Meet the ‘queen of caviar’ who supplies Britain’s royal family with the world’s most expensive food

Laura King, founder of King’s Fine Food, was awarded an MBE for charitable and voluntary services in 2020 for her work for people with brain tumors.

King’s Fine Food

Laura King has run a caviar business for almost 20 years — even supplying Britain’s royal family with the coveted foodstuff.

But when she started in the food industry, she wasn’t a fan of caviar, which is the name for sturgeons’ roe, or eggs. “I didn’t even like caviar,” she told CNBC by video call.

Now, she’s known as the “caviar queen,” and her firm King’s Fine Food imports hundreds of kilos of caviar into the U.K. every two to three weeks.

The company sells the delicacy to Michelin-starred chefs, upscale stores such as Harrods and Selfridges, and airlines including Cathay Pacific and Emirates.

British Airways was the company’s first customer, with King’s supplying its first-class cabins with caviar. King remembers feeling anxious when she took the airline’s director of food to a racing event during her early days in business.

“I remember thinking … ‘God, I hope he doesn’t want anything expensive to eat,'” she said, recalling her concern about the company’s tight hospitality budget.

Oscietra caviar is the most popular product sold by King’s Fine Food.

King’s Fine Food

Before starting her firm in 2004, King attempted to buy caviar supplier W.G. White, where she was sales director, but was unsuccessful. “But I thought my surname is quite strong, [so I decided to] just go out on my own,” she said.

King got a loan of £170,000 ($206,500), adding the sum to her family’s mortgage to set up an office as well as packing facilities and refrigerators — caviar must be kept at between minus 2 degrees Celsius and minus 4 degrees Celsius. And of course, the stock is expensive, starting at around £300 a kilo, King said.

“It was tough … You can’t pay yourself,” King said of the early days. “I had a husband who was working … so there was money coming in,” she said of her now late husband, John King, a chef who spent time in the kitchens of top London restaurants such as The Dorchester and Le Caprice.

Now, King oversees a team of 10, including her daughter Holly — the company’s sales director — and turns over £2.5 million to £3 million a year. About 80% of those sales are caviar, with the remainder including black and white truffles, Italian Amedei chocolates and luxury food hampers.

How to eat caviar

Caviar can be served on a blini with a little crème fraîche, according to Laura King, and, as seen here, with smoked salmon.

King’s Fine Food

One way of serving the delicacy is an absolute no-no: mixing it with chopped eggs, chives and lemon juice will “take away the taste of very poor-quality caviar,” King told CNBC.

And she’s not a fan of some less traditional ways to serve caviar. “Conran always used to serve it … on Melba toast. Now for me Melba toast is too crunchy, you know, it would ruin the caviar,” she said, referring to the late British restaurateur and designer Terence Conran.

Why is caviar so expensive?

Caviar should be served using mother-of-pearl or horn spoons rather than those made with silver or other metals, because they can tarnish its taste, according to King’s Fine Foods.

King’s Fine Foods

“There’s a mystique about it, and in some ways it’s quite romantic,” King told CNBC.

King’s most popular product is oscietra caviar, which sells for between £33.40 for 20g and £1,669 for 1 kilo. It takes about eight years for an oscietra sturgeon to produce eggs, which have a “nutty, mellow taste,” according to the company’s website.

“Sevruga, oscietra, beluga [are] historically from Iran and Russia, those were the three caviars that everyone recognized … so I think [oscietra] sits in the middle, it’s very well received, and it’s an amazing taste,” King told CNBC.

King’s sources much of its caviar from Belgium and China, and, since new environmental protection rules were introduced in 2006, all of it is from farmed sturgeon, rather than wild.

Tips for startups

King has two suggestions for startups: Know your product and do the math. “Where are you going to buy [your product] from and where are you going to sell it, and … who will give you credit?” she said.

You’ve got to convince your suppliers that you’ll be able to pay for stock, King added. “You’ve got no record, so why is someone going to deal with you?” Her firm now has exclusive deals with farm suppliers.

Expect to be involved in the details and work hard. Nearly two decades after starting her business, King still packs the product, makes deliveries and takes empty pallets to a recycling center herself, she said.

And keep cash on hand, she added. “I’ve kept the money in the business. We have a lot of reserves, so if something happened tomorrow, I can keep going … for about three years,” King said.

King’s has also spent time building its reputation, and has had to deal with two bouts of negative publicity.

Laura King (left), founder of King’s Fine Food, with her daughter Holly King, the company’s sales director.

King’s Fine Food

The company unwittingly bought a batch of caviar labeled as sevruga, when it was in fact an inferior breed, attracting headlines focusing on the fact that it was a supplier to Fortnum and Mason, grocer to the late Queen Elizabeth II. King’s now runs a DNA testing program to avoid such mishaps.

The company ran into a similar issue in 2021, when King’s sold a mislabeled batch of caviar to London restaurant Scott’s. But that was a printing error, and King sued the newspaper that reported it, which clarified that “the mislabelling was simply a printing error and not a deliberate attempt to pass off an inferior product as a superior one.”

“We have to protect our name,” King told CNBC. King’s plans to have daughter Holly take over in the next two to three years, with King spending more time on the family’s charity, the John King Brain Tumour Foundation, which she set up after her husband died from a brain tumor.

“Caviar is the most expensive food in the world, so it’s quite nice if you can give something back [to a cause] … you’re really passionate about,” King said.

“We’re two women in business, probably the only two women in the caviar business almost in the world. We’ve worked hard and we try and do a good job,” she said.

Royal supplier

King’s Fine Food gained its royal warrant in 2021, meaning it can use the Royal Arms, a coat of arms recognizing that it is a supplier to the royal household, on its products and website.

King is hoping to keep the mark now that King Charles III has succeeded Queen Elizabeth II and she expects the royal household to review warrant holders early next year.

“We have the royal warrant for the queen. We supply the king, so I’m hoping, touch wood, we’ll keep it,” she said.

Correction: This article has been updated to reflect that King’s oscietra caviar sells for between £33.40 for 20g and £1,669 for 1 kilo.

Source link

#Meet #queen #caviar #supplies #Britains #royal #family #worlds #expensive #food

It may take $10 million to achieve ‘financial freedom,’ say ‘Earn Your Leisure’ hosts

Troy Millings, left, and Rashad Bilal, co-creators of Earn Your Leisure.

Source: Tyrell Davis

Rashad Bilal and Troy Millings are among a growing class of financial influencers who want to help people be smarter about money.

The duo — a former financial advisor and a teacher, respectively — launched the podcast “Earn Your Leisure” nearly five years ago with a mission to promote literacy around money and entrepreneurship.

About 1 in 7 people lost more than $10,000 in 2022 due to a lack of financial literacy, according to a study by the National Financial Educators Council.

“I realized there were certain things that weren’t taught inside schools — financial literacy and financial education being one of them,” Millings said of the idea to create Earn Your Leisure.

More from Personal Finance:
As mortgage rates hit 8%, home ‘affordability is incredibly difficult,’ economist says
Student loan borrowers reenter ‘a very messy system’
The 10-year Treasury tops key 5% level: Here’s what that means for you

Today, Earn Your Leisure has expanded to create multiple podcasts, host live events and offer an online educational platform, EYL University. It has 1.4 million Instagram followers and another 1.4 million YouTube subscribers. Its flagship podcast has an average 3 million downloads a month, said Bilal and Millings. It’s also developing a financial literacy curriculum for high schools.

CNBC interviewed the duo — who have been friends since childhood — to talk about personal finance and financial literacy in the U.S.

This interview has been edited and condensed for clarity.

‘Investing is not just for rich and wealthy people’

Greg Iacurci: You told CNBC last year that your “purpose is financial literacy and empowerment.” When it comes to financial literacy, what’s the No. 1 mistake you see people making with their finances?

Rashad Bilal: Not understanding the importance of investing, or [not] knowing how compound interest works.

For a long period of time, investing was something that people looked at more as a luxury, not a necessity, [thinking] if you’re able to invest then you’re in the top 1%, or you have to be wealthy to even consider that.

Investing is not just for rich and wealthy people. It’s for everybody. You can start with smaller balances and dollar-cost average.

Troy Millings: The relationship with money: People don’t understand what to do with it or how to save it. These are simple concepts we’re not taught. When we don’t know what to do, we do what we know, and that’s often spending outside our means. Mistakes are made because nobody is educated.

People may have heard that investing and compound interest are important but might not know why. Can you speak to that?

Bilal: The only way to really achieve financial freedom is if your money is growing without you working for the money. How to achieve that is through investing. One dollar will only be $1 if it’s saved in the bank. But $1 can become $2 if it’s invested.

Most people understand this without even fully realizing that they understand it because they have a retirement plan. The whole point of a retirement plan is investing. You put money into a 401(k), and that money gets invested with the expectation that when you’re 65, 70 years old you’ll have a nest egg you can draw from and live off of in retirement.

The only pathway to not working forever, to having money in abundance, is to find ways to make more money with the money you currently have.

What it takes to achieve financial freedom

Troy Millings, left, and Rashad Bilal, co-creators of Earn Your Leisure.

Source: Greenleaf Multimedia

You mentioned financial freedom. How much money does someone need to be financially free?

Bilal: I think everybody is different. I think it depends on where you live. But I would say, I think you have to be in the eight-figure-net-worth range if you live in suburban or metropolitan areas. I would say around that $10 million figure would provide some level of comfort if other aspects of your life are maintained.

And what is financial freedom?

Millings: I think it’s having enough financial resources to pay for your lifestyle, your living expenses, and also allows you money to invest.

It could differ. It could be in that eight-figure range. Or it could be seven figures. It’s really about having the financial resources to do what you want and invest and create generational wealth. It needs to be something that lasts for generations.

Earn Your Leisure co-founders on the importance of financial literacy

Some people might hear that — seven or eight figures — and think, “How is that possible for me?” Do you think it’s possible for most people?

Bilal: Most people probably aren’t going to make $10 million — I’m just being honest to the question you asked. We have to be honest.

