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12-05-2025
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4 Ways To Start Building Generational Wealth for Your New Baby
Starting a family — or expanding on your current one — is exciting, but one of the big questions you might have is how to set your little one up for success. Those first 18 years might seem like they'll last forever, but they fly by. The sooner you start financially planning, the sooner you can set your child up for financial success and build generational wealth for them and your family as a whole. Read Next: Find Out: Here are some ways to get started. Also see four ways to raise kids to be financially independent as adults. A 529 plan is a tax-advantaged plan designed to help with your child's (or grandchild's) college expenses. Contributions aren't tax-deductible, but withdrawals are tax-free if used for 'qualified' higher education expenses — like tuition, school fees or required materials. Thanks to the SECURE 2.0 Act, you can also roll over any unused 529 plan funds into a Roth IRA — without taxation. There are certain rules to follow, though. For example, the 529 plan must have been active for at least 15 years. The 529 plan beneficiary and the Roth IRA owner must be the same person. 'Being able to roll over unused 529 plan funds can give your children a great head start in planning for retirement,' said Michael Rodriguez, CFP, owner of Equanimity Wealth. Learn More: Setting aside a savings account for your child is a great step to help them build wealth. As long as you only add to the account, the money will grow over the years — potentially until your child is 18 or older and you can switch over the account. Just think of what 18 years of consistent (ideally, automatic) savings can do for your family. Say you deposit $1,000 into an account with a 4% annual percentage yield when your child is born. Now, say you deposit $50 a month every month until your child turns 18. By the end, they'll have nearly $18,000 — and that's assuming you never invest it or put the money into an account with a higher yield (like a certificate of deposit or investment account). Investing is one of the best ways to build generational wealth. The sooner you get started, the sooner you can get your child on the right path financially. There are plenty of ways to invest, but some experts suggest going with stocks. 'If you start when your child is a newborn and invest just $8 a day into the S&P 500, they could have over $100,000 by the time they graduate high school at 18, assuming an average annual return of 7%,' said Victor Wang, CEO of Stockpile. According to Wang, starting early is 'everything.' Don't take the power of financial literacy for granted. Just because you have money to leave behind doesn't mean it'll last. Nor does it mean your children will know how to use it wisely. 'Teach your kids good money skills early, like how important it is to save first, invest second and spend last, so they learn how to manage money responsibly,' Wang said. 'Start the money conversation early and be mindful about your own emotional relationship to money: Your attitude creates their attitude. If you're positive and optimistic about money, your kids will be too.' It's okay if the conversation gets tricky at times. And it's okay to repeat the lessons you want your kids to learn. They might not understand everything right away, but the things you teach them now will go a long way toward setting them up for success. More From GOBankingRates 5 Types of Vehicles Retirees Should Stay Away From Buying How Far $750K Plus Social Security Goes in Retirement in Every US Region 4 Things You Should Do if You Want To Retire Early 12 SUVs With the Most Reliable Engines Sources Michael Rodriguez, Equanimity Wealth Victor Wang, Stockpile This article originally appeared on 4 Ways To Start Building Generational Wealth for Your New Baby
Yahoo
12-05-2025
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Some Savers Can Now Take Advantage of the ‘Super Funding' Limit for 401(k) Plans: Do You Qualify?
