5 Moves Every Woman Should Consider Before Retirement

5 Moves Every Woman Should Consider Before Retirement

May 23, 2024  by  Jennifer Taylor

Retirement should be relaxing. However, it’s hard to relax if you’re weighed down with financial woes.

As a woman, you probably spend much of your life taking care of others. However, you also need to take care of yourself, which includes ensuring your finances are ready for retirement.

Whether you’re planning to retire in the next few years or the next few decades, you’ll need to do a lot of planning. The more prepared you are, the better your chances of being in a good financial place to enjoy your golden years.

Wherever you are in your journey, here’s a look at five moves every woman should consider before stepping away from the workforce.

1. Estimate How Much You’ll Spend in Retirement

You can’t know if you have enough saved for retirement without estimating the amount you’ll spend each year.

Generally speaking, people tend to spend 55% to 80% of their current income each year in retirement, according to Fidelity®. Of that, approximately 15% of expenditures are healthcare related2.

Therefore, if your ending salary was $100,000 per year, you’ll likely need $55,000 to $80,000 per year in retirement — including approximately $15,000 in healthcare-related expenses.

It’s also important to think of the lifestyle you desire in retirement, as this will largely drive your cost of living. For example, you might save money by no longer having to commute to work and downsizing to a smaller home, but you could also spend more with frequent travel or buying a vacation home.

There’s no one-size-fits-all approach to retirement spending, so take the time to customize your plan to fit your lifestyle.

2. Devise an Income Plan

Right now, you pay for your expenses with your weekly, bi-weekly or monthly paycheck. However, this steady paycheck will come to an end when you retire.

Chances are, you’ll have a variety of income streams in retirement — Social Security, perhaps a pension, an annuity, a 401(k), etc. This is great, but you’ll need to figure out which accounts you’ll be tapping to pay your monthly bills.

It can be wise to work with a financial planner on this, as they can help you create a plan that minimizes taxes, while maximizing future earnings. This will ensure you’re truly getting the most from your money.

To Read More:

https://www.gobankingrates.com/retirement/planning/moves-every-woman-needs-to-make-before-retirement/?utm_term=morefrom_link_3&utm_campaign=1278041&utm_source=yahoo.com&utm_content=8&utm_medium=rss

The ‘Hermit’ Savings Rules: 8 Frugal Tips for Today’s Economy

The ‘Hermit’ Savings Rules: 8 Frugal Tips for Today’s Economy

Cindy Lamothe   Tue, July 16, 2024  GOBankingRates

Consumer habits across the world have been altered significantly over the past few years — for obvious reasons and otherwise — in what economists have dubbed “the age of the hermit consumer.”

 “For ‘hermit’ consumers, it can be really easy to make impulse purchases and overspend because of how easy and convenient shopping online is,” said Carter Seuthe, CEO of Credit Summit Consolidation. “Something that can be helpful to maintain a more frugal budget is just to define your expectations and priorities when it comes to the amenities you have.”

Below are some expert rules for living more frugally in today’s economy.

Embrace a DIY Mentality

“DIY is my new favorite hobby,” said Andrei Vasilescu, co-founder and CEO of DontPayFull. “It’s cost effective, and YouTube is a great teacher. About 50% more people are getting into DIY now.”

Syed Lateef, business coach and CEO of SyedBNB, agrees.

“We can all see it,” Lateef said. “The focus has shifted towards a more home-oriented lifestyle, and I can personally say that more people are embracing do-it-yourself (DIY) activities.”

He said this is a good thing because mastering basic skills for home and car repairs can lead to considerable savings.

“Nowadays, the hundreds of online tutorials and resources makes it easier than ever to learn and perform these tasks ourselves,” he said, “reducing the need to hire professionals.”

Save Money by Cooking at Home

“The driving force behind the hermit economy isn’t entirely clear,” Lateef said.

He said it could be due to the lingering hesitation for close-contact services, the increase in remote work or a shift in social values.

“What’s obvious, though,” he said, “is that consumers are now more inclined to spend on home-centric activities.”

As a result, he said, many followers of the FIRE (financial independence, retire early) movement have come to realize that frequent dining out can be quite costly. So, frugal individuals are embracing the art of cooking at home, experimenting with budget-friendly and nutritious meals.

He added, “Hermit consumers save money but also encourage healthier eating habits.”

