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Yahoo
a day ago
- Business
- Yahoo
3 things you can do now to get a bigger Social Security check in retirement
Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. Social Security is constantly changing with updates to tax maximums, cost-of-living adjustments (COLAs), exemptions, and more. Some worry that increased payouts could deplete the program by the time today's 30- and 40-somethings retire. The good news is that Social Security is more resilient than it seems. As long as payroll taxes are collected, funds will remain, though the question is how much will be left. Without changes, Social Security will pay out more than it takes in, with a projected shortfall by 2035. However, this doesn't mean checks will stop; they'll just be smaller. The most common advice from financial planners is to save for retirement as if Social Security doesn't exist, though this isn't feasible for everyone who views it as part of their retirement plan. So, what can you do now to maximize your benefits? Don't miss Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Max your earnings Make more money — it's a no-brainer, right? Maximizing your income is key to boosting your Social Security benefits, as they're based on your highest 35 years of indexed earnings. Higher earnings, especially during peak years, directly impact your retirement check. Advocate for raises, add extra income streams and track your SSA statement annually to ensure accuracy and replace lower-earning years. Increasing your earnings and lowering your expenses are key steps in building a solid retirement plan. But navigating the complexities of your financial situation can be overwhelming, especially if you're unsure how to optimize your income for the future. That's where a professional can you can find the best advisor for your needs — both in terms of what they can offer your finances, and what they'll charge to work for you. is a free service that helps you find a financial advisor who can co-create a plan to reach your financial goals. By matching you with a curated list of the best options for you from their database of thousands, you get a pre-screened financial advisor you can trust. You can then set up a free, no obligation consultation to see if they're the right fit for you. Delay gratification Maximizing your Social Security benefits often means delaying them as long as possible. If you're in your 30s or 40s, focus on creating a financial plan that reduces your reliance on Social Security in the early years of retirement. For instance, having substantial cash reserves beyond your emergency fund can allow you to cover expenses without tapping into Social Security right away. This provides flexibility and ensures your benefits grow to their maximum potential. If you're willing to park your money for at least a year, you can get a rate of return over ten times higher than a typical high-yield savings account with a certificate of deposit (CD). A CD locks in your funds for a set period, providing stability and guaranteed returns, which the stock market cannot promise. Read more: Nervous about the stock market? Gain potential quarterly income through this $1B private real estate fund — even if you're not a millionaire. Find the right account for your needs Taxable brokerage accounts are an excellent resource for early retirement withdrawals, though they are less tax-efficient due to capital gains and dividend taxes. Tapping into these accounts can bridge the gap between leaving the workforce and accessing other retirement funds, helping you preserve tax-advantaged accounts like 401(k)s and IRAs for later use. While you can claim Social Security as early as 62, waiting until your full retirement age (around 67 for most people) or even until age 70 can significantly increase your monthly benefit. Each year you delay past your full retirement age adds about 8% to your payments. For those retiring before 70, relying on other resources like a 401(k) or IRA can help cover living expenses while your Social Security benefits grow. For retirees seeking stability and diversification, a gold IRA offers a way to invest directly in precious metals. One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold. Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties. To learn more, you can get a free information guide that includes details on how to get up to $10,000 in free silver on qualifying purchases. What to read next Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 simple ways to grow rich with real estate if you don't want to play landlord. And you can even start with as little as $10 Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
7 days ago
- Business
- Yahoo
3 steps to save money when you're tempted to spend
Why do so many of us struggle to save? Saving for the future can be difficult because of a cognitive bias known as hyperbolic discounting: our tendency to place greater weight on immediate satisfaction, even if focusing on the long term will have a greater payoff. This bias is why, when you get a raise, you may consider getting a new car—incurring a higher monthly payment—instead of sacking away more money each month for retirement and perhaps getting to retire several years earlier. Feeling stressed about finances can also get you off track with your savings. While some people respond to financial stress by saving more, others respond by spending more in order to regain feelings of control. Unfortunately, these shortsighted decisions on spending versus saving can have large effects on our ability to achieve our future goals, because of the enormous power of compound interest. So, let's talk about what you can do to keep saving when you feel the urge to give up. 1) Perform a goals audit Sit down and list what you are saving for. If needed, you can use techniques geared toward helping people find and articulate their financial goals. Then, consider how you might pair up your goals to boost your savings motivation. Research suggests the most motivating financial goals may be those relating to security (for example, retirement) or self-actualization (such as opening a business or contributing to charities). Consider how you may link some of your shorter-term goals to these bigger goals. For instance, you may decide to couple your 'savings for home repairs' with your desire to 'donate to charity' by committing to donate the excess you saved for repairs to your favorite nonprofit. By ensuring your goals are well-articulated and meaningful, you can always come back to them for a dose of motivation when you feel yourself wavering. 