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☆ Creating an income-producing portfolio
▼ + stars: | 2024-05-20 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +7 min

A lot goes into creating and managing an income-producing portfolio that works for you. Knowing your expenses will give you a good sense of the income you’ll need. Ways to generate incomeTake the income you think you’ll need and subtract from that the income you expect. For example, if you need $65,000 a year but will only bring in $40,000, you’ll need to generate the other $25,000. • For money you’ll need in three to five years, use short-term corporate bonds as well as longer-term CDs.

Persons: it’s, Will, David Seufer, you’ll, Marguerita Cheng, ”, David Edmisten, Edmisten, Cheng, ” Seufer, “, ” Edmisten, Seufer, they’re, ” Cheng Organizations: New, New York CNN, Gravitas, Social Security, Blue, ” Capital, Social Locations: New York

Thedieck, now 31, is still in the military, and has gotten an awful lot of what he's wanted ever since. Darren Thedieck, age 31, joined the Air Force at age 18. Saving on a military salaryThedieck was interested in saving and investing long before he joined the Air Force. Right now, though, the plan is for that money to provide a financial "cushion" for the family, Thedieck says. Instead of full retirement after military life, both he and Naudia plan to take off in a new direction.

Persons: Darren Thedieck wasn't, he's, Thedieck, He's, Darren Thedieck, Andrea Ferro, Naudia, Denmark —, he'll, — Warren Buffett, Benjamin Graham, Darren, That's, They're Organizations: CNBC, U.S . Air Force, Air Force, titans, Social Security, Service Credit Union, Apple, Disney, Netflix, Spotify, FIRE Locations: Las Vegas, England, South Korea, Germany, Aviano, Italy, Venice, Denmark, United States

I always tell my financial planning clients to keep an emergency fund — but I don't keep cash on hand. We recommend keeping that money in a highly liquid vehicle, like a high-yield savings account or money market account. Your priority for your emergency fund should be access and safety, not returns. I have a much more intricate understanding of market risk and the impact of market downturns. The rule I refuse to break: Save (at least) 25% of gross incomeI urge my financial planning clients to prioritize their savings and investments.

Persons: —, We've, It's, what's, doesn't Organizations: Service

☆ You just heard your college-bound child is getting less aid than you hoped. Now what?
▼ + stars: | 2024-05-10 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +8 min

New York CNN —The good news is your child got into college and is preparing to enroll this fall. The bad news is that you’ve just learned the aid package your child’s school is offering is much smaller than you’d hoped. Over four years of college, students can take out a total of up to $27,000. “That’s cash-flow friendly while your child is in college,” Walker said. Also, Bogardus suggests checking to see if your state offers a tuition aid plan or subsidized loan rates for educational expenses.

Persons: you’ve, sobering, ”, Beth Walker, “, ” Walker, they’ve, Joseph Bogardus, it’s, Bogardus, Skip, Walker, you’ll Organizations: New, New York CNN, College Board, Center for College Planning Solutions, College, ”, Stafford, PLUS Locations: New York, New England, Stafford

☆ Just 4% of current retirees say they are 'living the dream,' survey finds. Here's why
▼ + stars: | 2024-05-09 | by ( Lorie Konish | ) www.cnbc.com time to read: +4 min

Brauns | E+ | Getty ImagesJust 4% of today's retirees said they are "living the dream," according to a new survey from asset management company Schroders. Image Source | Getty ImagesThe Schroders survey results come as more experts are pointing to a potential retirement crisis. "The retirement savings crisis in the United States is no longer looming: it is here, now," said a new report from the National Institute on Retirement Security. Not everyone agrees there is an emergencySome experts are skeptical there is a retirement savings crisis at all. Of seniors with more than $10,000 in retirement savings, 93% said they were doing okay or living comfortably.

