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Yahoo
3 days ago
- Business
- Yahoo
Suze Orman Was Asked Where's The Best Place To Invest $150,000 For Retirement — But She Warns That Question Could Get You Ripped Off
You come into a chunk of money — maybe it's a bonus, an inheritance, or finally cashing out of something that actually worked. You're feeling hopeful, maybe even a little proud, and you do what responsible people do: you start thinking about how to grow it for retirement. The logical next step? You walk into a financial advisor's office and ask, "What should I do with $150,000?" Big mistake, according to Suze Orman. Don't Miss: Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Hasbro, MGM, and Skechers trust this AI marketing firm — "This is a dangerous question," Orman warned during an episode of her podcast when a listener named Cheryl posed exactly that. "Let's say it wasn't me that you're writing into," she said. "Let's say you just came into $150,000 and you walk into some financial advisor's office... and the person says to you, 'What can I do for you?' And you say, 'I have $150,000. How should I invest it?'" That, Orman says, is how people get taken for a ride. "If they tell you immediately, 'Oh great. You should buy this. You should do an annuity, you should do that' — all things that probably will make that advisor a lot of money in commission — you are setting yourself up to really possibly be taken advantage of." Trending: Maximize saving for your retirement and cut down on taxes: . In other words, the problem isn't the question itself — it's how incomplete it is. Orman explained that before anyone gives you investment advice, they should know the full picture of your financial life. "You need to tell me... how old are you? Do you have any debt? Are you healthy? Do you own a home? Do you have a mortgage on that home? What is the interest rate on that mortgage? Is your job secure? Do you have a will? Do you have a trust? Do you need a new car?" Without that context, she says, "Never just ask anybody, 'What should I do with $150,000?'"Instead, she urges people to think about the basics first. If you have high-interest credit card debt? Pay it off. Still carrying a mortgage into your sixties? That might be the smarter use of your windfall. "Let's possibly pay off the mortgage on that home," she said. "Oh, you have $30,000 of credit card debt? Let's pay off the credit card debt. Oh, you need a new car? Whatever it may be." Orman's message isn't to scare people out of investing — it's to remind them that good advice is personal, and any one-size-fits-all answer is a red flag. So if you find yourself with a windfall to grow, take a breath before diving into stocks, annuities, or whatever hot thing your buddy at the gym swears by. Figure out your priorities. Ask the right questions. And make sure whoever you're asking takes the time to ask you a few back. Read Next:'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Suze Orman Was Asked Where's The Best Place To Invest $150,000 For Retirement — But She Warns That Question Could Get You Ripped Off originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
CTV News
4 days ago
- Business
- CTV News
Planning a parental leave? How to prepare yourself financially: Christopher Liew
Personal finance contributor Christopher Liew has some tips for expecting parents who are planning to go on leave from their workplace. (Morsa Images / Getty) Christopher Liew is a CFP®, CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers at Blueprint Financial. Preparing for the arrival of your first child can be as exciting as it is overwhelming, especially if you're planning to take parental leave. While your Employment Insurance (EI) will provide some basic income support, it typically only replaces a portion of your regular earnings. If you don't already have several months' worth of expenses saved in reserve prior to the arrival of your new child, you'll need to employ some resourceful budgeting if you plan to take time off with your family. Whether you're planning to take a few months off or the full extended leave, the key to a successful transition lies in understanding the support available to you combined with a solid financial plan. Below, I'll break down some basics about how EI parental benefits work, how much you can expect to receive, and outline practical budgeting tips to help you feel more financially prepared. Parental leave basics EI maternity and parental benefits provide income replacement for eligible parents while they take time off work to care for a newborn or newly adopted child. However, the structure and amount of these benefits may differ based on your situation and the type of leave you choose. Should you choose to take parental leave, your right to return to work may also be protected by various provincial regulations, allowing you to return to your prior position and rate of pay. EI qualification To qualify for EI parental benefits, you must have worked at least 600 insurable hours in the 52 weeks before your claim (equivalent to working around 12 hours per week for one year) and must also have experienced an interruption in earnings due to childbirth or parental responsibilities (something almost every parent qualifies for). Both biological and adoptive parents may apply. If you're self-employed, you must be registered with the EI program and meet minimum contribution requirements. Standard vs. extended parental leave Eligible new parents have two options: Standard leave - provides up to 40 weeks of shared benefits (with one parent eligible for up to 35 weeks), pays up to 55 per cent of your average weekly earnings Extended leave - offers up to 69 weeks (with one parent eligible for up to 61 weeks), pays up to 33 per cent of your average weekly earnings How much can you get from EI parental leave benefits? As of 2025, the maximum weekly benefit for standard parental leave is $695, and for extended leave, the weekly maximum drops to $417. These amounts do count as taxable income, which means you won't see the full amount. That said, some employers offer their own prospective parental leave benefits, which could help bridge the gap, providing you with additional income and your employer with a tax break or credit. Budgeting before the baby arrives Understanding what you can expect to receive from your EI government benefit is the first step to creating your budget. Once you have a reliable number you can expect from EI, you can create a plan to cover any additional resources you may need to cover bills and basic living expenses. 