Category: Money

India’s central bank is preparing to tighten regulations around the way resident Indians remit money overseas, particularly aiming to ban the use of such remittances to create foreign currency deposits with fixed lock-in periods. According to two government sources, the Reserve Bank of India (RBI) is planning to update the rules to ensure that overseas transfers are not being misused to establish interest-earning time deposits abroad.

One of the sources familiar with the RBI’s thinking stated, “This is akin to passive wealth shifting, which is a red flag for the RBI in a still-controlled capital regime.” The RBI is particularly concerned about the growing trend of individuals moving wealth abroad through seemingly legal channels, which could have long-term implications on India’s financial stability and capital controls.

This proposed change underscores India’s cautious approach towards rising outward remittances and the broader topic of full rupee convertibility. Authorities are striving to both protect the country’s foreign exchange reserves and control fluctuations in the currency market, the sources explained.

At the heart of this issue is the Liberalised Remittance Scheme (LRS), a framework established by the central bank that permits resident Indians to remit up to $250,000 annually for various purposes. These include foreign education, travel, investment in equities and debt instruments, and medical treatments. Over time, the scope of activities allowed under the LRS has expanded, but the RBI now believes that certain areas, especially foreign currency deposits, require tighter oversight.

While the proposed changes are still being discussed with the government, the second source said that the central bank is keen to ensure that such deposits cannot be made even through indirect or alternate arrangements. “The move addresses a growing misuse of the scheme as a vehicle for passive capital export,” the second source noted.

This measure forms part of a broader review of the legal architecture that governs the LRS, with the goal of making the regulations more streamlined and effective. The RBI had identified this legal overhaul as a priority in its latest annual report, indicating that reforms are due not just for control, but also for clarity and administrative efficiency.

Recent RBI data adds urgency to the central bank’s concerns. Deposits made under the outward remittance route by individuals saw a dramatic jump, increasing from $51.62 million in February to $173.2 million in March. This timing coincides with the end of the financial year, when many individuals seek to maximize their annual remittance limits and structure their finances to optimize tax burdens.

Although such surges in March are typical due to these financial planning reasons, the RBI fears that some of the funds may not be genuinely intended for approved use. Instead, they may be quietly parked abroad in deposit accounts, which defeats the purpose of the remittance scheme and could represent capital flight in disguise.

For the financial year 2024-25, total outward remittances under the LRS declined slightly to about $30 billion, compared with $31 billion in the previous year. While the dip is minor, the overall volume remains substantial, maintaining the RBI’s concern about potential misuse of the framework.

The government sources did not provide specific figures on how much of this money is currently held in foreign currency deposit accounts, but emphasized that the intention behind the revised rules is preventative in nature. By closing off this route now, the central bank hopes to stop potential loopholes before they are exploited further.

India’s rising remittances under the LRS can be partially attributed to the increasing ease with which retail investors can access international markets. Fintech platforms and private banks have played a significant role in making global investment options available to individual investors. However, this democratization of investing also raises the risk of misuse, especially in the absence of strong regulatory checks.

“It also aligns the scheme more closely with India’s calibrated approach to capital account convertibility,” the second source added. The central bank has long taken a conservative stance on opening up the capital account fully. Allowing unrestricted outflows could lead to sudden depletion of foreign reserves or unwanted volatility in the rupee’s value.

The RBI’s efforts are aimed at reinforcing that the LRS is intended for genuine and productive purposes—such as funding education, travel, or regulated investments—not for stashing money abroad in passive income-generating accounts. The second source clarified that the impending restrictions would not impact legitimate investments in foreign equities, mutual funds, or real estate, which are still allowed under the scheme.

Despite the growing popularity of overseas investments among Indians, particularly the younger and more tech-savvy demographic, the RBI appears determined to maintain control over how capital moves across borders. The proposed changes aim to strike a balance between facilitating outward remittances for genuine needs and preventing financial strategies that might undermine India’s economic interests.

The finance ministry and the Reserve Bank of India have not commented publicly on these proposed changes, and both institutions declined to respond to email inquiries regarding the matter. The discussions remain confidential at this stage, with a formal announcement expected once the legal amendments are finalized.

Ultimately, the planned regulatory tightening highlights the RBI’s ongoing struggle to manage the challenges that come with increased financial globalization, while still operating within a framework that limits full capital account convertibility. With Indian residents becoming more financially sophisticated and eager to explore international options, the central bank is adapting its policies to ensure these freedoms are not misused.

As one source summed up, “The move is preventative.” It reflects a clear message from the RBI: India will allow outward remittances, but not at the cost of losing grip on the broader economic and monetary ecosystem.

After years of grappling with inflation and the escalating cost of living, many Americans are now experiencing intense financial pressure, leading to an alarming rise in credit card debt. A growing number of individuals are unable to manage their monthly payments, with defaults on credit cards reaching a 14-year high in 2024. This disturbing development signals deep-rooted financial strain across the country.

Even more concerning is the overall spike in credit card balances nationwide. According to data from the New York Federal Reserve, total U.S. credit card debt soared to an all-time high of $1.17 trillion in the third quarter of 2024. This is the largest amount recorded in Federal Reserve data since 2003. At an individual level, the average credit card debt per borrower now stands at a substantial $6,329, based on findings from TransUnion in the same period.

This situation paints a sobering picture of American household finances. The burden of credit card debt has become more difficult to manage for many, particularly as interest rates remain persistently high.

For those currently managing their own credit card balances, finding ways to lower interest costs can make a significant difference. The Federal Reserve reported in January 2025 that the average annual percentage rate (APR) for credit card users carrying a balance is now 24.26%. This level of interest can dramatically slow down a borrower’s ability to pay off their balance, with a large portion of monthly payments going only toward interest rather than reducing the actual debt.

Fortunately, there are ways to alleviate this burden for those with strong credit. One effective strategy involves transferring existing balances to a new credit card offering a 0% introductory APR. One such offer, recommended by CardCritics, allows users to pay no interest for a full 18 months, which could provide major relief for those with good to excellent credit scores.

As highlighted by CardCritics, “Credit card interest adds up fast. It’s not uncommon for a large portion of your monthly payment to go toward interest, instead of paying off your balance and getting you out of debt.” By using a balance transfer card, borrowers can roll over debt from one or more existing credit cards into a new account offering a 0% introductory APR, helping them pay down balances faster and more efficiently.

To illustrate the potential savings, consider this scenario: if a person with the national average credit card debt of $6,329 tried to pay it off over 18 months with a standard 24.26% APR, they would need to make monthly payments of $422.96. Over that period, they would also pay $1,284.32 in interest. However, by switching to a balance transfer card with a 0% APR for 18 months, that same borrower could completely eliminate interest charges, provided they paid off the balance within the introductory window.

In such a case, the same $422.96 monthly payment would pay off the debt in just 16 months. “With the same monthly payment of $422.96 you would pay your balance off in 16 months and you’d save a total of $1,284 by opting for a balance transfer,” CardCritics notes. The calculation even factors in a small balance transfer fee, making the savings quite substantial.

Beyond interest savings, these recommended cards come with additional benefits that make them even more appealing. For example, many offer unlimited cash back rewards on everyday essentials, no annual fees, and eligibility for users with fair to excellent credit. According to CardCritics, these features make balance transfer cards not only practical but also rewarding for users seeking more financial control.

Another attractive feature is that these offers often do not require a perfect credit score. Even individuals with fair credit can qualify for these top-rated picks, making this an accessible option for a broader segment of the population. “These top-rated CardCritics picks are a smart way to cut your credit card interest to 0% APR for 18 months while also earning incredible cash back rewards,” the company states.

However, consumers should be aware of certain conditions that come with balance transfer cards. For one, cash back is not earned on the balance transfers themselves. Moreover, the 0% introductory APR typically applies only to transferred balances, not new purchases. CardCritics advises: “If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.”

Additionally, to take full advantage of the offer, balance transfers must be completed within four months of opening the account. An initial balance transfer fee of 3% (or a minimum of $5) applies for transfers made within this window. Afterward, the fee increases to 5% of each transfer. These details are essential for users to understand in order to maximize their savings and avoid unexpected costs.

With the nation’s credit card debt at record levels and interest rates placing further strain on consumers, the option to transfer balances to a 0% APR card offers a valuable lifeline. For individuals struggling to reduce their debt, minimizing interest payments can dramatically accelerate their journey toward financial freedom. The ability to consolidate multiple balances into one account, coupled with the potential for zero interest and additional rewards, makes balance transfer cards a timely and practical solution.

Ultimately, the financial pressures facing Americans today underscore the importance of making informed credit decisions. While inflation and high costs have pushed many into debt, tools like 0% APR balance transfer cards provide a meaningful way to regain control. By exploring these options now, consumers can reduce their financial burden, save hundreds—or even thousands—of dollars, and work toward becoming debt-free faster.

As CardCritics puts it, “It’s easy to apply here and see how much you could save.” For anyone juggling high-interest balances, this approach may be the strategic step they need to begin improving their financial well-being and reducing the stress that comes with persistent debt.

Renowned value investor Bill Miller has established a formidable reputation over his decades-long career. During his tenure managing the Legg Mason Capital Management Value Trust fund, Miller achieved a remarkable feat by outperforming the benchmark S&P 500 index for 15 consecutive years between 1991 and 2005.

Today, Miller is a billionaire and continues his investment journey through the firm he founded, Miller Value Funds. Due to his impressive track record, market observers closely monitor his investment decisions. In a recent quarterly update from Patient Capital Management—where Miller is a minority owner and advisor—he shared his perspective on two of the most prominent names in the stock market today: Amazon and Tesla. Miller categorically views Amazon as a buy and Tesla as a sell.

Miller’s rationale for dismissing Tesla lies in its current valuation, which he believes is excessively inflated. Despite acknowledging Tesla’s innovation and success, he does not see it as an attractive investment at current prices. “They’re going to have to knock the cover off the ball in terms of self-driving cars and AI,” Miller stated, emphasizing the high expectations embedded in Tesla’s valuation.

Although Miller described Tesla as an “incredible company” and praised its CEO, Elon Musk, calling him a “genius,” he stressed that his investment philosophy is rooted in valuation. From a value investing standpoint, Tesla does not measure up. His concerns are not unfounded. So far in 2024, Tesla’s performance has been lackluster. The company reported just 337,000 deliveries in the first quarter—the lowest quarterly figure in more than two years. Additionally, the company’s dominance in the electric vehicle (EV) space is now being seriously challenged.

A major competitor, China’s BYD, has made significant inroads. In China, BYD controls over 30% of the market share, thanks to its ability to deliver affordable models and superior charging technology. Miller pointed out a stark difference in value: “Tesla’s charging $8,000 for their self-driving system, and BYD has a self-driving system in a $9,000 car. BYD’s cars, I think they’re just better.”

