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Yahoo
17-06-2025
- Business
- Yahoo
The number 1 mistake retirees make with money
Planning for what happens to your finances when you're gone can be a tough but necessary conversation. On this episode of Decoding Retirement, Robert "Bob" Powell speaks with Jeffrey Levine, chief planning officer of Focus Partners Wealth, about balancing a happy retirement with a sizable nest egg for your family to inherit. Jeffrey discusses how to maximize tax efficiency, how aggressive your portfolio should be, and how to ensure your expenses don't exceed your income. Yahoo Finance's Decoding Retirement is hosted by Robert Powell. Find more episodes of Decoding Retirement at Some people think that estate planning is only for the wealthy, but it's not. And here to talk with me about that is Jeffrey Levine. He's the chief planning officer at Focus Financial and also, I think the chief planning nerd at Jeffrey, welcome. Yeah, lotsof different titles, really just a big, you know, big nerd is really what I am for All right, so two nerds talking to each other for, uh, 22 minutes or so. All right. So I, I, I, I, a lot of times people planning, that's not for me, you know, spousal limited access trusts, charitable remainder trust, charitable giving, that's for the wealthy, uh, but it's not. Tell us about that. Yeah, well, I think thefirst thing we need to do is make the distinction between estate planning and estate tax planning, right? Estate tax planning is one component of estate if you're not super wealthy, maybe you don't have to worry about estate tax planning, but there are still a lot of other elements of estate planning. For instance, there's a lot of income tax planning that can go around estate planning that could be how you leave your retirement accounts, for instance, to various beneficiaries. Do you name them on the beneficiary form versus leaving it to them through a will? Uh, who is your beneficiary? You know, with retirement accounts there different rules for let's say a spouse versus a uh a child that's healthy versus leaving it to a charity. They all have different post death distribution rules. Uh, if you leave a taxable account, like let's say money you just invested in your own name that you had bought, you know, something years ago for $1000 and now it's worth $10,000 there's a what's called a step up in basis there's some tax advantages there, but if we go all away from taxes, just thinking about, you know, if we ignore taxes, there's still, who do you want to get your money and how do you get there as efficiently as possible, and then what happens about all the other non-financial issues? What about who is going to make decisions on your behalf if you are incapacitated or otherwise not able to make those decisions that might decisions, but it might also be medical decisions. Uh, beyond that, thinking about if you have children or other individuals that you take care of maybe even adult individuals with special needs, maybe even a an elderly parent if something happens to you who becomes the guardian who will take over care for these individuals, these are all things that should be addressed within an estate plan and have absolutely nothing to do with having a lot of wealth. All right, that's fair. So one of the things that I wanted to do in today's podcast, uh, Jeffrey, is to talk a lot about some of the mistakes that people make either pre-retirement or in retirement and what they can do to avoid them. Uh, one thing that, uh, I just wrote about and I'm curious to hear what you have to say is this notion of relocating based on your sources of income so that maybe you can create the most tax efficient, uh, place to live based on maybe whether you have earned income or investment income partnership income or uh or Social Security or pension income or IRA withdrawals. Uh, do you have thoughts about that? Absolutely. I,I guess the first thing I would say is, you know, taxes should be a part of the consideration because they're cost, right? And when we're looking at retirement, it's a matter of balancing how much you have versus what your expenses are, and expenses can be the things you want to spend money on like gifts for your grandchildren and vacations and uh, you know, a nice residence to live in, etc. but they're also the cost that maybe we don't love, but we have to pay anyway, right? Things like income taxes, maybe property and so forth. Well, obviously that becomes a factor, but where I have seen in my experience, people really, uh, go make unfortunate decisions is to base their decision solely or too heavily on where they're going to have the lowest income tax bill. At the end of the day, when you get to retirement, you've done all the hard work to get there, right? You've worked for the last 2030, 40 years in many cases even longer than that, and you've putIn your, you know, your blood, sweat, and tears, in some cases, quite literally, to be able to build up your savings. The last thing you want is to go somewhere, purely because it's gonna save you a little bit in the way of taxes, but you're just not happy there. It's not, you're not close to your friends, you're not close to your family. And if we look at, you know, satisfaction of individuals in retirement, and not only just satisfaction, but individuals' health during retirement, both mental and physical, a greatdeal of that has to deal with community, who you have around you, and that could be, you know, family, friends, etc. So you want to try to balance these