Latest news with #AaronCirksena
Time of India
23-06-2025
- Business
- Time of India
Social Security revamp threatens to cut income and delay retirement for millions of Americans
Social Security retirement age 2025 changes are hitting hard as millions of Americans face delays in claiming full benefits. With the full retirement age (FRA) now set at 67 for those born in 1960 or later, many are forced to work longer or lose up to 30% of their monthly checks. Financial experts warn that the FRA could rise to 69 soon, cutting average lifetime benefits by over $400,000. As the Social Security trust fund nears depletion by 2034, future retirees may get only 77% of promised payouts. Learn how these big shifts impact your retirement planning. Millions face smaller Social Security checks as full retirement age rises to 67 in 2025. Experts warn of more cuts if the age reaches 69. Learn how this affects your benefits and what changes could come next. Tired of too many ads? Remove Ads Why is Social Security full retirement age now 67 — and could it go higher? Tired of too many ads? Remove Ads How much money could Americans lose under the new retirement age? Will Social Security raise the retirement age again soon? What happens if Social Security's trust fund runs out? Tired of too many ads? Remove Ads Who is most affected by the full retirement age hike? What changes could still be coming to Social Security? Raising the payroll tax cap, so high earners contribute more. Adjusting benefit formulas to favor low-income retirees. Gradually increasing the retirement age even further beyond 69. What should Americans do now? FAQs: Millions of Americans are set to lose part of their Social Security income as the retirement age reaches a historic high — with even more painful changes possibly on the decades, Social Security has been a critical safety net for older Americans, providing retirement benefits after years of hard work. But now, many workers are being told to wait longer to retire — or take a permanent cut in their benefits. Beginning in 2025, the full retirement age (FRA) has officially moved up to 67 for anyone born in 1960 or later. And that's not the end of the road — experts say the age could climb even higher in the near to retirement planning expert Aaron Cirksena, CEO of MDRN Capital, the full effect of a law passed in 1983 is finally hitting hard, leaving many Americans blindsided. 'This change was baked into law back in 1983, but its real impact is only now hitting millions nearing retirement,' Cirksena told The U.S. Social Security Act, originally passed in 1935, set the retirement age at 65. But in 1983, lawmakers approved a slow, phased-in increase in the retirement age to reflect longer life expectancy. That law is now fully implemented — meaning anyone born in 1960 or later must wait until age 67 to collect 100% of their can still choose to retire early at age 62, but doing so comes at a cost. Those who claim Social Security at 62 will see a benefit reduction of up to 30%. That means if your full benefit at 67 would have been $1,000 per month, you'd receive just $700 by retiring shift affects a growing group — roughly 257 million Americans between the ages of 30 and 55, many of whom are now reassessing how long they'll need to stay in the financial loss from the retirement age change isn't just monthly — it adds up over a lifetime. According to the Congressional Budget Office (CBO), people impacted by the increase could lose about $420,000 in lifetime an average of $3,500 less per year for retirees across their retirement years. And that's assuming the FRA doesn't go even higher — which experts say is very serious talk in Congress about raising the retirement age to 69 between 2026 and 2033. The Republican Study Committee, an influential conservative policy group in the House, is currently pushing the proposal, which would hit Americans born after 1960 hardest — particularly those now in their 30s to early warns that 'Raising the retirement age again is not far-fetched.' He explained that lawmakers may prefer this method because it quietly reduces lifetime benefits without slashing anyone's current check outright — making it politically safer than raising taxes or cutting benefits of the driving forces behind the FRA increases is Social Security's looming financial crisis. A 2024 report by the Social Security Board of Trustees projected that the program's trust fund for retirement benefits could be depleted between 2033 and that happens, seniors would still get benefits — but only about 77% of the full pointed out that the program wouldn't 'disappear,' but the cuts would be felt. 'The future of Social Security won't be about whether the program disappears, but how much less it provides,' he impact is not the same for everyone. While wealthier Americans may be able to delay retirement, those in physically demanding jobs or facing health issues often can't wait until 67 — let alone those workers, the earlier FRA means permanent financial in a lower-paying job who needs to retire early might miss out on tens of thousands in lifetime benefits, simply because they couldn't afford to work stabilize Social Security, several proposals are on the table. These include:'Each of these options kicks the can further,' Cirksena said, 'but none fully solve the funding gap.'With President Trump currently in office, Social Security is again under the spotlight, and the direction Congress takes in the next few years could define retirement for reality is that Social Security is changing, and younger Americans are likely to see less generous benefits unless major reforms are made. For those nearing retirement, it's crucial to understand how FRA changes affect your personal timeline, and plan suggests Americans speak to retirement advisors and consider how early or delayed retirement affects their benefits while the system isn't vanishing, the writing on the wall is clear: retirees in the future may need to rely less on Social Security and more on personal savings, pensions, and smart you're unsure what this means for you, the SSA has calculators on its website to help estimate your benefits based on your birth year and planned retirement full retirement age is now 67 for anyone born in 1960 or lawmakers are considering raising the retirement age to 69 between 2026 and 2033.
