Latest news with #FluentinFinance
Yahoo
6 days ago
- Business
- Yahoo
Think Lower Inflation Means Cheaper Prices? Think Again
If you've seen headlines celebrating lower inflation and assumed that meant your grocery bill or rent would magically shrink — sorry to burst your bubble. While lower inflation sounds like good news (and it is, sort of), it doesn't mean prices are going down. Andrew Lokenauth, money expert and owner of Fluent in Finance, has noticed this misconception all the time when talking to his clients about financial planning. 'The thing is, most people mix up 'disinflation' (slower price increases) with 'deflation' (actual price drops). And I get it — the terminology is confusing as hell. When headlines scream 'Inflation falling to 3%!' it sounds like prices must be dropping too.' Here's what's really going on. Find Out: Read Next: According to Dennis Shirshikov, professor of finance at City University of New York and head of growth and engineering at Growth Limit, the false idea that lower inflation means lower prices comes from a fundamental misunderstanding of what inflation actually measures. 'Inflation is the general price level, not the absolute prices.' This is what's happening: When the inflation rate decreases, all that is happening is that prices are still increasing, but at a slower rate. This can be misleading to a lot of people, Shirshikov explained, because most people would expect that less inflation means that prices would be going down rather than going up at a slower rate. See More: 'Picture the cost of a gallon of milk. Milk costs 5% more this year than it did last year when inflation [was] 5%. Even if inflation drops to 2%, the cost of milk would still go up, but at a much slower pace — only 2%, not 5%,' said Shirshikov. So basically, although that may be a welcome development in the sense that it will take pressure off household budgets, it's important to recognize that the prices are not actually falling, they are simply rising less rapidly. If you were relying on prices to act as a sort of after-inflation cut in the price of money itself, it's time to reset your expectations. The best thing is to concentrate on how to manage and control other parts of your budget and investment strategy. As the price of goods goes up in the coming months, you may want to see if there are opportunities to reduce expenses, diversify investments and lock in fixed prices for necessary services now to avoid paying more later. 'Let's face it, being proactive with your financial planning is important for managing inflation — even when it's not as aggressive as before,' Shirshikov said. More From GOBankingRates 10 Cars That Outlast the Average Vehicle Mark Cuban Says Trump's Executive Order To Lower Medication Costs Has a 'Real Shot' -- Here's Why This article originally appeared on Think Lower Inflation Means Cheaper Prices? Think Again
Yahoo
27-05-2025
- Business
- Yahoo
5 Surprisingly Great Assets Retirees Don't Think To Invest In
You may be thinking beyond the traditional investment opportunities, such as stocks and bonds, when looking for options during retirement. While those can provide solid returns, there may be lots of other options to consider. Be Aware: Find Out: Some financial experts shared with GOBankingRates their recommendations for assets that may be worth a look. Kevin Estes, CFP, founder of Scaled Finance, recommended home upgrades. He said they may be worth the hassle and cost and provide a positive return on investment. Estes also said adding an accessory dwelling unit could generate rental income and improve the property's value. Learn More: Another option that could be considered is startup investments. 'Investing in a small business or local startup could be a good investment,' Estes said. 'While there's certainly risk, a retiree may improve the odds by sharing their connections, experience and other resources.' According to Andrew Lokenauth, a money expert from Fluent in Finance, luxury watches have been one of his favorite recommendations lately. 'I suggest looking beyond the obvious choices to smaller watchmakers,' Lokenauth said. 'These pieces typically appreciate 5% to 10% annually, and they're a blast to collect. One of my clients started with a $15,000 piece and has built an impressive collection worth over $100,000.' Lokenauth called rare coins 'hidden gems.' 'I'm talking about specific niches like early American copper coins or certain mint errors. The key is specializing — I've got clients who've seen 15% to 20% returns by focusing on particular series or years,' he said. 'A client's time horizon, cash flow constraints and risk tolerance guide the appropriate mix of assets for their investment portfolio,' said Marguerita Cheng, CFP, CEO of Blue Ocean Global Wealth. 'Sometimes clients may neglect to include emerging markets, international or small cap stocks in their portfolio because these asset classes are perceived to be too risky or volatile.' In addition, Cheng said commodities can be valuable additions to an investment portfolio and serve as an inflation hedge. More From GOBankingRates 25 Places To Buy a Home If You Want It To Gain Value This article originally appeared on 5 Surprisingly Great Assets Retirees Don't Think To Invest In
Yahoo
15-05-2025
- Business
- Yahoo
401(k) Mistakes Gen Zers Are Making
