Retirement Savings – European Forum – Family Mediation Tue, 21 Jun 2022 00:29:28 +0000 en-US hourly 1 Retirement Savings – European Forum – Family Mediation 32 32 🌱 Suspicious death in a car accident + Track athlete of the year + Local jobs Mon, 20 Jun 2022 22:20:44 +0000

Hello again, neighbors. It’s Tuesday in Catonsville and I’m back in your inbox with everything good to print on what’s happening in town. Here is…

First, today’s weather forecast:

A fleeting shower in the morning. High: 83 Low: 63.

Big love to our first local sponsor. We couldn’t keep the community informed without you!

Are you looking to buy or sell a house in the Catonsville area? Speak to Benjamin Meyer at EXP Realty. Benjamin was born and raised in Catonsville and has extensive knowledge of the community and the local real estate market. Benjamin works with buyers, sellers and investors. Whatever your real estate goals, work with a trusted local expert with strong ties to our region. Visit Benjamin here to learn more.

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Here are the top three stories in Catonsville today:

  1. On Sunday morning, June 19 at 4:35 a.m., Maryland Transportation Authority (MDTA) police investigated a single-vehicle crash on I-95 southbound at exit 50 near Catonsville. Officers discovered Sai Charan Nakka, 25, from Hannover, driving a silver 2022 Hyundai Tucson. Police said Nakka had several wounds including perhaps a gunshot wound to the head. He was taken to the R. Adams Cowley Shock Trauma Center and around 6:30 a.m. he was pronounced dead. The MDTA is asking anyone with information about Nakka, the silver 2022 Hyundai Tucson SUV, or suspicious activity along I-95 southbound in Baltimore to contact MDTA Police at 443-915-7727. (Baltimore Sun)
  2. Juliette Whittaker, a senior at Mount de Sales Academy in Catonsville, has been named ‘Athlete of the Year’ by the Baltimore Sun for the 2022 All-Metro Women’s Outdoor Athletics Teams. Catonsville High School senior Myla Abernathy made second-team All-Metro. (Baltimore Sun)
  3. Looking for work in the Catonsville area? Check the link to see the latest job opportunities in your area. (Catonsville patch)

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Today in Catonville:

  • Catonsville Cooperative Market At 1905 Edmondson Avenue (4:30 p.m.)
  • Make the Music Festival 2022 At Catonsville Branch: Baltimore County Library (6:00 p.m.)

From my notebook:

  • The 4th of July is almost here! Get to know the fireworks laws in Maryland. Click here to learn more. (Twitter)
  • Don’t forget, the Catonsville Farmers Market at 5820 Edmondson Avenue is tomorrow, June 22! The market accepts Cash, SNAP (NOW unlimited match), Credit and Debit cards. See the link for more details. (Catonsville patch)

More from our sponsors – please support the local news!


  • Medical Cannabis Telemedicine Reviews (June 21)
  • The 9th Annual Mike Marks Memorial Golf Outing to Benefit Sophie and Madigan’s Playground (June 24)
  • 2nd Annual Oakland Summer Craft Fair (June 25)
  • Children’s Summer Camp (June 27)
  • New Retirement Savings Webinar (June 27)
  • Add your event

You’re all caught up for today. I’ll see you in your inbox tomorrow with another update!

Rose Mendez

About me: Rose Mendez is a freelance writer. She is studying English Literature at Hunter College. She loves to read, walk around the city and have a coffee!

Here’s the biggest risk pre-retirees face now, myself included | Chuck Jaffe Sat, 18 Jun 2022 22:00:00 +0000

This week, I found myself face to face in the mirror with 60-year-old Chuck. Until that moment, he was never someone I was afraid to meet.

I’ve been planning the meeting in 2027 that I’ll have with 65-year-old Chuck since I was 20 and started my professional career. I could barely afford to put anything aside, and yet I contributed to the pension plan because I knew that one day my 65-year-old self would show up asking me what I had done. of his money.

This future self haunted me for decades; whenever I was tempted to save less or spend more, the inevitable arrival of 65-year-old Chuck was my motivation to keep saving.

What I couldn’t have foreseen, however, is how much of an impact market and economic conditions might have on the run-up to and around his arrival. My 60th birthday this week – a day when the stock market was having one of its 200 worst days in history, no less – rang the bell on that.

It makes no difference that I don’t see myself retiring in the traditional sense for a long time, if ever. The juxtaposition of current conditions and a big anniversary was a wake-up call everyone, regardless of age, needed.

More specifically, what investors need to consider is “yield sequence risk”.

Of all the things you hear about the market, economy, and world events right now, yield streak risk may be the most personal, least understood, and least discussed.

Still, it proves the idea that the stock market doesn’t know or care when you need your money.

In all my focus on retirement, I never gave 55-year-old Chuck much worry until I went through a surprise divorce in my early 50s. The 55-year-old self is important because it’s the one that kickstarts retirement, the version of you whose decisions can catch up, or cut back and save and prepare for retirement takeoff or, alternatively, doom you to a retired life of struggling.

