The Money Section | Is the “October Effect” good or bad for stocks?

͏ ͏Also, no more rate hikes for now… probably. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ [Fort Worth Star-Telegram]( October 5, 2023 • Issue #53 [The Money Section] [Presented by Allianz Travel]( This week, we’re looking at what the Education Department and Biden’s administration are doing to ease federal student loan borrowers into repayments, why there (probably) won’t be any more rate hikes for now, and a helpful retirement savings tool most people are missing out on. When do student loan payments start again? [Student]( Money; Getty Images Student loan payments are back – Here’s the sitch. Federal student loan borrowers will have to resume making loan payments in October after more than a three-year-long break. See what the Education Department and Biden’s administration are doing to ease borrowers into repayments, such as a new and more generous income-driven repayment plan called the SAVE plan. [Read more.]( 🎓 What’s the best repayment plan? With monthly student loan payments restarting in the following weeks, there are now various repayment plans available to borrowers, including the Standard 10-year plan, the new income-driven plans like SAVE (Saving on a Valuable Education) and extended and graduated plans. [See which one is best for you here.]( 💰 Added pressure for Latino students. Latino borrowers tend to earn less than non-Hispanic whites and fall behind on their loans at a higher rate. As such, they’re expected to encounter severe and prolonged challenges when loan payments restart, potentially delaying important financial decisions such as homeownership. [Here’s what you need to know.]( Is the “October Effect” bad or good for stocks? [October]( Money; Getty Images Heightened stock volatility has become a bit of an expected norm in October, leading to the coining of the so-called "October effect." However, recent data shows that stocks tend to perform better in October than perceived, with a 1.4% average gain in the S&P 500 from 2003 to 2022. [Read more.]( 📈 U.S. Treasury yields hit 16-year high. US Treasury yields climbed to 4.70% on Monday, marking a new 16-year high. This increase is supported by investors’ belief that the US economy is doing well thanks to better-than-expected manufacturing data, and the hope that the Federal Reserve won't cut interest rates anytime soon. [Here’s what you need to know.]( 🔴 No more rate hikes for now… probably. Federal Reserve Vice Chair for Supervision, Michael Barr, thinks interest rates are probably high enough for now, aligning with Chair Jerome Powell's cautious approach on future rate hikes. Barr emphasized the question is now how long will rates need to stay high to [achieve the desired inflation target of 2%.]( Retirees are unsure about their long-term care. [Retirees]( Money; Getty Images Many American retirees aren’t sure they’ll be able to lead a comfortable lifestyle during their retirement, with only 23% expressing confidence in achieving this, according to a recent poll. Particularly, 14% of retirees feel "very confident" about affording long-term care, a concern shared by 70% of retirement-age Americans who are estimated to need such care. [Read more.]( 👍 Is claiming social security benefits earlier a good idea? A recent survey revealed that despite 72% of Americans knowing that waiting would result in higher Social Security benefits, only 10% plan to wait until 70 to claim them. Concerns about Social Security running out of money are causing 44% of respondents to claim benefits early, although this could lead to a 20% cut in benefits by 2034. [Here’s what experts advise.]( 💵 Most people are missing out on a helpful retirement tool. The U.S. Census Bureau's Survey of Income and Program Participation indicates that only 18% of Americans use Individual Retirement Accounts (IRAs) for retirement savings. The data shows that 34.6% of Americans prefer using a 401(k) plan when available, and 13.6% participate in a defined benefit or cash balance plan. [Here’s what that means for your retirement savings.]( Smart Money Move Now is THE best time to book holiday trips at the lowest price. [Travel] [Travel]If you’re planning to travel for the holidays, you might want to get a move on. Google and travel experts suggest booking between Sept. 15 and Oct. 15 for the best prices, with mid-October providing the best deals. Need inspiration for your next getaway? Money’s list of the [50 Best Places to Travel in 2023]( has the inside scoop on all the budget-friendly destinations worth your time. And once you’re all set, don’t forget to safeguard your trip with Allianz Travel Insurance, which can potentially save you thousands by protecting you from covered last-minute flight cancellations, lost baggage and eligible medical emergencies. [Protect my trip from delays, cancellations and more with Allianz Travel Insurance.]( Stories we're reading this week - [How Refinancing Student Loans Saves Money]( - [Social Security and the 2024 COLA: Everything You Need to Know]( - [Fed’s Powell Gets An Earful About Inflation And Interest Rates From Small Businesses]( - [Over 70% of Americans Worry Their Retirement Savings Will Get Eaten up by Taxes]( - [Can We Fix the Affordable Housing Crisis With Empty Office Buildings?]( - [Why Gold Looks Headed For A ‘death Cross’ Just 5 Months After Teasing Record Highs]( - [House Prices on the Rise Everywhere. Here Is Where They Are Falling]( The Money Section is written in partnership with Money Research Collective This email was sent to {EMAIL} because you are signed up to receive marketing emails or newsletters from the Fort Worth Star-Telegram. If you no longer wish to receive emails of this type, you may [unsubscribe]( or [update your email preferences](. We are unable to monitor replies to this email. Please [contact customer service]( if you have any questions or concerns. [Privacy Policy]( | [Terms of Service]( | [View in Browser]( Copyright © 2023 Fort Worth Star-Telegram. All Rights Reserved. 2300 W 7th Street Ste. 108, #230, Fort Worth, TX 76107