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Yahoo
2 days ago
- Business
- Yahoo
3 Surprising Financial Benefits of Unretiring (It's More Than Just a Salary)
Retirement isn't always the final chapter — sometimes it's just a pause. One survey conducted by T. Rowe Price, found that millions of retirees have returned to work in search of financial and emotional benefits. Whether you miss the structure, the sense of purpose, or want to boost your bank account, more people are choosing to 'unretire' and reenter the workforce. And it turns out, the financial upsides go far beyond a steady paycheck. Explore More: Read Next: 'I've seen so many compelling benefits from unretiring in my work with clients — and experienced them myself,' said Andrew Lokenauth, money expert and owner of BeFluentInFinance. 'The money aspect goes way deeper than just getting a paycheck.' Here are some other surprising benefits of unretiring that might make you rethink staying on the sidelines. Plus discover several signs you should unretire this year. Chris Heerlein, CEO of REAP Financial, said working part-time or consulting can often provide access to employer-sponsored health insurance, reducing the need to purchase expensive private plans or rely on Medicare. Additionally, staying physically and mentally active is linked to lower healthcare expenses, as retirees who remain engaged in work tend to experience fewer health problems, keeping their overall costs lower. 'Let me tell you about my client Sarah. She went back to consulting work after two years of retirement and saw her healthcare costs drop by [over] $400 per month,' said Lokenauth. Just by staying mentally engaged and physically active at work, he said she needed fewer medications and doctor visits. And she's not alone. He's consistently noticed that working retirees tend to have lower medical expenses. Check Out: The tax benefits are pretty significant, too. When Lokenauth unretired, he was able to keep contributing to his Roth IRA since he had earned income again. 'Plus, delaying Social Security meant my monthly benefits grew about 8% each year,' he added. The compound effect really adds up. Working just a few extra years can open up more tax-efficient strategies that aren't available once you're fully retired — and those perks can stretch your savings a lot further down the line. By earning income, retirees can reduce the amount they need to withdraw from their savings, allowing those funds to last longer. This extended longevity of retirement assets, according to Heerlein, can make a huge difference over time, especially as longer lifespans and unexpected medical expenses increase the financial burden on retirees. 'The ability to contribute even a small amount to savings while still working part-time can help balance finances and provide peace of mind,' he said. Beyond the financial benefits, Heerlein noted that staying engaged in work can have emotional and social advantages that reduce potential future costs. Remaining active in a work environment helps reduce isolation and contributes to a better overall mental health, which can lead to fewer medical issues and reduced spending on healthcare. 'Staying engaged in work is not only financially beneficial but also supports a healthier, more fulfilling retirement,' Heerlein added. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 6 Hybrid Vehicles To Stay Away From in Retirement Here's the Minimum Salary Required To Be Considered Upper Class in 2025 This article originally appeared on 3 Surprising Financial Benefits of Unretiring (It's More Than Just a Salary) Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
4 days ago
- Business
- Yahoo
Tariffs vs. Your Paycheck: 4 Ways Trump's Roller Coaster Negotiating Is Impacting Your Budget
The very public feud between President Donald Trump and Elon Musk is bringing up renewed concerns about tariffs. According to The Hill, Musk wrote that Trump and the tariffs will cause a recession. While the Trump administration has said the tariffs are needed to help the American economy, many families are worried about how the roller coaster negotiating will impact their budgets. Trending Now: Check Out: GOBankingRates asked some financial experts to describe how your money is being affected by tariffs. Andrew Lokenauth, money expert and owner of BeFluentInFinance, said basic things like soap and cleaning supplies cost more because of ingredient markup. 'I've watched prices climb steadily at my local stores,' Lokenauth said. 'Just picking up basic home goods costs me about 20 to 30% more than it did before these tariffs kicked in. The other day, I noticed my regular brand of kitchen appliances jumped $75 — a direct result of manufacturing costs getting passed down to us consumers.' Explore More: 'Budgeting pressure from tariffs and higher-priced goods tends to impact Americans differently based on their income levels and spending habits,' said Vince DeCrow, founder of RISE Investments. 