Aston Carter

Catalog Associate

Founder of Investoroo.com | Helping employees and self-employed professionals navigate the world of retirement planning | Finance Writer

Retirement planning can be time-consuming, energy-draining and downright confusing.

Does this sound like you?

❌ You aren’t sure about how to predict your future financial needs
❌ You’re overwhelmed with retirement options
❌ You don’t know where to start investing

All of these are reasons I’ve heard for why people postpone retirement planning.

The problem?

The longer you wait, the less you’ll make. 

Whether you’re an employee or self-employed, chances are you aren’t maximizing your retirement options. 

Here’s how I can help ⬇️

Over the last 10 years, I’ve maxed out my retirement contributions in 401ks and IRAs by understanding laws, limits, and undervalued investment opportunities.

Now, I’m sharing everything I know.

When you subscribe to the Investoroo.com newsletter, you’ll get tips and advice to help you make informed decisions about your future.

We’ll explore topics such as:

✅ Roth IRAs vs. Traditional IRAs
✅ Self-employment retirement options
✅ Supplemental plans to go with pensions
✅ How to determine how much money you’ll need to retire (and how to get there)

And so much more.

Why Me? ⬇️

Unlike most retirement plan experts, I’m not affiliated with a financial company. 

I’m not here to sell IRAs or pressure you into opening unnecessary accounts.

I’m here to give unbiased advice to help you retire the way you want.

That’s it.

Let’s get you on the right path today. Sign up for the Investoroo.com newsletter here.

Have you ever wondered if you're making the right choice with your 401(k) contributions? 
 
Should you use pre-tax or after-tax contributions to fund your 401(k) account? 
 
Choosing between pre-tax and after-tax 401(k) contributions takes a lot of work. 
 
Understanding how taxes and benefits work with different 401(k) contributions is tricky! 
 
It can feel like trying to find your way through a thick forest at night without a flashlight. 
 
So, why does this matter so much? 
 
The type of 401(k) contributions you choose can influence your financial freedom in retirement. 
 
𝗣𝗿𝗲-𝘁𝗮𝘅 𝗰𝗼𝗻𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻𝘀 are deducted from your salary before taxes are applied.  
 
This type of contribution lowers your taxable income now, which means you pay less in taxes today. 
 
Sounds good, right? 
 
But you'll pay taxes on withdrawals during retirement. 
 
In contrast, 𝗮𝗳𝘁𝗲𝗿-𝘁𝗮𝘅 𝗰𝗼𝗻𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻𝘀 do not enjoy immediate tax deductions. 
 
Yet, the beauty of after-tax contributions lies in tax-free withdrawals when you retire. 
 
This contribution makes it a sweet deal for those expecting higher tax rates! 
 
So, how do you choose between making pre-tax and after-tax contributions to your 401(k)? 
 
Here's a way to think about it: 
 
Choosing after-tax contributions can be good if you believe you'll make more money and enter a higher tax bracket after you retire. 
 
This move means you pay the taxes now, at your current rate, and not when you withdraw your money in retirement which saves you from paying higher taxes later! 
 
But, if you expect to earn less when you retire and be in a lower tax bracket, pre-tax contributions might be a better choice. 
 
By opting for pre-tax contributions, you reduce your taxable income now, lowering your tax bill. 
 
This strategy provides immediate tax relief, which could be more beneficial while you're still earning a higher income. 
 
The right choice can help you cut your tax burden based on your anticipated financial situation when you retire. 
 
Remember, it's not about choosing one contribution over the other. 
 
Many savvy savers split their 401(k) contributions between pre-tax and after-tax to hedge against future tax rate uncertainties. 
 
When did you last evaluate your current tax status and financial situation? 
 
It would help if you chatted with a financial advisor to tailor the best 401(k) contribution strategy for your goals. 
 
By understanding the difference between pre-tax and after-tax contributions, you'll make better choices to ensure your retirement strategy fits your unique income needs. 
 
What's your strategy for optimizing your 401(k) contributions, and how has it changed over time? 
 
#401k  
#retirement 
 
Image Source: pathdoc via Shutterstock

Aaron Koral

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Facing retirement can sometimes feel like staring down a long, uncertain road. 
 
The fear of running out of money and being unable to maintain your lifestyle or meet healthcare needs is real. 
 
You might not have saved enough, thinking tomorrow's always a day away. 
 
Or you may be withdrawing too much from your savings too early and not factoring in how long your retirement will last. 
 
Rising healthcare costs can come as a shocker to your wallet! 
 
And then there's inflation, the silent retirement savings eroder! 
 
The good news? You can pivot from fear to action. 
 