Focus on Secondhand Finds

In the current economic climate, looking at secondhand alternatives before buying new is a wise strategy, Lateef suggested.

“I believe that the ‘hermit’ consumers are now placing more emphasis on sustainability because of the pandemic, so shops like thrift stores and online marketplaces are trending because of the treasure troves of affordable, yet quality items.”

In terms of frugality, he said, this not only helps save money but also aligns with sustainable practices by repurposing and recycling items.

To Read More: https://www.yahoo.com/finance/news/hermit-savings-rules-8-frugal-140043078.html

“Inflationary Forces”? Duh

“Inflationary Forces”? Duh 

Notes From the Field By James Hickman / Simon Black 7-16-24

Jamie Dimon is the CEO of JP Morgan Chase, one of the world’s largest banks. And last week he issued a stern warning on the bank’s quarterly earnings call that “multiple inflationary forces” are still lurking.

File that one away under “duh”. It should be completely obvious to just about anyone paying attention to the world that many of the key drivers that rocketed inflation higher are still with us.

The Federal Reserve, of course, desperately wants to pretend that inflation is in the rear-view mirror, never to return. And they keep insisting that the downward trend of inflation justifies their interest rate cuts.

But as Mr. Dimon points out, “large fiscal deficits, infrastructure needs, restructuring of trade and remilitarization of the world” all create high risk of substantial inflation.

We agree with him.

“Remilitarization of the world”, i.e. conflict, is very expensive. The very nature of war means consuming vast quantities of resources to produce munitions that will destroy your adversaries’ resources.

Most governments don’t have the money to do this. The last time the United States was able to fund a war without going into debt was the Spanish-American War in 1898. Every other war, or even preparation for war, required significant additional debt... which ultimately resulted in printing more money.

So, in the end, warfare means more money in the system, but fewer resources. This is the very definition of inflation.

Dimon mentions trade disputes as well, which are also very expensive.

Free trade creates wealth. It allows countries and producers to specialize in what they do best, and trade for what other countries do best.

Germany is great at high tech manufacturing, pharmaceuticals, and various other industries. But they can’t produce bananas to save their life.

Fortunately, Guatemala exists. Guatemala has no high-tech industry. But they’re great at bananas. It’s a sensible trade.

When nations are in dispute with one another, trade breaks down and they start having to produce goods and services where they have no expertise.

Sometimes it works out; in one of their endless wars with France, Britain boycotted French wine... and in the process, accidentally invented port. But usually, such inefficiencies create a lot of inflation.

Dimon also mentions infrastructure needs. And that’s a massive understatement.

The US highway system is deteriorating. Amtrak is blowing money without any serious improvements. California is tens of billions of dollars over budget, and several years late, for a high-speed rail it promised from San Francisco to Los Angeles.

It doesn’t help that they put $1 trillion in the hands of an incompetent diversity hire like Transportation Secretary Pete Buttigieg.

All of this money will need to be conjured out of thin air by the central bank, which, again, is inflationary.

Lastly, Dimon also references “large fiscal deficits”, which is putting it politely.

We’ve said it many times— the government’s own internal projections expect an extra $22 TRILLION in deficit spending (i.e. new debt) on top of the $35 trillion national debt, over the next decade. Most of that will come within the next five years.

Deficits are inflationary, as we have seen over the past few years.

To be fair, there are some potential deflationary forces as well.

Increases in productivity are very deflationary. Technology, driven by artificial intelligence, could be monumental in improving productivity and keeping prices down.

Yet there are also a lot of people in government (and even within the AI industry), trying to slow down development and hold back AI.

Capitalism— which encourages competition to offer the best quality goods and services at the lowest prices— is also deflationary.

Unfortunately, many people in power despise capitalism and rail against it as racist, misogynist, or bad for the planet.

To Read More:   https://www.schiffsovereign.com/trends/inflationary-forces-duh-151157/

2 Options You Have When Your Bank Starts Charging You for a Checking Account

2 Options You Have When Your Bank Starts Charging You for a Checking Account

Gina Hagler  Sun, July 14, 2024  GoBankingRates

Most of us are used to our checking accounts being free to own and operate; we expect to pay fees only for specific transactions like late payments to credit cards or for overdrafts.