The market was moving forward when I reached my mid-fifties.

This is not the case as I enter my sixties.

For anyone nearing the end of their working life, it’s about to find out why many financial advisers describe the last 10 years of a job as “the fragile decade.”

Retiring during or just before a market downturn and the combination of withdrawals and poor performance can tap into a nest egg much faster than expected and make recovery difficult.

For proof, consider someone retiring with $500,000 in savings/investments, planning to take out $20,000 per year.

Keeping the math extremely simple, let’s say the market in its first decade of retirement will experience five years of 5% losses and five years of 10% gains.

If the five good years come first, the saver ends the decade with about $450,000 (having withdrawn $200,000 from the account in those years). If the good and bad years alternate, they have about $410,000 if their streak begins with a positive first year, and just under $395,000 if the first year is negative.

But if the first five years of the decade are the losing 5%, the investor will have about $370,000 left over, despite the big bounce at the end.

Now consider that we are currently in bearish territory, with the stock market down more than 20% from the highs. On my show, “Money Life with Chuck Jaffe,” I spoke with many pundits who see a prolonged downturn ahead, with the market stumbling until it hits a recession in 2023 or 24.

While it’s easy to ignore the gloomy predictions that see the market lose half or two-thirds of its value, consider that it’s already taken a big step forward.

When you’re gawking at the price at the gas pump or expressing your frustration at the high prices at the supermarket, it’s not hard to envision a significant drop from current levels.

So while you may not subscribe to the most pessimistic predictions, there’s no denying that they look more plausible today than they have at any time since the 2008 financial crisis.

And no matter what you think of the government and hope things are different, it’s clear the recession is coming. No political party has the power to stop it, although they can block it for a period of time.

It actually adds to the alarms in my 60-year-old head.

With retirement looming, I want this recession and downturn to happen as quickly as possible. The pieces are in place for a long-term economic recovery and a return to impressive long-term growth, but only after the economy has digested the bile and blockages that have built up over the past 15 years.

The sooner we swallow this bitter pill, the sooner we get past it, the better the environment for people my retirement age.

Research from Fidelity Investments suggests that a good retirement savings goal is to save 10 times your salary by age 67 (you’re said to be on the right track if you’ve saved your salary by age 30, have three times your salary at 40, six times by 50 and eight times by 60).

But it is a “guideline”, a starting point for building a plan.

This plan must also take into account the market and the economy.

If your plan is to hit a savings goal or life milestone and quit, that’s dangerous right now.

To ignore what the market is likely to do to your savings life over the next few years is to run headlong into trouble.

You may never have “timed the market”, but timing should be a factor in your life choices.

If you continue to be healthy and have a secure job, and more work time would create greater peace of mind in retirement simply by adjusting the market circumstances you will face when you resign, plan accordingly.

You will answer for your decisions to your ultimate future self, the one you face in the mirror every day of your retired life.

Ways to Build Wealth If You Can’t Afford a Home Fri, 17 Jun 2022 16:25:58 +0000

(Bloomberg) – Home ownership has long been touted as one of the best ways to build wealth. But for many Americans, that path to financial security is increasingly out of reach.

Mortgage rates have just posted their largest weekly increase since 1987 and house prices remain high. Add to that the highest inflation in 40 years, rising student debt levels and wages not keeping up with rising prices, and it’s no surprise that many feel left out of the housing market. .

Read more: Millennials’ dream home crumbles again as US prices spike

This hits young Americans particularly hard, leaving them with fewer options to secure their financial future. So what do you do if you just can’t afford to buy a house? Here’s what the experts recommend:

Maximize your savings

The key to financial success begins with developing healthy financial habits early, said TJ Williams, regional vice president, Wealth Enhancement Group.

“The habits you create when things go wrong are a much better indicator of your financial success than anything you buy or invest,” he said.

This includes creating a budget that maximizes the amount of money you save and limits discretionary spending.

This might be difficult for those who live in expensive cities like New York and San Francisco. With the rise of remote work, some financial planners say it’s worth considering moving to the suburbs or a more affordable city to reduce the cost of living. If that’s not an option, Williams recommends limiting housing costs to just 28% of your total pre-tax income and living with roommates if necessary.

According to Sara Kalsman, financial planner at roboadviser Betterment, for millennials and millennials who have a lot of student debt, it’s essential to pay off high-interest loans as soon as possible. It’s not a “sexy financial goal,” but it does increase excess cash flow you can spend on retirement or investments, she said.

Use retirement accounts

Another route to building wealth is to contribute as much as possible to retirement savings accounts like traditional 401(k)s and IRAs — where you can invest pre-tax dollars and then be taxed when you withdraw the money. money in retirement – to capitalize on taxes. delayed growth.

For those lucky enough to have matching employers, Williams recommends maximizing your own contribution if possible because “it’s free money.”