Tesla’s valuation appears to rest heavily on anticipated breakthroughs, particularly in autonomous driving. The company plans a Robotaxi demonstration in June, showcasing its unsupervised full self-driving (FSD) technology. Yet skepticism remains about the system’s readiness and the timeline Musk has proposed for its rollout. Even if the demonstration is successful, the competition is not standing still. Startups like Pony AI and Slate Auto, which is backed by Amazon founder Jeff Bezos, are also pushing into autonomous vehicle technology.

Given these dynamics, Miller’s skepticism is understandable. He believes Tesla’s market value is built too much on future ambitions, while overlooking current operational challenges in its EV business. I share this assessment, as it seems the market is pricing in a level of success for Tesla’s futuristic projects without fully accounting for mounting competition and recent performance issues.

In contrast, Miller maintains his bullish stance on Amazon, a company he has backed for many years. In fact, he once remarked that he was “the largest personal owner of Amazon whose last name isn’t Bezos.” His continued confidence in the tech and retail behemoth is driven by a combination of strong leadership, operational prowess, and strategic diversification.

One of Miller’s core reasons for favoring Amazon is his confidence in CEO Andy Jassy’s leadership. He is also optimistic about the company’s various divisions, including Amazon Web Services (AWS), logistics operations, and its newer ventures like satellite internet. Miller also dismissed investor concerns about Amazon’s dependence on Chinese imports.

Tensions between the U.S. and China have led to reciprocal tariffs, sparking fears about the impact on companies with supply chains tied to China. Analysts from Wedbush Securities have previously suggested that as much as 70% of goods sold through Amazon originate in China. However, Miller considers these fears overblown. Given Amazon’s unmatched scale and logistical efficiency, he believes the company is well-positioned to navigate these challenges.

Jassy has acknowledged the impact of rising tariffs but expressed confidence in Amazon’s ability to adapt. He noted that many third-party sellers might pass on the additional costs to consumers. Furthermore, the platform’s diversity of sellers gives Amazon a buffer—some sellers may absorb the costs in order to boost market share. This competitive internal dynamic provides Amazon with flexibility during turbulent trade scenarios.

“Amazon has revenue diversity from the likes of AWS and advertising streams that have been performing well,” Miller emphasized. The company is not solely dependent on product sales, which helps cushion the impact of any external shocks to its retail business. Assuming trade relations between the U.S. and China stabilize in the future, Miller considers Amazon’s current valuation attractive. The stock trades at about 30 times forward earnings, which is near its five-year low.

Even in a scenario where tariffs persist longer than expected, Miller expects Amazon to weather the storm. There could be some short-term pressure on earnings, but the company’s long-term trajectory remains strong. He views the present situation as an opportunity for investors to take advantage of a fundamentally solid company trading at a discount.

This perspective from Miller may resonate with investors who feel they have missed out on top-performing stocks in the past. For those with similar concerns, analysts are promoting what they call a “Double Down” opportunity—highlighting companies they believe are poised for major growth despite having already shown significant returns.

To underscore the power of such moments, they point to past examples. For instance, a $1,000 investment in Nvidia during a “Double Down” recommendation in 2009 would be worth $302,503 today. Likewise, the same amount invested in Apple during a 2008 alert would now be $37,640. And Netflix? A $1,000 investment during a 2004 recommendation would have grown to an astonishing $614,911.

Currently, the Stock Advisor service is offering similar alerts on three companies that it believes present such rare, potentially lucrative opportunities. These insights are available to subscribers and are being pitched as a time-sensitive opportunity unlikely to present itself again soon.

In summary, Bill Miller’s latest investment opinions highlight the strength of his valuation-based approach. While recognizing the innovation and potential of companies like Tesla, he maintains that valuation is critical and believes Tesla is priced too high based on uncertain future success. Meanwhile, his long-standing faith in Amazon reflects confidence in its leadership, diversified revenue streams, and strategic advantages, especially during volatile geopolitical times. Investors would do well to consider both the risks of overpaying for future growth and the rewards of backing companies with solid fundamentals trading at reasonable prices.

Two of the world’s most successful billionaires, Warren Buffett and Bill Gates, once participated in a simple yet revealing exercise at a gathering. Each was asked to write down a single word that they believed summed up the secret to their success. Interestingly, both independently chose the same word: focus.

Bill Gates shared more insight into this during a 2016 interview with Charlie Rose, where he highlighted the value of passion and early dedication. “The thing you do obsessively between age 13 and 18, that’s the thing you have the most chance of being world-class at,” Gates explained. For him, that passion was computer programming. His deep interest in coding paid off, as it eventually led him to co-found Microsoft and become a millionaire in his twenties. Today, Gates is the seventh richest person globally, boasting a net worth of about $127 billion, according to the Forbes real-time billionaires index.

Warren Buffett, too, showed a focused interest early on. In a CNBC interview, Buffett reflected on his youth, saying, “Well, I was pretty interested in investments.” That interest was already present when he was just 11 years old. In 1942, he used his life savings of $114.75 to purchase three shares of Cities Service, an oil and gas company now known as Citgo.

His early obsession turned into a lifelong journey in finance, making him one of the most celebrated investors in history. Now 94, Buffett recently announced his retirement as CEO of Berkshire Hathaway during the company’s annual shareholder meeting in May. Berkshire Hathaway owns a broad range of well-known companies, including Geico, Duracell, and Dairy Queen. As of now, Buffett stands as the fifth wealthiest person on Earth, with a net worth of approximately $160 billion.

Buffett also once recounted a moment when Gates’s father invited a group of prominent men to write down one word that defined their path to success. Both Buffett and Gates again wrote down the word “focus,” without knowing the other had done the same. “He was focused on software, I was focused on investments,” Buffett said. “It gave me a big advantage to start very young — there’s no question about it.”

Even if you’re no longer in your teenage years, Buffett and Gates’s stories suggest it’s not too late to apply the principle of focus to build wealth. There are three strategies inspired by their journeys that could help you do just that.

Start Early and Stay Focused

The importance of starting early in investing cannot be overstated. It is a cornerstone principle for both Gates and Buffett. Buffett has often discussed the power of compound interest, which allows wealth to grow faster as you earn interest on both your initial investment and the interest it has already generated.

In 1999, at a Berkshire Hathaway shareholders meeting, Buffett vividly illustrated this idea. “We started building this little snowball on top of a very long hill,” he said. “The trick is to have a very long hill, either start very young or live to be very old.”

There are various ways to begin your investment journey. You might choose to buy individual stocks or low-cost index funds through a brokerage account. Alternatively, you could invest using tax-advantaged accounts like a 401(k) plan, if your employer offers one, or an individual retirement account (IRA).

Staying focused once you begin investing is equally crucial. Even small, regular investments—such as putting aside spare change—can build significant wealth over time. The longer your money has to grow, the greater your returns could be.

Focus on Quality and Value

Buffett is widely known for his commitment to value investing. This method involves identifying stocks that are priced below their true worth and holding onto them for the long haul. He typically seeks out businesses with strong, consistent earnings, healthy cash flow, and low levels of debt.

His preference for long-term investment in high-quality companies is evident in his substantial, enduring stakes in firms like Coca-Cola and American Express. As he wrote in his 1996 letter to shareholders: “If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.”

One of the most prominent examples of Buffett’s value investing philosophy is Berkshire Hathaway’s stake in Apple. As of now, Apple represents about 28% of the conglomerate’s entire stock portfolio. At the 2023 Berkshire Hathaway shareholders meeting, Buffett said of Apple, “It just happens to be [a] better business than any we own,” praising the company’s outstanding financial performance.

Focus on Learning and Improving

No investment journey is without its missteps, and even legendary investors like Buffett have faced their share of regrets. At the 1997 Berkshire Hathaway meeting, Buffett admitted to “mistakes of omission,” referring to missed opportunities to invest in excellent companies.

His long-time business partner, the late Charlie Munger, who passed away in 2023, also addressed the importance of recognizing rare investment opportunities. He remarked, “Most people get very few, what I call, no-brainer opportunities, where it’s just so damned obvious that this is going to work.” Munger emphasized the need for both courage and intelligence when those rare chances appear. “I think people have to learn to have the courage and the intelligence to step up in a major way when those rare opportunities come by,” he said.

Of course, not everyone is well-versed in the complexities of investing. Fortunately, help is available. You might choose to work with a professional financial adviser who can offer tailored guidance based on your financial goals. Alternatively, modern investing apps and platforms can help automate the process, making it easier for beginners to take that first step.

In summary, the shared philosophy of Buffett and Gates highlights how the principle of focus—especially when applied early and consistently—can yield extraordinary results. Whether it’s choosing the right assets, learning from past errors, or staying the course through market ups and downs, staying focused might just be the clearest path to building wealth over time.

A comprehensive international study has revealed that individuals who feel content with their financial situation tend to report better emotional, physical, and mental well-being, regardless of their actual income level. However, when it comes to forecasting long-term changes in well-being, actual income proves to be a more accurate predictor than financial satisfaction. Published in the Journal of Personality and Social Psychology, the study emphasizes that how people feel about their finances and how much they earn each affect well-being in distinct ways.

The research was led by Vincent Y. S. Oh, a senior lecturer at the Singapore University of Social Sciences. His goal was to explore the complex connection between financial standing—both objective and subjective—and overall well-being. While the phrase “money doesn’t buy happiness” is often quoted, the link between wealth and life satisfaction has been long debated.

Earlier studies have suggested that greater income might be associated with increased happiness, but these conclusions often rely on narrow definitions of happiness or focus only on short-term impacts. Oh aimed to go further by analyzing how both actual income and financial satisfaction influence various dimensions of well-being over time.

“The question of whether money buys happiness is one that I think has great appeal to many, probably because money is such an inescapable reality of almost everyone’s lives. You see it being discussed online on Reddit and news commentaries, you hear people talk about it, you see memes about it online, and so on,” Oh told PsyPost.

He added, “More personally as well, financial pressures were also a significant part of my memories of growing up. I think our experiences of life can be shaped quite significantly by our economic and financial circumstances, and this was thus a practically important and relevant topic that was worth delving into empirically.”

Oh examined three extensive, long-term datasets from the United States and South Korea. These datasets—the Midlife in the United States Study, the Understanding America Study, and the Korean Longitudinal Study of Aging—tracked over 7,600 individuals across multiple years. Participants were repeatedly assessed to determine their income, financial satisfaction, and performance on 22 different indicators of well-being, such as emotional state, health, social connections, life satisfaction, and sense of meaning.

Income was calculated based on self-reported annual earnings, adjusted for inflation and currency differences. Financial satisfaction was gauged using straightforward questions asking individuals to rate their contentment with their financial situation. Well-being was measured through various items, including assessments of emotional experiences, physical and mental health, and life satisfaction. The research utilized latent growth modeling and meta-analysis to understand how income, satisfaction, and well-being evolved over time.

