President Trump Takes Credit for February Job Gains
"Balance of Power" focuses on the intersection of politics and global business. On today's show, Diana Furchtgott-Roth, Director of the Heritage Foundation Center for Energy, Climate, and Environment, shares her thoughts on what disturbances she's bracing for in the US economy. Elizabeth Wydra, Constitutional Accountability Center President, talks about President Trump going on record saying Elon Musk is the head of DOGE and the potential legal ramifications of the President's comment. Melinda Haring, Senior Fellow at the Atlantic Council's Eurasia Center, discusses the US & Ukraine set to talk next week and what to expect from these conversations. (Source: Bloomberg)
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25 minutes ago
- Yahoo
JD Vance says the ‘blood feud' between Trump and Musk is ‘not going to be good for Elon' but admits he ‘suffered a lot' for the White House
Vice President JD Vance acknowledged the deepening feud between Elon Musk and President Trump but emphasized his hope that Musk could eventually reconcile with the Trump administration, praising Musk's past efforts with DOGE and calling him a 'transformational entrepreneur.' While defending Trump and dismissing Musk's Epstein-related claims as baseless, Vance warned that Musk's aggressive political stance could backfire, both for his companies and the broader national interest. It's been pointed out by many spectators that the feud between the world's richest man, Elon Musk, and arguably the world's most powerful man, Donald Trump, is not going to end well for any involved. And JD Vance, Trump's political right hand, agrees. The Tesla CEO and president have fallen out to a major extent, at first over the White House's 'Big, Beautiful Bill', which Musk says will undo all the work of his Department of Government Efficiency (DOGE). But since Musk's departure from Washington D.C. several weeks ago, his attacks on President Trump have continued to ramp up. He has encouraged voters to outright rebel against the bill by contacting their political representatives, with Trump saying he was 'disappointed' in Musk for such statements. The man worth $342 billion hit back that Trump would have lost the election without his backing, with the president then threatening to terminate a host of government contracts to Musk's private entities. In response, Musk claimed that the president's name was in the Epstein files—a jibe he provided no evidence to support. Speaking in an interview this week, Vice President Vance said any notion that Trump did 'anything wrong with Jeffrey Epstein' is 'BS.' Yet while the relationship between the Musk and Trump seems to have gone past the point of no return, Vice President Vance says he still wants to see the SpaceX founder return to the fold of the Trump 2.0 team. 'My basic read on it, first of all I'm the vice president to President Trump, my loyalties are always going to be with the president. Elon [is] an incredible entrepreneur, I think DOGE was really good. The effort to root out waste, fraud and abuse in our country was really good,' Vance told the 'This Past Weekend' podcast with Theo Von. 'I hope that eventually Elon kind of comes back into the fold. Maybe that's not possible now because he's gone so nuclear—I hope it is,' Vance added. Musk's decision to go 'nuclear', as Vance describes it, may not prove to be in the best interest of his companies, such as Tesla and Space X, which may now draw the attention of the Oval Office for the wrong reasons. As a result of this concern, in the past five days alone the share price of Tesla has sunk more than 14%, with Musk's net worth taking an eye-watering hit as a result. Vance suggested that Musk may be shooting from the hip instead of assessing the ramifications of going head-to-head with the White House, adding: 'Elon's new to politics … I think part of it is this guy got into politics and has suffered a lot for it.' Indeed even prior to a spat with the White House, Musk was suffering for his political interests. While heading up DOGE, protestors to his work and the Trump administration began targeting Tesla by damaging cars, showrooms, and charging points—not only in the U.S. but also across Europe. 'The process in D.C., if you're a business leader you probably get frustrated with that process because it's more bureaucratic [and] slow moving. So I think there's some frustrations there,' Vance added. 