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FJY News to Know #38

The Federal Reserve Has Voted in a Second-Rate Cut, But There’s Growing Opposition

Federal Reserve Chairman Jerome Powell may find it harder to pass future rate cuts — if the numbers from the latest cut vote are anything to go by. Out of 10 officials, seven voted to effect a quarter-percentage-point cut in interest rates, the second of its kind in two months. That’s one official less than the first vote. With more bank presidents disagreeing over the need for more rate cuts, read on to find out what challenges lie ahead for the Fed chairman.

Oil Prices Rise After Attack on Saudi Territory

Oil prices rose sharply following attacks on oil production facilities in Saudi Arabia. The attacks cut Saudi’s oil production by half, which translates to 5% of the global output. Government-owned Aramco Oil Company expects to restore full production by the end of this month. However, the Houthi movement which claimed responsibility for the attack has vowed to strike yet again — if Saudi Arabia does not withdraw from the Yemen Civil War. Find out whether a Saudi promise can sustain production in the face of rising hostility.

New and Flexible TSP Changes the Face of Retirement for Federal Workers 

The Thrift Savings Plan (TSP) has always benefited federal government workers by providing low expense investment options for retirement funds. A TSP Modernization Act, which became law in 2017, went into effect September 15th — making TSP more flexible than ever. It will now allow current employees and those separate from the federal service to make multiple withdrawals in a calendar year. Read on to see what other changes have been effected.

Exactly How Much Does Your Annuity Cost You? 

Many Americans have turned to annuities to guarantee an income after retirement. A huge percentage of people investing in annuities may, however, not be aware of the hidden costs in the fine print of their contracts. Commissions, penalties, surrender charges, and administrative fees could take a considerable chunk out of the value of your annuity. Hence, it’s vital to meticulously go through the contract and review all costs before purchasing one. Find out what these costs are, and how getting a fiduciary advisor will work in your favor.