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Yahoo
6 days ago
- Business
- Yahoo
Don't Check Your Stock Portfolio on Mondays
If you've ever peeked at your investment portfolio on a Monday morning and felt your stomach drop, you're not alone. For You: Find Out: Mondays have a reputation for being volatile on Wall Street, and it's not just because people are groggy from the weekend. Financial experts agree that checking your portfolio on Monday can stir up unnecessary stress and, worse, lead to rash investment decisions. Here's why it's smarter to wait, and how long-term investors can use this insight to stay calm and committed. Unlike the markets, the news cycle doesn't take weekends off. From corporate earnings leaks to geopolitical events, information builds up over the weekend and is quickly digested by investors come Monday. The result? Market overreactions. 'Monday can typically be a chaotic one. With the markets closed over the weekend, the news continues to give out information that investors break down, and it can lead to swings on Monday,' explained Chad Gammon, CFP and owner of Custom Fit Financial. 'Checking your portfolio on a Monday is like stepping on the scale after a weekend; you probably won't like what you see,' added Andrew Latham, CFP with SuperMoney. 'But it's mostly bloat that disappears by midweek if you stick to your plan.' That makes Monday one of the worst days to judge your portfolio's true health. One or two red numbers might not mean your financial goals are in jeopardy. It may just mean that the market is reacting to the latest headlines. 'Mondays are known for market jitters, and there's even something called the Monday Effect, where stocks often dip or behave erratically at the start of the week, possibly due to weekend news or nerves, or companies releasing bad updates after markets close on Fridays,' said Nicole Carlon, CFP, CDFA, of WiseOak Wealth, LLC. 'Whatever the reason, checking your portfolio on a Monday can give you an unnecessarily negative picture,' she added. Be Aware: Frequent portfolio check-ins may seem responsible, but they can backfire, especially if you're doing it on a day like Monday, when emotions and volatility are high. 'Checking in frequently on your portfolio can lead to some emotional reactions that hurt you financially in the future with impulse decisions,' said Gammon. 'You should consider reviewing your investments on a monthly or quarterly basis at the most to help avoid impulse decisions.' 'I've seen people panic over a red Monday screen, only to watch things bounce back within a day or two,' added Carlon. 'If you're investing for the long haul, reacting to early-week swings can do more harm than good.' The key? Don't panic. The stock market has natural ups and downs, which are often exaggerated early in the week. Stick to your strategy instead of reacting to temporary turbulence. Interestingly, there's no one-size-fits-all when it comes to portfolio check-ins. Some investors actually benefit from seeing daily swings. 'This may sound counterintuitive, but some clients check their portfolios daily. This actually alleviates some of their fears, since they get comfortable with the day-to-day swings,' explained Jake Falcon, CRPC, founder and CEO of Falcon Wealth Advisors. 'If you only check it on Mondays, it can actually induce more fear.' But whether you check it frequently or on a structured schedule like quarterly reviews, the real danger comes from acting on emotion. 'We encourage clients to focus on their financial plan, not the headlines. Your portfolio is a tool to help you reach your goals,' said Falcon. 'Most importantly, we advise our clients to not let their emotions dictate their investment decisions. This is where having a trusted advisor can make all the difference.' Carlon added that it's important to check on your investments intentionally. 'Set time aside every few months to review your portfolio in the context of your long-term goals, not in response to a single rough morning. In the meantime, use Mondays for things like reviewing your budget or setting financial goals, not stress-scrolling your account.' Unless you thrive on stress, Mondays are probably the worst day to check your portfolio. Between weekend news reactions and emotional market swings, you're more likely to make impulsive decisions that derail your long-term goals. So what should you do instead? Develop a review habit that works for your mindset and stick to a sound investment plan. More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? The New Retirement Problem Boomers Are Facing This article originally appeared on Don't Check Your Stock Portfolio on Mondays
Japan Today
24-05-2025
- Politics
- Japan Today
What or where is the Indo-Pacific? How a foreign policy pivot redefined the global map