But some people will. This is why we’re big on entrepreneurship, we’re big on investing. You might not be able to accumulate $10 million in your lifetime, but you might be able to accumulate $1 million or $1.5 million. That’s still better than being 70 years old with $20,000 in your bank account.

I think the aspiration towards a certain goal, you might not be able to actually obtain that goal, but if you fall short you’ll still probably be better [off] than you would have been if you had no aspiration and didn’t follow any rules or didn’t try to invest or start a business; you live off what you have. You won’t buy a $1 million home if you only have $1,000 in your bank account. Your life will still be better financially than if you didn’t follow the pathway towards the goal.

Making it ‘cool to be educated’ about money

For the person who’s just starting out investing, how would you suggest they go about it?

Millings: When you’re young, you want to be as aggressive as possible, and when you’re older, you want to get more conservative. Risk mitigation is a huge part of that. We always tell people to start with indexes — an entire index or entire [industry] sector in an exchange-traded fund. That keeps you from having the volatility of watching a stock either appreciate — where you might get some upside — or depreciate, where the risk on the downside is far greater. 

High school classes in financial literacy use real-world examples to teach budgeting

In a recent discussion with entrepreneur and musician Sean “Diddy” Combs, you mentioned that when he met you, he said you “make it cool to be educated.” How do you go about that?

Millings: We’re authentically ourselves, so there’s a natural relatability because people see themselves in us. When people talk about finance they try to make it a language that is upspoken to the masses. Our mission was to democratize it, to make it seem like something that can be very relatable and digestible. We show up the way we are, we wear sweatshirts, we wear hoodies. We represent everybody. It doesn’t feel like it’s only for the elite or it’s only for a select crowd.

It’s the same thing in the classroom: A student has to realize this is someone I can learn from and who I want to teach me. Our audience kind of feels that way when they look at us. We’re also very vocal that we’re learning as well. We don’t know everything, and we bring people on [the show] who can educate us.

‘Having money doesn’t alleviate the problems’

For your podcasts, you’ve interviewed several famous and wealthy people — pro athletes, musicians and entertainers, for example. Are there certain things about finance that seem just as confusing for the rich and famous as for the average person?

Bilal: Yeah, I think a lot of people don’t have a full understanding of finance. It doesn’t matter how much money you make. That’s a common misconception.

Having money doesn’t alleviate the problems, it just makes the problems even worse. Understanding money or having a good understanding of money isn’t something that’s correlated with how much money you have.

Financial literacy is something I think gets metastasized on the highest level. Those are the same issues that everybody else has, it’s just everybody else doesn’t have the opportunity to lose $30 million or invest $20 million into a bad investment and then it goes belly up. If given the opportunity they probably would, it’s just they don’t have it. It’s a bigger microscope on celebrities because they’re public figures.

Is that because wealthy people and celebrities have a capacity to overspend more than the average person?

Bilal: I think it’s not so much just a spending situation. That’s a common misconception also, that they go broke because they spend money lavishly. That’s one part of it. But another major part is they’re actually trying to do the right thing, they’re just misinformed.

You see a lot of people make bad decisions when it comes to investing. They’ll invest in things that might be Ponzi schemes, bad real estate deals, they’ll be led down a bad path when it comes to financial advisors or people they trust. They think they’re doing something productive with their money but they actually are losing money because the investments aren’t fully vetted, they don’t fully understand what they’re investing in.

So I think it’s a little more complicated than just spending habits. It all comes back to not having a basic level of understanding and education when it comes to money.

It seems there’s some relatability there for everyday people.

Bilal: For sure. Look at crypto, for example. If you look at [the cryptocurrency] dogecoin, a lot of people made misinformed decisions. They thought they were doing something productive. They didn’t go into it with the intention of losing money. In their brain it was like, ‘This is an opportunity to turn $5,000 into $20,000.’ And they potentially lost all of their money.

It’s the same thing [with celebrities]. It’s just played out on bigger levels.

Source link

#million #achieve #financial #freedom #Earn #Leisure #hosts

‘COVID isn’t done with us’: So why have so many people started rolling the dice?

Hersh Shefrin, a mild-mannered behavioral economist at Santa Clara University, still wears a mask when he goes out in public. In fact, he wears two masks: an N95 medical-grade mask, and another surgical mask on top. “I’m in a vulnerable group. I still believe in masking,” Shefrin, 75, told MarketWatch. It’s worked so far: He never did get COVID-19. Given his age, he is in a high-risk category for complications, so he believes in taking such precautions.

But not everyone is happy to see a man in a mask in September 2023. “A lot of people just want to be over this,” Shefrin, who lives in Menlo Park, Calif., said. “Wearing a mask in public generates anger in some people. I’ve had people come up to me and set me straight on why people should not wear masks. I’ve had people yell at me in cars. It might not match with where they are politically, or they genuinely feel that the risks are really low.”

His experience speaks to America in 2023. Our attitude to COVID-related risk has shifted dramatically, and seeing a person wearing a mask may give us anxiety. But how will we look back on this moment —  3½ years since the start of the coronavirus pandemic? Will we think, “There was a mild wave of COVID, but we got on with it”? Or say, “We were so traumatized back then, dealing with the loss of over 1.1 million American lives, and struggling to cope with a return to normal life”?

We live in a postpandemic era of uncertainty and contradiction. Acute respiratory syndrome coronavirus 2, or SARS-CoV-2, is back, yet it never really went away. Roughly a quarter of the population has never tested positive for COVID, but some people have had it twice or three times. Few people are wearing masks nowadays, and the World Health Organization recently published its last weekly COVID update. It will now put out a new report every four weeks.

‘I’ve had people come up to me and set me straight on why people should not wear masks.’


— Hersh Shefrin, 75, behavioral psychologist 

People appear sanguine about the latest booster, despite the Centers for Disease Control and Prevention recommending that people get the updated shot. Fewer than a quarter of Americans (23%) said they were “definitely” planning to get this shot, according to a report released this week by KFF, the nonprofit formerly known as the Kaiser Family Foundation. Some 23% said they will “probably get it,” 19% said they will “probably not get it” and 33% will “definitely not get it.”

Do we throw caution to the wind and treat fall and winter as flu, RSV and COVID season? It’s hard both to avoid COVID, many people contend, and to lead a normal life. The latest wave so far is mild, notwithstanding recent reports of extreme fatigue. Scientists have voiced concerns about potential long-term cognitive decline in some severe cases, but most vaccinated people recover. Still, scientists say it’s too early to know about any long-term effects of COVID.

Amid all these unknowns are many risk-related theories: The psychologist Paul Slovic said we evaluate risk based on three main factors. Firstly, we rely on our emotions rather than the facts (something he calls “affect heuristic”). Secondly, we are less tolerant of risks that are perceived as dreadful and unknown (“psychometric paradigm theory”). Thirdly, we become desensitized to catastrophic events and unable to appreciate loss (“psychophysical numbing”).

Shefrin, the behavioral economist, said these three theories influence how we cope with COVID. “Early in the pandemic, the ‘dread factor’ and ‘unknown factor’ meant we all felt it was very risky,” he said. “But we began to see that the people who were most affected were older with comorbidities. The dread factor is way down because of successful vaccinations. We certainly feel that the unknowable factor is down, but with new variants there is potentially something to worry about.”

Hersh Shefrin: “We certainly feel that the unknowable factor is down, but with new variants there is potentially something to worry about.”


c/o Hersh Shefrin

Habituation and status quo lead to inaction

The profile of risk has changed dramatically since the pandemic began. Vaccines protect the majority of people from the most serious effects of COVID — for the 70% of Americans who have gotten the two initial COVID shots. So should we focus on living for today, and stop worrying about tomorrow? Or, given all the unknowns, are we still rolling the dice with our health by boarding crowded subway trains, socializing at parties and stepping into the office elevator?

The number of people dying from COVID has, indeed, fallen dramatically. Weekly COVID deaths in the U.S. peaked at 25,974 during the week of Jan. 9, 2021. There had been 60 COVID-related deaths during the week of March 14, 2020 — when the WHO declared the outbreak a worldwide pandemic — far fewer than the 607 deaths during the week of Sept. 23, the most recent week for which data are available. But in March 2020, with no vaccine, people had reason to be scared.

“COVID deaths are actually worse now than when we were all freaking out about it in the first week of March 2020, but we’re habituated to it, so we tolerate the risk in a different way. It’s not scary to us anymore,” said Annie Duke, a former professional poker player, and author of books about cognitive science and decision making. “We’re just used to it.” Flu, for example, continues to kill thousands of people every year, but we have long become accustomed to that.

A dramatic example of the “habituation effect”: Duke compares COVID and flu to infant mortality throughout the ages. In 1900, the infant-mortality rate was 157.1 deaths per 1,000 births, falling to 20.3 in 1970, and 5.48 deaths per 1,000 births in 2023. “If the 1900 infant-mortality rate was the same infant-mortality rate today, we’d all have our hair on fire,” she said. “We think we would not live through that time, but we would, as people did then, because they got used to it.”

‘COVID deaths are actually worse now than when we were all freaking out about it in the first week of March 2020.’


— Annie Duke, former professional poker player

Duke, who plans to get the updated booster shot, believes people are rolling the dice with their health, especially concerning the long-term effects. The virus, for example, has been shown to accelerate Alzheimer’s-related brain changes and symptoms. Could it also lead to some people developing cognitive issues years from now? No one knows. “Do I want to take the risk of getting repeated COVID?” Duke said. “We have this problem when the risks are unknown.”

When faced with making a decision that makes us uncomfortable — usually where the outcome is uncertain — we often choose to do nothing, Duke said. It’s called “status quo bias.” There’s no downside to wearing a mask, as doctors have been doing it for years, but many people now eschew masks in public places. Research suggests vaccines have a very small chance of adverse side effects, but even that highly unlikely outcome is enough to persuade some people to opt out.

