Latest news with #ChadGammon
Yahoo
22-07-2025
- Business
- Yahoo
3 Money Moves the Middle Class Should Make After the Passing of Trump's ‘Big Beautiful Bill'
President Donald Trump's 'Big Beautiful Bill' finally cleared the House and the Senate and was signed by the president on July 4. The bill has several policies that could impact the middle class. Making some money moves and preparing for the new changes can help you save money and grow your portfolio. Read Next: Check Out: Here are some of the top money moves the middle class should make. Also see how much the definition of middle class has changed in every state. Capitalize on Clean Energy Credits Now The bill is cycling out of energy credits, which affect electric vehicles, solar panels and other clean energy sources. Chad Gammon, CFP, owner of Custom Fit Financial, suggested making clean energy purchases before the deadline if you've been holding out. 'If you are considering any upgrades, now would be the time to do it. Some credits, such as electric vehicles, are available until September 30, 2025. Other credits, like the residential clean energy credit, will end on December 31, 2025. This can help if you anticipate higher energy bills in the years to come, and reputable installers can assist with an estimated payback period,' he said. Be Aware: Open a 'Trump Account' A 'Trump account' can give your child a head start with investing money and accumulating wealth. Gammon highlighted the promising opportunity while encouraging people to monitor how it will work before investing additional money. 'If you have a child in 2025, I'd look into opening a 'Trump account.' The federal government will give $1,000 as a starter contribution. There are options to contribute further. I'd wait for more details on that, but would set it up for the initial $1,000,' he said. Children who are born between 2025 and 2028 are eligible for a $1,000 deposit, per CNBC. The money in the account will be invested in a fund that tracks the U.S. stock market, the outlet reported. Plan Your Taxes The bill can reduce your tax burden, especially if you use the standard deduction. Gammon explained how the new bill can add more money to your wallet. 'I would also look at your estimated 2025 taxes and adjust withholdings, if needed. The standard deductions moved for [couples who are married and filing jointly] from $30,000 to $31,500, or if you are single, it went from $15,000 to $15,750. This could lower your tax liability, where you can adjust your withholdings on your W-4 and free up extra monthly cash,' he said. Seniors can also get a boosted tax deduction thanks to the bill. Seniors who are 65 or older can get an additional $6,000 tax deduction if their modified adjusted gross income is below $75,000. Married couples filing jointly can capitalize on the additional tax deduction if their combined modified adjusted gross income is below $150,000. This additional tax deduction for seniors currently applies for the tax years 2025 to 2028. 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 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 These Cars May Seem Expensive, but They Rarely Need Repairs 7 Things You'll Be Happy You Downsized in Retirement This article originally appeared on 3 Money Moves the Middle Class Should Make After the Passing of Trump's 'Big Beautiful Bill' Sign in to access your portfolio
Yahoo
22-07-2025
- Business
- Yahoo
3 Money Moves the Middle Class Should Make After the Passing of Trump's ‘Big Beautiful Bill'
President Donald Trump's 'Big Beautiful Bill' finally cleared the House and the Senate and was signed by the president on July 4. The bill has several policies that could impact the middle class. Making some money moves and preparing for the new changes can help you save money and grow your portfolio. Read Next: Check Out: Here are some of the top money moves the middle class should make. Also see how much the definition of middle class has changed in every state. Capitalize on Clean Energy Credits Now The bill is cycling out of energy credits, which affect electric vehicles, solar panels and other clean energy sources. Chad Gammon, CFP, owner of Custom Fit Financial, suggested making clean energy purchases before the deadline if you've been holding out. 'If you are considering any upgrades, now would be the time to do it. Some credits, such as electric vehicles, are available until September 30, 2025. Other credits, like the residential clean energy credit, will end on December 31, 2025. This can help if you anticipate higher energy bills in the years to come, and reputable installers can assist with an estimated payback period,' he said. Be Aware: Open a 'Trump Account' A 'Trump account' can give your child a head start with investing money and accumulating wealth. Gammon highlighted the promising opportunity while encouraging people to monitor how it will work before investing additional money. 