1. Estimate your EI income and compare it to your current spending Use the Government of Canada's EI benefits calculator to get a rough estimate of what your weekly payments will be. Then, compare that number to your current monthly expenses to identify any potential shortfalls. Knowing your 'leave income' in advance helps you determine how much you may need to cut back or save ahead of time. 2. Build a parental leave emergency fund Ideally, you should aim to save enough money to cover three to six months' worth of essential expenses. Start putting aside money each month before the baby arrives. Even a small, consistent contribution can make a big difference as you prepare for a newborn. 3. Reduce or eliminate non-essential expenses Take a close look at your spending and trim where possible. Cancel unused subscriptions, limit takeout, and postpone big-ticket purchases. Prioritize needs over wants, especially as baby-related expenses begin to take up more space in your budget. The goal is to keep your finances manageable while still enjoying time with your new child. Long-term financial considerations In addition to saving up and budgeting for your basic parental leave, adding a new member to the family will come with a host of other long-term financial implications, such as: Your child's clothing School supplies Furniture, bedding, and room supplies Food and snacks Childcare expenses while they're too young for school Although you don't need to budget for these specific expenses immediately prior to your parental leave, I do encourage new parents to devote some of their time off to create a financial plan for the future. Once you get back into the daily rhythm of work, life, and caring for your child, planning for the future can become more difficult. Whether your goal is to create more disposable income, reduce your living expenses, go back to school, or start a small business, it's easier to do this while you're rested and relaxed rather than after you get back to the grind. Final thoughts Thanks to EI parental leave benefits, eligible parents-to-be are entitled to a portion of their pre-leave income. This benefit payment, combined with the right budgeting skills and savings, can provide new parents with the stress-free time they need to forge a lasting bond with their new child. Planning ahead (even as early as nine months ahead) will give you a better chance to set you and your family up for success and allow you to take as much time as you need.
Forbes
5 days ago
- Business
- Forbes
Is It Time To Hire A Financial Planner? Here's How To Know
Let's talk about something that can feel a little awkward: asking for help with your finances—especially when it comes to planning for retirement. For a lot of people, hiring a financial planner feels like admitting defeat. 'Shouldn't I be able to figure this out on my own?' Maybe. But the truth is, just like you'd hire a contractor to renovate your kitchen or a mechanic to fix your car, there comes a point when bringing in a pro is not just smart—it's necessary. Here are a few signs it might be time to bring a financial advisor or investment manager into your corner. Maybe retirement is five years away. Maybe it's right around the corner. Either way, when it starts to feel like more than just a far-off dream, it's time to get serious about your plan. A financial advisor can help you turn vague goals into a clear strategy—and help make sure you don't overlook something important. One of the most common questions I hear is: 'Am I on track?' And honestly, it's a great question. But the answer isn't always simple. A financial planner can look at your full picture—income, expenses, investments, insurance, taxes—and help you figure out whether your current path gets you where you want to go. If you've got 401(k)s from different jobs, IRAs, brokerage accounts, or even rental properties, it might be time to call in a professional. An advisor can help consolidate, organize, and align your investments with your retirement goals—and potentially uncover efficiencies that save you money along the way. Whether you're a DIY investor or someone who's always been a bit hands-off, retirement planning requires a shift in strategy. It's not just about growing wealth anymore—it's about protecting it and making it last. A financial planner or investment manager can help build a portfolio designed for income, not just accumulation. Retirement isn't just about the money you've saved—it's about how you use it. That includes thinking through tax-efficient withdrawal strategies, Medicare and long-term care planning, and how you want to pass along assets to your loved ones. These aren't decisions to make on the fly. This one might be the most important. If you're losing sleep wondering if you've missed something, or second-guessing every financial move, that's your gut telling you it's time for support. A trusted advisor offers more than financial guidance—they offer confidence and clarity. You don't have to go it alone. In fact, the best time to hire a financial advisor is before you feel overwhelmed. It's about being proactive, not reactive. Whether retirement is a decade away or right around the corner, having someone in your corner can make all the difference. As always, stay healthy, happy, and on track toward a retirement that's truly yours.