Turning your fear of financial insecurity in retirement into actionable steps you can take can improve your future. 
 
First, let's talk about maximizing retirement contributions. 
 
For instance, if your employer offers a 401(k) match, ensure you add enough to get the whole contribution. 
 
It's free money that can grow over time! 
 
This step ensures your savings grow faster due to compound interest from employer contributions. 
 
Next, regarding investments, it's about finding the right balance between risk and reward. 
 
Consider diversifying your portfolio with stocks, bonds, and other assets. 
 
This strategy can help manage risk while still giving you growth potential. 
 
Younger savers should rely more on stock funds for growth potential. 
 
Those closer to retirement, however, should shift money toward bond funds for stability. 
 
This balanced approach aims to grow your nest egg and ensure you have a robust fund to draw from in retirement. 
 
Healthcare planning is another critical area to review. Healthcare costs are rising every year.  
 
If available, consider options like Health Savings Accounts (HSAs) to lower some of those costs. 
 
HSAs offer triple tax advantages. You get a tax break for contributions. The money also grows tax-free.  
 
And, withdrawals for medical expenses are tax-free! 
 
By funding an HSA, you can reduce the risk of rising medical costs ruining your retirement nest egg. 
 
Lastly, to inflation-proof your retirement, use strategies such as keeping some of your portfolio in stocks.  
 
Stocks have historically outpaced inflation. 
 
This approach helps protect your purchasing power from inflation.  
 
It also preserves your ability to afford the retirement lifestyle you want. 
 
Each strategy tackles the problem of running out of money in retirement.  
 
They grow and protect your savings from common pitfalls like inflation and healthcare costs. 
 
Ask a financial advisor to help you tailor a plan that fits your risk tolerance and retirement goals. 
 
Consider your retirement plan: Is it built to last, or is it close to running out of time? 
 
#retirementplanning 
#financialfreedom 
 
Image Source: Zephyr_p via Shutterstock

Is the job market's latest boom a sign of sunny days ahead?  
 
Let's dive into the latest Bureau of Labor Statistics release and find out! 
 
In March, the job market added 303,000 jobs, increasing the unemployment rate to 3.8%. 
 
But that's not all! 
 
The job count for January and February also got a little boost. It showed an extra 22,000 jobs that we didn't know about before.  
 
This change means the number of folks without a job dipped by 29,000 to land at 6.4 million. 
 
Rewind to last year's time; the job market was a bit gloomier.  
 
This time last year, the unemployment rate hovered at 4.0%, and 6.0 million people were on the job hunt. 
 
So, where are folks finding employment now? 
 
Areas like health care, government jobs, and hospitality are opening their doors. Last month, they added 72,000, 71,000, and 49,000 jobs, respectively. Also, the construction and retail sectors added thousands of new jobs last month. 
 
With all these new jobs available, those on the sidelines, previously tagged as permanently out of work, are finding hope! The number in this camp has dwindled, and more folks are re-entering the labor force. 
 
Also, everyone's getting a bit more in their paycheck! 
 
Hourly earnings are up by 0.3%, making the average hourly rate a sweet $34.69. That's a nice bump of 4.1% from last year! 
 
The key takeaway from the recent report is that job growth is hopping. 

So, those looking for work will likely find employment with higher wages as a sweetener! 
 
But what do these results mean for the Federal Reserve (Fed) mandate on employment? 
 
With employment numbers increasing, the Fed might consider this a cue to hold interest rates steady or raise them slightly.  
 
Why?  
 
Because more jobs and higher wages can lead to more spending, which can fan the flames of inflation.  
 
Remember, the Fed's juggling act is to keep employment high and inflation low.  
 
With employment shining bright, if inflation is also ticking up, interest rate hikes could be on the table to keep inflation from eclipsing their target range.  
 
Yet, if inflation falls, the Fed might opt for a more cautious approach, adjusting rates only when the economy can handle it without tripping into a slowdown.  
 
Thus, the Fed will keep interest rates steady until it sees employment growth slowing along with lower inflation in prices and wage growth. 
 
So, what's your take on the latest jobs report? Chime in below! 
 
#useconomy  
#unemployment 
 
Image Source: BLS

Did you know that despite popular belief, the U.S. housing market is showing signs of robust health? 
 
The U.S. Census Bureau's data from February 2024 reveals some unexpected yet promising trends. 
 
Recent data on new housing construction in the U.S. shows an optimistic surge in housing starts. 
 
The seasonally adjusted annual rate of 1,521,000 is a 10.7% increase from the revised January estimate and, even more impressively, a 5.9% rise from the February 2023 rate. 
 