At the start of the study, those who felt satisfied with their financial situation consistently reported higher well-being across a wide range of domains. These individuals experienced more life satisfaction, better physical and mental health, and more positive emotions. The correlation was strong. In contrast, initial income levels did not consistently correlate with initial well-being levels. Surprisingly, in some instances, higher income was even linked to lower well-being when financial satisfaction was considered.

However, the pattern reversed when analyzing long-term trends. Participants with higher incomes at the beginning of the study showed better long-term improvements—or smaller declines—in emotional and life satisfaction indicators. Financial satisfaction, while clearly tied to present well-being, did not show a link to long-term improvements.

“It was interesting that although subjective financial satisfaction was clearly more strongly related to one’s current well-being, there was no evidence that it played a role in predicting future trajectories of change in well-being,” Oh noted. “Instead, income had relatively stronger evidence supporting its role as a predictor of future changes in well-being. Thus, it seems that both income and subjective financial satisfaction could matter to well-being, albeit in different ways.”

The study also looked at whether individuals with higher initial well-being later reported increased income or financial satisfaction. The answer was mostly no. Those who began with higher well-being did not necessarily go on to earn more money or feel better about their finances.

“The main takeaway is that there isn’t a single answer to the question of whether money buys happiness or whether one should be content with what one has,” Oh told PsyPost. “Money does matter in that higher-income-earners were more likely to have better future well-being, but at the same time, being subjectively happy with one’s finances played a much larger explanatory role in current well-being than how much one earns.”

Oh also addressed conventional wisdom that encourages people to completely ignore material concerns. “Any conventional wisdom that takes the form of asking people to forgo material concerns entirely is unlikely to be good advice, because ultimately, money is important to our day-to-day lives and can make a significant difference to our psychological and physical wellness. At the same time, time and again, research has shown that excessive materialism is likely to be detrimental.”

He added, “Independently of how much we actually earn, our subjective relationship with money makes a lot of difference. As much as many of us chase after material goals (and for good reason, since money does matter), we do need to moderate this pursuit and to try to cultivate some level of contentment with our finances as this may ultimately play a more significant role in our current sense of wellness. I do acknowledge, however, that this can be easier said than done.”

The study has its limitations. The average age of participants was middle-aged or older, and the financial satisfaction measure was based on only a few simple questions. Furthermore, because the study wasn’t experimental, it can’t prove cause and effect. For example, people who feel generally happy with life may also rate their finances more positively, even if those finances haven’t improved.

“The present findings do not support a direct causal inference since the studies reported are non-experimental,” Oh said. “Still, the present findings provide longer-term findings spanning over a decade, which complements some other studies reported which do support a causal role of money in well-being over shorter time frames.”

He further noted, “Additionally, the findings reported are quite comprehensive, spanning multiple well-being measures as well as participants from two relatively distinct nations (the United States and Korea). Despite this, we should be cautious of generalizing beyond what the methodology allows. There is some previous work suggesting that there are divergent relationships between money and well-being across countries, and the present findings may not generalize to all other countries equally or to other forms of well-being (e.g., meaning) that weren’t measured in the present work.”

Despite these limitations, the study stands as one of the most expansive inquiries into how money and well-being interact over time. Oh is interested in future research focusing on the finer details of socioeconomic status and its impact on well-being. This includes studying the influence of debts, caregiving expenses, and why some people are more content with their financial status than others.

“Amidst global inflationary pressures and other economic uncertainties, I think these are times where economic concerns are really critical to the everyday experiences of many people,” Oh concluded. “While the present research may offer little direct comfort, I hope they at least provide some validation of the experiences of those struggling with economic/financial concerns – money (and our subjective experience of money) does matter to our psychological and physical wellness, and such concerns should be taken very seriously and hopefully addressed by policy-makers throughout the world.”

Indians residing overseas sent home a record $129.4 billion in remittances in 2024, with the final quarter alone contributing $36 billion, according to an analysis of the Reserve Bank of India’s balance of payments data. For the third consecutive year, India has received over $100 billion in remittances, maintaining its status as a global leader in this domain. India has been among the world’s top recipients of remittances for over 25 years, a trend that began with the IT sector’s expansion in the 1990s. Since 2008, the country has consistently held the number one position, according to a report by The Economic Times.

A combination of increased services exports and the migration of skilled professionals to developed nations in North America and Europe has played a crucial role in boosting remittance inflows. These new sources of funds complement traditional remittances from Gulf Cooperation Council (GCC) countries, which have long been a primary source of foreign income for Indian households.

The volume of remittances is closely tied to employment conditions in the countries sending them and migration trends in the countries receiving them. Over the decades, the number of Indian international migrants has grown significantly, rising from 6.6 million in 1990 to 18.5 million in 2024. Consequently, their share among global migrants has increased from 4.3% to over 6% in this period. Nearly half of all Indian migrants worldwide reside in GCC countries, continuing the region’s importance as a key source of remittances.

An analysis in the Reserve Bank of India’s monthly bulletin emphasized the role of skilled workers in driving remittance growth. “The competitive edge and the penetration of Indian IT services overseas at the start of the century, the number of skilled emigrants to advanced economies, especially to the US, has risen significantly. Thus, besides the GCC, advanced economies have also emerged as a major source of inward remittances to India over the years,” the analysis stated. This trend reflects the growing contribution of professionals in technology, finance, and healthcare sectors who work in high-income nations and send money back to their families.

India remains the leading recipient of remittances globally, with a significant gap between its inflows and those of other nations. In 2024, Mexico ranked second with $68 billion in remittances, while China secured the third spot with an estimated $48 billion in inflows. The growth in India’s remittances, which stood at 17.4% for the year, far exceeded the global average growth projection of 5.8%. This surge highlights the increasing financial contributions from the Indian diaspora and the robust economic ties they maintain with their home country.

Since the onset of the COVID-19 pandemic in 2020, India’s remittance inflows have increased by an impressive 63%, demonstrating the resilience and adaptability of its migrant workforce. A World Bank blog noted that “The recovery of the job markets in the high-income countries of the Organization for Economic Co-operation and Development (OECD), following the onset of the COVID-19 pandemic, has been the key driver of remittances.” This recovery has played a crucial role in sustaining remittance growth despite economic uncertainties.

Inflationary pressures in major remittance-sending regions such as North America and Europe have not dampened the upward trend. Instead, these economic challenges have reinforced the dependence of families in India on financial support from relatives abroad. “This is a reflection of dependents in India being more reliant on relatives,” remarked Madan Sabnavis, chief economist at Bank of Baroda. “Partly due to fall in domestic income as well as inflation being high.” His observation underscores the dual impact of domestic economic conditions and global employment trends on remittance flows.

The Reserve Bank of India classifies private transfers in the balance of payments as remittances and expects this upward trajectory to persist. The central bank projects that these inflows will continue to grow, reaching approximately $160 billion by 2029. If this projection holds, India will further cement its position as the world’s top recipient of remittances, underscoring the economic significance of its global diaspora.

Indian residents looking to remit funds abroad under the Reserve Bank of India’s (RBI) Liberalised Remittance Scheme (LRS) have only a few days left to take advantage of the full limit for the current financial year. By remitting $250,000 before March 31, 2025, and another $250,000 at the start of the next fiscal year, individuals can send a total of $500,000 abroad within days.

Understanding the LRS Limit and Its Uses

Under the RBI’s LRS, every resident Indian, including minors (with guardian approval), can remit up to $250,000 per financial year for various permissible transactions, including:

✔ Buying international stocks

✔ Purchasing overseas property

✔ Funding a child’s foreign education

✔ Meeting medical expenses abroad

At the current exchange rate of ₹86 per US dollar, this translates to approximately ₹2.15 crore per person in outward remittances per fiscal year.

Rising Investments in Foreign Assets

A growing number of Indians are investing abroad, with data from October 2024 showing a 78% year-on-year increase in overseas equity and debt investments under LRS. Many are diversifying their portfolios by purchasing US stocks through international brokerage platforms. The process involves:

1️⃣ Opening an international trading account

2️⃣ Converting INR to USD

3️⃣ Completing KYC and LRS formalities

4️⃣ Transferring funds to a foreign bank account

5️⃣ Investing in global markets

New RBI Rule on Unused Forex

For those who have already sent money abroad under LRS, a crucial new RBI rule mandates repatriation of unused foreign exchange. As per the rule effective August 24, 2022, any unspent or unused forex must be surrendered to an authorized dealer within 180 days of receipt, realization, or return to India.

Final Chance to Utilize This Year’s LRS Limit

To maximize remittance benefits, individuals should complete transfers before March 31, 2025. By doing so, they can leverage the LRS limit again in early April, effectively doubling their total remittance capacity over a short period.

A recent Reserve Bank of India (RBI) report reveals that advanced economies such as the United States and the United Kingdom have overtaken Gulf nations as the primary sources of remittances to India.

According to the study, titled Changing Dynamics of India’s Remittances – Insights from the Sixth Round of India’s Remittances Survey, India’s total remittances more than doubled, rising from $55.6 billion in 2010-11 to $118.7 billion in 2023-24. The RBI predicts that this figure will continue to grow, potentially reaching $160 billion by 2029.

Key Findings of the 6th Round of the Remittances Survey

• Dominance of Advanced Economies: Remittances from the US and the UK nearly doubled to 40% of total inflows in FY24, up from 26% in FY17. Specifically, the UK’s share surged from 3% in FY17 to 10.8% in FY24.
• US as the Leading Source: The US became the top contributor in FY21 with a 23.4% share, which increased to nearly 28% in FY24.
• Emerging Players: Singapore’s contribution reached 6.6% in FY24, the highest since FY17, when it stood at 5.5%. Australia also emerged as a key contributor, accounting for 2.3% of remittances.
• Declining Share of Gulf Nations:
  • The UAE’s contribution fell from 27% in FY17 to 19.2% in FY24.
  • Remittances from Saudi Arabia almost halved, dropping from 11.6% in FY17 to 6.7% in FY24.
  • The overall share of Gulf Cooperation Council (GCC) nations (UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain) declined to 38% in FY24, down from 47% in FY17.

Top Recipient States

• Maharashtra remained the top recipient, receiving 20.5% of remittances in 2023-24, though this was a decline from 35.2% in 2020-21.
• Kerala’s share rose from about 10% to 19.7% over the same period.
• Tamil Nadu ranked third with 10.4%, followed by Telangana (8.1%) and Karnataka (7.7%).
• Haryana, Gujarat, and Punjab saw increased remittances, but their share remained below 5% each.

Shift in Migration Patterns Driving the Change

The shift in remittance sources reflects a broader transformation in Indian migration patterns, with skilled professionals favoring developed countries over the Gulf.

1. Stronger Job Markets in Advanced Economies

• High-paying jobs in the US, UK, Canada, and Australia attract skilled Indian professionals in sectors such as finance, medicine, and technology.
• Post-Covid US job market recovery led to increased remittances from Indian professionals.
• The UK-India Migration and Mobility Partnership simplified work visa processes, contributing to a surge in Indian migration to the UK from 76,000 in 2020 to 250,000 in 2023.
• Canada’s Express Entry and Australia’s immigration system prioritize skilled workers, offering higher wages and boosting remittances.