'However, many Americans have already started delaying large purchases, downgrading vacation plans and cutting other discretionary spending on things such as clothing, electronics and eating out.' Lokenauth recommends strategic buying to avoid price spikes. 'Timing purchases has become crucial,' Lokenauth said. 'I track price trends and stock up when things dip.' 'If you're nearing retirement or retired and depending on a fixed income, you're likely going to be more heavily impacted by Trump's tariffs,' DeCrow said. 'To plan for this, you can help offset the higher cost of goods by reassessing your budget, prioritizing essential expenses, buying in built at discount retailers and proactively taking advantage of more senior discounts.' Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard These Cars May Seem Expensive, but They Rarely Need Repairs The New Retirement Problem Boomers Are Facing This article originally appeared on Tariffs vs. Your Paycheck: 4 Ways Trump's Roller Coaster Negotiating Is Impacting Your Budget 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
Yahoo
5 days ago
- Business
- Yahoo
Waiting To Budget Until You're Debt-Free? That's Not a Strategy — It's Denial
If you've ever told yourself, 'I'll start budgeting once I'm out of debt,' you're not alone — and you're definitely not off the hook. Here's the thing: Business Insider reports that the average debt in America is over $105,000 across mortgages, auto loans, student loans, and credit cards. Waiting to get your financial life in order after paying off debt might sound reasonable, but it's kind of like saying you'll start eating healthy after you lose weight. See the problem? Consider This: Discover More: 'I made this exact mistake in my early 20s,' said Andrew Lokenauth, money expert and owner of BeFluentInFinance. He kept telling himself there was no point in budgeting when all his money was going to debt payments anyway. 'Looking back, it was pure avoidance behavior — I didn't want to face the reality of my financial situation,' he said. Budgeting isn't just for people with extra cash — it's a tool that can actually help you get out of debt faster. Here's why avoiding it is less of a plan and more of a trap. Also learn about some ways you can tackle your budget and manage your debt. Delaying budgeting until you're debt-free means missing out on essential financial habits, said Chris Heerlein, CEO of REAP Financial. Budgeting helps you gain control over your money, track your expenses and save for the future, even while you're paying off debt. By budgeting now, you can develop the discipline needed to prioritize debt repayment while also making room for savings and emergencies. 'Without a budget, it's easy to overspend and lose focus on financial goals,' Heerlein remarked. Lokenauth similarly agreed, adding, 'Without a budget, these money leaks just keep draining your accounts.' Find Out: According to Heerlein, by organizing your finances and allocating a portion of your income specifically for debt, you'll pay it off faster. Without a budget, you might end up putting off debt payments or making only minimal progress, leading to more stress and delayed financial freedom. By budgeting from the start, you ensure that every dollar works toward your goal of becoming debt-free, rather than just covering immediate expenses. 'An emergency fund is crucial to avoid setbacks like unexpected medical bills or car repairs, which can derail your financial progress,' said Heerlein. Starting a budget now ensures that once your debt is paid off, you're financially prepared for whatever comes next, giving you stability and confidence in your future financial decisions. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 6 Big Shakeups Coming to Social Security in 2025 Mark Cuban Says Trump's Executive Order To Lower Medication Costs Has a 'Real Shot' -- Here's Why This article originally appeared on Waiting To Budget Until You're Debt-Free? That's Not a Strategy — It's Denial 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
Yahoo
21-05-2025
- Business
- Yahoo
8 Money Traps Millennials Fell For That Gen Z Avoids
