Author: Money Mechanics

Key Takeaways Starbucks CEO Brian Niccol made $95.8 million in 2024, while the median barista at the company made just $14,674, according to the AFL-CIO.The CEO-to-worker pay ratio of 6,666-to-1 is the largest among all S&P 500 companies.The overwhelming majority of Niccol’s compensation is in the form of stock awards, most of which are tied to Starbucks’ share performance. Starbucks (SBUX) CEO Brian Niccol made $95.8 million in 2024. The average barista made just $14,674.  That’s a ratio of 6,666-to-1, the largest CEO-to-worker pay gap among S&P 500 companies, according to a new report from the Institute for Policy Studies. While…

A big Wall Street bank got more cautious about two U.S. shipping giants’ shares today.  Bank of America analysts on Thursday downgraded both FedEx (FDX) and UPS (UPS), setting price targets on shares that were among the lowest on Wall Street. The analysts cut their rating on FedEx to “neutral” from “buy,” trimming their target by $5 to $240, one of the lower ratings compiled by Visible Alpha and below the average above $269, though above recent prices. Their move on UPS was more dramatic, swapping a neutral rating for an “underperform” and setting an $83 target that is the…

KEY TAKEAWAYS Strong earnings, pending interest rate cuts and the AI boom could mean stocks keep rising in the next year, according to two big Wall Street Banks.Deutsche Bank raised its year-end target for the S&P 500 to 7,000 from 6,550 on Wednesday, while Barclays lifted its 2025 target to 6,450 from 6050 and its 2026 target to 7,000.Their bullish views came as the benchmark index closed at a record high Wednesday. Strong earnings, interest rate cuts and a resilient AI boom could mean stocks keep rising in the next year, according to two big Wall Street Banks. Deutsche Bank on…

The latest Consumer Price Index (CPI) report showed that President Donald Trump’s tariff policies continue to have a moderate impact on cost pressures, but the Federal Reserve is still expected to lower the federal funds rate when it meets next week.According to the Bureau of Labor Statistics, headline CPI was up 0.4% month over month in August, higher than the 0.2% rise seen in July and the 0.3% increase economists expected.The CPI was 2.9% higher year over year, a quicker pace than the month prior and the largest annual increase since January. Still, the results arrived in line with estimates.…

Even if you withhold taxes on your retirement benefits, you might be surprised by an IRS estimated tax penalty at year-end.That’s because income sources like capital gains, dividends, and interest are not eligible for automatic tax withholding. And retirees face a particular risk of incurring an IRS underpayment penalty since they don’t have an employer automatically withholding taxes on their behalf.For example, the default withholding rate for a traditional IRA is 10%, which may not be enough to cover your total tax bill. You also can’t set up a state tax withholding on Social Security benefits, which could lead to…

Key Takeaways For the most part, home listing prices increased within three years after a major disaster. While there may be an initial drop as hard-hit areas rebuild, prices usually bounce back because of reduced housing supply, which increases buyer competition. If your home is in an area hit by a natural disaster and you think you may want to sell, your prospects may be better than you’d imagine. For potential buyers, “disaster discounts” may be small or non-existent unless you act quickly. You might expect home prices to plummet after a major disaster like Hurricane Harvey. The storm brought…

Being a sports fan can be expensive. Not only are there tickets, clothing and other goods associated with supporting your favorite team, but you also need a way to watch them.On this front, streaming services come into play. They’re easy to set up, and you can tailor options to best suit your viewing needs. However, this comes at a significant cost.The New York Times found the average NFL fan will spend up to $634 to stream games this year. They came to this total by factoring in the following: From just $107.88 $24.99 for Kiplinger Personal Finance Be a smarter,…

Key Takeaways Less than a week before the Fed’s policy committee is set to vote on interest rates, the makeup of the 12-person body is undecided.Key questions are whether Fed Governor Lisa Cook will remain on the committee despite President Donald Trump’s attempts to fire her, and whether the Senate will confirm a Trump nominee to join the FOMC.Wednesday’s meeting will mark a pivotal moment in President Donald Trump’s efforts to influence the Fed and get the central bank to cut interest rates. The Federal Open Market Committee is set to vote on whether to lower the Federal Reserve’s key…

Key Takeaways Americans gave a record $592.5 billion in 2024, driven by a strong stock market and economy.Fewer people are donating—down from about two-thirds of Americans in the early 2000s to under half in recent years.Wealthy individuals, corporations, and foundations are making up more of the total, creating what experts call “top-heavy” philanthropy.Tax law changes are a significant reason, especially a shift in 2017 that decreased the number of households that itemize their deductions, making donations less rewarding for many everyday givers. Americans gave a record $592.5 billion to charity in 2024, but fewer of us are actually reaching into…

Last week, the Department of Transportation (DOT) shot down a proposed new rule that would have entitled travelers to compensation (on top of a refund) for flight delays or cancelations. That rule hadn’t taken effect yet so travelers won’t notice a difference on future trips.But, you may need to brace for other changes in the coming months. Around the same time that the DOT announced that it was dropping that compensation rule, the agency issued additional notices stating that it would be reviewing existing consumer protection regulations. Depending on what the agency decides, the upcoming changes could make it harder…