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Yahoo
19-07-2025
- Business
- Yahoo
35 and Clueless About Retirement Savings? Here's How Much You Should Have Stashed
Saving money for retirement is a cornerstone financial habit that can make life easier when you no longer want to work. Even if you want to work for the rest of your life, having a robust nest egg can give you extra financial security in the event you can no longer physically work in the future or end up with expensive medical bills. Read More: Discover Next: If you are 35 years old, you still have multiple decades ahead of you in which you can save and invest your money. You might already be ahead of your peers, and if you aren't, now is a good opportunity to catch up and get your finances on the right track. This guide will unveil how much you should have stashed away at 35 and different strategies you can use to outperform the average saver. How Much Should You Have Saved Before Turning 35 Melanie Musson is an insurance and finance expert at Clearsurance. She believes the amount you should have saved before turning 35 depends on your annual salary. You can use that number to calculate how much you should have. 'At the very least, you should have as much saved in a retirement account as your annual salary. So, if you earn $75,000 a year, you should have $75,000 in your retirement account. Additionally, you should have an emergency fund of approximately $10,000,' Musson said. Jacob Fuller, a financial coach at Trysmartly, also recommends using your annual salary as a baseline. However, he presents a wider range in his analysis. 'By age 35, a general benchmark is to have saved about 1 to 1.5 times your annual salary. So if you're earning $80,000, your total savings, including retirement accounts, emergency funds, and investment portfolio, should ideally be somewhere between $80,000 and $120,000,' said Fuller. 'Now, this isn't a hard rule; it's a guideline. Your circumstances, career path, and life choices all play a role. The key is being intentional and making consistent progress toward long-term financial security.' Move On: What To Do If You Are Under 35 Years Old If you are in your 20s, you have more time to save money and adopt good financial habits that align your savings with the ranges that Musson and Fuller provide. Both financial experts laid out how people who are under 35 can reach their prescribed retirement savings goal. 'If you are 22 and want to meet a savings goal by the time you're 35, you can simply contribute the yearly limit to an IRA every year. That will put you ahead of your goal. If you're a high earner, you'll need to do more than that to have equal to your annual income saved, but for the average person, contributing to an IRA will be all you need to do. If you're 30 years old and haven't saved anything yet for retirement, you can still reach your goal by 35. You will need to be disciplined,' Musson said. Fuller provided a checklist that he goes through with all of his clients. These are the smart habits he instills into his clients: Prioritize saving early and often: Automating contributions to retirement accounts and high-yield savings makes it non-negotiable. Invest consistently: Start with your 401(k), especially if there's an employer match, and branch out to IRAs or brokerage accounts when you can. Track spending and avoid lifestyle creep: Your income may rise in your 20s and 30s, but if your spending rises just as fast, you'll stall progress. Build an emergency fund: Aim for 3-6 months of expenses to avoid derailing your long-term goals when life throws you a curveball. Can You Catch Up If You're Over 35 and Behind? It's possible to catch up if you have fallen behind on your retirement savings. Fuller suggests prioritizing income growth, saving 20%-30% of your income, reworking your budget, and assessing where you are financially. 'You may have some ground to make up, but you're not out of options, and it's never too late to take control of your money,' said Fuller. Musson encouraged people to reclaim their finances while prioritizing retirement account contributions. 'Start today. Don't wait another day. Start with maximizing your IRA contributions. Then, if you have access to a 401(k), start contributing to that, as well. You can still catch up. By the time you're 35, you're likely to be settled into a house, and your income should still be increasing. Every time you get a raise, put the extra income toward retirement. Resist the urge to bump up your living expenses. Stick to your budget and save more,' Musson suggested. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth 5 Types of Cars Retirees Should Stay Away From Buying This article originally appeared on 35 and Clueless About Retirement Savings? Here's How Much You Should Have Stashed 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
Yahoo
26-06-2025
- Business
- Yahoo
How the Middle-Class Can Protect Their Paychecks From Inflation in 2025