2. Declining Job Prospects in the Gulf

• Many Indian migrants returned from the Gulf during Covid-19 and later relocated to advanced economies for better job opportunities.
• Economic diversification and automation reduced demand for low-skilled Indian labor, particularly in the construction sector.
• Nationalization policies like Saudi Arabia’s Nitaqatand the UAE’s Emiratization prioritize local workers, further limiting job opportunities for migrants.

3. Changing Migration Trends by Region

• South Indian states (Kerala, Tamil Nadu, Andhra Pradesh, Telangana) are now sending more migrants to the US, UK, Canada, and Australia instead of the Gulf.
• North Indian states (Uttar Pradesh, Bihar, Rajasthan) continue to send large numbers of workers to the Gulf due to lower educational attainment, which limits access to skilled jobs in developed nations.

4. Rise in Education-Driven Migration

• The preference for higher education in Canada, the UK, and Australia has contributed to higher remittances from these countries.
• Canada hosts 32% of Indian students abroad, followed by the US (25.3%), the UK (13.9%), and Australia (9.2%).

Digital Transactions Powering Remittances

• The Rupee Drawing Arrangement (RDA) remains the dominant channel for inward remittances, followed by direct Vostro transfers and fintech platforms.
• Digital remittances now account for 73.5% of total transactions in 2023-24, reflecting a shift toward more efficient and transparent money transfers.

Conclusion

The transformation in India’s remittance sources highlights a shift from low-skilled labor migration to skilled professional migration to advanced economies. With stronger job markets in countries like the US, UK, Canada, and Australia, along with growing education-driven migration, remittances from these nations are expected to continue rising. Meanwhile, declining opportunities and restrictive policies in the Gulf have led to a shrinking share of remittances from the region.

Bank of America Corp is preparing to name Vikram Sahu as the new country executive for its India operations, according to an internal memo reviewed by Reuters.

Sahu, who currently serves as the head of global equity research and is based in New York, will succeed Kaku Nakhate in the role.

As per the memo, Sahu is expected to relocate to India in the second quarter of the year to take charge of the bank’s India franchise.

Nakhate, who has led Bank of America’s India business for 15 years, will continue to serve as the chief executive officer of the bank’s India-regulated entity until the Reserve Bank of India (RBI) grants formal approval for Sahu’s appointment.

When approached for a statement, a spokesperson for Bank of America in India declined to comment.

India’s high-net-worth individual (HNWI) population, defined as those possessing assets exceeding $10 million, experienced a six percent rise in 2024, reaching a total of 85,698, according to global property consultant Knight Frank. The recently published ‘Wealth Report 2025,’ unveiled on Wednesday, sheds light on the country’s expanding wealth sector, projecting the HNWI population to grow further to 93,753 by 2028.

India’s continuous economic expansion has played a pivotal role in the increasing number of wealthy individuals. The steady rise in the affluent population can be attributed to robust economic performance, growing investment prospects, and a rapidly developing luxury market. The report underscores India’s emergence as a key player in global wealth generation, further solidifying its economic stability.

The billionaire population in India has also witnessed a significant surge, rising to 191 in 2024 from 165 in the preceding year. A remarkable 26 individuals joined the billionaire ranks in 2024, a sharp contrast to just seven new billionaires in 2019, highlighting the rapid pace of wealth accumulation in the country.

India has now positioned itself as the third-largest global hub for billionaire wealth, with the collective net worth of Indian billionaires estimated at $950 billion. The United States remains at the top of the list with a total billionaire wealth of $5.7 trillion, followed by Mainland China, which holds a combined billionaire wealth of $1.34 trillion.

Shishir Baijal, Chairman & Managing Director of Knight Frank India, emphasized the factors fueling this surge in wealth. “India’s wealth surge is driven by entrepreneurial growth, global market integration, and emerging industries,” he stated. He also pointed out that the expansion in wealth is not just limited to an increase in numbers but is also reflected in changing investment patterns. India’s affluent class is increasingly spreading their investments across real estate, global equities, and alternative asset classes, diversifying their portfolios beyond traditional avenues.

As India continues to assert itself on the global economic stage, its role in wealth creation is set to expand even further. Baijal predicts that over the next decade, India will play an even more significant role in shaping the international financial landscape, further strengthening its position in the world economy.

The steady depreciation of the Indian rupee against the US dollar over the past few months has put financial pressure on students who are either planning to study overseas or are already pursuing their education abroad.

Bloomberg data shows that in the last six months, the rupee has fallen nearly 4 percent, weakening from Rs 83.75 per USD in August 2024 to Rs 86.95 per USD as of February 18, 2025. The rupee had even dropped to 87.9563 per dollar on February 10 before making a partial recovery.

Impact of Rupee Depreciation

The falling value of the rupee translates to higher expenses for Indian students studying in foreign countries, as tuition fees, accommodation, and daily living costs all become more expensive. “Even a slight fluctuation can inflate their annual expenses by lakhs, making budgeting a daunting task,” explains Sudarshan Motwani, Founder and CEO of BookMyForex.com.

Eela Dubey, Co-founder of EduFund, emphasizes the hidden financial burden that currency depreciation imposes. “Rupee depreciation acts as hidden inflation for Indian students aspiring to study abroad, significantly increasing the cost of education, even if universities do not raise tuition fees.” This means that even if a university maintains its tuition fees in USD, Indian students still pay more in INR because of currency fluctuations.

For example, over the last four years, the tuition fee for an MBA at NYU Stern has risen by 3.53 percent annually in USD terms. However, for Indian students, the real increase is 6.79 percent per annum when adjusted for the rupee’s depreciation—almost twice the inflation rate in INR.

“Rupee depreciation has far-reaching consequences, affecting not just tuition fees but also everyday expenses like groceries, travel, and accommodation, which are all increasing in cost,” says Rahul Subramaniam, Co-Founder of Athena Education.

Prashant Bhonsle, Founder and CEO of Kuhoo Edufintech, highlights another financial challenge. “The unpredictability of currency fluctuations makes it difficult for students and parents to budget for foreign education, worsening the challenge of financing. Furthermore, a weakening rupee leads to increased costs and higher debt burden, disproportionately affecting middle-class families,” he states.

Ways to Mitigate Rupee Depreciation

To better manage their finances abroad, students should adopt a three-pronged approach—using forex cards for daily spending, wire transfers for tuition payments, and keeping an emergency cash reserve, advises Motwani. Forex prepaid cards, loaded at a fixed exchange rate, help protect against rupee depreciation. For example, if a student loads a forex card at Rs 86.75 per USD, it shields them from potential losses if the rupee weakens further to 87.47 per USD.

In addition, forex cards eliminate foreign transaction fees and Dynamic Currency Conversion (DCC) charges, making them a more cost-effective alternative to INR-denominated credit or debit cards, which are subject to exchange rate fluctuations.

Traditional banks and money changers often impose hefty mark-ups of 2 to 8 percent. Therefore, opting for zero-markup forex services can save students significant amounts.

Motwani also advises students to open a local bank account in their host country for better financial management. Meanwhile, parents who are financially savvy can hedge against currency fluctuations by using forward contracts to reduce potential losses.

To further cut costs, Subramaniam suggests students reduce discretionary spending and consider shared housing. He also points out that working part-time can help students supplement their income. “Many international students already adopt this strategy, taking on part-time work, internships, or teaching assistant roles to supplement their finances while studying abroad,” he explains.

By adopting these financial strategies, students can navigate international expenses with more confidence and efficiency.

Hedging Against Rupee Volatility

Experts suggest that a well-rounded financial plan for studying abroad should include investments, education loans, and scholarships.

One way to hedge against currency fluctuations is by investing in USD-denominated assets, notes Dubey. For individual investors, passive US ETFs offer a simple and effective method to counter exchange rate risks while keeping pace with education inflation.

For those who prefer to invest in Indian markets due to limited capital or tax considerations, diversified equity mutual funds with strong long-term growth potential can help offset both rupee depreciation and rising education costs.

Although exploring external financing options like loans and scholarships is advisable, Dubey warns against relying entirely on them, stressing the importance of personal savings as a financial cushion.

“Choosing lenders with lower interest rates, flexible repayment options, and customized loan structures can significantly reduce financial strain,” Bhonsle adds.

A Weak Rupee Benefits Students Working Abroad

While a depreciating rupee creates challenges for Indian students studying abroad, it can actually be advantageous for those who secure jobs in countries with stronger currencies like the US, UK, or Europe.

“A weaker rupee actually works in favor of students working abroad, making their loan repayments more manageable due to the currency advantage,” says Bhonsle. However, he cautions that careful planning is necessary to maximize this benefit.

Despite the financial pressures caused by a weakening rupee, Indian students can minimize its impact through smart planning, diversified financial management, and strategic choices regarding study destinations.

On February 1, Indian Finance Minister Nirmala Sitharaman presented the Union Budget for 2025, introducing key tax revisions for non-resident Indians (NRIs) and incentives aimed at attracting foreign investors.

A significant aspect of this year’s budget was the tax reductions. For NRIs, one of the notable proposals included raising the threshold for tax collection at source (TCS) on remittances under the Reserve Bank of India’s (RBI) Liberalized Remittance Scheme (LRS) from Rs.7 lakh ($8,400) to Rs.10 lakh ($12,000). Furthermore, the delay in TCS payment up to the deadline for filing statements is now proposed to be decriminalized.

These exemptions hold particular importance since India receives the highest volume of remittances globally, with a substantial share coming from its diaspora in the Gulf countries and the United States.

Another key proposal in the budget aimed at NRIs involves changes in the taxation of long-term capital gains (LTCG). The government has suggested aligning LTCG tax rates for Foreign Institutional Investors (FIIs) with those applicable to resident taxpayers on the transfer of capital assets. “It is proposed to bring parity between the taxation of capital gains on transfer of capital assets between residents and non-residents being Foreign Institutional investors, on their income by way of long-term capital gains on transfer of securities,” Sitharaman stated in her Budget speech.

To boost investments, the government has also proposed the introduction of a presumptive taxation framework for foreign entities that provide services to Indian firms involved in establishing or running electronics manufacturing plants. Additionally, a safe harbour provision is being introduced to ensure tax certainty for non-resident entities that store components for supplying specific electronics manufacturing units.

Another major reform in the budget pertains to foreign direct investment (FDI) in the insurance sector. The permissible FDI limit is set to be increased from 74% to 100%. However, this will only apply to companies that invest the entire premium amount within India.

In an effort to make India more attractive for global investors under the ‘first develop India’ initiative, the government has also decided to revise and enhance the existing model for Bilateral Investment Treaties (BIT). Sitharaman emphasized that the new framework would be more investor-friendly while ensuring that the conditions and regulatory safeguards associated with foreign investments are reviewed and simplified.

