Latest news with #MargueritaCheng
Yahoo
09-07-2025
- Business
- Yahoo
To the rescue: Why you need an emergency fund now
With the stock market at record highs and the unemployment rate at a modest 4.2%, an emergency savings fund might not seem like the most pressing need at the moment. But in fact, this is exactly when you should be thinking about starting one, consumer fintech banking platform Current suggests. The harsh reality is that many Americans do not have the cash to deal with the unexpected. A shocking 54% of Americans don't have enough cash to cover three months' worth of expenses, according to a survey by financial information site Bankrate. Even worse, 24% of people don't have any emergency savings at all. That may not seem like a big deal in boom times. But Future You could very likely be dealing with a different economic landscape. And if you ever run into financial trouble, the stakes will be raised very high, very quickly. 'Maintaining an emergency fund can provide valuable peace of mind: You can go about your business knowing that unanticipated outlays won't derail your financial plan,' says Christine Benz, a personal finance expert at financial research firm Morningstar and author of the new book 'How To Retire'. 'Holding liquid reserves to cover unplanned expenses keeps people from having to tap their long-term investments or rely on unattractive forms of financing, like credit cards, if they need short-term cash.' As an example, let's do our best to peer a few months down the road. The U.S. economy has already contracted at a .5% annual rate in 2025's first quarter, in part thanks to a highly uncertain tariff situation. Meanwhile, employee confidence – those who foresee a positive six-month business outlook – just hit a record low, according to career site Glassdoor. And CEO confidence just had the largest decline in its history, according to the Conference Board. That indicates that economic storm clouds are brewing. So if trouble hits, and you had to deal with a layoff: Would you have enough money to get through lean times, without having to take drastic action like raiding your retirement funds or putting your living expenses on high-interest credit? If the answer is no, then you need to take action. Of course, emergency funds don't materialize instantly: Doing it right requires thoughtful planning about how to get started, how much to accumulate, and where exactly to keep it. A few pointers: Start right away. Presuming you don't have thousands of dollars lying around, this project is going to require the gradual accumulation of small sums. So as the saying goes: The best time to start was yesterday, and the next best time is today. That is best achieved by setting up regular deductions, which is easily arranged with your bank. 'One of the best ways to create an emergency fund is to automate your savings,' says Marguerita Cheng, a financial planner and CEO of Blue Ocean Global Wealth in Gaithersburg, Maryland. 'You can select an amount, as little as $50 every pay period, or on a pre-determined date every month.' Do that before you have a chance to access that money for day-to-day expenses (often known as 'paying yourself first'). Start small, and then hopefully boost that amount over time. Even just $20 a week, over the course of a year, amounts to over $1,000 – a fund that could prove to be critical in times of crisis. Aim high. To truly give yourself a cushion, aim for between 3-6 months' worth of expenses. That way, if you are laid off suddenly, you can rest assured of keeping food on the table and a roof over your head even if you don't find a new job for a while. If you are financially able, aim even higher than that. 'High earners, older workers, or sole/main earners in households with dependents should shoot for closer to a year's worth of expenses,' suggests Morningstar's Benz. Giving yourself that financial breathing room has extraordinary effects: Those who are able to set aside at least $2,000 report a 21% increase in financial well-being, according to a survey by money manager Vanguard. And those who achieve 3-6 months' worth of expenses? Even more than that, with another 13% boost. Make it work for you. Whatever you manage to set aside, there is no reason for it to be earning close to zero, as you might find at many big banks. Instead, you can create a positive snowball effect: Cheng suggests looking into high-yielding accounts, many of which these days offer 4% or more on your money. Also keep in mind that the federal SECURE 2.0 Act also allows for penalty-free withdrawals from retirement funds in cases of emergency (with a limit of $1,000 per year). Wherever you decide to house your emergency savings fund, there is no denying how critical it is – to establishing a first line of defense, keeping your financial plans on track, and helping you sleep at night no matter what economic storms may come. This story was produced by Current and reviewed and distributed by Stacker.
