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Yahoo
13 hours ago
- Business
- Yahoo
Finally hit it rich? Here are the top 5 reasons to never share that with anyone (even your closest friends)
If you've managed to accumulate some wealth, showing it off can often be tempting. After all, what's the point of success if you can't indulge in it? However, a growing cohort of ultra-wealthy Americans are trying to conceal their wealth rather than flaunt it openly. Here are five reasons why stealth wealth or quiet luxury lifestyles are gaining traction and why you should consider concealing the true extent of your fortune. 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 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Being publicly wealthy could make you a prime target for thieves, fraudsters and criminal gangs. According to Silicone Valley Bank's coverage of a study by Experian and the Department of Justice, identity theft is 43% more prevalent among the affluent. Organized criminal gangs have targeted celebrities like Kim Kardashian and Paris Hilton, while high-profile athletes in major leagues such as the NFL and NBA are at risk of targeted home invasions, according to an the FBI report obtained by ABC News. Business Insider even reported that Warren Buffett evaded a kidnapping in the 1980s. With this in mind, downplaying your fortune could be the best way to safeguard your privacy and protect your family. Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it Money has an undeniable impact on your personal relationships, especially if your loved ones are not on the same page as you when it comes to finances. While it's not a good idea to hide your financial standing from a legal spouse, new friendships and certain family members may be another story. Roughly 57% of Americans admit to feeling envious of someone else's financial situation, according to a 2023 finance survey. Put simply, hiding your income and wealth could be a great way to sustain your relationships. One of the pitfalls of flaunting your wealth is that it's difficult to stop. Once you've bought a fancy house or luxury vehicle, downgrading could be embarrassing which puts pressure on you to sustain that lifestyle. In other words, you've placed yourself in golden handcuffs and must keep up appearances forever. Instead, you could live below your means and avoid lifestyle creep to eliminate the social pressure. Wealth can be isolating, according to therapists surveyed by CNBC. 'They live in such a rarified place of the top 1% where there are very few people who share the realities of their world,' said Paul Hokemeyer, the founding principal of Drayson Mews clinic. Living a modest lifestyle could help you nurture and sustain your existing social network and ensure you maintain a sense of relatability and humility. Instead of constantly splurging on tangible items, you may choose to indulge in quiet luxuries that make your daily routine more efficient. Whether you're hiring a contractor, shopping for luxury goods or making a major real estate purchase, appearing wealthy can actually work against you. Sellers often assume you can afford to pay more, reducing your chances of scoring a deal or meaningful discount. In fact, the practice of adjusting prices based on a buyer's perceived ability to pay — known as price discrimination — is a well-studied phenomenon in economics. For that reason, keeping your financial status under wraps may offer a strategic advantage, helping you negotiate more effectively and secure fairer, more competitive pricing. Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead 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 This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Yahoo
3 days ago
- Automotive
- Yahoo
Access to credit is tightening — here's what it means for your next auto loan
Access to credit is tightening for all consumers, but particularly for consumers with subprime credit scores of 699 or lower. Both new and used vehicle prices remain high, and approvals for subprime borrowers decreased sharply in April, continuing a trend from 2024. Pre-tariff inventory is declining, and vehicles manufactured or imported with the Trump administration's new tariff policies are expected to send prices higher. Subprime borrowers may still be able to buy a car by seeking out used vehicles, exploring banks or credit unions and considering private party purchases. Auto sales from April and the first part of May saw an uptick from February and March, but they are expected to dip as existing vehicle inventory is depleted and new tariffs affect vehicles arriving on car lots. While experts agree tariffs will increase vehicle prices, no one is sure exactly when these increases will happen — largely because the auto market moves slowly. The true financial impact may not be clear for months to come. At the same time, auto loan delinquencies have been increasing. According to TransUnion, delinquencies in the fourth quarter of 2024 rose to 1.47 percent, exceeding a high set in 2009 during the Great Recession. Lenders are responding by becoming more cautious with who they extend auto loans to. Denials are increasing for those with subprime credit, and interest rates are rising for all borrowers except those with excellent credit. Unless you need a car in the near future, it may make sense to wait or consider leasing. In the meantime, you can focus on building your credit score to ensure you qualify for what is likely to be a tight market. The average credit score required for new auto loan approval has also been increasing. During the fourth quarter of 2024, lenders favored borrowers with good to excellent credit by offering lower interest rates, according to Experian's State of the Automotive Finance Market. Interest rates for subprime borrowers increased while approvals decreased, leading to a gap in affordable financing. Average interest rates by credit score New car loans Used car loans Super prime 4.77% 7.67% Prime 6.40% 9.95% Near prime 9.59% 14.46% Subprime 13.08% 19.38% Deep subprime 15.75% 21.81% Source: Experian State of the Automotive Market, Q4 2024 Rate of approval by credit