Between student loans, side hustles and trying to afford rent, it could be easy to put retirement planning on the back burner. This is especially true for Gen Z, who have a ways to go before retirement. However, according to Newsweek, the Gen Zers who are investing for retirement are ahead of the game compared with other generations. Still, a few common 401(k) slipups could be costing them big in the long run. Read Next: Learn More: As a financial advisor who's worked with hundreds of young professionals, Andrew Lokenauth, money expert and owner of Fluent in Finance, has seen way too many Gen Zers leave serious money on the table with their 401(k)s. 'Like, thousands of dollars. And it drives me nuts because these are such easy fixes,' he said. Here's what to watch out for (and how to get it right from the start). Let's be real — turning down free money is never a good idea. But that's exactly what happens when you don't contribute enough to get your full employer match. It's basically like giving yourself a pay cut for no reason. This is free money, and not contributing enough to get it is like taking an unnecessary pay cut, according to Chris Heerlein, CEO of Reap Financial. Even starting with a small percentage can have a major impact over time. Heerlein said one of his clients in their early 20s increased their contribution from 2% to 4% after realizing their employer matched up to 4%. That adjustment can instantly double the value of your retirement savings each paycheck. Even if you're just starting out and feel like you can't afford to save much, contributing just enough to trigger that match is a no-brainer. Check Out: Heerlein has observed Gen Zers miss out on early compounding because they never selected an investment option, so their funds stayed in a money market account. It's an easy mistake to make — especially when you're new to the workforce and just happy to have a job with a retirement plan. But parking your money in a low-yield account means you're missing out on the real power of investing: growth over time. Choosing a target-date or index fund tailored to their retirement horizon can put those dollars to work immediately. 'These small early actions help build financial momentum that compounds for decades,' he said. Simply put: The earlier you start, the more your money works for you — like while you're sleeping, binge-watching Netflix or planning your next vacation. More From GOBankingRates 5 Luxury Cars That Will Have Massive Price Drops in Spring 2025 8 Items To Stock Up on Now in Case of Tariff-Induced Product Shortages 3 Reasons Retired Boomers Shouldn't Give Their Kids a Living Inheritance How Much Money Is Needed To Be Considered Middle Class in Every State? Sources Newsweek, 'Gen Z Is Getting a Leg Up on Their Retirement Savings.' Andrew Lokenauth, Fluent in Finance Chris Heerlein, Reap Financial This article originally appeared on 401(k) Mistakes Gen Zers Are Making 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
14-05-2025
- Business
- Yahoo
The Smartest $20 to $50 You Can Invest for the Biggest Return, According to Experts
If you've ever felt like investing is only for people with thousands of dollars lying around, think again. You don't need to be the next Warren Buffett or win the lottery to start building wealth. Even small moves can lead to growth. In fact, according to investing pros, even just $20 to $50 can be a powerful first step toward a solid financial future. The key? Putting that money in the right place. Read Next: Check Out: While a single $20 bill won't turn into a mansion overnight, financial experts agree that starting small and being consistent is what truly matters. And when you pick smart, low-cost investment options, your humble little contribution can actually grow into something meaningful over time. Chris Heerlein, CEO of Reap Financial, advised investing in a low-cost index fund through a brokerage account with no trading fees. With fractional shares, you don't need hundreds to get started. You can set up weekly $20 to $50 automatic purchases into a total market exchange-traded fund (ETF). Over time, that small habit can add up. Be Aware: According to Andrew Lokenauth, money expert and owner of Fluent in Finance, the Vanguard S&P 500 ETF (VOO) is the perfect starting point. It tracks the S&P 500, and you can grab fractional shares through apps like Robinhood for as little as $1. He started with $25 in the ETF last March and said it's already up 12%. 'Not too shabby for such a tiny investment,' he said. The thing is, most people overlook how powerful small, consistent investments can be. Lokenauth personally puts $40 each month into the Vanguard Total Stock Market ETF (VTI) through M1 Finance. The platform lets you automate these micro-investments without fees eating into your returns. According to Vanguard, this ETF tracks the CRSP US Total Market Index and is diversified across growth and value styles. According to experts, the key with tiny investments is keeping fees nonexistent. That's why Lokenauth advised sticking to commission-free platforms. Traditional brokers could eat your $20 to $50 alive with fees. In fact, according to the Securities and Exchange Commission, fees can seriously dampen investor returns. A $100,000 portfolio with a 1% fee over 20 years will be worth $30,000 less than one with a 0.25% fee. So it's best to maximize your small investments and look for commission-free platforms when possible. Sure, choosing the right fund matters — but the real magic? It's in the habit. Apps and platforms, like Acorns, Betterment and many others, make it incredibly easy to automate tiny contributions — even as little as $5 a week. With automation, you're not relying on willpower or memory. You set it once, and it just happens. This is where consistency beats timing. Most people think you have to buy low and sell high or wait for the perfect market dip. But investing experts will tell you that time in the market is more important than timing the market. The longer your money has to grow, the more it can compound, and the easier it gets. More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? 