When it comes to money, every generation learns a few lessons the hard way. Millennials came of age during recessions, a student loan crisis and the peak of avocado toast culture –racking up financial missteps along the way. Learn More: Consider This: According to Chris Heerlein, CEO of REAP Financial, millennials face significant challenges due to student loan debt, rising living costs and stagnant wages. Many entered the workforce during the Great Recession, leading to high debt burdens while trying to save for retirement and major life goals. He explained that these financial pressures are compounded by the increasing cost of healthcare and the difficulty of securing affordable housing, making long-term financial stability harder to achieve. But Gen Z? They're approaching money with a whole different mindset. From credit card chaos to housing headaches, here are the money traps millennials fell into that Gen Z is (so far) smartly sidestepping. According to the Education Data Initiative, millennials have the largest share of total student loan debt despite a declining average balance. Andrew Lokenauth, money expert and owner of BeFluentInFinance, has watched countless millennial clients struggle under crushing student loans — we're talking over $50,000 for degrees that didn't deliver the promised returns. He said his millennial clients often tell him they felt pressured to attend expensive schools because 'that's just what you did. 'But Gen Z. Man, they're different. I'm seeing them choose community college first, then transfer to state schools.' Or they're pursuing trade schools and certifications — smart moves that'll save them thousands. Read Next: According to Lokenauth, back in the day, millennials bought into this toxic 'hustle culture' mindset –burning themselves out working three to four gigs just to stay afloat. 'I still remember one client who was juggling a full-time marketing job, driving Uber at night and selling stuff on eBay,' he recounted. 'She was exhausted.' Gen Z, on the other hand, seems more focused on building actual sustainable businesses or investing in skills that'll boost their main career trajectory. They're playing the long game. 'Here's something that makes me angry: Millennials got absolutely destroyed by housing market timing,' said Lokenauth. Many graduated into the 2008 recession, couldn't buy when prices were low, then got priced out when the market recovered. Meanwhile, Gen Z is exploring creative housing solutions like house hacking and co-living arrangements. Plus, he said they're way more comfortable staying at home longer to build savings. Less stigma about it. After watching their parents lose retirement savings in 2008, many millennials developed this intense fear of the market. 'I can't tell you how many kept their money in savings accounts earning 0.01%,' Lokenauth noted. Gen Z, however, started investing through apps like Robinhood super early. Sure, some made rookie mistakes with meme stocks, but they're not afraid to put money to work in the market. Lokenauth said this one hits close to home as he's had many millennial clients with more than $20,000 in credit card debt from trying to maintain lifestyles they couldn't afford. 'Social media pressure was real,' the expert said. Gen Z seems more minimalist and intentional about spending. They're using buy-now-pay-later services more strategically and generally seem less interested in flexing material goods. Millennials often got stuck in dead-end jobs thinking they had to 'pay their dues.' Lokenauth said he spent five years doing this himself early in his career. 'What a waste,' he remarked. Gen Z understands job-hopping isn't bad and they're way better at leveraging their skills for higher pay. They're also more likely to start online businesses or monetize their talents directly. Through his practice, Lokenauth has noticed millennials often prioritized retirement savings over emergency funds — then got crushed when emergencies hit. Whereas, Gen Z watched this play out and tends to build cash reserves first. They've seen how quickly things can go sideways and want that safety net. Many millennials fell into the trap of increasing spending whenever their income went up. Lokenauth recalls one client who upgraded his apartment, car and wardrobe right after a promotion –then lost his job six months later. Gen Z tends to be more conscious about lifestyle creep and often maintains their basic living standards even as income grows. 'The thing is, millennials weren't dumb — they just faced some truly awful timing and received guidance that didn't match economic realities,' Lokenauth emphasized. Meanwhile, Gen Z had the advantage of watching and learning from these struggles. And from what Lokenauth has seen working with both generations, they're putting those lessons to good use. More From GOBankingRates 10 Cars That Outlast the Average Vehicle Sources REAP Financial, 'Who We Are: Our Financial Planning Team.' Education Data Initiative, 'Student Loan Debt by Generation.' BeFluentInFinance, 'About Us.' This article originally appeared on 8 Money Traps Millennials Fell For That Gen Z Avoids Sign in to access your portfolio
Yahoo
21-05-2025
- Business
- Yahoo
8 Money Traps Millennials Fell For That Gen Z Avoids
