Latest news with #financialdecisions
Yahoo
4 days ago
- Automotive
- Yahoo
6 New Luxury SUVs That Are Bad Investments for Retirees
When it comes to retirement, financial decisions matter more than ever, especially big-ticket purchases like a new vehicle. While luxury SUVs may offer style, comfort and cutting-edge features, not all of them are practical for retirees. On top of the purchase price, there are surprise costs that can eat into a retiree's budget. Read Next: Check Out: Here are six new luxury SUVs that may look appealing for retirees but could end up being a bad investment over the long run. Alan Gelfand, German car expert and owner at German Car Depot in Hollywood, Florida, noted that these vehicles look great, but they'll eat into your retirement savings. He explained that the air suspension system will likely start to fail, and the repairs can get pricey, especially when the warranty expires. 'The electrical systems are nightmarishly complex,' Gelfand said. 'A door handle malfunction requires the replacement of a control module that costs $800. The repair costs for infotainment system failures amount between $2,500 and $3,500.' Be Aware: The Maserati Levante, a luxury crossover SUV with sleek coupe-like design and a powerful engine, certainly turns heads. However, its sharp depreciation means you're unlikely to recoup much of your investment when it comes time to sell. 'The Levante experiences such rapid depreciation that it surpasses most luxury SUVs with a 60% to 70% value drop in three years,' Gelfand explained. Maintenance costs are also pricey, especially brake jobs. Gelfand also pointed out that customers often experience lengthy delays for basic components, as supplies are often limited to main urban areas. The BMW X7 may appeal to luxury SUV enthusiasts, but it's far from retiree-friendly. According to Gelfand, the twin-turbo V8 engine requires premium fuel, which can get costly. It's also known to have electrical issues. 'Each minor issue in the complex electronic systems results in costly diagnostic fees from the beginning,' Gelfand explained. The Mercedes-AMG GLS 63 is a powerful SUV, but it's overkill — and expensive — for retirees. 'The maintenance requirements of the AMG vehicle are strict since brake fluid needs to be changed every two years,' Gelfand said. It's also a gas guzzler and demands high-grade fuel. 'Retirement drivers who stay near home need to bear supercar maintenance expenses because they will never benefit from these features,' he said. According to Gelfand, the supercharged V8 Escalade-V is a maintenance disaster. 'The GM electronics in these vehicles experience reliability problems and supercharger rebuilds demand prices ranging between $6,000 and $8,000,' Gelfand explained. 'Older passengers will find the driving experience of this vehicle to be too much like a truck.' More From GOBankingRates 6 Popular SUVs That Aren't Worth the Cost -- and 6 Affordable Alternatives This article originally appeared on 6 New Luxury SUVs That Are Bad Investments for Retirees
The National
29-05-2025
- Business
- The National
Knowing the future may not make you a better investor
We have all, at some point, wished we could see into the future – especially when making important financial decisions. What if you could read tomorrow's headlines today? Would you make better investment choices, avoid downturns, and secure your future with ease? It turns out, perhaps not. A study by Elm Wealth tested this idea with a group of 118 finance-savvy participants in November 2023. They were each given a sum of money and the front page of the next day's Wall Street Journal. Armed with a real-life glimpse into the future, they were asked to make trading decisions. The outcome? About half of them lost money. One in six went bankrupt. On average, their returns were a modest 3.2 per cent. Not exactly the stuff of dreams. The mirage of perfect information This thought experiment revealed something important. Knowing what will happen tomorrow is not the same as knowing what to do about it. Many of the participants correctly predicted the market's direction. The trouble was not in the information – they had that in spades – but in how they responded to it. Some bet too heavily on a single piece of news. Others hesitated or spread themselves too thin. The problem was not just guessing right – it was knowing how much to stake and when. It is a little like knowing that it's going to rain, but not knowing whether to take a raincoat, delay your journey, or cancel your weekend plans altogether. There is a lesson here for all of us. Financial success is not about reacting to headlines, but about having a plan that holds up whether the news is good, bad, or baffling. Planning in an uncertain world We tend to overvalue prediction and undervalue preparation. When it comes to money, the calmer, steadier approach often wins over the clever, reactive one. A solid financial plan does not need tomorrow's newspaper. It accounts for uncertainty. It balances short-term needs with long-term goals. It includes appropriate risk, careful budgeting, thoughtful