Latest news with #EdelmanFinancialEngines
Fast Company
29-05-2025
- Business
- Fast Company
People are commiserating over ‘Maycember': Why this month has families feeling financially strapped
Have you heard of ' Maycember '? According to social media, it's a term that describes the hectic nature and mounting expenses families face around May, particularly parents with children, due to the increased cost of everything from graduation gifts to summer camps and family vacations, which combined with inflation (and tariffs), have made May feel extra expensive, just like the winter holiday season. That's as total spending for college and graduation gifts is expected to reach a record $6.8 billion in 2025, up from $6.1 billion in 2024, according to the National Retail Federation. And U.S. consumer spending was up in May 2024, even as prices remained stable; the personal consumption expenditures (PCE) price index was unchanged last May but still marked a 2.6% year-over-year rise, according to financial news site Finimize. (On the consumer side, spending increased by 0.2%, maintaining momentum from April's 0.1% rise, aided by a 0.5% bump in personal income.) 'May often feels like a second December because so many expenses pile up at once,' Isabel Barrow, executive director of financial planning at Edelman Financial Engines, told CNBC. Some of those expenses include graduation, Mother's Day, camp, summer travel, and weddings. Some families might also have higher grocery bills when children come home from college to visit for July 4, or throughout summer until Labor Day weekend. And the end of spring brings a flurry of activities that mark the end of the school year and the beginning of summer, which can often require paying up for tickets, gear, or other related expenses, including school events like dance or music recitals, kids' sports tournaments, field trips, and end-of-year projects. But just where exactly did the term 'Maycember' come from, anyway? The word got out after the Holderness family, popular on social media, posted a funny YouTube video that went viral, garnering 270,000-plus views. The family has since posted another Maycember parody. Meanwhile, a number of parents have also taken to social media to post and commiserate about Maycember; a recent Instagram post from Scary Mommy got more than 23,000 likes and even more shares.
CNBC
28-05-2025
- Business
- CNBC
'Maycember' is almost over — here's how to recover financially after a string of end-of-school-year activities
It's officially "Maycember," a term making the rounds on social media to sum up the chaos and high costs of May — which mimic those of December, minus the holiday cheer. Although May is typically a month of endings and new beginnings, inflation and social pressure have helped drive up the prices for many of the expenses that fall within its 31 days. From graduation gifts and prom attire to camp payments, dance recitals and sports tournaments, the gauntlet of events has left parents feeling particularly strained. "May often feels like a second December because so many expenses pile up at once," said Isabel Barrow, executive director of financial planning at Edelman Financial Engines. "Graduations, school events, weddings and summer travel plans all converge, creating a storm of financial stress." Here's a look at other stories impacting the financial advisor business. The key is not to panic, Barrow said. "It's important to remember that a long-term plan requires long-term perspective, and one month of overspending doesn't have to derail your financial goals." Most financial experts recommend going back to a basic budget. "The first step towards recovery is to take the time to review your spending and reassess your financial plan," Barrow said. "Financial well-being begins with awareness and the feeling that you are regaining control." If you've racked up credit card debt, start addressing that immediately, Barrow said. To stay motivated, try picking a repayment strategy, such as the avalanche method or the snowball method, which respectively prioritize paying off the highest-interest debt first or paying off your debt from smallest to largest balance. At the same time, automating your savings is one of the best ways to rebuild after a heavy spending period, Barrow said: "Set up a recurring transfer to your emergency fund or savings account." If your employer offers direct deposit splitting, use that to route a portion of your paycheck directly into savings, she advised. The start of summer is also a good time to scale back, according to certified financial planner Lazetta Rainey Braxton, founder and managing principal of the Real Wealth Coterie. Pack a picnic lunch for a day at the park, or "find free events such as museum days and public events." There may also be more opportunities to pick up a side gig this time of year, she added, such as babysitting or tutoring over the long break from school. Those funds can help turbocharge debt repayment. "Know that Maycember is a stretch month that doesn't represent the pace of your entire life," said Braxton, who is a member of CNBC's Financial Advisor Council. "Use your experience as a guide with a rearview mirror." Tally what you've spent on activities and celebrations such as Mother's Day, graduations and vacations, as well as any payments towards camps or summer activities. Use that total to make a plan for next year, she advised. "Start a Maycember fund by creating a separate savings account and setting aside $25 a month or more," she said. That advance planning can also come in handy to make the most of sales holidays later in the year, such as Black Friday and Cyber Monday, she added. Still, "It's important to remember that you don't need to overspend or go beyond your budget to give meaningful gifts," cautioned Kelli Smith, a director of financial planning at Edelman Financial Engines. "Thoughtfulness and creativity can make a big impact."