And yet Duke said people tend to choose “omission” over “commission” — that is, they opt out of getting the vaccine rather than opting in. But why? She said there are several reasons: The vaccine comes with a perceived risk, however small, that something could go wrong, so if you do nothing you may feel less responsible for any negative outcome. “Omission is allowing the natural state of the world to continue, particularly with a problem that has an unknown downside,” she said. 

Here’s a simple example: You’re on the way to the airport in a car with your spouse, and there’s a roadblock. You have two choices: Do you sit and wait, or do you take an alternative route? If you wait and miss your flight, you may feel that the situation was beyond your control. If you take a shortcut, and still miss your flight, you may feel responsible, and stupid. “Now divorce papers are being drawn up, even though you had the same control over both events,” Duke said.

Annie Duke: “COVID deaths are actually worse now than when we were all freaking out about it in the first week of March 2020.”


c/o Annie Duke

Risk aversion is a complicated business

Probably the most influential study of how people approach risk is prospect or “loss-aversion” theory, which was developed by Daniel Kahneman, an economist and psychologist, and the late Amos Tversky, a cognitive and mathematical psychologist. It has been applied to everything from whether to take an invasive or inconvenient medical test to smoking cigarettes in the face of a mountain of evidence that smoking can cause cancer. 

In a series of lottery experiments, Kahneman and Tversky found that people are more likely to take risks when the stakes are low, and less likely when the stakes are high. Those risks are based on what individuals believe they have to gain or lose. This does not always lead to a good outcome. Take the stock-market investor with little money who sells now to avoid what seems like a big loss, but then misses out on a life-changing, long-term payday.

As that stock-market illustration shows, weighing our sensitivity to losses and gains is actually very complicated, and they are largely based on people’s individual circumstances, said Kai Ruggeri, an assistant professor of health policy and management at Columbia University. He and others reviewed 700 studies on social and behavioral science related to COVID-19 and the lessons for the next pandemic, determining that not enough attention had been given to “risk perception.”

So how does risk perception apply to vaccines? The ultimate decision is personal, and may be less impacted by the collective good. “If I perceive something as being a very large loss, I will take the behavior that will help me avoid that loss,” Ruggeri said. “If a person believes there’s a high risk of death, illness or giving COVID to someone they love, they will obviously get the vaccine. But there’s a large number of people who see the gain and the loss as too small.”

‘If a person believes there’s a high risk of death, illness or giving COVID to someone they love, they will obviously get the vaccine.’


— Kai Ruggeri, psychologist

In addition to a person’s own situation, there is another factor when people evaluate risk factors and COVID: their tribe. “Groupthink” happens when people defer to their social and/or political peers when making decisions. In a 2020 paper, social psychologist Donelson R. Forsyth cited “high levels of cohesion and isolation” among such groups, including “group illusions and pressures to conform” and “deterioration of judgment and rationality.”

Duke, the former professional poker player, said it’s harder to evaluate risk when it comes to issues that are deeply rooted in our social network. “When something gets wrapped into our identity, it makes it hard for us to think about the world in a rational way, and abandon a belief that we already have,” she said, “and that’s particularly true if we have a belief that makes us stand out from the crowd in some way rather than belong to the crowd.”

Exhibit A: Vaccine rates are higher among people who identify as Democrat versus Republican, likely based on messaging from leaders in those respective political parties. Some 60% of Republicans and 94% of Democrats have gotten a COVID vaccine, according to an NBC poll released this week. Only 36% of Republicans said it was worth it, compared with 90% of Democrats. “When things get politicized, it creates a big problem when evaluating risk,” Duke added.

Risk or no risk, “COVID isn’t done with us,” Emily Landon, an infectious-diseases specialist at the University of Chicago, told MarketWatch. “Just because people aren’t dying in droves does not mean that COVID is no big deal. That’s an error in judgment. Vaccination and immunity is enough to keep most of us out of the hospital, but it’s not enough to keep us from getting COVID. What if you get COVID again and again? It’s not going to be great for your long-term health.”

Source link

#COVID #isnt #people #started #rolling #dice

The first tour inside Manhattan’s newest private club, with $100,000 membership fees

A battle between elite membership clubs is about to reach a whole new level, as Core Club’s new 60,000-square-foot megaclub prepares to open in Manhattan next month.

The new Core space, spread over four floors above Midtown, is the latest in a wave of elite membership clubs that have opened in major cities since the pandemic. From Casa Cipriani and Zero Bond in New York, to the Aster and Heimat in Los Angeles and ZZ’s Club in Miami, the clubs have redefined the old-world membership clubs and created safe spaces for today’s privacy-minded, highly mobile wealthy.

More than a dozen new clubs have opened or announced plans to open in Manhattan since 2020. Some, like Aman, are offshoots of hotel brands. Others, like ZZ’s and Casa Cipriani, leverage the cult-like fan base of their restaurants. Many are geographic expansions of existing hotspots, like LA’s famed San Vicente Bungalows opening in New York.

A rendering of a bar area at the Core Club, a private membership club in Midtown Manhattan.

Courtesy: Core Club

The club boom has created an arms race of amenities, with clubs vying to outdo each other with dining spaces, celebrity chefs, wellness spas, gyms, bars, pools, nightclubs, plush hotel suites and high-tech board rooms. ZZ’s Club, owned by Major Food Group and scheduled to open in Hudson Yards this fall, will boast multiple restaurants and a “culinary concierge” — a team of chefs able to whip up any dish that it’s members request.

“No one’s ever done this before,” said Jeff Zalaznick, managing partner for Major Food Group. “We’ve got so much talent in this kitchen. If you want your mother’s meatloaf in two days, we can make it. You want fried chicken, we can make it and probably make a great version.”

The price for access is soaring: the Aman Club in Manhattan, part of Aman New York’s new 83-suite hotel, charges $200,000 for membership along with $15,000 a year in annual dues. Core’s memberships range from $15,000 for an individual membership to $100,000 for a family membership, along with annual dues of $15,000 to $18,000 a year.

With more clubs scheduled to open in the fourth quarter and beginning of next year, some members worry that New York and other big cities are becoming over-saturated with club offerings, especially if the economy plunges into recession.

Club owners and managers say they see no slowdown in demand, as the wealthy seek communities and private spaces where they can work, play, stay and network in a secure and exclusive space.

Industry watchers say the U.S. may be moving toward the London model of social clubs, where storied institutions like Annabel’s, 5 Hertford Street and White’s play a central role in the social and professional lives of the upper crust. Soho House, founded in London in 1995 by restauranteur Nick Jones, has expanded to become the global goliath of the private club world, with dozens of locations around the world and a publicly traded stock.

Casa Cipriani private membership club in New York.

CNBC

Core Club’s founder and CEO, Jennie Enterprise, said that after the pandemic, the wealthy value privacy and a sense of community more than ever.

“I think the proliferation of private clubs is a reflection of an exceptional business model,” she said. “The annuity subscription-based business model in any industry is attractive. The activity in the space certainly reflects a desire for curated communities and experiences. And probably with a dynamic of social media, and a lack of privacy, I think that discretion and private communities are probably something that is more aligned with the culture of the moment.”

A rendering of a terrace at the Core Club, a private membership club in Midtown Manhattan.

Courtesy: Core Club

Club owners say members often join multiple clubs, since each has its own focus and atmosphere. Zero Bond, founded by nightclub impresario Scott Sartiano, has more of a nightclub vibe and has hosted Kim Kardashian, Pete Davidson and Gigi Hadid. Aman has the hushed (some say eerily quiet) feel of a zen resort, while Casa Cipriani features the flashy, people-watching theater of Cipriani’s storied New York eateries.

Zalaznick said his affluent clientele is “spending more than ever” at ZZ’s Club in Miami and the company’s high-end restaurants, which bodes well for the forthcoming ZZ’s Club New York.

“The things that bring people back are great food, great service, great experiences, great connections and the staff’s ability to cater to people’s needs or desires,” he said. “That’s our focus, and that’s what will give us longevity in the club space.”

Core gave CNBC an exclusive first tour of its new club at 711 Fifth Avenue, scheduled to open in mid-October. The group opened its first space in 2005 at a nearby location on 55th street and became the most successful of the new breed of modern, business-oriented membership clubs. In need of more space and a fresh look, Core leased four floors on the top of the former Coca-Cola building and spent two years and tens of millions of dollars building the ideal layout.

Spanning the 15th through 18th floors, Core has over 6,000 square feet of outdoor terrace space with views of Central Park and the glass towers of Midtown.

The 15th floor houses 11 luxury hotel suites, which are between 500 and 750 square feet apiece. Priced at around $1,500 per night, the rooms will be available for guests or their family members. The same floor also houses a spa with treatment rooms and a salon.

A rendering of the Core Club, a private membership club in Midtown Manhattan.

CNBC

The 16th floor is home to the gym, juice bar and the Dangene Institute, which features the latest in anti-aging skincare technology.

On the 17th floor, members will find a speakeasy-style lounge, which includes a stylish bar, blue velvet couches and a glass wine and champagne vault, called the wine library. Another set of glass doors leads to the culinary lab, a U-shaped table where celebrity chefs from around the world will serve up special dishes for members.

A rendering of the Core Club, a private membership club in Midtown Manhattan.

Courtesy: Core Club

The 18th floor houses the more formal dining area, which will serve mostly Mediterranean fare during the day and a more seasonal, varied menu at night. Core’s culinary program is headed by Chef Michele Brogioni, the celebrated former executive chef at Giorgio Armani. The club’s bread and pastries (including what is arguably New York’s best lemon cake) is overseen by head pastry chef Mauro Pompili.

The 18th floor also houses state-of-the art conference and board rooms, a screening room and a flexible events space and gallery that can be used for exhibits, parties and big gatherings.

Along with the Manhattan club, Core has new locations in Milan and San Francisco and has plans for several others in the coming years, Enterprise said.

A rendering of a dining area at the Core Club, a private membership club in Midtown Manhattan.

