The (Eventual) End Of Layoffs

[Daily Financial Journal]( [TODAY'S DEAL: Honestly, you should get this book](mailto:editor@dailyfinancialjournal.com?subject=Give+me+my+top+stocks+for+2020&body=Give+me+my+top+stocks+for+2020) Todays Top News [The (Eventual) End Of Layoffs] The (Eventual) End Of Layoffs With all of the stories coming in every day about the big-name companies laying off thousands… if not tens of thousands of workers, you have to wonder if good news will ever come up. As it turns out, we’re actually on the path towards seeing much fewer layoffs: 11.5 million in March, 7.7 million in April, and just 1.8 million in May. And even though there were some job gains in May and June to the tune of 7.5 million, the 21 million new Americans declaring unemployment in May alone make those gains more-or-less nonexistent. It will be a very long time before the number of new jobs created per month exceed the rate of new unemployment. Seeing as we have recently hit the 50-million mark with respect to the number of jobless Americans, we need as many open positions as we can get. What’s even more interesting about these number is how they fare in contrast to the past 5 years of employment data. The years between 2015-2017 saw a higher unemployment level than the number of available jobs. That reversed in 2018 all the way up to the start of pandemic, when the number of openings was greater than the number of active job seekers without work. Here’s the most interesting part: The highest amount of job openings came from the southern states, where they were the earliest and most aggressive in opening up their economies and allowing businesses to start operating again. This may very well change in the near future, especially as some of these states have experienced a new surge in daily COVID-19 infections. But let me know how things are going in YOUR state and city. Are layoffs still rampant or are they finally cooling down? Reply to this newsletter and give us an update! Investing [To Max Out Your 401(k) or NOT to Max it Out… That Is the Question] To Max Out Your 401(k) or NOT to Max it Out… That Is the Question I continue to be surprised by the number of people who are actively NOT contributing any amount of their paycheck to their 401(k), especially considering that their contributions are matched by their employer and only involve pre-tax earnings… Not to mention the larger amount of contribution room you have compared to other tax-friendly accounts. Maxing out your 401(k) only makes sense if you don’t have access to other options. For instance, you need to have a high plan with a high deductible if you want to make contributions towards your Health Savings Account. And deductible IRA contributions may not be possible if your income is too high and you have a workplace retirement plan. On the other hand, you have more flexibility with the IRA when it comes to the wide range of investments you have, the number of brokerages who offer an IRA, and the lack of management fees. And with regard to the HSA, you can withdraw as much money as you want without any penalty before you turn 65. Don’t forget that 401(k) withdrawals before 59.5 years old will result in some tax penalties, so make sure you’re contributing with the knowledge that it’s generally not a good idea to take money out of the account too soon. I would say you should make it your primary goal to max out your 401(k) unless you intend on diversifying yourself at an early age or making withdrawals on a semi-frequent basis. Once that is done, you can load up the other accounts and ride the easy train towards retirement. Reply to this newsletter and let us know how YOU manage your investments into all three of these accounts! I’m eager to see how people approach the topic of investing into tax-advantaged strategies. Don't Miss This [An Actual “Tax Code” Glitch That Pays You Interest] An Actual “Tax Code” Glitch That Pays You Interest For all of you procrastinators who waited to file taxes and did so after April 15th, you may be PAID on interest (3-5% compounded every day). This has happened because of a glitch in the tax code, according to the IRS. Which means that the penalty you would normally pay actually ends up being paid to YOU. This is happening because the IRS has held on to your refunds for far too long, and the clock was switched back due to the extension granted this year. It’s 5% compounded every day for the second quarter of the year, and 3% starting on the first of July. In other words: Those who filed at the very last minute (read: July 15th) are actually going to end up getting larger interest payments than those who filed early on April 15th. The only downside is that the additional amount you get in interest payments will be categorized as taxable income for 2020. So make sure you factor this in when you file your taxes in 2021! [TikTok Has a New Competitor Eager to Rise Up, Thanks to Instagram] TikTok Has a New Competitor