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Yahoo
04-05-2025
- Business
- Yahoo
5 Money Habits That Hurt Your Retirement, According to Experts
Planning for retirement isn't just about how much money you make. It's about how you manage it over the years. Certain financial habits can quietly sabotage your long-term goals even if you earn a great salary. Read More: Find Out: We asked financial experts to share the most common mistakes they see people make that can delay or even derail retirement plans. From lifestyle upgrades to poor car-buying decisions, these habits may be more familiar than you think. A car is often one of the biggest purchases we make, but how we buy it can impact our financial future more than we realize. 'If you choose to always lease a car, you will always have a car payment,' said Melanie Musson, a finance expert with 'You'll never reach a point where your car is paid off and you can take what you were making in a payment and put it toward investing.' Musson broke down a hypothetical scenario where if you leased a $60,000, you may enjoy the ride but after three years, you'd walk away with nothing. On the other hand, if you buy a $30,000 used car with $600 monthly payments, you'll eventually own the vehicle outright, and you can use the money you were paying toward another expense or savings goal. 'Pay it off in five years and redirect that $600 into investments instead,' said Musson. 'Over 20 years, and with an average 8% return rate, that decision alone could grow into $100,000 to $300,000, depending on market performance.' See More: Getting a raise is exciting, but it can also be dangerous if it fuels unchecked lifestyle upgrades. 'Lifestyle creep is sneaky because it doesn't feel like overspending, it feels like celebrating success,' said Melissa Cox, CFP and owner of Future-Focused Wealth. 'A raise turns into a nicer car, a bigger house, or just more DoorDash orders… but none of it gets funneled toward the future,' she added. It's easy to fall into the trap of spending every new dollar you earn. But without increasing your savings rate, your expenses can outpace your retirement contributions. That gap only gets harder to close over time. Your home can be one of your most valuable assets. Or, it can be a financial setback depending on how you handle it near retirement. 'One thing that can hurt your retirement is not making the best real estate moves,' said Adam Hamilton, CEO of REI Hub. 'Maybe you're retiring soon, but decide to buy a more expensive home and take on a new mortgage just as you exit the workforce. Or maybe you downsize, but don't time it well and end up with a much higher mortgage rate than what you previously had.' Hamilton also points out missed income opportunities. 'If you already own a vacation home, consider renting it out during the months you're not using it. It could generate a lot of income that supports your retirement lifestyle.' Whether to upgrade, downsize, or rent out housing decisions should be part of your long-term financial plan. Time is one of your most powerful tools when it comes to saving for retirement. But too many people wait until later in life to get serious. 'The biggest mistake I see is people not starting early,' said Jason Butler, personal finance blogger at My Money Chronicles. 'I know what it's like to feel like you're drowning in debt. Student loans were a huge burden for me. But even while I was paying those down, I made it a point to start saving something, even if it was just $50 a month.' Butler's strategy involved combining a consistent debt repayment plan with automated contributions to retirement savings accounts. He also made sure to avoid using credit too much so as not to add even more payments that could drain his financial ability to save. 'I used windfalls like tax refunds or side hustle income to pay down debt faster and still made room in my budget for retirement investing,' he said. 'The key is to start where you are and stay consistent.' If you're feeling behind, it's not too late to start. But the longer you wait, the more aggressive you'll need to be with saving and investing. Even if you do everything right during your working years, such as saving consistently, investing wisely, and avoiding debt, retirement requires just as much strategy. 'Too many retirees treat their nest egg like it's never going to run out,' said Cox. 'Without a withdrawal strategy, people end up pulling too much too soon or ignoring tax implications.' A proper withdrawal plan can help you avoid unexpected tax bills, Medicare premium hikes, or even running out of money. Working with a financial advisor or using a 'bucket strategy' — dividing retirement funds into short-term, mid-term, and long-term buckets — can provide peace of mind. Small choices today, like the car you drive, the house you buy, or how you handle a raise, can ripple through the decades into your retirement years. But with awareness and smart planning, you can sidestep these costly habits and create a retirement that's both possible and enjoyable for you. More From GOBankingRates 6 Used Luxury SUVs That Are a Good Investment for Retirees How Far $750K Plus Social Security Goes in Retirement in Every US Region 7 Overpriced Grocery Items Frugal People Should Quit Buying in 2025 12 SUVs With the Most Reliable Engines Sources: Melanie Mussion, Clearsurance Melissa Cox, Future-Focused Wealth Adam Hamilton, REI Hub Jason Butler, My Money Chronicles This article originally appeared on 5 Money Habits That Hurt Your Retirement, According to Experts Sign in to access your portfolio