score New car loans Used car loans Super prime 48.87% 22.57% Prime 36.57% 37.01% Near prime 10.88% 18.75% Subprime 5.27% 18.81% Deep subprime 0.41% 2.86% Source: Experian State of the Automotive Market, Q4 2024 David Thomas, director of content marketing at CDK Global, says that auto loan access has been 'impacted by general credit trends.' He notes that credit access — and credit denials — are at their highest points in a decade. Cox Automotive data shows this trend is continuing. April data indicates that the share of subprime borrowers decreased by 280 basis points, or 2.8 percent, year-over-year, and qualifying with poor credit may become more difficult if the cost of vehicles rises significantly. Auto loan approval rates increased by 20 basis points, or 0.2 percent, in May, according to recent data from Cox Automotive. But while approval rates increased overall, they decreased sharply for those with subprime credit. This aligns with Experian's data, which showed that the average credit score of borrowers purchasing a new vehicle has increased from 744 in 2020 to 755 in late 2024. The trend is similar for used vehicles, with the average credit score increasing from 681 to 691 over the same period. 2020 2021 2022 2023 2024 Average credit score for new car loans 744 746 750 755 755 Average credit score for used car loans 681 684 687 691 691 A number of factors could be making lenders wary of borrowers with weaker credit. Historically high car prices coupled with high interest rates have made affordability an issue for most consumers. An increasing number of those consumers have chosen longer loans to offset high prices, even though longer terms are correlated with higher delinquency rates. Now, with tariffs and inflation looming, many lenders are seeking borrowers that present less risk. A recent report from Santander Bank shows that, in the first quarter of 2025, close to half of middle-income Americans delayed purchasing a vehicle in the past year due to cost. That pent-up purchasing power was released in April and the beginning of May, when demand for vehicles increased. This demand raised the average price of new vehicles to $48,699, a 2.5 percent increase from March, according to a Kelley Blue Book report. This was a significant uptick from the typical 1.1 percent increase expected from April sales, which are often fueled by tax refunds. Bankrate's take: Many experts don't believe these numbers will last. Vehicle prices are expected to increase in the coming months as pre-tariff automotive stock dwindles and new models arrive on car lots. Meanwhile, the Manheim Used Vehicle Value Index (MUVVI), which tracks the price dealerships pay for used vehicles, increased by 2.7 percent from March to April. This indicates the price of used vehicles is increasing, which may explain why used vehicle sales dipped. With a shortage of inventory and increasing demand, it seems likely that the price of used vehicles will stay close to the price of new vehicles. To get the most value — and a manufacturer warranty — look into a certified pre-owned (CPO) car. Despite what may feel like an uphill battle, consumers shopping for a vehicle can still find ways to find car loans for bad credit and buy an affordable car. Pre-tariff 2024 and 2025 vehicles are still on lots for the time being, and buyers can time their purchases around traditional holiday car sales like Memorial Day and Labor Day. And while rates are high for those with less-than-perfect credit, exploring new financing options is a helpful way to find a good deal. 'I would say explore credit unions, look beyond just banks,' advises Sean Tucker, Lead Editor at Kelley Blue Book. Historically, credit unions have been more willing to work with borrowers with subprime credit, and typically, auto loans from credit unions offer some of the lowest interest rates. This is backed up by Cox Automotive's data, which showed that in April credit was most accessible through credit unions. Another option is a bad credit auto loan, but consumers should keep in mind that these loans often have high interest rates and more fees than other auto loans. Subprime borrowers can expect an interest rate of around 13 percent for new car loans and a whopping 19 percent for used cars. Those in the deep subprime category fare worse, and some may face an interest rate over 21 percent. For now, average car loan interest rates are likely to remain high, further exacerbating the lack of affordable options in the auto market. Tucker also advises buying a used car privately. 'Private party purchases are always cheaper than what's on the sales line.' Buying privately doesn't always require you to have cash for the car, either, since private party auto loans are available from select lenders. Still, lenders set similar eligibility requirements, so it may be difficult for a subprime shopper to qualify for a private party auto loan. As always, consumers will benefit most from paying down debt, catching up on unpaid bills and focusing on rebuilding credit. This process takes time, so while it may not be the fastest way to get behind the wheel, it is an important step to access credit at a lower interest rate in the future. By building your credit score, you may be able to qualify for more competitive rates in the future, regardless of how the auto industry shifts. The current auto market isn't great for buying for a number of reasons, particularly for those with low credit scores or no credit history. Yet there are still options for those in need of auto financing. Credit unions and private party purchases may be the right course for an affordable car payment, but it doesn't hurt to build credit and wait out the market. The auto industry plans years in advance, so a few bumpy months won't necessarily lead to a bleak, unaffordable future for vehicle financing. 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
Yahoo
3 days ago
- Politics
- Yahoo
N.L. privacy commissioner investigating government response to school cyberattack