Persons: —, Deb Boyden, That's, Warren Buffett's, Boyden, Andrew Biggs, George W, Bush, EBRI, Biggs Organizations: Getty, National Institute on Retirement Security, Finance, American Enterprise Institute, Social Security, Northwestern Mutual, Research Locations: —, United States

Many Americans don't know, and it's getting even harder to calculate — especially as Social Security is poised to start reducing benefits in just about a decade. Related stories"That number is all over the place," Copeland said, referring to how much people are going to need in retirement savings. "It will be devastating if people who already are facing very dire retirement prospects get less Social Security than they're planning on. Estimating how much you will need in retirement may be helpful, even long before retirement. That highlights the fact that calculating how much you're going to actually need in retirement is complicated.

Persons: it's, That's, there's, Craig Copeland, Copeland, —, William Arnone, Indira Venkateswaran, Greenwald Organizations: Service, Security, Greenwald Research, Business, AARP, Wealth, Research Institute, Social, Social Security, National Academy of Social Insurance Locations: America

☆ I was a tech DINK earning over $100k a year. Our double income helped me quit my 9-to-5 — but now the glory days are over.
▼ + stars: | 2024-05-09 | by ( Charissa Cheong | ) www.businessinsider.com time to read: +6 min

I even quit my 9-to-5 to pursue my passion for content creation. I made $40,000 in revenue from content creation in 2022 and $107,000 in 2023 before expenses. AdvertisementSince I'm not earning a stable income, we've decided to limit our spending more this year. I decided to give myself a salary of $35,000 for 2024 from my content creation business. As content creation doesn't require me to go into an office, I'm hoping to build a flexible career that I can continue around raising a kid.

Persons: —, Natalie Fischer, Keldon, now's, we've, There's, Roth, I'm, DINK, We've, He's, we're, haven't Organizations: Service, Business, UGC Locations: Washington, Seattle, pomeranian, Rome, Mexico, Finland

☆ BlackRock wants to make it easier to get paycheck-like income from your retirement savings
▼ + stars: | 2024-04-25 | by ( Lorie Konish | ) www.cnbc.com time to read: +2 min

BlackRock , the largest asset manager, has launched a new product to help workers their retirement savings into a regular income stream that mimics the paycheck they receive during their working years. "We're talking about a revolution in retirement," BlackRock CEO Larry Fink wrote of LifePath Paycheck in his recent annual letter to investors. While they receive that income, the rest of their retirement savings may continue to grow. A recent BlackRock survey found 60% of employees worry they may outlive their retirement savings. For now, the LifePath product is limited to plans offered through employers.

Persons: Larry Fink, Anne Ackerley Organizations: BlackRock, Finance, Security, Transamerica Center, Retirement Locations: BlackRock, New York

☆ What's so great about Australia's retirement plan — and what it means for America
▼ + stars: | 2024-04-16 | by ( Allie Kelly | ) www.businessinsider.com time to read: +8 min

Australia's superannuation system mandates employer-funded retirement contributions. Meanwhile, the US retirement system has become anxiety-inducing for many, as older adults struggle to make ends meet. AdvertisementAustralian retirement system puts saving responsibility on employers, not employeesAmerica's current retirement infrastructure includes two major categories: defined contribution plans and Social Security. This differs from the American system, where retirees' money is often held between a 401(k), other accounts, and outside investments. Still, Reilly cautioned that applying Australia's retirement system to the US could negatively affect employee wages.

Persons: —, Sen, Bernie Sanders, Catherine Reilly, Reilly, Larry Fink, Fink Organizations: Service, Challenger Limited, Money, TIAA Institute, Georgetown University's Center for Retirement, Social Security, BlackRock, Employers, Pew Charitable Trust Locations: Australia, America, California, Colorado

☆ I saved $100,000 by 25 thanks to the good financial habits my mom and dad gave me. Here are my top tricks.
▼ + stars: | 2024-04-05 | by ( Aleenah Ansari | ) www.businessinsider.com time to read: +5 min

Money gave me the freedom to leave a toxic job, travel to Europe, and launch my career as a financial advisor. When I set out to save $100,000, I was 22, living in Seattle in 2016 and making $55,000 at my first corporate job. Saving $100,000 was a combination of privilege and hard work. I felt confident I could launch a successful financial education platform and take my financial education business, "Her First $100k," full-time. I wouldn't have hit my $100,000 goal as quickly if I hadn't routinely invested in these accounts.