When it comes to money, every generation learns a few lessons the hard way. Millennials came of age during recessions, a student loan crisis and the peak of avocado toast culture –racking up financial missteps along the way. Learn More: Consider This: According to Chris Heerlein, CEO of REAP Financial, millennials face significant challenges due to student loan debt, rising living costs and stagnant wages. Many entered the workforce during the Great Recession, leading to high debt burdens while trying to save for retirement and major life goals. He explained that these financial pressures are compounded by the increasing cost of healthcare and the difficulty of securing affordable housing, making long-term financial stability harder to achieve. But Gen Z? They're approaching money with a whole different mindset. From credit card chaos to housing headaches, here are the money traps millennials fell into that Gen Z is (so far) smartly sidestepping. According to the Education Data Initiative, millennials have the largest share of total student loan debt despite a declining average balance. Andrew Lokenauth, money expert and owner of BeFluentInFinance, has watched countless millennial clients struggle under crushing student loans — we're talking over $50,000 for degrees that didn't deliver the promised returns. He said his millennial clients often tell him they felt pressured to attend expensive schools because 'that's just what you did. 'But Gen Z. Man, they're different. I'm seeing them choose community college first, then transfer to state schools.' Or they're pursuing trade schools and certifications — smart moves that'll save them thousands. Read Next: According to Lokenauth, back in the day, millennials bought into this toxic 'hustle culture' mindset –burning themselves out working three to four gigs just to stay afloat. 'I still remember one client who was juggling a full-time marketing job, driving Uber at night and selling stuff on eBay,' he recounted. 'She was exhausted.' Gen Z, on the other hand, seems more focused on building actual sustainable businesses or investing in skills that'll boost their main career trajectory. They're playing the long game. 'Here's something that makes me angry: Millennials got absolutely destroyed by housing market timing,' said Lokenauth. Many graduated into the 2008 recession, couldn't buy when prices were low, then got priced out when the market recovered. Meanwhile, Gen Z is exploring creative housing solutions like house hacking and co-living arrangements. Plus, he said they're way more comfortable staying at home longer to build savings. Less stigma about it. After watching their parents lose retirement savings in 2008, many millennials developed this intense fear of the market. 'I can't tell you how many kept their money in savings accounts earning 0.01%,' Lokenauth noted. Gen Z, however, started investing through apps like Robinhood super early. Sure, some made rookie mistakes with meme stocks, but they're not afraid to put money to work in the market. Lokenauth said this one hits close to home as he's had many millennial clients with more than $20,000 in credit card debt from trying to maintain lifestyles they couldn't afford. 'Social media pressure was real,' the expert said. Gen Z seems more minimalist and intentional about spending. They're using buy-now-pay-later services more strategically and generally seem less interested in flexing material goods. Millennials often got stuck in dead-end jobs thinking they had to 'pay their dues.' Lokenauth said he spent five years doing this himself early in his career. 'What a waste,' he remarked. Gen Z understands job-hopping isn't bad and they're way better at leveraging their skills for higher pay. They're also more likely to start online businesses or monetize their talents directly. Through his practice, Lokenauth has noticed millennials often prioritized retirement savings over emergency funds — then got crushed when emergencies hit. Whereas, Gen Z watched this play out and tends to build cash reserves first. They've seen how quickly things can go sideways and want that safety net. Many millennials fell into the trap of increasing spending whenever their income went up. Lokenauth recalls one client who upgraded his apartment, car and wardrobe right after a promotion –then lost his job six months later. Gen Z tends to be more conscious about lifestyle creep and often maintains their basic living standards even as income grows. 'The thing is, millennials weren't dumb — they just faced some truly awful timing and received guidance that didn't match economic realities,' Lokenauth emphasized. Meanwhile, Gen Z had the advantage of watching and learning from these struggles. And from what Lokenauth has seen working with both generations, they're putting those lessons to good use. More From GOBankingRates 10 Cars That Outlast the Average Vehicle Sources REAP Financial, 'Who We Are: Our Financial Planning Team.' Education Data Initiative, 'Student Loan Debt by Generation.' BeFluentInFinance, 'About Us.' This article originally appeared on 8 Money Traps Millennials Fell For That Gen Z Avoids Sign in to access your portfolio