China and the United Kingdom are experiencing an unprecedented outflow of millionaires, with both nations set to lose more wealthy individuals than any other country this year. According to the Henley Private Wealth Migration Report, which tracks the net migration of high-net-worth individuals (HNWIs), thousands of affluent individuals are departing these countries. Several factors are driving this trend, with significant implications for their respective economies.

China’s Millionaire Exodus

China is projected to lose 15,200 millionaires in 2024, marking a continuation of a trend that had slowed during pandemic-related travel restrictions. Once those limitations were lifted, wealthy Chinese individuals resumed their movement abroad. In 2023, approximately 13,800 HNWIs left China, with the United States, Canada, and Singapore being the primary destinations. This year, these same countries remain top choices for Chinese millionaires seeking stability and economic opportunity.

Several factors contribute to this outflow. Concerns about China’s economic trajectory and rising geopolitical tensions have led many affluent individuals to seek safer environments for themselves and their wealth. As uncertainties persist in the domestic market and relations with Western nations become more strained, an increasing number of wealthy Chinese are looking for alternative destinations where their assets and businesses can thrive.

UK’s Millionaire Migration

The United Kingdom is expected to see 9,500 millionaires leave in 2024, ranking second only to China in terms of net HNWI departures. This marks a sharp contrast to the country’s historical status as a hub for the wealthy. For years, London attracted affluent individuals from Europe, Asia, Africa, and the Middle East.

However, this trend has reversed, with many millionaires now opting for alternative destinations such as the United Arab Emirates (UAE). The Henley report notes that while this migration shift has been occurring for some time, it has accelerated due to several key factors, including Brexit, the energy crisis triggered by the war in Ukraine, and rising inflation.

Key Factors Behind the Wealth Exodus

The departure of millionaires from both China and the UK is influenced by a combination of economic and political factors.

For China, the primary reasons include:

• Slowing economic growth and concerns about long-term stability.
• Increasing geopolitical tensions and worsening relations with Western nations, creating an uncertain business environment.
• Government crackdowns on various industries and heightened regulatory scrutiny, which have made many wealthy individuals uneasy.

In the UK, the driving forces behind the exodus include:

• Brexit-related economic and political uncertainty, which has reduced confidence among investors and business leaders.
• The potential for higher taxes on the wealthy, including Labour Party leader Keir Starmer’s proposal to end preferential tax treatment for non-domiciled residents if elected.
• The approaching general election, with potential policy changes targeting affluent individuals leading them to consider relocation.

UAE: A Preferred Destination for Millionaires

While China and the UK are experiencing a mass exodus of millionaires, countries like the UAE are benefiting from an influx of wealthy individuals. The UAE has emerged as a top destination for millionaires due to several key advantages:

• Tax benefits: The country offers no personal income tax and has a favorable corporate tax structure, making it highly attractive for affluent individuals.
• Business opportunities: The UAE’s strategic location, excellent connectivity, and thriving business environment make it an appealing destination for entrepreneurs and investors.
• Quality of life: The country boasts a high standard of living, safety, and access to luxury amenities, drawing in millionaires seeking a better lifestyle.

Economic Impact of Millionaire Migration

The loss of millionaires is often seen as a warning sign of deeper economic issues within a country. Henley & Partners highlight that millionaire migration trends serve as a critical indicator of a nation’s financial health. A substantial outflow suggests serious challenges and may indicate declining economic stability.

Wealthy individuals are typically the first to leave when conditions become unfavorable because they possess the financial flexibility to relocate. Their departure can have a significant impact on the domestic economy, as they take their investments, businesses, and spending power with them.

Moreover, millionaire migration benefits host countries by injecting large amounts of foreign exchange revenue into their economies. For example, when a millionaire moves with $10 million in assets, the receiving country effectively gains $10 million in economic value, providing a considerable financial boost. Conversely, the loss of such individuals can have negative economic consequences for their home countries.

India’s Position in the Global Wealth Migration Trend

India ranks third globally in terms of millionaire migration, with an estimated 4,300 wealthy individuals expected to leave the country in 2024. However, this figure marks an improvement compared to 2023, when 5,100 millionaires departed.

Despite this trend, India’s economy continues to generate new millionaires at a high rate, helping to offset the losses. The Henley report states, “Indian millionaires often depart the subcontinent in search of a better lifestyle, safer and cleaner environments, and access to more premium health and education services.”

While India is still experiencing high-net-worth outflows, the rate of migration has slowed slightly compared to previous years. However, the reasons behind millionaire departures remain consistent, as affluent individuals continue to seek better opportunities and living conditions abroad.

Conclusion

The large-scale migration of millionaires from China and the UK highlights the growing economic and political challenges these nations face. While China’s outflow is driven primarily by economic concerns and regulatory crackdowns, the UK’s millionaire exodus is fueled by Brexit-related uncertainties, tax policies, and political shifts.

At the same time, countries like the UAE are attracting these wealthy individuals by offering favorable tax structures, business opportunities, and high living standards. The global movement of millionaires serves as a key indicator of shifting economic power dynamics, with significant consequences for both the departing and receiving nations.

Warren Buffett, the CEO of Berkshire Hathaway and an iconic figure in the investment world, has issued a stark warning about the potential consequences of poor estate planning. Speaking in an unusually reflective letter released on Monday, the 94-year-old billionaire emphasized the importance of drafting a clear will and engaging in open discussions with family members.

“Father time always wins. But he can be fickle,” Buffett noted, underlining the inevitability of death and the unpredictability of life. His message arrives at a critical moment as the world approaches the “Great Wealth Transfer,” a generational shift involving the transfer of $84 trillion in wealth, projected to unfold by 2045.

Buffett’s Advice for Parents

With a fortune exceeding $151 billion, Buffett is among the wealthiest individuals globally. Over the years, he has pledged to donate at least half of his wealth to charitable causes, a commitment he made alongside Bill Gates and Melinda French Gates in 2010. While Buffett’s immense fortune might seem out of reach for most, the principles he applies to his estate planning resonate universally.

“I have one further suggestion for all parents, whether they are of modest or staggering wealth. When your children are mature, have them read your will before you sign it,” Buffett advised.

For Buffett, a will should be more than a legal document—it should serve as a foundation for dialogue. He advocates for transparency, urging parents to explain the rationale behind their decisions and prepare their heirs for the responsibilities they will inherit. This approach includes actively listening to their children’s questions and feedback and considering adjustments if the suggestions are reasonable.

Buffett recounted his own experiences of engaging his children in discussions about his estate plans. “There is nothing wrong with my having to defend my thoughts. My dad did the same with me,” he said, emphasizing the value of such conversations.

The reluctance to discuss financial matters within families is a widespread issue. According to Fidelity Investments’ State of Wealth Mobility survey, 56% of Americans report that their parents never discussed money with them. Despite this, 81% believe they would have benefited from early financial education.

For younger generations, financial insecurity amplifies the significance of inheritance. Research by Cerulli Associates indicates that the transfer of $84 trillion in assets from baby boomers and the silent generation to their heirs will reshape wealth dynamics. However, this massive transfer also highlights generational gaps in expectations. Northwestern Mutual’s Harris Poll found that younger generations often overestimate the inheritance they anticipate receiving, while older generations downplay the amounts they plan to leave behind.

Compounding these challenges, 72% of Americans feel unequipped to manage a significant financial windfall, according to a Citizens Bank survey. Millennials, in particular, express low confidence in handling large inheritances, underscoring the need for proactive financial preparation and education.

The Pitfalls of Poorly Planned Wills

The aftermath of a poorly crafted will can be deeply divisive for families. Grief-stricken relatives often find themselves embroiled in disputes over money and possessions, with seemingly trivial items sometimes becoming sources of intense conflict. Unexpected stipulations in a will can exacerbate tensions and lead to lasting familial rifts.

Buffett highlighted these risks from his observations over the years. “Over the years, Charlie and I saw many families driven apart after the posthumous dictates of the will left beneficiaries confused and sometimes angry,” he shared, referring to his late business partner Charlie Munger.

He elaborated on common sources of discord, noting that childhood experiences, perceived favoritism, and gender biases often resurface during the division of assets. To avoid such outcomes, Buffett recommends keeping wills straightforward and updating them as needed to reflect evolving circumstances.

Yet, Buffett also acknowledged the positive potential of a well-prepared will. “On the other hand, we saw situations where a well-discussed will helped a family become closer in the end. What could be more satisfying?” he remarked.

The key, according to Buffett, lies in addressing any questions or concerns while the benefactor is still alive. “You don’t want your children asking ‘Why?’ in respect to testamentary decisions when you are no longer able to respond,” he cautioned.

Buffett’s Own Approach to Estate Planning

As one of the world’s most closely watched figures, Buffett’s actions often garner significant public attention. This extends to his approach to estate planning, where he has pledged to give away more than 99% of his wealth.

While Buffett once directed a substantial portion of his philanthropy to the Gates Foundation, he has since shifted his focus. “The Gates Foundation has no money coming after my death,” he told The Wall Street Journal. Instead, his fortune will be channeled into a new charitable trust managed by his three children.

In his latest statement, Buffett revealed that he is allocating an additional $1 billion to his family’s foundations. However, he remains steadfast in his belief that wealth should empower rather than stifle personal ambition. “I don’t want to create a dynasty,” Buffett explained. His guiding principle is that “hugely wealthy parents should leave their children enough so they can do anything but not enough that they can do nothing.”

Buffett’s approach reflects a broader philosophy that wealth should be used responsibly and thoughtfully. By emphasizing dialogue, transparency, and preparation, he hopes to inspire others to approach estate planning with the same level of care and intentionality.

As the Great Wealth Transfer looms, Buffett’s advice serves as a timely reminder that the way we plan our legacies can profoundly impact our loved ones. By addressing these sensitive topics head-on, families can avoid unnecessary conflict and create a foundation for harmony and understanding.

Despite being the strongest currency globally, the Kuwaiti Dinar is not recognized as an international currency. The U.S. dollar, on the other hand, holds unparalleled dominance in global trade. This dominance stems from factors such as the dollar’s stable value and the resilience of the U.S. economy, as highlighted by CFR.

While some currencies trade at a much lower exchange rate than the U.S. dollar, their value is so diminished that even a single dollar can purchase substantial amounts of these currencies. Based on information from Forbes, this article explores the world’s cheapest currencies, ranked in relation to the U.S. dollar.

Iranian Rial (IRR)

The Iranian rial ranks as the weakest currency worldwide, with one rial equivalent to just 0.000024 dollars. This means US$1 is worth approximately 42,300 rials. The rial’s severe devaluation is primarily attributed to economic sanctions imposed by the U.S. and the European Union. Additionally, political unrest and annual inflation exacerbate the currency’s decline.

Vietnamese Dong (VND)

Vietnam’s dong is another significantly undervalued currency, with US$1 purchasing around 23,400 dong. This weak exchange rate is due to several factors, including challenges in Vietnam’s real estate market, slowed exports, and foreign investment restrictions.

