Personal Finance
4 steps to protect your finances
A UPS truck at the Palace Imports warehouse in Linden, New Jersey, US, on Wednesday, Aug. 27, 2025.
Michael Nagle | Bloomberg | Getty Images
After a wave of big companies announcing steep job cuts, many laid-off workers may face a financially difficult and uncertain period ahead.
Amazon said on Tuesday that it would eliminate around 14,000 corporate positions, and the United Parcel Service, or UPS, said it had reduced its operational workforce by 34,000 jobs this year. On Wednesday, General Motors laid off roughly 1,700 workers, and Paramount terminated 1,000 people. The Trump administration has also threatened to fire thousands of federal workers during the shutdown, but those efforts have been blocked so far in the courts.
“Now is a particularly challenging time to be unemployed,” said Michele Evermore, senior fellow at the National Academy of Social Insurance.
The Bureau of Labor Statistics didn’t publish its monthly jobs report in October because of the government shutdown. But analysts have been worried about the state of the employment market for months.
1. ‘Immediately file’ for unemployment
Despite the government shutdown, which began on Oct.1, states still have access to their state unemployment trust fund to pay out benefits, said Andrew Stettner, the director of economy and jobs at The Century Foundation.
“Eventually they will run out of federal funds to pay the staff that process the benefits, but we’ve not heard of that happening yet,” Stettner said.
As a result, those who’ve lost their job should “immediately file” for unemployment insurance, Evermore said. Before you do so, you’ll want to gather the following information: your pay over the last 18 months, names of previous employers during that period and their addresses, your Social Security number, state-issued identification and any documentation from your last company.
If you live in one state and work in another, you’ll want to apply for the jobless benefits in the state where you worked, experts say. On a DOL-sponsored website, you can find the contact information for state unemployment agencies.
A sign is displayed at the U.S. Department of Labor Frances Perkins Building on June, 2025 in Washington, DC.
Kevin Carter | Getty Images
State agencies should pay benefits within three weeks of your application, but delays have become more common since the pandemic, Evermore said.
“It’s probably going to get worse as layoffs increase,” she added.
Maximum unemployment benefit amounts vary by state. For example, California’s maximum weekly benefit is $450; in Florida, the cap is $275, Evermore said. In most states, claimants can get benefits for 26 weeks, she added — although the benefits last for just 12 weeks in some states, such as Florida.
2. Find new health insurance
For many workers, losing their jobs also means losing their health insurance.
Your first step is to find out when your workplace insurance officially expires, said Christine Eibner, a senior economist at Rand Corporation. Some companies provide additional months of coverage under their plan after a layoff.
Once your coverage lapses, you may be offered the chance to continue it under COBRA, shorthand for the Consolidated Omnibus Budget Reconciliation Act, said Caitlin Donovan, a spokeswoman for the Patient Advocate Foundation.
The option is “cost-prohibitive” for many people, Donovan said, because it requires them to pay the full premium, including the portion their company was previously paying. But if you can afford the price tag, it’ll cause the least disruption to your coverage. COBRA is usually available for between 18 months to 36 months, according to the Department of Labor.
Now is a particularly challenging time to be unemployed.
Michele Evermore
senior fellow at the National Academy of Social Insurance
Other options for getting new health insurance include enrolling in a spouse’s plan or seeking subsidized coverage on the Affordable Care Act Marketplace or through Medicaid, Eibner said. Those who’ve lost their employer health benefits typically have 60 days to sign up for an ACA Marketplace plan, Eibner added. (Open enrollment on the marketplace for 2026 starts on Nov. 1 in most states.)
At the heart of the current stalemate in Washington is whether or not to extend Covid-era enhanced tax credits for ACA marketplace enrollees. Those enhanced subsidies make health insurance premiums cheaper for tens of millions of Americans. Without that aid being extended, many people will see higher prices for marketplace coverage in 2026.
“However, the tax credits aren’t going away completely,” Eibner said. “They are just reverting to the original levels put into place under the Affordable Care Act.”
Medicaid is the cheapest health-care option and may actually cost you close to nothing, experts said. Eligibility is based in part on your current income, which may allow many newly unemployed workers to qualify — although jobless benefits may have an impact.
3. Check on your workplace retirement account
If your company offered a retirement account, you’ll need to decide what to do with that nest egg now.
You may be able to simply leave the money in the account, even though you won’t be able to contribute to it anymore or benefit from any employer match.
“This is a great option, especially if the funds in the account are strong and if the employee needs time to focus on other things,” said Dana Levit, a certified financial planner and the owner of Paragon Financial Advisors in the Boston area.