things moving close to individuals, or even if it's a new place, a place where you could develop a community around you so that you can enjoy your retirement, and not just from a, hey, what do I enjoy doing, but also to be healthy mentally and physically in retirement to be able for it to be as long as possible,right? So, so one thing that happens in retirement, uh, in terms of enjoyment is, uh, people sometimes don't spend what they could spend, especially early in the go go years, for instance, and, uh, you have some thoughts about that too, I'm sure. Yeah, I do. I, it's actually one of the biggest mistakes I think a lot of, um, fortunate retirees make, right? There are certainly some individuals who have not been fortunate enough to save enough during their careers. They're gonna be tight during retirement and they have to be very careful about that. But there are an awful lot of people who've worked really hard and also benefited from some good fortune where they have enough. In fact, they more than enough. And when we think about classic rules of thumb for taking money out of retirement accounts or just distributing dollars in general during retirement, they tend to be pretty conservative and for obvious reasons, right? Like you don't want to have to be 80 and go back to work if you haven't worked already in the last 20 years. But let's there's a really popular one like Bob, you are very familiar, I know with the rule of like the quote unquote.4% rule, right? The, the 4% rule effectively says you're based on some research that was done a number of years ago, if you take 4% out of your portfolio when you start your retirement, you can go 30 years and you won't run out of money. Again, that's based on historical returns and so forth, doesn't mean it's always going to be that case going forward. Um, but here's the end result of 4% quote unquote rule was based on the research and saying what is the uh the most amount of money that could be taken out of portfolio in order for during the 30 year period that they looked at for it never to run out of money. So that was like the worst case scenario and the worst scenario they looked at 4% still meant that you could make it through 30 years. But that means in every other but the worst case, you could have taken more. So someone who just says, Well, I'm gonna take 4%. Well, you might end up with a lot more money than you actually thought. And in some cases, that's fine. But in other cases, it's not. And here's the way I make the determination, Bob. On one hand, you have some individuals who say, I've worked really hard and I want to, uh, make sure that not only do I have a wonderful retirement, but I want to provide a legacy for leave them, you know, maybe as much as possible after I spend what I want. That's one set of individuals. There's another set that says either, whatever's left over for my kids or grandkids, they'll get and they'll be happy with it because it's left over, you know, it's bonus for them. Or maybe even, uh, a little bit of a variation of that where someone says, Hey, um, I want to leave behind a million dollars for them. And you already have it. But then there's all this other money that you were to have accumulated. If you don't spend through it and you die with like $10 million you, you, you've not followed your plan, right? Like, it's, it's a failure of your plan. It's now, it's a failure to the upside, which is certainly a lot better than running out of money. But if your goal is, I want to leave my kids a million dollars, and then everything else I want for my spouse and my enjoyment during retirement, then you've got to periodically re-evaluate how things have what your initial set of expectations are, and in many cases you can spend more than you originally planned, because when you start retirement, you're often conservative in case you happen to retire in a bad market scenario. Yeah. So you mentioned the word conservative. A lot of times people at the end of their working life, they really only have maybe their uh retirement account to to to depend on for income, maybe they have a social security, maybe they have a but in many ways, uh, people have to think hard around how conservative or aggressive that portfolio needs to be, and sometimes they lean too heavily toward conservative when they might need to think about how do I manage and mitigate the risk of inflation for a 30 year time horizon. Yeah, I think you just hit on a really important point, right? You, you mentioned inflation and then also the value of the portfolio and you know, when, when people say risk, for whatever reason we have become conditioned to risk is when I look at my account statement, is it, you know, has it gone up or down? And that is how we assess risk, right? Like the account balance, the risk that when you put money into something, when you look next month or next year or 2 years or 5 years or whatever it is down the road, that the amount of money you the account has gone down. And that's what a lot of people call the risk in my portfolio. But the reality is, market risk, which is that is my investment up or down, is just one type of risk that people should be aware of. Uh, we already talked a little bit about tax risk in retirement, but there's tax risk, there's, uh, uh, a inflation risk which you just mentioned, which over a long period of time, I mean, even if inflation is just 2 or 2.5%, when you over a 2030, or potentially even 40 year retirement in some cases, that really eats away at the value that you have, your ability