If you've been wishing you could put more money into retirement accounts to reap the tax benefits, 2025 might be your year — and you still have months left to take advantage. This year, certain 401(k) savers, those ages 60 to 63, can take advantage of a new 'super catch-up' contribution limit, which allows for them to contribute up to $11,250 in catch-up contributions. Be Aware: Read Next: That's significantly higher than the standard $7,500 catch-up limit for those ages 50 and older. This change, introduced by the SECURE 2.0 Act, is a way for people in their early 60s to bolster their retirement savings in their higher earning years. In 2025, the standard employee deferral limit for 401(k) plans has increased to $23,500. Individuals ages 50 and above can make an additional catch-up contribution of $7,500, bringing that total to a juicy $31,000. For those ages 60 to 63, the catch-up contribution limit rises to $11,250, allowing a whopping $34,750. Learn More: To qualify for the enhanced catch-up contribution, you just need to be between ages 60 and 63 at any point during the 2025 calendar year. It's important to note, however, that this provision is optional for employers, meaning not all retirement plans may offer this increased limit — though about 93% of plans are doing so. Consult your plan administrator at your employer. While the enhanced catch-up contributions are a great way for Americans to beef up their retirement plans, not everyone is taking full advantage. According to Vanguard's 'How America Saves 2024' report, only 15% of eligible employees utilized catch-up contributions in 2023. Unsurprisingly, higher participation rates were reported among higher-income earners, with 55% of those earning over $150,000 taking advantage of catch-up contributions. Americans at every income level need to remember that even a small amount adds up quickly over time due to the power of compound interest and the market's time-tested history of returns. In addition to this catch up, financial advisors recommended a strategic approach to maximizing retirement savings: Maximize Employer Match: Always contribute the maximum to your 401(k) to receive the full employer match. Consider Roth IRAs: Especially for younger folks, consider contributing to a Roth IRA as well, for tax-free withdrawals in retirement. Utilize Health Savings Accounts (HSAs): If eligible, contribute to an HSA for additional tax-advantaged savings. Leverage Super Catch-Up Contributions: If ages 60 to 63 and your plan allows, take advantage of the increased catch-up limit to boost your retirement savings. It's also important to note that starting in 2026, high-income earners (those earning over $145,000) will be required to make catch-up contributions on a Roth basis, meaning contributions will be made with after-tax dollars. The 'super catch-up' contribution gives people ages 60 to 63 a real shot at enhancing their retirement savings in a big way. Speak to your financial advisor to be sure you understand eligibility criteria and make strategic planning contributions to prepare you for a financially secure retirement. More From GOBankingRates 6 Used Luxury SUVs That Are a Good Investment for Retirees 12 SUVs With the Most Reliable Engines 7 Overpriced Grocery Items Frugal People Should Quit Buying in 2025 How Much Money Is Needed To Be Considered Middle Class in Every State? This article originally appeared on Some Savers Can Now Take Advantage of the 'Super Funding' Limit for 401(k) Plans: Do You Qualify? 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
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05-05-2025
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May 5-9: Tyrone officials may apologize to planners, Pinckney to discuss Mugg & Bopps
LIVINGSTON COUNTY — In 2025, The Daily is providing a weekly round-up of the biggest topics in upcoming municipal meetings, giving our readers a chance to engage with their local officials on the projects, appointments and decisions that hit closest to home. These round-ups are written on Fridays, and will not include an agenda if one hasn't been posted by 1 p.m. Municipalities are not required by the Michigan Open Meetings Act to provide an agenda in advance of a meeting, but they are required to provide notice. Please visit your local municipality website for the most updated information. Here are the biggest topics for meetings Monday-Friday, May 5-9: General Government and Health and Human Services Meeting: 6 p.m. Monday, May 5, at the Livingston County Administration Building The agenda includes: An update on the vaccine waiver program from the Livingston County Health Department Consideration of a resolution to concur with the Livingston County Aeronautical Facilities Board to enter into a grant agreement with the Michigan Department of Transportation's Office of Aeronautics for crack and joint sealing at the Livingston County Airport. Consideration