This change signals a robust revival in residential construction activity, particularly in single-family homes, which accounted for 1,129,000 units. 
 
But that's not all! 
 
The multifamily sector, which includes buildings with five units or more, also showed remarkable growth last month, adding 377,000 units. 
 
This revitalization in housing construction is more than just numbers. 
 
The data gives hope to many Americans seeking affordable housing. 
 
Unit change marks a crucial turning point for the U.S. housing market. 
 
Several key insights from the report paint a picture of the current and potential trajectory of the U.S. housing market. 
 
Building permits are a leading indicator of future home construction, and they rose to 1,518,000 for private homes. 
 
This change represents a 1.9% rise from January's revised rate and a 2.4% increase from February of the previous year. 
 
The breakdown of these permits reveals a nuanced landscape. 
 
The data shows that 1,031,000 authorizations were for single-family units, highlighting a steady demand in this segment. 
 
Meanwhile, 429,000 were for buildings with five or more units, indicating a growing interest in multifamily housing developments. 
 
Geographically, the distribution of building permits varied significantly, with the Northeast and Midwest experiencing increases of 36.2% and 3.8%, respectively, pointing to regional growth dynamics. 
 
In contrast, the West and South saw declines, suggesting regional market shifts or varying economic conditions. 
 
Moreover, the number of houses approved for construction but not yet started increased slightly, up 0.4% to 270K units. 
 
At the same time, the backlog for single-family housing decreased. 
 
This change suggests that supply chain, demand, and economic factors affect the housing construction pipeline. 
 
The data signals a potential shift towards solving one of the most pressing societal issues: making homes affordable for everyone. 
 
We can advocate for policies that ensure a stable, affordable housing market by understanding these trends. 
 
So, could the recent uplift in housing starts and completions be the dawn of a new era in housing affordability? 
 
#housingmarket 
#housingaffordability 
 
Image Source: U.S. Census Bureau

Have you ever wondered if there's a secret recipe for cooking up stellar portfolio returns? 
 
Investing in stocks is like navigating a vast ocean.  
 
There are two compasses: growth & value investing. 
 
Each has its course plotted toward the treasure, but the paths and perils are uniquely their own. 
 
When you start investing, do you paddle towards growth stocks? These are companies with explosive earnings potential. 
 
Or do you dive deep, searching for the sunken treasures of undervalued stocks, ready to surface when the world recognizes their worth? 
 
Growth and value investing philosophies are different ways to assess and profit from market opportunities. 
 
Growth investing is the pursuit of companies expected to grow at an above-average rate compared to their industry or the stock market. 
 
These are often tech-savvy or innovative firms like Amazon or Microsoft.  
 
Despite high price-to-earnings ratios, they allure investors with their potential for fast growth. 
 
Value investing however seeks out companies trading below their actual value.  
 
This valuation often happens because they are overlooked or face short-term challenges. 
 
Firms like Goodyear Tire and Southwestern Energy have stable dividends and lower volatility.  
 
These firms offer a valuation safety net during market downturns. 
 
Stocks like these appeal to those who seek undervalued opportunities. 
 
The contrast between growth & value investing extends to market performance and investor expectations. 
 
Growth stocks are usually priced higher than earnings growth, banking on future potential. 
 
Value stocks trade at a discount, reflecting their current underappreciation but solid fundamentals. 
 
This fundamental difference in valuation can influence portfolio performance, particularly in varying economic conditions. 
 
For example, growth stocks do well in a bullish market. They also do well when interest rates are low.  
 
In these times, investors are willing to pay a premium for their earnings potential. 
 
Growth stocks can skyrocket your portfolio returns but also expose you to sharp downturns! 
 
Value stocks often outshine during market corrections or periods of economic recovery.  
 
Value investors gravitate towards undervalued companies whose assets are due for a rebound. 
 
Value stocks might not dazzle with speed, but they offer the steady hand of resilience, often outperforming in turbulent times. 
 
Choosing between growth and value investing is about alignment of your financial goals with your risk tolerance. 
 
Talk to a financial advisor to help you understand the benefits and risks of growth and value investment strategies. 
 
What's your preferred investment strategy for uncovering the next big winner in the stock market? 
 
#investing 
#stocks 
 
Image Source: Costello77 via Shutterstock

Picking the right 401(k) funds could be the difference between retiring and retiring well! 
 
Navigating the labyrinth of 401(k) fund options feels like finding your way through a dense fog. 
 
You're presented with a plethora of choices, each with its unique blend of: 
 
✅fees, 
✅risks, & 
✅returns. 
 