By Andrew Latham Open a book of maps and look for the 'Indo-Pacific' region – it likely won't be there. Yet the Indo-Pacific is now central to how many countries think about strategy and security. It describes a region spanning two oceans and dozens of countries, encompassing much of the world's trade routes. The Indo-Pacific did not emerge from the patterns of ancient trade, nor from long-standing cultural or civilizational ties. Instead, the concept comes from the realms of political science and international relations. The term can be traced back to the work of German political scientist and geographer Karl Haushofer – a favorite of Adolf Hitler – in the 1920s. But it only really began to take hold in the think tanks and foreign policy-setting departments of Washington and other Western capitals in the late 20th and early 21st centuries. It coincided with a shift in the global balance of power from unipolarity – that is, dominated by one superpower – to multipolarity over the past decade or so. 'Confluence of the two seas' For much of the Cold War, the United States treated the Pacific and Indian oceans as separate theaters of operation. Its military forces in the area, known as U.S. Pacific Command, focused on East Asia and the western Pacific, while the Indian Ocean figured mainly in energy security discussions, tied to the Middle East and the flow of oil through the Strait of Hormuz, which connects the Persian Gulf to the Arabian Sea. Strategic maps during that era divided the world into distinct zones of interest. But China's economic rise, India's growing influence and the increasing strategic significance of sea lanes across both oceans since the end of the Cold War blurred those old dividing lines. The Indian Ocean could no longer be treated as a secondary concern. Nor could the Pacific be thought of in isolation from what was happening further west. Japan helped give political voice to this emerging reality. In 2007, Prime Minister Shinzo Abe stood before India's parliament and spoke of the 'confluence of the two seas' − an image that deliberately linked the Indian and Pacific oceans as a single geopolitical space. Abe's message was clear: The fate of the Pacific and Indian oceans would be increasingly intertwined, and democratic states would need to work together to preserve stability. His vision resonated in Washington, Canberra and New Delhi, and it helped set the stage for the revival of the Quadrilateral Security Dialogue, or Quad. In 2018, the United States made the shift official, renaming U.S. Pacific Command as U.S. Indo-Pacific Command. What might have seemed like a bureaucratic rebranding was in fact a serious strategic move. It reflected the growing recognition that the rise of China − and Beijing's growing influence from East Africato the South Pacific − required an integrated regional approach. Framing the challenge in Indo-Pacific terms allowed Washington to strengthen its ties with India, deepen cooperation with Australia and Japan, and reposition itself as a maritime balancer across a vast strategic arc. The phrase 'free and open Indo-Pacific' quickly became the centerpiece of American regional diplomacy. It emphasized freedom of navigation, respect for international law, and democratic solidarity. But while the rhetoric stressed inclusivity and shared values, the driving force behind the concept was clear: managing China's expanding power. The Indo-Pacific framework allowed Washington to draw together a range of initiatives under a single banner, all aimed at reinforcing a rules-based order at a time when Beijing was testing its limits. Rejecting zero-sum thinking Not every country has enthusiastically embraced this vision. Many Southeast Asian states, wary of being drawn into a competition between the United States and China, have approached the Indo-Pacific concept with caution. The Association of Southeast Asian Nations' document titled Outlook on the Indo-Pacific, released in 2019, deliberately avoided framing the region in confrontational terms. Instead, it stressed dialogue and the centrality of Southeast Asia − a subtle rebuke to visions that seemed to pit democracy against authoritarianism in stark, zero-sum terms. The breadth of the Indo-Pacific concept also raises difficult questions. It covers an enormous range of political, economic and security realities. The priorities of small island states in the Pacific differ sharply from those of major continental powers such as India or Australia. Treating the Indo-Pacific as a single strategic space risks flattening these differences and could alienate smaller nations whose concerns do not always align with those of the major players. The Indo-Pacific today Recent shifts in Washington's foreign policy also complicate matters. The Trump administration's skepticism toward alliances created doubts among regional partners about the reliability of U.S. commitments. Even as the Indo-Pacific idea gained traction, questions remained about whether it represented a long-term strategy or a short-term tactical adjustment. The Biden administration maintained the Indo-Pacific framework, launching the Indo-Pacific Economic Framework for Prosperity to provide an economic counterpart to the security-heavy focus of earlier years. But the central strategic challenge remains the same: how to manage China's rise without forcing the region into a rigid geopolitical divide. For now, the Indo-Pacific framing has reshaped how policymakers, military planners and diplomats think about Asia's future. It provides a vocabulary for coordinating alliances, building new partnerships and addressing the challenges posed by China's expanding influence. Yet its long-term success will depend on whether the framework can genuinely accommodate the region's diversity − and whether it can be seen as something more than just a mechanism for great power competition and a thinly veiled strategy to contain China. Andrew Latham is Professor of Political Science, Macalester College. The Conversation is an independent and nonprofit source of news, analysis and commentary from academic experts. External Link © The Conversation
Yahoo
12-04-2025
- Business
- Yahoo
Can I cancel my 401(k) and cash out while employed?