of a resolution to concur with the Livingston County Aeronautical Facilities Board to enter into a grant agreement with the Michigan Department of Transportation's Office of Aeronautics for the purchase of a refurbished Ground Power Unit for the Livingston County Airport. Consideration of a resolution authorizing a contract for service between Smiles on Wheels and Livingston County to provide dental assessments in compliance with the Kindergarten Oral Health Assessment Program. Read the full agenda: How to participate remotely: By calling 646-568-7788, entering ID 399 700 0062, and entering password LCBOC. You can attend via Zoom online at Personnel Committee Meeting: 6:15 p.m. Monday, May 5, at the Livingston County Administration Building The agenda includes: Consideration of a resolution approving the reclassification of the Juvenile Register Consideration of a resolution authorizing the reclassification of the Central Records Clerk at the Sheriff's Office Consideration of a resolution authorizing the job review of the office manager at the Livingston County Building Department Consideration of a resolution authorizing the release of de-identified healthcare claims data to Opioid Clinical Management, Inc. Consideration of a resolution authorizing an agreement with Nationwide Retirement Solutions related to the SECURE 2.0 Act. Consideration of a resolution approving appointments to the Huron River Watershed Council. Consideration of a resolution approving appointments to the Materials Management Planning Committee. Read the full agenda: How to participate remotely: By calling 646-568-7788, entering ID 399 700 0062, and entering password LCBOC. You can attend via Zoom online at Budget Committee Overview and Potential Water Rate Increase: 6 p.m. Monday, May 5, at the Pinckney Village Offices An agenda was not immediately available. How to participate remotely: Microsoft Teams: ID: 288 860 452 091. Passcode: 7ff6Nr3i. Planning Commission Meeting: 7 p.m. Monday, May 5, at the Pinckney Village Offices The agenda includes: A discussion of the Master Plan. The is unfinished business from a prior meeting. A review of a possible Mugg & Bopps and Dunkin' Donuts in the former Rite Aid at 75 Dexter St. Village President Jeffrey Buerman previously confirmed the project to The Daily. Read the full agenda: How to participate remotely: Microsoft Teams: ID: 257 196 295 579. Passcode: hg2CSu. Downtown Development Authority Meeting: 9:30 a.m. Friday, May 9, at the Pinckney Village Offices An agenda was not immediately available. How to participate remotely: Microsoft Teams: ID: 269 582 965 775. Passcode: cy222fo2 Downtown Development Authority Meeting: 7:30 a.m. Wednesday, May 7, at Fowlerville Village Hall An agenda was not immediately available. Zoning Board of Appeals Meeting: 7 p.m. Thursday, May 8, at Brighton City Hall The agenda includes: Consideration of an appeal for code enforcement regarding the permitted use of the R1 Single-Family Zoning District. A notice of violation issued for advertising the property as a short-term rental is being challenged. Read the full agenda: Zoning Board of Appeals Meeting: 7:30 p.m. Monday, May 5, at Marion Township Hall The agenda includes: Consideration of Zoning Board of Appeals Case No. 02-25. Read the full agenda: Board of Trustees Meeting: 7:30 p.m. Thursday, May 8, at Marion Township Hall An agenda was not immediately available. How to participate remotely: Board of Trustees Meeting: 7 p.m. Tuesday, May 6, at Oceola Township Hall An agenda was not immediately available. Board of Trustees Meeting: 7 p.m. Tuesday, May 6, at Hartland Township Hall An agenda was not immediately available. Board of Trustees Meeting: 7 p.m. Thursday, May 8, at Cohoctah Township Hall An agenda was not immediately available. Board of Trustees Meeting: 7 p.m. Monday, May 5, at Genoa Township Hall The agenda includes: A public hearing on the proposed Special Assessment Roll for the Edwin Drive Road Maintenance Special Assessment Project. Consideration of a request for approval of Resolution No. 5 – confirming the Special Assessment Roll for the Edwin Drive Road Maintenance Special Assessment Project (Summer Tax 2025). A public hearing and consideration of recommendations for final approval of the amendment to the Summerfield Pointe Planned Unit Development Agreement, as well as a final condominium site plan and an environmental impact assessment for 12 attached condominiums and 102 detached single-family homes. The project is located on Lawson Drive, north of Grand River Avenue. The request is petitioned by Healy Homes of Summerfield, LLC. Consideration of a request to accept the resignation of Trustee Bill Reiber and to approve appointing Trustee Rick Soucy as the alternate representative to the Brighton Area Fire Authority Board with a term ending November 20, 2028, as requested by the Township Supervisor. A discussion regarding planning and