Latest news with #Heerlein
Yahoo
2 days ago
- Business
- Yahoo
3 Surprising Financial Benefits of Unretiring (It's More Than Just a Salary)
Retirement isn't always the final chapter — sometimes it's just a pause. One survey conducted by T. Rowe Price, found that millions of retirees have returned to work in search of financial and emotional benefits. Whether you miss the structure, the sense of purpose, or want to boost your bank account, more people are choosing to 'unretire' and reenter the workforce. And it turns out, the financial upsides go far beyond a steady paycheck. Explore More: Read Next: 'I've seen so many compelling benefits from unretiring in my work with clients — and experienced them myself,' said Andrew Lokenauth, money expert and owner of BeFluentInFinance. 'The money aspect goes way deeper than just getting a paycheck.' Here are some other surprising benefits of unretiring that might make you rethink staying on the sidelines. Plus discover several signs you should unretire this year. Chris Heerlein, CEO of REAP Financial, said working part-time or consulting can often provide access to employer-sponsored health insurance, reducing the need to purchase expensive private plans or rely on Medicare. Additionally, staying physically and mentally active is linked to lower healthcare expenses, as retirees who remain engaged in work tend to experience fewer health problems, keeping their overall costs lower. 'Let me tell you about my client Sarah. She went back to consulting work after two years of retirement and saw her healthcare costs drop by [over] $400 per month,' said Lokenauth. Just by staying mentally engaged and physically active at work, he said she needed fewer medications and doctor visits. And she's not alone. He's consistently noticed that working retirees tend to have lower medical expenses. Check Out: The tax benefits are pretty significant, too. When Lokenauth unretired, he was able to keep contributing to his Roth IRA since he had earned income again. 'Plus, delaying Social Security meant my monthly benefits grew about 8% each year,' he added. The compound effect really adds up. Working just a few extra years can open up more tax-efficient strategies that aren't available once you're fully retired — and those perks can stretch your savings a lot further down the line. By earning income, retirees can reduce the amount they need to withdraw from their savings, allowing those funds to last longer. This extended longevity of retirement assets, according to Heerlein, can make a huge difference over time, especially as longer lifespans and unexpected medical expenses increase the financial burden on retirees. 'The ability to contribute even a small amount to savings while still working part-time can help balance finances and provide peace of mind,' he said. Beyond the financial benefits, Heerlein noted that staying engaged in work can have emotional and social advantages that reduce potential future costs. Remaining active in a work environment helps reduce isolation and contributes to a better overall mental health, which can lead to fewer medical issues and reduced spending on healthcare. 'Staying engaged in work is not only financially beneficial but also supports a healthier, more fulfilling retirement,' Heerlein added. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 6 Hybrid Vehicles To Stay Away From in Retirement Here's the Minimum Salary Required To Be Considered Upper Class in 2025 This article originally appeared on 3 Surprising Financial Benefits of Unretiring (It's More Than Just a Salary) Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
5 days ago
- Business
- Yahoo
Waiting To Budget Until You're Debt-Free? That's Not a Strategy — It's Denial
If you've ever told yourself, 'I'll start budgeting once I'm out of debt,' you're not alone — and you're definitely not off the hook. Here's the thing: Business Insider reports that the average debt in America is over $105,000 across mortgages, auto loans, student loans, and credit cards. Waiting to get your financial life in order after paying off debt might sound reasonable, but it's kind of like saying you'll start eating healthy after you lose weight. See the problem? Consider This: Discover More: 'I made this exact mistake in my early 20s,' said Andrew Lokenauth, money expert and owner of BeFluentInFinance. He kept telling himself there was no point in budgeting when all his money was going to debt payments anyway. 'Looking back, it was pure avoidance behavior — I didn't want to face the reality of my financial situation,' he said. Budgeting isn't just for people with extra cash — it's a tool that can actually help you get out of debt faster. Here's why avoiding it is less of a plan and more of a trap. Also learn about some ways you can tackle your budget and manage your debt. Delaying budgeting until you're debt-free means missing out on essential financial habits, said Chris Heerlein, CEO of REAP Financial. Budgeting helps you gain control over your money, track your expenses and save for the future, even while you're paying off debt. By budgeting now, you can develop the discipline needed to prioritize debt repayment while also making room for savings and emergencies. 'Without a budget, it's easy to overspend and lose focus on financial goals,' Heerlein remarked. Lokenauth similarly agreed, adding, 'Without a budget, these money leaks just keep draining your accounts.' Find Out: According to Heerlein, by organizing your finances and allocating a portion of your income specifically for debt, you'll pay it off faster. Without a budget, you might end up putting off debt payments or making only minimal progress, leading to more stress and delayed financial freedom. By budgeting from the start, you ensure that every dollar works toward your goal of becoming debt-free, rather than just covering immediate expenses. 'An emergency fund is crucial to avoid setbacks like unexpected medical bills or car repairs, which can derail your financial progress,' said Heerlein. Starting a budget now ensures that once your debt is paid off, you're financially prepared for whatever comes next, giving you stability and confidence in your future financial decisions. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 6 Big Shakeups Coming to Social Security in 2025 Mark Cuban Says Trump's Executive Order To Lower Medication Costs Has a 'Real Shot' -- Here's Why This article originally appeared on Waiting To Budget Until You're Debt-Free? That's Not a Strategy — It's Denial 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