investing and regular reflection. Imagine you are crossing a large body of water. Would you rather have a slightly better forecast for the next few hours, or a boat that is watertight, a reliable compass and enough supplies to make the full journey? The investors in Elm's study were all given the weather forecast. But most of them had no boat. The allure and cost of short-term thinking There is nothing wrong with wanting to improve your financial position. But chasing certainty often leads to poor decisions. History shows us time and again that even professionals struggle to consistently time the market. We have met investors who spent years jumping in and out of markets, always in search of the next big insight – only to realise they were chasing shadows and leaving returns behind. The more useful question is not 'what will markets do next?' but 'how can I build a life that does not depend on knowing?' Small, thoughtful steps beat grand predictions Instead of trying to predict the next turn in the road, focus on laying strong foundations: Save regularly, even when markets are dull or difficult. Diversify – not just across assets, but across time. Revisit your plans annually, not because you are expecting disaster, but because life evolves. Keep some margin in your finances – room for error, room for grace. Add buffers, not bravado. That way, you are not relying on a lucky guess or a perfect moment. You are building resilience – the kind that helps you stay on course even when the headlines shout. The real goal is peace of mind In the end, what most people want from their finances is not brilliance – it is freedom, stability and peace of mind. And you do not need a crystal ball for that. What you need is a financial approach that makes sense for your values, your priorities and your unique journey. So, the next time you wish you could see the future, pause. Instead of trying to outguess the world, ask yourself: What would it mean to be ready, no matter what happens?
Times
11-05-2025
- Lifestyle
- Times
How to stop your darling children wrecking your finances
Having kids was easily the worst financial decision of my life. When they're not eating me out of house and home, it's the cost of clubs, shoes, lost school jumpers and broken stuff that makes me weep silently into my cup of tea each morning. But we all know about these costs — you would be naive if you didn't. There are a few things, however, that I wish I had known before embarking on this family project. When I went on maternity leave for the first time back in 2016 I had saved up for it, but money was still looking a bit tight. So I thought: shall I just pause my pension for a year? It didn't seem like much to lose in
Yahoo
11-05-2025
- Business
- Yahoo
Behavioral Finance 101: 7 ways your brain can sabotage your finances
Have you ever avoided checking your bank account balance because you're afraid of what you'll see? Or splurged on an impulse purchase against your better judgment? You're not alone. Our emotions can take over and lead us to make questionable money decisions. Understanding why this happens — and how to prevent it — begins with understanding behavioral finance. This embedded content is not available in your region. Behavioral finance is a field of study that explores how psychological factors influence financial decisions. 'It explains why people often make financial decisions that defy logic — like overspending, avoiding bills, or staying in debt cycles — not because they're irresponsible, but because emotions like fear, shame, and stress are driving the behavior,' said Nathan Astle, a certified financial therapist. 'It's about understanding the 'why' behind our choices, not just the numbers.' People tend to have certain cognitive biases, which can negatively impact their financial decisions. Common biases include: This is the psychological tendency for individuals to strongly prefer avoiding losses over achieving equivalent wins. For example, losing $100 typically feels more emotionally painful than the pleasure felt from gaining $100. 'Our decisions and actions with money tend to be driven by the fear of losing it rather than taking the risks needed to grow it,' said Dr. Dan Pallesen, a certified financial therapist. That often causes people to make overly conservative, or even irrational, decisions with their money. For instance, you might hold on to a stock that's losing value longer than you should to avoid realizing a loss, even though you'd be better off selling it and reinvesting the money in a stock that's performing well. Overconfidence bias is the belief that you know more about a particular subject than you really do. This can lead to making uninformed financial choices, such as taking on too much investment risk without proper research or ignoring a financial advisor's recommendations. In other words, overconfidence bias can lead to expensive mistakes because your decisions are based more on self-assurance than objective analysis or hard evidence. This is a cognitive bias that causes you to rely too heavily on the first piece of