(NewsNation) — It is possible to cancel your 401(k) and cash it out while you're still employed, but it comes at a cost. Andrew Latham, a certified financial planner, told InCharge Debt Solutions, 'Borrowing from a 401(k) can be a tempting option because it provides access to funds quickly and without a credit check. However, borrowing from your 401(k) should be considered carefully due to the potential impact on your long-term retirement savings.' Technically, you can withdraw from your 401(k) plan before you retire, but only under certain circumstances. What is the Rule of 72 in investing? According to Empower, you can withdraw from a workplace retirement plan if: You die or suddenly become disabled Your plan is terminated and isn't replaced You reach 59 1/2 years old You experience a financial hardship If you are under 59 1/2, you typically can't take early withdrawals from your 401(k) employer plan. And, if you are able to withdraw, you could still be responsible for penalties and taxes. Withdrawing funds from your 401(k) before retirement can end up being pretty expensive. Typically, if you take money out before you turn 59 1/2, Empower says you will likely have to owe the following: Federal income taxes that are taxed at your marginal tax rate. A penalty of 10% of the amount you withdrew. Any state income tax that is relevant. Social Security calculator: Figure out your monthly benefits For example, if you are a single person with an income of $75,000, a withdrawal of $25,000 from your 401(k) would cost you $5,500 in federal income taxes. There will also be a 10% penalty, which would be another $2,500 you would need to pay. So, withdrawing $25,000 early would mean you only actually get $17,000 of it in the end. You may also have to pay state income tax depending on what state you live in. There are some instances where you can avoid the 10% penalty fee, according to Empower. However, you won't be able to avoid paying any federal or state income taxes owed on the amount you withdraw early. You can avoid the 10% penalty if: You give birth to a child or adopt a child. In this case, you can withdraw up to $5,000 for each qualified birth or for adoption expenses. You become disabled or you're a beneficiary of someone else's 401(k) who dies. You lost income due to a federally declared disaster. In this case, you can take out up to $22,000. You are in a domestic violence situation. In this case, you can take out $10,000 or 50% of your balance, whichever amount is lower. You have a personal or family emergency. Each individual with a 401(k) can withdraw up to $1,000 each year for these types of emergencies. You take multiple equal, equal payments. You have medical expenses that weren't reimbursed and exceed 7.5% of your annual income after taxes. You're in the military and have been called to active duty. You leave your job during or after the year you turn 55 years old Some employers won't allow you to take money out of your 401(k) while you're still employed with the company. You will need to check with the company that administers your plan to see what your options are. Typically, you will have the option to take out a 401(k) loan, withdraw money due to hardship or do an in-service distribution, according to Yahoo Finance. Social Security stops phone service cuts, will have 'anti-fraud check' If you want to take out a 401(k) loan, you can take a lump sum of your earnings and replace the funds with payments from your paychecks. However, you will have to pay principal and interest in these payments. Some employers will only allow you to take out money if you are experiencing some type of financial hardship. However, other employers could let you borrow money to buy a home, lease a car or fund another large expense, according to Yahoo Finance. If you can show you have an immediate need for funds, you could also take from your 401(k). Some examples of hardship include money to avoid foreclosure on your home and a down payment on your first home. However, if you choose a hardship withdrawal, you won't be able to contribute to your plan for six months. IRS deadline for stimulus checks approaching, here's if you qualify In-service distributions are rare, according to Yahoo Finance, but this can let you roll your assets over into an IRA. But, you will have larger fees and future distributions could be restricted. Before making any decisions on your 401(k) or other retirement plans, you should contact a certified financial advisor. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
02-04-2025
- Business
- Yahoo
How Financial Literacy Can Help You Avoid Mistakes and Build Wealth
Financial literacy isn't widely taught in schools, and many people carry this crucial knowledge gap with them throughout their lives. In the U.S., financial literacy has been stuck for years at around 50%, according to research by the World Economic Forum. Read Next: Check Out: Without strong financial literacy, we simply can't make informed decisions about money. But how exactly does financial literacy benefit us? Here are 5 ways it can help you avoid costly mistakes and build wealth. If you're unfamiliar with high-yield savings accounts, bonds or other interest-bearing vehicles, you might assume your best bet is a traditional savings account. But stashing cash in a low-interest savings account is a surefire way to lose money over time, as these accounts typically don't keep up with inflation. 