These fees can add up, with charges piling on top of charges for a single transaction. Should new banking rules become the standard going forward, however, there would be an upper limit on how much banks can charge for certain fees. Specifically, the Consumer Financial Protection Bureau (CFPB) seeks to prevent banks from being able to charge more than $8 for late credit card payments and $3 for overdrafts, as explained by Payments Dive.

According to Wall Street Journal, JPMorgan Chase — the largest consumer bank in the country — plans are underway to circumvent the regulation by instituting more consumer charges for owning a checking account or using wealth-management tools. Currently, most bank maintenance fees are avoided by having a balance above a threshold. But this could turn into a fee regardless of your balance.

 It won’t necessarily end there: reportedly, they are also considering increasing their interest rates and enacting a stricter policy on credit card loans. With this news in mind, here are your options should your bank start charging for a checking account.

Switch Your Account Type

You may have luck getting in contact with your bank supervisors and requesting to switch your account to avoid such fees. Certain individuals, like senior citizens or students, are often able to have monthly service fees waived— some banks will even offer various paid services for free, as explained by Forbes.

There are checking accounts specifically designed for seniors that are unavailable to others. If you don’t want to switch your account entirely, you may be able to qualify for a waiver within your existing account after passing the age threshold.

 Forbes also notes that the banks may introduce other fees in exchange for those waived. One possibility is overdraft fees which, if the CFPB is successful and the bank remains user-friendly, would be minimal.

To Read More:  https://www.yahoo.com/news/finance/news/2-options-bank-starts-charging-130112635.html

4 Reasons Retired Women Need More Money Than Men

4 Reasons Retired Women Need More Money Than Men — And What To Do About it

June 6, 2024  by  Jennifer Taylor

Like many things, retirement isn’t the same for men and women. Specifically, retired women tend to need more money than men.

There’s a variety of reasons for this, which can be frustrating for women. Retirement is often thought of as time to enjoy your golden years, but it’s hard to do so without sufficient funding.

Walking away from a steady paycheck can be hard — or even impossible — for women who don’t have the savings to do so. You’re not alone if you feel like you’re behind on your retirement savings, but you can catch up.

Here’s a look at some reasons why retired women need more money than men, and more on how an annuity could help solve this problem.

1. Career Interruptions

Women are statistically more likely than men to take time away from the workforce to care for others, like children or aging parents. For example, only about one in five stay-at-home parents in the U.S. are dads, according to the Pew Research Center1.

In 2023, 66% of women identified as caregivers, compared with just 34% of men, according to an AARP New York Survey. Of current and former women caregivers, 35% said they didn’t work while providing care2.

Taking time away from the workforce can have a profound effect on women’s retirement savings. While they’re not working, they’re of course not earning a paycheck, but they’re also not able to take advantage of any employer-matched retirement savings benefits or pay into Social Security.

Even when they return to the workforce, being away may impact long-term career growth. This can cause them to have a lower earning potential, which may limit their retirement savings.

2. The Gender Pay Gap

In 2022, women earned 82% as much as men on average, according to the Pew Research Center3. This isn’t anything new, as women earned 80% as much as men in 2002.

Not earning as much as men can impact women’s finances in both the present and future — like in retirement. For example, Fidelity® recommends putting 15% of your pretax income aside for retirement each year4.

However, working women might not be able to afford to save that much for retirement. Even if they can manage to do so, it won’t total as much as male co-workers earning more than them.

Social Security benefits are also based on average career earnings. In 2021, the average annual Social Security income received by women ages 65 years and up was $14,204, compared with $18,108 for men, according to the Social Security Administration5.

To Read More:  https://www.gobankingrates.com/retirement/planning/reasons-retired-women-need-more-money-than-men/?utm_term=morefrom_link_4&utm_campaign=1277605&utm_source=yahoo.com&utm_content=10&utm_medium=rss

8 Money Moves Empty Nesters Should Make Immediately

8 Money Moves Empty Nesters Should Make Immediately

Cindy Lamothe  Fri, July 12, 2024   GOBankingRates

The moment your youngest moves out of your family home is an emotional time, to say the least. You’re dealing with enormous change while also thinking about the future.

Becoming an empty nester can be an overwhelming experience, but according to experts, you should also make some strategic financial moves right away.

