Latest news with #AndrewLokenauth
Yahoo
4 days ago
- Business
- Yahoo
Think Lower Inflation Means Cheaper Prices? Think Again
If you've seen headlines celebrating lower inflation and assumed that meant your grocery bill or rent would magically shrink — sorry to burst your bubble. While lower inflation sounds like good news (and it is, sort of), it doesn't mean prices are going down. Andrew Lokenauth, money expert and owner of Fluent in Finance, has noticed this misconception all the time when talking to his clients about financial planning. 'The thing is, most people mix up 'disinflation' (slower price increases) with 'deflation' (actual price drops). And I get it — the terminology is confusing as hell. When headlines scream 'Inflation falling to 3%!' it sounds like prices must be dropping too.' Here's what's really going on. Find Out: Read Next: According to Dennis Shirshikov, professor of finance at City University of New York and head of growth and engineering at Growth Limit, the false idea that lower inflation means lower prices comes from a fundamental misunderstanding of what inflation actually measures. 'Inflation is the general price level, not the absolute prices.' This is what's happening: When the inflation rate decreases, all that is happening is that prices are still increasing, but at a slower rate. This can be misleading to a lot of people, Shirshikov explained, because most people would expect that less inflation means that prices would be going down rather than going up at a slower rate. See More: 'Picture the cost of a gallon of milk. Milk costs 5% more this year than it did last year when inflation [was] 5%. Even if inflation drops to 2%, the cost of milk would still go up, but at a much slower pace — only 2%, not 5%,' said Shirshikov. So basically, although that may be a welcome development in the sense that it will take pressure off household budgets, it's important to recognize that the prices are not actually falling, they are simply rising less rapidly. If you were relying on prices to act as a sort of after-inflation cut in the price of money itself, it's time to reset your expectations. The best thing is to concentrate on how to manage and control other parts of your budget and investment strategy. As the price of goods goes up in the coming months, you may want to see if there are opportunities to reduce expenses, diversify investments and lock in fixed prices for necessary services now to avoid paying more later. 'Let's face it, being proactive with your financial planning is important for managing inflation — even when it's not as aggressive as before,' Shirshikov said. More From GOBankingRates 10 Cars That Outlast the Average Vehicle Mark Cuban Says Trump's Executive Order To Lower Medication Costs Has a 'Real Shot' -- Here's Why This article originally appeared on Think Lower Inflation Means Cheaper Prices? Think Again
Yahoo
4 days ago
- Business
- Yahoo
Is a $4K Senior Bonus Better Than No Taxes on Social Security?
President Donald Trump touted a lot of ideas while he was campaigning for a second term and one of the proposals he consistently talked about was eliminating taxes on Social Security. It was a vow he made to the retirees, but now he could be reneging on his promise. Read More: Find Out: In the 'One, Big, Beautiful' tax bill there is no proposal for ending taxes on Social Security. Instead, there's a temporary $4,000 deduction. The bill offers a 'historic tax break' to Social Security recipients, 'fulfilling President Trump's campaign promise to deliver much-needed tax relief to our seniors,' White House assistant press secretary Elizabeth Huston said via email, CNBC reported. According to the outlet, the following stipulations would apply: Must be 65 or older The $4,000 deduction would be applicable for tax years 2025-2028 Single filers with more than $75,000 in modified adjusted gross income and married couples who file their taxes together who earn more than $150,000 would not qualify. While that is much different than completely getting rid of taxes on Social Security as promised, finance expert Andrew Lokenauth says it might be a better deal for many retirees. Here's why. For retirees who earn above the income guidelines, the $4,000 deduction won't be helpful, but it will provide financial relief for many older folks, according to Lokenauth. 'From my experience working with retirement planning, the $4,000 deduction is much better targeted to help lower and middle-income seniors.' He explained, 'I've seen how eliminating Social Security taxes primarily benefits wealthier retirees who have substantial other income, while doing nothing for the roughly 50% of seniors who already don't pay taxes on their benefits.' For example, if a retiree makes around $50,000 the $4,000 deduction would save them $500 annually in taxes. 'Not life changing but meaningful for many seniors managing fixed incomes,' Lokenauth said. Retirees in higher tax brackets will not notice a difference with their finances as a result of the $4,000 deduction. The impact will be felt according to income level. 'For seniors making under $75,000 individually or $150,000 jointly, that $4,000 deduction provides consistent, predictable tax relief of roughly $440-$880 depending on their tax bracket,' Lokenauth explained. Retired higher earners would save significantly from the elimination of Social Security taxes. 'I've worked with wealthy retirees who would save $5,000 annually from nixing Social Security taxes,' Lokenauth said. 