Miami Herald
09-07-2025
- Business
- Miami Herald
To the rescue: Why you need an emergency fund now
To the rescue: Why you need an emergency fund now With the stock market at record highs and the unemployment rate at a modest 4.2%, an emergency savings fund might not seem like the most pressing need at the moment. But in fact, this is exactly when you should be thinking about starting one, consumer fintech banking platform Current suggests. The harsh reality is that many Americans do not have the cash to deal with the unexpected. A shocking 54% of Americans don't have enough cash to cover three months' worth of expenses, according to a survey by financial information site Bankrate. Even worse, 24% of people don't have any emergency savings at all. That may not seem like a big deal in boom times. But Future You could very likely be dealing with a different economic landscape. And if you ever run into financial trouble, the stakes will be raised very high, very quickly. "Maintaining an emergency fund can provide valuable peace of mind: You can go about your business knowing that unanticipated outlays won't derail your financial plan," says Christine Benz, a personal finance expert at financial research firm Morningstar and author of the new book "How To Retire". "Holding liquid reserves to cover unplanned expenses keeps people from having to tap their long-term investments or rely on unattractive forms of financing, like credit cards, if they need short-term cash." As an example, let's do our best to peer a few months down the road. The U.S. economy has already contracted at a .5% annual rate in 2025's first quarter, in part thanks to a highly uncertain tariff situation. Meanwhile, employee confidence – those who foresee a positive six-month business outlook – just hit a record low, according to career site Glassdoor. And CEO confidence just had the largest decline in its history, according to the Conference Board. That indicates that economic storm clouds are brewing. So if trouble hits, and you had to deal with a layoff: Would you have enough money to get through lean times, without having to take drastic action like raiding your retirement funds or putting your living expenses on high-interest credit? If the answer is no, then you need to take action. Of course, emergency funds don't materialize instantly: Doing it right requires thoughtful planning about how to get started, how much to accumulate, and where exactly to keep it. A few pointers: Start right away. Presuming you don't have thousands of dollars lying around, this project is going to require the gradual accumulation of small sums. So as the saying goes: The best time to start was yesterday, and the next best time is today. That is best achieved by setting up regular deductions, which is easily arranged with your bank. "One of the best ways to create an emergency fund is to automate your savings," says Marguerita Cheng, a financial planner and CEO of Blue Ocean Global Wealth in Gaithersburg, Maryland. "You can select an amount, as little as $50 every pay period, or on a pre-determined date every month." Do that before you have a chance to access that money for day-to-day expenses (often known as 'paying yourself first'). Start small, and then hopefully boost that amount over time. Even just $20 a week, over the course of a year, amounts to over $1,000 – a fund that could prove to be critical in times of crisis. Aim high. To truly give yourself a cushion, aim for between 3-6 months' worth of expenses. That way, if you are laid off suddenly, you can rest assured of keeping food on the table and a roof over your head even if you don't find a new job for a while. If you are financially able, aim even higher than that. "High earners, older workers, or sole/main earners in households with dependents should shoot for closer to a year's worth of expenses," suggests Morningstar's Benz. Giving yourself that financial breathing room has extraordinary effects: Those who are able to set aside at least $2,000 report a 21% increase in financial well-being, according to a survey by money manager Vanguard. And those who achieve 3-6 months' worth of expenses? Even more than that, with another 13% boost. Make it work for you. Whatever you manage to set aside, there is no reason for it to be earning close to zero, as you might find at many big banks. Instead, you can create a positive snowball effect: Cheng suggests looking into high-yielding accounts, many of which these days offer 4% or more on your money. Also keep in mind that the federal SECURE 2.0 Act also allows for penalty-free withdrawals from retirement funds in cases of emergency (with a limit of $1,000 per year). Wherever you decide to house your emergency savings fund, there is no denying how critical it is – to establishing a first line of defense, keeping your financial plans on track, and helping you sleep at night no matter what economic storms may come. This story was produced by Current and reviewed and distributed by Stacker. © Stacker Media, LLC.