2) Assess what you can (and should) save When we are feeling stressed by finances, we may convince ourselves that all our current spending is more of a priority than our saving. So, start by doing a comprehensive review of your budget. How much money comes in each month, how much goes out, and where does it go? If you don't find a monthly surplus, that indicates you may need to go through your spending and decide where you can spend less. I recommend giving yourself a reality check by calculating how much you need to save each month to achieve your goal in the time you want to. It's especially eye-opening to calculate how saving more or less each month can affect your ability to retire. Remember, it's OK if you cannot save as much in this season of your life as you'd like. But by saving what you can and coming back to this practice when your circumstances change, you can still make serious progress toward your goals. 3) Take it out of your hands Now, make your commitment as easy as possible by automating the process. If you have to decide every month to transfer money into your IRA or savings, the chances are that it won't happen at some point. You'll forget, put it off, or maybe decide that this is the month for a treat instead. Research suggests that automating savings can help people save more than they otherwise would, so taking the time to automate your savings now can help you stick with your plan for months—or years—to come. ____ This article was provided to The Associated Press by Morningstar. For more personal finance content, go to Danielle Labotka, Ph.D., is a behavioral scientist at Morningstar. Danielle Labotka Of Morningstar, The Associated Press 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
The Independent
7 days ago
- Business
- The Independent
3 steps to save money when you're tempted to spend
Why do so many of us struggle to save? Saving for the future can be difficult because of a cognitive bias known as hyperbolic discounting: our tendency to place greater weight on immediate satisfaction, even if focusing on the long term will have a greater payoff. This bias is why, when you get a raise, you may consider getting a new car—incurring a higher monthly payment—instead of sacking away more money each month for retirement and perhaps getting to retire several years earlier. Feeling stressed about finances can also get you off track with your savings. While some people respond to financial stress by saving more, others respond by spending more in order to regain feelings of control. Unfortunately, these shortsighted decisions on spending versus saving can have large effects on our ability to achieve our future goals, because of the enormous power of compound interest. So, let's talk about what you can do to keep saving when you feel the urge to give up. 1) Perform a goals audit Sit down and list what you are saving for. If needed, you can use techniques geared toward helping people find and articulate their financial goals. Then, consider how you might pair up your goals to boost your savings motivation. Research suggests the most motivating financial goals may be those relating to security (for example, retirement) or self-actualization (such as opening a business or contributing to charities). Consider how you may link some of your shorter-term goals to these bigger goals. For instance, you may decide to couple your 'savings for home repairs' with your desire to 'donate to charity' by committing to donate the excess you saved for repairs to your favorite nonprofit. By ensuring your goals are well-articulated and meaningful, you can always come back to them for a dose of motivation when you feel yourself wavering. 2) Assess what you can (and should) save When we are feeling stressed by finances, we may convince ourselves that all our current spending is more of a priority than our saving. So, start by doing a comprehensive review of your budget. How much money comes in each month, how much goes out, and where does it go? If you don't find a monthly surplus, that indicates you may need to go through your spending and decide where you can spend less. I recommend giving yourself a reality check by calculating how much you need to save each month to achieve your goal in the time you want to. It's especially eye-opening to calculate how saving more or less each month can affect your ability to retire. Remember, it's OK if you cannot save as much in this season of your life as you'd like. But by saving what you can and coming back to this practice when your circumstances change, you can still make serious progress toward your goals. 3) Take it out of your hands Now, make your commitment as easy as possible by automating the process. If you have to decide every month to transfer money into your IRA or savings, the chances are that it won't happen at some point. You'll forget, put it off, or maybe decide that this is the month for a treat instead. Research suggests that automating savings can help people save more than they otherwise would, so taking the time to automate your savings now can help you stick with your plan for months—or years—to come. ____ This article was provided to The Associated Press by Morningstar. For more personal finance content, go to Danielle Labotka, Ph.D., is a behavioral scientist at Morningstar.