Courtesy: Core Club

Yet Core’s main draw, she said, isn’t the spaces or the amenities, but the community and well-spring of ideas. Core produces between 150 and 200 cultural events a year, from performances, exhibits and talks, to tastings, interviews and showcases.

“We’re ideas-led, not amenities-led,” Enterprise said. “Clearly we have beautiful, world-class amenities. But what defines us is the quality of our ideas. We curate a community of relentlessly curious and unlike-minded people from across the spectrum. So people can intersect with other people from media sports, fashion, finance, science, technology, design and beyond. Our commitment to cultural programming reflects a desire for our members to endlessly cultivate themselves.”

While Core never discloses the names of any of its members, some cited in past media reports include Blackstone CEO Stephen Schwarzman, NFL Commissioner Roger Goodell, fashion designer Tory Burch, Vornado CEO Steven Roth and Estee Lauder Executive Chairman William Lauder.

Since the new location is nearly twice the size as its prior outpost and can accommodate more members, Core is accepting and starting to review new applications.

“We are getting a lot of applications,” Enterprise said. “There is no single requirement. We look for interesting, curious people who will add to the community.”

A rendering of the Core Club, a private membership club in Midtown Manhattan.

CNBC

Source link

#tour #Manhattans #newest #private #club #membership #fees

Where to stay in India? Here are 8 former palaces that are now hotels

The Maharajas of India’s past built magnificent palaces as a symbol of their power.

But in 1971, India abolished “privy purses,” or governmental payments made to these rulers. Several of them transformed their vast estates into heritage hotels, or leased them to renowned hotel chains which carefully restored them to their former glory.

From the eastern state of Odisha to Rajasthan in the north, here are eight regal retreats where travelers can live like kings and queens.

1. Jehan Numa Palace — Bhopal

Visitors can step back in time at Jehan Numa Palace in Bhopal, which has a neoclassical style and a 19th-century exterior.

Jehan Numa Palace.

Source: Jehan Numa Palace

This pristine white building was built by General Obaidullah Khan, son of the last ruling Begum of Bhopal, and transformed into a 100-room hotel by his grandsons in the 1980s. The hotel contains salvaged original artifacts and Raj-era photos as well as modern luxuries, such as a palm-lined pool and Chakra spa services.

Its palatial charm lingers among the racehorses that gallop around the track encircling the hotel. Travelers can dine on Italian and Mediterranean cuisine here, but Indophiles opt for the hotel’s legendary Bhopali fare prepared from secret palace recipes in a restaurant named Under the Mango Tree. 

2. Haveli Dharampura — Delhi

Once a nobleman’s home, the 19th-century Haveli Dharampura was meticulously restored over six years under the leadership of the prominent political figure Vijay Goel.

Haveli Dharampura.

Source: Heritage Dharampura

It’s now a 14-room boutique hotel, which received an honorable mention in 2017’s UNESCO Asia-Pacific Awards for Cultural Heritage Conservation. The atmospheric Mughal-era hotel has red sandstone-arched colonnades, a marble courtyard, Arabesque tile-work and intricate stone and wood details that echo the opulence of yesteryears. 

The in-house Lakhori restaurant prepares historic Mughal recipes, while the breezy rooftop provides a delightful setting for drink-in-hand lounging while listening to the muezzin’s call from the nearby Jama Masjid — a soul-stirring reminder that you are in the heart of Old Delhi.

The hotel has guided heritage walks, kite-flying and high tea on the roof terrace, and kathak performances on Saturday and Sunday, where guests can enjoy an evening of Indian classical dance.

3. Taj Lake Palace — Udaipur

Accessible by boat, this stark white edifice in the heart of Lake Pichola (as seen in the 1983 James Bond flick “Octopussy”) was originally a summer pleasure palace for Mewar royalty in the 1740s.

It was transformed into a heritage hotel in the 1960s and is now impeccably managed by the Taj Group.

Taj Lake Palace

Source: Taj Lake Palace

Straight out of a fairy tale, the Taj Lake Palace boasts domed pavilions, ornamental turrets, crystal chandeliers, and 83 antique-filled rooms and suites, some which overlook a gleaming courtyard that hosts nightly folk dances.

It has four dining options serving globe-trotting menus, a spa boat and butler service.

4. Taj Falaknuma Palace — Hyderabad

Perched nearly 2,000 feet above sea level, this hilltop hotel has 60 rooms and suites, which increase in lavishness as you move up its room classes.

Taj Falaknuma Palace.

Source: Taj Falaknuma Palace

By the time you reach the Nizam Suite — graced with fine tapestry, a private pool and personal butler — it’s easy to envision the lifestyle of the Nizam of Hyderabad, who lived in the palace in the 19th century.

The rooms aren’t the only lure. The 130-year-old edifice is known for its state banquets of yore-style food, grand gardens, billiard room with monogrammed cues and ivory balls, and a library modeled on the one at Windsor Castle. Staterooms are decked out with Venetian chandeliers, royal portraits and heirlooms from the Nizams’ era.

5. Taj Usha Kiran Palace — Gwalior

This palace dating to the 1800s was, in its past life, a guesthouse and later royal residence of the ruling family of the state of Gwalior.

Taj Usha Kiran Palace.

Source: Taj Usha Kiran Palace

Today, it’s a lavish Taj hotel that balances old-world vibes with contemporary style. Its interiors contain ancient stone carvings, filigree work and rich tapestries. For a regal experience, travelers can take a heritage tour through the sprawling estate and stay in one of the Royal Suites, which are kitted out with four-poster beds, Venetian mirrors and mother-of-pearl mosaics.

The hotel also offers plenty of facilities to help guests unwind, including a spa, outdoor pool, and an Art Deco-style bar.

6. Rambagh Palace — Jaipur

Set in 47 acres of gardens that are home to peacocks, this former hunting lodge and royal abode of the Maharaja of Jaipur, dates back to 1835. It is now a heritage hotel managed by the Taj Group.

Rambagh Palace.

Source: Rambagh Palace

Exquisite antique furnishings, silk drapes, domed wooden ceilings and four-poster beds give the 78 rooms and suites a regal feel.

Many other features make Rambagh Palace an unforgettable retreat: heritage walks around the premises conducted by the palace butler, golf putting green, original palace dining room with chandeliers and gilded mirror, a Polo bar festooned with trophies and memorabilia of the Jaipur polo team, and a spa with Indian healing services.

The palace has hosted the likes of King Charles, Louis Mountbatten and Jacqueline Kennedy.

7. The Belgadia Palace — Mayurbhanj

Nestled in the charming town of Baripada, The Belgadia Palace has been with the descendants of the same royal family since it was built in 1804, giving it an authenticity that is hard to replicate.

The Belgadia Palace.

Source: The Belgadia Palace

A portion of this historic palace has been converted into an 11-room hotel by Mrinalika and Akshita Bhanj Deo, royal descendants of the family. It boasts lofty ceilings, marble corridors and artifacts.

There’s also a lavish dining hall that serves Odisha-style meals, and elegant verandas on which to drink tea. The palace arranges activities such as traditional Chhau dance performances on the pristine lawns, handicraft village tours and other excursions. 

8. Chittoor Kottaram — Kochi

The height of exclusivity, the Chittoor Kottaram — which once belonged to the king of Cochin — hosts only one group of no more than six people at any one time.

Chittoor Kottaram.

Source: Chittoor Kottaram

Nestled amid coconut groves by the edge of the lagoon backwaters of Kerala, the three-room abode boasts beautiful Athangudi floor tiles and wooden ceilings.

Precious artworks by Lady Hamlyn of The Helen Hamlyn Trust, the restorer of this 300-year-old palace, lend the property something of a museum feel. A personal chef prepares traditional Keralan dishes that can be eaten at a waterside gazebo or in the lush garden.

Ayurvedic massages and private cultural shows can be arranged, as can a private sunset cruise on the serene waterways.

Source link

#stay #India #palaces #hotels

Here’s everything coming to Amazon’s Prime Video in September 2023

Amazon’s Prime Video has high hopes for its September lineup, which includes the return of “The Wheel of Time” and a spinoff of “The Boys.”

After a two-year layoff, Season 2 of the sprawling fantasy epic “The Wheel of Time” (Sept. 1) picks up with Moraine (Rosamund Pike) and Rand (Josha Stradowski) now scattered and forced to regroup as the Dark One turns out to be far from defeated. Season 1 was one of Prime’s most-watched series ever, and Season 2 will reportedly be darker and more action-packed, spanning the second and third books of Robert Jordan’s series.

The end of the month will bring the premiere of “Gen V” (Sept. 27), set in “The Boys” universe and following a group of students with extraordinary abilities at a prestigious — and extremely competitive — college for superheroes-to-be. It looks every bit as depraved and violent as the massively popular “The Boys,” for better or worse.

Also see: What’s coming in September to Netflix | Hulu

Amazon’s
AMZN,
+1.08%

streaming service also has “Kelce” (Sept. 12), a feature documentary about Philadelphia Eagles All-Pro center Jason Kelce’s 2022-’23 season, which will serve as a prelude to the return of NFL Thursday Night Football (Sept. 14), which kicks off with the Eagles against the Minnesota Vikings.