Newsweek
10-06-2025
- Business
- Newsweek
Germany To Start Saving for Gen Alpha's Retirement
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. For the youngest generations, saving for retirement isn't at the top of the agenda. But in Germany, youngsters are getting a leg up from the government to begin putting cash away for later in life. The country's new government plans to roll out an "early start pension," giving children as young as 6 a head start on retirement savings. Under the proposal, students aged 6 to 18 who are in school would receive 10 euros—about $11—each month from the government. Over 12 years, this would total 1,440 euros per child, not including any additional gains from investing the funds. When they reach 18 years, account holders will be able to add in their own funds, subject to annual limits. The profit will be tax-free until retirement, when the money becomes accessible. Germany's current retirement age is 67—and could increase in the future—meaning these savings could grow over more than 60 years. While relatively speaking in the scope of saving for retirement, 1,440 euros is a relatively small sum—but when interest comes into the mix, there are potentially large gains to be made by the time retirement comes around. "The idea is very forward-thinking," said Aaron Cirksena, founder and CEO of MDRN Capital. "Especially in a world where I believe time is your biggest asset." Indeed, time is the key ingredient behind the idea—the financial snowball effect where early, steady savings can yield exponential gains over time, and starting in childhood gives that snowball a massive head start. According to Cirksena, the long-term benefits of such a policy could be transformative. "The positives could be huge…a shift toward long-term planning for a whole generation." "The risks are also very real," Cirksena warned. "If the funds are mismanaged or politically steered, you're setting up a system that could easily lose the trust of the public. Plus, if families can't contribute regularly, it might widen the wealth gap rather than close it." Generation Alpha typically refers to individuals born between 2010 and 2024. Generation Alpha typically refers to individuals born between 2010 and 2024. Photo-illustration by Newsweek This concern becomes even more pressing when imagining a similar system in the U.S. Millions of Americans—particularly gig economy workers and low-income families—already struggle to save for retirement. Without strong government support, a U.S. version of the early start pension could reinforce existing disparities. "For this to work in the U.S., there'd need to be automatic contributions or government matching," Cirksena explained. "Otherwise, it just becomes another plan only the financially stable can benefit from." Still, the long-term appeal is certainly enticing. With Social Security under strain and Americans living longer, a supplemental, privately funded retirement system could reduce reliance on public benefits—if designed well and made widely accessible. "In theory, a funded system could relieve some future burden by creating personal retirement wealth that doesn't rely on Social Security," Cirksena said. "But it takes decades to see that impact. "It's not a replacement, but it might be a smart layer on top if done right." As it stands, there is no similar program for young people to get saving early for retirement in the U.S. But some lawmakers want to make building a nest egg easier. In May, Texas Senator Ted Cruz introduced the Invest America Act, which would establish a private tax-advantaged account with a $1,000 seed investment from the federal government for every American child when they are born. Cruz said the change would "trigger fundamental and transformative changes for the financial security and personal freedoms of American citizens for generations." "Every child in America will have private investment accounts that will compound over their lives, enhancing the prosperity and economic participation of the vast majority of Americans," he said in a statement. "When people years from now talk about the changes created by Republican efforts this Congress, this is one of the landmark achievements they will talk about."