Associated Press
7 days ago
- Business
- Associated Press
3 steps to save money when you're tempted to spend
Why do so many of us struggle to save? Saving for the future can be difficult because of a cognitive bias known as hyperbolic discounting: our tendency to place greater weight on immediate satisfaction, even if focusing on the long term will have a greater payoff. This bias is why, when you get a raise, you may consider getting a new car—incurring a higher monthly payment—instead of sacking away more money each month for retirement and perhaps getting to retire several years earlier. Feeling stressed about finances can also get you off track with your savings. While some people respond to financial stress by saving more, others respond by spending more in order to regain feelings of control. Unfortunately, these shortsighted decisions on spending versus saving can have large effects on our ability to achieve our future goals, because of the enormous power of compound interest. So, let's talk about what you can do to keep saving when you feel the urge to give up. 1) Perform a goals audit Sit down and list what you are saving for. If needed, you can use techniques geared toward helping people find and articulate their financial goals. Then, consider how you might pair up your goals to boost your savings motivation. Research suggests the most motivating financial goals may be those relating to security (for example, retirement) or self-actualization (such as opening a business or contributing to charities). Consider how you may link some of your shorter-term goals to these bigger goals. For instance, you may decide to couple your 'savings for home repairs' with your desire to 'donate to charity' by committing to donate the excess you saved for repairs to your favorite nonprofit. By ensuring your goals are well-articulated and meaningful, you can always come back to them for a dose of motivation when you feel yourself wavering. 2) Assess what you can (and should) save When we are feeling stressed by finances, we may convince ourselves that all our current spending is more of a priority than our saving. So, start by doing a comprehensive review of your budget. How much money comes in each month, how much goes out, and where does it go? If you don't find a monthly surplus, that indicates you may need to go through your spending and decide where you can spend less. I recommend giving yourself a reality check by calculating how much you need to save each month to achieve your goal in the time you want to. It's especially eye-opening to calculate how saving more or less each month can affect your ability to retire. Remember, it's OK if you cannot save as much in this season of your life as you'd like. But by saving what you can and coming back to this practice when your circumstances change, you can still make serious progress toward your goals. 3) Take it out of your hands Now, make your commitment as easy as possible by automating the process. If you have to decide every month to transfer money into your IRA or savings, the chances are that it won't happen at some point. You'll forget, put it off, or maybe decide that this is the month for a treat instead. Research suggests that automating savings can help people save more than they otherwise would, so taking the time to automate your savings now can help you stick with your plan for months—or years—to come. ____ This article was provided to The Associated Press by Morningstar. For more personal finance content, go to Danielle Labotka, Ph.D., is a behavioral scientist at Morningstar.
CBS News
04-08-2025
- Business
- CBS News
Is a fixed or variable annuity the better choice this August?
Annuities aren't exactly flashy, but these retirement tools have been quietly gaining popularity over the past year, and for good reason. With inflation ticking back up over the last couple of months and interest rates still elevated, and with stock market volatility becoming the norm rather than the exception, a large number of soon-to-be retirees are trying to find ways to better secure their retirement portfolios. And, many are turning to annuities, in particular, as a safe way to lock in guaranteed retirement income. But if you've started exploring your annuity options, you've likely run into a key question: Should you go with a fixed annuity or a variable one? After all, both annuity options are designed to provide long-term income, so they can both be worth considering as part of a well-balanced retirement portfolio. However, these two annuity options operate in very different ways, and in today's unusual economic climate, where questions about interest rates and inflation loom large, the distinction matters more than ever. So, is a fixed or variable annuity the smarter move this August? Here's how each product fits into today's climate — and how you can determine which one makes sense for your situation. Find out how to add an annuity to your retirement portfolio today. Both fixed and variable annuities have distinct advantages in today's market. The better option, though, depends largely on your risk tolerance, time horizon and how you view the current interest rate environment. If you're prioritizing safety and guaranteed returns, fixed annuities may offer a strong value proposition this month, largely due to the current interest rate environment. Because rates remain elevated, insurance companies are offering competitive fixed annuity yields right now, and it's easy to find fixed annuities with rates of 5.5% to 6.5% or higher. High rates aren't the only benefit of fixed annuities, however. These types of annuities function similarly to a CD: You invest a lump sum and receive a predictable, set rate of return for a specific period. That means there's no exposure to market or rate volatility, which can be comforting for near-retirees or conservative savers who want to lock in today's higher rates before they fall. In fact, many fixed annuities are outperforming traditional fixed-income options like Treasury bonds or high-yield savings accounts right now. And, the Fed has signaled that rate cuts may be coming later in the year, so locking in a solid guaranteed return this August could be a timely move. Learn more about annuities and the benefits of buying one now. Variable annuities, on the other hand, present a compelling alternative for those willing to accept market exposure in exchange for growth potential. Unlike fixed products that cap your returns, variable annuities allow you to participate in market gains through various investment sub-accounts, potentially delivering returns that far exceed what fixed rates can offer. And, while it may seem counterintuitive, the current high-rate environment actually strengthens the case for variable annuities. As rates decline, as is expected to happen later this year, the opportunity cost of choosing guaranteed returns over market-linked growth becomes more pronounced. Variable annuities also offer more flexibility in terms of investment options and income timing, allowing you to adjust your strategy as market conditions change. For younger investors or those with longer time horizons, variable annuities can provide inflation protection that fixed products simply cannot match. While a 5.5% guaranteed rate sounds appealing today, and while it can be a great rate over the long term, it's still important to remember that inflation can erode purchasing power over time. But variable products, particularly those with equity exposure, historically provide better long-term inflation hedging. If you're trying to decide whether a fixed or variable annuity is the better option for you, start by asking these key questions: There's not one annuity option that works best for everyone, especially in today's economic environment. Fixed annuities could be a strong play in August for those seeking guaranteed returns before interest rates potentially fall. Variable annuities, meanwhile, may appeal to those who want to tap into the market's upside and can tolerate the risk that comes with it. Whether you're approaching retirement or just trying to create future income streams, though, the key is choosing the annuity that aligns with your goals and risk comfort. And if you're considering either this month, now is a good time to shop around, because today's rates and market conditions won't last forever.