Yahoo
25-05-2025
- Business
- Yahoo
More than a third of Americans say they want an 'adventurous retirement'
Listen and subscribe to Decoding Retirement on Apple Podcasts, Spotify, or wherever you find your favorite podcasts. Retirement is no longer just about rocking chairs, gardening, grandchildren, or afternoons on the golf course. Instead, it's evolving from what many consider a traditional retirement into something much more dynamic, said Andy Smith, executive director of financial planning at Edelman Financial Engines. "I think it's important that people remember that there is no one-size-fits-all solution to retirement, to retirement planning," Smith said in a recent episode of the Decoding Retirement podcast (see video above or listen below). "There's no one right way to retire." This embedded content is not available in your region. Historically, many saw retirement as a time to focus on relaxation and family, he added. But that vision is changing. "Nearly four in 10 Americans, about 39% of respondents, said that they want this adventurous retirement,' Smith said, citing the firm's Everyday Wealth in America report. "And 42% of respondents said that they wanted to stay active. There is this growing number who are thinking about or even envisioning this minimalist or even nomadic lifestyle." This shift requires both retirees and advisers to rethink how they plan for income and expenses. Instead of a linear, one-time retirement transition, planning needs to account for whether retirement unfolds all at once or in phases, Smith said. Will there be part-time work, consulting, or income from travel or passion projects? How often will you travel, and during what part of the year? These questions impact not just your budget, but how and when you withdraw your money. Previously, the conventional approach was to estimate a retirement nest egg, adjust for inflation and taxes, and draw down steadily. But that approach is giving way to a segmented plan, Smith said. "What will the first three to five years look like? What about the next three to five?" he asked. "And if people can see how that manifests over time, then they can feel a lot more comfortable about spending different dollars in different ways." Smith noted that one challenge begins once you retire: deciding how to withdraw from a mix of accounts — Roth IRAs, traditional 401(k)s, HSAs, brokerage accounts, and Social Security — without triggering unnecessary taxes. The key, Smith said, is having a comprehensive financial plan. "You have to figure out what you have and how much you have before you can ever build this sort of roadmap." That means understanding your full financial picture, including your income sources, expected benefits, expenses, and how your assets are structured across account types. Without that foundation, it's impossible to build an effective, tax-efficient withdrawal strategy. Early in retirement, before Social Security or pension income kicks in, you might find yourself in an unusually low tax bracket. "It could be the lowest bracket that you've ever been in in your entire life," Smith said. That could make it a smart time to draw from traditional IRAs or 401(k)s before reaching the required minimum distribution (RMD) age, allowing you to "fill up" lower tax brackets and avoid higher taxes later. Once guaranteed income begins, your strategy may shift. Tapping brokerage accounts could be more efficient since long-term capital gains are often taxed at 15% or even 0% for lower earners. For 2024, Smith noted, single filers earning under $48,000 and married couples earning under $96,000 may qualify for the 0% capital gains rate. Creating a tax-efficient withdrawal plan is just one part of the retirement equation. Selecting the right income strategy, whether it's the 4% rule, bucket planning, annuities, or a hybrid approach, is equally critical. This is where professional help comes in. "I think it's imperative that people absolutely consider working with a professional," Smith said. "This is not just an investment management game anymore. This is holistic financial planning, because if it has a dollar sign, this is going to be important for you to try to figure out." Smith encouraged retirees to ask the right questions when choosing a financial adviser: "Are you a fiduciary?" "How much is it going to cost, total?" "What happens to me if something happens to you?" Ultimately, the goal is to turn your life savings into a reliable, tax-smart retirement income stream. "As you retire, you have this wealth that you've spent a lifetime building," Smith said. "Now it's your job not to keep saving it, but to know: How do I draw that down? Where do I pull the money? How do I pull the money? When, and how much?" Smith reflected on how his own unexpected path from wilderness emergency medicine to financial planning helped him learn key lessons. "There was a time in my life when I was seriously considering becoming a mountain guide," he said. That training was rigorous, with mornings in the lab and afternoons in hands-on fieldwork. But Smith said he learned to "plan for the worst, hope for the best, and don't be disappointed with averages." That philosophy carries over to retirement planning. "We were big on planning your work and working your plan," Smith said. "These are not set-them-on-the-shelf-and-forget-about-them sorts of plans. These are living, breathing documents that you go back to." And most importantly, he continued, "Don't just build the plan — test it, because what looks good on paper, what looks good in a classroom doesn't always work on the side of a mountain when it's 10 degrees below zero." 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
