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Yahoo
9 hours ago
- Business
- Yahoo
The Next Step: Is this young lawyer on track to retire?
Retirement planning can feel overwhelming, but what if taking just one step could improve your outlook? That's the idea behind The Next Step, Financial Planning's newest series. We're inviting Americans from all walks of life to participate. By sharing basic details about their savings, income and retirement goals, participants provide a snapshot of their current financial situations. We then anonymize this information and present it to professional financial advisors, asking: What single step could make the biggest difference in this person's retirement readiness? Each edition of The Next Step will spotlight an individual's story and feature actionable advice from advisors on how they can take their next step toward a more secure retirement. For the inaugural edition, Financial Planning heard from a 26-year-old lawyer living in New York City. Here's a snapshot of their current finances and how they compare to an average U.S. adult in their same age bracket. The saver makes just under $84,000 annually, roughly 43% more than the median full-time worker in their age range. Currently, 14% of their income goes toward retirement savings. After taxes and withholdings, they receive $4,858 in monthly income, more than enough to cover their average monthly expenses of $2,095. Even after attending law school, the saver has no debt. That puts them well ahead of the median debt figure for someone in their age bracket. Adults less than 35 years old report a median debt figure of just under $43,000. The saver has $5,000 stowed away for retirement, roughly 74% less than the median adult in their age range. About 60% of that is in pretax retirement accounts, while the other 40% is in nonqualified accounts. Based on their current income and contribution rate, they save just under $1,000 every month toward retirement. READ MORE: As Social Security claims surge, young investors brace for its absence The saver said they want to retire at 67, with plans to spend slightly more than they currently do. Based on their desired retirement age, FP projected how much money they can expect to have at 67, given a $5,000 starting base and a monthly contribution of $978. In the calculation, FP assumes an average inflation-adjusted return of 7%. General savings guidelines suggested by Fidelity Investments recommend having savings equaling one year of your annual salary by age 30, with the goal of having 10 times your annual salary saved by age 67. The saver also said they do not have a spouse with whom they share a retirement strategy. Based on the information they shared. Financial Planning asked advisors: "What single step could make the biggest difference in this person's retirement readiness?" Here's what they said: Prime time for Roth contributions Filip Telibasa, founder of Benzina Wealth If I could give just one piece of advice, it would be to start prioritizing Roth contributions now. At 26, their current tax rate is likely the lowest it will ever be, and they have decades ahead for growth. Every dollar contributed to a Roth account buys many years of compounding that will eventually be withdrawn tax-free. Currently, 60% of savings are in pretax accounts and 40% in nonqualified, which means there's most likely no Roth exposure. Shifting contributions to a Roth 401(k) or Roth IRA locks in today's lower tax rate while preserving future flexibility. As income and tax brackets rise over time, they can always pivot back to pretax contributions. The goal is to diversify across all three tax buckets — pretax, after-tax, and nonqualified. This way, they can strategically draw from each in retirement based on their tax situation. READ MORE: For Gen Z, retirement feels out of reach. Can advisors bring it closer? We can't predict future tax policy, but we know their taxes are likely at their lowest today. That makes Roth contributions the smart move while they're young. Heather Hofstetter, client service associate/paraplanner at Angeles Investment Advisors Given the client's age, my first question would be, "What does your emergency savings look like?" My second question is, does the employer match retirement contributions (and if so, how much?). If this client is not already saving enough to receive the full match, my first recommendation would be to increase their savings until they do. If they are already getting the whole match, then I recommend adding savings to a Roth IRA. If they could make the full $7,000 annual contribution, it would go a long way toward providing both income and tax efficiency in retirement, but even a smaller amount done consistently would benefit from the long-term compounding and give them flexibility and options later. (If they were fortunate enough to have a 529 that wasn't exhausted to pay for higher education, the 529 owner might be able to help them seed this account from the excess 529 funds!) Make a roadmap and follow it Judson Meinhart, director of financial planning at Modera Wealth Management If I were going to advise this person to do one thing that can help them, it would be to set a 10-year goal to start working toward. READ MORE: Confronted with college costs, parents reach for their 401(k)s Those early days of saving and investing can be intimidating (investment gains on a $5,000 balance are small, and contributions make up most of the account growth). It might feel like you're not making any progress in those early years, and it can be tempting to give up. Having a roadmap and an achievable 10-year target can help keep things in perspective. The goal doesn't have to be elaborate. A spreadsheet with projected contributions and investment growth can be a simple, yet effective, method to keep you motivated to save. Build a nest egg early Ben Loughery, founder of Lock Wealth Management The only thing I really see is if we could get them to 20% savings … or even meeting in the middle at 17 or 18%, especially before lifestyle creep, possible family with kids in the future, etc. That way, we have time on our side, building the nest egg early. When those bigger expenses do come up around mid-life life, we don't need to worry about playing catch-up as much. Prepare for the unexpected Samuel Molina, founder of The Academy of Financial Education The next step this person can take is to purchase whole life, disability, and long-term insurance to protect their wealth. If they are not insured, a disabling event can become very costly and drain their accounts. READ MORE: How to advise clients on Biden's SAVE plan before it disappears The whole life insurance policy would be to protect against down markets. If the person only has money in investment accounts and we experience a