An exception: If you have less than $5,000 in your workplace retirement account, your employer may require that you move the funds.
You may also be able to transfer your funds without taxation or penalties to another qualified retirement plan, including a 401(k) at your next company if that’s allowed, or to an individual retirement account, Levit said. If your former employer isn’t forcing a transfer, there’s no need to rush into this decision.
While cashing out your 401(k) is another option, it’s not a desirable one, Levit said: “The distribution is taxable as ordinary income,” and “depending on the employee’s age, there could also be penalties for an ‘early withdrawal.'”
Laid-off workers who have an outstanding loan from their 401(k) may face an extra headache, Levit said.
“401(k) loans are typically due in full at termination,” she said. “If they are not repaid, the outstanding loan will be considered a taxable distribution subject to ordinary income taxes and potentially penalties.”
But it’s worth talking to your plan administrator and learning what your options are, Levit added: “Some have flexibility about continuing payments even after termination.”
4. Stay on top of student loans, other debt
People who’ve lost a job and are worried about their student loan bill have options, too. You can enroll in an income-driven repayment plan that sets your monthly payment based on your earnings and submit proof that you’ve lost your job; while unemployment benefits will count as income, you’re likely to get a low payment and some may not owe anything under their plan’s terms.
The U.S. Department of Education also offers an Unemployment Deferment, in which you can possibly pause your payments for up to three years after a job loss. Some student loans will still accrue interest during the payment pause, while others will not.
During a period of joblessness, you should ask other lenders “for a break,” said Ted Rossman, a senior industry analyst at Bankrate.
“Many lenders have hardship programs that allow you to skip a payment or rearrange a due date,” Rossman said. “Lenders are often willing to work with you, especially if it’s something temporary like a government shutdown, job loss or natural disaster.”
If you can manage it, making at least the minimum payments on all of your debts will avoid the start of any collection activity and possible risks to your credit, Rossman added.
On top of taking care of your finances, it’s also important to tend to your mental health after a job loss, Evermore said. That might mean sharing what you’re going through with others, including family, friends and a therapist.
“Unemployment is one of the most stressful things that can happen to a person, so be mindful of the fact that you are not alone,” Evermore said. “There are people who want to help you through this challenging time.”
The Federal Reserve held interest rates steady at the conclusion of its policy meeting on Wednesday.
In what could be Jerome Powell’s last as chair before President Donald Trump’s yet-to-be-confirmed nominee Kevin Warsh takes the helm, central bankers maintained the federal funds rate in a target range of 3.5% to 3.75%.
Inflation has surged since the war with Iran began, leaving policymakers with limited room to act, according to Sean Snaith, the director of the University of Central Florida’s Institute for Economic Forecasting. “We’re in a kind of suspended animation — between Iran and the Fed transition,” Snaith said.
Before the oil shock, inflation was holding above the Fed’s 2% target but not worsening. Now the jump in energy costs could have longer-term inflationary effects, economists say.
For Americans struggling in the face of higher gas prices and overall affordability challenges, the central bank’s decision to keep interest rates unchanged does little to ease budgetary pressures. “The cavalry isn’t coming anytime soon,” Snaith said.
How the Fed decision impacts you
The Fed’s benchmark sets what banks charge each other for overnight lending, but also has a trickle-down effect on many consumer borrowing and savings rates.
Short-term rates are more closely pegged to the prime rate, which is typically 3 percentage points above the federal funds rate. Longer-term rates, such as home loans, are more influenced by inflation and other economic factors.
Credit cards
Most credit cards have a short-term rate, so they track the Fed’s benchmark.
After the Fed cut rates three times in the second half of 2025, the average annual percentage rate has stayed just under 20%, according to Bankrate.
“Without Fed rate cuts, there’s not much reason to expect meaningful declines anytime soon, so carrying a balance will remain very expensive,” said Matt Schulz, chief credit analyst at LendingTree.
Mortgage rates
Fixed mortgage rates, on the other hand, don’t directly track the Fed but typically follow the lead of long-term Treasury rates.
Concerns about how the Iran war will impact the U.S. economy have already pushed the average rate for a 30-year, fixed-rate mortgage up to 6.38% as of Tuesday, from 5.99% at the end of February, according to Mortgage News Daily.
That leaves homeowners with existing low mortgage rates “feeling stuck,” said Michele Raneri, vice president and head of U.S. research and consulting at TransUnion. “Mortgages, more than any other credit type, work on a churn,” she said, referring to how a dip in rates can boost borrowing activity.