It's a daunting task that leaves many of us feeling lost. 
 
With so many options, how do you know which is right for you? 
 
The stakes are high, as the wrong choice could impact your retirement dreams. 
 
Now imagine a world where you pick 401(k) funds that match your goals and needs. 
 
Knowing how to cut costs and taxes means more money in your retirement account. 
 
This goal isn't a dream—it's achievable! 
 
So, how do you cross this bridge? 
 
First, start with 𝘂𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝘆𝗼𝘂𝗿 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗴𝗼𝗮𝗹𝘀 𝗮𝗻𝗱 𝗿𝗶𝘀𝗸 𝘁𝗼𝗹𝗲𝗿𝗮𝗻𝗰𝗲. 
 
Think of it as plotting your course on a map before embarking on a journey. 
 
For example, if your retirement is decades away, you might prefer stock funds with higher risks but higher potential returns. 
 
The volatility of these funds is often smoothed out over the long term, leading to greater investment returns. 
 
Next, 𝗱𝗶𝘃𝗲 𝗶𝗻𝘁𝗼 𝘁𝗵𝗲 𝘀𝗽𝗲𝗰𝗶𝗳𝗶𝗰𝘀 𝗼𝗳 𝗲𝗮𝗰𝗵 𝗳𝘂𝗻𝗱 𝗼𝗽𝘁𝗶𝗼𝗻—look at the: 
 
☑️fund fees, 
☑️fund's investment strategy, & 
☑️fund's performance history. 
 
These elements help you understand how the fund makes money over different market conditions. 
 
For instance, at first glance, a fund with low fees might seem similar to a higher-fee fund. 
 
But, over 20 or 30 years, those fees can eat into your investment, reducing your returns. 
 
You keep more of your money working for you by choosing the lower-fee option. 
 
Then, 𝗮𝘀𝗸 𝘆𝗼𝘂𝗿𝘀𝗲𝗹𝗳: 𝗗𝗼𝗲𝘀 𝘁𝗵𝗲 𝗳𝘂𝗻𝗱'𝘀 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 𝗮𝗹𝗶𝗴𝗻 𝘄𝗶𝘁𝗵 𝘆𝗼𝘂𝗿 𝗿𝗶𝘀𝗸 𝘁𝗼𝗹𝗲𝗿𝗮𝗻𝗰𝗲? 
 
A target-date fund, for example, automatically adjusts its asset allocation to become more conservative as you near retirement. 
 
This auto-pilot feature can help investors who prefer a "set it and forget it" approach. 
 
It ensures that their investments take on only a slight risk as they near retirement. 
 
Understanding these elements—𝘆𝗼𝘂𝗿 𝗴𝗼𝗮𝗹𝘀, 𝘁𝗵𝗲 𝗳𝗲𝗲𝘀, 𝗮𝗻𝗱 𝘁𝗵𝗲 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆—lifts the fog of confusion and guides you toward making choices that are in your best interest. 
 
Talk to a financial advisor who can lead you toward your financial goals with your choices. 
 
By making informed, deliberate choices, you can optimize your 401(k) to serve your retirement goals. 
 
This plan ensures that you're ready and well ahead when retirement comes. 
 
Are you ready to take control of your retirement savings strategy? 
 
Image Source: FabrikaSimf via Shutterstock 
 
#401k 
#investmentgoals

Can unemployment data be a good predictor of future recessions in the United States? 
 
In today's financial climate, the cool breeze of recession blows stronger than ever.  
 
With whispers of unemployment lurking around the corner, it's crucial to stay informed.  
 
But how do you find the economic signals that matter most to your portfolio's returns? 
 
Enter the Sahm Rule, a beacon in the fog of economic indicators.  
 
This rule, conceived by economist Claudia Sahm, acts much like an early warning system, detecting the first signs of an economic downturn through changes in unemployment rates. 
 
To understand the Sahm Rule, envision the unemployment rate as the ocean's tide.  
 
In normal conditions, the tide ebbs and flows gently. However, when the tide rises sharply and unexpectedly, it's often a precursor to a storm.  
 
In simple terms, the Sahm Rule triggers a red flag when the three-month moving average of the unemployment rate rises by 0.5 percentage points above its low during the previous 12 months. 
 
So why should you care about this data point?  
 
Because this modest increase in unemployment has been a reliable harbinger of a recession. 
 
Now, to be clear, we haven't hit that watermark yet! 
 
According to the creator herself as well as data from the St. Louis Federal Reserve, the three-month average of the unemployment rate is still about 23 basis points shy of triggering the Sahm Rule as of February of this year. 
 