Forbes
7 days ago
- Business
- Forbes
Easy Asset Allocation: How Much To Invest In Stocks Vs. Bonds
Asset allocation is the composition of your investment portfolio across different asset types and ... More classes, such as stocks and bonds. Stocks and bonds are two headlining ingredients in a successful investment account. Most investors should have both, but determining the right amounts to invest in stocks vs. bonds can be confusing. Investing experts will say your asset allocation strategy defines how much you invest in different categories—advice that can also be confusing if you're new to the lingo. Fortunately, asset allocation is easy to understand and, with the right resources, you can quickly define a stock-to-bond mix that works for you. Asset allocation is the composition of your portfolio across different types of investments, such as stocks, bonds, real estate and precious metals. It is normally expressed in percentages that add up to 100, such as 50% stocks and 50% bonds. The percentages represent the dollar value of each asset type relative to the dollar value of the whole portfolio. Being strategic about your asset allocation has several benefits: Consulting with a financial advisor is the most thorough way to determine how much you should invest in stocks vs. bonds. An experienced advisor can talk through your investment goals, risk tolerance and timeline to determine an appropriate allocation strategy. However, if you prefer the DIY approach, you still have options. You can use your age to set your asset allocation with the rule of 110, you can copy a lazy portfolio or you can invest in an asset allocation fund. The rule of 110 is a simple math problem that defines much to invest in stocks vs. bonds. To us the rule, subtract your age from 110. The answer is your age-based stock allocation. If you are 35, the rule of 110 recommends investing 75% of your portfolio's value in stocks and 25% in bonds. As you age, the rule of 110 advises a gradual decrease in your stock holdings to lower your risk over time. The advantages of the rule of 110 are: The disadvantages of the rule of 110 are: Lazy portfolios are defined allocations you can implement with low-cost funds. There are many lazy portfolio, ranging from simple to complex. Here are some examples: The advantages of lazy portfolios are: Lazy portfolios have similar disadvantages to age-based allocations: Asset allocation funds follow a stated composition strategy, such as 80% stocks and 20% bonds. The fund managers decide which investments will fulfill that strategy, so you don't have to. Your job is to choose a fund with an allocation, strategy and management team you like—and then invest. Three popular asset allocation mutual funds are: The advantages of asset allocation funds are: The disadvantages of asset allocation portfolios are: Following a strategic asset allocation plan can support higher returns over time, because you are managing risk and minimizing emotional decision-making. Remember that stocks provide growth potential but they can lose value quickly, while bonds deliver income with more stable pricing. The rule of 110 provides an easy guideline on a stock-t0-bond mix that's age-appropriate. Alternatively, if you expect your risk tolerance to remain unchanged over time, implement a lazy portfolio or invest in an asset allocation fund. The important thing is to invest in some mix of stocks and bonds, starting now. You can always adjust your allocation slightly as you gain confidence with your investing practice.
Yahoo
26-05-2025
- Business
- Yahoo
These 4 money habits can help you feel more secure, says this financial advisor
Young people can feel hopeless about saving money as living costs keep rising. A financial advisor says it's tough out there, but there are small changes you can make. Kate Norris recommends budgeting and paying yourself first to feel more financially secure. It's a tough world right now for young people trying to save money. Grocery prices and rents keep rising, and even fairly financially stable Gen Zers can feel hopeless and worse off than they truly are, thanks to "money dysmorphia." Many are "just trying to keep their head above water," Kate Norris, a certified financial planner at Sun Life, told Business Insider. "Sometimes at the end of the month, you've paid all the bills, the groceries, and there's not a lot left over," she said. "It is tough, I get it." Norris said there is a widespread lack of financial literacy among all generations, and not just Gen Z. When it comes to young people figuring out their future, she has these four key pieces of advice. Norris said her first piece of advice is to set up automatic payments to a savings account at the start of each month. "Once it's out of the account, you're less tempted to spend those surpluses," she said. "Don't overthink it — just get the money somewhere. You might need it in an emergency sooner than later." Norris said people of all ages can lose track of the money inflows and outflows to their accounts, which is why budgeting is essential. "You're like, oh, I budget $500 for groceries, and then it turns out it's $800, well, then we can't really do any cashflow planning or budgeting to know what's left over," she said. Many banks have services to help you budget, Norris said, and categorize your expenses, which can help you feel more in control. "Taking time to actually look at those three to six months of expenses and saying, Where is the money going? What am I spending?" Norris said. "Once you've created that habit early on, I think it sticks with you." Norris said it's a good idea to be very aware of consumer debt rather than just seeing it as a number you're disconnected from. People are drowning in car debt, for example, not realizing how much interest they are paying over time. "It's not just about your monthly payment — what is the debt? What does that debt mean for your net worth?" Norris said. "If you actually break it down, you could be spending $10,000 in that time period on interest." It's better to assess what the debt looks like over time for your long-term situation, rather than thinking about the individual monthly payments, Norris said. Many people struggle with delayed rewards, which can make saving money so difficult. "It's like we can't see that future we want, so we gratify ourselves now with what's in front of us," Norris said. "Or you set up Apple Pay and credit cards on your phone and it's just like tap, tap, tap." This is how people live beyond their means and fall further into debt, she said. You can take small steps toward being more frugal, and it starts with seeing your net worth grow, even if it's just by $100 per month. "This magic of compound interest and compounding growth says that if you just put $100 away today, that could be a huge amount at retirement," Norris said. "Versus if you start in 20 years from now, when you might have to save £1,000 a month." If you make these small changes, you can spend the rest of your paycheck "guilt-free," Norris said. "I think a lot of people are feeling a little bit in despair with the world and the interest rate and the economy. But our grandparents went through this, and it's a cycle, so keep pushing forward." Read the original article on Business Insider 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