“Empty nesters must immediately reassess their financial priorities and redirect resources previously allocated to child-rearing,” said Abid Salahi, co-founder of FinlyWealth.

Reevaluate Your Financial Goals

“As empty nesters, it’s time to revisit and update your financial plans,” said Justin Godur, finance advisor and founder of Capital Max.

With fewer immediate responsibilities, he said you can now focus on long-term goals like retirement savings, travel or starting a new venture.

“I always tell my clients to adjust their savings strategies and ensure they align with their new life stage.”

Ben Klesinger, co-founder and CEO of Reliant Insurance Group and Helping Hand Financial, also reevaluated his financial goals with his wife upon becoming empty nesters.

“With fewer expenses, we travel internationally once a year now,” he said.

“Experiencing new cultures and adventures is rewarding after years of focusing on family responsibilities,” Klesinger said. “The trip budget comes from funds previously spent on the kids’ activities and expenses.”

Maximize Retirement Contributions

At this stage in life, experts advise increasing your contributions to retirement accounts like 401(k)s or IRAs.

“I personally boosted my retirement savings significantly once my children were on their own, leveraging catch-up contributions to maximize tax advantages,” Godur said.

Experts agree that this period is perfect for catching up on any retirement savings gaps.

“When I became an empty nester five years ago, I was shocked to realize I had unknowingly spent an average of $14,000 annually on my children’s expenses,” Salahi said.

“I’ve significantly improved my financial outlook by redirecting these funds to my retirement accounts,” he said. “This personal experience has shaped my advice to clients in similar situations.”

Streamline Your Budget

Make sure to analyze and adjust your budget to reflect the change in household size. For example, redirect funds previously allocated for children’s expenses towards investments or debt reduction.

“In my experience, this reallocation can substantially improve financial health and free up resources for future endeavors,” Godur said.

Consider Downsizing

A big money move to start considering is the possibility of downsizing your home.

Read More:  https://www.yahoo.com/news/finance/news/8-money-moves-empty-nesters-150052163.html

4 Saving Strategies I Swear By for Long-Term Wealth

I’m a Banker: 4 Saving Strategies I Swear By for Long-Term Wealth

Angela Mae   Thu, July 11, 2024  GOBankingRates

When it comes to saving money, there’s no one-size-fits-all strategy. What might work for some people won’t always work for others. Depending on your goals and financial situation, you might be able to save more aggressively than others. Or you might only be able to save small amounts at a time over a long period.

Whatever the case, if you’re trying to build long-term wealth, it’s crucial to find the savings strategy — or strategies — that work best for you. If you haven’t found yours yet, don’t worry — it’s never too late to get started.

GOBankingRates spoke with Teri Williams, president and COO at OneUnited Bank, about which savings strategies she swears by for long-term wealth — and which ones she would outright avoid. Here’s what she said.

Automate Those Savings

One of the first things Williams suggested was setting up an automatic savings account.

“What wealthy folks know is that you MUST set up an automated process such [as] that funds transfer from your paycheck to a savings/investment account,” she said. “If money goes ‘into your pocket,’ you are more likely to spend it.”

Most banks and credit unions, as well as online banking services, will allow you to connect two accounts — like a checking and savings account — and automate your savings contributions. Depending on your goals and finances, you may be able to set it up to where a certain amount of money gets deposited into your savings account each month. Or you might be able to have a specific percentage of your paycheck put into your savings.

Check over your budget and see how much money you can comfortably save each month. You can always make adjustments as you go, but the important thing is getting started.

Prioritize Increasing Your Income

If you’re trying to save money to build long-term wealth, you’ve probably been told to cut out that daily latte habit or cancel those extra streaming service subscriptions. And while cutting back on things you don’t need, want or even use doesn’t hurt, it’s not the way to become wealthy.

Instead, Williams suggested focusing on your income over your expenses.

“The wealth gap, as an example, is largely due to the income gap, rather than a difference in how we spend our money,” she said. “Avoiding purchasing a cup of coffee or lunch is not as important as improving your job skills and career path.”

These small cut-backs might help in the moment, but your actual earnings are what are more likely to push you into greater financial stability and wealth over time.