The warning provided by the Sahm Rule—those dark clouds on the horizon—can signal that it's time to batten down the hatches and prepare for rough seas.  
 
But how does this translate to actions for your portfolio? 
 
Think of your investments as cargo on your ship.  
 
In calm waters, a diverse cargo can help you trade far and wide, maximizing profits.  
 
But, as the storm approaches, the nature of your cargo becomes critical.  
 
Heavy, stable goods (akin to bonds or stable-value stocks) are less likely to shift and capsize your vessel compared to lighter, more volatile goods (such as high-growth stocks).  
 
By shifting your investment "cargo" towards assets less sensitive to economic downturns, you're stabilizing your ship against the impending storm. 
 
Using the Sahm Rule's signal to reassess your investment strategy is akin to spotting those dark clouds and preparing accordingly.  
 
Talk to a financial advisor about making your portfolio robust and flexible to weather a recessionary storm. 
 
Do you think the Sahm Rule is a helpful indicator for prediction recessions? 
 
#useconomy 
#sahmrule 
 
Image Source: Statista via St. Louis Federal Reserve

Why do some stocks soar while others plummet, even in the same industry? 
 
You've heard of operating margins, right? 
 
But do you grasp their power? 
 
They predict a company's profitability and financial health. 
 
Operating margins measure a company's profit per dollar of sales after covering variable production costs. They do not include interest or tax expenses. 
 
In simpler terms, it's a vital sign of how efficiently a company can turn its sales into profits. 
 
A widening operating margin over time shows high efficiency. A narrowing operating margin may show trouble ahead. 
 
Picture this: two companies in the same sector, but one has consistently expanding operating margins while the other is shrinking. 
 
Which would you bet on? 
 
Operating margins offer a lens through which to view a company's potential for growth and profitability. 
 
Real-world examples abound where operating margin analysis guides investors to choose stocks that outperform their peers. 
 
Snowflake Inc. has increased operating margins over the last five years. 
 
Snowflake has shown strong growth in revenue and non-GAAP operating margin despite challenging economic conditions. 
 
From fiscal year 2024, Snowflake reported a 32% revenue growth to $734 million. It also enhanced its non-GAAP operating margin from 8% to 10%. 
 
The company improved efficiency and profitability from economies of scale and a more extensive renewal mix. 
 
A company whose operating margin has shrunk over time is Beyond Meat. The firm has been facing challenges that are affecting its profitability. 
 
According to their latest earnings release, Beyond reported significant revenue and margin contraction in 2023. 
 
The firm has intense capital requirements for innovation in the competitive food industry, which saw demand for its plant-based products plummet. 
 
Investors can gain insights from companies like Snowflake and Beyond on the critical factors affecting operating margin changes. 
 
Understanding these changes is crucial for making informed investment decisions in companies poised for sustainable profitability and growth. 
 
So, how can you start using operating margins to your advantage? 
 
First, analyze a company's financial reports and track its operating margin trends. 
 
Look for patterns of expansion or contraction and understand the reasons behind these movements. 
 
Incorporating operating margin analysis into your investment strategy can help you select stocks with the best growth and profit potential. 
 
How will you use operating margins to improve your portfolio returns? 
 
#investing 
#operatingmargin 
 
Image Source: BNMK 0819 via Shutterstock

Is your 401(k) plan nibbling away more of your retirement savings than it should? 
 
It's a question investors like you ask about their retirement savings plans. 
 
You're saving some of your salary into a 401(k) plan. 
 
But, you find that hidden fees are cutting into your future returns. 
 
It's like realizing your parachute has punctures when you leap from the plane! 
 
Every cent paid in high fees is a cent not growing your returns. 
 
This result is due to the magic of compound interest. 
 
Consider this: a 1% annual fee might seem tiny at first. 
 
But, over 30 years, it could shrink your account by over 25% compared to what it could have been without fees. 
 
And with fee structures often as clear as mud, you're left wondering if you're getting a fair deal! 
 
Many plan administrators are now required to disclose fee information. 
 
But, these disclosures can still be bewildering. 
 
For instance, you might see terms like: 
 
• transaction costs, 
• administrative fees, or 
• fund management fees. 
 
Understanding these terms can help determine if your plan's fees exceed industry benchmarks. 
 
Benchmarking involves comparing your plan's 401(k) fees to similar ones. 
 
This comparison helps you see if you're paying too much for services in your 401(k) plan. 
 
If you're paying 1.5% in total fees and a similar plan offers the same or better services for 0.5%, you're leaving money on the table. 
 
A few tools help you compare your 401(k) plan fees. 
 
