The Motley Fool: What happened to Spirit Airlines?

Q. I see that Spirit Airlines suddenly stopped operating. Why couldn’t it succeed? And what happens to its shareholders? — V.T., Atlanta

A. The airline industry has long been a difficult one. It can be rocked by bad weather, fare wars, volatile fuel prices, economic downturns, pandemics and terrorism, among other factors. Even in good times, airlines face logistical challenges — planning and executing routes and managing a far-flung workforce. Plus, every empty seat costs them money.

All airlines have struggled to attain or maintain profitability. Like many before it, Spirit Airlines filed for Chapter 11 bankruptcy protection in August 2025 (for the second time in less than a year). Chapter 11 gives companies time to turn their fortunes around, but the skyrocketing cost of jet fuel made that impossible for Spirit.

As Spirit moves to liquidate, its shareholders will likely end up with nothing, as often happens when companies file for bankruptcy.

Q. Veeva Systems was recently added to the S&P 500 index, and its stock price jumped by almost 10% after the news. Why would that happen? — E.R., Washington, Indiana

A. When a stock is added to the S&P 500 (in this case to replace a company that’s exiting the index because it’s being acquired), every S&P 500 index fund that owns shares of all 500 companies in the index buys shares of it. That sudden demand for Veeva shares is what drove up the price. The jump doesn’t reflect Veeva suddenly recording 10% more business or making itself 10% more valuable in some other way.

Inclusion in the S&P 500 index is also a vote of confidence in the company, signaling that it’s important.

Life insurance is meant to protect the financial security of loved ones, and it’s critical for many people — such as those with dependent spouses or kids — to carry it. But not every parent needs it, and plenty of single, childless people do.

Understand that a life insurance policy serves to protect anyone who may be depending on you financially. If you’re fairly well off and your loved ones are in line to inherit sufficient funds to support them should you perish, you may not need a policy. But if your spouse and/or your kids or anyone else would be hurt financially by your demise, that’s when a life insurance policy makes sense. For example, it might be impossible for your spouse to meet retirement savings goals without your contributions over the coming decades, so life insurance can fill that hole.

Single parents probably need it, and even childless singles can need it. For example, you may be helping your parents or your nieces and nephews financially. Or maybe you’re paying off a private student loan (or other loans), and someone, such as a parent, has cosigned that debt; if so, they’ll be on the hook to pay it off should you die. If you’ve bought a home with someone, such as a sibling, and you’re both making payments on the mortgage, life insurance can ensure that your co-homeowner isn’t left with unaffordable payments. If you’re a business owner, a life insurance policy can help keep the business afloat until necessary decisions and plans are made. Finally, a modest life insurance policy can fund a funeral and burial.

There are two key kinds of life insurance: permanent (“whole” and “universal” policies) and temporary (“term” insurance). Whole life insurance is part insurance and part investment, but you can generally do better investing outside your insurance policy. Term insurance tends to be a better choice, covering you for a specified period. For example, you might buy a 20-year policy that will last until your children are grown.

My most regrettable financial move happened around 1989. I’d left an employer and had money from a retirement account there. I bought shares of Walt Disney, Alltel, McDonald’s, Merck and PepsiCo. All seemed to do well for a few years. My broker would occasionally call to recommend switching into another stock. I usually agreed. Later, I let him buy and sell stocks in my account without my permission in order to move faster. He ended up selling all my stocks and buying many bank stocks. I wasn’t happy, so I ended the arrangement and moved all that money into a stock index fund. I might have made more by sticking with my original investments, but I like the security of index funds and not having to watch them closely. — S.B., via email

The Fool responds: Many great fortunes are made by investing in terrific companies and hanging on to those shares for years, if not decades. But we love index funds, too.

You must really trust a broker’s skill and integrity to allow them to trade stocks in your account. Remember that some brokers may collect compensation from every trade in your account — which is a conflict of interest. (Some may even collect more for pushing certain securities.) It’s smart to find out exactly how any financial professional you use is compensated.

(Do you have a smart or regrettable investment move to share with us? Email it to TMFShare@fool.com.)

I trace my roots back to 1993, when I was founded by a former Haagen-Dazs and SlimFast executive. (He is now the CEO of a cannabis company.) I grew by acquiring many other companies — including, in 2000, the Celestial Seasonings tea company. My current brands include The Greek Gods yogurt, Earth’s Best Organic and Ella’s Kitchen baby and kids’ foods, Joya and Natumi plant-based beverages, and HartleyÕs jelly. I’ve struggled in recent years, and my market value was recently just $66 million. My recent earnings report featured shrinking revenue, but also shrinking debts and losses. Who am I?

I trace my roots back to 1948, when a couple launched the first drive-through hamburger spot in California. They soon introduced two-way speaker boxes, so customers could remain in their cars. I built a reputation for fresh ingredients. I’m family-owned and privately held, so no shares of me are available for public purchase. I have more than 400 locations in 10 states, mostly west of the Mississippi, and employ more than 44,000 people. All of my managers began in entry-level positions. Look for my yellow arrow, and maybe order your burger “animal-style.” Who am I? (Answer: In-N-Out Burger)

Exchange-traded funds (ETFs) are funds that trade like stocks. In an uncertain economic environment, consider investing in the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD).

This ETF holds high-yielding dividend stocks from 100 top companies. It tracks the Dow Jones U.S. Dividend 100 Index, which screens companies based on several quality characteristics, including dividend yield, five-year dividend growth rate and financial strength.

Dividend stocks tend to be more defensive holdings. They have historically been less volatile than dividend nonpayers, as well as providing investors with dividend income. The Schwab U.S. Dividend Equity ETF had a recent yield of 3.3%, which is about triple the S&P 500’s yield. If the market tumbles, this fund shouldn’t fall as far and will continue delivering dividend income.

Dividend stocks also tend to be strong performers in the long term. From 1973 through 2025, dividend payers delivered a 9.2% annualized total return (compared to 4.2% for nonpayers), according to data from Ned Davis Research and Hartford Funds. The Schwab U.S. Dividend Equity ETF has done even better, delivering annualized total returns of more than 12% over the past one-, three- and 10-year periods.

The Schwab U.S. Dividend Equity Fund offers a low-cost way to invest in a bunch of high-quality stocks. If it appeals to you, give it a closer look.