27-04-2025
- Business
- Yahoo
4 Worst Mistakes Retirees Make That Stop Them From Building More Wealth
Once you hit retirement, it can be tempting to sit back and enjoy the benefits of your years of hard work. For some, this can seem like a good time to turn the focus away from building more wealth. Learn More: Check Out: On the contrary, actions like stopping investing all together can seriously hurt your financial future. GOBankingRates talked to financial experts to learn about four of the worst mistakes they see retirees make that inhibit the ability to build additional wealth. Chris Heerlein, CEO of REAP Financial, said one of the most common mistakes he sees is retirees going too conservative too quickly. 'It's natural to want stability, but many people forget that retirement can last 25 to 30 years or longer,' he said. 'Shifting entirely into fixed income or cash equivalents may feel safe, but over time it can shrink your purchasing power and limit your ability to respond to inflation, healthcare costs or changes in lifestyle. Heerlein added that he always reminds clients that retirement isn't the finish line for investing; it's a new phase where smart growth still matters. Be Aware: 'Another issue is focusing too much on income today and not enough on opportunity tomorrow,' Heerlein noted. 'Retirees often want predictable distributions, but they overlook how reinvesting a portion of their returns or keeping exposure to long-term trends can unlock greater financial flexibility.' Heerlein noted that some of his most successful retiree clients maintain a 20% to 30% allocation in assets tied to innovation or equity-based growth, giving them the ability to adjust, gift or reinvest later without draining principal. The goal isn't to chase risk, he noted, but to stay in the game with the right mix. According to Christopher Stroup, founder and president of Silicon Beach Financial, another big mistake retirees make that stops them from building more wealth is sitting on too much cash. 'Retirees often keep large sums in savings accounts 'just in case,' while inflation quietly erodes that value,' Stroup said. 'A smarter approach balances liquidity with growth through diversified investments.' Stroup said another mistake retirees make is underestimating taxes in retirement. He said too many retirees ignore how required minimum distributions, Social Security and investment income interact. 'Strategic tax planning can help stretch your nest egg further and reduce future tax burdens,' Stroup noted. More From GOBankingRates 5 Luxury Cars That Will Have Massive Price Drops in Spring 2025 4 Things You Should Do if You Want To Retire Early 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth How Much Money Is Needed To Be Considered Middle Class in Every State? This article originally appeared on 4 Worst Mistakes Retirees Make That Stop Them From Building More Wealth Sign in to access your portfolio
Yahoo
24-04-2025
- Business
- Yahoo
4 Key Signs You're Getting Money Advice From the Wrong People
Money talk is everywhere. From group chats to TikTok to family dinners — everyone seems to have a hot take on what you should be doing with your finances. But just because someone is loud (or confident) doesn't mean they're right. 'We work with clients across all income levels and one of the first things we help them unlearn is the financial noise they've absorbed from friends, social media or unqualified voices,' said Chris Heerlein, CEO of Reap Financial. For You: Try This: In fact, The New York Times reported that financial advice on social media is growing and it's also risky. Bad advice doesn't always sound wrong, but it often comes from the wrong person. Before you take that next big money move based on someone else's two cents, here are a few red flags that you might be listening to the wrong people. Good money advice isn't one-size-fits-all. Real guidance takes your personal goals, values and situation into account — not just a flashy rule or the latest 'hot tip.' Be especially cautious with anyone who's quick to offer urgent advice, promises guaranteed returns or glosses over risk. That's not financial wisdom — it's a sales pitch in disguise. Read Next: 'We've helped clients undo damage from decisions they made because someone recommended a hot tip without considering the full picture,' Heerlein said. 'Context matters. What works for one person can be totally wrong for someone else.' If the focus is on quick wins or timing the market, you're likely getting entertainment, not real strategy. One client of Heerlein's followed a friend into crypto who had no background in finance, just a lucky streak. 'That loss hurt not just financially, but also their confidence in investing going forward,' Heerlein said. Andrew Lokenauth, money expert and owner of BeFluentInFinance similarly agreed on this point. 'The biggest warning sign I see is when someone pushes get-rich-quick schemes,' he added. Last October, he said a client came to him after losing $50,000 on some 'revolutionary' crypto project that promised 10 times returns in 30 days. The person who sold them on it had zero financial background — just a flashy Instagram presence and expensive cars (probably rented). According to Lokenauth, good financial advice should be boring, methodical and focused on your specific situation. If someone's promising fast riches or pushing fancy-sounding investments you don't understand, he said to run the other way. 'Trust me on this — I've spent way too much time helping people recover from following bad advice,' he added. One of the biggest red flags? When someone insists there's only one right way to manage money. That kind of thinking drives financial experts like Lokenauth up the wall. 