Latest news with #retirementfunds
Bloomberg
5 days ago
- Business
- Bloomberg
Private Credit Firms From KKR to Blackstone Ready for 401(k) Win
When word spread last week that President Donald Trump is keen to spur more private assets into retirement funds, the biggest direct lenders were more than prepared. In fact, the industry has been laying the groundwork for quite some time. Firms including KKR & Co., Blackstone Inc. and Blue Owl Capital Inc. had already set up partnerships with 401(k) managers. Trade groups and industry executives have also been lobbying officials in Washington and making their case to the public — all part of a long-running effort to expand private credit's reach.
CBS News
6 days ago
- Business
- CBS News
3 smart money moves seniors should make this August
News last week that the inflation rate is heading further away from the Federal Reserve's target 2% goal wasn't the development millions of Americans were hoping for, seniors least among them. Now at 2.7%, inflation has increased in both May and June, helping to ensure that today's high interest rates and, thus, borrowing costs, remain elevated for the foreseeable future. While this is problematic for most adults, it's arguably more of an issue for seniors traditionally reliant upon limited income streams like Social Security and retirement funds. For these Americans, each dollar needs to be stretched strategically, especially now with everyday costs remaining high and rate relief being delayed further. Fortunately, there are some strategic money moves that these seniors can explore currently, some of which can help them as soon as this August. Below, we'll detail three worth investigating right now. Start by checking your credit card debt forgiveness qualifications here. Here are three smart money moves, either made together or individually, that could go a long way toward improving the financial health of seniors this August: The average credit card rate is just under a recent record high of 23%. The average credit card debt is around $8,000. So if you're stuck with the latter and paying the former, it's past time to tackle your high-rate debt. Fortunately, there are multiple debt relief options that can help, ranging from debt management programs to debt consolidation loans to credit counseling and even credit card debt forgiveness and bankruptcy for more extreme cases. Just don't sit idle, either. With rates high and interest compounding here, taking action is critical if you want to regain your financial independence anytime soon. Compare your top debt relief options here to learn more. For many seniors, Social Security just doesn't make ends meet. And now, with concerns surrounding overpayments and potential clawbacks, this may not be the reliable income stream it once was. But there are alternatives worth exploring, whether that means a personal loan or tapping into your home equity with a home equity loan or reverse mortgage. The latter home equity borrowing tool can be particularly effective now as it's only available for seniors and won't require monthly payments back to a lender the way a personal loan or home equity loan would. Still, it does require reducing your home's worth to secure that extra income, so it's worth investigating closely before getting started. Compare your reverse mortgage options online to see if it makes sense for you now. It's never too late to increase your insurance protections … or look for ways to reduce costly premiums. Use this summer, then, to do both. Are your life insurance protections adequate for your current financial circumstances and your beneficiaries? What about your long-term care insurance needs? Some seniors may find Medicare supplemental insurance a worthwhile investment if it makes up the gap left over by traditional Medicare coverage. Use this time to revisit your insurance protections for ways to cover yourself more adequately while also reducing premiums and coverage costs that no longer meet your changing needs. Learn more about your Medicare supplemental coverage options here now. While the above list is not all-encompassing, it marks a good starting point for seniors in need of financial relief, additional income and long-term economic protections right now. By making these strategic money moves and by speaking with a financial advisor (if needed), seniors can take steps toward improving their financial health as soon as August and, hopefully, maintaining and enhancing it in the months and years still to come.
Bloomberg
15-07-2025
- Business
- Bloomberg
BlackRock's Key Retirement Funds to Get Private Assets in 2026
BlackRock Inc. said it expects to start offering its own target-date retirement funds that include private assets next year, the latest push by the $12.5 trillion money manager to bring alternatives to everyday investors. The company is working on a plan to launch a proprietary LifePath target-date fund with private assets, Chief Financial Officer Martin Small said Tuesday on the firm's second-quarter earnings call.
News24
29-06-2025
- Business
- News24
What tax deductions can I claim as a salaried employee?