to spend and, you know, I, I used to use eggs as the example before eggs became such a, you know, a, a, uh, hot button issue here. But, you know, you want to be able to go to the grocery store and buy a dozen eggs this year and go next year and buy another 1 dozen eggs. You don't want to be stuck saying, well, I have the same $10 but it only buys 11 eggs next year and the that it only buys $10. Like yes you still have your $10 but if it buys less, who cares? So there's inflation risk. there's interest rate risk as interest rates change, the ability for you to take money that is perhaps matured in a previous investment and reinvest it might be lower or higher than it was before and obviously as interest rates rise and fall, so too does the value of certain investments like bonds or your ability to refinance a take a home equity loan in retirement if you need. So there are any number of risks. Market risk is certainly one of them and probably the one we focus on the most, but in order to build a sustainable retirement portfolio that's really built to withstand threats in a multitude of areas, you have to have the right mix and again that's different for every individual based on a, you know, a multitude of factors, but going to conservative quote protecting against market risk probably leaves you more exposed to inflation risk. Worrying about solely inflation risk probably leaves you more exposed to market risk. So it's having investments oftentimes in different areas that can each help deal or mitigate certain risks, but leave youexposed to others. Yeah, I, I'm often fond of telling people to go to the Society of Actuaries website where on their uh page about retirement and retirement a booklet that outlines the 15+ risks that you'll face in retirement and then also outlines the ways to manage and mitigate these risks. And if you read this chart, you'll think, I won't have any money left over for essential expense of this, so I have to manage and mitigate all these risks that I'm going to face in retirement. Jeffrey, we have to take a short break and when we come back, we're going to talk about, I think one of your favorite topics, which is, uh, tax bracket management. So don't go back to Decoding Retirement. I'm talking to Jeffrey Levine. He's the chief planning officer at Focus Financial. And, uh, before the break, I mentioned that we're going to talk about one of Jeffrey's favorite topics. He's a CPA by background and also an IRA expert, right, Jeffrey? And then there's a host of other designations after your name that I can't recall all of them. Yeah, abunch of letters, but I, like I said, to start, Bob, I'm just a big nerd. That's really, it's the those are the four letters that you need to know. N E R D, big nerd. Uh, I have a lot of favorite four letter words too. One of them is all right, so let's talk about tax, managing your tax brackets effectively either pre or during retirement, as well as the opportunities that maybe it creates for Roth conversions, especially now that maybe we're going to have a tax bill that extends, uh, the tax bracket, uh, the tax cuts of the uh of the tax cuts and Jobs Act. Yeah, it certainly seems like it at this point. And, you know, I guess if we really continue with sort of the theme of what we've been discussing, we've been talking a lot about mistakes that people make in retirement. And, and we can sort of put this bracket management in, in context of one of those mistakes. Another common mistake I see individuals make is focusing too much on their annual taxes and their annual tax bill and not what I call their lifetime tax bill, you know, when it comes to good tax planning, it's not about giving anybody the lowest tax bill in any one year. It's looking at their lifetime and trying to figure out how to pay taxes over that extended period of time, such that the total of those taxes over your life is as low as possible. And where does that come in with brackett management? Well, there are a lot of times when, when you've might be, let's say in what are known as the so-called gap years, the uh the years between when you were working and had income coming in from work and the years when you start getting income from Social Security and maybe when you start taking required minimum distributions from your IRA's 401ks, etc. and during those years, oftentimes individuals have very low in some cases no taxable income you know, on, on the surface, that might feel great, like, hey, I paid no taxes this year. That was awesome. But if you look, if you have very modest income and modest savings, that's just gonna be what it is. But for those who have been fortunate enough to accumulate significant savings, having a low or no income tax is actually a really bad thing. A low income year is a terrible thing to waste as a tax planner because you could be pulling money down at 2 days or at that time, you know, the low income tax rate you have in that year. And it's better to pay taxes oftentimes a little bit sooner, but at a much lower to wait until the future when you already have all of this income, or to do it earlier while you're working and have all of that income and be paying taxes at those higher rates. So you want to look for those gaps in income years, or even years where you make abnormally large uh contributions to charity or other things that would result in a deduction, and look to pull down more income in those years. Now, the challenge with that, Bob, isIf you could have more income simply by saying more income please, like, wouldn't you