Persons: Tori Dunlap, Roth, there's Organizations: Service, Business Locations: Seattle, Europe, Costa Rica

☆ Some people are being given thousands of dollars with no strings attached in universal basic income trials. They mostly spend the cash wisely.
▼ + stars: | 2024-04-03 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +7 min

Interest in universal basic income has grown due to the pandemic, Elon Musk, Sam Altman, and economic pain. NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. AdvertisementYet a common question and concern about UBI remains how people spend the money. Related storiesThe Guaranteed Income Pilots Dashboard , a joint project from the Stanford Basic Income Lab and the Center for Guaranteed Income Research, pulls together data from more than 30 pilot programs in the US involving nearly 8,300 participants. GiveDirectly, a nonprofit, is providing universal basic income to 20,000 people across 200-odd royal villages in Kenya over 12 years.

Persons: Elon Musk, Sam Altman, —, It's, Karl Widerquist, Fabian Wendt, Rebecca Hasdell, UpTogether, Monique Gonzalez, Stephanie Hendon, Widerqist, Matt Bruenig, Douglas MacKay, Chapel Hill, MacKay Organizations: Service, Georgetown University, Qatar, Stanford, Income, Center, Research, UNC, Chapel Locations: Virginia, Kenya, San Antonio , Texas

☆ Employees are building 'F-you funds' before quitting their jobs. Here's what it means and how to build one.
▼ + stars: | 2024-03-23 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +6 min

Souffrant set out to save enough so they could cover one year's worth of expenses between Woody's salary and her savings. How to build your own 'F you fund' in 2 stepsAnyone can start an "F you fund" like Soufrrant and Shah did to create more options for themselves. Souffrant kept hers in a high-yield savings account. That way, the money was still accessible but earning more interest than it would if it was sitting in a traditional savings account. If your number is $200 per month, have that amount lifted from your checking account and deposited into your "F you account" each month.

Persons: Jamila Souffrant, Souffrant, Nischa Shah, Nischa Shah Nischa Shah, it's, Shah, Woody Organizations: Business, America, Investment

☆ 3 lessons Gen Zers say they've learned from 'loud budgeting'
▼ + stars: | 2024-02-25 | by ( Allie Kelly | ) www.businessinsider.com time to read: +6 min

The "loud budgeting" trend taking over social media encourages people to be more vocal about saving and spending habits. Loud budgeting is the opposite of "quiet luxury," Battle said, the financial trend that previously favored high-end clothing and understated displays of wealth. AdvertisementThe loud budgeting trend comes as Gen Zers enter the workforce when the cost of living has become more expensive. Loud budgeting is about everyday people, Battle said, and saving money can be "stylish." AdvertisementFifty-six percent of Gen Zers surveyed said potentially missing out on events with friends and family can be a downside of loud budgeting.

Persons: —, Lukas Battle, Gen Zers, Zers, Steph, Den, she's, Emma, Roth Organizations: Service, Business, Bureau of Labor Statistics

☆ Gen Z, millennials want to invest — but many aren't, CNBC/Generation Lab survey finds. Here are the issues
▼ + stars: | 2024-02-06 | by ( Ana Teresa Solá | ) www.cnbc.com time to read: +1 min

Rockaa | E+ | Getty ImagesDespite earning more, many Gen Z adults and millennials are having a hard time finding room in their budgets to invest. In fact, 61% are not saving for retirement each month. The survey polled 1,013 people ages 18 to 34 in the U.S. in late January. A prime culprit: higher expenses that have limited their ability to put money aside for savings and investments. "They're cutting costs, they're tipping less, they're trying to spend less eating out … living with parents … they're not acting like the economy is as good as it is," Beschloss said.

Persons: Cyrus Beschloss, … they're, Beschloss Organizations: CNBC, Generation Locations: USA, U.S, It's

☆ Couple has chance to earn over $700,000 a year—'I Will Teach You to be Rich' author says 'maximizing' isn't always the answer
▼ + stars: | 2024-01-31 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +4 min

Many Americans would accept a job offer that pays over $500,000 a year without batting an eye. The couple spends about "three to four hours a day" talking about money, they told Sethi. "The two of you excel in structured ways of thinking," Sethi told them. She told Sethi that despite the couple having over $300,000 in the bank between savings and investments, she's still nervous it's not enough. Seeing the projections for each salary offer in their spreadsheet helped put Mel and Babu at ease about having their immediate financial needs met.