'While keeping money in a savings account feels 'safe,' it's actually losing value over time if the interest rate is lower than inflation,' said Andrew Latham, CFP, content director at 'Financial literacy helps you understand the risk of playing it too safe. By learning about investments like index funds, high-yield savings accounts, and bonds, you can grow your money instead of watching it slowly erode.' If you're not taking full advantage of tax-advantaged accounts, you're leaving money on the table — money that could be a lifesaver in your retirement. Many people don't realize the impact of these accounts until it's too late. 'A 401(k) match from your employer is literally free cash, yet many people contribute less than the match or nothing at all,' Latham said. 'Roth IRAs and HSAs also offer huge tax benefits that can help build long-term wealth. Financial literacy teaches you how these accounts work, how to reduce your taxable income, and why compounding interest makes early investing a game-changer.' Explore More: Many of us don't grasp the importance of budgeting until we're adults managing expenses on our own. Unfortunately, failing to budget properly can lead to debt and financial stress, even for those earning higher incomes. 'In addition to helping you realize the dangers of indulging in a lifestyle you can't sustain, another way financial literacy can help you avoid mistakes and build wealth is that it teaches you how to avoid the mistake of living beyond your means,' said Aaron Razon, a personal finance expert at Couponsnake. 'Financial literacy doesn't only help you realize that you need to budget your expenses — it also shows you that your budget shouldn't prioritize your wants but should instead cater to your needs and financial goals.' Credit card debt is particularly nefarious because of the astronomical interest packed into it, which can quickly spiral out of control. If you lack financial literacy, you may fall for this trap without realizing the long-term consequences. 'Credit card companies love financially uninformed consumers because they make billions off high-interest debt,' Latham said. 'Financial literacy helps you understand the real cost of carrying a balance — a $2,000 credit card charge can take years to pay off if you only make minimum payments. Learning how to manage debt, negotiate lower interest rates, and prioritize payoff strategies like the avalanche or snowball method can save thousands of dollars in unnecessary interest payments, freeing up more money to invest and grow wealth.' So many of life's biggest milestones — marriage, buying your first home, having kids, retirement — come with major financial implications. Without proper knowledge, it's easy to make expensive mistakes that can harm your long-term financial security. 'Financial literacy provides the tools to understand these impacts, plan accordingly and avoid costly mistakes,' said Melissa Murphy Pavone, CFP, CDFA, founder of Mindful Divorce Partners. 'I often see how a lack of financial knowledge can lead to inequitable divorce settlements or long-term financial insecurity — mistakes that could be avoided with better education.' Looking to build a legacy? for expert advice and smart moves you can make today.4 Things You Should Do if You Want To Retire Early Warren Buffett's Advice on Building Generational Wealth May Surprise YouI Broke the Generational Cycle of Debt -- Here's How I Did It This article originally appeared on How Financial Literacy Can Help You Avoid Mistakes and Build Wealth
Asia Times
01-04-2025
- Business
- Asia Times
US Navy's latest frigate drifting into familiar troubled waters
The US Navy's newest frigate program is sailing straight into the same storm that sank its last two major shipbuilding efforts: rising costs, design chaos and shrinking credibility. Last month, the US Government Accountability Office (GAO) reported that despite repeated assurances of lessons learned from the troubled Littoral Combat Ship (LCS) and Zumwalt-class (DDG 1000) destroyer programs, the US Navy's Constellation-class frigate (FFG 62) is repeating the same acquisition missteps. In all three cases, the US Navy committed to ship construction before achieving stable designs, resulting in cascading delays, soaring costs and diminished capabilities, according to the GAO's latest findings. Like the LCS, the Constellation-class frigate began construction with an overstated design completion date, later revealed to be only 70%, not 88%. This led to a three-year delay for the lead ship and a US$3.4 billion commitment to incomplete designs. Like DDG 1000, where immature technologies and unstable requirements inflated unit costs sevenfold, the frigate now faces technical risks from unproven propulsion and machinery control systems. Further, the frigate's modifications have eroded its advertised commonality with the Italian parent design, undermining the program's original risk-reduction rationale and prompting it to sacrifice speed in compensation for weight growth — a trend that parallels the LCS and Zumwalt's ultimate delivery of less than promised. The GAO stresses that history will continue to repeat itself until the US Navy abandons its flawed acquisition playbook and adopts leading commercial ship design practices, such as completing functional designs before construction, which jeopardizes the fleet's readiness and credibility. The Constellation class was envisioned as a general-purpose naval combatant, akin to the 1970s Oliver Hazard Perry-class frigates. A December 2024 US Congressional