The province's information and privacy commissioner is investigating a security breach that saw hackers steal the private information of nearly 300,000 current and former students and teachers in Newfoundland and Labrador. In a news release sent Friday afternoon, Privacy Commissioner Kerry Hatfield said part of that investigation will look at whether the Education Department has taken enough action in the wake of the PowerSchool attack to make sure it doesn't happen again. "Before launching this investigation I felt it was appropriate to give the department sufficient time to assess the impact of the breach, notify those who were impacted, and take steps to adjust its policies and practices," she said in the release. "It has now had ample opportunity to do so." The late-December cyberattack struck PowerSchool, the data management software used by the English, French and Indigenous school systems — along with other school districts across North America. According to the Education Department, on Dec. 28 hackers stole the information of approximately 271,000 students and 14,400 teachers across Newfoundland and Labrador's English, French, and Indigenous school systems. The stolen data includes contact information, date of birth, MCP numbers, medical alert information, custodial alert information, some social insurance numbers and other related information. Some of that data dates back to 1995. The department said about 75 per cent of the stolen student data belongs to people who are no longer in the K-12 system. The company offered two years of free identity and credit monitoring to any of the victims, and has since hired Experian and TransUnion to provide those services. "The purpose of my investigation is not only to assess whether the department has responded adequately to the breach, but also to ensure that measures taken by the department to prevent future occurrences of this nature are sufficient," said Hatfield. "People have a right to expect that when a public body collects their sensitive personal information that it will do so in accordance with the law." Download our free CBC News app to sign up for push alerts for CBC Newfoundland and Labrador. Click here to visit our landing page.
Yahoo
4 days ago
- Business
- Yahoo
Experian's (LON:EXPN) earnings growth rate lags the 15% CAGR delivered to shareholders
One simple way to benefit from the stock market is to buy an index fund. But if you choose individual stocks with prowess, you can make superior returns. For example, Experian plc (LON:EXPN) shareholders have seen the share price rise 43% over three years, well in excess of the market return (5.3%, not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 2.9% in the last year, including dividends. Although Experian has shed UK£1.2b from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During three years of share price growth, Experian achieved compound earnings per share growth of 0.5% per year. In comparison, the 13% per year gain in the share price outpaces the EPS growth. So it's fair to assume the market has a higher opinion of the business than it did three years ago. That's not necessarily surprising considering the three-year track record of earnings growth. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). It might be well worthwhile taking a look at our free report on Experian's earnings, revenue and cash flow. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Experian the TSR over the last 3 years was 50%, which is better than the share price return mentioned above. This is largely a result of its dividend payments! Experian shareholders are up 2.9% for the year (even including dividends). But that was short of the market average. It's probably a good sign that the company has an even better long term track record, having provided shareholders with an annual TSR of 6% over five years. It's quite possible the business continues to execute with prowess, even as the share price gains are slowing. It's always interesting to track share price performance over the longer term. But to understand Experian better, we need to consider many other factors. Take risks, for example - Experian has 1 warning sign we think you should be aware of. If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
4 days ago
- Business
- Yahoo
Experian's (LON:EXPN) earnings growth rate lags the 15% CAGR delivered to shareholders
One simple way to benefit from the stock market is to buy an index fund. But if you choose individual stocks with prowess, you can make superior returns. For example, Experian plc (LON:EXPN) shareholders have seen the share price rise 43% over three years, well in excess of the market return (5.3%, not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 2.9% in the last year, including dividends. Although Experian has shed UK£1.2b from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During three years of share price growth, Experian achieved compound earnings per share growth of 0.5% per year. In comparison, the 13% per year gain in the share price outpaces the EPS growth. So it's fair to assume the market has a higher opinion of the business than it did three years ago. That's not necessarily surprising considering the three-year track record of earnings growth. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). It might be well worthwhile taking a look at our free report on Experian's earnings, revenue and cash flow. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Experian the TSR over the last 3 years was 50%, which is better than the share price return mentioned above. This is largely a result of its dividend payments! Experian shareholders are up 2.9% for the year (even including dividends). But that was short of the market average. It's probably a good sign that the company has an even better long term track record, having provided shareholders with an annual TSR of 6% over five years. It's quite possible the business continues to execute with prowess, even as the share price gains are slowing. It's always interesting to track share price performance over the longer term. But to understand Experian better, we need to consider many other factors. Take risks, for example - Experian has 1 warning sign we think you should be aware of. If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
