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Yahoo
4 days ago
- 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
Yahoo
28-05-2025
- Business
- Yahoo
Don't Check Your Stock Portfolio on Mondays
If you've ever peeked at your investment portfolio on a Monday morning and felt your stomach drop, you're not alone. For You: Find Out: Mondays have a reputation for being volatile on Wall Street, and it's not just because people are groggy from the weekend. Financial experts agree that checking your portfolio on Monday can stir up unnecessary stress and, worse, lead to rash investment decisions. Here's why it's smarter to wait, and how long-term investors can use this insight to stay calm and committed. Unlike the markets, the news cycle doesn't take weekends off. From corporate earnings leaks to geopolitical events, information builds up over the weekend and is quickly digested by investors come Monday. The result? Market overreactions. 'Monday can typically be a chaotic one. With the markets closed over the weekend, the news continues to give out information that investors break down, and it can lead to swings on Monday,' explained Chad Gammon, CFP and owner of Custom Fit Financial. 'Checking your portfolio on a Monday is like stepping on the scale after a weekend; you probably won't like what you see,' added Andrew Latham, CFP with SuperMoney. 'But it's mostly bloat that disappears by midweek if you stick to your plan.' That makes Monday one of the worst days to judge your portfolio's true health. One or two red numbers might not mean your financial goals are in jeopardy. It may just mean that the market is reacting to the latest headlines. 'Mondays are known for market jitters, and there's even something called the Monday Effect, where stocks often dip or behave erratically at the start of the week, possibly due to weekend news or nerves, or companies releasing bad updates after markets close on Fridays,' said Nicole Carlon, CFP, CDFA, of WiseOak Wealth, LLC. 'Whatever the reason, checking your portfolio on a Monday can give you an unnecessarily negative picture,' she added. Be Aware: Frequent portfolio check-ins may seem responsible, but they can backfire, especially if you're doing it on a day like Monday, when emotions and volatility are high. 'Checking in frequently on your portfolio can lead to some emotional reactions that hurt you financially in the future with impulse decisions,' said Gammon. 'You should consider reviewing your investments on a monthly or quarterly basis at the most to help avoid impulse decisions.' 'I've seen people panic over a red Monday screen, only to watch things bounce back within a day or two,' added Carlon. 'If you're investing for the long haul, reacting to early-week swings can do more harm than good.' The key? Don't panic. The stock market has natural ups and downs, which are often exaggerated early in the week. Stick to your strategy instead of reacting to temporary turbulence. Interestingly, there's no one-size-fits-all when it comes to portfolio check-ins. Some investors actually benefit from seeing daily swings. 'This may sound counterintuitive, but some clients check their portfolios daily. This actually alleviates some of their fears, since they get comfortable with the day-to-day swings,' explained Jake Falcon, CRPC, founder and CEO of Falcon Wealth Advisors. 'If you only check it on Mondays, it can actually induce more fear.' But whether you check it frequently or on a structured schedule like quarterly reviews, the real danger comes from acting on emotion. 'We encourage clients to focus on their financial plan, not the headlines. Your portfolio is a tool to help you reach your goals,' said Falcon. 'Most importantly, we advise our clients to not let their emotions dictate their investment decisions. This is where having a trusted advisor can make all the difference.' Carlon added that it's important to check on your investments intentionally. 'Set time aside every few months to review your portfolio in the context of your long-term goals, not in response to a single rough morning. In the meantime, use Mondays for things like reviewing your budget or setting financial goals, not stress-scrolling your account.' Unless you thrive on stress, Mondays are probably the worst day to check your portfolio. Between weekend news reactions and emotional market swings, you're more likely to make impulsive decisions that derail your long-term goals. So what should you do instead? Develop a review habit that works for your mindset and stick to a sound investment plan. More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? The New Retirement Problem Boomers Are Facing This article originally appeared on Don't Check Your Stock Portfolio on Mondays
Yahoo
24-05-2025
- Business
- Yahoo
6 Mistakes Boomers Are Making With Their Money in the Trump Economy