Laotian Kip (LAK)

Neighboring Vietnam, Laos faces a similar struggle with its currency, the kip. One kip is valued at just 0.000057 dollars, making it the third least valuable currency globally. The kip’s decline is driven by sluggish economic growth, inflation, and mounting foreign debt.

Sierra Leonean Leone (SLL)

In Sierra Leone, the leone is among the cheapest currencies, with 1 leone worth only 0.000057 dollars. Meanwhile, US$1 is equivalent to approximately 17,665 leones. The currency’s weak position stems from persistent economic challenges such as high inflation and substantial debt obligations. Further compounding these issues are the lingering effects of the Ebola outbreak and recurrent civil wars in the country.

Lebanese Pound (LBP)

Lebanon’s pound has seen a steep decline due to ongoing economic and political turmoil. High unemployment rates, a banking crisis, and rampant inflation have left the currency significantly weakened. One Lebanese pound is valued at only 0.000067 dollars.

Indonesian Rupiah (IDR)

Despite Indonesia’s status as the largest country in Southeast Asia, its currency, the rupiah, remains one of the weakest globally. One rupiah is worth just 0.000067 dollars. Indonesia’s efforts to strengthen the rupiah are hindered by the threat of global economic contractions, which continue to challenge the nation’s economy.

Uzbekistani Som (UZS)

Uzbekistan implemented economic reforms in 2017, but these efforts have yet to fully address the country’s long-standing challenges, such as high unemployment, inflation, and widespread poverty. Corruption also plays a significant role in weakening the som’s value. Currently, US$1 equals approximately 11,420 Uzbek som.

Guinean Franc (GNF)

The Guinean franc is another currency with extremely low value, as 1 franc is equivalent to just 0.000116 dollars. Guinea’s currency struggles are largely attributed to political instability and high inflation, which have persisted for years.

Paraguayan Guarani (PYG)

The Paraguayan guarani has a value of about 0.000138 dollars, with US$1 equaling approximately 7,250 guarani. The currency’s low valuation is influenced by high inflation, as well as illegal activities like money laundering and drug smuggling that negatively impact its global standing.

Ugandan Shilling (UGX)

The Ugandan shilling is also one of the weakest currencies in the world, valued at 0.000267 dollars per shilling. US$1 equals around 3,700 shillings. Uganda’s ongoing challenges, including political unrest, an unstable economy, and substantial debt, hinder the shilling’s ability to gain strength in the international market.

The currencies listed above illustrate the complexities of global exchange rates and the economic, political, and social factors that contribute to the devaluation of these currencies. While some nations are actively working to stabilize their economies and strengthen their currencies, achieving significant improvement remains an uphill battle.

Despite inflation taking a toll on many New Yorkers’ bank accounts, some locals are thriving financially. A recent global ranking has crowned New York as the richest city in the world, outpacing cities like Paris, Singapore, and London in millionaire density.

The survey, conducted by Henley & Partners in collaboration with wealth intelligence firm New World Wealth, considered various factors to determine the wealthiest cities globally.

New York’s top ranking is largely attributed to its impressive number of affluent residents. The city boasts 349,500 millionaires, marking a 48% increase over the past decade. Additionally, it is home to 744 centi-millionaires—those with over $100 million in investable assets—and 60 billionaires.

While New York’s millionaire population grew significantly, London experienced a 10% decline over the same period, causing it to drop to fifth place in the rankings.

In total, 11 U.S. cities made it into the top 50 richest cities globally, reflecting the high cost of living and wealth concentration in many American metropolitan areas.

Top 10 Richest Cities in the World:

1. New York

2. The Bay Area

3. Tokyo

4. Singapore

5. London

6. Los Angeles

7. Paris

8. Sydney

9. Hong Kong

10. Beijing

The International Monetary Fund (IMF) has projected the top global economies for FY2025, ranking the United States as the world’s leading economic powerhouse with the highest projected GDP growth. Here is a breakdown of the countries expected to rank among the top 10 economies in 2025, according to the IMF’s latest estimates.

1. United States of America

The U.S. economy retains its lead, projected to be the fastest-growing major economy in FY2025. With an estimated GDP of $29,840 billion, the United States continues to showcase economic strength, a significant position in the global financial landscape.

2. China

Following the U.S., China is anticipated to hold the second position despite economic setbacks and sanctions from Western countries. The IMF estimates China’s GDP at $19,790 billion, demonstrating resilience and steady growth. This projection highlights China’s sustained position as a critical global economic player, remaining close behind the United States.

3. Germany

Germany is set to claim the third spot globally with a projected GDP of $4,591 billion. Although it narrowly escaped a recession recently and faces ongoing economic challenges, Germany’s recovery and stabilization efforts have paid off. The IMF’s report reflects cautious optimism about Germany’s economic footing.

4. India

India, which recently surpassed the United Kingdom, is now forecasted to leapfrog Japan and secure the fourth spot on the global economic leaderboard. The IMF estimates India’s GDP to reach $4,340 billion in FY2025, marking significant economic growth. “India’s momentum in surpassing major economies underscores its role as a rising economic force,” the IMF report notes.

5. Japan

Japan, which has long held the fourth position, is expected to experience a slight downturn, slipping to fifth place. With a projected GDP of $4,310 billion, Japan’s economic trajectory reflects challenges in maintaining previous growth rates. The IMF report attributes this shift to various economic pressures facing the country.

6. United Kingdom

The United Kingdom is anticipated to maintain its ranking as the sixth-largest economy globally, with a forecasted GDP of $3,685 billion. The IMF report recognizes the UK’s continued stability amid fluctuating global conditions, highlighting its role in the global economy.

7. France

France is set to retain its position as the world’s seventh-largest economy, with a projected GDP of $3,223 billion in FY2025. The IMF report acknowledges France’s sustained growth, placing it solidly within the top 10 economic powerhouses.

 

8. Brazil

Brazil is expected to move up to the eighth position, making a notable leap from its current ninth rank. The IMF’s forecast places Brazil’s nominal GDP at $2,438 billion in FY2025. This upward shift reflects Brazil’s strengthened economic framework and growth in various sectors.

9. Italy

Italy is projected to experience a minor drop, moving from eighth to ninth place. The IMF estimates its nominal GDP at $2,390 billion in FY2025. Despite its slight decline in ranking, Italy remains a significant contributor to the global economy.

10. Canada

Canada rounds out the top 10 largest economies with a projected GDP of $2,361 billion. The IMF’s projections for FY2025 underscore Canada’s consistent economic growth and stable position within the global economy.

Social Security isn’t designed to fully replace the income of the average worker, but it can still provide significant support. In July, the average benefit for a retired worker was $1,919.40, which, for many, isn’t enough to cover basic expenses, particularly as housing and medical costs continue to rise. However, it is possible to receive a much higher amount from Social Security—potentially even over $4,800 per month. The maximum benefit for retirees in 2024 is $4,873 per month, or $58,476 annually, which is comparable to the median income in the United States. This amount increases with yearly cost-of-living adjustments. While achieving this maximum benefit is difficult, it is possible if you meet specific criteria.

### Three Key Factors Impacting Social Security Benefits

There are three main factors that determine how much you’ll receive in Social Security benefits: your earnings history, when you were born, and the age at which you retire.

The first, and most important, factor is your earnings history. To be eligible for the maximum benefit, you need to have consistently earned a high salary throughout your career. The Social Security Administration (SSA) evaluates your earnings over your entire working life, adjusting for inflation, and selects your 35 highest-earning years. The average income from those 35 years is used to calculate your benefit. If you didn’t earn much or didn’t work for at least 35 years, this can significantly reduce your benefit, as the SSA averages zero-dollar years into your calculation.

The SSA then uses a benefits formula that takes into account your average earnings and your birth year to determine your primary insurance amount (PIA). This is the amount you will receive if you claim benefits at your full retirement age, which varies depending on when you were born. For those born between 1943 and 1954, the full retirement age is 66, and it gradually increases for those born later, maxing out at 67 for people born in 1960 or later.

The final factor is the age at which you retire. You can claim Social Security benefits as early as age 62, but your payments will be lower than your PIA. Conversely, if you delay claiming benefits beyond your full retirement age, your monthly benefit will increase until you reach age 70. For example, those with a full retirement age of 66 can receive a 32% increase in their PIA if they wait until 70 to begin collecting. However, there is no additional increase if you wait beyond age 70.

Maximizing Your Earnings History

Your earnings history is crucial for receiving the maximum benefit, but there’s an important detail to keep in mind: the SSA places a cap on the amount of income that is taxable for Social Security purposes. In 2024, the maximum taxable income is $168,600, which means only earnings up to this limit are considered when calculating Social Security taxes. The limit is adjusted yearly for wage inflation, so even if you earn more than the cap, only the amount up to the limit will be counted toward your benefits.

To be eligible for the maximum Social Security benefit, your income must meet or exceed the maximum taxable earnings limit for at least 35 years. If your earnings fall below the limit for even one year, it could reduce your benefit. The table below shows the maximum taxable earnings for Social Security over the past 50 years:

1975: $14,100

2000: $76,200

1976: $15,300

2001: $80,400

1977: $16,500

2002: $84,900

1978: $17,700

2003: $87,000

1979: $22,900

2004: $87,900

1980: $25,900

2005: $90,000

1981: $29,700

2006: $94,200

1982: $32,400

2007: $97,500

1983: $35,700

2008: $102,000

1984: $37,800

2009: $106,800

1985: $39,600

2010: $106,800

1986: $42,000

2011: $106,800

1987: $43,800

2012: $110,100

1988: $45,000

2013: $113,700

1989: $48,000

2014: $117,000

1990: $51,300

2015: $118,500

1991: $53,400

2016: $118,500

1992: $55,500

2017: $127,200

1993: $57,600

2018: $128,400

1994: $60,600

2019: $132,900

1995: $61,200

2020: $137,700

1996: $62,700

2021: $142,800

1997: $65,400

2022: $147,000

1998: $68,400

2023: $160,200

1999: $72,600

2024: $168,600

(Data from the Social Security Administration)

As these limits rise with inflation, your earnings need to keep up with them to maintain eligibility for the maximum benefit. If your salary falls short, it could reduce your overall retirement benefit.

Beyond Earnings: Timing and Birth Year Matter

While your earnings history plays the largest role, other factors influence how much you’ll receive from Social Security. For example, the $4,873 maximum monthly benefit for 2024 applies only to retirees who turn 70 this year. The benefit amount is slightly different depending on when you were born, reflecting changes in the benefits formula.

In addition, when you claim benefits is critical. To receive the highest possible monthly payout, you need to delay retirement until age 70. If you claim earlier, even by just a few months, your benefit will be reduced.