recession, near or during their retirement, they can use the cash value to weather the storm as their investment portfolio rebounds. Take a breath and treat yourself C Garrett Moore, founder of Moore Financial Management My advice for this individual would be: don't forget to enjoy life, too. In short, they're doing great financially. They have an excellent income for their age, they are living well below their means with zero debt, they are saving a fantastic amount, and they are being smart about their tax allocation. So long as they have their investments buttoned up alongside a decent cash cushion, they are in really, really good shape. If they haven't already, they need to take a breath, pat themselves on their back, and treat themselves to something they would like. I always recommend experiences that create memories you'll never forget. Ready to contribute? Financial advisors who are interested in contributing to future editions of The Next Step can submit their names and emails below, and Financial Planning will contact them when there is another opportunity to participate. Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
11-07-2025
- Business
- Yahoo
Cetera Brings Private Markets Products to Retail Investors
Financial planning conglomerate Cetera Financial Group Inc. is partnering with Wall Street heavyweights including Blackstone Inc. and Apollo Global Management Inc. to bring portfolios infused with private markets products to thousand of advisers. Bloomberg's Loukia Gyftopoulou has more on the story. 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
Forbes
10-07-2025
- Business
- Forbes
Wealth Protection Ethics: Legal Safeguards Rooted In Responsibility
Blake Harris is an Asset Protection Attorney and Founding Principle of Blake Harris Law. In today's litigious and highly transparent environment, protecting wealth is no longer viewed as an optional strategy; it is a fundamental component of responsible financial planning. High-net-worth individuals, particularly business owners, professionals and investors, often face elevated exposure to legal risk simply by virtue of their visibility and success. As asset protection strategies become more sophisticated and more common, so does public interest in how wealth is preserved and transferred. Conversations about financial transparency, fairness and legacy have grown more complex, especially in an era when headlines can shape reputations and regulatory scrutiny continues to evolve. In this context, effective asset protection must go beyond technical compliance. It requires ethical consideration. Preserving wealth wisely involves not only safeguarding it from unjust threats but also ensuring that the methods used reflect long-term values and a commitment to responsible stewardship. Legitimacy In The Spotlight: Protecting Wealth Responsibly Asset protection is entirely legal, and when structured correctly, it is designed not to obscure wealth but to insulate it from unjust seizure. In my practice, I often emphasize to clients that the goal is not to relinquish ownership but to strategically position assets beyond the reach of frivolous lawsuits or opportunistic creditors. Too often, asset protection is misunderstood or misrepresented as a form of tax evasion or secrecy. These perceptions are not only outdated but fundamentally incorrect. For U.S. persons, asset protection structures are tax-neutral. They do not reduce or eliminate tax obligations. Instead, their purpose is to safeguard assets from civil litigation, malpractice exposure or personal liability stemming from business ventures. Another misconception is that asset protection is something to pursue only when legal threats are imminent. In reality, the most effective strategies are proactive. By setting up structures before any claims arise, individuals avoid the appearance and legal risks of fraudulent conveyance. The best time to protect your assets is before you ever need to. Best Practices For Values-Aligned Wealth Protection The ethical framework of wealth preservation centers around intent, impact and integrity. Here are values-based principles that responsible clients and advisors should uphold: Transparent Documentation: Legitimate asset protection requires thorough documentation, clear trust deeds and consistent reporting to authorities like the IRS (e.g., Form 3520 and Foreign Bank and Financial Account Report [FBAR], where applicable). Purpose-Driven Legacy Planning: Protecting wealth should support long-term individual or family goals, not just short-term risk aversion. Offshore and domestic trusts can be structured to enable generational transfer while preserving legal separation. Philanthropic Structure: Asset protection and generosity are not mutually exclusive. Charitable remainder trusts, donor-advised funds and impact investment vehicles are legitimate tools for both shielding and sharing wealth. Incorporating ESG: Forward-thinking asset holders increasingly align their portfolios with environmental, social and governance (ESG) values, ensuring their wealth reflects their personal or family mission. The Role Of The Attorney As Steward Attorneys who specialize in asset protection serve not only as legal technicians but as strategic advisors who help clients make informed, values-based decisions. Their responsibility extends beyond legal compliance to include ethical guidance and long-term planning. Rather than simply executing what is legally allowed, responsible attorneys encourage clients to take a thoughtful approach, one that aligns legal strategies with personal values, professional obligations and reputational awareness. For example, effective advisors can help ensure that: • All planning is initiated well before any legal threats arise, minimizing the risk of fraudulent transfer claims. • Clients have a clear understanding of the purpose and limitations of any asset protection structures they use. • Trustees or fiduciaries are selected based on professional qualifications and a demonstrated ability to act with transparency and integrity. When carried out in this way, asset protection becomes not just a legal safeguard but part of a broader commitment to responsible wealth stewardship. Wealth As A Stewardship, Not A Shield Asset protection should not be viewed as a fortress built to hoard wealth but rather as a framework for responsible stewardship. As litigation risks continue to rise, so must the thoughtfulness and integrity behind the legal structures used to safeguard assets. Ethical wealth protection is not about concealment. It is about honoring what has been built, shielding it from unjust claims, preserving financial privacy as a legitimate right and ensuring that one's legacy benefits those it was intended to serve. 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?