Starting your working career with a steady salary is an exciting milestone – both for you and the Tax Man. As the South African Revenue Service (SARS) says: 'It's simple. You pay tax when you begin to earn income of more than the legislated amount for that year, and you pay it all your working life.' Sobering? Yes. But the good news is that you can reduce your tax bill by understanding the amounts which can be deducted before the calculation of employees' tax (Pay As You earn (PAYE)) or before your tax return is assessed. Here is the list of expenses you can consider claiming for tax purposes. Retirement fund contributions Contributions to a pension fund, provident fund, or retirement annuity fund are tax-deductible and can reduce your taxable income. The deductions can be claimed in the year the contributions are made. If you are employed, your employer may contribute on your behalf, and although this contribution is taxed as a fringe benefit, both your and your employer's contributions are treated as your personal contribution and can be deducted accordingly. Your employer will take this deduction into account before calculating your Pay As You Earn (PAYE) tax. If you contribute to a retirement annuity (RA) in your own name, this contribution can also be considered for tax deduction when you submit your tax return. There is, however, a limitation. Total contributions across all qualifying retirement funds are limited to 27.5 percent of your taxable income, and is capped at R350 000 per year. To assist with your tax filing, the institution to which you contributed will issue a certificate confirming your total contributions for the tax year. SARS requires that you keep proof of contributions for five years. Medical and disability expenses Every year during the Budget Speech, the Finance Minister announces the medical scheme fees tax credits you are entitled to claim for the contributions you pay to belong to a medical scheme. This is not strictly a tax deduction, as this credit reduces the tax you owe rather than your taxable income. You can claim a monthly tax credit for yourself as the main member and the first dependent, and a lower amount for each additional dependent. You will find the current tax credits amounts in our tax tables. Only the person who actually paid the medical contributions may claim the credits. For example, if your adult child pays your premiums, they are entitled to the credit, not you. You can also claim additional medical tax credits for qualifying out-of-pocket expenses not reimbursed by your medical scheme. Ensure you have proof of payment, such as receipts, to confirm that these expenses have been paid. A taxpayer, his/her spouse or child with a permanent or temporary disability, is entitled to an additional tax credit for disability-related expenses incurred. Consult the SARS list of qualifying disability expenditure. The Income Tax Act allows a taxpayer to deduct any expenses related to a physical impairment (not classified as a disability), provided they affect a family member whom the taxpayer legally supports. Work-related travel expenses If you receive a travel allowance or drive a company vehicle your employer has provided, you may qualify for a tax deduction on kilometres you clock up for work (business) purposes during the year. A travel allowance is taxed based on estimated private versus business use, while the use of a company car is treated as a fringe benefit and taxed accordingly. Claiming your work-related travel expenses can reduce the tax you pay on the allowance or fringe benefit. Start by recording your vehicle's odometer reading on the first day of the tax year, and remember to record it on the last day of the tax year. A detailed logbook recording dates, destinations and business kilometres is key. You can record your actual expenses for fuel, maintenance, insurance and other costs, or you can claim the deduction using the table of costs supplied by SARS each year. Note that home-to-work travel is private and not deductible, unless you work mainly from home and travel to other business sites. Donations Donations to certain public benefit organisations (those approved in terms of Section 18A of the Income Tax Act) are tax-deductible. As an individual taxpayer, you can claim such donations as a deduction, up to a value of 10 percent of your taxable income. Donations to approved organisations do not incur donations tax, but donations to any other organisations or people that exceed R100 000 a year may incur donations tax and will not qualify for a tax deduction. Depreciation of tools If you use personal devices such as a laptop or cell phone for work purposes, you can claim the diminishing value or depreciation of that device as a tax deduction. If you are employed, and you buy and maintain the device in your personal capacity, you must obtain a letter from your employer confirming that you are permitted to use your personal device for work. This letter is important to substantiate the deduction you claim. Home office expenses There is typically little room for salaried employees to claim a tax deduction for home office expenses and SARS is increasingly scrutinising such claims. If you claim for home office expenses, SARS may request proof that you have a dedicated workspace, including floor plans, photos and expense records to verify your claim. You may qualify for a tax deduction for home office expenses if you mainly work from home in a space used exclusively and regularly for work, such as a study with a desk and computer, or a room with trade-specific equipment such as medical equipment in a dentist's room or the tools a mechanic uses. If you use your home office occasionally or you use a mixed-use space it is unlikely to qualify. The dining room table serving as a desk during the day but for family dinners at night will not cut it. Subsistence claims If your employer reimburses you for travel and meals while away from home for work purposes at SARS's deemed rate, these amounts are tax-free. However, any reimbursement that exceeds SARS's daily limits for meals and incidental costs is taxable and you can claim a deduction against the allowance for your actual expenses. You must be able to provide proof of your expenses. Deductions against commission income Taxpayers earning commission income that makes up more than 50 percent of their income may claim certain expenses incurred in the generation of their income. These expenses may include travel expenses, wear and tear of laptops, cell phones or other devices and home office expenses. Before you claim a deduction, make sure it meets SARS's requirements. Refunds to an employer At times you may be paid a taxable amount by your employer that you need to repay later because you don't meet the conditions on which the amounts were paid. For example, a bursary or maternity leave pay, paid on condition you remain employed for two years while you study or after the birth of a child. If you are then offered a better job or decide not to continue working, you may need to repay the taxable amount. You can then claim it as a taxable deduction. Note that under certain conditions, bursaries and scholarships may be tax-free. For a refund to qualify as a tax deduction, the bursary would have had to be a taxable one. Accounting fees You are entitled to deduct accounting or administration fees for the completion of your income tax return if your taxable income is earned as a freelancer, sole proprietor or other income you earn as, for example, a landlord. This applies only to professional fees actually paid or payable for the completing the income tax return. Foreign employment exemption South African residents earning an income for employment in a foreign country are exempt from paying tax on the first R1.25 million of this income, provided they are out of the country for more than 183 days (including an uninterrupted period of at least 60 days) during a 12-month period. Any remuneration above the R1.25 million threshold, will be subject to normal tax in South Africa, regardless of whether you are taxed in another country. Where a Double Tax Agreement is in place between South Africa and the host country, taxpayers can use the provisions of the agreement to avoid double taxation on the same income in both jurisdictions. Side-hustle business expenses If you have declared the income from your side-hustle business, you can claim deductions such as those for travel, home office and other business-related expenses against this income, but not against your salary. Remember that earning from multiple sources can push you into a higher tax bracket as you are assessed on your total income. The PAYE your employer deducts monthly and pays to SARS is in respect of your salary only. This advance tax payment may not cover your final tax liability when all your income is added up. Tip: Get help If you are unsure about whether you can deduct an expense from your taxable income, consider consulting a tax professional to help you maximise the available tax-deductible benefits while staying fully compliant.
