Latest news with #retirementPlanning
Daily Mail
4 days ago
- Business
- Daily Mail
Now Rachel Reeves is coming for your PENSION: the Chancellor wants to get her hands on up to 87% of your life savings with a vicious new tax raid - here's how to stop her: ELIZABETH ANDERSON
Have you saved wisely, invested well and built up a healthy pension to enjoy in retirement and pass down to your loved ones? Then beware. Up to 87 per cent of it could be swallowed up in tax when you die once new inheritance tax rules are introduced in 2027, Wealth & Personal Finance can reveal in our new calculations.
Yahoo
25-05-2025
- Business
- Yahoo
Las Vegas senior asks Dave Ramsey what to do with $200K game show winnings — here's why he's wary of windfalls
Nancy, a senior from Las Vegas, says she recently won $200,000 after an appearance on a game show. Unsure what to do with the life-changing jackpot, she called into The Ramsey Show seeking advice. 'I'm 70 years old, that's more money than I've ever had,' she said in a clip posted May 11. But with great winnings come taxes. Nancy says she had about $145,000 left in prize money after paying roughly $55,000 in taxes. Now, the big question loomed: What should she do with this windfall? 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 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Here's what finance personality Dave Ramsey had to say. Nancy told Ramsey she and her husband are semi-retired, living on about $4,500 a month in Social Security, plus some part-time work where she earns up to $600 per month, and her husband brings in a couple of thousand dollars more. They recently downsized their home and owe $85,000 on the mortgage, which runs them $756 per month. Their total savings? Just over $200,000, including the game show winnings, which they've parked in a high-yield money market account earning 5.5% interest. Outside of home equity, that's their entire financial cushion. So, the big question was should Nancy pay off the house or keep the cash? Ramsey was quick to weigh in. 'If you had $600,000, I would tell you instantaneously write a check and pay off your house,' he said. 'If you had $100,000, I would say don't touch it, you would be starved.' In Nancy's case, Ramsey recommended she pay off the house, but only if she and her husband commit to the following strategy: Get on a tight, detailed budget. Start investing $1,000 to $1,500 per month in a mutual fund. Keep $30,000 in emergency savings Invest the leftover funds into a mutual fund as well. Read more: This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs Here's Ramsey's logic: Paying off the house would free up $756 per month. If the couple can get on a budget and squeeze about $750 more out of their monthly income, investing $1,500 per month, with an average annual return of 10%, would generate around $85,000 in four years, covering the amount used to pay off the mortgage. As for investing the rest of the couple's savings, let's say they're left with $75,000 after paying off the house and setting aside an emergency fund — assuming the same average rate of return as above, that amount would be close to $150,000 by age 77, and around $300,000 by age 84, not counting additional monthly contributions. 'Too many retirees have a paid-off house and no money to live,' Ramsey warned. 'You don't want to be digging up bushes in your yard for dinner.' If you suddenly come into a life-changing amount of money, you might be tempted to spend it. But you also will want to make sure it lasts so you don't end up going broke. Before making any major financial moves, make sure you understand the tax hit. Many windfalls aren't tax-free, so it's a good idea to get in touch with a licensed accountant. Figure out how much you're really walking away with before you start writing checks. Next, take a look at your debt. Any high-interest debt, from credit cards to personal loans, should be on the chopping block. That said, not all debt is created equal. Got a mortgage under 4%? It might be worth keeping for now, depending on your broader financial picture and how much you've got to work with. After all, you don't want to end up house-rich and cash-poor. Don't forget about safety. Boosting or building your emergency fund with three to six months' worth of expenses, parked in a high-yield savings account, can protect you from going further into debt in case your car breaks down or a pipe in your home bursts. Retirement accounts may also be top of mind. Consider setting one up, if you don't have one yet, and contributing the maximum amount yearly. A financial advisor can help set you up and invest for long-term growth so you can enjoy your golden years. At the end of the day, a financial windfall with the right plan can set you up for stability, freedom and maybe even a little fun. 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 Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead 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 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Yahoo
24-05-2025
- Business
- Yahoo
Las Vegas senior asks Dave Ramsey what to do with $200K game show winnings — here's why he's wary of windfalls
Nancy, a senior from Las Vegas, says she recently won $200,000 after an appearance on a game show. Unsure what to do with the life-changing jackpot, she called into The Ramsey Show seeking advice. 'I'm 70 years old, that's more money than I've ever had,' she said in a clip posted May 11. But with great winnings come taxes. Nancy says she had about $145,000 left in prize money after paying roughly $55,000 in taxes. Now, the big question loomed: What should she do with this windfall? 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 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Here's what finance personality Dave Ramsey had to say. Nancy told Ramsey she and her husband are semi-retired, living on about $4,500 a month in Social Security, plus some part-time work where she earns up to $600 per month, and her husband brings in a couple of thousand dollars more. They recently downsized their home and owe $85,000 on the mortgage, which runs them $756 per month. Their total savings? Just over $200,000, including the game show winnings, which they've parked in a high-yield money market account earning 5.5% interest. Outside of home equity, that's their entire financial cushion. So, the big question was should Nancy pay off the house or keep the cash? Ramsey was quick to weigh in. 'If you had $600,000, I would tell you instantaneously write a check and pay off your house,' he said. 