'If you have a child in 2025, I'd look into opening a 'Trump account.' The federal government will give $1,000 as a starter contribution. There are options to contribute further. I'd wait for more details on that, but would set it up for the initial $1,000,' he said. Children who are born between 2025 and 2028 are eligible for a $1,000 deposit, per CNBC. The money in the account will be invested in a fund that tracks the U.S. stock market, the outlet reported. Plan Your Taxes The bill can reduce your tax burden, especially if you use the standard deduction. Gammon explained how the new bill can add more money to your wallet. 'I would also look at your estimated 2025 taxes and adjust withholdings, if needed. The standard deductions moved for [couples who are married and filing jointly] from $30,000 to $31,500, or if you are single, it went from $15,000 to $15,750. This could lower your tax liability, where you can adjust your withholdings on your W-4 and free up extra monthly cash,' he said. Seniors can also get a boosted tax deduction thanks to the bill. Seniors who are 65 or older can get an additional $6,000 tax deduction if their modified adjusted gross income is below $75,000. Married couples filing jointly can capitalize on the additional tax deduction if their combined modified adjusted gross income is below $150,000. This additional tax deduction for seniors currently applies for the tax years 2025 to 2028. 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 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 These Cars May Seem Expensive, but They Rarely Need Repairs 7 Things You'll Be Happy You Downsized in Retirement This article originally appeared on 3 Money Moves the Middle Class Should Make After the Passing of Trump's 'Big Beautiful Bill'
Yahoo
28-06-2025
- Business
- Yahoo
4 Things Retirees Should Never Sell To Build Their Retirement Savings
As you get older and your financial situation changes, you might be tempted to sell off retirement assets for short term gain, especially when things like inflation fear and economic turmoil play with your head. However, just because you're retired, it doesn't mean you can be impulsive with your savings. Read Next: Find Out: When people say that building wealth is a long game, they mean forever. Ensuring that you and your loved ones are financially secure takes its own special type of planning to guarantee that you benefit monetarily from your decisions and avoid seller's remorse. Here are four things retirees should never sell to build their savings, according to two experts in their fields. But if you're still looking to build your savings, take a look at the things retirees should sell. A house is often the first thing people think about selling when faced with savings struggles in retirement. Accessing your home's equity could provide much needed retirement funds, but it can also result in expensive moving costs, concerns about aging in place and getting a fair price amid volatile housing and rental markets. 'While [selling your primary residence] can make sense in some situations, it's important to weigh the potential downsides,' said Chad Gammon, certified financial planner (CFP), owner of Custom Fit Financial. 'A retiree who owns their home might underestimate the cost of purchasing a new home or renting. Additionally, the expense of preparing a home for sale can quickly add up without increasing the home's value.' For You: If you have debt or are still earning income when you retire, it might be a good idea to hold on to your life insurance policy, which can also help with things such as estate taxes, burial costs, unanticipated expenses and a means of ensuring that your children and grandchildren will be taken care of financially. 'While it can be tempting to surrender these policies for their cash value, it's essential to understand the broader benefits they provide,' said Chris Heerlein, CEO of REAP Financial, an SEC-registered investment advisory firm specializing in retirement and wealth management. 'Beyond the obvious death benefit, permanent policies can offer a tax-advantaged source of liquidity through policy loans or withdrawals, which can be a big help during unexpected expenses. 'I've worked with retirees who faced medical emergencies and were able to use their life insurance policies as a financial safety net,' Heerlein said. 'Selling the policy outright would have left them without this crucial backstop, forcing them to dip into retirement savings or take on debt.' Heirlooms hold sentimental value and are part of your legacy. Selling them may strain relationships, so 'before selling these items, it's a good idea to have a conversation with family members, as someone else may value and enjoy them,' said Gammon. 'Plus, you may later regret parting with the items.' The same goes for collectibles. Over time, the value of things like artwork, antiques, vintage cars and memorabilia collections can increase significantly. Impulsively selling valuable items during a time of financial need might cost you and yours a lot of money down the road. Determine the value of heirlooms and collectibles by having them appraised, and pass them down to family members or set condition for their transfer in your will. There are exceptions, but typically, your car doesn't add much to your wealth, and chances are, you won't get much back for it should you decide to sell. Although many Americans remain active as seniors, not having to commute and enjoying a quieter home life is what retirement is all about. Selling off one of multiple vehicles is a good idea in retirement, but it might be smart to hang on to your lone reliable car and avoid the inconvenience and expense of public transportation and ride-sharing options in your area. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 9 Downsizing Tips for the Middle Class To Save on Monthly Expenses 3 Reasons Retired Boomers Shouldn't Give Their Kids a Living Inheritance (And 2 Reasons They Should) This article originally appeared on 4 Things Retirees Should Never Sell To Build Their Retirement Savings 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