Yahoo
24-06-2025
- Business
- Yahoo
More than a third of adults have already started budgeting for Christmas
More than a third of adults have already started budgeting for Christmas – despite it being six months away. A poll of 2,000 adults who celebrate Christmas revealed 36 per cent have financial plans in place – including for presents, family outings and outfits for seasonal parties. Nearly half (46 per cent) are saving supermarket loyalty points for the big shop and 33 per cent are using cashback apps to make the most of their spending. Others are shopping in sales (38 per cent) and buying things in bulk (29 per cent) to make sure they have extra money for Christmas 2025. In fact, a third (32 per cent) began thinking about preparing for Christmas as early as January 2025, putting aside an average of £63 a month to fund their festivities. Nearly half of those (45 per cent) like to do this because it spreads the cost across throughout the year and 44 per cent just like to feel prepared. While 79 per cent think forward planning is the only way to make it through the festive season without breaking the bank. The research found 36 per cent are already preparing for winter bills, by setting aside additional cash in the summer to help pay for energy as the weather gets colder. Many are also tightening control of their household bills, with 58 per cent of those with a smart meter using their in-home display to track their energy use and help with budgeting. Victoria Bacon, Director at Smart Energy GB, which commissioned the research, said 'The research clearly shows that, for many, a perfect Christmas is worth planning for. "As well as helping to ensure a smooth Christmas day, planning ahead and budgeting are great ways to help you manage your finances across the year. "A smart meter can really help with this as it ensures you receive accurate, not estimated bills. "For those on prepay, you get additional benefits such as the ability to top up from home and more easily check your remaining credit.' The research also found those who celebrate Christmas are expecting to attend an average of three celebrations and are anticipating buying 12 presents for friends and family. But one in five have even started stocking up on gifts, while 13 per cent have already snapped up discounted seasonal greetings cards and wrapping paper. And a tenth have started buying new decorations for December. The research, carried out via OnePoll, also revealed 36 per cent will be cutting back on other areas of their life to ensure they have enough money to fund Christmas – with 43 per cent claiming it's worth doing this to have a perfect yuletide. Personal finance expert Lynn Beattie, AKA Mrs Mummypenny, who is working with Smart Energy GB, said: 'Spreading the cost of Christmas throughout the year is a great way to minimise spending in December and help you enjoy the festive season. 'There are lots of things you can be doing in the run up, such as keeping a monthly tally of your outgoings, shopping in the sales and looking for bargains.' 1. Save a little bit every week Placing a small amount into a savings account every week can really add up over time. Many banks offer a round-up function where daily spending is rounded up to the nearest pound, with that amount going to a separate savings pot. 2. Start planning - now If you can identify everything you'd like to do this Christmas, you can work out roughly how much you need to save to cover the entire cost. 3. Get ahead of your bills using your smart meter The screen that comes with your smart meter allows you to see your energy usage, make adjustments and save money. If you have a smart prepayment meter you can top up your credit online or over the phone from the comfort of your own sofa instead of going to the shops. 4. Use loyalty cards and vouchers to pay for Christmas presents Many places offer loyalty schemes such as supermarkets, where you can collect points and vouchers and use them to buy presents. 5. Get cash back on all online purchases Set up an account with the cash back site and go there first to find your chosen retailer. Then click through as normal to your chosen retailer or bill provider, triggering the cookies and getting you the cash back if you make a purchase. 6. Sell your clutter I urge you to spend ten minutes looking around your house and finding ten items that you no longer use or want that you can sell.
