Americans haven’t been stashing money into their savings accounts like they used to, according to government statistics. That’s part of the reason why consumer spending has been so robust since the economy ascended from pandemic depths, despite high inflation and elevated interest rates. But when saving slows (or stops), it puts households in a vulnerable […]
Category: Personal Finance
Would Taxing All Earned Income Resolve Social Security’s Growing Cash Shortfall? The Surprising Answer…
The most-popular solution to Social Security’s $22 trillion long-term funding shortfall would itself come up short. For a majority of our nation’s retirees, Social Security income is a necessity to make ends meet. Estimates from the Center on Budget and Policy Priorities show that 22.7 million people are lifted above the federal poverty line annually via their […]
Here’s the maximum Social Security benefit you can collect if you’re retiring at 70 this year
There’s no official retirement age in the U.S., and there’s also no such thing as a single age at which to claim Social Security. Because of this, you may decide to push yourself to work until age 70 and sign up for Social Security at that point. Doing so could result in a very generous […]
Why employers should (and have to) hire older workers
When is someone too old to work or too old to get hired? According to many employers, 62 is the cutoff for working, and 58 for hiring. It begs the question: What planet are they on? “Many employers are focusing on diversity, equity, and inclusion, but they may be overlooking age in their hiring efforts,” […]
US high schoolers want financial education, but many schools don’t offer it: survey
A recent survey by Intuit found that U.S. high school students want to learn about personal finance in schools but that many lack access to such courses at school, while parents may be reluctant to teach their children about financial literacy. Intuit’s Financial Education survey found that 85% of U.S. high school students said they’re […]
Should the Government Get Rid of 401(k) Accounts? How You Should Prepare in Case These Economists Get Their Way
Two high-profile economists recently stirred up controversy by recommending that the IRS eliminate tax-deferred contributions to 401(k) accounts. Sweeping changes are unlikely to happen anytime soon, and your nest egg isn’t in jeopardy of going away, so don’t panic about the headlines. Still, it’s important to understand the challenges and potential solutions that policymakers are facing […]
Would Taxing All Earned Income Resolve Social Security’s Growing Cash Shortfall? The Surprising Answer…
The most-popular solution to Social Security’s $22 trillion long-term funding shortfall would itself come up short. For a majority of our nation’s retirees, Social Security income is a necessity to make ends meet. Estimates from the Center on Budget and Policy Priorities show that 22.7 million people are lifted above the federal poverty line annually via their […]
Americans Think They Need $1.8 Million to Retire. Here’s How You Can Get There
Americans believe they’ll need at least $1.8 million to retire, an increase from last year’s magic number of $1.7 million. However, not very many are confident they’ll be able to get there. These are the two top-line takeaways from this year’s 401(k) Participant Study published by Charles Schwab, the annual study that tracks important retirement […]
Nvidia is in a bubble, stocks will disappoint for a decade, and a recession will strike this year, markets guru warns
Nvidia hype is a bubble that will burst, stocks will disappoint for the next decade or longer, and a recession will strike this year, Jesse Felder said. The veteran analyst behind “The Felder Report” made his case on the latest “Thoughtful Money” podcast episode. He warned the microchip buying frenzy wouldn’t last, the market’s outsize returns would dry up, and […]
Here’s what to do with your retirement savings when markets are shaky
The stock market can deliver a jolt when we least expect it. April 10 was no different. US consumer prices came in hotter than expected in March, according to the latest data from the Bureau of Labor Statistics. The Consumer Price Index rose 0.4% over the previous month and 3.5% annually, an acceleration from February’s 3.2% annual gain […]
The Maximum Social Security Benefit Is $4,873 in 2024. Why Do Most People Get Way Less?
High hurdles mean the vast majority of retirees get less than the maximum benefit. The wealthiest Social Security beneficiaries are taking home a record $4,873 per month in 2024, up from $4,555 per month last year. That kind of money could support a pretty comfortable retirement, especially when paired with personal savings. But claiming checks […]
Should the Government Get Rid of 401(k) Accounts? How You Should Prepare in Case These Economists Get Their Way
Two high-profile economists recently stirred up controversy by recommending that the IRS eliminate tax-deferred contributions to 401(k) accounts. Sweeping changes are unlikely to happen anytime soon, and your nest egg isn’t in jeopardy of going away, so don’t panic about the headlines. Still, it’s important to understand the challenges and potential solutions that policymakers are facing […]