Newsweek
10-06-2025
- Business
- Newsweek
Social Security Claims Skyrocket
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Claims for Social Security benefits have skyrocketed since the beginning of 2025, data from the Social Security Administration (SSA) reveals. In fiscal year 2024, the SSA processed 3.4 million retirement benefit claims. So far this year, individual retirement claims are up 13 percent compared to the same period last year, amounting to over 276,000 additional claims, according to analysis by the Urban Institute, a non-partisan think tank. Why It Matters Social Security payments are sent to around 70 million Americans every month. If this trend continues, the SSA is on pace to receive nearly 4 million online retirement claims in fiscal year 2025—an increase of more than 525,000 claims, or 15 percent over 2024. That would mark a sharp rise, given that from 2012 to 2024, the average annual increase was 3 percent, the Urban Institute reported. What To Know The rise in claims could be attributed to several reasons. The most significant change to Social Security benefits this year has been the passage of the Social Security Fairness Act. "This eliminated the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) from the Social Security Act," Chad Gammon, owner of Custom Fit Financial, explained to Newsweek, "meaning that they now qualified for Social Security benefits." The WEP and GPO reduced Social Security benefits for public-sector workers who didn't typically pay Social Security taxes. WEP affects their own benefits, even if they also worked jobs that did contribute. GPO reduced spousal or survivor benefits. Some 2.8 million people were impacted and became eligible for full Social Security benefits earlier this year. Stock image/file photo: A Social Security card with a Treasury check and U.S. Dollars. Stock image/file photo: A Social Security card with a Treasury check and U.S. Dollars. GETTY That bill was passed in early January and coincides with the uptick in applications. In January, 409,867 new claims were made for benefits, up from 277,490 in December 2023. It is the only time since currently published records, dating back to 2016, that more than 400,000 people have applied for benefits in a single month. This momentum of new applications has somewhat tapered off, although new benefit claims are still higher than usual. In February, 334,000 new claims were made, and 384,000 in March. Other factors may have also had a hand in why Social Security applications have gone up. The Trump administration's wide-ranging changes, including staffing cuts and new application rules, may have prompted more people to claim benefits, according to an analysis by the Urban Institute. Former SSA Commissioner Martin O'Malley has frequently warned that changes at the agency, mandated by the Department of Government Efficiency, could "drive Social Security into a total system collapse." Former acting commissioner Leland Dudek, who led the agency between January and May, said "fearmongering has driven people to claim benefits earlier." The ongoing retirement of Baby Boomer Americans, which has expanded the pool of people eligible for retirement benefits, along with improved lifespans, also likely contributes to the rise in claimants. What People Are Saying The SSA said in an April 29 press release: "SSA has made significant strides in implementing the Social Security Fairness Act, having paid over $14.8 billion in retroactive payments to more than 2.2 million individuals affected by the Windfall Elimination Provision and Government Pension Offset." The Urban Institute said in its analysis: "Looking ahead, it will be important to monitor whether changes in the SSA's administrative budget and the public's trust that Social Security will continue to provide promised benefits will affect the number of retirement claims and when people file." What Happens Next Social Security actuaries have long warned that the program is facing a projected shortfall, which could be exacerbated by a higher number of claimants. The trust fund, which, along with payroll taxes, helps pay for current retirement benefits, could be depleted by 2033, after which the system would be able to pay only 77 percent of scheduled benefits, according to a 2024 report by the Social Security Board of Trustees. "A surge in Social Security claims would have an immediate impact as it would add more total beneficiaries sooner than expected and draw on the fund sooner than expected," Gammon explained.