have it, right? Like that would be but we, we can't generally do that, but there is sort of a magic wand of creating income for those who have saved money in an IRA or a 401k or a similar type of plan, and that is the Roth conversion. It is the tax equivalent of waiving your wand and creating income in exactly the year when you want to pay that income. So it is a veryVery powerful approach to look and to say, when will my rate on this income be the lowest? And one other thought here Bob before I kind of take a breath and come up for air and that's when we're thinking about rate, people oftentimes focus only on their tax bracket, but there are a lot of other costs potentially associated with income as well. may be on your tax return like surtaxes, etc. like the 3.8% surtax, but even things that may not be on your tax return. For instance, if you do a Roth conversion before 63, you don't have to worry about impacting the cost of your Medicare Part B or Part D premiums. But if you do a Roth conversion at 63 or older, that can potentially bump you up higher Medicare Part B and or Part D premiums and now even though it's not a quote unquote tax, it's a cost that needs to be factored in to when you should take your income and when you should avoid taking income. Yeah. So oftentimes, Jeffrey, the traditional advice is for people to delay Social Security to age 70, let's say, so they get the maximum that to bridge the gap that they might take money from their IRA, uh, that would have been coming from Social Security, and that does two things. One is, right, it brings money forward that's maybe at a lower tax bracket, and it allows you to sort of maybe avoid higher taxes when you reach RMD age, and then it allows you to create the highest possible benefit with your Social Security benefit, uh, at age 70. Any thoughts about that as a strategy?Yeah, I, I thinkthat's oftentimes the advice that is kind of put out there as a, a general statement of more people should do this, right? Like everyone's situation is different. What I could say with certainty is far too far too few people wait until 70 or closer to 70 to take their income, right? Like if you look at the statistics that Social Security puts out, it's pretty clear that a lot of people that are not in their best interest. It's impossible to look at any one individual and say you shouldn't have claimed that 62, for instance, unless you know everything about them, uh, but it is on, on based on the large numbers, it's clear that there are so many people who claim either as early as possible or not waiting until their full retirement age or even if they're their own full retirement age, until perhaps as late as 70 as you mentioned, to take advantage of those quote unquote delayed credits where your unreduced retirement benefit at your full retirement age for Social Security can then be increased by as much as 8% per calendar year for the amount you wait which can have a really material impact. Uh, one thing I would share is, you know, a lot of times people are looking at this and they're planning as a there, you can often separate the Social Security decision for the higher earner and the lower earner. The higher earner should really be focused not on their own death, but when the second death you know, sometimes people say, well, I've, I'm in poor health, I'm gonna die at 72. Well, sometimes I look at somebody like that and I say, do you love your spouse? They say, yes, I say, well then don't worry about dying at 72. It's still the right decision to delay because your higher check will live on with your spouse who might live another 20 or 30 years. And if that's the case, even though you didn' see the benefit during your lifetime before you die, it was a meaningful impact for your surviving spouse. Now, on the other hand, a lower earning spouse doesn't need to worry about when the second death occurs, they should think about when the first death will occur because that lower check will go away regardless of who dies first, and the higher check lives on with the oftentimes when I'm asked that question by couples and they say, what should we do, you know, again, it's got to be looked at on an individualized basis. But many times, the higher earner will end up claiming at 70 or closer to 70, and the lower earner might start claiming a little bit younger so that they get at least some income in the interim, right? Uh, hey, we want to take more or things like that. OK, great. So here's a little bit, a little taste of Social Security income for you now, but then later on it'll be much higher because the higher earner has madethe decision to wait. So Jeffrey, uh, 23 minutes goes by in the blink of an eye. I'm afraid we've run out of time, but I, as always, I want to thank you for sharing your knowledge and wisdom with our listeners and our viewers. It's so greatly appreciated and hopefully you come back on, uh, future episodes to talk more nerdy. I'd love to. Yeah, thank you and thank Yahoo for the opportunity to be with you guystoday. Great, so that wraps up this episode of Decoding Retirement. We hope we provided you with some actionable advice to plan for or live in retirement. If you've got questions about retirement, you can email me at YF podcast@yahoo and we'll do our best to answer your questions in a future episode. And don't forget you can listen to Decoding Retirement on all your favorite podcast platforms. This content was not intended to be financial advice and should not be used as a substitute for professional financial services.