information you receive, and it serves as the 'anchor' for all future decisions. There are several ways anchoring bias can play out regarding your finances. For example, let's say you want to purchase a home, and you see a listing for a house with a recent price reduction. You might feel compelled to put an offer in on this particular home because you're getting a good discount and saving money. However, further research may uncover that the property is still overpriced for the market or requires costly repairs that would cancel out any perceived savings. As an investor, anchoring bias can occur when you focus on a stock's initial purchase price or recent highs, influencing you to hold a losing investment in hopes that it will rebound. It's human nature to do something simply because everyone else is, like buying the latest iPhone when your current phone works just fine, or waiting in line for hours to try a new restaurant because it's gone viral on social media. This is known as herd mentality. But when it comes to your finances, hopping on the bandwagon can cost you. For example, during a stock market rally, people may rush to invest out of fear of missing out, and during a downturn, they might panic-sell just because others are — regardless of whether it makes sense for their investment portfolio or risk tolerance. Familiarity bias happens when people prefer things they recognize or understand easily versus situations that are new or complex. That's not always a bad thing, but when it comes to finances, familiarity bias can lead people to ignore better options in favor of what feels comfortable. For example, you might stick with a traditional savings account from the national bank where you opened your first account 20 years ago, even though you could earn 10 times more interest on your savings by switching to an online bank. This refers to the habit of treating money differently depending on where it came from. For example, you might receive your biweekly paycheck and immediately divide it into various budgeting categories to avoid overspending. But when you get your end-of-year bonus or tax refund, you're more likely to spend that money freely without factoring it into your budget — even though it's still income you worked for. The gambler's fallacy is the belief that past events influence the probability of future outcomes in random situations. It's based on the concept of a gambler who's had several consecutive losses and believes they're "due" for a win — so they increase their bet, even though the odds haven't actually improved. For investors, this can mean holding onto a stock because a series of losses means it is likely to rebound soon, or selling a stock because it's been up too long and is likely to plunge soon. Ultimately, this is due to the nature of human emotions and a deeply rooted way of processing them to protect ourselves. 'Our minds are not wired for what we would consider good money decisions today. Our minds are wired for survival,' Dr. Pallesen explained. 'Our ancestors survived with minds that helped them avoid danger and binge the resources available to them in the moment. It is no different today with money.' Allowing emotions to take the driver's seat when managing money is a dangerous game. It can impact your spending, saving, debt management, investment decisions, and more — ultimately keeping you from reaching your financial goals. But if emotions get in the way of sound financial decisions, it's not entirely your fault. 'We're not rational creatures when it comes to money; we're emotional,' Astle said. 'Many people carry 'money stories' shaped by early experiences, cultural expectations, and even generational trauma.' For example, Astle said, if you grew up watching your parents argue about money, you may subconsciously avoid budgeting as an adult. However, you can take steps to change these behaviors. 'Real financial change starts when we recognize those patterns and create space for new, healthier behaviors,' Astle noted. We asked experts for their best tips on overcoming emotions and behavioral biases to make smarter financial decisions. Here's what they said. If you're saving for a specific goal, such as your child's college tuition or a family vacation, name your savings account to reflect it. That way, whenever you log into your bank account, you get an extra boost of motivation to continue saving for that goal. Pallesen said visual cues are also a good way to inspire you to save and remind you of what's important. For instance, look at pictures of your kids before discussing household finances with your partner. Tape a picture of your favorite hobby to your computer monitor as a reminder of what you're looking forward to in retirement. Create a vision board with a friend to see and reinforce the things and values you're striving for in your life. It's common to focus on losses, but try tracking your wins as well. 'A lot of people will monitor their account balances, but they are often reviewing things that are out of their control, like stock market movement,' Pallesen said. 