Yahoo
30-04-2025
- Automotive
- Yahoo
Don't Buy a Car in This Month of the Year
Buying a car takes planning. And if you buy a car during the wrong month, it could cost you. 'April is the worst month to buy a car,' Melanie Musson, an auto industry expert with wrote in an email. April is often viewed as a seller's market for both used and new vehicles. As people get their tax refunds, they have more money to spend and are more likely to go out car shopping during warmer weather. CarEdge and Carversal also identified April as the worst month to buy a car. Dealerships often inflate their prices, and buyers have less wiggle room for price negotiation with sellers. Read Next: Check Out: Read on for more details about why buying a car in April could cost you more than you expect. Also see eight used cars that will be great deals in 2025. 'Even the worst procrastinators will be getting their tax refunds in April or close to it,' Musson said. According to the IRS, the average tax refund was $3,055 as of April 11, 2025 — enough to make a sizable dent in a down payment. 'When people have money, they tend to spend it. So, people take their tax refunds and use them as a down payment on a new car,' she explained. 'When demand is high, dealerships have little incentive to reduce prices.' Explore More: Most car shoppers prefer to do their car shopping when the weather is nice and the days are longer. 'The spring months bring warmer weather, and people are more likely to head out and shop than in the winter, when staying in their warm homes is more appealing,' Musson explained. The longer days and improved road conditions make test driving more enjoyable, and for many, it's more motivating to shop when they don't have to deal with cold winter weather. A 2025 Cox Automotive report also showed that used-vehicle sales climbed for the fifth consecutive quarter, with much of that momentum building during the spring selling season. 'In April and May, people start to plan their summer vacations and think that it may be time for an upgraded car for their road trips,' Musson said. A survey by The Vacationer found that nearly 75% of Americans intend to take at least one road trip this summer, accounting for nearly 196 million people. And when there's more demand, there's less room to negotiate. 'Sellers don't reduce prices on items that people are happy to pay full price for. That's bad business,' Musson explained. During high-demand seasons like spring, dealerships and individual sellers are less inclined to offer discounts or incentives. With more shoppers on the lot — many with tax refunds or planning summer travel — sellers know they don't have to work as hard to close a deal. More From GOBankingRates 6 Used Luxury SUVs That Are a Good Investment for Retirees 4 Affordable Car Brands You Won't Regret Buying in 2025 7 Overpriced Grocery Items Frugal People Should Quit Buying in 2025 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth Sources Melanie Musson, CarEdge, 'Why April Is the Worst Time to Buy a Used Car (But a Great Time to Sell).' Carversal, 'Why April Is the Worst Month to Buy a Car – Avoid These Price Traps.' IRS, 'Filing season statistics for week ending April 11, 2025.' Cox Automotive, 'Spring Optimism Boosts U.S. Automobile Dealer Sentiment, Despite Weak Profits, Growing Costs.' The Vacationer, 'Summer Travel Survey 2025 – 82% to Travel (Down 3% YoY), 75%+ to Road Trip, 52% to Fly on a Plane, 25% to Travel Internationally.' This article originally appeared on Don't Buy a Car in This Month of the Year Sign in to access your portfolio
Yahoo
30-04-2025
- Automotive
- Yahoo
Don't Buy a Car in This Month of the Year
Buying a car takes planning. And if you buy a car during the wrong month, it could cost you. 'April is the worst month to buy a car,' Melanie Musson, an auto industry expert with wrote in an email. April is often viewed as a seller's market for both used and new vehicles. As people get their tax refunds, they have more money to spend and are more likely to go out car shopping during warmer weather. CarEdge and Carversal also identified April as the worst month to buy a car. Dealerships often inflate their prices, and buyers have less wiggle room for price negotiation with sellers. Read Next: Check Out: Read on for more details about why buying a car in April could cost you more than you expect. Also see eight used cars that will be great deals in 2025. 'Even the worst procrastinators will be getting their tax refunds in April or close to it,' Musson said. According to the IRS, the average tax refund was $3,055 as of April 11, 2025 — enough to make a sizable dent in a down payment. 'When people have money, they tend to spend it. So, people take their tax refunds and use them as a down payment on a new car,' she explained. 'When demand is high, dealerships have little incentive to reduce prices.' Explore More: Most car shoppers prefer to do their car shopping when the weather is nice and the days are longer. 'The spring months bring warmer weather, and people are more likely to head out and shop than in the winter, when staying in their warm homes is more appealing,' Musson explained. The longer days and improved road conditions make test driving more enjoyable, and for many, it's more motivating to shop when they don't have to deal with cold winter weather. A 2025 Cox Automotive report also showed that used-vehicle sales climbed for the fifth consecutive quarter, with much of that momentum building during the spring selling season. 