Yahoo
06-06-2025
- Business
- Yahoo
The two rules investors need to follow right now as the S&P 500 eyes a return to 6,000
The stock market has almost regained a foothold at the 6,000 level, recovering over a tumultuous eight weeks in which it fell almost 20% into a bear market. Big round numbers don't necessarily signal anything special for stocks, but they can serve as a psychological hurdle that, once overcome, could add to an existing rally — or serve as a gut check. My daughter's boyfriend, a guest in my home, offered to powerwash part of my house — then demanded money 'The situation is extreme': I'm 65 and leaving my estate to only one grandchild. Can the others contest my will? The two rules investors need to follow right now as the S&P 500 eyes a return to 6,000 10 nuclear stocks expected to rise as much as 94% after Meta-Constellation deal 10 stocks in this year's strongest sector expected to grow fastest through 2027 Investors and 401(k)s have recovered significant ground since President Donald Trump's sweeping tariffs announced April 2 dealt a blow to the S&P 500 index SPX and other major U.S. equity gauges. Stocks have continued climbing even as U.S. courts have entered the mix, adding yet another potential wrinkle to the on-again-off-again tariff dynamic. For the most part, however, tariff jitters were being offset by a view on Wall Street that the worst-case tariff scenario appears to be off the table. That's been credited with helping the S&P 500 climb back to 5,970 as of Wednesday's close, 19.8% above its April 8 low, according to Dow Jones Market Data. Yet a firm grip on the 6,000 level could prove hard to achieve. 'The number itself doesn't matter,' Donald Calcagni, chief investment officer at Mercer Advisors, said in a phone call Wednesday. What ultimately matters is corporate earnings, interest rates and valuations, he said. In that regard, the S&P 500's recent price-to-earnings estimate of around 21 suggests equity valuations look 'pretty high,' Calcagni said, especially given all the uncertainty on the horizon. Richard Steinberg, chief market strategist at Focus Partners Wealth, also sees potential stumbling blocks to holding on to the 6,000 milestone, especially with the Federal Reserve, big companies and investors stuck in wait-and-see mode on several fronts. 'I think it's a tough road for the president,' Steinberg said, referring to the Republican tax and spending megabill awaiting action in the Senate, but we are in 'a healthy part of the phase' in terms of pushback on the sweeping proposal. It might end up being a case where, for Republicans, you 'can't always get what you want,' he said. 'I think the markets are OK with that.' Elon Musk, the chief executive of Tesla Inc. TSLA and until recently a top adviser to Trump, added to the uncertainty around the bill's fate Tuesday, calling it an 'abomination.' Concerns about the economy also were in focus Wednesday after data suggested surprising weakness in private-sector jobs in May and signs of other potential cracks emerging in what's known as the hard data. See: Car buyers drove sales to a 4-year high to beat tariffs. Now sales are running out of gas. Calcagni at Mercer said he sees the stock market as 10% to 15% overpriced at the moment and expects 'the next shoe to drop' likely 'on or around July 9.' That's when a 90-day pause on some of Trump's tariffs is due to expire. Meanwhile, Wall Street equity strategists have been busy increasing their year-end targets for the stock market. Barclays bumped its S&P 500 target up slightly to 6,050 from 5,900, becoming the latest big bank to make upward adjustments. As of Wednesday, the S&P 500 was still 2.8% below its Feb. 19 record close. Calcagni expects fallout over tariffs and the U.S. deficit to loom large over stocks in the weeks ahead, making it important for investors to diversify their holdings beyond U.S. stocks and bonds. 'It's the bond market that's going to finance all this debt,' he told MarketWatch, which gives it the 'ultimate power.' The Congressional Budget Office estimated on Wednesday that the Republican bill would add $2.4 trillion to the federal deficit. A review of CBO forecasts showed they have consistently underestimated actual U.S. deficits over the past 25 years. 'The No. 1 rule is this is not a hero's market,' Calcagni said, adding that investors shouldn't own just one stock or even one single asset class. And Rule No. 2? 'Yesterday's safe-haven assets will not be tomorrow's safe-haven assets,' he said. 'I am getting very frustrated': My mother's adviser has not returned my calls. He manages $1 million. Is this normal? Options traders pile into bearish bets on Tesla at fastest pace on record as Musk-Trump feud escalates Buy-the-dip retail investors are getting bolder, just when the risks are getting bigger, say analysts What on Earth is going on with the American consumer? How do I make sure my son-in-law doesn't get his hands on my daughter's inheritance? Sign in to access your portfolio
CBS News
05-06-2025
- Business
- CBS News
Student loan moves to make for the fall 2025 semester
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. If you're planning to enroll in the upcoming fall college semester, you may want to make these moves sooner rather than school year has ended and summer vacation is here. While it can be a time to relax and enjoy a break from your studies, getting your student loan financing in order now to prepare for the fall 2025 college semester can be a smart move. Whether you're entering college for the first time or enrolling for another year, paying for your tuition costs and fees is crucial to continuing your education without any interruptions or hurdles. And, paying out of pocket may not be an option for many college students and their families, given the steep costs. According to data from the College Board, the average tuition and fees in 2024-25 for full-time undergraduate students range from $11,610 to $43,350, depending on whether the college is public or private and if the student is