If you’re in line for the maximum possible benefit, it’s likely you’ve earned a relatively high salary for at least 35 years. However, if you’ve maintained a high income, you might also be accustomed to a lifestyle that requires more than $4,873 a month. Additionally, many people don’t want to wait until 70 to retire. In these cases, it’s essential to have personal savings to supplement your Social Security income.

Importance of Personal Savings

Regardless of your earnings history or the size of your Social Security benefit, relying solely on these payments is not advisable. Building up your personal savings throughout your career ensures that you won’t depend entirely on Social Security in retirement. The maximum benefit, if you qualify, can be a helpful supplement, but it shouldn’t be your primary source of retirement income.

As the article points out, “building up your personal savings so you only rely on Social Security for supplemental income is the best way to ensure you can retire on your own terms and live the life you want in your golden years.”

Don’t Overlook Potential Social Security Bonuses

If you’re like most Americans, it’s possible you’re behind on your retirement savings. However, several lesser-known strategies can help boost your Social Security benefits. For example, an easy trick could add up to $22,924 per year to your retirement income. Learning how to maximize your benefits can provide peace of mind and help you retire with confidence.

Social Security payments are a critical source of income for millions of American retirees. However, many recipients face an unexpected problem: the government often miscalculates the payments, resulting in either overpayments or underpayments. These errors can cause significant financial stress and confusion for those who rely on these funds to meet their daily needs.

The Social Security Administration (SSA) handles millions of benefit payments each month, and even a minor mistake in their calculations can impact thousands of people. Some beneficiaries have even faced the loss of their homes when the SSA tried to recover overpayments. Ed Weir, a former Social Security manager, recently highlighted this issue in a video on his YouTube channel, offering advice to Americans on how to ensure they receive the correct benefits.

In response to pressure from Congress earlier this year, Social Security Commissioner Martin O’Malley implemented a series of measures to address the overpayment issue. According to the SSA, payment errors can occur for a variety of reasons, including data entry mistakes, incorrect wage reporting, and misunderstandings of the complex rules governing benefits. These errors can also result in recipients receiving less money than they are entitled to. So, what steps can you take if you suspect your Social Security check is incorrect? Here are three common reasons why your payment might be wrong, along with suggestions on what you can do about it.

Incorrect Earnings Record

Your Social Security benefits are calculated based on your lifetime earnings, specifically the average of your highest 35 years of income. Errors in your earnings record can occur for several reasons, such as clerical mistakes, incorrect reporting by your employer, or even identity theft. For example, if your employer mistakenly reports your earnings under the wrong Social Security number, your record may show lower earnings than you actually made, which can significantly reduce your benefits.

To avoid this, it’s essential to regularly check your Social Security statement, which you can do online through the SSA website. If you find any discrepancies in your record, you should contact the SSA immediately to correct them. This proactive step can help prevent long-term issues and ensure you receive the correct amount of benefits.

Applying for the Wrong Program

The SSA offers several different programs designed to meet various needs, such as retirement benefits, disability benefits, and survivors’ benefits. Applying for the wrong program can lead to a denial of benefits or result in receiving less money than you are entitled to.

A common mistake occurs when individuals apply for Supplemental Security Income (SSI) instead of Social Security Disability Insurance (SSDI). Both programs provide financial assistance to disabled individuals, but they have different eligibility criteria and payment amounts. SSDI is based on your work history and earnings, while SSI is need-based and intended for people with limited income and resources. If you apply for SSI when you qualify for SSDI, you could receive lower benefits since SSI payments are generally less than SSDI payments.

Life Changes

Changes in your personal life, such as marriage, divorce, the death of a spouse, or the birth of a child, can also impact your Social Security payments. For example, if you get married, your benefits may change depending on whether you are receiving your own Social Security benefits or spousal benefits. Similarly, if you divorce, you may be eligible for spousal benefits based on your ex-spouse’s earnings. However, failing to report these life changes to the SSA can result in incorrect payments.

Overpayments might occur if you continue to receive benefits you are no longer eligible for, while underpayments can happen if you do not apply for benefits you are now entitled to. For instance, widows or widowers may qualify for survivor benefits, which are often higher than the benefits they were receiving on their own record.

How to Ensure You Receive the Benefits You Deserve

Relying on the government to get everything right might not be the best approach. Here are some steps you can take to maximize your Social Security benefits and correct any errors:

1. Regularly Monitor Your Social Security Account:

Create an online account with the SSA to access your Social Security statement, track your earnings record, and estimate your benefits. Regularly monitoring your account can help you spot and correct errors early, reducing the risk of financial issues in the future.

2. Review Your Earnings Record Annually:

It’s a good idea to check your earnings record at least once a year to ensure all your income has been accurately reported. If you notice any discrepancies, report them to the SSA immediately to prevent long-term problems and ensure that your benefits are calculated correctly.

3. Understand the Impact of Your Retirement Age:

The age at which you choose to retire can significantly affect the amount of your Social Security benefits. Understanding how retiring early or delaying retirement impacts your benefits can help you make more informed decisions and plan accordingly to maximize your payments.

By staying informed and proactive about your Social Security benefits, you can avoid many of the common errors that lead to incorrect payments. Whether it’s checking your earnings record regularly, applying for the correct program, or understanding how life changes affect your benefits, taking these steps can help ensure you receive the money you deserve.

India received close to $90 billion in remittance flows from around the world in 2022. The total remittance flows during the 2021-22 fiscal year were the highest received by India in a single year, data from India’s Ministry of Finance showed. India’s fiscal year starts on April 1 and ends on March 31.

The US, the world’s largest economy, was the biggest source of remittances to India, with a 23.4 per cent share in total remittance flows, followed by the UAE at 18 per cent. The UK was in third place with a 6.8 per cent share and Singapore was fourth with a 5.7 per cent share.

Singapore also ranked among the top remittance-sending countries to India. The Gulf countries, including the UAE, play a significant role in supporting India’s economy, as a large number of Indians residing there send money back home.

Saudi Arabia, the Arab world’s largest economy, was the sixth biggest source of remittances to India with a total share of 5.1 per cent in total remittances, while Kuwait, Oman and Qatar had a share of 2.4 per cent, 1.6 per cent and 1.5 per cent, respectively.

Recently, India and the UAE signed agreements to promote the use of local currencies and enhance cross-border transactions, further strengthening economic ties between the two nations.

The agreements, which promote the use of the Indian rupee and the dirham bilaterally, are expected to boost investments and remittances between the two countries, the Reserve Bank of India said on its website.

The two countries also agreed to co-operate on linking their fast payment systems – India’s Unified Payments Interface with the UAE’s Instant Payment Platform – to ease cross-border money transfers.

Last year, India and the UAE also signed a comprehensive economic partnership agreement, boosting economic ties between the two countries.

In June, Wealth X unveiled its yearly analysis of the global billionaire population. Utilizing RelSci, a data-driven platform, the organization examined a database containing 11 million influential individuals and 1.8 million organizations to determine where billionaires reside, based on their primary business addresses. The report revealed that the top-ranked cities housed 29% of the world’s billionaires in 2022, with nearly all of them being major global cities. This demonstrates the ongoing appeal of high-end businesses, as well as cultural and lifestyle opportunities for the ultra-wealthy.

Here are the top 10 cities with the highest number of billionaires:

New York City

Hong Kong

San Francisco

Moscow

London

Beijing

Los Angeles

Singapore

Shenzhen

Mumbai

New York City leads the pack with 136 billionaires in 2022. Despite losing two billionaires from 2021 to 2022, the city remains the global capital for billionaires. As the report states, “New York is home to the world’s largest stock markets, New York Stock Exchange and Nasdaq, and is also considered the biggest regional economy in the U.S.”

Hong Kong follows closely behind with a total of 112 billionaires, experiencing a similar decrease of two billionaires. The Wealth X report explains that although Hong Kong’s wealth portfolios were less exposed to the fluctuating global economy, the region’s divided political developments impact its attractiveness for billionaire non-financial businesses.

San Francisco ranks third with 84 billionaires, one less than in 2021. Despite this slight decline, the city witnessed a 68% growth in its high-net-worth population between 2012 and 2022, according to a Henley & Partners report. A March study from Wealth-X and REALM reveals that “there’s one ultra-wealthy homeowner in San Francisco for every 505 residents.”

Over the past decade, San Francisco has become synonymous with Silicon Valley, which experienced significant growth in 2022. The tech hub extends from the southern part of the San Francisco Bay Area to other cities such as San Mateo, Santa Clara, San Jose, Palo Alto, Cupertino, and Mountain View. Silicon Valley hosts major companies like Apple, Facebook, Google, Twitter, Nvidia, and more.

Following a court order extending the detention of former Pakistani Prime Minister Imran Khan, violence erupted in the country triggering rupee to slump to a record low.

The rupee fell by 1.9% and closed at an all-time low of 290.22 against a dollar based on State Bank of Pakistan data. On Thursday, bonds maturing in 2031 fell to their lowest point since November at 33.10 cents to the dollar due to these circumstances.

In response to the protests, Pakistan’s government requested the aid of their military to end the violent events after a judge ordered the 70-year-old politician to be in the custody of the anti-graft agency for eight days. He was detained on Tuesday.

Impacted by this unrest is Pakistan’s ongoing negotiations with the International Monetary Fund to restart its bailout program, without which the country would fall into default.

“The rupee is weakening on economic and political uncertainty, especially the delay in the IMF loan program,” said Owais-ul-Haq, a currency trader at Arif Habib Ltd. “The arrest of Imran Khan just worsened the situation.”

Your phone rings and it’s someone claiming to be from the Internal Revenue Service. Ominously, they say the police will be knocking on your door in minutes if you don’t pay your taxes right then and there.

Don’t fall for it. It’s not the IRS getting in touch with you.

Since 2018, more than 75,000 victims have lost $28 million to scammers impersonating the IRS over the phone, email, texts and more.

That’s according to data from the Federal Trade Commission, which enforces consumer protection laws, including those against fraud. The true number is almost certainly even higher, including reports to other agencies and victims who don’t make reports. And there are other types of tax scams altogether, like phony tax preparers and tax identity theft.

“Email and text scams are relentless, and scammers frequently use tax season as a way of tricking people,” IRS Commissioner Danny Werfel said in a news release last month.

As Tax Day approaches, here’s how the IRS actually contacts taxpayers and how you can spot imposters.

How the IRS will really contact you

“If the IRS contacts you, they’re never going to contact you first via email or telephone — they’re going to contact you in writing a letter,” says Christopher Brown, an attorney at the FTC.

A call or a visit usually only happens after several letters, the IRS says — so unless you’ve ignored a bunch of letters about your unpaid taxes, that caller claiming to be from the IRS is probably lying.

The IRS won’t threaten to have the police arrest you or demand that you make an immediate payment with a specific payment type, like a prepaid debit card. “That’s a sure sign that it’s a scam,” Brown says.

Taxpayers can always question or appeal what they owe, according to the IRS. Caller ID can be faked, so don’t think it’s real just because the caller ID says IRS, Brown says.