Here’s the complete list of what else is coming to Prime Video in September (release dates are subject to change):

What’s coming to Prime Video in September 2023

Sept. 1

Spin City S1-6 (1997)
The Wheel of Time Season 2
10 Things I Hate About You (1999)
2001: A Space Odyssey (1970)
21 Grams (2004)
23:59 (2011)
A Bullet for Pretty Boy (1970)
A Force of One (1979)
A Man Called Sarge (1990)
A Matter of Time (1976)
A Rage to Live (1965)
Abbott and Costello Meet Frankenstein (1948)
After Midnight (1989)
Alakazam the Great (1961)
Alex Cross (2012)
All About My Mother (2000)
Amazons of Rome (1963)
American Ninja (1985)
American Ninja 2: The Confrontation (1987)
American Ninja 3: Blood Hunt (1989)
American Ninja 4: The Annihilation (1991)
Anaconda (1997)
And Your Name Is Jonah (1979)
Angel Eyes (2001)
Apartment 143 (2012)
April Morning (1988)
Arabian Nights (2000)
Are You in the House Alone? (2022)
Army of Darkness (1993)
As Above, So Below (2014)
Back to School (1986)
Bad Education (2020)
Bad News Bears (2005)
Bailout at 43,000 (1957)
Balls Out (2015)
Beer (1985)
Behind the Mask (1999)
Belly of an Architect (1990)
Berlin Tunnel 21 (1981)
Bewitched (2005)
Billion Dollar Brain (1967)
Blow (2001)
Body Slam (1987)
Born to Race (2011)
Bowling for Columbine (2002)
Boy of the Streets (1937)
Breakdown (1997)
Brides of Dracula (1960)
Brigadoon (1954)
Broken Embraces (2010)
Buster (1988)
Calendar Girl Murders (1984)
California Dreaming (1979)
Campus Rhythm (1943)
Captain Kidd and the Slave Girl (1954)
Carpool (1996)
Carry on Columbus (1992)
Carve Her Name With Pride (1958)
Chasing Papi (2003)
Cheerleaders Beach Party (1978)
Children of Men (2007)
Child’s Play (2019)
China Doll (1958)
Chrome and Hot Leather (1971)
Cocaine: One Man’s Seduction (1983)
Committed (2000)
Conan the Barbarian (2011)
Condor (1986)
Confidence Girl (1952)
Courage Mountain (1990)
Crossplot (1969)
Curse of the Swamp Creature (1966)
Curse of the Undead (1959)
Cycle Savages (1969)
Dagmar’s Hot Pants, Inc. (1971)
Damned River (1989)
Dancers (1987)
Danger in Paradise (1977)
Dangerous Love (1988)
Deep Blue Sea (1999)
Defiance (2009)
Deja Vu (2006)
Desert Sands (1955)
Desperado (1995)
Detective Kitty O’Day (1944)
Detective School Dropouts (1986)
Devil (2010)
Devil’s Eight (1969)
Diary of a Bachelor (1964)
Dogs (1977)
Don’t Worry, We’ll Think of a Title (1966)
Double Trouble (1992)
Down the Drain (1990)
Dr. Heckyl and Mr. Hype (1980)
Dracula (1931)
Drag Me to Hell (2009)
Driving Miss Daisy (1990)
Dust 2 Glory (2017)
Edge of Darkness (2010)
Eight Men Out (1988)
Eight on the Lam (1967)
Electra Glide in Blue (1973)
Elephant Tales (2006)
Europa Report (2013)
Evil Dead (2013)
Explosive Generation (1961)
Extraction (2015)
Face/Off (1997)
Fanboys (2009)
Fashion Model (1945)
Fatal Charm (1978)
Fearless Frank (1969)
Finders Keepers (2014)
Flight That Disappeared (1961)
Flight to Hong Kong (1956)
Fools Rush In (1997)
For the Love of Aaron (1994)
For the Love of It (1980)
For Those Who Think Young (1964)
Four Weddings and a Funeral (1994)
From Hollywood to Deadwood (1989)
Frontera (2014)
Fury on Wheels (1971)
Gambit (1967)
Ghost Story (1981)
Gigli (2003)
Grace Quigley (1985)
Grievous Bodily Harm (1988)
Hangfire (1991)
Haunted House (2023)
Hawks (1989)
Hell Drivers (1958)
Here Comes the Devil (2012)
Hollywood Harry (1986)
Honeymoon Limited (1935)
Hostile Witness (1969)
Hot Under the Collar (1991)
Hotel Rwanda (2005)
Hugo (2011)
I Am Durán (2019)
I Saw the Devil (2010)
I’m So Excited! (2013)
Inconceivable (2017)
Innocent Lies (1995)
Intimate Strangers (2006)
Invisible Invaders (1959)
It Rains in My Village (1968)
Jarhead (2005)
Jeff, Who Lives at Home (2011)
Joyride (2022)
Juan of the Dead (2012)
Kalifornia (1993)
Khyber Patrol (1954)
La Bamba (1987)
Labou (2009)
Lady in a Corner (1989)
Ladybird, Ladybird (1995)
Legally Blonde 2: Red, White and Blonde (2003)
Legend of Johnny Lingo (2003)
Little Dorrit (Part 1) (1988)
Little Dorrit (Part 2) (1988)
Little Sweetheart (1989)
Lost Battalion (1960)
Mama (2013)
Mandrill (2009)
Masters of the Universe (1987)
Matchless (1967)
Meeting at Midnight (1944)
Men’s Club (1986)
Mfkz (2018)
Midnight in the Switchgrass (2021)
Miss All American Beauty (1982)
Mission of the Shark (1991)
Mixed Company (1974)
Mystery Liner (1934)
National Lampoon’s Movie Madness (1983)
New York Minute (2004)
Nicholas Nickleby (2002)
Night Creatures (1962)
No (2012)
Observe and Report (2009)
Octavia (1984)
October Sky (1999)
Of Mice and Men (1992)
One Man’s Way (1964)
One Summer Love (1976)
Operation Atlantis (1965)
Overkill (1996)
Panga (1990)
Passport to Terror (1989)
Phaedra (1962)
Play Misty for Me (1971)
Portrait of a Stripper (1979)
Powaqqatsi (1988)
Predator: The Quietus (1988)
Private Investigations (1987)
Prophecy (1979)
Pulse (2006)
Quinceanera (1960)
Raiders of the Seven Seas (1953)
Red Dawn (1984)
Red Eye (2005)
Red Riding Hood (1988)
Red River (1948)
Reform School Girls (1969)
Riddick (2013)
Riot in Juvenile Prison (1959)
River of Death (1989)
Rocky (1976)
Rocky II (1979)
Rose Garden (1989)
Roxanne (1987)
Rumble Fish (1983)
Runaway Train (1985)
Running Scared (2006)
Safari 3000 (1982)
Season of Fear (1989)
Secret Window (2004)
Sense and Sensibility (1996)
Sergeant Deadhead (1965)
Seven Hours to Judgment (1988)
Sharks’ Treasure (1975)
She’s Out of My League (2010)
She’s the One (1996)
Sin Nombre (2009)
Sinister (2012)
Slamdance (1987)
Snitch (2013)
Son of Dracula (1943)
Space Probe Taurus (1965)
Spanglish (2004)
Spell (1977)
Stardust (2007)
Step Up (2006)
Sticky Fingers (1988)
Stigmata (1999)
Sugar (2009)
Summer Rental (1985)
Surrender (1987)
Sword of the Valiant (1984)
Tangerine (2015)
Tenth Man (1988)
The Adventures of Gerard (1978)
The Adventures of the American Rabbit (1986)
The Assisi Underground (1986)
The Bad News Bears (1976)
The Beast with a Million Eyes (1955)
The Birdcage (1996)
The Black Dahlia (2006)
The Black Tent (1957)
The Bourne Identity (2002)
The Bourne Legacy (2012)
The Bourne Supremacy (2004)
The Break-Up (2006)
The Cat Burglar (1961)
The Chronicles of Riddick (2004)
The Clown and the Kid (1961)
The Diary of a High School Bride (1959)
The Dictator (2012)
The Evictors (1979)
The Fake (1953)
The Family Stone (2005)
The Final Alliance (1990)
The Finest Hour (1991)
The Frog Prince (1988)
The Ghost in the Invisible Bikini (1966)
The Incredible 2-Headed Transplant (1971)
The Invisible Man (1933)
The Jewel of the Nile (1985)
The Late Great Planet Earth (1979)
The Legend of Zorro (2005)
The Little Vampire (2017)
The Living Ghost (1942)
The Locusts (1997)
The Machinist (2004)
The Manchu Eagle Murder Caper Mystery (1975)
The Manchurian Candidate (1962)
The Mask of Zorro (1998)
The Mighty Quinn (1989)
The Misfits (1961)
The Motorcycle Diaries (2004)
The Mouse on the Moon (1963)
The Mummy (1932)
The Naked Cage (1986)
The Night They Raided Minsky’s (1968)
The Possession (2012)
The Prince (2014)
The Program (1993)
The Ring (2002)
The Sacrament (2014)
The Savage Wild (1970)
The Secret in Their Eyes (2010)
The Sharkfighters (1956)
The Sisterhood of the Traveling Pants (2005)
The Spiderwick Chronicles (2008)
The Sum of All Fears (2002)
The Winds of Kitty Hawk (1978)
The Wolf Man (1941)
The Young Savages (1961)
Three Came To Kill (1960)
Three Kinds of Heat (1987)
Through Naked Eyes (1983)
Time Limit (1957)
To Catch a Thief (1955)
Tough Guys Don’t Dance (1987)
Track of Thunder (1967)
Transformations (1991)
Transporter 3 (2008)
Trollhunter (2011)
True Heart (1996)
Underground (1970)
Unholy Rollers (1972)
Unsettled Land (1989)
V/H/S (2012)
War, Italian Style (1967)
Warriors Five (1962)
We Still Kill the Old Way (1968)
When a Stranger Calls (2006)
Where the Buffalo Roam (1980)
Where the River Runs Black (1986)
Wild Bill (1995)
Wild Racers (1968)
Wild Things (1998)
Windows (1980)
Woman of Straw (1964)
Young Racers (1963)
Zack and Miri Make a Porno (2008)

Sept. 5
One Shot: Overtime Elite

Sept. 7
Single Moms Club (2014)

Sept. 8
Sitting in Bars with Cake

Sept. 12
Inside (2023)
Kelce

Sept. 14
Thursday Night Football

Sept. 15
A Million Miles Away

Wilderness

Written in the Stars

Sept. 19
A Thousand and One (2023)

Sept. 22
Cassandro (2023)

Guy Ritchie’s The Covenant (2023)

Sept. 26
The Fake Sheikh

Sept. 29
Gen V

Source link

#Heres #coming #Amazons #Prime #Video #September

‘Own what the Mother of All Bubbles crowd doesn’t.’ This market strategist expects stagflation and is investing for it now.

