Latest news with #middleclass
Yahoo
3 hours ago
- Business
- Yahoo
‘More empty homes in America than there are homeless people': Affordability agenda drives NY primary
Critics debate whether the primary win of Zohran Mamdani is a referendum on the future of the Democratic party. One thing is certain – he clearly struck a nerve with voters, and it's that Americans can barely afford to live in this country. Author and economics professor Andre Perry argues that nothing will be affordable if wages can't keep pace with rising costs. He notes that New York City has 'lost 75,000 middle income jobs' just in the last year. According to radio show host and NY
Yahoo
10 hours ago
- Business
- Yahoo
6 Smart Ways the Middle Class Can Retire Early
Many of us want to retire early and many of us, regardless of our wants, are forced to due to health-related issues or job loss. It's best to plan on early retirement, even if you plan to keep working past the full retirement age (66 or 67, depending on when you were born). Find Out: Read Next: How can the middle class best plan for an early retirement? Consider these six expert-recommended moves to make ASAP. Anybody who wants a life that isn't gripped by ever-worsening financial crises needs to be laser-focused on eliminating high-interest debt (the kind that comes with credit cards). But middle-class folks planning an early retirement really can't afford to delay taking action here. Make eliminating high-interest debt a top priority. 'Before accelerating your savings, it's critical to address any high-interest debt, such as credit card balances or personal loans,' said Stoyan Panayotov, CFA, wealth advisor and founder at Babylon Wealth Management. 'Carrying this kind of debt can significantly hinder your ability to build wealth, as the interest charges often outpace potential investment returns.' Be Aware: It's important to be focused on saving for retirement starting the minute you start earning money, but 'saving' is a pretty vague term. You need to think about how you save, too. 'For the middle class, building wealth across three types of accounts can give you flexibility, control and serious tax advantages,' said Trevor Houston, CEO at ClearPath Wealth Strategies, LLC. Those three accounts: Tax-deferred (401(k), IRA) Tax-free (Roth IRA, HSA, cash value life insurance) Taxable brokerage 'Retiring early means you'll need flexible access to your money, especially before age 59½,' Houston said. 'Having the right mix of accounts gives you more control over how and when you withdraw funds, no matter what tax rates look like down the road.' How many companies have you worked for where you had an active 401(k) plan? What did you do with the investments in those plans when you changed jobs? Make sure you keep track of this money and ensure it's still performing optimally. 'Yes, you can leave it where it is, cash it out (with consequences) but when you bring them all together into one IRA or new employer plan, you're not just getting organized, you're taking back control and setting yourself up for a smarter, more strategic future,' Houston said. 'Some financial institutions provide cash incentives to customers who transfer or roll over their funds. We're talking a few hundred to even a few thousand dollars in real incentives just for consolidating.' As Derek Russell Munchow, CFP, managing partner at Augustus Wealth, put it, in early retirement, 'flexibility matters more than square footage.' Be open to changing your living arrangements to best support your early retirement plan. And don't wait until you retire to take action. 'Locking too much of your asset base into an illiquid home can limit your options,' Munchow said. 'Downsizing, relocating or keeping your costs low might be what unlocks your freedom years earlier.' How much do you need to retire? What's the magic number? You can figure this out by using the 4% rule — if you want to retire 'on time.' If you want to retire early, be more aggressive. 'The 4% rule in a nutshell means you can withdraw 4% of your portfolio balance at the beginning of retirement, then adjust that amount for inflation each year thereafter, with a low probability of running out of money before you die (based on historical 30-year retirement periods),' said Jake Skelhorn, partner and wealth advisor at Spark Wealth Advisors. 'However, for the middle class who want to retire early, a more conservative withdrawal rate may make sense, since their retirement period may be longer than 30 years. 'Assuming a 3.5% withdrawal rate, take your expected annual expenses in retirement, and divide by .035 to arrive at a rough estimate of your 'retirement number,' i.e. $50,000/.035 = $1,428,571,' Skelhorn said. 'If you expect to have any other fixed income sources, subtract this from your annual expense number.' When planning for retirement, early or not, it's easy to get wrapped up in the math of it all and to fixate on the elusive magic number you need to reach to ensure comfort. Remember that part of a smart retirement plan isn't just about the number. It's about your life. 'Early retirement goes beyond mathematical calculations, it's about building a life that actually means something,' Houston said. 'Your strategy should support your purpose, your relationships and the kind of freedom you want to experience, not just your bank account balance.' More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 The New Retirement Problem Boomers Are Facing 4 Affordable Car Brands You Won't Regret Buying in 2025 This article originally appeared on 6 Smart Ways the Middle Class Can Retire Early Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
5 Money Worries That Hold Back the Middle Class from Becoming Upper Class
Nowadays, social mobility can feel akin to endlessly climbing up a down escalator — especially for the middle class. Certified financial planner, Stoy Hall, put it best: 'The system is not built for the middle class to level up. It's built to keep them in a loop of just enough stability to keep chasing the dream — but never quite catching it.' Be Aware: For You: With the deck stacked against them, the middle class are bound to feel beaten down. And while many of their hardships are grounded in reality, some of the resulting helplessness becomes internalized. As senior consultant at Nextpins, Lucia Lu, explained, sometimes the issue stops being about money and starts being about mindset. Here are five money worries holding back the middle class from reaching upper class status. Stuck in survival mode, the middle class is often afraid to take a risk and fail because it could mean losing everything they've worked hard for. They don't have a financial cushion to fall back on. 