'But here's the thing — they're not the ones who need the help most.' The $4,000 deduction is a far cry from getting rid of taxes on Social Security, but it will help offset some expenses for retirees.'I saw a middle-income client recently who'd save about $600 a year — enough to cover a few months of utilities or several weeks of groceries,' Lokenauth said. 'And because it's structured as a deduction rather than a credit, the benefit grows along with someone's tax bracket up to the phase-out thresholds.' For now, it looks like eliminating taxes on Social Security isn't an immediate priority, but the $4,000 bonus is in the bill and is far less expensive to implement. There's no comparison. 'I've looked at the budget implications, and this $4,000 deduction would cost about $200 billion over 10 years, while roughly 20% of eliminating Social Security benefit taxation would cost around $1 trillion,' Lokenauth added, 'Plus the deduction comes from general revenue rather than draining Social Security's already strained trust funds.'There are some positive aspects to the bonus proposal such as it works with either standard or itemized deductions, meaning more seniors can actually access the benefit. However, the time frame concerns Lokenauth. 'I've seen how temporary tax provisions create uncertainty. Congress really should make this permanent.'With that in mind, there is room for improvement, but Lokenauth said this is a more 'fiscally responsible approach that still delivers meaningful relief.' More From GOBankingRates 8 Common Mistakes Retirees Make With Their Social Security Checks Here's the Minimum Salary Required To Be Considered Upper Class in 2025 This article originally appeared on Is a $4K Senior Bonus Better Than No Taxes on Social Security?
Yahoo
19-05-2025
- Business
- Yahoo
2 Ways Billionaires Budget Differently Than You — and What You Can Learn
Ever wonder how billionaires manage their money? Spoiler: it's not with coupon books or by skipping lattes. While most of us are focused on trimming expenses, the ultra-wealthy approach budgeting from a totally different angle — one that prioritizes growth, strategy and long-term vision. Trending Now: Explore More: 'While most people stress about saving $5 on coffee, billionaires are looking at ways to turn $1 million into $10 million,' said Andrew Lokenauth, money expert and owner of 'A billionaire client at a previous bank I worked at spends exactly $0 time tracking small expenses,' he noted. 'Instead, he's laser-focused on major wealth-building moves. And that's the first big difference I see — they're playing an entirely different game.' According to NPR, the U.S. has the most billionaires with 902, followed by China and Hong Kong at 516. But you don't need a private jet to borrow a few of their best habits. Here's what billionaires do differently with their budgets — and how you can apply those lessons to your own financial life. According to Kevin Shahnazari, founder and CEO of FinlyWealth, they focus on a long-term strategy with wealth accumulation and protection as their top priorities instead of covering immediate costs. Unlike most folks who focus on covering day-to-day expenses first, billionaires tend to think way ahead. Their budgets are all about growing their wealth over time. They pour money into things that gain value — like real estate, stocks and businesses — and aren't shy about hiring professionals to help them make the most of their money. Be Aware: One big thing that sets billionaire budgets apart? They zoom out and see the big picture. Instead of stressing over monthly bills, they focus on growing their wealth through smart moves like diversifying their investments and taking advantage of tax-friendly strategies. The takeaway for the rest of us? Budgeting isn't just about cutting costs — it's also about making intentional choices that support your long-term goals. That could mean putting money into things with higher returns, like the stock market or real estate, or even investing in yourself to boost your earning potential. Billionaires also lean on a whole team of money experts like financial planners, accountants and advisors to help them make solid decisions. While most of us don't have a squad on speed dial, working with a trusted advisor can be a great way to get tailored advice and plan smarter. The bottom line: When you adopt a long-term mindset and think like a wealth-builder, your money starts working for you — not the other way around. More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? The Most Expensive Disney Merchandise Ever Sold -- and Who's Buying It I'm a Retired Boomer: 6 Bills I Canceled This Year That Were a Waste of Money Andrew Lokenauth, BeFluentInFinance. NPR, 'More billionaires than ever ranked in Forbes' annual list. Here are the top 10' Kevin Shahnazari, FinlyWealth This article originally appeared on 2 Ways Billionaires Budget Differently Than You — and What You Can Learn
Yahoo
19-05-2025
- Business
- Yahoo
2 Ways Billionaires Budget Differently Than You — and What You Can Learn