There’s always a bull market somewhere — if you can find it.

Keith McCullough encourages investors to join him in the hunt. You’ll need to be agnostic and open-minded, the CEO of investment service Hedgeye Risk Management says. If you’re wedded just to U.S. stocks, or the market’s latest darlings, you’re setting yourself up for disappointment — particularly in the hostile environment McCullough sees coming.

This coming challenge for U.S. stock investors, in a word, is stagflation, McCullough says. Stagflation — higher inflation plus slow- or no economic growth — is hardly a bullish outlook for stocks, but McCullough’s investment process looks for opportunties wherever they may be. Right now that’s led him to put money into health care, gold, Japan, India, Brazil and energy stocks, among others.

In this recent interview, which has been edited for length and clarity, McCullough takes the Federal Reserve and Chair Jerome Powell to the woodshed, offers a warning about the potential fallout from Powell’s upcoming speech at Jackson Hole, Wyo., and implores investors to discount happy talk and always watch what they do, not what they say.

MarketWatch: When we spoke in late May, you criticized the Federal Reserve for being obtuse and myopic in its response to inflation and, later, to the threat of recession. Has the Fed done anything since to give you more confidence?

McCullough: The Fed forecast of the probability of recession should be trusted as much as their “transitory” inflation forecast or a parlor game. People should not have confidence in the Fed’s forecast. The “no-landing” or “soft-landing” thesis is looking backwards. The Fed is grossly underestimating the future, doing what they always do, in looking at the recent past.

Their policy is wed to what they say. They claim they’re not going to cut interest rates until they get to their target. But any hint of the Fed arresting the tightening gives you more inflation. So there’s this perverse relationship where the Fed is the catalyst to bring back the inflation they’ve spent so much time fighting. 

Read: ‘The Fed is way late and they’ve already screwed it up.’ This stock strategist is banking on gold, silver and Treasurys to weather a recession.

MarketWatch: U.S. Inflation has come down quite signficantly over the past year. Doesn’t that show the Fed is well on the way to achieving its 2% target?

McCullough: A lot of people are peacocking and declaring victory over inflation when we’re about to have reflation that sticks. We have inflation heading back towards 3.5% and staying there.

Our inflation forecast is that it’s set to reaccelerate in the next two inflation reports, which will lead to another rate hike in September. The Fed’s view is that until they get to the 2% target they’re not done. A lot of people are really confident because inflation went from 9% to 3% that it’s getting closer to 2%, therefore the Fed is done. Given what Fed Chair Jerome Powell said, the next two inflation reports are critical in determining whether we hike rates in September. I think maybe even one in November. This is a major catalyst for the next leg down in the equity market.

The Fed is going to see inflation go higher, and they’ve already articulated to Wall Street that no matter what happens, that should constitute a rate hike. That’s a policy mistake. They’re going to continue to tighten into a slowdown. When the Fed tightens into a slowdown, things blow up.

MarketWatch: By “things blow up,” you mean the stock market.

McCullough: I don’t think the Fed cuts interest rates until the stock market crashes. The Fed is going to be tightening when the U.S. economy and corporate profits are at a low point, going into the fourth quarter. It’s not dissimilar from 1987 where all of a sudden a market that looked fine got annihilated in very short order. There are a lot of similarities to 1987 now; the market’s quick start in January, people in love with stocks. That’s a catalyst for the stock market to crash.

When the Fed has an inconvenient rule, particularly for the U.S. stock market, they just move the goal posts or change the rule. If they actually started to cut interest rates, inflation would go up faster. This is exactly what happened in the 1970s and what Powell explains is the risk of going dovish too soon – that he becomes [much-criticized former Fed chair] Arthur Burns. That’s why you had rolling recessions in the 1970s; the Fed would go dovish, devalue the U.S. dollar
DX00,
-0.21%
,
and the cost of living for Americans would reflate to levels that are prohibitive.

People can’t afford reflation at the gas pump, or in their health care. It’ll be fascinating to see how Powell pivots from fighting for the people to bailing out Wall Street from another stock market crash, which will therein create the next reflation.

‘The Federal Reserve has set the table for a major event in the U.S. stock market and the credit market.’

MarketWatch: Speaking of a Powell pivot, the Fed chair speaks at Jackson Hole this week. Last year he put markets on notice for rate hikes. What do you think he’ll say this time?

Powell’s going to see inflation accelerating. I think Jackson Hole is going to be a hawkish meeting. That might be the trigger for the stock market.

Take the bond market’s word for it.  The bond market is saying the Fed is going to remain tight and seriously consider another rate hike in September. The reasons why markets crash in October during recession is that the fourth quarter is when companies realize that there’s no soft landing and they need to guide down.

The Federal Reserve has set the table for a major event in the U.S. stock market and the credit market. We’re short high-yield and junk bonds through two ETFs: iShares iBoxx $ High Yield Corporate Bond
HYG
and SPDR Bloomberg High Yield Bond
JNK.
 On the equity side the best thing is to short the cyclicals; I would short the Russell 2000
RUT.

MarketWatch: What’s your advice to stock investors right now about how to reposition their portfolios?

McCullough: Own what the “Mother of All Bubbles” crowd doesn’t. The things we’re most bullish on include gold
GC00,
+0.21%
.
 The Fed is going to keep short term rates high and both the 10 year and 30 year go lower. Gold trades with real interest rates. I think gold can go a lot higher, towards 2,150. Our ETF for gold is SPDR Gold Shares
GLD.

Also, you can be long equities and not take on the heart-attack risk that is the U.S. stock market. I’m long Japanese equities — ETFs for this include iShares MSCI Japan
EWJ
and iShares MSCI Japan Small-Cap
SCJ.

We’re long India with iShares MSCI India
INDA
and iShares MSCI India Small-Cap
SMIN.
Both Japan and India are accelerating economically. Were also long Brazil iShares MSCI Brazil
EWZ,
which is weighted to energy. We are bullish on energy. 

MarketWatch: Clearly accelerating inflation and slowing economic growth is an unhealthy combination for both investors and consumers.

McCullough: What I’m looking for, with inflation reaccelerating, is stagflation.

Stagflation pays the rich and punishes the poor. You want to be the landlord. The prices of things people own are going to go up, and the prices of things you need to live are also going to go up. So for example, we are long energy, uranium and timber as stagflation plays. ETFs we’re using for that include Energy Select Sector SPDR
XLE,
Global X Uranium
URA,
and iShares Global Timber & Forestry
WOOD.

One positive thing that happens from stagflation is that because it’s so hard to find real consumption growth, there’s a premium on the growth you can find.

If there is something that actually accelerates, then those stocks will work, which puts a nice premium on stock picking. You can be long anything that is accelerating because so many things are decelerating. So avoid U.S. consumer, retailers, industrials and financials, which are all decelerating. Health care is our favorite sector, which we own through the ETFs Simplify Health Care
PINK
and SPDR S&P Health Care Equipment
XHE.

Instead, people are betting we’re going to go back to some crazy AI-led growth environment. Now everyone thinks everything is AI and rainbows and puppy dogs. I’m old enough to remember we were in a banking crisis in March. From an intermediate- to longer-term perspective, I don’t know why you wouldn’t want to protect yourself until this inflation cycle plays out.

Also read: Jackson Hole: Fed’s Powell could join rather than fight bond vigilantes as yields surge

More: Will August’s stock-market stumble turn into a rout? Here’s what to watch, says Fundstrat’s Tom Lee.

Source link

#Mother #Bubbles #crowd #doesnt #market #strategist #expects #stagflation #investing

Couples leverage ‘something borrowed’ to cut wedding costs

After facing the reality of how expensive fresh flowers could be when planning her own wedding, Della Larca founded Florèal Blooms, her luxury silk flower rental business, three and half years ago from her basement in Butler, New Jersey.

Larca’s business swelled last year, and she recently moved to a larger workspace to accommodate to the growing demand for her product brought by inflation and a backlog of events rippled by the pandemic.

The price of nuptials has continued to grow, with the cost of the average wedding reaching $30,000 last year thanks to steep inflation, according to an annual study by The Knot, a wedding website.

More from Life Changes:

Here’s a look at other stories offering a financial angle on important lifetime milestones.

Sixty-one percent of couples set to marry this year said the economy has already impacted their wedding plans, and the soon-to-be-wed have become savvier as they confront higher costs. Some, for example, are leaning into the wedding proverb of “something borrowed,” and seriously considering renting over buying —especially when it comes to flowers, fine jewelry and even their bridal dresses.

To make sure they’re really snagging a deal, however, couples must take into consideration the quality of the product they’re renting and whether rental requires added labor costs.

“It’s about making sure whatever you’re renting, think about the execution, think about who’s going to have to bring it out, set it up … is that cost worth it to you?” said Jason Rhee, director of celebrations and owner of Rheefined Company, a wedding and special events planner in Los Angeles.

Couples are renting flowers, jewelry and more

Courtesy of Something Borrowed Blooms

Laken Swan and Lauren Bercier founded Something Borrowed Blooms in 2015 after dealing with high costs for their own weddings. Bercier, in particular, suffered buyer’s remorse on her wedding day — after putting down the full deposit for fresh flowers, the blooms that arrived on her wedding day weren’t exactly what she’d had in mind, said Swan.

Unfortunately, the disappointment Bercier felt isn’t uncommon. The fresh flower industry can experience supply and demand issues, Swan said, and prices often reflect the fluctuation of what’s in stock and an event’s proximity to holidays like Valentine’s Day.

Prices for artificial flowers, on the other hand, are not as volatile — and brides are starting to notice.

Florèal Blooms saw an increase in demand in January 2021, when Larca was scheduling 20 to 30 consultations a week. For 2023, the company is fully booked until the end of the year. For its part, Something Borrowed Blooms is currently shipping out enough silk flowers each month for around 1,200 weddings, pacing up to 2,000 weddings per month this fall.