'I had this client who got advice to put 100% of their money in tech stocks because 'that's where all the growth is,'' he recalled. 'But they were 60 years old and planning to retire soon.' In other words, they didn't need a high-risk, high-reward strategy — they needed a plan that prioritized stability and income. Blanket advice like that not only ignores a person's age and timeline, but it can also jeopardize their financial security. Just because something worked for your friend's younger brother or some guy on YouTube doesn't mean it's right for you. Financial advice should adjust to your goals — not force you to fit someone else's mold. 'Don't even get me started on advisors who pressure you to act immediately,' Lokenauth said. 'I've seen way too many people make rushed decisions because someone told them 'this opportunity won't last.'' He said that's a classic sales tactic, not legitimate financial guidance. Whereas, good investing takes time and careful planning. Lokenauth emphasized that social media has made this problem so much worse. 'These self-proclaimed 'finance gurus' with zero credentials are everywhere, showing off fancy lifestyles and promising to teach their 'secrets' for $997,' he said. But when you dig deeper, he said you'll find they make money from selling courses — not from actually investing. Not all financial advice is created equal — and neither are the people giving it. 'Ask if the person is a CFP (certified financial planner), if they work under a fiduciary standard and how they make money,' Heerlein said. 'You have a right to know whether their recommendations are in your best interest or theirs.' A qualified advisor takes the time to understand your full financial picture before offering guidance. They build a strategy tailored to your goals, not someone else's idea of success. And if someone is pressuring you to act fast or making it sound like a 'limited time offer,' Heerlein is clear: that's not advice — that's a sales pitch. Lokenauth echoed this. 'For what it's worth, the best financial advisors I know spend more time listening than talking,' he said. 'They ask about your goals, your timeline, your risk tolerance — they actually care about what you want.' The best advisors aren't just knowledgeable — they're honest. They'll tell you when something doesn't make sense for you, even if it means they walk away without a commission. More From GOBankingRates 5 Types of Vehicles Retirees Should Stay Away From Buying These 10 Used Cars Will Last Longer Than an Average New Vehicle 4 Things You Should Do if You Want To Retire Early 4 Affordable Car Brands You Won't Regret Buying in 2025 This article originally appeared on 4 Key Signs You're Getting Money Advice From the Wrong People Sign in to access your portfolio
Yahoo
29-03-2025
- Business
- Yahoo
5 Money Moves Gen Xers Are Doing Differently Than Older Generations
Every generation has its ways of handling money. For Gen Xers or the 'sandwich generation', who were born between 1965 and 1980, navigating finances looks a bit different than it did for older generations. As a result, they tend to be savvy at adapting to new challenges and opportunities — from their saving habits to how they approach debt and investing. Trending Now: Read Next: Here's how Gen X is making money moves that stand out from the rest. Unlike older generations who saw owning a home as the cornerstone of financial security, Chris Heerlein, CEO of REAP Financial, explained that some are choosing to rent longer or invest in real estate funds instead. 'High property prices and the flexibility of remote work make alternatives more appealing,' Heerlein said. A client he worked with chose to invest in REITs rather than buy a home, allowing them to grow wealth without the burden of property taxes and maintenance. Find Out: Many Gen Xers are cautious about tying up all their savings in 401(k) plans and IRAs after witnessing market downturns. Some prefer brokerage accounts or high-yield investments that provide access to cash for career shifts or early retirement. One of Heerlein's clients split their savings between tax-advantaged accounts and a liquid portfolio, ensuring both security and flexibility. This is another shift, according to Heerlein. Many Gen Xers are pursuing phased retirement or passion projects instead of fully stopping work at 65. 'A client I advised transitioned from corporate leadership into consulting, keeping income while gaining more control over their time,' Heerlein said. He explained that for Gen X, retirement is less about an end date and more about achieving financial independence on their own terms. One of the biggest shifts Quentara E. Costa, certified financial planner (CFP) and owner of Powowow, LLC, has seen how Gen X is rethinking elder care. While 'aging in place' remains a goal for many, he said the reality for dual-income families is that extended leaves from work to provide full-time caregiving simply aren't practical. Instead, Gen X is embracing a more flexible, financially strategic approach: Leveraging companion care, in-home support and residential-style assisted living as viable alternatives to the dreaded nursing home model. According to Mark Gelbman, financial advisor and owner of Strategic Wealth Solutions, Gen Xers are embracing technology to save for their financial future. 'This has given a rise to a number of free trading platforms and money management tools,' Gelbman said. He noted they're also using new types of lending platforms like SoFi, Klarna, Afterpay and Affirm. They are looking for faster lending options as opposed to traditional banking that can take substantial time and require more paperwork. More From GOBankingRates 5 Types of Vehicles Retirees Should Stay Away From Buying 12 SUVs With the Most Reliable Engines 4 Things You Should Do if You Want To Retire Early 6 Big Shakeups Coming to Social Security in 2025 This article originally appeared on 5 Money Moves Gen Xers Are Doing Differently Than Older Generations