Student loans
Federal student loan rates are also fixed and based in part on the 10-year Treasury note, so most borrowers are somewhat shielded from Fed moves and recent economic uncertainty.
Current interest rates on undergraduate federal student loans made through June 30 are 6.39%, according to the U.S. Department of Education. Interest rates for the upcoming school year will be based in part on the May auction of the 10-year note.
Car loans
Auto loan rates are tied to several factors, including the Fed’s benchmark. Because financing costs remain elevated, new car buyers are taking on longer loans to keep their monthly payments manageable, according to the latest data from Edmunds.
Even so, with the rate on a five-year new car loan near 7%, the average monthly payment on a new car rose to $773 in the first quarter of 2026, an all-time high.
“Car buyers are in a tough spot right now because they’re getting squeezed from both ends: high sticker prices and high interest rates, with neither showing any signs of letting up,” said Joseph Yoon, consumer insights analyst at Edmunds.
“Until the rate picture shifts, buyers will keep stretching loan terms to make payments work, which only adds to the total cost of ownership down the road,” Yoon said.
Savings rates
While the Fed has no direct influence on deposit rates, the yields tend to be correlated with changes in the target federal funds rate. So, although rates on certificates of deposit and high-yield savings accounts have fallen from recent highs, they are holding above the annual rate of inflation.
For now, top-yielding online savings accounts and one-year CD rates pay around 4%, according to Bankrate.
“Yields on high-yield savings accounts and certificates of deposit are down from their peaks of a few years ago, but they’re still strong compared to what we’ve seen for most of the past decade,” Schulz said.
Milan Markovic | E+ | Getty Images
The average tax refund is 11.2% higher this season, compared with about the same period in 2025, according to the latest IRS filing data.
As of April 10, the average refund amount for individual filers was $3,397, up from $3,055 about one year ago, the IRS reported on Friday.
The IRS data reflects about 114 million individual returns received, out of about 164 million expected through Tax Day. Next week’s filing update is expected to include data through the April 15 deadline.
President Donald Trump‘s 2025 legislation, rebranded to the “working families tax cuts,” was a key talking point for Republicans on Tax Day.
With the November midterm elections approaching and Republicans defending slim majorities in Congress, many GOP lawmakers have highlighted Trump’s tax breaks and higher average refunds.
Meanwhile, affordability has been top of mind for many Americans amid rising costs of gas, electricity, food and other living expenses.
For filers who expected a refund this season, nearly one-quarter, or 23%, planned to use the funds to pay down credit card debt, and the same share said they would save the payment, according to the CNBC and SurveyMonkey Quarterly Money Survey, released in April. It polled 3,494 U.S. adults at the end of March.
Who benefited from Trump’s ‘big beautiful bill’
“It’s been a great tax season for the American people,” many of whom have benefited from Trump’s tax breaks, Treasury Secretary Scott Bessent said during a White House press briefing on Wednesday.
More than 53 million filers claimed at least one of Trump’s “signature new tax cuts” — the deductions for tip income, overtime earnings, seniors and auto loan interest — the Department of the Treasury also announced on Wednesday.
Those filers, who claimed the deductions on Schedule 1-A, have seen an average tax cut of over $800, according to the Treasury. Tax cuts can trigger a higher refund or reduce taxes owed, depending on the filer’s situation.
Some filers who itemize tax breaks have also seen benefits from the bigger federal deduction limit for state and local taxes, known as SALT. Trump’s legislation raised that cap to $40,000, up from $10,000, for 2025.
The latest SALT deduction limit change is expected to primarily benefit higher earners, according to a May 2025 analysis of various proposals from the Tax Foundation.
The Treasury has not released data on how many filers have claimed the SALT deduction during the 2026 filing season.
Traders work at the New York Stock Exchange on April 16, 2026.
NYSE
U.S. stocks climbed to record highs on Thursday against a backdrop of war, an oil supply shock and economic forecasts warning of stunted growth amid a protracted conflict.
Many investors may be thinking: Why?
Largely, it’s because the stock market is a barometer of what investors think will happen in the future, rather than an assessment of the present day, according to economists and market analysts.
Investors are essentially shrugging off the Middle East conflict as a blip that will be resolved relatively quickly, they said.
“The stock market isn’t trying to price what’s happening today,” said Joe Seydl, a senior markets economist at J.P. Morgan Private Bank. “The stock market is always trying to price what the world is going to look like six to 12 months from now.”