It makes economic sense: While the average cost of fresh flowers can come to at least $2,500 per event, you can save as much as 70% by renting silk flowers for a fraction of the price, Swan said.

How brides can dress best for less

Fine jewels are also within the average bride’s reach more than ever before. Brides who lack the disposable income to purchase fine jewelry but would value the experience of wearing one-of-a-kind pieces on their special day may want to consider renting expensive jewelry.

Rental prices for fine diamond jewelry at New York-based jeweler Verstolo range from $275 to $695, for example, and the cost includes insurance.

The same goes for wedding dresses.

While the average price for a typical bridal gown is $1,900 before alterations — an additional but often necessary service that could cost $500 to $700 extra — brides to be could rent a designer dress for the starting price of $2,000, with tailoring costs included, said Miriam Williams, co-founder of Atlanta bridal rental company Laine London.

“This next generation of brides is thinking about experiences over possessions,” said Williams. “It’s only natural that they’re rethinking what their wedding day might look like.”

While these may sound like great deals up front, couples should be sure to vet vendors’ quality controls — how they keep the repeatedly used items in top condition — and ask whether their services require additional labor costs. Otherwise, they could end up spending far more than anticipated.

What to consider before renting

Make sure you think about the execution of whatever it is you are renting, said Rhee at Rheefined Company.

“I think it’s amazing that there [are] opportunities for you to be able to rent things that you may not necessarily be able to afford, but then that’s where you just have to think about doing a little investigation,” he said. “Think about it if there is a person attached to that, or is there a service attached to what you need.”

For instance, Florèal Blooms provides a full team that delivers, sets up and packs up the flowers on the wedding day for a flat rate that’s included in the total cost.

“Quality would be the primary risk,” said Swan at Something Borrowed Blooms. Since you are renting something that has been used before, research past customer testimonies and try to work with companies that seem to pride themselves in quality control, added Swan.

If renting out artificial flowers, consider asking the rental company about quality control practices and whether their total costs include insurance for “wear and tear.”

“If there’s maybe a [flower] that was stained [by] red wine or something else, that particular floral is removed from the arrangement and we add a new floral in its place; sometimes, we’re just freshening up greenery,” Swan noted.

The same goes for bridal gowns and maintenance. Laine London expects “normal wear and tear,” and makes sure to hand-wash and drip-dry each gown after it is returned, as well as to refrain from using harsh chemicals, in order to maintain fabric integrity.

“We’re able to really bring the dress back to perfect condition after every use,” said Williams.

Something borrowed, something … bought?

On the other hand, in some cases it may make better sense to buy rather than borrow.

“You want to buy something that you’re going to wear, and that’s not going to sit in your safe and you’ll pull it out one or two times a year,” said Lauren Grunstein, vice president of sales, public relations and marketing for Verstolo.

Deciding whether to buy or rent is a very personal decision, added Williams at Laine London. She noted that her clients have other reasons for renting, not solely for budget reasons. “They don’t want to deal with it hanging in their closet,” she said, referring to wedding gowns.

However, if you plan to get multiple uses out of a bridal item in the future and you have a budget that supports it, it makes sense to go ahead and invest in that purchase, said Swan.

“But if you’re looking at items that are quickly used or disposed of, or don’t have additional uses in the future, that’s definitely an area that you want to consider renting.”

Correction: Florèal Blooms saw an increase in demand in January 2021. An earlier version misstated the year. Rental prices for fine diamond jewelry at Verstolo range from $275 to $695, for example and the cost includes insurance. An earlier version misstated the range.

Source link

#Couples #leverage #borrowed #cut #wedding #costs

Lukas Gage’s viral video audition haunts the ‘hot labor summer’ actors’ strike sweeping Hollywood

In November 2020, the actor Lukas Gage was auditioning for a role via video link when he heard the producer make some disparaging remarks about the size of his apartment. 

“These poor people who live in these tiny apartments,” the producer said. “I’m looking at his background and he’s got his TV and …”

Gage, who at that time had had a four-episode arc on HBO’s “Euphoria” among other small roles, interrupted the producer — British director Tristram Shapeero, who later apologized for his remarks — to let him know that he was not muted and that Gage could, in fact, hear him. 

“Yeah, I know it’s a sh—y apartment,” Gage said. “That’s why — give me this job so I can get a better one.”

Shapeero replied, “Oh my god, I am so, so sorry … I am absolutely mortified.”

Putting together an audition tape can often take up an entire day and involve setting up a studio space for sound and lighting.

“Listen, I’m living in a four-by-four box, just give me the job and we’ll be fine,” Gage responded. 

Gage kept his sense of humor, but he also decided to post the video on his Twitter account to show how actors are sometimes treated from the moment they audition for a role — and perhaps to remind people to make sure you’re on mute if you’re trash-talking someone on a Zoom
ZM,
+1.76%

call.

It’s three years later, and members of the Writers Guild and Screen Actors Guild are on strike, looking for more pay, better working conditions and stricter rules around things like the use of actors’ images in the age of artificial intelligence and the lack of residuals from streaming networks. 

The perils of the online audition

Meanwhile, Gage’s 2020 online audition is resonating again. 

For a working actor — who, like the majority of SAG-AFTRA members who may not be an A-list star — simply getting in front of a producer as Gage did can be a long and difficult process. And since the start of the pandemic, the nature of auditions has changed dramatically. This has come to symbolize the uphill struggle actors face from the moment they hear about a role. 

In May, Ezra Knight, New York local president of SAG-AFTRA, asked members to authorize strike action, saying contracts needed to be renegotiated to reflect dramatic changes in the industry. Knight cited the need to address artificial intelligence, pay, benefits, reduced residuals in streaming and “unregulated and burdensome self-taped auditions.”

In the days of live auditions, actors would read for a role with a casting director. But several actors told MarketWatch that it’s become harder to make a living in recent years, and that it all starts with the audition tape, which has now become standard in the industry. 

By the time Gage got in front of producers, for instance, he had likely either already delivered a tape and was put on a shortlist to read in front of a producer, or the casting director was already familiar with his work and wanted him to read for the part. 

But an audition tape can often take up an entire day to put together, actors say. When the opportunity to audition arrives, actors typically have to drop everything they’re doing — whether they’re working a side hustle or taking time off or even enjoying a vacation.

Cadden Jones: “All the financial responsibilities have fallen on us. The onus is on us to create our auditions.”


Cadden Jones

They need to arrange good lighting and a clean backdrop — Gage’s TV set became a distraction for the producer during his audition — set up the camera, and scramble to find a “reader” — someone to read the other roles in the scene, preferably another actor. 

Then the actor has to edit the audition to highlight their strongest take and upload it. There are currently no regulations on the amount of pages a casting director can send to a candidate, and actors say there’s often not enough time to properly prepare.

“Unfortunately, it’s been going in this direction for some time now,” said Cadden Jones, an actor based in New York who has credits on shows including Showtime’s
PARAA,
-1.47%

“Billions” and Amazon Prime’s
AMZN,
+0.03%

“The Marvelous Mrs. Maisel.” 

“This was the first year I did not qualify for health insurance in decades,” she told MarketWatch. “I just started teaching.”

To put that into perspective: Members of SAG-AFTRA must earn $26,470 in a 12-month base period to qualify for health insurance. The median annual wage in the U.S. hovers at around $57,000, based on the weekly median as calculated by the Bureau of Labor Statistics.

Jones and her partner, Michael Schantz, an actor who works mostly in theater, are starting a communications consulting company to increase their income.

“Most if not all of my actor friends have had to supplement their income since the pandemic,” she said. “We’re in trouble as a community of actors who used to make a good living doing what we do. It’s not like any of us lost our talent overnight. I, for one, am very glad that we’re striking.”

But Jones said that, with the auditioning process taking place mostly online since the onset of the pandemic, casting agents — who work for producers — are able to see more people for a given role, making the competition for roles even more intense.

‘This was the first year I did not qualify for health insurance in decades.’


— Cadden Jones, an actor based in New York

“We don’t go into casting offices anymore,” Jones said. “All the financial responsibilities have fallen on us. The onus is on us to create our auditions. It’s harder to know what they want, and you don’t have the luxury to work with a casting director in a physical space to get adjustments, which was personally my favorite part of the process — that collaboration.”

She added: “Because the audition rate accelerated, the booking rate went down dramatically for everybody. But don’t get me wrong. Once the strike is officially over, I want all the auditions I can get.”

SAG-AFTRA has proposed rules and expectations to address some of the burden and costs actors bear when it comes to casting, including providing a minimum amount of time for actors to send in self-taped auditions; disclosing whether an offer has been made for the role or it has already been cast; and limiting the number of pages for a “first call” or first round of auditions.

Before the negotiations broke down with the actors’ union, the Alliance of Motion Picture and Television Producers, which represents over 350 television and production companies, said it offered SAG-AFTRA $1 billion in wage increases, pension and health contributions and residual increases as part of a range of proposals related to pay and working conditions.

Those proposals included limitations on requests for audition tapes, including page, time and technology requirements, as well as options for virtual or in-person auditions, AMPTP said. The producers’ group characterized their offer as “the most lucrative deal we have ever negotiated.”

Michael Schantz: “How does the broader culture value storytelling and the people who make stories?”


Michael Schantz

Jones said she doesn’t blame the casting directors. It’s up to the producers, she said, to be more mindful of how the changes in the industry since the advent of streaming, the decline in wages adjusted for inflation, and poor residuals from streaming services have taken a toll on working actors.

Bruce Faulk, who has been a member of SAG-AFTRA since 1992, said that for work on a one-off character part or a recurring role on a network show, he might receive a check for hundreds or even thousands of dollars in residuals. And — crucially — he knows how many times a particular show has aired. 

Residuals are fees paid to actors each time a TV show or film is broadcast on cable or network television. They are based on the size of the role and the budget of the production, among other things. For shows that air on streaming services, however, residuals are far harder to track. 