If you think a caller claiming to be from the IRS might be real, the IRS says you should ask them for their name, badge number and callback number, which you can verify with the Treasury Inspector General for Tax Administration by calling 1-800-366-4484. Then, you can either call the IRS back or report the scammer here.

What scams often look like

Aggressive and threatening scam phone calls impersonating the IRS have been a problem for years. Callers demand immediate payment, often via a specific payment method, and threaten arrest, driver’s license revocation and even deportation if you fail to pay up or provide sensitive personal information.

There isn’t data on the most common contact methods specifically for IRS imposter scams, but for government imposter scams overall, phone calls are the most common, Brown says.

These scams spread into emails and texts. Known as phishing and smishing scams, respectively, they were featured on this year’s “Dirty Dozen” list, an IRS campaign to raise awareness about tax scams.

“People should be incredibly wary about unexpected messages like this that can be a trap, especially during filing season,” Werfel, the IRS commissioner, said.

People get texts or emails that say “Your account has been put on hold” or “Unusual Activity Report” with a fake link to solve the problem. Clicking on links in scam emails or texts can lead to identity theft or ransomware getting installed on your phone or computer.

But scammers are always evolving. “Initially what we saw more was the threat with a demand that you make a payment, but then there was that new twist, which is, ‘Let’s not threaten, let’s sort of entice,’ ” Brown says.

That newer tactic of luring people with promises of a tax refund or rebate is more often employed over email or text as a phishing or smishing scam, Brown says. But both the threatening and enticing tactics are still prevalent, and they can be employed through any method of contact.

Consumers who are victims of imposter scams can report them to the IRS or to the FTC.

Regardless of the specifics, here’s a good rule of thumb from the FTC for spotting scams: “The government doesn’t call people out of the blue with threats or promises of money.” (NPR)

There soon may be new retirement rules in place that could make it easier for Americans to accumulate retirement savings — and make it less costly to withdraw them — if lawmakers pass a major spending package this week.

The retirement savings provisions – known as Secure 2.0 – were drawn from a House-passed bill and bills that were passed by two Senate committees.

“[SECURE 2.0] will help increase savings, ensure greater access to workplace retirement plans, and provide more workers with an opportunity to receive a secure stream of income in retirement,” said Thasunda Brown Duckett, president and CEO of TIAA, one of the largest US retirement service providers.

Here’s a look at seven of the provisions in the package, known on Capitol Hill as an omnibus, based on a breakdown from the Senate Finance Committee.

1. Require auto enrollment in 401(k) plans

Most employers starting new workplace retirement savings plans could be required to automatically enroll employees in the plan. (It is currently optional for employers to do so.) It would then be up to the employee to actively opt out if they don’t wish to participate.

The Secure 2.0 provision would require employers set a default contribution rate of at least 3% but not more than 10% for the employee plus an automatic contribution escalation of 1% per year up to a maximum contribution rate of at least 10% but not more than 15%.

The provision would go into effect after December 31, 2024.

2. Allow employer contributions for student loan payments

When you have to pay down student loan debt, it makes it harder to save for retirement. Secure 2.0 would let employers make a matching contribution to an employee’s retirement plan based on their qualified student loan payments. That way, it would ensure that the employee is building retirement savings no matter what.

The provision would take effect after December 31, 2023.

3. Increase the age for required minimum distributions

It used to be that when you turned 70-1/2 you had to start withdrawing a required minimum amount from your 401(k) or IRA every year. Then, the age moved up to 72. Under the Secure 2.0 package, it would move up to 73 starting in 2023 and then to 75 a decade later.

4. Help employees build and access emergency savings

Normally if you tap your 401(k) before age 59-1/2, you must not only pay taxes on that money, but also pay a 10% early-withdrawal penalty.

For employees who are dissuaded from saving money in a tax-deferred retirement plan because they are concerned it would be too complicated and costly to access it for emergencies, Secure 2.0 may assuage that fear: It would let employees make a penalty-free withdrawal of up to $1,000 a year for emergencies. While employees would still owe income tax on that withdrawal in the year it’s made, they could get that tax refunded if they repay the withdrawal within three years.

If they don’t repay the withdrawal, they would have to wait until the three-year repayment period ends before being allowed to make another emergency withdrawal. Enter your email to subscribe to the CNN Business Newsletter.

The provision would go into effect after December 31, 2023.

5. Raise catch-up contribution limits for older workers

Currently, if you’re 50 or older you may contribute an additional $6,500 to your 401(k) on top of the $20,500 annual federal limit in effect this year.

Under the retirement package, instead of $6,500, those aged 60, 61, 62 and 63 would be allowed to contribute $10,000, or 50% more than the regular catch-up amount in 2025, whichever is greater.

The provision would take effect after December 31, 2024.

To help pay for the cost of the retirement package, however, another provision which would go into effect a year earlier would require anyone with compensation over $145,000 to “Rothify” their catch-up contributions. So, instead of making before-tax contributions up to the catch-up limit, you could still contribute the same amount but you would be taxed on it in the same year. Your contribution would then grow tax free and may be withdrawn tax free in retirement. But the federal government would get the tax revenue from the original catch-up contribution up front.

6. Enhance and simplify the Saver’s Credit

An underutilized federal match exists for lower-income earners’ retirement contributions of up to $2,000 a year. The new package would enhance and simplify the so-called Saver’s Credit so more people could use it. Eligible filers (e.g., married couples making $71,000 or less) could get a matching contribution from the federal government worth up to 50% of their savings, but the match cannot exceed $1,000.

The provision would go into effect after Dec 31, 2026.

7. Make it easier for part-time workers to save

Part-time workers currently must be allowed to participate in a workplace retirement plan if they have three years of service and work at least 500 hours a year. The new package would reduce that service time to two years. The provision would go into effect after Dec. 31, 2024. (courtesy: CNN Business)

Mortgage rates jumped again, surpassing the 6% mark and reaching the highest level since the fall of 2008.  The 30-year fixed-rate mortgage averaged 6.02% in the week ending September 15, up from 5.89% the week before, according to Freddie Mac. That is significantly higher than this time last year, when it was 2.86%.

Stubbornly high inflation is pushing rates up, said Sam Khater, Freddie Mac’s chief economist.

“Mortgage rates continued to rise alongside hotter-than-expected inflation numbers this week, exceeding 6% for the first time since late 2008,” he said.

After starting the year at 3.22%, mortgage rates rose sharply during the first half of the year, climbing to nearly 6% in mid-June. But since then, concerns about the economy and the Federal Reserve’s mission to combat inflation have made them more volatile.

Rates had fallen in July and early August as recession fears took hold. But comments from Federal Reserve Chairman Jerome Powell and recent economic data have pulled investors’ attention back to the central bank’s fight against inflation, pushing rates higher.

The 10-year Treasury yield moved higher last week as markets prepared for further monetary tightening by the Fed, said George Ratiu, manager of economic research at Realtor.com.

The Federal Reserve does not set the interest rates borrowers pay on mortgages directly, but its actions influence them. Mortgage rates tend to track yields on 10-year US Treasury bonds. As investors see or anticipate rate hikes, they often sell government bonds, which sends yields higher and with it, mortgage rates.

Investors reacted to August’s inflation numbers, which showed that consumer prices continued to rise at 1980s levels, said Ratiu.

“Core inflation remains stubbornly elevated, putting pressure on the Federal Reserve to maintain an aggressive stance on monetary tightening,” he said. “Markets are keeping a close eye on the central bank’s meeting next week, expecting another 75-basis-point increase in the policy rate, if not a 100-basis-point jump.”

Sales are slowing, but affordability is still a challenge

As mortgage rates rise and home prices remain high, home sales are slowing.  With rates essentially double where they were a year ago, applications for home loans have dropped and applications to refinance into a lower payment have fallen off a cliff, down 83% from a year ago, according to the Mortgage Bankers Association.

“Higher mortgage rates … have contributed to more homebuyers staying on the sidelines,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.

A year ago, a buyer who put 20% down on a $390,000 home and financed the rest with a 30-year, fixed-rate mortgage at an average interest rate of 2.86% had a monthly mortgage payment of $1,292, according to calculations from Freddie Mac.

Today, a homeowner buying the same-priced house with an average rate of 6.02% would pay $1,875 a month in principal and interest. That’s $583 more each month.

“With real median household incomes remaining relatively unchanged, many first-time homebuyers are finding the door to homeownership is closed for this season,” said Ratiu.

He said that with borrowing costs expected to continue rising in the next few months, it is becoming increasingly clear that home prices need to decline to bring balance back to housing markets.

“Many sellers are recognizing the shift in market conditions and are responding by cutting their asking prices,” he said. “These changes are coinciding with the time of the year when buyers have historically found the best market conditions to find a bargain.”

The Indian Rupee breached the psychological 80-mark for the first time against the US dollar on Tuesday, July 18^th, declining to 80.06 per Dollar. The Reserve Bank of India intervened in the currency market to help the Rupee steady after hitting seven straight intraday record lows. A recovery in domestic shares also favored the Indian currency.

According analysts, a wobbly global macroeconomic environment marked by a spell of monetary tightening unleashed, firstly, by the Federal Reserve and being mimicked in earnest by the major central bank governors across the globe has led to an exodus of hot money from developing economies to the “safe haven” of the Dollar. The scenario is compounded further by record-breaking crude oil prices, which balloon India’s imports, diminish the cumulative value of India’s exports and widen our trade deficit.

It is a regular demand-supply market. Currently, there is a greater demand for Dollars than there is for the Rupee. Two factors have pushed demand — India’s current account deficit has sharply widened particularly after Russia invaded Ukraine, and investment in the Indian economy has fallen due to heavy flight of funds in recent months.

Depreciation of the Rupee makes imported items — including petrol and mobile phones — and gives India’s export a competitive edge. But India is a net importer. For those eyeing a trip abroad, earlier budgets on food, boarding, and transportation will now fall short – leaving one with the option to either expand their budgets or opt for countries where the rupee commands a stronger position compared to their domestic currencies.

The dollar has been appreciating against all currencies including the Euro. Market watchers, in fact, say that the Rupee has fared better compared to other currencies including the Euro.

In FY’22, as per the provisional figures released by the Reserve Bank of India (RBI), India’s current account deficit widened to $38.7 billion from a surplus of $23.9 billion in the previous FY.

A widening current account deficit indicates that Indians have been converting more of their rupees into dollars to complete trade and investment transactions consequently spiking up the demand for dollars. It doesn’t help that foreign institutional investors (FIIs) have been dumping Indian equities after a strong bullish spell, and making a beeline for US treasury notes and bonds.

The RBI has intervened by selling Dollars to check the Rupee’s slide. Else, the free market would have seen a further weaker Rupee. The current exchange market scenarios suggest that the rupee’s fall may continue for a few more months, breaching even the 82-mark. Congress leader Shashi Tharoor took a dig at the Rupee’s slide saying a “strong government” is “giving us a weaker Rupee”.