'Instead, track your savings rate and compare it against your past.' For example, he said, if you're currently saving 10% of your income this year, see if you bump that to 15% by the same time next year. Then track your progress in a spreadsheet or journal. 'Tracking and seeing progress is a great way to build momentum of healthy financial habits,' Pallesen added. If you're debating an impulse buy, take a beat and put the purchase on pause for 24 hours. This gives you time to consider why you feel you need it and whether you can truly afford it. After some time, you may decide that the purchase isn't worth it, helping you avoid making an impulsive decision you'll regret later. Don't be afraid to seek help from a trusted friend or financial therapist to help you navigate complicated feelings related to your finances. They may be able to help you see things from a different perspective and offer solutions to help you overcome these hurdles. It's common to fear the unknown, but avoiding your bank account balances and budget will not help you feel secure in your money management. 'Make time for a short, guilt-free check-in with your finances,' Astle said. 'Light a candle, grab a snack — remove the dread and replace it with consistency and care.' Read more: 5 psychological money hacks to cut spending and increase savings
Daily Mail
09-05-2025
- Entertainment
- Daily Mail
Twist in Liam Payne inheritance drama as son Bear might not inherit One Direction star's £24million fortune until he's 25 as Cheryl 'wants to protect him'
Liam Payne 's son Bear could be blocked by his mother, Cheryl Tweedy, from inheriting his father's multi-million pound fortune until he is at least 25, a source has claimed. Yesterday, it was revealed the 31-year-old One Direction singer, who fell to his death from a hotel balcony at the CasaSur Palermo Hotel in Buenos Aires, Argentina on October 16 last year, had died without a will. In total, the popstar left £28,595,000, though this was reduced to £24,280,000 after his expenses and debts were paid. When someone dies without leaving a will, they are declared intestate - and if they are unmarried but were a parent, as Liam was, the estate is shared between any children. Court documents also revealed Payne had granted power of administration of his estate to his ex-partner Cheryl, who is the mother of his eight-year-old son Bear. And now those closest to Cheryl revealed the 41-year-old has consulted with the trustees of Liam's estate and wants to place the money aside until little Bear is old enough to make 'informed' financial decisions. A source close to the Promise This singer divulged she wanted to 'protect Bear' with her reported decision to stop him receiving the huge sum until he is 25 years of age - or even older. 'She feels she wants Bear to be of an age where he can make informed decisions about the money,' the source told The Sun. 'She wants him to still have ambition and the drive to succeed without the back-up of the money — and she's aware that people may want to befriend him because they are aware of his situation.' They claimed the Girls Aloud singer has since sought advice from trustees and has decided the fortune will be invested until her son, who is now only eight-years-old, is of a 'right age' to start receiving it. It comes after those close to the former XFactor judge explained how Liam's £24million legacy could whittled down to £12million due to inheritance tax. Describing it as 'still an incredible amount of money', they added: 'Cheryl wants to do everything she can to protect Bear and make sure the money comes to him when the time is right.' Richard Bray, a top music lawyer with a track record of representing stars including Ed Sheeran, was also named as administrator of Payne's estate. MailOnline has approached Cheryl 's representatives for comment. It comes after it emerged the 31-year-old had made sure his son would 'never want for anything' in the event of his death. Last year, the Daily Mail's Katie Hind revealed the One Direction singer had made careful arrangements for his son's financial future - having cannily invested in property, including a mansion in Buckinghamshire. Friends have told how that some years ago Liam made plans for his money to go to his only child in the event of his death. This was despite the fact that there would often be thousands of miles between them, as the singer spent a lot of time in the US and most of their interactions were via video calls on FaceTime. A source close to the late singer told the Mail: 'Liam had some very sensible people around him for a time and he adored Bear so much. He always wanted to do the right thing by him financially. 