To Read More: https://www.yahoo.com/finance/news/m-banker-4-saving-strategies-150027509.html

I Was Broke — Until a Financial Advisor Helped Me in These 4 Ways

I Was Broke — Until a Financial Advisor Helped Me in These 4 Ways

Vance Cariaga  Wed, July 10, 2024  GOBankingRates

If you need a financial advisor, there is no shortage of options. More than 330,000 financial advisors are employed around the country, according to the Finance Strategists website. Advisors who must meet industry and regulatory standards include certified financial planners, certified financial analysts and registered investment advisors. But there are also plenty of financial consultants who can include just about anyone.

Although many financial advisors are hired by rich clients to help them amass more wealth, advisors can also prove useful to people who have hit rock bottom financially and want to dig their way out. Even if you have little money to spend, you can use services like the Garrett Planning Network, which Experian describes as a “fee-only fiduciary advisor organization” that aims to lower barriers by charging only on an hourly, as-needed basis.

In some cases, you might even find a financial consultant among your professional or personal contacts who can offer advice at little or no cost, at least until you’re back in a position of financial strength.

This is especially useful if you happen to be broke and need a plan to start earning income, saving money and building wealth. One person who can speak from experience is Ben Grant, founder and CEO of LearnSales, a global sales training platform where he partners with noted author and money expert Grant Cardone.

Ben Grant’s journey from financial hardship to entrepreneurial success is a “powerful testament to the transformative impact of professional financial guidance,” according to correspondence shared with GOBankingRates.

As Grant told GOBankingRates, he had a talent for generating income but found himself “nearly broke” because of poor money management skills.

“Overspending and unwise investments had taken their toll,” he said. “Realizing I needed expert advice, I sought the help of a financial advisor, which proved to be a pivotal decision in my career. My experience illustrates how hiring a financial advisor can play a crucial role in overcoming financial hardship. With expert guidance, individuals can transform their financial status, make smarter decisions and build a more secure future.”

Here are four ways a financial advisor helped Grant when he was in financial trouble.

Wealthy people know the best money secrets. Learn how to copy them.

Budgeting and Expense Management

“My financial advisor helped me establish a comprehensive budgeting plan,” Grant said. “By tracking my expenses meticulously and identifying areas to cut costs, I regained control over my finances and allocated funds more effectively towards my business and personal growth.”

Building an Emergency Fund and Savings

To Read More:  https://www.yahoo.com/finance/news/broke-until-financial-advisor-helped-180017299.html

3 Real Assets Primed For Growth In The Coming Inflation Bonanza

3 Real Assets Primed For Growth In The Coming Inflation Bonanza 

Notes From The Field  By James Hickman/Simon Black 7-11-24

After today’s inflation report showing ‘only’ 3% inflation, the Federal Reserve is all but guaranteed to start slashing interest rates.

The Fed Chairman essentially promised as much to Congress earlier this week, and has warned that if they don’t start cutting interest rates soon, “we could undermine the [economic] recovery.”

These guys still don’t get it. At this point it’s not even about 3% inflation (which is still too high) or 2% inflation. It’s about prices going back down to pre-pandemic levels… or just lower in general.

But that’s just never going to happen. The Fed doesn’t care about price reductions; they’re happy with a slower rate of price increases… which is totally out of touch with what people want and need.

They’ve been itching to cut rates for months… almost desperate. And in large part that’s because they’re terrified about the US government’s insolvency.

The national debt is about to pass $35 trillion. And high interest rates mean that the annual interest bill this year will exceed the US military budget-- more than $800 billion-- for the first time in nearly 250 years of American history.

The Fed knows that they have to slash interest rates as quickly as possible. With ultra-low rates (like 1.5%), the interest bill on a $35 trillion national debt is manageable… as long as the federal government can rein in spending and stop the debt from growing further.

Of course there are two key problems with this thinking:

First, there is zero evidence that the government will rein in spending. If anything, they seem primed to spend even more. I’ve mentioned several times before that even the US government’s own budget forecasts project more than $22 trillion in additional debt over the next decade.

Second, slashing interest rates will most likely result in significant inflation-- just like we saw in 2021-2022.

We’ve written before how real assets are a safe haven from inflation, and I wanted to briefly discuss three real assets that look especially promising.

The first is physical gold and silver, which serve as a store of value-- especially during inflationary times.

Higher inflation will likely trigger a surge in demand, making the price of precious metals not only keep up with inflation, but exceed it.

But there is another reason why gold will do especially well the worse inflation gets.

