1926: Ask Farnoosh: Fraud Scares, Fed Rate Cuts and Investing 101 (Encore)

What It Covers

Farnoosh Torabi addresses personal fraud experience, Federal Reserve rate cuts, declining credit scores, housing market shifts, and answers listener questions about investing basics, estate planning, student loans, and salary negotiations.

Key Questions Answered

• •Fraud Protection Reality: Banks may deduct fraudulent charges from checking accounts for two business days during investigation, even when fraud is obvious. Consider keeping minimal balances in checking and moving excess funds to savings to limit exposure.
• •Credit Score Decline: National average credit score dropped from 717 to 715, the largest one-year decline since 2008. High credit card balances, student loan delinquencies, and buy-now-pay-later plans contribute. Keep credit utilization below 10% and pay balances in full.
• •Investment Timing Tax Strategy: Long-term capital gains (assets held over one year) are taxed at 15% or lower for most investors. Short-term gains (under one year) are taxed at your regular income tax bracket, potentially 37%, making holding period critical.
• •Salary Negotiation Timing: Request raises mid-week, after demonstrating measurable achievements, and six weeks before annual reviews. Provide metrics and data to help managers advocate upward, as budgets may already be set by review time.