25-05-2025
- Business
- Yahoo
More than a third of Americans say they want an 'adventurous retirement'
Listen and subscribe to Decoding Retirement on Apple Podcasts, Spotify, or wherever you find your favorite podcasts. Retirement is no longer just about rocking chairs, gardening, grandchildren, or afternoons on the golf course. Instead, it's evolving from what many consider a traditional retirement into something much more dynamic, said Andy Smith, executive director of financial planning at Edelman Financial Engines. "I think it's important that people remember that there is no one-size-fits-all solution to retirement, to retirement planning," Smith said in a recent episode of the Decoding Retirement podcast (see video above or listen below). "There's no one right way to retire." This embedded content is not available in your region. Historically, many saw retirement as a time to focus on relaxation and family, he added. But that vision is changing. "Nearly four in 10 Americans, about 39% of respondents, said that they want this adventurous retirement,' Smith said, citing the firm's Everyday Wealth in America report. "And 42% of respondents said that they wanted to stay active. There is this growing number who are thinking about or even envisioning this minimalist or even nomadic lifestyle." This shift requires both retirees and advisers to rethink how they plan for income and expenses. Instead of a linear, one-time retirement transition, planning needs to account for whether retirement unfolds all at once or in phases, Smith said. Will there be part-time work, consulting, or income from travel or passion projects? How often will you travel, and during what part of the year? These questions impact not just your budget, but how and when you withdraw your money. Previously, the conventional approach was to estimate a retirement nest egg, adjust for inflation and taxes, and draw down steadily. But that approach is giving way to a segmented plan, Smith said. "What will the first three to five years look like? What about the next three to five?" he asked. "And if people can see how that manifests over time, then they can feel a lot more comfortable about spending different dollars in different ways." Smith noted that one challenge begins once you retire: deciding how to withdraw from a mix of accounts — Roth IRAs, traditional 401(k)s, HSAs, brokerage accounts, and Social Security — without triggering unnecessary taxes. The key, Smith said, is having a comprehensive financial plan. "You have to figure out what you have and how much you have before you can ever build this sort of roadmap." That means understanding your full financial picture, including your income sources, expected benefits, expenses, and how your assets are structured across account types. Without that foundation, it's impossible to build an effective, tax-efficient withdrawal strategy. Early in retirement, before Social Security or pension income kicks in, you might find yourself in an unusually low tax bracket. "It could be the lowest bracket that you've ever been in in your entire life," Smith said. That could make it a smart time to draw from traditional IRAs or 401(k)s before reaching the required minimum distribution (RMD) age, allowing you to "fill up" lower tax brackets and avoid higher taxes later. Once guaranteed income begins, your strategy may shift. Tapping brokerage accounts could be more efficient since long-term capital gains are often taxed at 15% or even 0% for lower earners. For 2024, Smith noted, single filers earning under $48,000 and married couples earning under $96,000 may qualify for the 0% capital gains rate. Creating a tax-efficient withdrawal plan is just one part of the retirement equation. Selecting the right income strategy, whether it's the 4% rule, bucket planning, annuities, or a hybrid approach, is equally critical. This is where professional help comes in. "I think it's imperative that people absolutely consider working with a professional," Smith said. "This is not just an investment management game anymore. This is holistic financial planning, because if it has a dollar sign, this is going to be important for you to try to figure out." Smith encouraged retirees to ask the right questions when