CNBC
23-06-2025
- Business
- CNBC
These international stocks are well liked by analysts, and they pay dividends
International stocks are having a strong year compared to the S & P 500 – and a few of those global names also happen to offer attractive dividends. The broad market S & P 500 is up just 2% in 2025, which pales in comparison to the double-digit surges the benchmark saw in 2023 and 2024. Uncertainty over tariff policy, shakiness on the path of interest rates – and now the U.S.'s involvement in attacks in the Middle East – have sent stocks on a roller-coaster ride. After the S & P 500's big two-year run, it only makes sense that U.S. investors might want to rethink their international exposure to diversify away from overallocations in Big Tech and U.S. names. "If you looked at international last year, it might've underperformed but this year, international has been a star," said Marguerita Cheng, certified financial planner and chief executive officer of Blue Ocean Global Wealth in in Gaithersburg, Maryland. .SPX VEU YTD mountain S & P 500 vs. the Vanguard FTSE All-World ex-US ETF (VEU) in 2025 Indeed, the Vanguard FTSE All-World ex-US ETF (VEU) saw a return of roughly 5.5% in 2024, but it's now up 14% this year. To get some international exposure, particularly for dividend-seeking investors, she has turned to offerings like the First Trust Target Global Dividend Leaders Portfolio. The strategy in this unit investment trust offers a combination of domestic and international equity names, as well as real estate investment trusts. CNBC Pro scanned through the constituents of that portfolio to find international names that offer dividends. Here are a few of the names that are rated buy or overweight by more than 50% of the analysts covering them, and they have upside of more than 20%, based on FactSet consensus price targets. Panamanian airline company Copa Holdings emerged on the list. U.S.-traded shares are up more than 16% in 2025, and the stock pays a dividend yield of about 6.3%. More than 9 out of 10 analysts covering the name deem it a buy or overweight, and consensus price targets call for more than 50% upside, per FactSet. Raymond James analyst Savanthi Syth reiterated a strong buy rating on Copa in May, noting that the airline delivered "Best In Class 1Q25 Results." The company posted earnings of $4.28 per share on revenue of $899.2 million for the period, topping FactSet consensus estimates of $3.94 per share and revenue of $888.6 million. "Copa noted healthy booking trends with no material change in recent weeks, although visibility is limited to 2-3 months out," Syth wrote. "Demand in North America and the Caribbean appears stable, while Mexico and Central America face headwinds from elevated competitive capacity, notably from Avianca." The analyst's price target of $145 calls for upside of more than 41% from Friday's close. Vale , the Brazilian mining company, is another name that's caught Wall Street's attention. The stock is rated buy or overweight by nearly 60% of the analysts covering it. Consensus price targets call for 32% upside from current levels, per FactSet. In April, Bank of America upgraded the stock to buy from neutral, with analyst Caio Ribeiro saying that the "bottom-up story has improved significantly." In part that's due to the conclusion of a railway dispute and a new management team that includes Gustavo Pimenta as CEO and Marcelo Bacci as CFO. "Vale's discounted valuation combined with its improved bottom-up story offer enough margin of safety to accommodate our more cautious iron ore view," Ribiero said, giving the stock a price target of $11.50. That represents nearly 27% upside from Friday's close. U.S.-traded shares of Vale are up 3% in 2025, and the stock pays a dividend yield of 9.1%. Latam Airlines Group of Chile also made the list. Shares are up 37% in 2025, and the stock pays a dividend yield of 2.7%. Consensus price targets call for 23.2% upside from current levels, per FactSet. Morgan Stanley is overweight on the stock, and analyst Jens Speiss said in a June 10 note that traffic for the airline is up 9.8% quarter to date, topping consensus estimates. "Schedules point to capacity increasing ~11% in June, implying capacity growth of ~8-9% for the full quarter, slightly above consensus (+6.8% Y/Y) and [Morgan Stanley's estimates of] (+7.6%)." — CNBC's Nick Wells and Michael Bloom contributed reporting.