The Sun
18-06-2025
- Business
- The Sun
Hundreds already budgeting for Christmas as expert reveals six tips for saving cash
MORE than a third of adults have already started budgeting for Christmas – despite it being six months away. A poll of 2,000 adults who celebrate Christmas revealed 36% have financial plans in place – including for presents, family outings and outfits for seasonal parties. 1 Nearly half (46%) are saving supermarket loyalty points for the big shop and 33% are using cashback apps to make the most of their spending. Others are shopping in sales (38%) and buying things in bulk (29%) to make sure they have extra money for Christmas 2025. In fact, a third (32%) began thinking about preparing for Christmas as early as January 2025, putting aside an average of £63 a month to fund their festivities. Nearly half of those (45%) like to do this because it spreads the cost across throughout the year and 44% just like to feel prepared. While 79% think forward planning is the only way to make it through the festive season without breaking the bank. The research found 36% are already preparing for winter bills, by setting aside additional cash in the summer to help pay for energy as the weather gets colder. Many are also tightening control of their household bills, with 58% of those with a smart meter using their in-home display to track their energy use and help with budgeting. Victoria Bacon, Director at Smart Energy GB, which commissioned the research, said: 'The research clearly shows that, for many, a perfect Christmas is worth planning for. "As well as helping to ensure a smooth Christmas day, planning ahead and budgeting are great ways to help you manage your finances across the year. "A smart meter can really help with this as it ensures you receive accurate, not estimated bills. Shopping discounts - How to make savings and find the best bargains "For those on prepay, you get additional benefits such as the ability to top up from home and more easily check your remaining credit.' The research also found those who celebrate Christmas are expecting to attend an average of three celebrations and are anticipating buying 12 presents for friends and family. But one in five have even started stocking up on gifts, while 13% have already snapped up discounted seasonal greetings cards and wrapping paper. And a tenth have started buying new decorations for December. The research, carried out via OnePoll, also revealed 36% will be cutting back on other areas of their life to ensure they have enough money to fund Christmas – with 43% claiming it's worth doing this to have a perfect yuletide. Personal finance expert Lynn Beattie, AKA Mrs Mummypenny, who is working with Smart Energy GB, said: 'Spreading the cost of Christmas throughout the year is a great way to minimise spending in December and help you enjoy the festive season. 'There are lots of things you can be doing in the run up, such as keeping a monthly tally of your outgoings, shopping in the sales and looking for bargains.' How to bag a bargain SUN Savers Editor Lana Clements explains how to find a cut-price item and bag a bargain… Sign up to loyalty schemes of the brands that you regularly shop with. Big names regularly offer discounts or special lower prices for members, among other perks. Sales are when you can pick up a real steal. Retailers usually have periodic promotions that tie into payday at the end of the month or Bank Holiday weekends, so keep a lookout and shop when these deals are on. Sign up to mailing lists and you'll also be first to know of special offers. It can be worth following retailers on social media too. When buying online, always do a search for money off codes or vouchers that you can use and are just two sites that round up promotions by retailer. Scanner apps are useful to have on your phone. app has a scanner that you can use to compare prices on branded items when out shopping. Bargain hunters can also use B&M's scanner in the app to find discounts in-store before staff have marked them out. And always check if you can get cashback before paying which in effect means you'll get some of your money back or a discount on the item. Mrs Mummypenny's top tips to save for Christmas 1. Save a little bit every week Placing a small amount into a savings account every week can really add up over time. Many banks offer a round-up function where daily spending is rounded up to the nearest pound, with that amount going to a separate savings pot. 2. Start planning - now If you can identify everything you'd like to do this Christmas, you can work out roughly how much you need to save to cover the entire cost. 3. Get ahead of your bills using your smart meter The screen that comes with your smart meter allows you to see your energy usage, make adjustments and save money. If you have a smart prepayment meter you can top up your credit online or over the phone from the comfort of your own sofa instead of going to the shops. 4. Use loyalty cards and vouchers to pay for Christmas presents Many places offer loyalty schemes such as supermarkets, where you can collect points and vouchers and use them to buy presents. 5. Get cash back on all online purchases Set up an account with the cash back site and go there first to find your chosen retailer. Then click through as normal to your chosen retailer or bill provider, triggering the cookies and getting you the cash back if you make a purchase. 6. Sell your clutter I urge you to spend ten minutes looking around your house and finding ten items that you no longer use or want that you can sell. .