'If you had $100,000, I would say don't touch it, you would be starved.' In Nancy's case, Ramsey recommended she pay off the house, but only if she and her husband commit to the following strategy: Get on a tight, detailed budget. Start investing $1,000 to $1,500 per month in a mutual fund. Keep $30,000 in emergency savings Invest the leftover funds into a mutual fund as well. Read more: This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs Here's Ramsey's logic: Paying off the house would free up $756 per month. If the couple can get on a budget and squeeze about $750 more out of their monthly income, investing $1,500 per month, with an average annual return of 10%, would generate around $85,000 in four years, covering the amount used to pay off the mortgage. As for investing the rest of the couple's savings, let's say they're left with $75,000 after paying off the house and setting aside an emergency fund — assuming the same average rate of return as above, that amount would be close to $150,000 by age 77, and around $300,000 by age 84, not counting additional monthly contributions. 'Too many retirees have a paid-off house and no money to live,' Ramsey warned. 'You don't want to be digging up bushes in your yard for dinner.' If you suddenly come into a life-changing amount of money, you might be tempted to spend it. But you also will want to make sure it lasts so you don't end up going broke. Before making any major financial moves, make sure you understand the tax hit. Many windfalls aren't tax-free, so it's a good idea to get in touch with a licensed accountant. Figure out how much you're really walking away with before you start writing checks. Next, take a look at your debt. Any high-interest debt, from credit cards to personal loans, should be on the chopping block. That said, not all debt is created equal. Got a mortgage under 4%? It might be worth keeping for now, depending on your broader financial picture and how much you've got to work with. After all, you don't want to end up house-rich and cash-poor. Don't forget about safety. Boosting or building your emergency fund with three to six months' worth of expenses, parked in a high-yield savings account, can protect you from going further into debt in case your car breaks down or a pipe in your home bursts. Retirement accounts may also be top of mind. Consider setting one up, if you don't have one yet, and contributing the maximum amount yearly. A financial advisor can help set you up and invest for long-term growth so you can enjoy your golden years. At the end of the day, a financial windfall with the right plan can set you up for stability, freedom and maybe even a little fun. 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 Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead 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 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
Yahoo
18-05-2025
- Business
- Yahoo
30-Year-Old Says Her Boyfriend Thinks 401(k)s Are a 'Scam' — Dave Ramsey Warns: 'You Don't Want to Be Married to That Guy 25 Years From Now'
If you've ever been confused by 401(k)s, you're not alone. A 2024 poll by Beyond Finance found nearly 43% of Americans don't even know what a 401(k) is. But one caller to "The Dave Ramsey Show" wasn't just dealing with confusion — she was dating someone who called the whole thing a scam. The 30-year-old woman phoned in to get advice about her boyfriend, a 32-year-old recent U.S. citizen originally from Albania. She explained she's a dedicated saver with a 401(k) and a Roth IRA — but when she brought up retirement planning to her boyfriend, his response stopped her cold. "All that matters is working and making money now," she recalled him saying, before adding: "401(k)s are a scam." Don't Miss: Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – The average American couple has saved this much money for retirement —? That's when Dave Ramsey jumped in. "What he's saying is basically, 'I'm immature and I don't want to think about the future,'" he said. Co-host Ken Coleman agreed, calling it a fear-based reaction that might stem from growing up hand-to-mouth in an unstable environment. "But it's still a broken, stupid, and immature viewpoint," Ramsey added. "Regardless of how he got there." And Ramsey didn't stop there. "You get to live with someone who's going to do no planning for the future — which guarantees your future sucks," he warned. "That has to be solved relationally. You either walk him out of that... or walk away from him." Trending: Nancy Pelosi Invested $5 Million In An AI Company Last Year — Coleman jumped in with a gentler angle, comparing the boyfriend's resistance to learning to ride a bike. "He's scared, and he doesn't understand it. You don't throw him into the Tour de France," he said. "You put training wheels on. You walk beside him. But you've got to teach it if this relationship is going to be permanent." Ramsey, though, brought it back to culture shock — and hard reality. "I hate banks," he said bluntly. "But the idea that your money isn't safe in a U.S. bank? That's absurd." He compared it to people from Latin American countries who, after growing up around unstable banks, distrust the U.S. system. "That's not marriage material," he said. "You're marrying someone who hasn't adapted to the culture they live in." He didn't glamorize the future either. "I meet 57-year-old Americans who have no vision, who drank their future on Friday nights and now gripe that opportunity passed them by. You don't want to be married to that guy 25 years from now."And then came the classic Ramsey finale: "I'll be your old ugly Uncle Dave and say: don't marry this guy. He ain't worth it." Despite the skepticism, 401(k)s remain one of the most common and effective retirement tools available to American workers. These employer-sponsored plans allow individuals to invest pre-tax income, often with a company match, into diversified funds that grow over time. While they're not perfect — and no investment is without risk — 401(k)s are backed by federal regulations and protected under the Employee Retirement Income Security Act. For anyone hoping to retire with more than just regrets, the real scam may be ignoring them altogether. Read Next: Hasbro, MGM, and Skechers trust this AI marketing firm — 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article 30-Year-Old Says Her Boyfriend Thinks 401(k)s Are a 'Scam' — Dave Ramsey Warns: 'You Don't Want to Be Married to That Guy 25 Years From Now' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. 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