Yahoo
02-06-2025
- Business
- Yahoo
7 Tips to Support Aging Family Members When You Live Far Away — Without Going Broke
According to a recent survey by Choice Mutual, one in three Americans lives more than 100 miles away from their parents. When it comes to caregiving duties for elderly parents, 70% noted that the biggest concern was the emotional toll and burnout. Discover More: Find Out: It's also worth noting that for 67.59% of Americans, the next most significant concern is financial strain, as the idea of financially supporting parents can be stressful. How can you help your parents financially as they age without putting too much strain on your own bank account? Here are seven tips from the experts to ensure that you don't go broke and burn out in the process of caring for your elderly parents who live far away. 'The first step is to have a conversation on the topic with your parents,' said Chad Gammon, a CFP and the owner of Custom Fit Financial. 'That way, you're on the same page with your parents on any expectations or responsibilities.' You want to have crucial discussions with your parents early on in the process so that you're not on different pages when it comes to expectations. The Choice Mutual piece also mentioned that even though discussing finances can be challenging, it's encouraged that you do so before your parents have their ability to make decisions hindered by cognitive or physical factors. Stoy Hall, a CFP and founder of Black Mammoth, recommends starting with transparency instead of making assumptions. He stressed that you don't want to wait until a health crisis forces you to have this discussion. Here are some of the subjects you'll want to discuss with your parents: How much savings do they have? If they have any debt. Policies and pensions that you should know about. Their bills and how they're being managed. Hopefully, your parents are willing to share financial information so that you can stay informed. If you're overwhelmed, you can also work with a financial professional who will help you make sense of everything. Gammon advises setting boundaries and ensuring that you don't entangle your finances. You want to set clear boundaries early on so that your parents don't try to ask you to co-sign a loan or to open up a joint bank account. Hall added, 'You've got your own bills, your own kids maybe, and your own retirement goals. So set the boundaries now.' Agreeing to help financially with everything can be overwhelming and may lead to future resentment. If you live far away, you may also want to set boundaries on visitations and how often you can make it down. The Choice Mutual report found that approximately half of Americans are concerned about how providing elderly care duties could affect their careers and work-life balance. Kelsey Simasko, an attorney at Simasko Law, urges that you become as tech-savvy as possible if you're caring for parents who live far away. If you're managing someone's finances from miles away, you'll want to be comfortable emailing, scanning documents and using online banking tools. Here are a few key ways you can use technology to help with the care: Set up auto-pay for recurring bills if they're forgetful. Use refill services for prescriptions. Explore remote monitoring tools for health or home safety. While technology won't replace the human touch, it will buy you some time and sanity if you live far away. You don't want to be stuck driving back and forth every single weekend to pay bills and manage accounts. You also don't want to have your parents fall behind on bills because they forgot to pay, which could add to the financial strain. You want to remember that you're not alone when it comes to caring for elderly parents. Hall recommends checking out options such as local senior aid programs, Medicaid eligibility, low-income utility assistance or Meals on Wheels. These services can help you save some money and provide assistance when you're not able to make it. You'll want to try to get your other siblings and relatives involved to divide the load when caring for parents who live far away. You can decide who will manage appointments, who is responsible for check-ins, and who will help cover the bills. The worst-case scenario is when one person carries the entire load because this can be financially and emotionally draining. Simasko shared that you want to enlist some assistants who live close by. Asking for help is hard, but if a trusted neighbor can send you pictures of bills to be paid or investments about to come due, it will make life a lot easier in the long run. If you don't have any siblings, you can build a community through trusted neighbors, church groups and other associations. According to an annual report from the FBI, older Americans lost almost $4.9 billion to fraud in 2024, with an average loss of $83,000. You want to ensure that your parents have the right financial tools and resources on their side, so they don't fall victim to scams and their bills are covered. Hall suggested that if your parents have equity in a home, a HELOC or downsizing could be the logical next step. If they have retirement assets, consider consulting a professional to analyze their withdrawal strategy. You want to ensure that all financial tools are utilized so that you don't spend your savings on trying to help your parents because you have to start thinking about your own retirement. More From GOBankingRates Warren Buffett: 10 Things Poor People Waste Money On 4 Affordable Car Brands You Won't Regret Buying in 2025 This article originally appeared on 7 Tips to Support Aging Family Members When You Live Far Away — Without Going Broke