'When you finally reach a place where your bills are paid, you've got health insurance and maybe a little savings, the last thing you want to do is blow it all chasing a bigger dream,' stated Hall. As a result, individuals settle for 'good enough,' choosing not to leave a toxic job or start that new business venture. Safety becomes more enticing if financial growth comes with the possibility of complete destruction. And who could blame them? Explore More: While not a universal truth of middle-class individuals, many are in fact in the middle class because they remain constrained by their lack of financial knowledge and good decision-making. When it comes to leveling up, a salary bump is only as good as one's knowing what to do (or not do) with that extra money. Unfortunately, many individuals remain uneducated because not only does learning about money feel foreign and overwhelming, but knowing whose advice to listen to gets complicated in a landscape of unqualified finfluencers. So, they never really start the process of learning about money. This makes them vulnerable to financial scams and fraud, as well as making hasty decisions based on short-term gain rather than long-term growth. Living beyond one's means is something many middle-class families fall victim to in a futile attempt to keep pace with flashy and successful peers. After all, social pressure is real. And who wants to say they're the poor family that has a used car and rent an apartment when all their fancy friends own new cars and expensive homes? So credit card debt and mortgages it is! Unfortunately, those flashy peers may be cash poor. As Lu explained, the true upper class generally lives below their means and concentrates on putting their money toward investments and other money-making endeavors. Wealth simply isn't flashy. As Hall explained, lifestyle inflation can choke the middle class. Even if they get a raise, they spend it trying to keep up with others: 'they never get a chance to invest the difference–because there isn't one.' Those stuck in the middle class are often on a hamster wheel figuring out how to generate more and more income without considering how to acquire assets. But money is essentially static in value (and may even decrease over time as a result of inflation); assets will continue to appreciate over time. Passive income is one of the largest drivers of wealth for the upper class — and passive income is the result of assets. Unfortunately, many in the middle class are doing more work yet earning less money by failing to strategize effectively. Lu advised shifting perspective: Divert some energy away from one's paycheck and toward asset-creating endeavors like investing in stocks or real estate. 'A long-term perspective is a must for anyone seeking to level up,' stated Lu. Unfortunately, many in the middle class are keeping themselves there by failing to plan for the future or perhaps stick to their future plan. The upper class isn't intending to wing it, they are thinking long-term: Retirement planning, family assets, long-term investments, etc. By starting early and keeping an eye towards the future, the upper class is able to incrementally set aside money and allow that money to compound over time. While it can be difficult for middle-class parents to think about the future or set aside any money while they're busy trying to put food on the table, they are robbing their future selves (and their legacy) of wealth accumulation. Setting aside even small amounts of money for retirement can make all the difference down the road. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 9 Downsizing Tips for the Middle Class To Save on Monthly Expenses The 5 Car Brands Named the Least Reliable of 2025 This article originally appeared on 5 Money Worries That Hold Back the Middle Class from Becoming Upper Class 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
Times of Oman
3 days ago
- Business
- Times of Oman
Global leisure travel market to triple to $15 trillion by 2040: BCG Report
New Delhi: The global leisure travel industry is set to become a $15 trillion opportunity by 2040, a significant increase from $5 trillion in 2024, revealed a recent report by BCG. This growth was attributed towards a burgeoning middle class in emerging markets, a shift towards valuing experiences over material possessions, and the increasing emphasis on creating memories. The domestic trips form the majority of leisure travel, particularly in emerging markets, highlighting the need for stakeholders to attract local and regional tourists. While it also includes international travel, the report reveals that the future traveller will be diverse, with a growing number of visitors from emerging markets like China, India, Saudi Arabia, Bulgaria, and Cambodia. These travellers will also be younger and more digitally savvy, necessitating that travel companies understand and cater to these evolving preferences while still serving traditional visitors. Leisure travel spending is projected to increase by 8 per cent annually through 2029, then slow to 7 per cent through 2040. Particularly, Domestic leisure travel is expected to reach approximately USD 11.7 trillion in 2040, up from USD 4.1 trillion in 2024. Regional leisure travel is anticipated to roughly triple to over USD 2 trillion, and international leisure travel is expected to more than triple to about USD 1.4 trillion in the same period. According to the report, travellers continue to prioritize classic destinations like beaches, nature, and cities, but there's a rising demand for curated, purpose-driven experiences such as wellness and spiritual travel. Emerging markets, particularly China, India, and Saudi Arabia, are key drivers of growth in leisure travel spending. Demographically, Millennials and Gen-Zers are the most influential travellers globally, planning more trips and embracing digital technologies. New travel groupings are also emerging, including multigenerational and blended travel, alongside a mainstream trend of solo travel. These future travellers expect digital services, hyper-personalized experiences, cultural relevance, and community-driven options. The recent trend indicates that, the motivations for leisure travel extend beyond simple vacations, with travellers seeking meaning, convenience, and experiences aligned with their lifestyles. While relaxation, escape, exploration, outdoor activity, and visiting friends and relatives remain primary motivators, health and wellness, food tourism, and "bleisure" travel (combining work and leisure) are gaining importance. Notably, over 70 per cent of the travellers in emerging markets plan to combine work and leisure trips. The rise of AI, particularly large language models (LLMs), is reshaping how travellers plan and book trips, enabling more interactive and personalized search experiences. Travel companies must adapt by optimizing for AI-led discovery, investing in their own AI chatbots, and integrating AI with human interaction for seamless service.