As economic uncertainty grows months into President Donald Trump's second term, many baby boomers are making money moves that could jeopardize their retirement. Consider This: Find Out: From overreacting to market volatility to underestimating healthcare costs, these financial missteps are often fueled by short-term thinking or outdated advice. Here are six mistakes boomers are making with their money in the Trump economy. Christopher Stroup, the founder and CEO of Silicon Beach Planning, said outdated investment strategies could cause some boomers to make financial missteps. 'Boomers must shift from a 'set it and forget it' mindset to proactive financial planning,' Stroup said. 'The next decade will bring market fluctuations, tax policy changes and shifting retirement landscapes.' He explained, 'Many boomers are holding too much cash, assuming it's 'safe,' while inflation erodes their purchasing power. Others are clinging to outdated investment strategies, such as relying on bonds or dividends without adjusting for market volatility.' Experts said not saving enough for retirement and depending on alternative payment methods could hurt boomers. 'They have higher credit card debt than previous generations,' explained Chad Gammon, owner of Custom Fit Financial. Read Next: Recent stock market fluctuations in response to Trump's tariffs have unsettled many investors, particularly baby boomers who hold substantial equity. Some boomer investors are shifting towards conservative investments. While caution is understandable, it's crucial to avoid panic-driven decisions that could cost boomer investors long-term growth. 'It's easy to get caught up in near-term uncertainty and market volatility,' said Tom Buckingham, chief growth officer at Nassau Financial Group. 'But it is risky to make significant changes to your long-term financial plan and investment strategy based on the latest headlines.' According to recent research by Indeed Flex, an online marketplace for flexible and temporary work, over one-third of older adults are unsure whether they will retire this year due to the current economy and inflation. Researchers said, 'With only 10% retired, the three highs — the cost of living, housing prices and healthcare costs — may force the aging population to rethink retirement. Factor in economic uncertainty with Trump's proposed new tariffs on imports; boomers may need to delay retirement even longer.' For some boomers, delaying retirement is the smart move. However, older adults should consider whether delaying retirement aligns with their health and personal goals. Prices for everyday items could increase this year due to Trump's tariffs. 'Some near-term measures of inflation have recently moved up,' said Federal Reserve Chairman Jeremy Powell at a recent press conference. 'We see this in both market- and survey-based measures, and survey respondents, both consumers and businesses, are mentioning tariffs as a driving factor.' Erika Kullberg, a personal finance expert, said boomers should reassess their budgets to account for inflation. She also suggested delaying Social Security to maximize benefits and exploring tax-efficient investment strategies. 'Beyond that, things like downsizing to reduce housing costs, cutting unnecessary expenses and diversifying investments to include assets that tend to perform well in different economic conditions can help,' Kullberg said. Trump's proposal to eliminate federal taxes on Social Security benefits would primarily benefit wealthy older adults, since most middle-class taxpayers don't pay taxes on Social Security. Experts predict eliminating the Social Security tax could deplete the trust fund that pays for benefits and lead to a 30% decrease in benefits overall. 'Take a deep breath, stay calm and remain disciplined and well-diversified,' Buckingham said. 'Consider including low-risk investments and products as part of a well-rounded investment portfolio. Consider supplementing Social Security and pension benefits with annuities that guarantee income benefits for life.' The Trump administration said the Department of Government Efficiency (DOGE) proposals to eliminate 'waste and fraud in entitlement spending' would not reduce Social Security, Medicare or Medicaid benefits. However, experts said retirees should plan for emergency savings or explore supplemental insurance options to buffer against unforeseen events. 'Boomers are not taking sufficient notice of alternative funding strategies for healthcare,' said Neal Shah, CEO of CareYaya, an online caregiving platform serving older adults with dementia. 'With potential modifications to Medicare on the horizon, many aren't preparing for the costs of healthcare.' Shah explained, 'Health savings accounts (HSAs) and long-term care insurance should be priority considerations, as out-of-pocket healthcare expenses rise faster than general inflation.' 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 Says Trump's Executive Order To Lower Medication Costs Has a 'Real Shot' -- Here's Why 10 Genius Things Warren Buffett Says To Do With Your Money Sources PR Newswire, Boomers Are Forced to Rethink Retirement The White House, FACT CHECK: President Trump Will Always Protect Social Security, Medicare This article originally appeared on 6 Mistakes Boomers Are Making With Their Money in the Trump Economy 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
18-05-2025
- Business
- Yahoo
What Gen X Needs To Know About Social Security but Forgets To Ask