Once your bills are paid and you have an emergency fund in place, it’s also a good idea to consider opening a Roth account, which allows tax-free withdrawals when you retire. , Williams said.

“Contributing to different retirement accounts is a very important thing both for someone building wealth early and for accumulating it,” he said.

Invest in a diversified portfolio

Historically, investing in the stock market has been a great way to build wealth, and exchange-traded funds offer investors low-cost diversification opportunities that weren’t available to older generations, says Amir Noor. , Director of Financial Planning for United Financial Planning Group. .

While the current market volatility could be bad news for those approaching retirement, young investors who have decades to build wealth should benefit from falling stock prices, according to Andrew Crowell, vice president of wealth management at DA Davidson & Co.

Crowell said rising interest rates mean now is also a good time for people to invest in a portfolio of low-risk bonds and Treasuries.

The benchmark 10-year Treasury yield is currently trading around 3.3%, a huge jump from 1.6% at the start of the year, meaning investors are earning more interest for holding government bonds.

Boost your earnings

Financial planners advise negotiating a higher salary whenever possible. This could be especially fruitful right now, with inflation soaring and the tightest labor market in decades.

Sometimes getting more education or additional training can help boost your salary. It’s also important to assess whether there’s growth potential in your current role – if not, you could make a career change that could pay off in the long run.

If you’re young and early in your career, experts recommend taking on a side job or extra work, with carpooling and food delivery companies making it easier than ever.

Home ownership

For those serious about owning a home, experts say it’s within reach if you start investing and saving for a down payment now.

With the housing market showing signs of slowing and recession fears growing, Crowell advises potential buyers to wait for home values ​​to drop in the next year or two.

Those betting on stock market investments for a down payment may find it more difficult as global markets plunge. Saving money might be a better option than being forced to sell when stocks are falling.

Remember that homes often come with additional expenses — including property taxes, insurance, and maintenance — that can cost thousands of dollars a month.

However, Williams stressed that owning a home is not a prerequisite for financial security. Think about what financial success means to you personally.

“A principal residence is not an investment until it is sold. It’s actually just a place to live,” Williams said. “Homeownership is a symptom of financial security – not a cause.”

To contact the authors of this story:
Paulina Cachero in New York at [email protected]
Claire Ballentine in New York at [email protected]

Bipartisan legislation is introduced to preserve retirement savings by expanding automobile portability Wed, 15 Jun 2022 21:45:00 +0000

Senators Tim Scott & Sherrod Brown leased by Robert L. Johnson for introducing the Advancing Auto Portability Act to allow traditionally underserved and undersaved Americans to preserve their retirement savings

CHARLOTTE, North Carolina, June 15, 2022 /PRNewswire/ — Robert L. JohnsonFounder and Chairman of The RLJ Companies and Chairman of Retirement ClearinghouseLLCapplauds Senator Tim Scott (RS.C.) and Senator Sherrod Brown (D-Ohio) for the introduction of the Advancing Auto Portability Act of 2022. US Senate legislation has the potential to preserve up to $1.5 trillion retirement savings for the next generation of workers by encouraging car portability. With automatic portability, a participant’s 401(k) account can follow them when they change jobs, reducing the risk of people cashing out their savings prematurely and improving retirement security.

“I congratulate the senators Tim Scott and Sherrod Brown for leading this bipartisan push to create wealth for underrepresented American communities. Automobile portability will help historically underserved and underserved workers, especially Black Americans, gain greater benefit from the American retirement system and realize the American dream of a financially secure retirement,” said Mr Johnson. “Enshrining automotive portability in law is an important step in our national effort to close America’s wealth gap.”

“This legislation recognizes that cash outflows — driven by the frictions that prevail in the transfer of money between plans in our country’s retirement system — have a very significant negative impact on Americans’ retirement outcomes,” said declared spencer williamsFounder, President and CEO of Retirement Clearinghouse. “401(k) savings portability will institute a new default in plan design that will allow participants to opt out to have their small balances automatically transferred to the plans of their new employers when they change jobs, instead of having to register. Senators Scott and Brown have crafted legislation that would make this default available to all plans in the US retirement system – a huge boost for America’s diligent retirement savers. The Pension Protection Act of 2006 gave the green light to automatic enrollment and the use of target date funds as default investment vehicles – and now we are closer than ever to a default setting for the automatic portability of small accounts, when changing jobs. Finally, leveling retirement savings outcomes is within reach.”

Get to the root of the problem

The lack of seamless portability of accounts across plans when participants change employers has always made cashing out an easier option than moving and consolidating 401(k) account balances. Cashing out a retirement savings account prematurely can have destructive consequences for retirement savers.

The Employee Benefits Research Institute (EBRI) estimates that up to $92 billion savings leave the U.S. retirement system every year because workers cash in their 401(k)s prematurely when they change jobs and pay taxes and penalties on those cash-outs. Retirement Clearinghouse research indicates that a hypothetical 30-year-old participant who cashes in a 401(k) account with $5,000 would lose today until $52,000 income they would have accrued at age 65, assuming the account would have grown by 7% per year.