Fox News
3 days ago
- Business
- Fox News
Louisiana mom warns 'half of what we're working for' at risk if Trump's budget bill fails
EXCLUSIVE: Toni McAllister is a prominent voice in Louisiana's logging industry, but as she told Fox News Digital on Tuesday, she is also "a mom and a wife" from a middle-class family. She is one of four Americans from across the country invited by House GOP leaders to Capitol Hill to promote President Donald Trump's "one big, beautiful bill." It is a vast piece of legislation aimed at advancing Trump's priorities on taxes, immigration, energy, defense and the national debt – which is taking Herculean political maneuvering to pass. On Tuesday, House Speaker Mike Johnson, R-La., and other leaders pivoted from promoting it themselves, instead inviting their four guests to talk about their support for the bill, and what is at stake if it does not pass by the end of this year. "I believe that our tax rates in Louisiana for small businesses will jump up to around 43.4%. I mean, that's literally half of what we're working for. So what will we be working for to pay taxes?" McAllister told Fox News Digital. She is the executive director of the Louisiana Logger's Association, a trade group representing loggers in the Bayou State. In addition to that, however, McAllister said she was concerned about a tax hike for her family if the bill is not passed. "I'm just a regular middle-class family. And in Louisiana, the average tax hike would be around $1,300. That's a month of groceries. That's anything extra that we can do with our kids. $1,300 is a lot of money," she said. Projections released by the House GOP show that under the lower chamber's version of the bill, an average family could see an additional $1,300 in tax relief, while a failure to pass it could lead to a $1,700 tax hike. Republicans are aiming to use the bill to extend Trump's 2017 Tax Cuts and Jobs Act, as well as implement a host of new policies like eliminating taxes on tipped and overtime wages. Retired Sheriff James Stuart said those latter measures, which Trump campaigned on in 2024, will be critical to law enforcement recruitment in Minnesota. "One of the most persistent struggles of agencies across the country is retention and recruitment. No tax on overtime will increase take-home pay for our peace offices, which will boost morale and ease burdens for them and their families," Stuart, who is also executive director of the Minnesota Sheriff's Association, told Fox News Digital. However, Paul Danos, the head of a family-owned offshore energy service company in Gray, Louisiana, told Fox News Digital that Republicans' energy policies are also critical for his business. "If this bill doesn't pass, then we find ourselves where we were in the last administration, with that lack of predictability around lease sales," Danos said. "Those multibillion-dollar investments that are creating jobs, that are providing safe and affordable energy here in the US, are jeopardized. We start having to depend on other nations for our oil and gas." That, he argued, would lead to higher prices for everyone. Sam Palmeter, who leads engineering at Laser Marking Technologies, one of the last two laser technology companies owned and operated in America, said he and others in Michigan were "tired of brain drain," hoping Trump's bill could reverse that and revitalize manufacturing in the region. "We won't grow, and we won't provide as many jobs in the industrial manufacturing and engineering space," Palmeter said. "And that's sad, because there's nothing that makes me more proud than hiring a local kid…So he's working 13 miles from home. He doesn't have to leave his family and everything to exercise that degree." It is not yet clear if their arguments or others in favor of Trump's bill will have any effect, however. The legislation has been met with Republican critics in the House and Senate, while GOP leaders have styled it as the best possible path forward for a conservative policy overhaul while they control Congress and the White House. While the dissent is coming from a relatively small number of Republicans, it could be enough to derail the legislation – both House and Senate GOP leaders are grappling with razor-thin margins of just a few votes. Trump recently ordered lawmakers to remain in Washington, D.C., until the bill is passed – despite a planned recess next week for the Fourth of July holiday. The bill passed the House by one vote last month, and a modified version is expected to get a Senate vote sometime this week. Both the House and Senate must pass identical products before they can be sent to Trump's desk.