zoning educational opportunities for citizens. Read the full agenda: Board of Trustees Meeting: 7 p.m. Wednesday, May 7, at Green Oak Township Hall The agenda includes: Consideration of request to purchase three patrol vehicles. Consideration of adopting Ordinance 01-2025, Zoning Amendment Ch. 38-Art. IV-Supplementary Regulations-Sec. 38-203, Event Barns. Consideration of Resolution No. 09-2025, ARPA Funds. Read the full agenda: Board of Trustees Meeting: 7 p.m. Thursday, May 8, at Unadilla Township Hall An agenda was not immediately available. Board of Trustees Work-Study Session: 1 p.m. Tuesday, May 6, at Hamburg Township Hall The agenda includes: Consideration of a wage increase for the Senior Center Director. Consideration of a wage increase for the Accounting Specialist. Consideration of a wage increase for the Deputy Treasurer. Consideration of the Fiscal Year 2025-26 Anticipated Salary Step Progression Plan. Read the full agenda: Board of Trustees Meeting: 2:30 p.m. Tuesday, May 6, at Hamburg Township Hall The agenda includes: Consideration of hiring Abigail Huck as a police officer. Consideration of rescheduling the May 20 budget work session from 1:30 p.m. to 5 p.m., and to schedule a work-study session to immediately follow. A closed session to discuss a personnel matter. Read the full agenda: Public Safety Committee: 3 p.m. Wednesday, May 7, at Hamburg Township Hall An agenda was not immediately available. Board of Trustees Meeting: 7:30 p.m. Thursday, May 8, at Deerfield Township Hall An agenda was not immediately available. Board of Trustees Meeting: 7 p.m. Tuesday, May 6, at Tyrone Township Hall The agenda includes: Consideration of a public meeting Code of Conduct. This is unfinished business from a prior meeting. Consideration of a law enforcement services agreement with the Livingston County Sheriff's Office. Consideration of upgrades to the historic Tyrone Township Hall. Consideration of resolution revoking charges and issuing an apology to planning commissioners. According to the resolution, the township board 'formally rescinds and nullifies any and all charges of non-feasance made against members Jon Ward, Richard Erickson, Garrett Ladd, Kevin Ross and Bill Wood in December 2024." The board will also apologize to the planning commissioners 'for any embarrassment, humiliation, stress or other burden placed upon them as a result of the wrongful and illegitimate charges of non-feasance." The apology stems from a letter, according to reporting from WHMI, generated by former planning commissioner and Trustee Chris Ropeta, Supervisor Greg Carnes and Trustee Dean Haase that made arguments of non-feasance against commissioners. The letter suggested it was approved by trustees. Consideration of appointing an ex-officio to the planning commission. Read the full agenda: — Contact reporter Evan Sasiela at esasiela@ Follow him on X @SalsaEvan. This article originally appeared on Livingston Daily: May 5-9: Big meetings in Tyrone Township, Pinckney, Genoa
Yahoo
04-05-2025
- Business
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Smart retirement moves to make in your 40s and 50s
Listen and subscribe to Decoding Retirement on Apple Podcasts, Spotify, or wherever you find your favorite podcasts. If you're in your 40s or 50s, and you're worried about all the ups and downs in the stock and bond markets, Chris Littlefield, the president of retirement and income solutions at Principal Financial Group, has some advice for you. 'I think obviously with the uncertainty, the market volatility, I think people that have got a financial plan ... should stick to their financial plan and not overreact to what's happening in the market at any particular time,' Littlefield said in a recent episode of Decoding Retirement (see video above or listen below). This embedded content is not available in your region. And if you don't have a plan, get one. Best case, you should get professional advice, as everyone would benefit from some 'holistic advice' about how to address the needs that they will have in retirement, he said. 'They should be working with somebody,' he added. 'They can either speak to their employer and their retirement plan service provider, or they can also speak with an adviser.' Read more: Retirement planning: A step-by-step guide No matter what, especially during times of market volatility, Littlefield cautioned retirement savers to avoid one of the biggest mistakes investors make. 'I think one of the biggest mistakes that I see people make is they try to time the market,' he said. For example, investors often attempt to adjust their asset allocations — their mix of stocks, bonds, and cash — in response to short-term market swings. The problem with that approach, Littlefield explained, is that it requires two critical decisions. 