'But I think it's huge mistake for [Musk] to go after the president like that. I think that if he and the president are in some blood feud, most importantly it's going to be bad for the country but I … don't think it's going to be good for Elon either.' Concerns have been raised about the bill on account of the fiscal ramifications of the largest tax breaks 'in history,' with previous projections from the Congressional Budget Office (CBO) finding the legislation would add $3.8 trillion to the deficit while proposed cuts to Medicaid would shave only $1 trillion in spending. However the Trump administration said statements such as 'The One Big Beautiful Bill increases spending' and 'The One Big Beautiful Bill adds to the deficit' are false. For example, the White House points to the CBO's predictions that while tariffs will shrink the economy it will also reduce federal deficits by $2.8 trillion (the inclusion of the Big Beautiful Bill in its modeling is not mentioned). 'I think that it's a good bill and it does a lot of good for the American people,' Vance continued. 'Look, Elon's entitled to his opinion. I'm not saying he has to agree with the bill or agree with everything that I'm saying, I just think it's a huge mistake for the world's wealthiest man—I think one of the most transformational entrepreneurs ever—to be at war with the world's most powerful man who I think is doing more to save the country than … anybody in my lifetime.' He added: 'I don't want to reveal too many confidences but [Trump] was getting a little frustrated, feeling like some of the criticisms were unfair coming from Elon … the president doesn't think that he needs to be in a blood feud with Elon Musk, and I actually think if Elon chilled out a little bit, everything would be fine.' This story was originally featured on
Yahoo
an hour ago
- Yahoo
House takes up DOGE cuts amid Trump-Musk feud fallout
House Republicans this week will vote on codifying billions of dollars of cuts made by the Department of Government Efficiency (DOGE), days after the profound — and very public — breakup between President Trump and Elon Musk, the force behind the cost-cutting agency. The $9.4 billion package claws back funding for the U.S. Agency for International Development (USAID) and the Corporation for Public Broadcasting, which supports NPR and PBS, among other areas targeted by DOGE. Some Republicans have expressed reservations with various parts of the bill, raising questions about its fate in the House. Also this week, the House will vote on a bill to classify fentanyl-related substances as Schedule I. Across the Capitol, Senate Republicans are working to finalize changes to the 'big, beautiful bill,' as party leaders aim to send the package to President Trump by July 4. Some committees may begin to roll out text this week. Additionally, a flurry of cabinet secretaries will visit Capitol Hill this week to answer questions about the president's fiscal year 2026 budget request. House Republicans are plowing ahead with their first attempt at codifying DOGE cuts this week, planning a vote on the Rescissions Act of 2025, which would rescind $9.4 billion in federal funding. The House Rules Committee is scheduled to meet on the measure on Tuesday at 2 p.m., tee-ing up the legislation for the week. 'We're gonna codify the DOGE cuts, you'll see that in a series of actions here in the House,' Speaker Mike Johnson (R-La.) told reporters on Friday. 'We got the first rescissions package this week, we'll be passing it early next week, that DOGE cuts, there'll be more of that to come.' Not all Republicans, however, are on board with the legislation: A handful of lawmakers have voiced concerns with different provisions in the measure, leaving leadership with some work to do before the bill hits the floor. Rep. Don Bacon (R-Neb.), for example, has expressed opposition to clawing back funding for U.S. President's Emergency Plan for AIDS Relief, known as PEPFAR, which was established during the George W. Bush administration. The congressman said leadership has assured him they are not gutting the entire program, but instead cutting 'weird appendages off.' 'I talked to the whip team, I'm on the whip team, I said if it's gonna be cutting all of PEPFAR, I'm a no,' Bacon told reporters on Friday. The effort comes days after the blistering feud between Trump and Musk, which began as a back-and-forth over the party's tax cuts and spending package before quickly turning into a personal fight — severing ties between the world's most powerful man and the richest person on the planet. 