Websites and apps like FeeX or Morningstar's 401(k) Manager analyze your 401(k) plan to identify high fees and suggest more cost-effective alternatives. 
 
Once you know your plans' fees, ask your 401(k) plan administrator for a breakdown of the services provided for these fees. 
 
Question your plan administrator on how those services help improve your investment returns. 
 
Once you have the fee assessments from your 401(k) plan administrator, switching to a lower-fee plan is best. 
 
By showing a willingness to move your money to where it's treated best, you can drive down your 401(k) plan fees. 
 
Addressing the problem of excessive 401(k) fees through the use of: 
 
• fee assessment tools, 
• considering the option to switch plans, and 
• direct communication with plan administrators 
 
You can ensure your 401(k) works as hard for your future as you are! 
 
Here's a parting thought: when did you last check your 401(k) fees? 
 
#401k 
#excessivefees 
 
Image Source: pathdoc via Shutterstock

Is your retirement' magic number' at risk from rising inflation? 
 
The 2024 Northwestern Mutual Planning & Progress Study reveals a troubling trend! 
 
More Americans feel financially insecure today due to inflation. 
 
According to their study, 33% of adults feel this way. 
 
This figure is the highest level ever recorded by Northwestern Mutual. 
 
Why? 
 
Inflation is making it harder to reach your retirement' magic number.' 
 
Over half the study participants (54%) expect inflation to rise. 
 
Inflation affects the cost of everything from auto insurance to gasoline. 
 
No wonder people expect to need more money for a comfortable retirement! 
 
With inflation on the rise, consider inflation-resilient investment strategies. 
 
These strategies include investing in real estate or oil and gas stocks, which are less sensitive to higher inflation. 
 
Inflation-sensitive investment strategies can help preserve some of your retirement savings. 
 
Those strategies alone won't help you reach your 'magic number.' 
 
Getting there means employing defensive strategies, too! 
 
The study found that 42% of Americans adopt defensive strategies to be more financially secure. 
 
These strategies include cutting costs (56%) and boosting savings (51%). 
 
Younger people consider side jobs as a defensive strategy to protect their finances. 
 
The study's findings show generational differences in defensive strategies to achieve their "magic number" in retirement. 
 
Despite the generational differences in those strategies, everyone agrees that the 'magic number' to retire is rising. 
 
The perceived amount needed for a comfortable retirement has surged to $1.46 million, according to Northwestern Mutual. 
 
That's a 15% increase over the previous year and 53% higher than the 2020 figure! 
 
Now, if you've been saving money, hoping it will grow over time by investing it, here's the rub. 
 
As inflation rises, the buying power of the money you invest weakens. 
 
So, even if your investments grow, that growth might not keep up with how much more expensive everything has become. 
 
This means that you might not be able to buy as much with your investment returns as you had hoped in the future. 
 
Inflation will make reaching your 'magic number harder, like enjoying a comfortable retirement. 
 
So, what do you do if reaching your 'magic number' seems challenging? 
 
Consider: 
 
✅increasing your savings, 
✅diversifying investments, & 
✅creating extra income streams. 
 
Talk to a financial advisor to plan your next moves. 
 
Learn about investment strategies that match your goals and risk tolerance. 
 
Remember, reaching your 'magic number' is doable, even with rising inflation. 
 
What's one step you can take today to reach your 'magic number'? 
 
#retirementplanning  
#northwesternmutual 
 
Image Source: Northwestern Mutual

Have you ever stumbled upon a new cryptocurrency that made you stop and wonder, "Could this be the next big thing?" 
 
Let's talk about Hivemapper. 
 
Hivemapper uses a community-driven, decentralized model for making and updating maps. 
 
Traditional mapping companies rely on proprietary data collection methods. 
 
Hivemapper encourages developers and contributors to enhance the platform's capabilities.  
 
They use dashcams and other devices to gather and share real-time geographical data. 
 
The participatory nature of Hivemapper democratizes map-making. 
 
Here's a deeper look into how Hivemapper differs from other mapping companies: 
 
𝗛𝗶𝘃𝗲𝗺𝗮𝗽𝗽𝗲𝗿 𝘃𝘀. 𝗧𝗿𝗮𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹 𝗠𝗮𝗽𝗽𝗶𝗻𝗴 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀: Conventional mapping services like Google Maps rely on their data collection vehicles and satellite imagery. 
 
Hivemapper operates on a crowdsourced data collection model.  
 
This approach allows for rapidly updating and expanding maps based on real-time contributions from users worldwide. 
 