Unfortunately, minorities and low-income workers are more likely to make this withdrawal decision. According to EBRI, 14.8 million plan members change jobs each year – and data from the largest pension plan managers indicates that almost a third (31%) of them will cash in their pension accounts. 401(k) savings within one year of moving to a new employer. However, these rates are higher among plan participants who belong to minority communities (63% for Black Americans and 57% for Latinos), who are between the ages of 20 and 29 (44%), or who earn $20,000 at $30,000 in annual income (50%). Similarly, the percentage is higher among women (41%), especially women aged 25-34 (71%).

“Women often end up having to work longer than expected due to unforeseen circumstances and expenses, especially if they outlive their spouse,” said Cindy HounsellPresident of the Women’s Institute for a Secure Retirement (WISER). “This new legislation will make it easier for women to overcome the inequalities that have historically placed them at a disadvantage when saving for retirement.”

Why automatic portability is the solution

To address this growing problem, members of the private and public sectors have worked together to develop and implement automatic portability – the routine, standardized, and automated transfer of a retirement plan participant’s 401(k) savings account. from his former employer’s plan to an active account. account under their current employer’s plan. Automatic Portability was designed and built to meet the needs of plan members with account balances below $5,000, who often do not have access to the portability solutions offered to their counterparts with larger accounts. The automatic portability solution is designed to connect archivists operating under the qualified 401(k) plan system in the United States, establishing a network that facilitates data flow. The Department of Labor provided Retirement Clearinghouse with guidance for its car portability service in 2018 and 2019.

EBRI estimates that widespread adoption of automotive portability would preserve up to $1.5 trillion additional retirement savings, measured in today’s dollars, in the US retirement system over a 40-year period. This $1.5 trillion would include approximately $191 billion for 21 million black Americans, and $619 billion for all minority savers.

In recent years, several large accountants of defined contribution plans have adopted automatic portability for the plans they administer. The Advancing Auto Portability Act supports the continued expansion of automotive portability by creating a $500 tax credit to help businesses, and especially small businesses, with the costs of implementing and making permanent the 2019 Department of Labor guidelines.

More information is available at

Automatic portability support

The National Urban League and National Association for the Advancement of Colored People (NAACP) sent letters to Mr Johnson in support of car portability.

Marc H. Morial, President and CEO of the National Urban Leagueended his letter of support by stating, “Based on the tremendous benefits of automotive portability, Urban League is pleased to join this public policy conversation because our entire economy benefits when Americans can afford a safe and timely retirement By strengthening the defined contribution leg of America’s “three-legged stool”, the Urban League believes that all sectors of our economy benefit, including the private sector, the public taxpayer and all levels of government Now is the time for all of us to work together to close the wealth gap and make retirement more secure for Black families The National Urban League supports all efforts to empower Black Americans and we are happy to be aligned with you on the issue of automatic portability.

Derrick JohnsonPresident and CEO of the NAACP, wrote in her letter of support, “Implementing automatic portability is a necessary and transformational tool to close the racial wealth gap. It will ensure that Black families and other communities of color have the infrastructure necessary to maintain economic stability for retirement.” He also wrote, “While automatic portability alone will not solve the racial wealth gap, it has the ability to positively support Black workers’ ability to create lucrative retirement investments by creating a streamlined approach to savings; an approach that reduces workers’ opportunities to As an organization committed to identifying solutions to the economic challenges and inequalities experienced by Black and other communities of color, the NAACP is committed to being a partner in advancing the implementation of automotive portability as a critical tool to address racialized economic inequality.”

To learn more about auto-portability, please visit

About the Retirement Information Center

Retirement Clearinghouse, LLC is the leading provider of portability and consolidation services for defined contribution plans, acting as a trusted and impartial intermediary between plan sponsors, participants, recorders and other parties. Retirement Clearinghouse’s integrated financial technology, data and information solutions facilitate automated consolidation of small, redundant accounts for sponsors to improve plan performance and allow participants, regardless of account balance, to carry their retirement savings in full transparency at each stage of their career.

Retirement Clearinghouse portability solutions have been proven to reduce withdrawals by over 50% and significantly increase average account balances. The company’s portability solutions include a national call center providing expert support designed to enable end-to-end portability and account consolidation; uncashed check services; and the ability to search for lost or missing participants.

Retirement Clearinghouse (RCH) remains the only independent provider that defines its core business as the consolidation of retirement savings into active 401(k) or IRA accounts and provides plans and their participants with services that streamline the transfer of savings between retirement accounts.

