🚙 Tesla up 15%

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Good morning investors! Some big earnings are expected today so keep your fingers crossed.

Today we cover:

• Family offices are investing elsewhere.

• Tesla roars back.

• Should you contribute the max?

📊 Economy and News 

Family offices moving out of stocks?

Latest reports indicate that family offices are moving away from stocks with 46% of their total portfolio in alternative investments.

Alternatives include private equity, real estate, venture capital, hedge funds and private credit.

Unlike stocks, which can swing wildly, alternatives such as private equity and private companies have more gradual valuation changes, smoothing out volatility.

Large family offices in the U.S. are even more concentrated in alternatives.

This transition from public to private markets marks a significant change in family offices, which are the private investment entities of affluent families.

With family offices currently managing over $6 trillion in assets, they are emerging as a formidable presence in private equity markets, direct deals, venture capital, and private credit.

Global hits:

• Europe is beating inflation. Why can’t America declare victory?

• FCC fines wireless carriers millions for sharing user locations without consent.

• Saudi Arabia says all NEOM mega projects will go ahead as planned despite reports of scaling back.

Important: Judge rejects J&J, Bristol Myers Squibb challenges to Medicare drug-price negotiations.

Some surprises:

• Natural gas prices perked up for the first time in weeks, rising more than +6%.

• Cocoa futures experienced their most significant single-day decline in history, dropping by as much as +17%.

📈 Stocks

S&P 500 5,116.17 (+0.32%)
DJIA 38,386.09 (+0.32%)
NASDAQ 17,782.72 (+0.36%)
BRENT CRUDE 88.31 (-0.10%)
* Prices as of Apr 30th, 12:20 AM UTC

Tesla surprises the market, jumps 15%

Tesla jumped about +15% yesterday after the electric carmaker passed a significant milestone to roll out its advanced driver-assistance technology in China.

This is an upgrade to Tesla’s Autopilot driver assistant.

The company has offered its FSD technology in China for years, but with a restricted feature set that limits it to operations, such as automated lane changing.

Moreover, the company has purportedly struck a deal with Baidu, enabling Tesla to integrate Baidu's mapping and navigation technology into its Full Self-Driving (FSD) feature.

The company is now up +34.26% in the last 5 days.

Reminder: Peacock streaming subscription prices to increase by $2 ahead of the Summer Olympics.

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💵 Personal Finance

Should you contribute the max?

Now that we know that the IRS has increased contribution limits, it’s time to think if we should max out our retirement accounts.

There is no one word answer.

Maxing out is good in most cases, but not always. We suggest that you decide ‘how much to contribute’ based on these factors:

Non-retirement goals

Don’t just consider retirement goals, look at non-retirement goals as well. Here’s a checklist to look at:

• Get rid of debt.

• Build an emergency fund.

• Get insurance, including health insurance, long-term care insurance, disability insurance, and life insurance, and ensure it is adequate.

• Establish a will or trust.

We suggest that you complete these goals before considering to maxing out a retirement plan. Also, a lot depends on your personal goals. For example, some individuals might prefer to own a house than to max out 401(k) contributions.

Look at alternatives

There might be some more interesting investment options out there, so consider those too. Fees and taxes play a vital role in this aspect.

If the fees in your employer-sponsored plan are high, consider directing any additional funds to a traditional or Roth IRA. However, if you find yourself with extra money after maxing out your IRA accounts, it may be beneficial to reinvest it in your 401(k).

When choosing between the traditional and Roth variety of an IRA or 401(k), the difference comes down to when you’ll be taxed. For example, with Roth accounts, contributions are made after taxes but retirement distributions are tax-free.

You will enjoy even more benefits such as a broader assortment of investments, including ETFs.

Summary: Max out your retirement accounts if you can do it without being in debt and giving up on other (important) goals.

Some people even consider cryptocurrencies an alternative. In fact, about 44% of Americans with retirement savings have invested in cryptocurrency.

Bitcoin has ben one of the best performing assets this year, so it might be a good idea to consider it but we suggest that you first understand the economy and where the price is heading.

We talked about Bitcoin in last week’s Pro newsletter and called it a ‘buy’, you can still read the issue by subscribing for FREE. Don’t miss out on great investment opportunities.

💰 Be a Better Investor

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

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