𝗥𝗲𝗮𝗹-𝘁𝗶𝗺𝗲 𝗨𝗽𝗱𝗮𝘁𝗲𝘀: Thanks to its community-driven approach, Hivemapper can adapt to changes in the physical world, such as new road constructions, closures, and traffic patterns. 
 
The decentralized data collection leads to broader coverage, including in areas updated less often by traditional mapping services. 
 
This responsiveness leads to a more accurate and current map than companies that rely on periodic updates. 
 
𝗕𝗹𝗼𝗰𝗸𝗰𝗵𝗮𝗶𝗻-𝗯𝗮𝘀𝗲𝗱 𝗥𝗲𝘄𝗮𝗿𝗱𝘀 𝗦𝘆𝘀𝘁𝗲𝗺: Hivemapper integrates blockchain technology to reward contributors with cryptocurrency tokens called Honey for data collection efforts. 
 
This incentive mechanism encourages ongoing participation and ensures Hivemapper's continual growth and accuracy, a feature not found in other mapping platforms. 
 
--- 
 
Owning a cryptocurrency like Hivemapper, or any cryptocurrency, comes with risks, like any investment. The list of potential risks includes: 
 
𝗥𝗲𝗴𝘂𝗹𝗮𝘁𝗼𝗿𝘆 𝗥𝗶𝘀𝗸𝘀: Government regulations can make it harder to use or trade Hivemapper, affecting its value. 
 
𝗧𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝗶𝗰𝗮𝗹 𝗥𝗶𝘀𝗸𝘀: The technology behind Hivemapper is complex, and sometimes, things can go wrong. Bugs or failures in the system could lead to losses. 
 
𝗠𝗮𝗿𝗸𝗲𝘁 𝗔𝗰𝗰𝗲𝗽𝘁𝗮𝗻𝗰𝗲: Only some services accept crypto as payment. If Hivemapper doesn't become widely accepted, they might not be as helpful as you hope. 
 
Hivemapper's innovative approach to mapping, driven by a decentralized, community-based model, sets it apart in the mapping space. 
 
Talk to a financial advisor to see if owning Hivemapper fits your risk tolerance and financial goals. 
 
#crypto  
#hivemapper 
 
Image Source: Hivemapper via LinkedIn

Did you know that a significant number of minority workers miss out on the benefits of 401(k) savings? 
 
Everyone regardless of race deserves a fair chance at financial security! 
 
A new program called the Savers Match hopes to make that a reality for Black and Hispanic workers. 
 
The Savers Match program will replace the Saver's Credit in 2027. This new program marks a significant shift towards more financial inclusion. 
 
This new program encourages retirement savings among lower-income minority workers. 
 
•	Unlike the current Savers Credit, the Savers Match directly matches eligible workers' retirement plan contributions. 
 
•	It adds up to $1,000 to their retirement savings at $0.50 for every dollar contributed. 
 
•	The maximum contribution limit is $2,000 annually. 
 
This new approach aims to encourage more savings. The Savers Match will boost the retirement funds of people who struggle to save. 
 
The Savers Match program aims to balance the scales of financial equity across diverse populations by addressing the savings gap mainly affecting Black and Hispanic communities. 
 
Recent findings from the BRT-RCH Saver's Match Survey shed light on how transformative this program can be. 
 
•	Over 89% of eligible savers expressed a likelihood of increasing their contributions or starting to save to receive a larger matching contribution. 
 
•	The gender distribution of eligible savers in defined contribution (DC) plans is as follows: 57.9% of eligible savers are male, while 42.1% are female. 
 
•	The survey found that Black and Hispanic-eligible savers are the most likely to benefit from the Savers Match program. 
 
Critics of the Savers Match program might raise several concerns about its implementation and effectiveness, focusing on things such as: 
 
•	Government Spending and Fiscal Responsibility 
 
•	Displacement of Existing Savings 
 
•	Complexity and Bureaucracy 
 
•	Potential for Abuse 
 
This program, however, could change the retirement prospects for millions of Americans by: 
 
•	Reducing future dependency on social programs, 
 
•	Encouraging better financial behaviors & habits, 
 
•	Using technology to remove savings barriers, & 
 
•	Having strict eligibility rules to curb abuse. 
 
These changes would improve minorities' ability to save for a stable financial future! 
 
Imagine a future where financial disparities no longer exist, where every individual, regardless of race, has equal access to retirement savings. 
 
The Savers Match program can be a stepping stone towards equality in financial well-being! 
 
How could a program like Savers Match change your approach to saving for retirement? 
 
#retirement 
#financialinclusion 
 
Image Source: BRT-RCH

Could ongoing inflationary pressures crimp your household budget? 
 