Yahoo
21-05-2025
- Business
- Yahoo
5 must-know tips for financial advisors going virtual
Zoom calls and screen sharing may feel like the norm for many financial advisors these days, but the rise of virtual advising is still a relatively new development in the world of wealth management. Before the pandemic, just 13% of clients met with their advisors virtually, according to research from YCharts. By 2024, that figure increased by nearly threefold, with 38% of clients saying they meet with their advisors virtually. The COVID-19 pandemic may be the catalyst that ignited that trend, but advisors say the shift to virtual practice is here to stay. Even with the rapid growth of virtual advising over the last five years, the industry is still at an early "inflection point" in the journey toward digital practices, said Aaron Cirksena, founder and CEO of MDRN Capital in Annapolis, Maryland. READ MORE: In a virtual world, advisors need to curate their digital personas "We wanted to get ahead of it, because I saw [the change] back in 2023 when I made the full shift [to a virtual firm] and I said, 'I'm just doing away with office space,'" Cirksena said. "The whole reason was because … I asked my in-person clients who lived five minutes from my office if they wanted to come back in and meet with me in person, and 80% of them said, 'No, we'll just keep doing Zoom meetings. It's easy.'" That preference for virtual meetings is especially strong among wealthier clients. Asked about how they would prefer to meet with their advisor, 43% of clients with more than $500,000 under management said they prefer virtual meetings, according to YCharts research. "The wealthier people, the ones we typically deal with, they value their time over everything," Cirksena said. "They don't care where the best person is. They don't care about meeting or shaking hands with the best. They just want somebody that they view as being the best, most knowledgeable in any job that they're going to hire somebody for, and they want to make sure that they are getting to spend their time as efficiently as possible." Advisors say that getting started in a virtual firm can be relatively simple compared to a brick-and-mortar operation. But simply operating a digital firm is different from excelling in it. For advisors looking to kick their digital practice into the next gear, here are five things to know about operating a successful virtual firm. Serving a niche clientele can benefit most advisors, whether or not they're virtual. But when a virtual advisor finds themselves competing with other advisors from across the country, differentiating themselves through a niche specialization is vital. Still, advisors who have been successful in the virtual advising world say going hyper-specific isn't always necessary. "I kind of feel like I did a pseudo niche," said Autumn Knutson, founder of digital-native firm Styled Wealth. "I work with impact-driven individuals. And sometimes people say, 'Well, what is that?' A lot of times, people have an understanding of what that is. That understanding varies, I will admit, but most people have their own understanding of what that is. And if that resonates with someone, then we may be a very good psychographic fit." READ MORE: The rewards financial advisors find working with niche clients For virtual advisors like Knutson, working in a niche isn't just for marketing purposes, it's also a way to ensure her firm is attracting clients it wants to work with. "I want everyone … to find a good fit, but that fit is not always me," she said. "And so I've tried to niche and be very intentional for people to know who I am, what I'm going to provide, what the experience is like." Virtual advisors can often forgo traditional costs like commuting and office space, but one place they spare no expense is their tech stacks. "Tech is what I spend the most money on," Knutson said. "I care very much that it's well-fitting to the experience that I want, to the efficiencies I care about." READ MORE: Ask an advisor: What AI tools are financial advisors using right now? Tech is far from exclusive to virtual firms, but the capabilities the two kinds of firms need can necessitate different software, advisors say. CRM and custodian options that work well for a local firm may not translate well to a virtual practice. Cirksena, who used BNY Pershing as a local advisor, made the switch to Altruist after going virtual. "Altruist has worked very, very well for a fully virtual advisor. Their platform is excellent," he said. "It's all digital account opening and everything." "There's nothing that we can't do virtually … that somebody can do in person," Cirksena said. "You just have to think about what you would do in every aspect of the job if you were in person. And then you need to think about, 'Does that need to change in some small way, doing