The worse inflation becomes, and the worse the US national debt becomes, the more likely the US dollar will lose its spot as the dominant reserve currency. And central banks all over the world-- India, Poland, Singapore, etc. have been feverishly buying up physical gold over the past few years, most likely to prepare for that potential change.

So if inflation picks up, it’s a good bet that central banks will keep buying up gold-- and driving prices higher.

Gold mining stocks should also do extremely well in that scenario due to their exposure to gold prices.

What’s interesting right now, though, is that despite gold being near an all-time high, share prices of many gold mining companies are incredibly cheap.

That’s because central banks-- which have driven gold prices to record highs-- only buy physical gold bullion. They do not buy gold stocks.

However, while the price of gold has already increased substantially, the stock prices of many great gold miners has not.

This is because most of the current demand for gold is coming from central banks. And central banks only buy physical gold— not gold mining stocks.

This means that gold stocks are currently a bargain-- with a LOT of upside potential.

Last, US natural gas is another compelling real asset primed for huge growth.

Right now, natural gas prices in the US are dramatically lower than they are in Europe… and it’s easy to understand why: the US has some of the biggest natural gas reserves in the world, while Europe has almost nothing by comparison. (This is why Europe is so reliant on Russian gas).

And since Joe Biden has banned new LNG (liquefied natural gas) export terminals from the US, it’s difficult to move that US natural gas to Europe.

This is why prices in the US are less than $3, versus more than $10 in Europe. If US producers were free to export, prices in the US would rise, prices in Europe would fall, and the global natural gas prices would be more or less the same, similar to oil.

In terms of energy equivalence to oil, $3 per million BTU natural gas is the equivalent of paying around $15 - $20 for a barrel of oil. That’s cheap. And it means US natural gas is the most underpriced conventional energy commodity in the world.

But it probably won’t stay that way for long.

First, large tech companies, which are building massive, energy-hungry AI data centers, are also looking at putting in their own power plants… which will most likely be powered by natural gas.

Second, the new export terminal ban probably won’t last. There are lawsuits, legislation, and an upcoming election, any one of which could restart new LNG exports. When this happens, US natural gas prices could quickly rise.

In either case, natural gas producers stand to benefit substantially from higher prices. And it just so happens that shares of many of the best quality producers right now are laughably cheap, with low multiples relative to earnings, book value, and Free Cash Flow.

Looking at the overall investment landscape now, with many conventional stocks and indexes near all time highs, these three sectors strike me as some of the most promising investments for an inflationary environment.

To your freedom,   James Hickman  Co-Founder, Schiff Sovereign LLC

https://www.schiffsovereign.com/investing/3-real-assets-primed-for-growth-in-the-coming-inflation-bonanza-151138/

4 Fraud Schemes You Should Be on the Lookout For

4 Fraud Schemes You Should Be on the Lookout For

Laura Beck   Wed, July 10, 2024  GOBankingRates

There are always unscrupulous individuals who would love to separate you from your hard-earned money. Not only that, they are always developing new ways to do so, as well as new twists on old scams.

You can keep yourself from falling victim to these criminals by educating yourself about these schemes and using a little common sense. Always approach unsolicited phone calls, emails, or texts with skepticism. If something feels off, trust your instincts and take a step back to assess the situation.

Here are four scams to be on the lookout for:

Wealthy people know the best money secrets. Learn how to copy them.

Pig Butchering Scams

A pig butchering scam is an elaborate con in which scammers build up your trust over an extended period, often through social media, dating apps, or text messages, before convincing you to invest in cryptocurrency.

“The ‘pig butchering’ scheme is a complex fraud that borrows elements from other existing scams,” said R. Persichitte, Affiliate Professor at the Metropolitan State University of Denver. “It typically begins with a romantic or a wrong number scheme to initiate contact.

A seemingly attractive individual will establish a casual relationship and then persuade you to make a small deposit into their phony investment, often using a legitimate site like Coinbase. They will then lure you into investing more by presenting fake statements of high returns. However, these returns are fictitious, and your money is lost when you transfer it.

To protect yourself from pig butchering, be skeptical of any unsolicited investment advice, especially from people you’ve only met online, or any texts from a “wrong number.”