Members of Generation X, ages 45 to 60, are the next in line to retire after boomers (and some already have). However, this scrappy, often-overlooked generation came of age before the internet and tends to put their heads down and focus on the work at hand, forgetting to ask key questions about their retirements. Find Out: Read Next: Experts offered Gen Xers advice on Social Security questions they may have forgotten to ask, but need to know, and soon. Gen Xers tend to ask if Social Security will still exist, but that's not quite the right question, according to Dr. Preston Cherry, CFP and founder at Concurrent Wealth Management. What they should be asking is, 'How might the system adjust, and how do I build a plan that bends with it?' he explained. Most Gen Xers don't realize that 'even if no changes happen by the time the trust fund reserves are projected to hit depletion around 2034, Social Security wouldn't vanish,' Cherry said. 'It would likely pay about 80% of the promised benefits.' Instead of freezing in fear, he urged Gen Xers to 'start flexing their plans now.' This means assuming a possible cut while keeping an eye on potential tax tweaks or benefit formula adjustments Congress could make. 'It's about staying nimble, not paralyzed.' Be Aware: Gen Xers are also often surprised that up to 85% of their Social Security benefits can be taxable if they cross certain income thresholds, Cherry said. For couples, once combined income — which includes adjusted gross income (AGI), tax-free interest and half their benefits — goes over $32,000 but no higher than $44,000, half of it becomes taxable. At more than $44,000, they can be taxed on up to 85% of their benefits, he explained. 'What catches people off guard is how investment income from brokerage accounts can push them into these brackets fast.' Cherry said that 'smart withdrawal sequencing,' like pulling from Roth or taxable accounts first, can help control taxes. Way too many Gen Xers wait until their early 60s to think about Social Security, Cherry warned. 'I tell them, don't do that to yourself. Start running the scenarios in your early 50s, when you still have time to adjust your savings, tax strategies and lifestyle.' They also often forget how the Social Security timeline links to Medicare, he said. 'You still need to enroll in Medicare at 65 to avoid penalties, even if you hold off on claiming Social Security until later.' Another thing Gen Xers miss is coordinating benefits with a spouse, Cherry said. One person in the couple may want to grab benefits at 62 and the other at 70, but they haven't talked through how that impacts survivor benefits or taxes down the line. 'Social Security claiming isn't a one-and-done decision,' he said. On the topic of spouses, Chad Gammon, a CFP and the owner of Custom Fit Financial, said, 'I think most people do not realize that an ex-spouse might be eligible for benefits.' If you were married for 10 or more years, you do not remarry before you start collecting Social Security benefits, you're 62 or older and your ex-spouse is eligible for Social Security, you may be eligible to claim spousal Social Security benefits. Most Gen Xers also do not know how to check their earnings records, Cherry said. 'They remember they used to get a paper copy statement and wonder why they don't get those anymore.' Now, you can just go online to check at Gen Xers should not rely solely on Social Security, but focus on strategies before Social Security starts, such as Roth conversions and how that can help reduce future required minimum distributions later in retirement, Gammon said. 'Starting Social Security early and then trying to do a Roth conversion can be problematic,' he said. For one thing, Roth conversions count as income, so converting large amounts from a traditional IRA to a Roth IRA could trigger that 85% tax on your Social Security benefits mentioned earlier. But it can also affect the price of your Medicare premiums, even if you aren't taking that benefit yet, depending upon which Part you're paying for (part B or D). Though no one can predict how long they'll live, to move beyond fear of outliving your savings, Yehuda Tropper, CEO of Beca Life Settlements, recommended calculating 'approximately what your Social Security monthly income will be, what your bare-minimum expenses will be and what the gap is.' The gap is what you need to worry about in the event of a market crash that affects your retirement accounts. 'Once you know this, you can plan for having appropriate cash reserves and a tolerable level of risk in your portfolio,' Tropper said. For example, a Gen Xer might project a $3,000 monthly Social Security benefit at their full retirement age of 67. If their bare-minimum monthly expenses are $4,000, the $1,000 gap represents the income they'd need from savings during a downturn to maintain their essential needs without selling investments at a loss. 'By having sufficient cash reserves to cover, say, 12 to 36 months of this $1,000 gap ($12,000 to $36,000), they could ride out a significant market dip without jeopardizing their long-term portfolio.' Most importantly, create a plan, ideally with a financial advisor, so that you're not caught off guard by any surprises when it's time to retire. More From GOBankingRates What $1 Million in Retirement Savings Looks Like in Monthly Spending These Cars May Seem Expensive, but They Rarely Need Repairs 5 Little-Known Ways to Make Summer Travel More Affordable 5 Cities You Need To Consider If You're Retiring in 2025 Sources Dr. Preston Cherry, Concurrent Wealth Management Chad Gammon, Custom Fit Financial Yehuda Tropper, Beca Life Settlements This article originally appeared on What Gen X Needs To Know About Social Security but Forgets To Ask Sign in to access your portfolio
Yahoo
09-05-2025
- Business
- Yahoo
What $1 Million in Retirement Savings Looks Like in Monthly Spending