Why stocks have been ‘resilient’
The S&P 500, a U.S. stock index, fell about 8% in the initial weeks of the Iran war, from the start of the conflict on Feb. 28 to a recent low on March 30.
But stocks have rebounded since then, erasing all losses since the beginning of the war. The S&P 500 closed at an all-time high on Thursday — about 11% higher than its nadir at the end of March. That followed a record close on Wednesday.
“The market has remained very resilient in the face of the war and has rallied strongly on the prospect that it will be resolved,” said Mark Zandi, chief economist at Moody’s.
A ship waits to pass through the Strait of Hormuz following the two-week temporary ceasefire between the US and Iran, which is conditional on the opening of the strait, in Oman on April 8, 2026.
Shady Alassar | Anadolu | Getty Images
And while investors cheered the possibility of a diplomatic off-ramp to the conflict, the temporary ceasefire has appeared tenuous, with the U.S. and Iran each accusing the other of breaking the agreement.
Nations haven’t been able to reach a peace deal ahead of the ceasefire’s end. Vice President JD Vance said U.S. officials left peace talks in Pakistan over the weekend after the Iranian delegation refused to agree to American demands not to develop a nuclear weapon.
The markets ‘have memory’
Ultimately, the stock market is signaling a collective belief that tensions will ratchet down, the war will end in the near term and oil flows through the Strait of Hormuz will normalize, economists said.
That’s largely because investors have been conditioned to believe that President Donald Trump will back off if the economic pain becomes too intense, economists said — the so-called “TACO” trade, shorthand for “Trump always chickens out.”
“Investors strongly believe — and have been conditioned to believe — he’s going to stand down, find a way to pivot, declare victory and move on,” Zandi said.
Trump has pushed back on the notion of backing down, framing his brinkmanship as a savvy negotiating tactic.
Economists pointed to a recent example of this dynamic: in April 2025 during so-called liberation day, when the Trump administration levied a host of tariffs on U.S. trading partners.
Within days — after the stock market had cratered more than 12% — Trump announced a 90-day pause on those tariffs. Stocks then saw one of their biggest daily rallies in history following Trump’s reversal.
Investors remember that Trump often de-escalates geopolitical shocks — which is why they’ve seized on positive headlines that hint at progress in peace talks, for example, Seydl said.
“The markets have memory,” Seydl said.
AI stocks and the ‘tech boom’
Traders celebrating at the New York Stock Exchange on April 15, 2026, as the S&P 500 closed above the 7,000 level for the first time.
NYSE
There are other factors underpinning market resilience during wartime, economists said.
One is the investors’ enthusiasm for artificial intelligence and technology stocks, which account for almost half of the S&P 500’s market capitalization, Zandi said.
“Those stocks run on their own dynamic independent of anything, including the war in Iran,” Zandi said. “I think we would have been down a lot more and it would have been harder for us to recover had it not been for the very, very optimistic perspectives on AI.”
We’re in the middle of a “tech boom” — and investors are likely to remain optimistic until they think the tech cycle has run its course, Seydl said.
More broadly, stock investors are essentially making a bet on the future earnings growth of a company — and the earnings backdrop has been “pretty solid,” Seydl said.
Consumer spending appears to be stable, for example, economists said. And companies are getting a boost to their after-tax earnings from the GOP’s so-called “big beautiful bill,” which, among other things, made it easier to write off investments upfront and therefore reduce their tax liability, Zandi said.
Going forward
Experts said there will be an economic hit from the Iran war, though.
“Despite the recent news of a temporary ceasefire, some damage is already done, and the downside risks remain elevated,” Pierre-Olivier Gourinchas, director of research at the International Monetary Fund, wrote Tuesday.
A protracted conflict risks deep and global economic pain, he wrote.
Even if the conflict is short-lived — as the broad market expects — stocks are unlikely to march much higher until it’s clear the U.S. is on the other side of the war and its economic fallout, Zandi said.
If investors are incorrect, and President Trump doesn’t back down or quickly extricate the U.S. from the war, the stock market may see a “full-blown correction” or worse, Zandi said. A stock market correction is a decline of at least 10% from recent highs.
“Everyone thinks they know what the script is,” Zandi said. “Now they just need to follow the script. If they don’t, the market will have some real problems.”
The uncertainty provides yet another example of why the average investor with a long time horizon should stick to their investment plan and ignore the noise, experts said.
“Trying to time the market is very difficult if not impossible for the average investor,” Seydl said. “It’s better to take a long-term perspective and ride out bouts of volatility.”
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