Eager to Rise Up, Thanks to Instagram TikTok may not be around for much longer, thanks to a major data breach and the fact that several countries (and workplaces) are banning the app from being used. And since it’s directly connected to China, it leaves a sour taste in the mouths of many loyal Americans. This naturally paves the way for a competitor to take its spot, and Instagram’s new Reels feature appears to be the very thing that will do the Chinese social media app in for good. We don’t know much about Reels, but we have been told they will allow creators to create short videos like TikTok does and that it is scheduled for its first release sometime in August. This feature will naturally be incorporated with the “Explore” tab on Instagram, which exposes users to a wide variety of content based on their browsing history and interests. Personally, I am eager to see this feature released and observe how similar it will be to TikTok. Since the user demographics between Instagram and TikTok are pretty similar, it won’t take a lot of convincing for people ages 12-25 to make the switch. And unlike TikTok, Instagram has had an exponentially growing user base for the past several years. As long as Facebook (who owns Instagram) doesn’t succumb to Chinese influence, this may be the one positive change in the use of social media. [Domino’s: The Most Reliable Pizza Chain in the US Continues to Grow] Domino’s: The Most Reliable Pizza Chain in the US Continues to Grow Domino’s is infamous for its “Delivered in 30 minutes or it’s free” promise, as it has been strictly adhered to for several years without any sacrifice in quality to their flagship product: Pizza that’s hot, fresh, and tastes surprisingly good. They’ve managed to uphold this slogan despite the COVID-19 pandemic and it certainly shows in their reported sales numbers: +16% in Q2 2020 compared to their somewhat disappointing +2% in Q1 2020, leading to profit gains of 37%. Thanks to the business model Domino’s has used for several years, they were able to aggressively scale up their services while their competitors either scaled back their operations or shut down altogether. They were actually able to ADD stores during the pandemic and now have a car-side delivery platform that’s entirely contactless. Very few fast food chains have actually scaled up, with names like Chipotle and Shake Shack coming to mind. Like many people have correctly noted, the restaurant industry is going to become monopolized when the coronavirus is no more. And Domino’s is well on the track towards becoming the leader. [The New City: Everything Accessible Within 15 Minutes or Less] The New City: Everything Accessible Within 15 Minutes or Less Many people are wondering how the architecture of major cities and other highly populated areas will change after the COVID-19 pandemic. Suggestions include better transportation, expanded space for “green” areas and parks, buildings that are energy-efficient, more space for cyclists and walkers, and more investments into cleaner sources of energy. Yet one common suggestion, which was proposed by climate change organization C40 Cities, involves something called the “15 minute city”. And if you can recall your decision to move into the downtown area at any point in your life, this proposal will seem like ordinary common sense. Basically, everything you should need for basic living and entertainment will be located within 15 minutes of your residence by foot or bike. Employment, gyms, shopping, and recreational facilities will all be within easy reach. The fancy name for this is ‘micromobility,’ which aims to lower traffic and thereby reduce the amount of unnecessary emissions. Paris appears to be the shining example of this concept, but many cities in Canada and the US already have some form of this happening and have announced initiatives to create a sense of micromobility no matter where an individual lives within their respective area. By far, the #1 concern will be price. Many of these areas which already exist see higher rent prices of as much as 75%. So even though it’s a great idea in theory, the real question is the number of people who can actually afford to live in a 15-minute city. [Vote Now] PS. How useful did you find today’s update? Vote Now: [Not useful](mailto:editor@dailyfinancialjournal.com?subject=Not+useful&body=Not+useful+at+all+(DailyBrief)) - [It was ok](mailto:editor@dailyfinancialjournal.com?subject=It+was+okay&body=It+was+okay+(DailyBrief)) - [It was good](mailto:editor@dailyfinancialjournal.com?subject=It+was+good&body=It+was+good+(DailyBrief)) - [Very Useful](mailto:editor@dailyfinancialjournal.com?subject=Very+useful&body=Very+useful+(DailyBrief)) [FooterLogo] To ensure you receive our emails, be sure to whitelist us. [Unsubscribe]( | [Update Your Profile]( This email was sent by: Daily Financial Journal 1 INTERNATIONAL HOUSE LONDON, LONDON, EC1A 2BN, UK © Copyright 2020. All Rights Reserved.