Building up a nest egg of $1 million in retirement savings might sound like a fortune, but it's within reach of many Americans who start saving and investing early in their careers. For example, if you invest 15% of a $60,000 salary into a retirement account for 30 years, earning an average of 8% in annual returns, you'd retire a millionaire. That said, $1 million doesn't go as far as it used to. While it can be a comfortable retirement, it still requires careful budgeting to make sure your money lasts the rest of your lifetime. Find Out: Learn More: 'Retiring with $1 million in savings is totally possible today, but it takes thoughtful planning,' said Amber Schiffert, co-founder of Tara Wealth. Here's what $1 million in retirement savings could look like on a monthly basis in retirement. There are a few ways to approach drawing down your retirement savings so you have enough to live comfortably. One strategy is the 4% rule, where you withdraw 4% of your portfolio each year, adjusting for inflation. With $1 million in retirement savings, 'using the 4% rule, that gives you about $40,000 a year to safely withdraw from your investments,' Schiffert said. That translates into about $3,333 per month, although taxes might reduce that amount, depending on your retirement accounts. Regardless, that amount alone may be enough for some retirees, such as those who have paid off their mortgage and car loans. Retiring with $1 million is possible, according to Chad Gammon, CFP, owner of Custom Fit Financial. 'I've seen people retire with even less than $1 million … They typically have very low living costs that are as low as $40,000 per year or lower. They might also work until age 65 or 70 to maximize their Social Security with benefits around $20,000 to $40,000 per year. They also typically do not have debt and enjoy the simple things in life,' Gammon said. However, not everyone can live on $3,333 per month. While other sources of income like Social Security might help, if you're trying to simply calculate what $1 million in retirement savings gets you, another option to consider is spending down your nest egg, rather than treading water with the 4% rule. For example, if you wanted to pull out $5,000 per month from your retirement savings and the balance still earned 4% per year after taxes, that would last you approximately 27 years (not factoring in inflation). That could be enough for many, although some might end up outliving this time frame. Dropping the withdrawal slightly to, say, $4,500 per month would make your savings last longer. 'To make sure this works for you, you'll also want to ensure your other sources of income such as Social Security, rental income and pensions combined with your investment withdrawals can support your lifestyle. And don't forget to account for rising healthcare costs and inflation. If overlooked, these two major factors can significantly impact your financial security and retirement portfolio,' Schiffert said. Read Next: Suppose you decide to draw down your retirement savings and took out $4,500 per month. That, combined with the average Social Security monthly benefit of nearly $2,000, would leave you with around $6,500 pretax. Post-tax amounts can vary significantly depending on your situation, but let's assume for simplicity in this scenario your blended federal and state tax rate is 15%, leaving you with about $5,525 per month. Using the 50/30/20 budget rule, that means 50%, or $2,762.50, could go toward your needs. That's much more feasible if you don't have monthly rent or a mortgage. Then, 30%, or $1,657.50, could go toward your wants, such as eating out and travel. Depending on your lifestyle, that 'wants' bucket could go quickly, but if you roll some over from month to month, it could be enough to take some significant trips in retirement. Lastly, 20%, or $1,105, could go toward savings. Since you're already pulling from retirement savings in the first place, this probably isn't going to be a long-term savings bucket. Instead, you might think of it as more of an unexpected expense category, like a doctor's bill that exceeds your needs budget or an unplanned home repair. As you can see, $1 million doesn't necessarily go all that far in retirement, but it's possible to still set yourself up for success, especially if you can supplement with other income sources, like Social Security, and plan your budget carefully. 'My top tip would be to delay Social Security as long as possible. Once you are past your full retirement age and wait one year, it is like getting an 8% raise. An example would be delaying from age 67 to 68. I ask clients how often they received a 8% raise at work and it is not common, and it resonates to wait,' Gammon said. And if you're not sure where your retirement savings stand or how to plan effectively, meeting with a financial advisor can help. 'It can also be a good idea to get low-cost financial help from hourly for flat fee advisors that can help create a dynamic withdrawal strategy to adjust on a yearly basis. You would spend less in a down market, and take out more after a good market year. The only thing I would note is that you have to be able to adjust your budget and that can be difficult for people,' Gammon said. More From GOBankingRates Mark Cuban: Trump's Tariffs Will Affect This Class of People the Most How Far $750K Plus Social Security Goes in Retirement in Every US Region How To Get the Most Value From Your Costco Membership in 2025 12 SUVs With the Most Reliable Engines Sources Amber Schiffert, Tara Wealth Chad Gammon, Custom Fit Financial This article originally appeared on What $1 Million in Retirement Savings Looks Like in Monthly Spending