Originally established as RolloverSystems in 2001, Charlotte, North Carolina-retirement Clearinghouse works with over 33,000 pension plans and has helped guide over 1.7 million plan participants with over $27 billion in retirement savings. Retirement Clearinghouse is a holding company of The RLJ Companies, founded by Robert L. Johnson. For more information, visit

Media Contact:

Victoria Castelbuono
JConnelly for the Clearinghouse Retreat
(973) 590-9314
[email protected]

SOURCE Retirement Information Center

Australia’s growing retirement savings pool creates demand for lawyers Tue, 14 Jun 2022 00:01:59 +0000

Corporate law firms in Australia are building their pensions capabilities as the continued growth of Australia’s giant pension savings pool and ongoing regulatory changes create increased demand for related legal work.

Australian employers are required to contribute the equivalent of 10% of staff salaries to staff pension funds, bringing the country’s total pension savings balance to A$3.4 trillion (2.4 billion), according to the Association of Superannuation Funds of Australia.

Employees can only access their retirement savings near or at the end of their working life, when they can tap into that money to fund their retirement.

Law firms are currently advising funds on mergers as the financial regulator encourages those with balances below A$30 billion to combine with other funds to generate economies of scale and lower fees for members. They also need guidance on regulations.

Late last year, Australia’s Holding Redlich advised the merger of Hostplus and the smaller Intrust Super, which had just A$3 billion in funds.

And earlier this year, local firm Allens advised Sunsuper and King & Wood Mallesons advised QSuper in Australia’s biggest-ever super fund merger to create a AU$230 billion fund.

Most fund mergers involve union-aligned nonprofit funds, but there are exceptions. This month, King & Wood Mallesons said it was advising Mercer Australia on its merger with BT’s personal and corporate pension funds, in a combination of two private sector funds.

“We expect pension fund consolidation to continue over the next decade, possibly longer. We will see small and mid-size funds merge and sometimes you will get a big successful merger,” said Allens partner Geoff Sanders, who specializes in pensions, fund management and financial services law. .

“The agreements have been in the works for a long time. Even the simplest ones can take upwards of 18 months, so this job is likely to have a long tail.

Overall, the demand for legal services in the superannuation sector is increasing. As the pool of funds grows, the sophistication of the industry changes and new regulations are introduced, Sanders said. As companies grow, they employ more complex investment structures that require legal expertise.

“The scope of services is expanding,” said Sanders colleague Marc Kemp.

The previous Australian government introduced a series of reforms known as Your Future, Your Super, which require the pensions industry to improve its efficiency, transparency and accountability. Funds are subject to an annual investment return performance test to hold them accountable for poor returns, and all of their activities must be in the best financial interests of their members.

Funds that fail the test – 13 failed last year – often seek to merge with larger funds to become more efficient.

On the face of it, fewer funds could mean less work for lawyers – fewer product disclosure statements to prepare, for example. But the mergers are giving rise to new legal issues, said Luke Hooper, a retirement partner at Holding Redlich, who has had a specialized retirement practice for several years.

“The reality is that when you have a merger, you transfer various issues and problems from one fund to a new fund,” he said.

“Sometimes we see products and issues from a new perspective that the previous administrator or the lawyers for the previous administrator may not have seen. As a result, you discover new issues arising and new challenges to how we deal with these issues. »

Additionally, rapid growth may cause funds to rethink their governance structures. Australia’s total pension assets are expected to nearly triple to more than A$9 trillion over the next two decades to 2041, according to a report by Big Four consultancy Deloitte.

And the regulatory burden is increasing the pension industry’s demand for legal work.

“It’s a heavily regulated industry by a number of regulatory bodies. There are many laws and many counterparties, such as members, employers, regulators, investment fund managers, group life insurers, trustees, custodians and investment banks,” said Hopper.

There are also negotiations with life insurance companies for policies for members, and large custodial contracts with financial services companies, as well as compliance with general financial services law.

The myriad of regulations require specialized attorneys who can drill into the details, Hooper said.

Ashurst said superannuation lawyers have a strong background in advising on regulatory issues for super funds, as well as experience in large commercial transactions, which are typically multi-faceted and involve a range of areas. or legal disciplines.

Ashurst’s partners, Con Tzerefos and Niki Short, told International that there is significant demand, but limited supply of this specialization. The company recently hired partner Scott Charaneka from local firm Thomson Geer, who will launch a pension offering that combines legal, regulatory and risk expertise.

The company said it had focused more on superannuation “to capitalize on significant opportunities”.

The growing size of funds has prompted some of the biggest to jump straight into the M&A market, such as AustralianSuper which bought a 70% stake in Australia Tower Network from Singapore’s SingTel and QSuper which took control of Australia Tower Network. Sydney Airport.

“We expect this trend to intensify as larger funds seek to diversify their investments and participate directly in a wider range of business transactions both onshore and offshore,” Tzerefos and Short said.

Retirees lose years of retirement income as inflation and markets collide Sun, 12 Jun 2022 05:00:00 +0000

Tom Selby of fund store AJ Bell said: “It can be very problematic if an investor makes a large withdrawal in the first few years of withdrawal, just when the value of the investments is falling. Even above-average yields in subsequent years would not make up for lost ground.