'It's one thing to sell,' he said, 'but you also have to figure out when to buy, ... and if you're out of the market in the first couple days after the market rebounds, you missed a very large percentage of the returns.' His advice: 'If you've got a good asset allocation, you've got a good plan, stay the course. Don't let the short-term news affect what is a long-term horizon.' Littlefield also recommended maximizing every opportunity to save on a tax-free basis and, if you can afford it, making catch-up contributions. 'There are still significant opportunities for you when you achieve the age of 50 to save even more than the limits that are provided by the 401(k) plan,' he said. The standard annual employee contribution limit for 401(k) plans in 2025 is $23,500. For participants ages 50 and older, the standard catch-up contribution limit in 2025 is $7,500. This means individuals over 50 can contribute up to $31,000 to their 401(k) plan for the year. And starting in 2025, individuals ages 60, 61, 62, or 63 are eligible for a higher catch-up contribution limit under the SECURE 2.0 Act. Read more: How much money should I have saved by 50? According to Littlefield, it's best practice for individuals to have an investment policy statement to guide their investment strategies, but very few are truly equipped to do it on their own. And that's where professional guidance can help. One option is to seek out a managed account, which is an arrangement 'where you have somebody who's advising on the asset allocation and helping you with the rebalancing,' Littlefield said. However, professional guidance is also often built into products like target-date funds. These funds, he said, provide professional asset allocation, automatic rebalancing over time, and exposure to a wide range of asset classes. Littlefield suggested using a target-date fund while you're young, and then moving to a managed account when you're approaching retirement might be a sound strategy. It's a more 'personalized' approach, he said, adding, 'It takes into account your individual circumstance as opposed to just your age.' That said, 'there is a cost for providing that advice,' he said about managed accounts. Target-date funds typically have an expense ratio, which is an annual fee expressed as a percentage of your total investment in the fund. This fee covers the costs of managing the underlying investments and the rebalancing of the portfolio over time. Of note, the average expense ratio for target-date funds has been trending downward. Data from Morningstar in 2023 indicated an average asset-weighted fee of just 0.30%. However, fees can range from as low as 0.08% to over 1%. Managed accounts usually have a fee that is separate from the investment management fees of the underlying funds. Fees for managed accounts can vary considerably but often range from 0.25% to 0.75% of the account's total balance per year. Some sources indicate a common range of 0.35% to 0.50%, while others note fees can go as high as 0.80% Littlefield acknowledged that many in their 40s and 50s have competing demands on their money, such as paying down debt, saving for a down payment on a house or children's education, and saving for retirement. But, he said, 'it's really important for people to take a balanced approach to their financial wellness and not focus on any one particular goal.' Littlefield also suggested that the one mistake you ought to avoid is not saving for retirement in your 401(k). He said the ability to save on a tax-deferred basis is extremely valuable. Even before considering the benefits of maximizing an employer match, Littlefield said it's important to note that a significant portion of workers — close to 50% across the industry — aren't participating in their retirement plans at all, and that's a major concern. 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
04-05-2025
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6 ways to protect your retirement savings from a recession
The stock market is down nearly 10% from its all-time high, based on S&P 500 returns through the end of April. A recession may be looming. There are times to sit back and admire the balance on your retirement account. This is not one of those times. If you are approaching retirement, or already there, you may be looking for ways to pad your savings. You may also be wondering how to avoid spending them, when they are already diminished. Take heart: There are ways to build savings in a depressed financial market, and ways to avoid drawing them down. Here are six tips from the experts. If you aren't strapped for cash, one way to boost retirement savings in a downturn is to set aside as much as you can in tax-favored accounts, including 401(k)s, IRAs and HSAs. The 401(k) already has high contribution limits, $23,500 in 2025. If you're near retirement, consider pushing your savings as close to the max as you can afford. Americans 50 and over can save even more with 'catch-up contributions,' which push the annual 401(k) limit to $31,000. A smaller subset of savers, in the 60-63 age range, get an even higher catch-up limit of $34,750, thanks to the SECURE 2.0 Act. 