things virtually?'" Marketing on a national level is no small task for virtual advisors. At MDRN Capital, which had roughly $150 million in AUM in 2024, Cirksena said they spend close to $500,000 a month on marketing. "We know what our client acquisition costs are, so we know that those are profitable dollars for us to spend," Cirksena said. "But it's different when you're marketing on a national scale. You're not competing with the Edward Jones office that's down the street, or the local independent guy who's down the street. You're competing against Fidelity. You're competing against Fisher Investments, Creative Planning, Vanguard, Mariner Wealth — like those are the ones you're competing against, essentially." Marketing on platforms like Facebook and Google can become a major expense for many virtual advisors, but competing on a national scale also requires that advisors do more than simply buy ads. Creating finfluencer-esque content that provides value to viewers can be an effective way to accomplish that, advisors say. READ MORE: Fiduciary standard drives client trust in advisors: Cerulli research "If you put out good content and you don't ask for anything in return … people will find it," Cirksena said. "And when they eventually are at the stage that they're looking to work with an advisor, if they're open to working with somebody nationally, who's the first person they're going to think of calling? They're going to think of the person that they've seen or heard who added value to them, and who didn't ask for anything in return for the value that they gave them." Alongside sharing things like educational content, advisors say authenticity is key to marketing in a saturated market. Tim Witham, founder of Balanced Life Planning in Villa Hills, Kentucky, said that even a simple video on his homepage has helped clients connect with him. "They're like, 'We loved what you had to say. You were very laid-back,'" Witham said. "It wasn't a perfect video. It's kind of weird, clients actually appreciate that you're human, and it's not like super edited." Knutson followed a similar style when writing the copy for her website. "I spent a lot of time … on the copy of my website, making sure it's my voice and not just something that looks pretty," Knutson said. "I've gotten numerous times people say, 'Oh, I met you and you sound like your website,' because it's my voice, it's my words, it's my heart, and that's my storefront." Beyond the technical work of financial planning, advisors say that connecting with clients on a personal level is essential to creating strong relationships. Virtual advisors don't have the benefit of sitting across a table from a client or going out to lunch with them, but advisors like Knutson say that deep, intentional listening can go a long way toward closing that gap. For Knutson, she creates that connection by "naming curiosities" in conversations with her clients, asking questions like "What was that pause about? Can you bring me into what was going on in your head?" READ MORE: Do clients trust you? Depends on who they — and you — are Even simple things — like looking into the camera properly on a video call or communicating promptly — can make a big difference in creating a sense of trust with a client, Knutson said. Creating that trust over virtual calls can be more difficult with older clients. But Cirksena said that age isn't as big a barrier as it's often made out to be when talking about advising clients virtually. "Is there going to be a small percentage of people who are over 75 years old, who wouldn't want to open a Zoom meeting? Maybe. But everybody now, between the ages of 55 and 70 even, 90-plus percent of them are totally comfortable with opening a Zoom meeting," Cirksena said. Advisors are often thinking about what they can do to make their virtual practice mirror a local one, but digital-first advising also provides the opportunity to advise clients in ways that local planners rarely utilize. Knutson and Witham both use forms of asynchronous communication with their clients as a way of differentiating their firms. READ MORE: Compliance teams have their 👀 on emojis For busy clients, Witham said he will record a video of himself reviewing a client's financial plan and send it to them, so they can watch it in their own time. After watching the video, Witham and the client can have a more efficient call that saves the client time. "I live my target niche. I am my demographic, which I think helps me a lot. I've got three kids — two are going to be in high school, and one's on the way. So like, my evenings are insane," Witham said. "Having to think about, 'Hey, I gotta meet with a financial planner to go over my plan,' can be really freaking hard to try to find the time to do that."
Forbes
20-05-2025
- Business
- Forbes
What Are You Really Getting For That 1% Advisory Fee?