What’s more, residuals decline over time and can often amount to just a few cents per broadcast. 

Actor Kimiko Glenn, who appeared on episodes of Netflix’s
NFLX,
-2.27%

“Orange Is the New Black,” recently shared a video on TikTok showing $27 in residuals from her work on that show.

Faulk sympathizes. “A lot of checks from HBO
WBD,
-1.37%

for ‘The Sopranos’ or ‘Gossip Girl’ I get are for $33,” he said. “I never know how many people watched me on ‘Gossip Girl’ in the three episodes I’m in. All we know is whatever the streaming services decided to announce as their subscriber numbers.”

Like Jones, Faulk said this will be the first year he won’t qualify for SAG-AFTRA health insurance, which covers him, his wife and his son. This is despite him having worked enough over the past 10 years to qualify for a pension when he turns 67. “Mine is up to $1,000 a month now,” he said, noting that the pension will keep increasing if he keeps getting acting work.

Schantz, who had a three-episode arc on NBC’s
CMCSA,
-0.74%

“The Blacklist” in addition to his other TV, film and theater credits, finds the recent shifts in the landscape for actors somewhat difficult to reconcile with the way people turned to TV and film during the loneliest days of the pandemic.

“One of the most concerning things I can think of right now is the conversation around value. How does the broader culture value storytelling and the people who make stories?” he said. “The arts always tend to fall to the wayside in many ways, but it was striking during the pandemic that so much of our attention went to watching movies and television. There’s obviously something inside of us that feels like we’re part of the human story.”

Actors battle other technology

While big companies like Disney
DIS,
+1.13%
,
HBO, Apple
AAPL,
-0.62%
,
Amazon and Netflix make millions of dollars from films and TV series that are watched again and again, Schantz said that actors are unable to make a living. “No one wants to go on strike,” he said. 

Those five companies have not responded to requests for comment from MarketWatch on these issues.

Since his audition tape went viral, Gage has booked regular work, and he found even greater fame when he went on to star in Season 1 of HBO’s “White Lotus.” In 2023, he will star in nine episodes of “You,” now streaming on Netflix, and in the latest season of FX’s “Fargo.” 

Earlier this year, he told the New York Times: “I had never judged my apartment until that day.” He added, “I remember having this weird feeling in the pit of my stomach afterward, like, why am I judging where I’m at in my 20s, at the beginning of my career?”

‘There’s enough Bruce out there where you could take my likeness and my voice and put me in the scene.’


— Bruce Falk, a member of SAG-AFTRA since 1992

But advances in technology are not just hurting actors in the audition process. A debate is raging over the use of AI and whether actors should be expected to sign away the rights to their image in perpetuity, especially when they might only be getting paid for half a day’s work.

“AI is the next big thing,” Falk said. The industry is concerned about companies taking actors’ likenesses and using AI to generate crowd scenes. 

“Even an actor at my level — that guy on that show — there’s enough Bruce out there where you could take my likeness and my voice and put me in the scene: the lieutenant who gives you the overview of what happened to the dead body,” he said. “At this point, I could be technically replaced. We have to get down on paper, in very clear terms, that that can’t be done.”

The Alliance of Motion Picture and Television Producers also said it agrees with SAG-AFTRA and had proposed — before the actors’ strike — “that use of a performer’s likeness to generate a new performance requires consent and compensation.” The AMPTP said that would mean no digital version of a performer should be created without the performer’s written consent and a description of the intended use in the film, and that later digital replicas without that performer’s consent would be prohibited.  

“Companies that are publicly traded obviously have a fiduciary responsibility to their shareholders, and whatever they can use, they will use it — and they are using AI,” Schantz said. “Yes, there are some immediate concerns. Whether or not the technology is advanced enough to fully replace actors is an open question, but some people think it’s an inevitability now.

“To let companies have free rein with these technologies is obviously creating a problem,” he added. “I can’t go show up, do a day’s work, have my performance be captured, and have that content create revenue for a company unless I’m being property compensated for it.”

Schantz said he believes there’s still time to address these technological issues before they become a widespread problem that makes all auditions — however cumbersome — obsolete. 

“We haven’t crossed this bridge as a society, but God only knows how far along they are in their plans,” he said. “All I know is it has to be a choice for the actors. There has to be a contract, and we have to be protected. Otherwise, actors will no longer be able to make a living doing this work.”



Source link

#Lukas #Gages #viral #video #audition #haunts #hot #labor #summer #actors #strike #sweeping #Hollywood

‘I worry about outliving my money’: I’m a 65-year-old widow in good health. Should I wait until 70 to collect my pension?

I am a 65-year-old widow in good health, and just started collecting my late husband’s Social Security benefit of $4,000 per month. When I turn 70, I will switch to my benefit since it appears it will be around $100 higher every month at that time. My current expenses are running high at about $10,000 per month due to some house maintenance projects I am doing. My son and his family will inherit everything when I’m gone.

I estimate my monthly expenses will drop to $5,000-$6,000 within the next year. I supplement my monthly income by drawing off interest, dividends and some profit-taking from my traditional IRA account which is worth about $2.5 million. I also have a Roth IRA of about $60,000 and bank CDs of $200,000. I also have another traditional IRA account worth $350,000, which I have designated as my long-term healthcare account in case I have to go into a nursing home at some point. 

‘I’m not sure if it makes sense to wait two to five years to collect my pensions if I am going to be drawing my RMD just a few years later.’

I have two pensions that I am debating about when I should start collecting. If I collect now, I will receive $1,400 per month. If I wait until I am 67 it will be $1,620 and at 70 the pension will pay $2,100 per month. However, when I turn 73 and start my minimum required distributions from my IRA, the annual RMD along with my Social Security should be more than enough for me to live on. 

I’m not sure if it makes sense to wait two to five years to collect my pensions if I am going to be drawing my RMD just a few years later. If I collect my pensions now, then it would reduce the amount of money I need to siphon off of my investments and could leave them relatively untouched for a few more years.

‘Money was always tight for us growing up and a struggle for my parents as they got older and needed healthcare assistance.’

So the question is, should I collect my pensions now and reduce the amount of money I am currently drawing off of my IRA? Or wait a few years and get the higher monthly payout? Everything I read encourages people to wait as long as they can to collect their retirements. My calculations show that if I collect now, my break-even point is about age 82. If I live longer than that, then waiting to collect would pay me more over the long term. Both my parents lived into their early 90s so longevity is a potential concern. 

I realize that I’m in a good financial situation, which is the result of my husband and I working extremely hard all of our lives and consistently saving and investing during good times as well as during recessions, job losses, and raising a family. But money was always tight for us growing up and a struggle for my parents as they got older and needed healthcare assistance, so I don’t think I will ever shake that off. I worry about outliving my money. I just want to make the right decision.

Thank you for your help.

To Withdraw or Not Withdraw

Dear Withdraw or Not Withdraw,

Let’s start with the good news. Whatever you do — start withdrawals now or wait — you are in a pretty strong financial position. If you can afford to wait — and you can — and you expect to live into your 90s, do that. That extra $700 a month will give you comfort as you age. You have $2.5 million in your IRA, and you will pay tax on those withdrawals regardless, but you can afford to use that as a buffer before your higher pension payments kick in. 

A financial adviser will help you crunch your numbers, but $4,000 a month in Social Security is a good start. Cutting your $10,000 monthly expenses to $6,000 is smart, and an adviser can help you see where you could make further cuts in your expenses, especially as you age. For some perspective: This survey found that working Americans ages 45 and older on average believe it will take $1.1 million to retire comfortably, yet only 21% say they’ll reach $1 million. 

Another reason to withdraw from your IRA now? Gains from an IRA, as you know, are taxable. Gains from a Roth IRA are not taxable if the account has been up and running for five years and you are over 59½. One of the big advantages to a Roth is the flexibility it affords. If you have a medical emergency, you could use your Roth IRA as a backup. (CDS are not typically useful for this as cashing out early results in a penalty, which could negate your interest earned over the period of the CD.)

‘Whatever you decide will be the best decision for you at this time.’

Dan Herron, a partner at Better Business Financial Services in San Luis Obispo, Calif., agrees you should wait. “Since longevity appears to be on your side thanks to good genes from your family, it is probably beneficial to postpone taking benefits as long as you can to maximize your pensions,” he says. “The reason being is that given the uncertainty surrounding Social Security, your pension may be your best hedge against any potential Social Security cuts down the road.”

He also sees the tax benefits in siphoning funds from what is already a very healthy IRA. “While you draw from your IRA now, you are reducing the balance of the IRA, which then (potentially) reduces the required minimum distribution amounts,” he says. “This could potentially be beneficial from a tax perspective.” And he suggests staggering your pension benefits, making withdrawals from one in two years, while leaving the other until you hit 70.

Whatever you decide will be the best decision for you at this time. No future is guaranteed, but your No. 1 priority right is peace of mind to secure a long and healthy retirement.


MarketWatch illustration

Readers write to me with all sorts of dilemmas. 

You can email The Moneyist with any financial and ethical questions related to coronavirus at [email protected], and follow Quentin Fottrell on Twitter.

By emailing your questions, you agree to have them published anonymously on MarketWatch. By submitting your story to Dow Jones & Co., the publisher of MarketWatch, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Check out the Moneyist private Facebook group, where we look for answers to life’s thorniest money issues. Readers write to me with all sorts of dilemmas. Post your questions, tell me what you want to know more about, or weigh in on the latest Moneyist columns.

The Moneyist regrets he cannot reply to questions individually.

More from Quentin Fottrell: 

‘How to travel for free’: I spent $500 hosting my friend for a week. Should she have paid for food and utilities?

‘I’m 63 and desperately hate my work’: Should I pay off my mortgage, claim Social Security and quit my job?

‘He’s content living paycheck to paycheck’: My husband won’t work or get a driver’s license. Now things have gotten even worse.



Source link

#worry #outliving #money #65yearold #widow #good #health #wait #collect #pension