There are ways for savers to make sure their retirement pot lasts as long as they do. Tom McPhail of consultancy The Lang Cat said retirees needed to be much stricter about planning their cash flow in times of market volatility.

He said: “Think about everything that happens to your bills throughout the annual cycle. How does this relate to your income withdrawals? If you have a luxury vacation allowance, that might be something that gets thrown overboard at this point.

Another option is to take only the “natural return” generated by the investments in your pension. If the dividends and bond interest can cover your living expenses, it will allow you to stay invested and prevent losses from crystallizing in the portfolio.

Mr McPhail said: “This means that when the markets recover, you will have the same number of shares and benefit from the rise in the markets.”

This strategy comes with two disclaimers, however. First, it can expose you to wild swings in your income if dividends dry up, as they have during the pandemic. Second, the level of natural income must be sufficient to cover your needs.

Mr McPhail added: “Once you withdraw more than 4% of your pot each year, the chances of running out of money before you die start to increase.”

Using sources of income other than your pension, such as cash Isas or rent from rental properties, could also prove useful in the short term until stock markets fall and inflation subsides.

Romi Savova of savings company PensionBee said investors should avoid tinkering with their wallets, whether by withdrawing more money or changing their investments.

“Don’t try to time the market. This usually doesn’t work out well because in environments like this it’s hard to know if the markets have bottomed or not. If they’ve bottomed out and you change your investments, you run the risk of missing the recovery,” she said.

If they have no other alternative, Mr McPhail said retirees should remember that future sources of income could help mitigate the damage caused by reduced retirement savings. Individuals are entitled to the state pension from the age of 66, although the state retirement age increases to 67 from 2028 and to 68 between 2044 and 2046.

He added: ‘You may be able to take a little more money out of your retirement plan in the short term because you know that in a few years you will be entitled to the state pension.’

Ally just raised the interest rate on her savings account to 0.90%. Here’s how much it can boost your savings Fri, 10 Jun 2022 15:39:43 +0000

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Ally Bank has just raised the rate on its High Yield Savings Account from 0.75% to 0.90% APY.

This is the latest in a series of rate hikes from Ally and other online banks following the Federal Reserve’s decision to raise federal interest rates in recent months. Over the past month, Ally has increased its savings APY from 0.50% to 0.60%, then to 0.75%, before this week’s jump to 0.90%.

Experts predict that interest rates will only continue to rise for the rest of 2022.

Ally is already one of our picks for the best high-yield savings accounts and ranks among the best savings account rates today. Here’s why and what the new rate means for your savings:

How much can you earn with Ally’s 0.90% APY?

Let’s say you have $10,000 set aside as an emergency fund in an account with Ally.

At the previous 0.75%, you would earn about $75 in interest in a single year. Now, with an APY of 0.90%, you will earn around $90 over the same 12 month period.

That may not seem like a lot of money in the long run, especially given the large balance of $10,000. But compare that to the current national average savings interest rate of 0.07%, which is more in line with what you would find at a traditional national bank with physical branches. With the same $10,000 in a traditional savings account earning this average, you would only increase your income by $7 over the course of a year.

Now consider that you have $10,000 in your account today and can contribute an additional $100 per month over the next year. Here’s how much you could earn by the end of the year by earning 0.90% APY, versus no additional contribution, and contributing the same amount with the national average of 0.07% APY.

Ally Bank 0.90% APY Ally Bank 0.90% APY plus contributions National average 0.07% APY National average 0.07% APY plus contributions
Starting savings balance $10,000 $10,000 $10,000 $10,000
Monthly fee $0 $100 $0 $100
Total savings balance after one year $10,090 $11,296 $10,007 $11,207

For more comparison, here’s a look at the current yields offered by other banks on our list of best savings account rates:

Best Savings Account Rates

Bank APY
TAB Bank 1.26%
Bank Varo 1.20%
Savings on bread 1.15%
Prime Alliance Bank 1.11%
Lending club bank 1.05%
Living Oak Bank 1.05%
Salem Five Direct 1.01%
CIT Bank 0.90%
Allied bank 0.90%
Barclays 0.90%
Synchrony 0.85%
Goldman Sachs Bank USA 0.85%
Capital one 0.80%
Discover the Bank 0.80%
DollarSavingsDirect 0.75%
American Express National Bank 0.75%

Why we love Ally Bank

Ally Bank is one of our favorite banks for high yield savings thanks to its excellent customer service and because it consistently offers one of the best APYs around. There are no monthly maintenance fees or minimum balance requirements to open or manage your account. Ally also offers a grouping feature that allows you to dedicate different amounts from your online savings account to different purposes, such as an upcoming vacation, a down payment on a house, or an emergency fund.

In addition to its high-yield savings account, Ally offers CDs, interest-bearing checking accounts, investment and retirement funds, and even loans.

However, we also think that all of the banks in the table above and our list of the best high-yield savings accounts are great places to store your money. Each of these banks offers low or no minimum deposit requirements, no monthly fees, and some of the highest APYs available today.