'In April and May, people start to plan their summer vacations and think that it may be time for an upgraded car for their road trips,' Musson said. A survey by The Vacationer found that nearly 75% of Americans intend to take at least one road trip this summer, accounting for nearly 196 million people. And when there's more demand, there's less room to negotiate. 'Sellers don't reduce prices on items that people are happy to pay full price for. That's bad business,' Musson explained. During high-demand seasons like spring, dealerships and individual sellers are less inclined to offer discounts or incentives. With more shoppers on the lot — many with tax refunds or planning summer travel — sellers know they don't have to work as hard to close a deal. More From GOBankingRates 6 Used Luxury SUVs That Are a Good Investment for Retirees 4 Affordable Car Brands You Won't Regret Buying in 2025 7 Overpriced Grocery Items Frugal People Should Quit Buying in 2025 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth Sources Melanie Musson, CarEdge, 'Why April Is the Worst Time to Buy a Used Car (But a Great Time to Sell).' Carversal, 'Why April Is the Worst Month to Buy a Car – Avoid These Price Traps.' IRS, 'Filing season statistics for week ending April 11, 2025.' Cox Automotive, 'Spring Optimism Boosts U.S. Automobile Dealer Sentiment, Despite Weak Profits, Growing Costs.' The Vacationer, 'Summer Travel Survey 2025 – 82% to Travel (Down 3% YoY), 75%+ to Road Trip, 52% to Fly on a Plane, 25% to Travel Internationally.' This article originally appeared on Don't Buy a Car in This Month of the Year Sign in to access your portfolio
Yahoo
22-04-2025
- Business
- Yahoo
6 Ways Becoming an AARP Member Can Save Retirees Thousands in 2025
The arrival of the first AARP (American Association of Retired Persons) card invitation is almost a rite of passage in American society. While it may signal you have become a person of a certain age, you can actually join the association as young as 18, though some benefits don't kick in until you're older. Check Out: Read Next: For retirees, who are often living on a reduced income, the benefits of an AARP membership can be significant. Here are just a few of the ways you can use this membership to save thousands over time. According to Melanie Musson, a finance expert with 'The most valuable benefits are for essentials that retirees have to spend money on every month.' For example, if you still need to carry car insurance, AARP can help you pay lower rates and get discounts on car insurance. The average person can save around $577 per year on car insurance alone. 'The savings on insurance, phone service and groceries exceed the cost of membership,' Musson said. Find Out: AARP offers a variety of insurance types, from supplemental vision and dental insurance to supplemental Medicare health insurance plans offered through United HealthCare. Taking advantage of these insurance supplements can make sure you don't find yourself with pricey out-of-pocket expenses or long-term care when you really need it. Members also gain access to a variety of discounts and coupons on products, brands and services. For example, the website currently features a 20% off coupon for two pairs of Dr. Scholl's brand shoes and 15% off Goodyear brand tires. You can search by your ZIP code to get personalized discounts that meet your needs in local stores and businesses. Don't even think about booking travel without an AARP membership if you can help it — the website is full of offers with such deals as 35% off rental cars, hundreds of dollars off airfare and cruise packages. Not only do these various discounts mean your retirement funds can last longer, that means you can benefit from the continued earnings and compound interest as they grow over time, making what you have saved last longer, Musson pointed out. Retirement may seem like a simpler time in some ways because most people are no longer working, however, retirees may still find themselves needing financial advice. The most important consideration, Musson said, is that 'AARP specializes in senior citizens, and it has partnerships with banks and financial institutions that can directly advise seniors in a fiduciary capacity.' Additionally, AARP offers several workshops, like Foundation Finances 50+ and Money Matters. If two of you are retired, you can have one membership that gives benefits to you and a secondary member, such as a spouse. Musson recommended that you ask other friends and family members who have used benefits what has been most beneficial to them. Additionally, read through the benefits AARP offers and see which ones apply to your lifestyle. More From GOBankingRates 6 Used Luxury SUVs That Are a Good Investment for RetireesThese 10 Used Cars Will Last Longer Than an Average New Vehicle7 Overpriced Grocery Items Frugal People Should Quit Buying in 20254 Affordable Car Brands You Won't Regret Buying in 2025 This article originally appeared on 6 Ways Becoming an AARP Member Can Save Retirees Thousands in 2025
Yahoo
03-04-2025
- Business
- Yahoo
Should You Get Flood Insurance in 2025? Here's What Experts Say