Many households are feeling the pinch at the grocery store, gas pump and beyond, as the price of everyday goods has increased by 2.5% since last year. However, with a few small shifts, it's possible to stay ahead of rising costs. Discover More: Read Next: From reviewing spending habits to parking savings into a high-yield savings account, here are ways the middle class can protect their paychecks from inflation in 2025. One of the most effective ways to stay ahead of rising costs is to have a clear understanding of your spending habits. When consumers review their expenses, they can identify unnecessary expenditures and make more informed financial decisions. 'Audit your subscriptions,' said Michael Rodriguez, certified financial planner (CFP®) and an advice-only financial planner at Equanimity Wealth. 'Most people forget half of what they're signed up for.' 'You can also reduce takeout without giving up convenience by batch-cooking or prepping meals for busy nights,' he added. 'And sharing streaming or family plans with relatives or friends can cut costs without losing access.' Find Out: In an inflationary environment, saving money isn't about putting money aside; it's about where that money lives. 'Save money from every paycheck,' said Melanie Musson, a finance expert at Clearsurance. 'Even if you only save $100, you'll build a savings account, and you'll know you have an extra $100 every month if inflation drives prices up. If you can save more, that's even better.' Consumers should prioritize high-yield savings accounts or certificates of deposit (CDs) that offer stronger returns than traditional bank accounts. Even small differences in interest rates can add up over time. 'Don't let all your cash sit in a traditional savings account,' Rodriguez said. 'Consider high-yield savings, I-Bonds, or even short-term Treasuries if you want to keep it safe but get a bit more return. 'Invest consistently. The cost of waiting can be greater than short-term inflation. Time in the market still beats timing the market.' Automating transfers on payday can help build consistency, and creating separate savings buckets for emergencies, big purchases and future goals adds structure and clarity to financial planning. When inflation hits, essentials like food and household goods are often the first to rise in price. By adopting more strategic purchasing habits, consumers can reduce costs without compromising quality or convenience. 'If inflation happens, things like food, energy and shelter will be affected the most,' said Lucia Lu, a senior business consultant at Nextpins. 'The good thing to do? Purchase in bulk.' 'Non-perishable items and household essentials such as paper towels or canned items cost less when purchased in bulk. To reduce costs on things like fresh vegetables, look into cheaper alternatives like frozen versions or store brands without giving up on quality.' When inflation rises, cutting back doesn't have to feel like a loss. By making thoughtful adjustments, consumers can reduce spending in ways that are both sustainable and satisfying. 'Cutting down doesn't have to mean sacrificing your quality of life,' Lu said. 'Try cooking at home more often, as it's typically more affordable than takeout or dining out. Reducing your grocery bill doesn't require eating less, just being smarter with meal planning and buying in-season produce.' Lu added, 'Another easy win? Use a cashback credit card to offset some everyday costs.' Managing money during inflation doesn't have to be overwhelming. There are plenty of apps designed to simplify the process. Budgeting tools like Mint, YNAB (You Need a Budget) and Rocket Money help track spending, spot trends and stay on target. For saving and investing, apps like Acorns and Digit automate small contributions that add up over time. Cashback and rebate apps, such as Rakuten, Ibotta, or Fetch, can also help consumers stretch their dollars further on everyday purchases. 'I like You Need a Budget for people who want structure and a fresh start,' Rodriguez said. 'It's great for building more awareness around spending. Empower is another one I recommend to clients who want to track net worth and cash flow in one place without overcomplicating things.' More From GOBankingRates These Cars May Seem Expensive, but They Rarely Need Repairs This article originally appeared on How the Middle-Class Can Protect Their Paychecks From Inflation in 2025
Yahoo
30-05-2025
- Business
- Yahoo
Sam's Club Phases Out Traditional Checkout—What It Means for You
Sam's Club is rolling out a major shift that will reshape the way customers shop at its 600 U.S. locations. The retail giant is eliminating traditional checkout lanes and going all-in on its Scan & Go system, which lets customers scan items with the Sam's Club app and pay as they shop. It's a bold move that promises convenience but also comes with some significant changes to the shopping experience and your wallet. For shoppers tired of waiting in long lines, this shift is a welcome upgrade. Scan & Go means you can breeze through the store, scanning as you go and paying via the app, bypassing the need for cashiers or self-checkout stations. New QR codes will make it easy to purchase larger items and arrange delivery on the spot. But financial experts caution that convenience can come at a cost. 'The more convenient an experience, the more people spend,' Melanie Musson, a finance expert at Clearsurance, told GoBankingRates. That said, savvy shoppers might find Scan & Go to be a useful budgeting tool. By scanning each item, you can track your spending in real-time and adjust your purchases if you approach your limit. It's a practical way to keep impulse buys in check. Beyond groceries, the Scan & Go system extends to the Sam's Club Cafe and fuel stations, where QR codes allow for quick orders and payments. This creates a seamless shopping and fueling experience, speeding up your there's a potential downside: job losses. With AI scanners now verifying purchases at the exit, traditional cashier roles could be at risk. Sam's Club hasn't specified how many employees might be affected, but some locations, like Grapevine, Texas, have already introduced member specialists to help customers navigate the new technology. Whether you see it as a tech-savvy upgrade or a move away from human interaction, one thing is clear. Sam's Club is ushering in a new era of shopping. Sam's Club Phases Out Traditional Checkout—What It Means for You first appeared on Men's Journal on May 30, 2025 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