'It is a small consolation that Bear will never want for anything, that he will at least benefit from that.' Payne reportedly previously paid £357,000 in 2015 for a new home in the West Midlands for his parents Geoff and Karen, while also investing in his own properties. Meanwhile, the star's family and friends raised a huge amount of money for a children's cancer charity following his death. It was revealed that more than £31,000 was generated for Great Ormond Street Hospital after people attended his funeral, with fans donating a further £1,808 through online donations in his name. The money will go towards building a new children's cancer unit at the hospital in London. Meanwhile, the latest documents have indicated Liam's girlfriend Kate Cassidy could receive nothing - despite her revealing their plans to marry shortly after his death. The news the former boyband member died without leaving a will, comes six months after fans worldwide were left devastated by his sudden death in Argentina. His medical cause of death has been confirmed to be 'polytrauma', a term which means a person has multiple traumatic injuries to their body. In the aftermath Liam's friend Rogelio 'Roger' Nores, hotel operator Gilda Martin and receptionist Esteban Grassi faced manslaughter charges, although these were later dropped. Hotel employee Ezequiel Pereyra and waiter Braian Paiz have been charged with supplying cocaine to the singer. Payne skyrocketed to superstardom alongside his former One Direction bandmates, Niall Horan, Zayn Malik, Harry Styles and Louis Tomlinson. The five were brought together by Simon Cowell and former judge Nicole Scherzinger who saw their potential as a group on XFactor. But the 1D hyseria soon dwarfed the show, but despite the adoration, the band ultimately finished in third place on the show, The band later signed to SImon Cowell's Syco for a reported £2million Syco. They later split in 2016 following Zayn's departure. Payne launched a successful solo career, releasing his debut solo album LP1 in December 2019, which included the songs Polaroid and Strip That Down featuring Quavo, and the track For You with Rita Ora. The popstar and British pop sensation Cheryl Cole announced they were expecting their first child Bear Grey together and later welcomed him into the world on March 22, 2017. The parents later split in 2018. Following his tragic death, Cheryl took to Instagram to reveal her anguish as she tried to 'navigate this earth shattering event'. Her statement read: 'As I try to navigate this earth shattering event, and work through my own grief at this indescribably painful time. 'I'd like to kindly remind everyone that we have lost a human being. 'Liam was not only a pop star and celebrity, he was a son, a brother, an uncle, a dear friend and a father to our seven year old son. 'A son that now has to face the reality of never seeing his father again.' Despite struggling with drug and alcohol issues after leaving One Direction, Payne was careful to invest in property. Liam's £3.2million home in Buckinghamshire, which he bought to be closer to Bear, went up for sale a month before his sudden death. He had bought the five-bedroom mansion in Chalfont St Giles in November 2021. He had moved into a $9,500-a-month mansion in Florida alongside Kate Cassidy just weeks before he died. It sits on six acres of land and has a swimming pool, a stable and an annex, had been listed for £3.25 million. The property appeared to have disappeared from the site before a sale went through. WHAT HAPPENS IF SOMEONE DIES WITHOUT LEAVING A WILL? When someone dies without a will in England and Wales, they are said to have died intestate. Their estate is then shared out according to a set of rules known as the laws of intestacy. This means that someone dying without drafting a will could have their money and property could be distributed in a way they would not have chosen. It can also potentially cause problems for partners if there has been no marriage or civil partnership, as they cannot inherit unless included in a will. If married or in a civil partnership with no children, the surviving partner inherits everything. This is also the case if the person who died had stepchildren, as they do not stand to inherit anything under the rules of intestacy. If married or in a civil partnership and with children, the surviving spouse or civil partner inherits everything up to the value of £322,000, plus all personal possessions. If the estate's value is over £322,000, the partner also inherits half of everything that remains. The rest is then shared equally between their children. If unmarried with children or grandchildren, the estate is shared equally between the children, not including any stepchildren. If unmarried and without children, the estate is inherited by the deceased's close relatives in the following order of priority: Parents, brothers and sisters, half-brothers and half-sisters, grandparents, aunts and uncles, cousins. And when there are no surviving relatives, the estate passes to the government. Probate is a legal document that is used to show banks, the Land Registry and other organisations that someone has the authority to deal with an estate. Once it has been approved, that person is free to sell property, pay off debts, close accounts and distribute assets in accordance with the will. In the majority of cases, the person who has to deal with probate is the one who stands to inherit the most under the rules of intestacy. This person is known as the administrator.