choosing a financial adviser: "Are you a fiduciary?" "How much is it going to cost, total?" "What happens to me if something happens to you?" Ultimately, the goal is to turn your life savings into a reliable, tax-smart retirement income stream. "As you retire, you have this wealth that you've spent a lifetime building," Smith said. "Now it's your job not to keep saving it, but to know: How do I draw that down? Where do I pull the money? How do I pull the money? When, and how much?" Smith reflected on how his own unexpected path from wilderness emergency medicine to financial planning helped him learn key lessons. "There was a time in my life when I was seriously considering becoming a mountain guide," he said. That training was rigorous, with mornings in the lab and afternoons in hands-on fieldwork. But Smith said he learned to "plan for the worst, hope for the best, and don't be disappointed with averages." That philosophy carries over to retirement planning. "We were big on planning your work and working your plan," Smith said. "These are not set-them-on-the-shelf-and-forget-about-them sorts of plans. These are living, breathing documents that you go back to." And most importantly, he continued, "Don't just build the plan — test it, because what looks good on paper, what looks good in a classroom doesn't always work on the side of a mountain when it's 10 degrees below zero." 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. 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
'The Middle Class Is Dead,' Why So Many Millennials Feel Stuck, Despite Making More Than Previous Generations
Collective millennial wealth has jumped by more than $12 trillion dollars over the last five years Yet many millennials still feel that financial security is out of their reach Experts say that the death of the middle class is to blame for the phenomenon, keeping the generation in a break-even cycle instead of allowing them to get ahead New data from the Federal Reserve shows that millennials are now worth a collective $16.26 trillion, up from just $4.54 trillion just five years ago. Yet despite this massive financial growth, and findings that millennials are in better financial condition than previous generations were at the same point, many millennials still feel that financial security is out of reach, according to CNBC. Don't Miss: Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Hasbro, MGM, and Skechers trust this AI marketing firm — A study from Lending Tree found that millennials between the ages of 26 and 41 have a median net worth of just under $85,000. Adjusted for inflation, Gen Xers in the same age range had a median net worth of $78,000 and Baby Boomers had a net worth of just $58,000. However, a 2024 study by Edelman Financial Engines found that only 12% of Americans considered themselves wealthy. So, where is the disconnect between the increase in generational wealth and the decrease in financial security coming from? According to Freddie Smith, an economics content creator who spoke to CNBC, the death of the middle class is the root of the problem. "We're living in two separate economies," he said. "The middle class, unfortunately, is dead for millennials and Gen Zers. Or, best-case scenario, the goalpost has just moved and it's still obtainable, but you have to make over six figures to have that middle-class life." Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Rachel Schnider, CEO of fintech company Canary, agrees. "Over the course of the year, [most Americans] might make enough money to pay for basic living expenses and cover their bills, but if one major thing happens then they can get behind." Many millennials are living at a break-even point. As costs rise for things like housing and insurance, and inflation continues to trend upward, the one-time markers of the American Dream continue to slip farther and farther out of reach. "It's a lot harder for young people today to save up for markers of the American Dream than it was for previous generations," Joanne Hsu, director of the University of Michigan's Surveys of Consumers, told CNBC. That financial squeeze isn't just having an economic impact on the generation, it's also having an emotional one. With money being so tight, many millennials feel they are unable to make long-term plans, experts told CNBC. "People often feel a lot of shame and distress when their financial lives are not going smoothly," Schneider said. "And yet, a lot of what they're experiencing is not the result of anything that they have done or could have done differently." Read Next: Invest where it hurts — and help millions heal:. Maximize saving for your retirement and cut down on taxes: . Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article 'The Middle Class Is Dead,' Why So Many Millennials Feel Stuck, Despite Making More Than Previous Generations originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. 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
