Fair Isaac, FICO, +1.41% the giant credit score company, recently announced the biggest change since 2014 in how it determines its FICO credit scores. This new FICO 10 system — expected to go into effect by year’s end — could affect your retirement in big ways, possibly for the worse and possibly for the better. […]
U.S. household wealth compared with income is near a record high. Unemployment is near a record low. So why is the personal savings rate so high? In the fourth quarter, savings as a percent of disposable income was 7.7%, more or less the post-crisis average. That’s a puzzle that the Goldman Sachs economics team led […]
Overspending is a common problem for seniors. In fact, a recent study from the Employee Benefit Research Institute found that while average spending among single retired individuals was $5,000 below household income, median spending exceeded median income by $3,000. Unfortunately, seniors generally aren’t overspending on extravagant trips or spoiling grandkids. Instead, when they spend more than their […]
While most Americans have a credit score that is generally considered “good,” it may be helpful for those looking to raise their rating to know exactly which factors agencies use to calculate it. According to Experian, the average FICO score in the second quarter of 2019 was 703, though scores tended to vary by age. […]
Wall Street loves to overcomplicate the process of investing. Throw enough arcane financial terms at a soon-to-be-retiree, ask them to choose between “variable annuities” and “covered call options,” or artificially segment their investing strategies into growth, value, and income holdings and chances are you will confuse your client so thoroughly that they will happily hand […]
In today’s era of Venmo and Zelle, where you can transfer money to your friends with the press of a few buttons, personal checks can feel very antiquated. And they are! But some people, and companies, still require you to write them a check. Just the other day, we had to write a check to […]
Most of us would probably like to be saving more money, as most people have not saved very much for retirement. About half of people aged 35 to 44 have less than $25,000 saved for retirement, per the 2019 Retirement Confidence Survey — and 23% of those aged 55 and older have saved less than […]
The simplest of dance moves is the head nod — it’ll get you through any wedding without embarrassment. And the simplest of tax moves? Reviewing your W-4 annually to get through any tax year without penalties for underpayment. A 2018 report from the Government Accountability Office estimated that 30 million U.S. taxpayers would owe taxes […]
Nobody likes paying more tax than they have to, and tax credits are one of the most effective ways Americans can reduce their tax liability and boost their tax refunds. In fact, Americans use tax credits to save billions of dollars on their taxes every year. However, some of the most common tax credits aren’t […]
Becoming a millionaire is totally possible. Yes, even if you aren’t making six figures a year. The bad news is, it might not happen until you hit retirement, and even then, it’ll only happen if you plan diligently throughout your working life. But don’t let that dampen your spirits. The road to becoming a retirement […]
A hot tax-advantaged opportunity is making the rounds among financial advisors. Just make sure you don’t overlook the risks. The Tax Cuts and Jobs Act, which went into effect in 2018, established so-called qualified opportunity zones — economically disadvantaged areas across the country. Funds specializing in qualified opportunity zones allow people to invest in these […]
Americans are working longer than ever, with 54% of U.S. adults saying they plan to continue working past age 65, according to a report from the Transamerica Center for Retirement Studies. Baby boomers, in particular, are most likely to delay retirement, with nearly 70% saying they don’t intend to retire by age 65. However, workers’ […]