Persons: Mel, Babu, Ramit Sethi, Rich, Sethi, that's, they'd

—Tax credits, such as child tax credit, retirement savings contributions credit, etc. Earlier this month, Congress announced a bipartisan agreement to enhance the current child tax credit. The bill would incrementally increase the maximum refundable child tax credit to $1,800 for 2023 tax returns, $1,900 for the following year and $2,000 for 2025 tax returns. If you can’t see what your tax preparer is working on, get a copy of the tax return and ask questions about each of the entries. If you are due for a refund, you will not receive a penalty and you will receive your tax return payment.

Persons: Courtney Alev, ” Alev, Tom O’Saben, O'Saben, O’Saben, “, ” O’Saben, —, Alev, You’re, you’ve, It’s, ___, Charles Schwab, ” Organizations: —, Credit Karma, Savings, IRS, National Association of Tax, Elderly, People, Social Security, Social, Center, Budget, Associated Press, Charles, Charles Schwab Foundation, Inc, AP Locations: United States

☆ I rolled over my 401(k) because I thought it was the smart financial move. Several delays and 5 months later, I regret even starting the process.
▼ + stars: | 2024-01-25 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +13 min

While my case may have been a little on the extreme side, a financial planner assured me that I'm far from the only person to have struggled with a 401(k) rollover. August 15, 2023: Fidelity cuts two checks — made out to Vanguard, not me (this, I later learn, is key) — and mails them to me. I was supposed to make my rollover checks payable to them. The author attempted to mail the rollover form and checks from Brooklyn, New York. I never want to initiate a 401(k) rollover ever again.

Persons: —, I've, Roth, Vanguard There's, Kathleen Elkins, Brent Weiss, that's, Ascensus, Weiss, wasn't, it's Organizations: Business, Fidelity, Vanguard, Neat, UPS, Trust, Facility, IRS Locations: Los Angeles, New York City, Brooklyn , New York, Brooklyn Heights, North Carolina, Charlotte, New York

☆ I finally got smarter about my money in my 30s. Here's how I've avoided lifestyle creep.
▼ + stars: | 2024-01-22 | by ( Jules Rogers | ) www.businessinsider.com time to read: +7 min

Jules Rogers started earning more money in her 20s when she combined full-time work and freelancing. Although she was making more money, she also bought her first house and had to keep expenses low. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementAs a 31-year-old, I'm approaching how I spend my money differently than I did in my 20s. AdvertisementHere's how my budget differs in my 30s compared to my 20s and the strategies I use to avoid lifestyle creep.

Persons: Jules Rogers, —, we're, We're, resealing grout, I've, creamer, it's, It's Organizations: Service Locations: Portland , Oregon

☆ Keeping a Midlife Crisis From Wrecking Your Retirement Plan
▼ + stars: | 2024-01-20 | by ( Juli Fraga | ) www.nytimes.com time to read: +1 min

The midlife crisis is easy to poke fun at — especially if it’s someone else’s. In real life, though, a midlife crisis is rarely so obvious or dramatic, or the sole province of men. Of course, there’s no harm in the occasional treat, especially when you budget for the expense. The trouble is, a midlife crisis can hit just as retirement is becoming more real. So if you’re going to treat yourself, you should also make sure your retirement savings and investments are on track, experts say.

Persons: ”, Nathan Astle Locations: Kansas City, Mo

My father-in-law retired comfortably at 63 by following a few simple money rules. NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. For me and my family, getting on a budget has been key to paying off debt, saving, and investing more for our future. Since I paid myself first, I already made progress on all my saving and investing goals. Paying yourself first is a great habit that can teach you to mentally prioritize saving, investing, and your personal financial goals.