paying in-state or out-of-state tuition. To ensure you have the necessary financing to cover those costs, we've outlined below the steps to take now for the fall 2025 semester, what can be delayed and the important student loan mistakes to avoid. Start comparing your private student loan options online now. Student loan moves to make for the fall 2025 semester Though the fall semester may be months away, you can take steps to prepare now. Here are student loan moves to make for the upcoming semester: Maximize your financial aid options Before turning to any student loans, see if you qualify for any grants or scholarships. These options are gift aid, meaning you don't have to pay them back. You can find scholarship opportunities on CareerOneStop and You can fill out the Free Application for Federal Student Aid (FAFSA) to see if you qualify for a federal Pell Grant. The FAFSA can also help you qualify for work-study and federal student loans. Gift aid and federal student loans are typically recommended as the first options to turn to, due to the generous benefits. Unfortunately, though, federal student loans do have loan limits. These vary by your year in school and depend on your status as a dependent or independent student. "Once someone exhausts federal aid or receives a smaller package than expected, turning to private student loans can feel like the next logical step, but it is so important to pause and really understand what you are signing up for. Private loans often come with higher interest rates and fewer protections, like income-driven repayment or forgiveness options," says Becca Craig, certified student loan professional and certified financial planner at Focus Partners Wealth. If you do need to turn to private student loans to cover any gaps, there are steps you can take now to set yourself up for success. Find out how affordable the right student loans could be today. Get a cosigner Federal loans generally don't require a credit check, but most private student loans do. This can present a problem for undergraduate students when it comes to private student loan eligibility. "Because private student loan applications are approved based on the creditworthiness of the borrower, many would-be borrowers are unable to qualify, especially undergraduates who may have a thin credit profile or no credit profile at all," says Glenn Sanger-Hodgson, certified student loan professional and financial planner at Shonan Gold Financial LLC. A cosigner is someone, like a parent, who agrees to take on the legal liability of the loan. So if there are issues with the loan repayment, the lender can turn to the cosigner to recoup what's owed. "A cosigner acts as a financial backstop, as they are equally responsible for the repayment of the loans in the event the student borrower can not make adequate student loan payments, which provides greater assurance that the loan will be repaid," says Sanger-Hodgson. Getting a qualified cosigner is an important step if you need private student loans and are unable to qualify on your own. Start having discussions now and talk about rights and responsibilities so you're on the same page. Improve your credit and debt-to-income ratio Whether you're applying for a private student loan on your own or with a cosigner, lenders will look at various factors when determining your eligibility. To put you in the best position possible, both students and cosigners "should focus on getting their credit score up, and paying off other debt to lower the debt-to-income ratio that lenders will look at to determine whether a student loan will be approved," says Jack Wang, college financial aid and wealth advisor at Innovative Advisory Group and host of the Smart College Buyer podcast. Your payment history and credit utilization make up a significant part of your FICO credit score. On-time payments and using less of your available credit can help. Paying down your balances and boosting your income can also help lower your debt-to-income (DTI) ratio. Taking these steps can help your approval odds when applying for a private student loan. Start applying with private student loan lenders now If you need additional financing for the fall 2025 semester, now is a good time to submit a private student loan application. Some private lenders allow student loan borrowers to get prequalified, so you can check your prospective rate and eligibility. You may also stand to save if you submit a private student loan application now. For example, some lenders offer small discounts for applying early (before a certain deadline). And, aside from getting prequalified and raking in potential rate discounts to reduce student loan costs, getting started now can ensure you get the funding you need on time. "If you think you're going to have a funding shortfall and that you will need private student loans in order to continue your education, then it's important to start the application process at least two months before you will need the funds disbursed," says Sanger-Hodgson. "So if your school's tuition is due in August, for example, then you would want to start the application in early June at the latest." Sanger-Hodgson notes that once you're approved, your lender will need to confirm your enrollment and the cost of attendance through something called loan certification. This can take several weeks, so starting now can ensure you get the financing you need for the upcoming college semester. Student loan moves to make later this summer (but not now) Getting your student loan financing in order now is key so you're ready for the fall 2025 semester without any hiccups. While the aforementioned steps should be done now, here are some student loan moves to make later this summer: Confirm your loan disbursement dates. You can reach out to the financial aid office at your college to confirm when your student loans will be disbursed. You can reach out to the financial aid office at your college to confirm when your student loans will be disbursed. Create a budget. Once you know your