Yahoo
18-06-2025
- Business
- Yahoo
5 Most Impactful Financial Changes To Make Today, According to Jaspreet Singh
A Pew Research Center survey found that only 37% of Americans believed their finances would be in better shape within one year. Many reported struggling to cover their medical care or housing costs and needing to get loans from loved ones. Explore Next: Check Out: If you're unhappy with your situation, you need to figure out exactly what to focus on so you can become more financially secure. This likely involves going beyond eliminating small, frequent expenses, like your daily premium coffee. A YouTube video from money expert Jaspreet Singh explained five changes that will have the biggest impact on your finances — start making these moves today. Singh said it's common to unknowingly pay too much in fees for your retirement account. Various funds have an expense ratio that you pay for annually, depending on your earnings and investments. While the fee might seem small, it could cost you hundreds of thousands or even millions. Singh gave examples of the VFIAX and GFACX funds with respective expense ratios of 0.04% and 1.36% and average returns of 12.5% and 12.6%. If you spent 30 years investing $1,000 per month in those funds, you'd reach $3.56 million with VFIAX versus $2.7 million with GFACX. That difference shows it's crucial to know what you're paying and change investments if needed. Trending Now: 'If you are paying higher fees, make sure the returns are justifying the fees,' Singh said. 'Because what we've seen through history is that, in general, high-fee accounts do not outperform the lower cost, lower fee, passively managed accounts when you look at it over the long run.' A report from the U.S. Bureau of Labor Statistics identified housing, transportation, food and health care as some of the largest household expenses in 2023. While you might think of cutting back on the less important stuff, Singh recommended targeting the major expenses if you're financially strained. For example, he said you could look for a cheaper place or vehicle and invest the savings. Other options could include splitting costs with a roommate and using alternative transportation, like carpooling or taking the bus. According to Singh, you might save up to $1,000 each month if you're strategic with your cuts. After you've built up wealth, you'll find it more realistic to spend money on fancier things without stress. Increasing your income goes hand in hand with cutting expenses to build wealth more efficiently. Singh explained that even getting your employer to offer a $5,000 raise has a major long-term impact when you look at the compound interest potential. He gave an example of investing your $5,000 raise every year for 30 years and getting a 10% average return, which he said would get you to about $1 million. If you change the timeline to 40 years, you'd reach about $2.4 million. 'This is the power of asking for that raise sooner rather than later and then taking that additional money and putting it to work,' Singh added. Getting yourself into a better financial position requires rethinking how you use your paycheck so that your money goes to work and makes you richer. Singh laid out three steps to take. First, he said you need to track your spending so you know where your pay is going every month. A budgeting app or a simple spreadsheet with your income and expenses will do the job. Singh recommended using categories for expenses, which you can identify from financial statements and noting the money you invested, gave or saved. After that, consider using the 75/15/10 plan to prevent overspending and ensure you're working toward your money goals. Singh explained that this limits your spending to 75% of your earnings and requires investing a minimum of 15% and saving at least 10%. With your plan in place, you can focus on investing as much as possible to build your wealth. That means making smart decisions with any extra money you get as well. 'One common trait that you will find amongst all successful people is that they were willing to take a risk on themselves,' Singh said. For you, this might look like finally getting started with investing, making your business dream a reality or getting a degree that helps you land a higher-paying job you love. It could also be as simple as getting a book that educates you on investing or offers career tips. Singh explained that this kind of risk-taking isn't easy but is worth it, so you should trust yourself and not let failure discourage you. He gave the example of how his parents wanted him to become a doctor from a young age, yet he found different opportunities as an entrepreneur and content creator. More From GOBankingRates I'm a Retired Boomer: 6 Bills I Canceled This Year That Were a Waste of Money This article originally appeared on 5 Most Impactful Financial Changes To Make Today, According to Jaspreet Singh 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