'People may not realize the importance of catch-up contributions,' said Maria Bruno, senior financial planning strategist at Vanguard. Individual Retirement Account contribution limits are lower: $7,000, or $8,000 for those 50 and older. An older worker might not see the point in maxing out retirement savings close to retirement, because the savings won't have as much time to grow. Keep in mind, though, that the savings don't stop growing when you retire. If you retire at 65 and live to 85, then those savings will continue to accrue interest for up to 20 more years. Think of your savings as an investment that will grow 'through' retirement, not just 'to' retirement, Bruno said. A Health Savings Account is another potential tool to build retirement savings. The annual limit is $8,550 for a family in 2025, and people over 55 can contribute another $1,000. You can save any money you don't spend. 'Ideally, you want to think of that as a retirement account,' Bruno said. For long-term retirement savers, a depressed market spells opportunity to buy stocks at a discount. Automating your retirement contributions is a good way to keep buying through the downturn. It 'keeps you consistent and takes emotion out of investing,' said Michelle Crumm, a certified financial planner in Ann Arbor, Michigan. If your contributions aren't automatic, you might miss out on buying equities on the cheap. 'When markets are down, too many people freeze,' Crumm said. If you are on the eve of retirement, perhaps the last thing on your mind is working another year or two. But postponing your retirement, even by a year or two, can be a powerful tool for building retirement savings. A Stanford University study found that delaying retirement by just three to six months has the same impact on retirement savings as raising your 401(k) contribution rate by a full percentage point for 30 years. Let's say you put off retirement for a year. In that year, you can max out retirement savings, potentially adding tens of thousands of dollars to your account. And you won't be drawing down your savings, which means they'll last longer once you do retire. 'It allows for continued income. You get savings from that income, while delaying portfolio withdrawals,' Bruno said. Staying in the workforce is especially attractive in a down market: It means you won't have to raid your retirement savings while their value is depressed. The downside to working longer is that you'll have less time to enjoy your retirement later. As a compromise, consider working part-time. 'This way, your nest egg doesn't take as large of a hit in those first years of retirement,' said Colin Day, a certified financial planner in St. Louis. And a part-time schedule 'provides you with more flexibility to do the things you enjoy.' The closer your retirement date, the more likely you will soon need to tap your savings for living expenses. Ideally, you should have some of those savings in cash. A wise goal, retirement experts say, is to amass at least a year's worth of living expenses in cash or cash-equivalent accounts, such as high-yield savings or money market funds. 'These dollars will be the first that you will deplete to generate your new retirement paychecks,' said Heather Winston, head of product strategy, individual solutions at Principal Financial Group. Cash is especially important in a downturn, so you can avoid selling depressed investments. One trusty way to pad retirement savings is to shift your focus from spending to saving. 'Start by separating nonessential expenses from essential expenses,' said Niv Persaud, a certified financial planner in Atlanta. 'Pause spending on non-essential expenses, even if that means your adult kid needs to pay their own mobile phone bill. Shift money you would have spent on non-essential items to your retirement savings.' And look for other ways to trim your expenses, Crumm said. 'Small adjustments today – refinancing insurance, downsizing subscriptions, paying off high-interest debt – can reduce the income you'll need in retirement,' she said. 'That means you'll be able to withdraw less from your investments during down markets, giving your portfolio more time to recover.' Think of this tip as protection against future downturns. If you wait to claim Social Security, your monthly check gets larger. Your benefit rises in value every year you wait, from age 62 to 70. 'If you can use other assets to bridge the gap, delaying Social Security can act as a form of longevity insurance, providing more guaranteed income,' Crumm said. A larger check can be especially helpful 'if your portfolio's growth is temporarily stalled,' she said, as in a down market. This article originally appeared on USA TODAY: 6 ways to recession-proof your retirement savings Sign in to access your portfolio