The most important thing is to find a bank with the features that best suit your needs (mobile app access, unlimited withdrawals, savings tools, etc.) and start saving. You can set up automatic transfers to your savings each time you get paid to make the process even easier. Then you can focus on other financial goals like paying off debt or buying a house.

Why are interest rates rising?

Since the start of the pandemic in the spring of 2020, the Federal Reserve has kept rates close to zero. But in response to inflation and other economic factors, the Fed began raising interest rates earlier this year.

Online and traditional banks generally base their interest rates on the federal funds rate set by the Fed. This is true for the APRs they charge borrowers (credit card interest, mortgage rates, etc.) and the APYs they pay customers on their deposits in savings accounts or CDs.

As the Fed continues to raise the federal funds rate, you can expect APYs on savings accounts, as well as money market accounts and CDs to rise as well.
Keep in mind that these rates are still marginal, and even the best high-yield savings accounts only earn around 1% of your balance. It’s a safe and reliable way to store short-term or emergency savings, but it’s not a good vehicle if you’re looking to build wealth. For longer-term investments and retirement savings, it’s a good idea to diversify your portfolio with investment accounts like index funds and mutual funds, and retirement accounts like a 401(k) or a Roth IRA.

Peter Navarro complains about possible legal costs: ‘I will eat dog food if I stay out of jail’ Wed, 08 Jun 2022 21:18:00 +0000 He also continued to speak publicly on Wednesday about his work with Trump around Jan. 6, while still refusing to provide such information to the House Select Committee investigating the attack on the U.S. Capitol.

Navarro said he plans to represent himself in court. Also on Wednesday, Justice Department prosecutors sought a protective order barring Navarro from disclosing any evidence he receives in the case, including because he continues to make media appearances about his situation, creating a potential “carnival atmosphere”.
“Obviously, the prosecution’s strategy is to take advantage of an individual without adequate representation,” Navarro said in a letter to the judge, Amit Mehta of the DC District Court, which was made public in his filing. “My very freedom here is at stake and I ask the court to understand that it will take time both to find the appropriate representation and to develop an appropriate legal strategy.”

In a Fox News interview on Wednesday afternoon, Navarro said hiring a lawyer would be so expensive that he would lose his retirement savings.

“It’s going to cost half a million dollars, I’m told,” he said. “I will eat dog food if I stay out of jail.”

On Fox, Navarro spoke again about what he believed to be Trump’s thinking around Jan. 6 – saying the president and Steve Bannon didn’t want violence.

Navarro has said he refuses to comply with House subpoenas requesting information about his interactions with Trump because he enjoys immunity, and emails from Pence advisers that are now public make it clear that the Trump’s advisers knew he would refuse to do what they wanted.

Bannon also faces contempt charges for failing to testify in the House or turn over documents and has pleaded not guilty.

The Justice Department’s request, if granted, could prevent Navarro from speaking so freely about his charges. However, the DOJ is not asking for a so-called gag order at this time.

Navarro’s interviews so far “demonstrate a substantial risk that, without an order of protection, the defendant will use a non-public discovery for improper purposes instead of preparing the defense he plans to present in this Court,” they said. writes prosecutors from the DC US Attorney’s Office. Wednesday. “The defendant has demonstrated by his public statements that he intends to plead the merits of the pending charges in the press.”

Prosecutors also described in court the filing of the types of evidence they collected for the Navarro contempt case. This includes witness interviews with law enforcement and before a federal grand jury, communications between Navarro and others not named at this time, and information about Navarro’s phone and email accounts.

The senses. Hickenlooper and Collins introduce bill to help small businesses offer retirement plans Tue, 07 Jun 2022 08:37:50 +0000

US Senators John Hickenlooper (D-CO) and Susan Collins (R-ME) last week introduced legislation to make it easier for small businesses to offer retirement plans to their employees.

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Retirement Savings Act to simplify the Small Business Retirement Savings Act would allow companies administering employer-sponsored group plans to have the option of using directed trustees, an industry standard for large corporations, as well as discretionary trustees. Currently, they do not have the ability to use directed trustees. This new option would expand the market for employer-sponsored group plans, giving small businesses more choice at a lower cost.

The bill would also simplify IRS filing for small business pension plans. Currently, small businesses with up to 100 employees have simplified IRS compliance requirements for their retirement plans, while those with more than 100 employees must adhere to a more complex filing process. This bill would apply the same streamlined process to any small business pension fund with up to 100 employees.

“Making it easier and more affordable for small businesses to offer retirement plans is key to helping many Americans prepare for their golden years,” Collins said. “In 2019, legislation I co-authored to reduce the cost and complexity of retirement plans was signed into law, expanding employee access to these savings options. Building on this effort, our bipartisan bill would make a significant difference in helping individuals save more for retirement.

