Latest news with #DougBoneparth
CNBC
30-05-2025
- Business
- CNBC
59% of working Americans fear Social Security will dry up—here's how to plan ahead
Millions of older Americans rely on Social Security to make ends meet. Their younger counterparts aren't confident they'll be able to do the same. Among nonretired Americans, 59% are worried that Social Security won't be available by the time they stop working, according to a recent survey from DepositAccounts. The program drying up would be a huge problem for millions of Americans. Currently, Social Security payments make up more than half the income for 40% of retirees, according to the Social Security Administration. The issue for the next generation of retirees is that the coffers are running low. At the current rate, unless Congress intervenes, the trust fund for retirees will be exhausted by 2033, at which point the government will only be able to pay out 79% of the scheduled benefits. "It's not that far away. We're creeping up on it," says Jaime Eckels, a CFP and partner at Plante Moran Wealth Management. "It's something that's on people's minds now more than it's ever been." Notably, a reduction in benefits is a far cry from payments drying up altogether. For many retirement savers, though, it's not hard to imagine a world where a once ubiquitous program goes by the wayside. After all, how many young people do you know with a pension? But if you're worried about receiving diminished benefits, it's possible to plan ahead. Here's how experts say to prepare. If you've ever received a paycheck, you likely have an idea of how Social Security works. Workers pay Social Security taxes, typically via payroll deduction, on earnings up to a certain amount — $176,100 for 2025. If you're under the threshold, you and your employer split the cost, each paying in 6.2% of your income. That money goes into a trust fund from which the government pays out benefits to retirees, as well as their survivors and people with qualifying disabilities. When you retire, the amount of your payout depends on how much you made during your career and when you claim the benefits. Generally, the benefit is designed to replace around 40% of your pre-retirement income. If you think there's a possibility that the program might go away, start by seeing what your financial plan would look like without it. "Most of the time, we'll run our retirement projections with a reduction in Social Security anywhere between 50% and 100%," says Doug Boneparth, a certified financial planner and founder of Bone Fide Wealth. Eckels goes through the same exercise with her clients. "If there's a concern, which for many young people there is, then let's figure out a way in which we can plan around not having Social Security," she says. It may make sense for you to work with a financial advisor of your own, who could walk you through these sorts of simulations. But for some back-of-the napkin math, you can plug your current savings, monthly contributions and expected returns into an investing calculator, like this one from the Securities and Exchange Commission. Once you determine how much you'll have at the time of your retirement, divide by 25. An old rule of thumb dictates that you can safely withdraw around 4% of your retirement portfolio annually (assuming a certain investment mix) for 30 years without running out of money. Would that be enough for you to live on? If you're decades away from retirement, it can be tricky to tell, says Eckels. "Your income, your job, your life could change in a million different ways between now and retirement," she says. Nevertheless, if the number you see falls short of what you may be envisioning, it's up to you to get yourself on track, financial pros say. And the earlier you start, the better. "When you're younger, you can potentially account for that," says Eckels. "You can save more. You can be more aggressive when it comes to how much you're putting away for retirement." For those closer to retirement age, it may be wise to consider adding other sources of income for when you leave your 9-to-5, such as picking up consulting work or investing in income-producing rental properties. And if you plan this way and Social Security comes in as expected, you can consider it a bonus. But thinking about your future without it "further emphasizes the need to take control of your own financial destiny," says Boneparth. "Retirement has been placed on the individual more than ever before." ,
Yahoo
31-01-2025
- Business
- Yahoo
How couples can achieve more fairness in their household finances
Listen and subscribe to Decoding Retirement on Apple Podcasts, Spotify, or wherever you find your favorite podcasts. Successful financial partnerships involve more than just dividing money — they need equality in financial knowledge and decision making. "What I strive for is creating fairness and equality inside households when it comes to finances and money,' Doug Boneparth, the president and founder of Bone Fide Wealth, said in a recent episode of Decoding Retirement (see video above or listen below). 'What we're striving for here is everyone knowing at a minimum where your assets are, knowing what income is being generated, having an idea of what the household expenses are, both having access to accounts." This embedded content is not available in your region. Boneparth and his wife are in the process of writing 'Money Together,' a book that will help couples have meaningful and productive financial conversations. Rather than just offering advice about joint accounts, they aim to help couples navigate five crucial areas of financial partnership: financial upbringing, past money mistakes, caregiving responsibilities, power dynamics, and risk tolerance. Ultimately, healthier conversations about money lead to stronger relationships, happier families, and better outcomes for everyone involved, Boneparth said. 