loan amount and have a better idea of your school expenses, create a budget for the fall 2025 semester. Once you know your loan amount and have a better idea of your school expenses, create a budget for the fall 2025 semester. Make interest-only payments (if possible). If you take out private student loans, you may be able to make interest-only payments while in school. If that's possible with your budget, it could lower the cost of borrowing and save money on interest charges. Student loan mistakes to avoid for the fall 2025 semester Going to college can be an investment in your future, but taking out student loans is still a major responsibility, so there are certain mistakes you want to avoid, including: Not shopping around While private student loans don't offer student loan forgiveness or income-based repayment options, there are multiple lenders to choose from. That means you have more agency to choose a lender that meets your needs. A major student loan mistake to avoid is not shopping around. "Different lenders have different underwriting criteria and offer different terms, such as forbearance periods allowed. Borrowers need to shop around for the best terms, not just the lowest rate," says Wang. Consider comparing three to five private student loan lenders and reviewing the various offerings. Make sure to check the student loan qualifications so you meet the requirements. "Look at interest rates, fees, repayment flexibility and whether you'll need a cosigner. I'd also make sure you understand whether the interest is fixed or variable, and how that could change over time," says Craig. Borrowing more than you need Every dollar you borrow is a dollar you must repay, plus interest. Even if it's an investment in your college education, it's important to be smart about the amount you're borrowing. You may get an offer for a higher loan amount than you need. Sticking to only what you need can lower borrowing costs and put you in a better position for the future. Skipping the FAFSA You must fill out the FAFSA every school year to see if you qualify for grants, scholarships, work-study and federal student loans — but not every student takes the time to do so. "One of the biggest mistakes I see is when families think they earn too much money and assume they won't qualify for financial aid, and choose to not file their FAFSA form. This is a big mistake, especially considering there is no cost to file the form," says Sanger-Hodgson. Regardless of your financial situation, it's a good idea to fill out the FAFSA and see what type of aid you may qualify for. You'll want to check your college, state and federal deadlines so you don't miss your opportunity. The bottom line Summertime may not be the time you want to focus on the upcoming school year, but preparing early for the fall 2025 semester can help you secure the student loans you need to pay for school. The last thing you want to do is find out you have a gap in funding or need to rush — or worse, miss a deadline. When looking at your options, compare student loan interest rates, terms, discounts and any borrower benefits. Even if you lock in a rate now, you can always refinance private student loans later on after you graduate. The most important thing is to get started, do your research and maximize your financial aid options. Once you do that, you can be a well-informed student loan borrower and know what you're getting into.
Business Wire
29-05-2025
- Business
- Business Wire
Focus Partners Wealth Expands with First External Acquisition Since Rebrand
NEW YORK--(BUSINESS WIRE)-- Focus Financial Partners Inc., an interdependent partnership of wealth management, business management, and related financial services firms, today announced that Focus Partners Wealth, LLC will acquire Churchill Management Corporation in a transaction expected to close in the third quarter of 2025, subject to customary closing conditions. Upon completion of this transaction, Churchill will be the first external firm that Focus Partners Wealth has acquired since its rebrand in January 2025. Churchill is expected to add approximately $9.4 billion, measured as of March 31, 2025, to Focus Partners Wealth's existing regulatory assets under management. 'M&A remains an avenue for us to add high-quality firms that are committed to evolving for the benefit of their clients,' said Michael Nathanson, CEO of Focus Financial Partners. 'Firms like Churchill, with its commitment to outstanding client service and industry-leading success, are ideal for the integrated model we are building. From our first conversation, it was clear that we shared a vision, making this a natural fit and a special opportunity for both firms.' Founded in 1963, Los Angeles-based Churchill provides investment management and financial planning services to clients nationwide. The firm's employees include a national team of advisors and business development professionals. This transaction will bring together two businesses with a shared client-first philosophy. The Churchill team will gain access to a more expansive suite of client services, while Focus Partners Wealth will gain a national, growth-oriented team that complements Focus Partners Wealth's presence and service offering. The Churchill business will operate as a division of Focus Partners Wealth for a period of time following completion of the acquisition before transitioning to Focus Partners Wealth in the future. 'As we continue to build Focus Partners, there is nothing that thrills me more than joining forces with a great firm that enhances what we do,' said Adam Birenbaum, CEO of Focus Partners Wealth. 'The Churchill team is highly talented and complementary. They combine a very rare mindset of high growth and progress forward with a high standard of care. I cannot wait to welcome them.' This alignment of values and complementary strengths sets the stage for a smooth integration—one that benefits Focus Partners Wealth, the Churchill team, and, most importantly, the clients they serve. Leadership from both organizations shared their enthusiasm for what this transaction makes possible. 