Research Service (CRS) report notes that the class intentionally avoids introducing new, unproven technologies and relies instead on systems already deployed across the US Navy to reduce costs. The CRS report mentions the Aegis Combat System and Enterprise Air Surveillance Radar as pre-existing systems to be used in the Constellation class, distinguishing it from the LCS, which struggled with immature systems, such as its propulsion system and multi-mission modules. Emphasizing the need to replace the LCS, Andrew Latham argues in a February 2025 article for 1945 that even with missile upgrades, the type would be little more than a liability in a possible Pacific conflict due to a weak hull, a lack of long-range weapons, and limited endurance to contribute in a fight against China's People's Liberation Army Navy (PLAN) blue-water fleet consisting of frigates, destroyers and cruisers. However, a May 2024 GAO report notes that the Constellation-class frigate's design has experienced unplanned weight growth exceeding 10% of the initial estimates due to incomplete design information and underestimations when adapting the foreign parent design to US Navy requirements. The report mentions that growth has raised concerns about the frigate's ability to meet its speed requirements, leading the US Navy to consider reducing the ship's speed as a potential solution. However, in a November 2024 article for 1945, Robert Farley notes that extra weight could make it difficult for the Constellation class to keep pace with US carriers and destroyers, and may also complicate future upgrades. A CRS report from last month describes the operational roles of the Constellation-class frigates. The ships are designed as multi-mission platforms capable of anti-air, anti-surface, antisubmarine and electromagnetic warfare, enabling them to operate independently or as integral units within carrier strike groups, surface action groups (SAG) or allied naval formations. The report states that the US Navy plans to conduct an iterative procurement of at least 20 ships, with additional ships anticipated under the long-range shipbuilding plan. Once production stabilizes, the phased delivery of these frigates will incrementally provide operational commanders with adaptable assets for both blue-water and littoral missions. However, US shipbuilding capabilities are insufficient for the Constellation-class program's requirements. A January 2025 US CRS report explicitly links design instability and delays with operational-level uncertainty for fleet planning. It highlights that the FFG-62 lead ship is now facing an approximate 36-month delay, more than double the initial delay reported, due to design workforce limitations and incomplete design work before construction. The report notes that this is part of a broader pattern across multiple shipbuilding programs, creating what it refers to as an 'extraordinary situation' unseen since World War II. According to the report, these delays and the US Navy's inability to meet projected procurement rates undermine the access of combatant commanders to expected assets and complicate force generation planning. Despite these challenges, the US Navy's persistence in pursuing the Constellation class underscores the need to reconstitute its surface force to counter China's growing naval presence and power in the Pacific. Underscoring this point, the US Department of Defense's (DOD) 2024 China Military Power Report states that the PLAN is the world's largest navy, comprising 370 ships and submarines, including more than 140 major surface combatants. In contrast to the Constellation class, which is still under construction, Eric Wertheim mentions in a Proceedings article from last month that China has commissioned the Luohe, the first Jiangkai III-class (Type 054B) frigate, signifying a notable advancement in the PLAN's capabilities. Wertheim notes that the frigate, built at Hudong Zhonghua Shipbuilding in Shanghai, boasts enhanced stealth, firepower and technology compared to its predecessor, the Jiangkai II class. He says that the Type 054B, equipped with a 32-cell vertical-launch system (VLS), advanced active electronically scanned array (AESA) radar, and expanded antisubmarine warfare capabilities, positions China for diversified naval operations. He notes that the Luohe has been assigned to the PLAN North Sea Fleet while additional ships are in production, underscoring a strategic emphasis on modernizing China's naval forces. In contrast, the Constellation class may risk becoming a symbol of US shipbuilding dysfunction and decline. Alistair MacDonald mentions in a Wall Street Journal (WSJ) article last month that the US Navy faces a critical challenge in shipbuilding as delays and cost overruns persist, undermining its strategic position amid intensifying global competition. To underscore the point, MacDonald says that the Constellation-class frigate, the first of a new frigate class intended to address fleet deficiencies, remains years behind schedule and over budget despite efforts to accelerate production by adopting a proven Italian design. He says that while US allies favor purchasing advanced American fighter jets and missile systems, American warships struggle to compete internationally due to high expenses and outdated infrastructure. MacDonald emphasizes that with China producing naval vessels at a superior pace and cost efficiency, the US must confront systemic inefficiencies in shipbuilding to restore naval dominance.