Ever wonder how billionaires manage their money? Spoiler: it's not with coupon books or by skipping lattes. While most of us are focused on trimming expenses, the ultra-wealthy approach budgeting from a totally different angle — one that prioritizes growth, strategy and long-term vision. Trending Now: Explore More: 'While most people stress about saving $5 on coffee, billionaires are looking at ways to turn $1 million into $10 million,' said Andrew Lokenauth, money expert and owner of 'A billionaire client at a previous bank I worked at spends exactly $0 time tracking small expenses,' he noted. 'Instead, he's laser-focused on major wealth-building moves. And that's the first big difference I see — they're playing an entirely different game.' According to NPR, the U.S. has the most billionaires with 902, followed by China and Hong Kong at 516. But you don't need a private jet to borrow a few of their best habits. Here's what billionaires do differently with their budgets — and how you can apply those lessons to your own financial life. According to Kevin Shahnazari, founder and CEO of FinlyWealth, they focus on a long-term strategy with wealth accumulation and protection as their top priorities instead of covering immediate costs. Unlike most folks who focus on covering day-to-day expenses first, billionaires tend to think way ahead. Their budgets are all about growing their wealth over time. They pour money into things that gain value — like real estate, stocks and businesses — and aren't shy about hiring professionals to help them make the most of their money. Be Aware: One big thing that sets billionaire budgets apart? They zoom out and see the big picture. Instead of stressing over monthly bills, they focus on growing their wealth through smart moves like diversifying their investments and taking advantage of tax-friendly strategies. The takeaway for the rest of us? Budgeting isn't just about cutting costs — it's also about making intentional choices that support your long-term goals. That could mean putting money into things with higher returns, like the stock market or real estate, or even investing in yourself to boost your earning potential. Billionaires also lean on a whole team of money experts like financial planners, accountants and advisors to help them make solid decisions. While most of us don't have a squad on speed dial, working with a trusted advisor can be a great way to get tailored advice and plan smarter. The bottom line: When you adopt a long-term mindset and think like a wealth-builder, your money starts working for you — not the other way around. More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? The Most Expensive Disney Merchandise Ever Sold -- and Who's Buying It 10 Genius Things Warren Buffett Says To Do With Your Money Andrew Lokenauth, BeFluentInFinance. NPR, 'More billionaires than ever ranked in Forbes' annual list. Here are the top 10' Kevin Shahnazari, FinlyWealth This article originally appeared on 2 Ways Billionaires Budget Differently Than You — and What You Can Learn
Yahoo
18-05-2025
- Business
- Yahoo
3 Steps To Take Now If the Stock Market Is Ruining Your 2025 Retirement Plans
If you're watching the stock market and feeling your 2025 retirement plans slip through your fingers, you're not alone. Fidelity reported there are several factors influencing market volatility right now, including tariff uncertainty and recession fears resurfacing. Consider This: Find Out: Between market ups and downs, it's easy to start second-guessing everything. But don't panic just yet — there are smart, simple steps you can take right now to steady your path and keep your retirement dreams alive. 'I've been through several market cycles as a financial advisor, and I totally get the panic people are feeling right now,' said Andrew Lokenauth, money expert and owner of BeFluentInFinance. 'The thing is, there are actually quite a few moves you can make to protect yourself.' Below are the top steps to take, according to experts, if you want to retire in 2025. If the 2025 market swings have you questioning whether you can retire this year, you're not alone, said Stoy Hall, certified financial planner and CEO of Black Mammoth. But here's the truth: Panic is not a plan. The first step is to take a breath and get real about your cash flow. 'Don't just stare at your portfolio — build a withdrawal strategy based on actual spending needs, not the emotional high or low of your account balance,' Hall said. The market might be unpredictable, but your day-to-day bills aren't. He recommended anchoring your plan in what you need, not what you hoped the market would give you. Be Aware: The second move, according to Hall, is to zoom out and assess your income streams. If you've been relying solely on market returns to fund retirement, it's time to diversify. That could mean delaying Social Security for a higher payout later, using part-time income to bridge the gap or even tapping a bond ladder or cash reserves while the market rides out the storm. 'Too many retirees pull from the worst-performing asset at the worst time,' Hall explained. Instead, he advised creating a structured plan that allows your equities some time to rebound. Lastly, if retirement was part of the plan this year, don't assume you have to abandon it — but you might need to redefine what retirement looks like. 'Maybe it's not full-stop; maybe it's phased,' said Hall. Maybe you downshift to consulting or part-time work, not out of desperation, but to give your investments time to breathe. Flexibility is power here, he explained. 'The people who navigate this moment best aren't the ones who predict the market,' he added. 'They're the ones who adapt their game without blowing up the whole playbook.' More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? 4 Affordable Car Brands You Won't Regret Buying in 2025 5 Little-Known Ways to Make Summer Travel More Affordable 4 Housing Markets That Have Plummeted in Value Over the Past 5 Years Sources Fidelity, '5 factors causing volatility now.' Andrew Lokenauth, BeFluentInFinance Stoy Hall, Black Mammoth This article originally appeared on 3 Steps To Take Now If the Stock Market Is Ruining Your 2025 Retirement Plans Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
