Markets have been down, but GDP is up. A new piece of legislation could benefit both seniors and students if passed. Here's how the headlines could affect your money.
Wednesday was a tough day for the markets: The Dow and S&P experienced their biggest drops since June and the Nasdaq had its biggest since September. On Thursday morning, the Dow and S&P 500 were still down, but the Nasdaq experienced a small gain.
Tech companies report corporate earnings Thursday afternoon, which analysts expect will be positive and might help the markets end the week on a better note.
In the third quarter of this year (July-September), the gross domestic product, or a measure of the total goods and services produced, expanded at a whopping 33.1% annualized pace, according to the Commerce Department. That's better than economists expected, considering the country was recovering from widespread lockdowns and that 12.6 million Americans are still out of work.
Personal consumption increased by 40.7%, which indicates that Americans have been returning to stores, bars, and restaurants.
The House is considering a bipartisan retirement bill called the Securing a Strong Retirement Act of 2020. If passed, the legislation would raise the age at which seniors are required to start withdrawing money from their 401(k) plans and individual retirement accounts from 72 to 75.
The bill would also allow businesses to offer a 401(k) match to workers who are paying off student loans, even if those employees aren't saving in the company retirement plan.
RMD, or required minimum distribution, refers to the amount of money that must be withdrawn each year from certain retirement plans, including traditional IRAs and 401(k)s, so as not to incur a penalty. You may withdraw more than the necessary amount, but not less.
And although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.
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