could qualify for here. You need at least 50% equity in your home to qualify, and your reverse mortgage proceeds must be sufficient to pay off any existing mortgage balance. This requirement trips up homeowners who've recently refinanced or taken out home equity loans, as well as those in areas where property values have declined. If your reverse mortgage can't cover your existing mortgage balance entirely, you'll need to bring cash to closing, a requirement that defeats the purpose for many cash-strapped seniors. Property type restrictions also eliminate many potential borrowers. After all, reverse mortgages only work for single-family homes, FHA-approved condos or two- to four-unit properties where you live in one unit. Vacation homes, investment properties and certain types of manufactured homes don't qualify, regardless of their value or your equity position. Your home must meet FHA property standards, and major structural issues, health hazards or neglected maintenance must be addressed before approval. This requirement often surprises longtime homeowners who have deferred maintenance or live in older properties. An FHA appraisal will identify required repairs, and unlike traditional mortgages, where cosmetic issues might slide, reverse mortgage standards are particularly strict about safety and habitability. Certain zoning restrictions can also disqualify properties, and unique or overly large properties may not meet HUD guidelines. Even seemingly minor issues like using your home for short-term rentals can disqualify you, as these are considered commercial uses that violate the primary residence requirement. While reverse mortgages are more forgiving than traditional loans when it comes to credit scores, severe financial events like unresolved bankruptcies, recent foreclosures or federal debt delinquencies can disqualify you. You cannot owe any federal debt, such as federal income taxes or federal student loans, though you can use reverse mortgage proceeds to pay off these debts. Lenders must also verify your ability to pay ongoing property-related expenses like taxes, insurance and maintenance. If your income or assets aren't sufficient to cover these costs, you'll be denied, even if you have substantial home equity. This financial assessment has become increasingly strict, too, with specific residual income requirements that vary by household size and geographic region. You must complete a counseling session with a HUD-approved reverse mortgage counseling agency, and failure to attend this mandatory session results in automatic disqualification. This isn't just a formality, either. During this session, counselors evaluate whether you understand the loan terms and may recommend against proceeding if they believe a reverse mortgage isn't in your best interest. Reverse mortgages can be a powerful financial tool for older homeowners looking to unlock equity without taking on new monthly payments. Qualifying isn't as simple as owning a home and being retired, though. Age restrictions, property requirements, financial obligations and credit history all play a role in determining whether you're eligible. If you're thinking about applying, it can help to get a clear picture of your financial health and your home's condition before meeting with a lender. Addressing potential issues in advance — such as paying down debt, catching up on taxes or handling necessary repairs — can make the process smoother and improve your chances of approval.
Yahoo
30 minutes ago
- Yahoo
I'm a Northwestern Mutual Advisor: Here's the No.1 Mistake Almost All Middle-Class Retirees Make
The problem isn't that people don't save for retirement. There's another mistake that Kyle Wurtzel, a partner and private wealth advisor at Northwestern Mutual, has seen play out countless times with clients: They think retirement will be way cheaper than it actually is. Find Out: Read Next: 'One of the biggest mistakes I see middle-class retirees make is assuming their spending will significantly decrease in retirement,' Wurtzel explained. 'While it's easy to believe expenses will drop dramatically, the reality is they often stay the same or even increase.' Why Retirement Expenses Don't Disappear Like You Think It makes sense to think this way. No more commuting costs, work clothes or daily lunch expenses. But Wurtzel said other costs quickly fill that gap. 'Travel, healthcare, supporting adult children or grandchildren and simply having more free time to spend can all stretch a budget,' he said. 'If your retirement plan doesn't account for that, you may find your savings falling short faster than expected.' The numbers prove his point. According to Northwestern Mutual's 2025 Planning & Progress Study, Americans believe they need $1.26 million to retire comfortably in 2025. Very few middle-class retirees are actually planning to hit that target. Learn More: What To Do Instead of Wishful Thinking Wurtzel's solution is simple. Get realistic about your actual retirement lifestyle, not your hoped-for budget cuts. 'Instead of underestimating your future expenses, build a retirement plan based on your actual lifestyle goals,' he advised. 'That means accounting for inflation, long-term care and how you want to spend your time, not just how you hope to save money. The more realistic your outlook, the more secure your retirement can be.' The Other Mistakes Middle-Class Retirees Make Thinking retirement will be cheaper isn't the only mistake that can cost middle-class retirees. Going It Alone Too Long The second major error Wurtzel sees is people waiting too long to get professional help. Some people also think they don't need an advisor once they retire. 'Another common mistake we see is waiting too long to start working with a financial advisor or assuming you no longer need one once you've reached retirement,' he said. Retirement planning is way more complicated than just saving money. Wurtzel said it involves balancing multiple moving parts that most people have never dealt with before. 'Addressing retirement concerns and financial preparedness requires a personalized, comprehensive approach to financial planning that considers both the accumulation and protection of wealth,' he said. 'A financial advisor can play a crucial role in helping individuals navigate these complexities, identify blind spots and create tailored plans that align with their unique goals and circumstances.' Banking on Social Security as Your Main Plan The third mistake hits close to home for many Americans. They view Social Security as their primary retirement income source. Wurtzel said this approach is both risky and limiting. 'Don't assume Social Security will be enough,' he said. 'It is designed as a safety net, not your entire plan.' Social Security benefits alone won't cut it. Another issue to consider: when exactly you should start taking benefits. The timing decision can majorly impact your monthly income throughout retirement. 'There's also the decision on when to take Social Security which can significantly impact monthly income in retirement,' Wurtzel noted. 'Advisors can help people run the numbers, weigh options and make the decision that's best for their specific situation, especially if they're balancing other retirement income sources.' Building a Retirement Plan That Actually Works Wurtzel focuses on diversification and realistic planning rather than hoping for the best. He knows Social Security's future remains uncertain. That makes backup plans even more important. 'Social Security might look different years from now when you're ready to retire, but, with a larger holistic retirement plan in place, you can avoid relying on it as your sole income source,' he explained. His recommended strategy involves multiple income streams and protection strategies that work together. 'A diversified mix of savings, investments and protection strategies like guaranteed income or long-term care coverage can go a long way in building peace of mind,' Wurtzel said. The Bottom Line on Retirement Reality Wurtzel's message is clear. Successful retirement planning requires honest assessment of your future needs, not optimistic assumptions about future savings. The middle-class retirees who struggle most are often those who planned based on what they hoped retirement would cost rather than what it actually costs. You can avoid the most common retirement planning pitfalls by building realistic expense projections, getting professional guidance and creating diversified income streams beyond Social Security. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 10 Cars That Outlast the Average Vehicle 8 Common Mistakes Retirees Make With Their Social Security Checks This article originally appeared on I'm a Northwestern Mutual Advisor: Here's the No.1 Mistake Almost All Middle-Class Retirees Make 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