10 Genius Things Warren Buffett Says To Do With Your Money 5 Little-Known Ways to Make Summer Travel More Affordable 6 Hybrid Vehicles To Stay Away From in Retirement Sources Chris Heerlein, Reap Financial Andrew Lokenauth, Fluent in Finance Vanguard, 'Vanguard Total Stock Market ETF.' Securities and Exchange Commission, 'How Fees and Expenses Affect Your Investment Portfolio.' This article originally appeared on The Smartest $20 to $50 You Can Invest for the Biggest Return, According to Experts 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
12-05-2025
- Business
- Yahoo
Experts Predict the Minimum Salary To Be Upper Class in 2030
Ever wonder how much money you'll need to officially be considered 'upper class' in the near future? As it turns out, the bar may be rising faster than most of us would like. GOBankingRates reached out to experts to get their predictions about the minimum salary it'll take to join the upper ranks by 2030, and let's just say it might be time to start strategizing. Read Next: Find Out: Here's what they have to say about what future earnings could need to be. Also see how much more upper-class earners would make in each state if President Donald Trump dropped federal income taxes. According to Pew Research Center, upper-income households have incomes of more than $169,800 (based on three-person households). But that may not be the case in a matter of five years. Andrew Lokenauth, money expert and owner of Fluent in Finance, has spent years analyzing income trends and economic patterns, and said he's pretty convinced the minimum salary needed to be considered upper class in 2030 will hit around $175,000 for singles and $350,000 for families. He explained that he's watched these numbers climb steadily over the past decade. Last October, he worked with a client who was shocked when he showed them how their seemingly solid $120,000 salary wouldn't cut it for upper class status anymore. And that was just last year. Factoring in inflation, he said those numbers are going to keep climbing. Learn More: Here's Lokenauth's take on the breakdown based on real data he works with daily. For singles living in metro areas: $175,000 minimum For families in metro areas: $350,000 minimum For singles in high-cost cities: $250,000 minimum For families in high-cost cities: $500,000 minimum He recently analyzed some data for a major financial institution, and said one pattern kept jumping out — the cost of maintaining an 'upper class' lifestyle is rising faster than general inflation. 'Think about it: private school tuition (+7% annually), premium healthcare (+5% to 6% yearly), luxury housing (+4% to 5% annual increases),' he said. 'And let me tell you something most people don't realize — these numbers actually underestimate what you'll need in some places.' In his consulting work, he's seen families making $400,000 who don't feel remotely 'upper class' in places like San Francisco or Manhattan. Here's one important detail from Lokenauth's experience: Being 'upper class' isn't just about salary. He said he's worked with plenty of folks making more than $200,000 who are living paycheck to paycheck because of poor money management. 'It's about your net worth, investments and how you handle your money,' he said. Andreas Jones, founder and editor of shared a similar view. Besides salary, he said accumulating wealth will play a significant role in determining who is considered upper class in 2030. With increasing automation and changes in the job market, Jones explained that wealth distribution could become even more skewed, making it harder for some to reach the upper class solely based on salary. From what Lokenauth's seen analyzing hundreds of household budgets, you'll need investable assets of at least $2.5 million alongside that salary to really be considered upper class by 2030. 'That's definitely something most salary-focused discussions miss,' he explained. At the end of the day, climbing into the upper class of 2030 might require more than just a high paycheck. It'll likely demand smart financial planning, savvy investing and a long-term mindset. While the numbers may seem daunting now, building wealth over time through multiple income streams could make a bigger difference than chasing a single salary figure. More From GOBankingRates Mark Cuban: Trump's Tariffs Will Affect This Class of People the Most 7 Things You'll Be Happy You Downsized in Retirement How To Get the Most Value From Your Costco Membership in 2025 4 Housing Markets That Have Plummeted in Value Over the Past 5 Years Sources Pew Research Center, 'Are you in the American middle class? Find out with our income calculator.' Andrew Lokenauth, Fluent in Finance Andreas Jones, This article originally appeared on Experts Predict the Minimum Salary To Be Upper Class in 2030 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