Your home is the most important — and most expensive — thing you own. Unfortunately, many costly perils, like floods, threaten your investment. In fact, an inch of floodwater can cause as much as $25,000 in damage. For You: Read Next: Fortunately, insurance policies exist to help mitigate this risk. But should you buy flood insurance in 2025 when coverage prices are on the rise? We asked multiple experts this question — keep reading to learn if they think flood insurance is worth it. Also here are 10 high-flood-risk areas that people are still moving to. Expert opinion on our central question varied from 'it depends' to 'absolutely.' We broke their insights into three distinct camps below. Check Out: 'Flood insurance is the only way for a homeowner to protect their financial interest in their home and possessions if a flood damages or destroys their property. Homeowners should get flood insurance if their property is at risk of flooding,' said Melanie Musson, home insurance expert with Musson encouraged readers to check their risk on the Federal Emergency Management Agency (FEMA) website. Just enter your address and look at the map, which shows different levels of flood risk. 'You don't need flood insurance if your home is at no risk of flooding,' Musson added. 'You should carry flood insurance if you have a minimum risk of one flood in 100 years.' Greg Martin, president of Think Safe Insurance, encouraged readers to find out how much coverage would cost. 'You should always get a quote for flood [insurance], so you at least know how much the rate would be,' he said. 'Then, you can make an educated decision on whether or not the peace of mind of having the protection is worth it for you. Many people assume that it is very expensive, but it is often much more affordable than you expect.' E. Tyler Ardron, executive vice president of took a hard stance on this topic. 'Everyone — and yes, I mean everyone — should have flood insurance, regardless of whether you live in a designated flood zone. Forty percent of National Flood Insurance Program (NFIP) claims are from outside of high-risk flood areas, showing the value of flood insurance for everyone. While it may seem like an additional expense, it can protect you from the devastating financial impact of a flood and give you peace of mind.' You may not have a choice when it comes to buying coverage. 'Flood insurance is required by law if your home is in a high-risk flood zone and you have a federally backed mortgage,' Ardron explained. 'In my area, some home insurance companies are starting to require flood insurance — no matter what flood zone you are in — in order to have home insurance with that company. We will see if that spreads to more carriers or not,' said Martin, based in Brandon, Florida. Experts generally agree that getting coverage is relatively easy. 'If your community participates in the NFIP, you are automatically eligible for coverage. However, if your community does not participate, you would need to seek coverage through the private flood insurance market, where eligibility depends on the insurer's risk tolerance and underwriting criteria,' Ardron said. While you can likely obtain a policy for your property, coverage won't take effect immediately. 'There is a waiting period to be aware of, so you can't call the day before a big storm,' Martin explained. 'For National Flood Insurance policies, it is 30 days before coverage starts unless there is a loan transaction, like a mortgage closing. For private flood policies, it usually ranges between 10 and 14 days but varies by carrier.' Not every property will automatically qualify for flood insurance — especially if there is a history of flooding. 'For example, some homeowners in parts of Florida that have experienced devastating flooding twice in the past few years are having to make drastic changes to their homes, like putting their homes on stilts to qualify for flood coverage again,' Musson said. Plus, some homes may not qualify at all. 'Homes in violation of floodplain management laws, container homes, buildings entirely over water and buildings partially underground are some types of [properties] that may not be eligible for coverage,' Martin said. Insurers price their policies based on risk and consider coverage amount, property elevation level, flood mitigation measures in place, claims history and other criteria. 'Florida is one of the highest-risk and highest-cost areas for flood insurance because the elevation is low throughout the state and storm surges bring seawater that floods huge swaths of land,' Musson said. Ardron offered the following annualized flood insurance cost data: Average policy price: $1,400 Lower-cost policies: Start around $600 High-risk property coverage: Can exceed $10,000 There are some steps you can take to reduce the expense. 'If you are in a higher-risk zone, having an elevation certificate can help a lot. Also, if you are buying a house and the seller has an NFIP policy, getting a copy of their declarations page can help a lot with the rate on your new policy through NFIP,' Martin said. You bought flood insurance. Now what? 'Flood insurance can help protect homeowners financially from the impact of floods, but it does not physically protect your home,' Ardron added. 'All homeowners should research flood mitigation products and consult with a flood mitigation specialist or a Certified Floodplain Manager to determine the best way to protect their investment from flooding.' More From GOBankingRates Trump Tells Sean Hannity Why He Took Away One of America's Favorite Tax Cuts The New Retirement Problem Boomers Are Facing Salary Needed To Achieve the American Dream in the 50 Largest Cities 8 Common Mistakes Retirees Make With Their Social Security Checks This article originally appeared on Should You Get Flood Insurance in 2025? Here's What Experts Say Sign in to access your portfolio