Yahoo
26-04-2025
- Business
- Yahoo
7 Key Signs You're Wealthier Than You Think
Controversial but consummately successful podcaster Joe Rogan once said he felt like he'd 'made it' financially when he had enough money to eat at a restaurant at night without feeling guilty and stressed about what it cost the following day. Learn More: Read Next: Rogan's net worth is now estimated at $200 million, which is all the money in the world — unless you're Elon Musk. That makes Rogan's $200 million fortune he made bloviating opinions less than 0.05% of Musk's $391 billion fortune he made buying cars and rocket ships. The point is that how you feel about wealth is subjective and can come from many sources. In a country where more than half of all six-figure earners reportedly live paycheck to paycheck, how do you know if you're rich, or at least richer than you think? Here are eight key signs you may be wealthier than most Americans. Your salary, of course, plays a significant role in your ability to accumulate wealth and has a lot to do with how you measure up to the masses. 'The median household income in the U.S. is around $75,000,' said Joel Ohman, certified financial planner and CEO of Clearsurance. 'So, if you make more than that, your income is higher than half the people in the country. 'Of course, how far $75,000 takes you will depend on where you live. For example, you have a lot more buying power with $75,000 a year in Glendive, Montana, than you would in Orange County, California.' Since the cost of living varies so dramatically from one place to the next, area median income (AMI) is a more accurate yardstick to measure your comparative wealth. HUD Loans by commercial property financing firm Janover offers a state-by-state AMI breakdown with metro, non-metro and total AMI variants. Fannie Mae has a map-based AMI lookup tool that allows for much more granular and local detail. Find Out: Even the most impressive income is no indication of wealth if you spend more of it than you make, which so many high earners seem to do. The more accurate barometer, then, is how much you have in the bank. 'If you're making higher than an average salary and have saved four times your annual income, and you're in your 20s, you're doing very well,' said Ohman. Ohman's benchmark is exceptionally high. The standard guideline is to have the equivalent of your annual salary saved by age 30, three times your salary by 40, six times by 50, eight times by 60 and 10 times by 67. Several studies have shown that more than half the country is behind on those milestones, so even being on par with your decade's goal lands you a spot among the more affluent half. Ben Richardson, financial expert, capital markets consultant and director of Acuity Training, feels that you're richer than you think if, 'you do not have debt or exorbitant bills weighing you down that need to be paid.' 'Being 'rich' means something different to everyone,' added Kendall Meade, certified financial planner at SoFi. 'For some, this may just mean being able to comfortably afford their lifestyle. For others, it may be a specific target salary or savings amount. For others, it may be having the freedom to change careers or leave the workforce completely.' 'In the current state of the economy, coupled with inflation, many families are surviving from paycheck to paycheck and have to anticipate when the next one is due to alleviate financial burdens,' said Richardson. The two most measurable indicators that you're wealthier than most Americans are that you earn more than 50% of them and have more money saved than 50%. 'You already have a sufficient amount contributed towards your retirement, and an emergency fund is not a concern or has already hit its target,' said Richardson. This means you also have money left over to invest. Richardson continued, 'Some people work two jobs to make ends meet, but it is different when you have money readily available to invest or put toward a passive income stream.' 