'I would assume so, yeah,' Trump told NBC News in an interview on Saturday when asked if he thought his relationship with the brainchild of DOGE was over. Senate Republicans this week are continuing work on the 'big, beautiful bill,' as party leaders push to meet their self-imposed deadline of enacting the package by July 4. Committees are expected to start rolling out text throughout the week as the chamber nears a vote on the sprawling legislation. There are still a number of key debates that must be adjudicated before the package can squeak through. Some conservatives are still pushing for steeper spending cuts, while a cadre of moderates are calling for a less aggressive rollback of green-energy tax credits Democrats approved in 2022. 'The spending cuts are not nearly enough,' Sen. Rand Paul (R-Ky.) told 'Fox News Sunday' of the bill. The Kentucky Republican has also expressed opposition to the $4 trillion debt limit increase included in the measure. Perhaps one of the most contentious questions is what to do about the state and local tax (SALT) deduction cap. Moderate House Republicans from high-tax blue states negotiated with their leadership to include a $40,000 SALT deduction cap in the bill — up from the $10,000 deduction cap in current law — a provision they say must remain in-tact to earn their vote when the package returns to the House. Senate Republicans, however, are pushing to lower that number. With zero Republicans representing states that are impacted most by the SALT deduction cap — New York, New Jersey and California — the language is at risk of changing. 'No, and it shouldn't survive,' Sen. Rick Scott (R-Fla.) said on 'Fox News Sunday' when asked if he thinks the $40,000 SALT deduction cap survives in the Senate. 'We should not be subsidizing blue state governors' wasteful spending. That's exactly what, if that's in there, then Florida will be paying for…the state government of New York, and that's wrong.' House Republicans in the SALT Caucus are warning that if their deal is tampered with in the Senate, they will not support the package when it returns to the House. 'If the Senate changes the SALT deduction in any way, I will be a no, and I'm not going to buckle on that,' Rep. Mike Lawler (R-N.Y.) said on CNN's 'Inside Politics' on Sunday. 'And I know in speaking to my other colleagues, they will be a no as well.' The House this week is slated to vote on a bill that would permanently categorize fentanyl-related substances as Schedule I in the Controlled Substances Act, classifying the opioid as having high abuse potential that is not allowed to be used medically. The legislation — dubbed the HALT Fentanyl Act — passed the Senate on a bipartisan 84-16 vote in March, sending the measure to the House for consideration. The lower chamber is expected to approve the measure: In February, the House passed its own version of the bill in a bipartisan 312-108 vote. Consideration of the Senate-passed bill in the House this week marks the latest example of Republicans cracking down on the spread and use of fentanyl, which has been a key focus of the GOP-controlled Congress in addition to the Trump White House. 'House Republicans are doing everything in our power to stop fentanyl from claiming more American lives – everyone should support our efforts to halt this deadly crisis,' the office of House Majority Leader Steve Scalise (R-La.) wrote in its floor lookout. A number of cabinet secretaries are scheduled to appear before committees on both sides of the Capitol this week, as they field questions about their agencies and the White House's budget request for fiscal year 2026. Other hot topics — including Trump deploying the National Guard to Los Angeles, the state of the economy, and the Trump-Musk feud — will likely come up during the hearings. Tuesday, June 10 9:30 a.m.: House Appropriations Subcommittee on Defense oversight hearing Witnesses: Defense Secretary Pete Hegseth, Joint Chiefs of Staff Chairman General Dan Caine 10 a.m.: House Energy and Commerce Subcommittee on Energy hearing on the fiscal year 2026 Department of Energy budget 10 a.m.: House Appropriations Subcommittee on Departments of Transportation, and Housing and Urban Development, and Related Agencies budget hearing on Department of Housing and Urban Development Witness: HUD Secretary Scott Turner Wednesday, June 11 10 a.m.: House Ways and Means Committee hearing with Secretary Scott Bessent Witness: Treasury Secretary Scott Bessent 10 a.m.: Senate Appropriations Subcommittee on Department of Defense hearing to examine proposed budget estimates for fiscal year 2026 for the Department of Defense — Led by Subcommittee Chairman Mitch McConnell (R-Ky._ Witnesses: Defense Secretary Pete Hegseth, Joint Chiefs of Staff Chairman General Dan Caine 10 a.m.: House Agriculture Hearing for the purpose of receiving testimony from the Honorable Brooke L. Rollins Witness: Agriculture Secretary Brooke Rollins 10 a.m.: Senate Energy and Natural Resources Committee hearing to examine the president's