Small businesses employ nearly half of America’s private sector workers. Yet, due to the complexity of regulations, only 53% of workers in small businesses have access to a pension plan, compared to 85% of employees in large companies.

“Small businesses don’t have the resources of big businesses, but we treat them the same when it comes to pension plans,” Hickenlooper said. “Reducing this bureaucracy will make it easier for employees to save for retirement and help level the playing field for local businesses.”

Falling behind on retirement savings? A bad market can be a good time to invest Sun, 05 Jun 2022 14:00:01 +0000

Small business owners are among the Americans most likely to fall behind when it comes to retirement savings. Reinvesting in a business is more often a priority for entrepreneurs with excess cash than investing in a long-term tax-deferred retirement plan. Covid didn’t help.

Amid the pandemic, dozens of U.S. small business owners have stopped or reduced their retirement savings, investment professionals and retirement experts say, pressured by rising labor costs and raw materials, or in the worst case, facing business closures.

Granted, the pandemic hasn’t hurt every small business when it comes to retirement planning. Thirty-seven percent of small business owners say they are not confident they are saving enough for retirement, according to a March survey by ShareBuilder 401k of 500 small businesses. But that’s down somewhat from the 44% who said two years earlier that they weren’t confident in their ability to save for retirement.

Some data shows that, at least at the margin, savings rates for small business owners have mirrored the rise for all Americans during the pandemic. In 2019, the average monthly amount that active participants contributed to their 401(k) plan with Guideline, a retirement platform for small businesses, was $646. That rose to $783 in 2021, according to the company. For its part, Vanguard saw participation rates for small businesses rise to 73% in 2020 from 72% a year earlier, and deferral rates — the portion of an employee’s salary that is contributed to retirement — rise to 7. .3% in 2020, compared to 7.1% in 2019.

But those results don’t generally reflect the experiences of many of the country’s smaller companies, including those in particularly hard-hit sectors. Many of these companies have fallen behind on their retirement savings goals over the past few years for various reasons and need a boost, finance professionals say. Coupled with the fact that many homeowners never saved for retirement, recent market swings could make this a good time to consider saving money, or more money, for retirement.

Here are some ideas on how to bridge the gap.

1. Put at least 10% of your income into retirement if you can

As a rule of thumb, investment experts suggest saving 10% to 15% of your income per year over a 40-year career — just to maintain the same standard of living in retirement, says Stuart Robertson, CEO of ShareBuilder 401k . Yet the March survey found that only 38% of companies surveyed were saving 10% or more. Meanwhile, 24% said they are not currently contributing.

2. Cut the budget and redirect to savings

David Peters, founder and owner of Peters Tax Preparation & Consulting in Richmond, Va., told business owners to carefully consider their budget, paying close attention to where they spend their money and looking for ways to reduce. For example, they might be able to work from home and save gas or cut out unnecessary luxury items. “A smart move would be to reduce some of the current expenses so you can continue to save for long-term goals,” he said.

3. Increase investment portfolio risk

Another option, for those who are already saving, could be to take on more investment risk, while reducing expenses, if necessary. “If you increase your allocation so that you get two or three percentage points more on a rate of return, and you reduce your expenses by 2% to 3%, and you add the power of compounding, that can be very powerful for returns,” said Timothy Speiss, tax partner in the Personal Wealth Advisors Group at EisnerAmper LLP in New York.

This may seem like a tough pill to swallow amid recent market volatility, but for small business owners who have cash right now, they may be able to take advantage of some funds that may be undervalued. . “People are afraid to save when they see the red numbers popping up every day,” Peters said, but due to market fluctuations, “there may be opportunities they wouldn’t otherwise have.”

As Dan Wiener, who runs the independent advisor for Vanguard Investors, recently told CNBC’s Bob Pisani, when the S&P 500 falls more than 3.5% in a single day or series of days, it’s mostly buying opportunities. Between June 1983 and the end of March 2022, this happened 65 times and produced average returns of 25.6% over the following year. “Buying on those big one-day price declines has been profitable more often than not if you’re willing to only look at a year,” he said.

4. Create a plan and stick to it

Although some small business owners fear the market could go down further, retirement savings professionals said things tend to balance out over time when owners contribute regularly in retirement. The underlying motivation shouldn’t be picking the best days, but creating a long-term savings plan and sticking to it.

By simply contributing regularly, investors gain the benefits of cost averaging, which means you’re not always buying high or low, said Kevin Busque, CEO and co-founder of Guideline. “When you set it and forget it, you don’t have to worry about market timing.”

Robertson gives the example of an investor who regularly buys a fund for $500, during a high market, a low market and a recovering market. First, the investor buys five shares at $100 each. He then buys 10 shares at $50 each, and finally, he buys 6.67 shares at $75 each. His total expenses are around $1,500 and the fund’s average share price is $75. Yet the total market value of his 21.67 shares is $1625.25, so he is ahead even though he bought some shares at a market high and some at a market low.

“They can save any way they want; the important thing is that they do it,” Robertson said.