'Going on vacation can be considered a luxury, especially if you are traveling internationally,' said Richardson. People who don't have savings or are living paycheck to paycheck may dream of going on vacation but can't afford it. However, if you are booking flights and hotels without anxiety and still have all of your expenses covered and then some, you might have a little more wealth than you give yourself credit. You might be wealthier than you think if, according to Richardson, 'you don't have to save up for a luxury item and can afford it easily.' As Joe Rogan said, even being able to go to dinner without stressing about the bill can make you feel rich even if you're not swimming in disposable income. The bottom line is that wealth is subjective, and some indicators that you might be richer than you think aren't as easy to quantify. How do you change your perception from operating from a deficit to operating from abundance? What do you earn and what do you have in the bank? In the concept's simplest form, the answers to those two questions will determine your comparative wealth. So, it may be time to reframe your mindset. Andrew Lisa contributed to the reporting for this article. More From GOBankingRates 6 Used Luxury SUVs That Are a Good Investment for Retirees 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth 7 Overpriced Grocery Items Frugal People Should Quit Buying in 2025 How Much Money Is Needed To Be Considered Middle Class in Every State? This article originally appeared on 7 Key Signs You're Wealthier Than You Think Sign in to access your portfolio
Yahoo
27-03-2025
- Business
- Yahoo
The Best $100 You Can Spend at Age 60, 65 and 70 for a Secure Retirement
When it comes to retirement, every dollar counts — especially as you get older. Making thoughtful financial decisions can make a big difference in long-term financial security. A small, smart investment of $100 can help retirees stretch their savings, protect their future and support the retirement they've worked so hard to enjoy. Below is the best $100 you can spend at age 60, 65 and 70 for a secure retirement. Also here are the fastest ways to save for retirement. Explore Next: Check Out: Financial planning at age 60 is often considered pre-retirement but close enough to ensure that one's choices reflect retirement money and lifestyle goals. Christopher Stroup, founder and president of Silicon Beach Financial, recommended consulting a fee-only financial planner to assess retirement readiness and optimize investment strategies. 'The focus is on maximizing your retirement savings, tax efficiency and Social Security timing,' Stroup said. 'You can also pay for a tax projection because understanding your tax liability can save you thousands later.' For You: Melissa Musson, personal finance expert at Clearsurance, said spending $100 towards estate planning is a smart money move at this age. 'If you haven't updated your will for a decade or more, it's time to reevaluate your plans for your estate,' she said. 'Make sure you have a power of attorney in place so that if you are unable to make decisions for yourself, someone you trust will act in your best interest.' Experts say that older adults should check for standard retirement benefits like Medicare and Social Security. 'Do a session with a Medicare specialist,' said Yehuda Tropper, CEO of Beca Life Settlements. 'Unfortunately, the system is complicated and it's easy to miss details that could cost you a lot later if you have a major medical emergency or a chronic condition.' Stroup said choosing the right benefits strategies can help retirees save money while avoiding costly penalties. 'Take a Social Security strategy course because delaying your benefits can wisely boost your lifetime payouts,' Stroup explained. In addition, Musson advised older adults over 65 to use $100 to hire a professional tax preparer. 'If you've always filed your own taxes, have a professional do it, especially if this is the first year you're retired,' Musson said. 'Things can be drastically different on your taxes and you want to make sure you don't end up owning money when you shouldn't have to.' Musson also said that, at age 65, going from being a full-time employee to retiring is a huge change that requires adjustments. 'Monitoring your assets and spending carefully for those first few years of retirement can make the difference in your money lasting throughout retirement and running out of funds too soon,' Musson added. Musson said that at age 70, most older adults are settled into retirement. 'But you still have to monitor inflation rates and the economy to ensure you remain in a good financial position,' she said. For example, Stroup said retirees aged 70 and older should get estate planning updates, including a legal check-up on wills, trusts and beneficiary designations. 'It's about managing your required minimum distributions (RMDs), reducing your tax burdens and preserving your wealth for the next generation,' Stroup said. 'To pay it forward, fund a Roth IRA for a grandchild because small contributions now can grow tax-free for decades.' In addition, Musson said age 70 is a great time to spend $100 getting a car tune-up. 'Getting stranded with car trouble is no fun for anyone, regardless of age,' Musson said. 'But at 70, you can't risk being stuck in very hot or cold weather while waiting to be rescued. Keep your car running reliably by getting a tune-up.' Stroup said that no matter their age, older adults can invest small dividends to secure retirement. 'The best investment isn't always financial; it's knowledge,' he said. 'A small expense today on expert advice can prevent costly mistakes down the road. Retirement security isn't just about assets; it's about strategy.' More From GOBankingRates 4 Things To Watch for as Elon Musk Takes on Social Security Here's the Minimum Salary Required To Be Considered Upper Class in 2025 Warren Buffett: 10 Things Poor People Waste Money On How Far $750K Plus Social Security Goes in Retirement in Every US Region This article originally appeared on The Best $100 You Can Spend at Age 60, 65 and 70 for a Secure Retirement Sign in to access your portfolio