'Throughout our more than 60 years of serving clients, our core principle has been to meet and exceed our clients' financial goals using a comprehensive, multi-strategy approach to investing,' said Randy Conner, President of Churchill. 'We are excited to begin providing an even greater depth of services to our valued clients with the resources of Focus Partners Wealth.' Travis Danysh, Chief Corporate Development Officer of Focus Financial Partners, added, 'We view a successful transaction as one that strengthens our business and furthers our capabilities for clients. The addition of Churchill supports our goals to add talented and client-oriented businesses to Focus Partners Wealth.' Berkshire Global Advisors LP served as the exclusive financial advisor to Churchill. RBC Capital Markets served as the exclusive financial advisors to Focus on the transaction. About Focus Financial Partners Inc. Focus is an interdependent partnership of wealth management, business management, and related financial services firms, rooted in a client-first approach and powered by the collective energy and capabilities of its many advisors and professionals. The Focus partnership includes firms operated under the Focus Partners brand that reflect the company's key business lines. Through a blend of innovative solutions, strong capital backing, and deep business expertise, Focus empowers its firms to achieve their business objectives by helping them better serve their clients and advisors. Discover more about how Focus is evolving the wealth and business management landscape by visiting or by following the company on LinkedIn. About Focus Partners Wealth, LLC Focus Partners Wealth is an organization of wealth, asset, and business management resources that brings strength, innovation, and partnership to client relationships. Through a comprehensive range of services, Focus Partners Wealth works with clients at every stage, helping them manage their financial future. Their team of advisors works collectively to deliver personalized wealth planning strategies across local communities, placing clients' values, goals, motivations, and priorities at the heart of what they do. With nearly 100 locations across the country, Focus Partners Wealth serves clients in all 50 states. For more information visit About Churchill Management Group Founded in 1963, Churchill Management serves over 7,000 clients with combined regulatory assets under management of over $9.4 billion as of March 31, 2025. The firm credits its success to a combination of its commitment to communication, dedicated service teams, and a blend of tactical and fully invested strategies tailored around comprehensive financial planning. © 2025 Focus Financial Partners. All rights reserved.
Yahoo
02-03-2025
- Business
- Yahoo
Trump's ‘World War III' warning to Zelensky rattled stocks. Why they quickly recovered.
U.S. stocks largely looked past a heated discussion on Friday between U.S. President Donald Trump and Ukrainian President Volodymyr Zelensky in the Oval Office, which saw Trump claim Ukraine was gambling with 'World War III.' After an initial dip for stocks and a brief spike in Wall Street's 'fear gauge,' U.S. equities ended the day sharply higher — reacting to the exchange as more 'theater' from Trump amid hopes that a Ukraine-Russia peace deal could still move forward, said Keith Lerner, co-chief investment officer at Truist Advisory Services, on Friday afternoon. Trump's 'World War III' warning to Zelensky rattled stocks. Why they quickly recovered. 'Why am I so afraid to retire?' I'm 60 and lost $1.2 million in a divorce. Can I rebuild my life? 'She's bleeding her retirement dry': My friend earns $9 an hour, but wastes money on vacations and massages. What can I do? Friday's 'economic blackout' is a fool's errand — and gives 'woke' a bad name 'I believe myself to be an honorable person': Do I have the right to ask my husband if I'll inherit his house after he dies? 'Rightly or wrongly,' Lerner said, the reaction from U.S. and European stocks suggests that 'ultimately a deal still gets done.' Stocks briefly fell after the Trump-Zelensky exchange, which occured during a meeting aimed to further a Ukraine-U.S. minerals deal and to promote a Russia-Ukraine peace deal. Tempers flared, instead, and the meeting was cut short. Yet stocks then turned higher in the afternoon session. 'This is a very emotional time,' said Richard Steinberg, chief market strategist at Focus Partners Wealth, who cautioned investors against making any rash moves in the market. It has been an ugly February for the stock market, as some of the popular 'Trump trades' from November's election have faded, consumer sentiment has soured, bitcoin BTCUSD and megacap tech stocks MAGS have stumbled and talk of a potential correction in equities has taken hold. For the month, the S&P 500 SPX fell 1.4%, the Dow Jones Industrial Average DJIA moved 1.6% lower and the Nasdaq Composite COMP lost 4%, according to Dow Jones Market Data. Earlier this week, Lerner's team downgraded equities to 'neutral' from 'attractive,' on a more mixed outlook for the U.S. economy and forward corporate earnings that have 'flatlined' — losing momentum while valuations remain high. The 10-year Treasury yield BX:TMUBMUSD10Y has dramatically eased back from its recent 4.8% peak, trading at 4.23% on Friday and potentially signaling concerns about the U.S. economy. Fed official delivers a blunt message to the stock market — which ignores it 'I've nothing left for retirement': My husband and I have 9 kids and $70,000 in student debt. How do we pay it off? My husband and I have been married for 18 years. We share a son — and my husband has a daughter. Why should they get an equal inheritance? My dying cousin 'fell in love' with his hospice nurse after 4 months. She inherited his entire estate. What can I do? People are worried about their jobs. Here's why that matters for stocks and bonds. Sign in to access your portfolio