proposed budget request for fiscal year 2026 for the Department of the Interior 3:30 p.m.: Senate Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies hearing to examine proposed budget estimates for fiscal year 2026 for the Department of Housing and Urban Development Witness: HUD Secretary Scott Turner 4 p.m.: Senate Appropriations Subcommittee on Financial Services and General Government hearing to examine proposed budget estimates for fiscal year 2026 for the Department of the Treasury Witness: Treasury Secretary Scott Bessent Thursday, June 12 10 a.m.: House Natural Resources Committee: 'Examining the President's FY 2026 Budget Request for the Department of the Interior' Witness: Interior Secretary Doug Burgum 10 a.m.: House Armed Services Committee hearing on Department of Defense fiscal year 2026 budget request Witnesses: Defense Secretary Pete Hegseth, Joint Chiefs of Staff Chairman General Dan Caine 10 a.m.: Senate Finance Committee hearing to examine the president's proposed budget request for fiscal year 2026 for the Department of Treasury and tax reform Witness: Treasury Secretary Scott Bessent Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
an hour ago
- Yahoo
Ask an Advisor: We Have $1.4M Saved for Retirement. Can We Afford to Spend $7k Per Month?
SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. I turn 59 in September 2025 and I plan to retire at 62 with no debt. I have $1.2 million in a traditional IRA and $200,000 in a workplace Roth 401(k). I have an emergency cash fund in a high-yield savings account. I earn $320,000 per year and annually contribute $30,000 to the Roth 401(k), plus I get a match on the first 6%. My only current debt is a $170,000 mortgage on a home worth $625,000. My wife and I will collect around $3,500 each month in Social Security at age 62. I have savings set aside to bridge medical insurance until Medicare coverage starts at age 65. Our projected expenses-which include property taxes, health insurance and auto insurance, plus normal living expenses-will be around $7,000 per month at age 62. Is this a good plan? What could I do to make it better besides delaying retirement? – Shaun Shaun, based on what you've shared, it looks like you're in solid financial shape. While the finer details will influence your final decision, we can take a step back and look at the broader picture to see why retiring at 62 seems within reach. After that, I'll walk through a few suggestions I'd consider if I were in your position. Whether you're getting ready to retire or just starting to save for it, a financial advisor can help you plan for the future. . You've already taken a helpful first step by estimating your retirement expenses. The next move is to compare those costs to any sources of guaranteed income you expect to receive, such as pensions, annuities, or Social Security. You and your wife are expecting to receive about $3,500 per month in Social Security benefits, which I assume is based on your latest estimate. If your monthly spending is projected at $7,000, that leaves a gap of roughly $3,500 that would need to be covered by withdrawals from your retirement savings-setting taxes aside for the moment. (And if you need help deciding when to claim your Social Security benefits, speak with a financial advisor about your options.) Next, let's estimate the value of your savings when you retire. You've got about $1.4 million in retirement accounts with three more years of contributions and growth ahead of you. You're saving $30,000 per year in your Roth and getting a 6% match. You didn't specify the structure of the match so let's go with the common 50% of 6%, but adjust this to fit your actual match if it's different. At $320,000 per year, that would come out to another $9,600, which I'll assume goes into a tax-deferred account. In addition to your contributions, the value of your Roth and tax-deferred savings will depend partially on the growth of your investments. We can use a range of estimates to see what that might look like based on some reasonable expectations of diversified asset allocations suitable for near retirees: Rate Roth Savings Tax Deferred Savings 5% $331,000 $1,421,000 6% $339,000 $1,462,000 7% $348,000 $1,500,000 Based on the assumptions I made, you could have anywhere from $1.75 million to $1.85 million in savings. Again, adjust for your own comfort level and investment plan if these assumptions don't seem to fit you. (If you're unsure how much money you'll have by the time you retire, a financial advisor can help you with investment projections.) Although I suggest you do a detailed analysis of your specific situation and talk this through with a tax accountant or