Impersonating Your Bank or Another Service

To Read More:

https://www.yahoo.com/finance/news/m-banking-expert-4-fraud-190021118.html

Kevin O'Leary Says You Can Survive On $500,000 And 'Do Nothing Else To Make Money'

Kevin O'Leary Says You Can Survive On $500,000 And 'Do Nothing Else To Make Money'

Margaret Jackson  Updated Wed, Jul 10, 2024,

Americans are all about that $1.5 million nest egg for retirement — living easy with golf trips and fancy cars.

But "Shark Tank" tough guy Kevin O'Leary says to hold on — you can retire with just $500,000 — a big difference from the $5 million he suggested last August.

According to Mr. Wonderful, the key is investing smartly and maybe scaling back your spending after you clock out for good.

"You can live off half a million bucks in the bank and do nothing else to make money," O'Leary said. "Do not invest in your brother's bar. Or a bowling alley, or a bar, or all that other crap, you'll lose your money."

But it depends on the type of lifestyle you want. According to Northwestern Mutual research, most Americans believe they need nearly $1.5 million to retire. That's up 53% since 2020 and 15% from last year.

O'Leary's logic is that you can make about 5% in fixed income with little risk, but if you only have $500,000, that amounts to $25,000 per year. If you are willing to ride the volatility, you can invest in equities, providing up to a 9% return or about $45,000 annually.

If you aim for a secure retirement, the 4% rule is widely used. The rule suggests retirees can withdraw 4% of their retirement savings annually for 30 years, adjusting the amount each year to keep up with inflation. Developed by financial adviser Bill Bengen, it's based on historical data analyzing stock and bond returns, aiming to ensure retirees don't run out of money.

Consider real-world spending. According to the Bureau of Labor Statistics, the average retiree over 65 spends roughly $52,141 annually. Rounding up for safety, you'd need at least $1.3 million saved to generate $53,000 per year using the 4% rule. That means if you had $500,000 saved, as O'Leary suggested, withdrawing 4% annually for 30 years would only provide a safe spending amount of $20,000 per year.

To Read More:  https://finance.yahoo.com/news/kevin-oleary-says-survive-500-140519576.html

7 Reasons You Should Consider a Financial Advisor — Even If You’re Not Wealthy

7 Reasons You Should Consider a Financial Advisor — Even If You’re Not Wealthy

Marina Benitez  June 24, 2024

When you hear the term financial advisor, you might picture someone who only works with the ultra-wealthy, managing millions of dollars in assets. This is a common misconception. In reality, financial advisors work with people of all income levels, helping them navigate the complexities of personal finance and achieve their financial goals.

And according to a survey* by MagnifyMoney, 95% of those polled who have a financial advisor believe it’s worth the money.

Whether you’re planning for retirement, dealing with a significant life event or simply looking to make smarter financial decisions, a financial advisor can offer the expertise and guidance you need. Here are some compelling reasons why you should consider a financial advisor — even if you’re not wealthy.

1. You Get Personalized Financial Guidance

Starting to save early and consistently is crucial for building a strong retirement fund. Expert advisors

Everyone’s financial situation is unique, and a one-size-fits-all approach rarely works when it comes to managing money. This is where personalized financial guidance becomes invaluable. Financial advisors tailor their advice to fit your specific needs, goals and circumstances. Whether you’re looking to create a budget, save for a major purchase or plan for long-term goals like retirement, a financial advisor can help you develop a customized strategy.

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Boots On The Ground In The World’s Bitcoin Paradise

Notes From the Field  by James Hickman July 10, 2024

[Editor’s note: This letter was written by Schiff Sovereign’s CEO, Viktorija Simulynaite, who is on the ground in El Salvador.]

The first thing my driver said to me after I got off the plane in El Salvador was, “Welcome to my country. It’s very safe here now.”  I chuckled to myself because this seemed like such an odd greeting. But the more time I spent mingling with locals in El Salvador, the more it made sense.

The transformation that has taken place in the country over the past five years cannot be overstated.

Five years ago El Salvador had one of the highest murder rates in the world. It was basically a war zone. Gangs such as MS-13 and Barrio 18 were far more powerful than the government, and they enforced their own laws in their respective territories, sort of like the Taliban in Afghanistan.

The country’s young president, Nayib Bukele, put an end to all that when he was elected in 2019.