Persons: —, we've, I've, what's Organizations: Service, Robinhood

☆ A financial freedom expert explains why you should have an 'FU fund' in addition to an emergency fund — and how it helped her quit her job before 40
▼ + stars: | 2023-12-21 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +4 min

When Jamila Souffrant found out she was pregnant with her third kid, she was working a full-time corporate job while building her financial freedom blog and brand. To set herself up to walk away from corporate America, Souffrant started ramping up her "FU fund," which she describes as "an emergency savings fund on crack." Souffrant set out to save enough where they could cover one year's worth of expenses between Woody's salary and her FU fund. AdvertisementFor about a year, Souffrant decreased her contributions to her retirement savings and investment account to beef up her FU fund, which she kept in a high-yield savings account. Souffrant encourages anyone who is pursuing financial independence to build an FU fund.

Persons: Jamila Souffrant, Souffrant, ramping, Woody, wouldn't, she's Organizations: Service, Business Locations: America

But is there a way to figure out exactly how much you should save each month? Around 20% of your income (after taxes) is a good amount to save each month, according to the 50-30-20 budget and 70-20-10 budget. Over time, you can may find that you can save more each month — going from $20 to $30, and so forth. A person with that income would need to save around $660.50 per month if they are using the 50-30-20 budget rule. The amount each person should save per month will likely depend on their savings goals and current budget, though.

Persons: Patrina Dixon, Dixon, You'll Organizations: Quicken, Fidelity Investments, United States Census Bureau, Consumer Finances Locations: CFEI, U.S

With his rental earnings and increased salary, Vij was able to buy more rental properties in southern Ontario. Investing in rental propertiesVij's first rental property was a two-story detached home with seven rentable rooms, two miles away from McMaster's main campus. Otherwise, whatever money Vij made from his job and rental property went straight into savings for more rental properties. "I want to own as many assets as possible that generate cash flow and use any extra cash to buy more assets." In 2023, Vij broke even on his rental properties.

Persons: Karun Vij, Vij, —, I'd, Karun, Jeremy Applebaum, I'm, Seema, Vij Vij, He's Organizations: CNBC, aha, McMaster University, McMaster, Fortune, Fiverr Savings, Spotify, Amazon Prime, Google, Walt Disney Locations: Hamilton , Ontario, Canada, McMaster's, Cambridge, Ontario, Chicago, Brampton , Ontario, Toronto, Mississauga, Hamilton, Milton , Ontario, Windsor , Ontario

My income changes month to month, so I need to approach how much rent I can pay with caution. While I might feel I could afford a higher rent on paper, that could be risky in an emergency. Avoiding financial strainRight now, my partner and I pay a total of $3,200 to rent our one-bedroom apartment. Build a BudgetI shouldn't forget about other expensesEven when I looked to find ways to afford a higher rent, Willardson says I should remember my other financial obligations. If not, we will have to be open to leaving the neighborhood in search of a rent we can afford.

Persons: —, I've, I'm, Chad Willardson, that's, Willardson Organizations: Service Locations: New York City, Brooklyn, There's

☆ The future of interest rates is more surprises
▼ + stars: | 2023-11-24 | by ( Edward Chancellor | ) www.reuters.com time to read: +7 min

Observing these oscillating forecasts, a bystander might conclude that nobody knows anything about the future direction of interest rates. The study examined data from 19 countries back to 1870 and found only a tenuous link between the determinants of savings and investment and real interest rates. “No single factor or combination of such factors”, the authors concluded, “can consistently explain the long-term evolution of real interest rates. Indeed, if the trend persisted Schmelzing forecast that “within a generation historically implied real interest rates will have reached negative territory”. Homer and Sylla wryly observe that people assume that the interest rates they encounter are normal and are surprised by what comes next.

Persons: Claudio Borio, “, ”, Paul Schmelzing, Sidney Homer, Richard Sylla, Sylla, Peter Thal Larsen, Streisand Neto, Thomas Shum Organizations: Reuters, U.S, Capital Economics, Bank for International, Austrian, Reuters Graphics Reuters Graphics, Financial, Boston College, Treasury, Thomson Locations: Central, U.S . Federal, London, Japan

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