'Money is one of these games; it never ends,' he said. 'You play it your whole life and it's constantly changing and constantly evolving, right? It is tricky.' In the podcast, Boneparth emphasized that while it's fine for one partner to manage day-to-day finances, both partners need to be actively involved to achieve financial equality in a relationship. This includes knowing the location of all accounts, having shared access to financial apps and accounts, conducting regular check-ins to review net worth and goals, and understanding both the quantitative and qualitative aspects of money management. "There's no right or wrong way as far as the division of labor goes,' he said. 'But it would be completely unacceptable for [my wife] not to know where the accounts are, where they're located, how to access them, what our net worth looks like, what spending looks like." Boneparth said he and his wife sit down to go over finances on a quarterly basis. 'We go through net worth, we take a look at how we're doing, and we actually have a real conversation around what's going on behind those numbers,' he said. 'Numbers only tell you so much of the story. How about what our goals are? What did we do well this year? Do we feel free to spend?" These conversations matter because it's rewarding to strive toward goals together. Moreover, not getting on the same page with respect to financial matters could put your relationship at risk. "It's almost cliché at this point to say that most relationships don't work out due to something financially related,' Boneparth said. 'If that's the biggest issue in the long-term success of relationships, we should be addressing that.' To help couples get started, Boneparth offered some tips for couples to build stronger financial teamwork through understanding and communication. Ensure both partners have full access to all financial accounts and apps, regardless of who handles day-to-day money management. Schedule regular financial check-ins to review net worth and spending. Boneparth recommended doing this quarterly. During these meetings, discuss both the quantitative and qualitative aspects of your finances. This means talking about both the numbers and feelings around your money and goals. Create equality in your financial knowledge — both partners should know: Where all accounts are located. How much income is being generated. What the household expenses look like. How to access all financial information. Remember that dividing financial tasks is fine, but both partners need complete visibility and understanding of the overall financial picture. Boneparth also noted that shared resources can help couples track household finances together. For instance, using shared financial apps and online tools creates transparency. Also, consider working with a financial adviser to establish a framework for money discussions. "By getting household participation around this, we really do increase the probability that you're going to hit your goals together," he said. "This is a team game you're playing." Each Tuesday, retirement expert and financial educator Robert Powell gives you the tools to plan for your future on Decoding Retirement. You can find more episodes on our video hub or watch on your preferred streaming service. Sign in to access your portfolio
Yahoo
28-01-2025
- Business
- Yahoo
Retirement: Why it's hard to determine how long to plan for
What's the best way to maximize after-tax returns and build the optimal portfolio? How should American households measure their longevity risks? Robert "Bob" Powell sits down with David Blanchett, Head of Retirement Research at PGIM DC Solutions, and Doug Boneparth, Bone fide Wealth President & Founder, to discuss several different topics including how to understand risk over time, plan for your longevity risk, and prioritize different savings goals. Doug & David both agree that open financial communication is the most important strategy when it comes to your household's financial planning. Find out how to calculate the best investment strategy for you and your family in this week's episode of Decoding Retirement. Understanding risk over time (6:00) Why stocks become relatively less risky over longer time horizons. "How does the risk of holding those investments change the longer I hold them?" - David Blanchett Planning for the worst (14:20) Why there is not one way to go about your financial life. "What good is investing your money if you can't stay invested to enjoy compounding your returns?" - Doug Boneparth Financial equality in the household (20:00) Why communication is fundamental when it comes to household financial planning. "It would be completely unacceptable for her not to know where the accounts are and how to access them...." - Doug Boneparth Video highlights: :40 - How to build an efficient portfolio 3:40 - The simplicity of target date funds 7:20 - Finding the best investment strategy for you 8:30 - Decoding longevity risk 11:40 - The impact of interest rates 14:20 - Why personal finance is personal 18:00 - How discuss finances with your partner Retirement planning doesn't mean locking up your money for a rainy day and forgetting about it. Planning your future means reacting to events today. Decoding Retirement gives you the tools to navigate the years ahead, and take action now! Yahoo Finance's Decoding Retirement is hosted by Robert Powell, and produced by Austin Rivera. Find more episodes of Decoding Retirement at Thoughts? Questions? Fan mail? Email us at yfpodcasts@ Editor's note: This post was written by Austin Rivera. Sign in to access your portfolio