Aaron Cirksena is the founder and CEO of MDRN Capital. A lot of people pay their financial advisory fee—0.75%, 1%, 1.25%—without stopping to ask, 'Am I getting value for this?' It's widely accepted as the industry standard. But if all you're receiving from that fee is basic investment management and an annual performance review, it's fair to ask if you are gaining or losing value. I often see someone paying 1%, even on a $3 million or $4 million portfolio, who's been dropped into a cookie-cutter 60/40 allocation after answering a five-question risk tolerance form. That portfolio might be just a blend of ETFs or mutual funds, with no customization, proactive planning or communication. I've seen portfolios from major firms where this is the entire setup. The advisor clicks a button to rebalance a generic model, and that's it. No tax strategy. No estate coordination. No protection planning. And the client ends up paying tens of thousands a year for something they could have done themselves with low-cost ETFs. One way to evaluate an advisory fee is by how it's applied across different investment types. Not all assets require the same level of management, yet many firms charge a flat fee regardless of what's in the portfolio. For example, I don't think advisors should charge fees on principal-protected investments, such as money market accounts, CDs or fixed annuities, where there's little active management involved. In contrast, market-exposed assets (stocks, ETFs, mutual funds and private investments) often do require more strategy and oversight, making fees more justifiable. This kind of tiered structure can increase transparency and lower overall costs for investors, especially if a significant portion of the portfolio is in lower-risk or fee-exempt vehicles. In some cases, the effective fee may fall well below the traditional 1%. Beyond investment management, it's worth examining whether your advisor provides additional services, such as tax planning, estate coordination or performance-based fee adjustments. If your advisor suspends billing during periods of negative performance or covers the cost of estate planning services, for instance, these are important factors to consider when assessing overall value. The first question to ask is: 'What am I paying my advisor?' It's surprising how many people don't know. That's a red flag. And once you know what you're paying, the next question is: 'What am I getting in return?' Are you getting better returns than a passive ETF? Are you getting tax-efficient withdrawal strategies? Are they coordinating with your CPA or helping with estate planning? Or are you just getting handed a model portfolio and told to stay the course, no matter what? If you're not getting more than what you are willing and able to do on your own, it may be time to ask what else your advisor is really doing for you. Value looks different for everyone. Some people want tax support. Others want regular communication or help handling market stress. Ask yourself: 'What stresses me out the most financially? And is my advisor helping me with that?' Peace of mind for you may be having your advisor walk you through which account to draw from each month in retirement or what happens to your house and other assets after your death. If your advisor isn't taking the most important weight off your shoulders, it's worth reevaluating your relationship. Sometimes full-service advice doesn't make sense, especially for younger investors still building wealth. If you're 30 or 40, earning well and just need a few clear guidelines—max out your 401(k), diversify your portfolio, rebalance yearly—you probably don't need to pay a 1% fee. That said, if you've got a complex tax situation or want help planning a big life decision, there's still room for advice. It just doesn't always have to cost 1% of your assets under management. The best time to reevaluate your advisory relationship is when your life changes. Whether you're approaching retirement, receiving an inheritance, facing a health issue or selling a business, ask: 'Is my advisor equipped for this phase?' My firm specializes in retirement planning, so our services are a great fit for someone in their 60s but probably not for someone in their 20s. We work with clients who share a common set of concerns, such as how to draw down their savings in a tax-efficient way and how to ensure their estate plans are in order. These needs tend to become more pressing as people approach retirement, and they often require a different kind of guidance than what's needed during the accumulation years. If you've been working with someone for a while, take the time to look back. How has your portfolio done (after subtracting advisory fees) over the past five, 10, 20 years? Has your advisor made changes during periods of volatility, or did they just stick with the same playbook? The market environment in 2022 is a useful example. As interest rates rose sharply, many investors with traditional 60/40 portfolios saw unexpected losses on the bond side, which is often assumed to provide stability. Some were surprised by how much they lost, raising questions about how well their risk exposure had been explained or managed. In hindsight, it wasn't just a matter of market performance; it highlighted the importance of communication and planning during periods of rapid change. At the end of the day, you have to add it all up. Maybe your advisor isn't beating the market every year, but are they helping you make smart withdrawals? Are they reducing your stress? Are they saving you time and energy you'd rather spend elsewhere? If you can say, 'I'd feel worse off doing this on my own,' then your advisor is probably worth the fee. But if not, if the value just isn't adding up, it might be time to ask for more or move on. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
