Morning Download 

Personal finance + economics + markets

Together with VEED

Good morning investors! We hope you had a great Thanksgiving and you’re prepared to make some money.

Fun fact: The average household is said to have spent $107.01 chowing down on turkey, stuffing and all the fixings this year.

Today we cover:

• Gas prices are falling. 🛑 

• Stay away from retail stocks. ✋ 

• Taxes and maxing out your retirement accounts. 👨 

Follow us on Twitter for more.

📊 Economy and News 

Gas to get cheaper?

Oil prices tumbled more than 4% Wednesday after a group of the biggest oil producing nations said they would delay a meeting, originally scheduled for Sunday, to discuss making further cuts to global supply. The meeting will now happen on November 30.

Why? The organization did not give a reason but Reuters reported that the meeting had been delayed due to a disagreement around the current production levels of some members and possible cuts associated with them

Gas prices have declined in the country, helping inflation fall under 4%. The price stands at $81.36, down 8% in a month and 10% below where it was this time last year.

Why are prices falling? Increased US supply and decreased global demand are two reasons why prices have been going down despite a pledge by OPEC+ in April to slash its total output by 1.66 million barrels per day until the end of the year, and additional voluntary cuts announced by Saudi Arabia and Russia in the months since.

Target: EIA projects that the Brent spot price will average $91/bbl in this quarter and rise to an average of $96/bbl in second-quarter 2024, with some minor downward price pressures emerging in second-half 2024.

Global hits:

• Jack Ma halts plans to cut his Alibaba stake.

• UK lifts minimum wage by 9.8% to £11.44 per hour starting from April 2024.

• Mortgage rates fall for the fourth week but stay above 7%.

📈 Stocks

S&P 500 4,556.62 (+0.41%)
DJIA 35,273.03 (+0.53%)
NASDAQ 16,001.39 (+0.43%)
BRENT CRUDE 81.36 (-0.07%)
* Prices as of Nov 24th, 12:20 AM UTC

Smartphone sales rebound but retailers are in trouble

The global smartphone market grew 5% year-on-year in October after contracting for 27 months. This is a good sign for companies like Apple and Samsung as the trend is expected to continue in 2024.

Samsung continues to be the top name with a 20% share, followed by Apple with a 16% market share. Third on the list is Chinese brand Xiaomi with a 12% share. Other Chinese manufacturers such as Oppo and Vivo also enjoy a large share.

However, all is not well in the retail sector. A slew of retailers have issued tepid fourth-quarter outlooks over the past few weeks. Big names such as Nordstrom, Walmart, Target, and Best Buy aren't expecting good figures.

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🔐 Crypto

Bitcoin $37,352 (-0.01%)
Ethereum $2,067 (-.0.04%)
Total market cap $1.42T (-0.01%)
* Prices as of Nov 24th, 12:20 AM UTC

A look at the crypto world

Nothing much has happened in the crypto world over the last few days. However, despite the Binance fiasco and users withdrawing over $1 billion from the exchange, the environment is positive once again with Bitcoin trading above $37K.

Analysts expect a bull market in 2024 and all eyes are now on the Bitcoin ETF. In other news, Bitcoin supply continues to decrease, now standing at a record high of 70%. On the other hand, hacks are still common and HTX is the latest victim.

💵 Personal Finance

Taxes and maxing out your retirement accounts

Today we’ll talk about saving income tax money by maxing out your retirement accounts and employee benefits.

(If you’re not in the U.S. many countries have similar programs so be sure to look them up.)

First of all, let's be clear. Maxing out a retirement account may not be the best option for everyone, but if you are looking to save tax money then it can be a good option.

So, what does it mean to max out?

Maxing out refers to matching your employer's maximum contribution match while continuing to contribute as much as you are allowed to. These limits keep changing every year and currently stand at $22,500. The amount goes up to $30,000 for people above the age of 50.

New limits: Contribution maximums will increase from $22,500 to $23,000 for 401(k), 403(b) and most 457 plans, as well as the federal government’s Thrift Savings Plans.

The contribution limit on individual retirement accounts will increase by $500 in 2024, from $6,500 to $7,000.

The amount you can contribute to a Roth IRA phases out based on your adjusted gross income: In 2024, that range will increase to between $146,000 and $161,000 for single individuals and heads of households, up from between $138,000 and $153,000 in 2023.

For married couples filing jointly, the range increases to between $230,000 and $240,000.

How does it impact taxes?

The amount that you contribute is tax deductible, i.e. reduced from your taxable income. This applies to a variety of retirement accounts, including 401(k) and 403(b) plans.

Let’s calculate it now:

• A 44 year old worker who makes $100,000 this year and contributes the maximum amount ($22,500) to their retirement account will only be taxed on $77,500.

• On the other hand, a 55 year old worker can contribute an additional $7,500 for a total of $30,000. This brings their total taxable income to $70,000.

The latter will pay even less taxes based on the above calculation.

What if I do not have a retirement plan?

Don’t worry if you do not have a retirement plan, other options are also available. You can contribute up to $6,500 to a traditional individual retirement account to enjoy a tax break. This goes to $7,500 for people above 50.

Interested in knowing more about maximizing your retirement accounts? Check this video:

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👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.