Bukele invoked emergency powers and arrested more than 100,000 suspected gang members, then shipped them off to a special prison far away from the rest of society. In a country of 6.3 million, that amounts to over 1.5% of the entire population that’s now locked up.

It was a controversial move to say the least… and I wonder about innocent people who may have been wrongfully imprisoned.

But El Salvadorans seem quite happy with the results; today their country boasts a lower homicide rate than anywhere else in the Western Hemisphere aside from Canada.

Simultaneously, El Salvador also put itself on the map by being one of the first countries in the world to get behind crypto; they even made Bitcoin legal tender and passed a number of pro-crypto tax incentives.

Those are pretty much the two things that El Salvador is known for these days– putting tens of thousands of criminals in jail, and Bitcoin.

But I was pleasantly surprised to find out that the country has so much more going for it.

This was a place that was scraping the bottom of the barrel just a few years ago. Even aside from the crime problem, the economy was in the dumps. Corruption and bureaucracy ruled the day, and debts were rising.

In just a few short years, however, El Salvador has managed to turn itself around, and the economy has taken off.

It’s not an accident. The government has slashed bureaucracy and established a number of incentives to bring in foreign capital and businesses.

One is the recently passed International Services Law, which offers significant tax incentives to service-based businesses, similar to Puerto Rico’s famous Act 60.

El Salvador’s law, though, is perhaps even more generous than Puerto Rico’s because it includes exemption for import duties, income taxes, municipal taxes, and more.

Service industries like call centers, data centers, software development, and other back-office services are starting to be growing industries in El Salvador, and I met a number of foreign entrepreneurs who are starting businesses in the capital.

Foreign investment is flowing in, and you can see construction projects everywhere– the capital city is quickly becoming sleek and modern, and it completely defied my expectations. Even the restaurant scene is really great.

More importantly, there’s an optimism in El Salvador– one that I haven’t seen in Europe and North America for a long time. People feel like the worst days are over and the future will continue to be much brighter.

Now, all that said, I’m not trying to suggest that El Salvador is some perfect paradise or that anyone should move their business there. I’m really writing about it as a sort of case study.

We talk a lot about how governments and politicians and “inspired idiots” wreck their economies. They rack up massive debts and engineer painful inflation and higher energy prices… and generally make things worse with their every move.

But it’s fair to point out that sometimes governments do smart things. And El Salvador is a great example.

They knew they had to figure out how to turn their economy around. And rather than go down a destructive rabbit hole of wage and price controls, which are standard approaches for bankrupt nations, El Salvador’s government got out of the way and is allowing the free market to blossom.

The one thing they have done very deliberately is market themselves.

Advanced western countries don’t do this. Joe Biden doesn’t travel the world pushing foreign nations to invest in America. Rather, he takes America’s standing for granted and simply assumes that everyone wants to invest there.

El Salvador is a tiny country plagued by a bad reputation for its past challenges.

But rather than let that reputation fester, its leaders are hustling to promote their country all over the world with a clear message: El Salvador is open for business.

It’s fascinating to watch such a positive transformation unfold for an entire nation in real time– and to see politicians deliberately do the right things to foster economic growth.

Given how many Western countries are rapidly deteriorating from their own idiotic political decisions, El Salvador is an obvious example of how much better things could be if reason and sanity were restored in government.

Imagine what the US would look like if politicians were actually cooperating and hustling to bring in new business, to make smart investments, to embrace capitalism, or even to simply rein in spending and slash bureaucratic waste…

We’re planning a boots on the ground trip to El Salvador for members of our Total Access group (i.e. our highest tier premium members at Schiff Sovereign). It’s going to be pretty great.

We’ll be meeting with senior officials and business leaders and checking out, firsthand, what’s going on in the country so that our members can see the transformation for themselves.

We’ll also eat at some of the country’s nicest restaurants and tour the beautiful countryside. And we might even leave with an investment or two.

(We’ve already had Total Access trips to places like Cuba, Singapore, the Republic of Georgia, Uzbekistan, and more, so El Salvador fits perfectly.)

If you’re interested in joining or finding out more about Total Access -- click here to read more about it. We’ll be opening enrollment soon.

To your freedom,   Viktorija Simulynaite   CEO, Schiff Sovereign LLC

https://www.schiffsovereign.com/trends/boots-on-the-ground-in-the-worlds-bitcoin-paradise-151131/