financial advisor, we can use a rough estimate to get an idea of the income tax you might expect to pay on your retirement income. Even though you won't be retiring for another three years, I'll base my calculations on the 2025 tax rates and brackets just to illustrate how it works. Your Roth account is projected to make up just under 20% of your total retirement savings. For simplicity, I'll round that to 20% and assume that all withdrawals are taken proportionally. So, for every $100 you withdraw, we'll estimate that $20 comes from your Roth-tax-free-and $80 comes from your traditional IRA, which is subject to income tax. So, let's say you collect $42,000 in Social Security, 85% of which is taxable. That's $35,700 of taxable income. You'd then need to withdraw another $42,000 per year from savings to cover your expenses. Since 80% of the money you withdraw from retirement accounts will come from the traditional IRA, that will add another $33,600 to your taxable income for the year. As a result, your Social Security benefits and retirement account withdrawals would add up to $69,300. Taking the standard deduction ( $30,000 in 2025 ) would lower your taxable income to $39,300. Based on these income projections and the 2025 federal income tax brackets, you and your wife would be in the 12% marginal tax bracket. You would owe approximately $4,240 in federal income tax. If you plan to pay that bill using funds from your traditional IRA, you'd need to account for the fact that the withdrawal itself is taxable. To cover the tax while factoring in the tax on the withdrawal, you'd likely need to take out closer to $5,000 in total. However, if you used Roth funds to pay your tax bill, no additional income tax would apply to that withdrawal. All told, you'd be looking at withdrawing upwards of $47,000 from your tax-deferred savings and Roth 401(k), which together could be worth up to $1.85 million by the time you retire. That's a withdrawal rate of about 2.5%, which is quite low even if you didn't have home equity to tap into if needed. (And if you need additional guidance when it comes to tax planning, consider working with a financial advisor.) I think the premise of your plan is more than workable. However, there are some things I think you can do to make it better: Consider delaying Social Security: You accept a steep penalty for claiming Social Security early. Even if you retire at 62, it's quite likely that you'd be better off delaying Social Security. Unlike volatile investments, Social Security benefits grow by a fixed rate, which is 8% per year past full retirement age (until age 70). They also aren't fully taxable, and adjust for inflation. Optimize your withdrawal sequence for taxes: In the estimate above I assumed you'd take proportional withdrawals from your Roth and tax-deferred accounts. You may benefit from withdrawing from your tax-deferred balance first, and letting your Roth account grow. Consider Roth conversions: You would likely also benefit from partial Roth conversions during early retirement. This could let you take advantage of low tax years, especially before Income-related Medicare Adjustment Amount (IRMAA) becomes a factor, and help reduce future required minimum distributions (RMDs). Plan for long-term care: Although your retirement income needs are adequately covered, think about your plan for covering a potential long-term care situation. (For additional advice on how to improve your retirement outlook, match with a financial advisor today.) Your savings and Social Security benefits are likely enough to support $7,000 in monthly expenses in retirement. If you consider the potential suggestions I made above, you may find yourself in an even stronger financial position in retirement. A financial advisor who specializes in retirement planning and building financial plans can be a valuable resource as you prepare for your golden years. Finding a financial advisor doesn't have to be hard. SmartAsset's free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you're ready to find an advisor who can help you achieve your financial goals, get started now. Retirees often have assets spread across taxable, tax-deferred and tax-free accounts. Creating a withdrawal strategy that balances these sources can help reduce your lifetime tax burden. For example, drawing from taxable accounts first while allowing tax-advantaged accounts to grow may help manage taxable income in early retirement. Photo credit: Courtesy of Brandon Renfro, © Wackerhausen, © The post Ask an Advisor: We Have $1.4M Saved for Retirement. Can We Afford to Spend $7k Per Month? appeared first on SmartReads by SmartAsset. Sign in to access your portfolio