Forbes
15-05-2025
- Business
- Forbes
How The Fed's Next Move Could Make Or Break Job Prospects For New Grads
New graduates are facing a changing job market. The job outlook for the Class of 2025 is murky, and the Federal Reserve's interest rate decisions are a big reason why. The Fed doesn't hire or fire workers, but its interest rate decisions influence how much it costs businesses to borrow, invest and expand. Higher interest rates can lead companies to slow hiring, while lower rates may do the opposite. Right now, those rates are high—and have been for more than a year—as the Fed tries to bring down inflation. A pause on rate hikes is currently in place, but possible cuts later this year could shift the hiring landscape. The Fed's main lever is the federal funds rate, which affects borrowing costs across the economy. Between March 2022 and July 2023, the Federal Reserve raised interest rates 11 times. These rate increases are still working their way through the economy, making it more expensive for companies to take out loans, launch projects and hire new personnel. "Rate cuts don't work like a light switch," says Aaron Cirksena, CEO of MDRN Capital. "It usually takes a few months for lower borrowing costs to go through the economy, especially into hiring budgets." According to the Fed, higher interest rates raise the cost of capital and can slow business investment, which may reduce job creation. Despite the Fed pausing rate hikes for now, they remain elevated, tightening labor markets in industries sensitive to financing costs, including: "High rates tighten budgets across the board," Cirksena says. "Companies become more cautious with hiring and often pull back on entry-level roles or internships first." For students tossing their caps this spring, that means a world of mixed signals: The healthcare sector is projected to add an average of 2 million jobs each year, but manufacturing lost 82,000 jobs over the past year and shed 1,000 in April alone, as wages dipped and hours shrank—signs of a sector continuing to cool. Logistics companies still need workers, but entry-level roles are dwindling as companies replace them with AI. For new graduates, the job market offers both promise and pressure. The latest figures from the Bureau of Labor Statistics show 8.2% of people ages 20 to 24 were unemployed in April, nearly twice the 4.2% rate for those ages 25 to 34. Long-term joblessness is also rising, signaling deeper cracks in the transition from classroom to career. What happens next depends not just on market forces, but on how quickly the Fed adjusts policy and how prepared grads are to adapt. If the Fed cuts rates later in 2025—as many economists expect—some sectors could rebound quickly. "Lower rates will make it easier for these sectors to fund new projects, expand ops and hire staff," says Cirksena. Tyler Schipper, associate professor of economics at the University of St. Thomas, added that housing-related fields may also see renewed activity, generating jobs for real estate professionals and at banks, where there will be increased demand for refinanced mortgages. Healthcare is one industry that continues to show strength regardless of rate moves. According to the BLS, healthcare added 51,000 jobs in April, with steady gains in hospitals and ambulatory care. The World Economic Forum's Future of Jobs Report 2025 shows that demand for workers in two more industries, renewable energy and logistics, is only expected to grow. Despite the economic uncertainty, experts say new grads shouldn't lose hope—but they should act strategically. "Graduates should cast a wide net," says Schipper. "Landing a first job is important, and they will not be in it forever." Cirksena recommends sharpening practical skills through certifications, short-term projects or targeted training. "Specialize quickly," he says. "Even online certs or project-based work can help." Experts also suggest: "We are in an environment where practical skills matter," says Schipper. "Experiences where you solved a real problem—that's what makes you memorable in an interview." And while the effects of a rate cut might take months to ripple through the job market, being prepared now can help grads move fast when the right opportunity opens up. So, while the Fed's wait-and-see approach isn't delivering a quick boost to new grads, it's not all bleak either. Growth continues in healthcare and green jobs, and if rates drop later this year, hiring could accelerate. For the Class of 2025, preparation and persistence are key.
