Good morning. The financial system is full of gaps that work against you — in your retirement healthcare, your insurance, your purchasing power. Today's three stories show exactly where those gaps are opening up right now. And how to stay ahead.
On The Money Today:
Apple can't absorb the chip cost surge anymore — and your next phone, laptop and retirement savings are all in the crosshairs
Medicare has three coverage gaps most retirees don't find out about until they get the bill
She had her life insurance on autopay for 20 years and still lost her $100,000 policy — here's the detail that should make you check yours today
Let's get into it.
Most people assume Medicare has them covered at 65. It doesn't — and the costs it skips aren't minor line items. Together, they can quietly drain six figures a year from a retirement you spent decades building. Here's what to do about it before you hit 65.
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Dolly Janowiak paid her life insurance premiums automatically for more than 20 years without missing a payment. But when her insurer raised her monthly premium by $56, the notice got lost in the mail. Her payment never updated, leaving her just $112 short — enough for Transamerica to cancel her $100,000 policy. At 82, she was effectively uninsurable. It took a TV news crew to get her coverage reinstated. The troubling part? How easily it could happen to you.
Apple's CEO has spent 40 years navigating supply chain shocks — he says he's never seen anything like this. Memory chip prices have quadrupled, and even Apple can't absorb the cost anymore. Price hikes are coming on iPhones, laptops and more. Your cost of living is going up whether you're ready or not.
MONEY IQ
Since 2020, which everyday expense has seen the biggest price increase for American consumers?
ALSO MAKING THE ROUNDS TODAY
BANKING: Suze Orman says nearly half of women are leaving hundreds, sometimes thousands, on the table each year by staying loyal to a low-interest savings account; the fix takes minutes
INVESTING: China just added the two American rare earth companies Trump is counting on to its export control list; here's what it could mean for your portfolio
INVESTING: Bill Gates' foundation just sold every Microsoft share it owned, but Bill Ackman is loading up on the stock; here's the crucial detail he says the market is missing
AUTO: A Florida mom traded in her car, paid cash and drove off the lot, and two months later she still doesn't have the title; here's what every used car buyer needs to check first
MONEY IQ ANSWER: HOW’D YOU DO?
The answer is D) according to Pew Research Center analysis of BLS data, car insurance has jumped 47.3% since January 2020, outpacing groceries, gas and housing. If you haven't shopped your rate recently, you're likely overpaying.
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See you soon with another quick roundup of the financial news that matters.