The latest release on inflation from the Labor Department reveals a steady climb in the consumer price index (CPI) last month! 
 
The March CPI showed a 0.4% monthly increase, continuing a trend of steady inflation seen in the preceding months. 
 
The all-items index has risen 3.5% over the past year, with notable increases in previous months as well. 
 
This rise is largely due to a 0.4% monthly jump in the shelter index, which has risen for 47 months in a row! 
 
Also, the gasoline index increased steeply by 1.7% last month, following a dramatic 6.4% increase before seasonal adjustment. 
 
The energy sector had a mixed performance. The energy index rose by 1.1% due to higher gasoline and electricity prices.  
 
But, this rise was partly offset by a drop in the fuel oil index. 
 
Food prices, in contrast, rose by 0.1% this month. Unlike the slight ups and downs in previous months, they have stayed stable. 
 
The core CPI, which excludes the volatile food and energy sectors, mirrored the general CPI with a 0.4% increase. 
 
This consistency in core CPI has increased over the last few months, which has led to an annual rate of core inflation at 3.8%, roughly stable compared to recent months. 
 
The breakdown within the core CPI showed a decrease in core goods prices by 0.2%. Meanwhile, core services, led by shelter, rose by 0.5%. 
 
The cost of shelter alone has surged by 5.7% over the past year. It makes up about sixty percent of the yearly rise in core CPI! 
 
In other sectors, significant annual increases were also observed in various indexes. 
 
Car insurance prices rose by 22.2%. Other notable increases were medical care, which increased by 2.2%; recreation, which increased by 1.8%; and personal care, which increased by 4.2%. 
 
These increases reflect economic pressures affecting your household budget, notably higher housing and insurance services costs. 
 
To reduce the impact of high inflation, consider strategic budgeting.  
 
For example, you can explore cheaper auto insurance options, buy groceries in bulk, and choose less expensive media subscriptions. 
 
Also, invest in stocks and assets that hold their intrinsic value as inflation rises.  
 
These maintain their pricing power as economic conditions change, providing financial stability. 
 
Talk to a financial advisor for help with your budget planning and investing strategies. 
 
How does the recent inflation data, particularly in the housing and transportation sectors, influence your current household budget planning? 
 
#inflation 
#cpi 
 
Image Source: chayanuphol via Shutterstock

Have you ever considered how an investment in the energy sector could lower the risks in your investment portfolio? 
 
Imagine tapping into an industry where innovation meets necessity—welcome to the energy sector! 
 
With the world pivoting towards sustainable solutions, this sector promises robust future growth and offers a hedge against inflation. 
 
From traditional oil and gas to burgeoning renewable sources, the diversity in energy is your ticket to higher risk-adjusted returns. 
 
Investing in the energy sector presents many profitable and pivotal benefits for sustainable development. 
 
The sector has a significant advantage because of its alignment with global energy transition trends. 
 
Governments worldwide recognize the need to fight climate change and invest in renewable energy sources. 
 
For instance, tax breaks and subsidies incentivize investments in clean energy. They aim to make wind and solar power more attractive to investors. 
 
Moreover, the financial returns from energy investments are becoming more compelling. 
 
The cost of renewable energy tech has plunged in the past decade. This change has made renewable energy more competitive with fossil fuels. 
 
For example, the price of solar energy has dropped by 85% since 2010, according to the International Energy Agency (IEA). This makes it one of the cheapest energy sources in many parts of the world. 
 
This cost reduction also applies to other renewable energy sources, such as wind and hydropower, expanding the sector's investment opportunities. 
 
Investing in the energy sector can be lucrative. However, it also has unique risks that you should understand to protect investment returns. 
 
One considerable risk comes from the natural ups and downs of energy prices. 
 
They can be affected by many unpredictable factors. These factors include political instability, changes in rules, and shifts in global supply and demand. 
 
Regulatory risks are particularly notable in the energy sector. 
 
Changes in government policies can help or hurt energy project returns. Some examples are incentives for renewable energy or penalties for carbon emissions. 
 
Additionally, physical risks related to climate change, such as extreme weather events, can disrupt energy production and supply chains, affecting future investment returns. 
 
But here's the kicker—you can mitigate the risks noted above by diversifying your portfolio across various energy types and incorporating low-risk assets like energy sector ETFs. 
 
Talk to a registered financial advisor to explore how an investment in the energy sector can fit your risk tolerance and return objectives. 
 
So, how ready are you to power up your portfolio with energy investments? 
 
#investing 
#energy 
 
Image Source: LeoWolfert via Shutterstock

We often think of estate planning using tangible assets: homes, cars, and heirlooms. 
 
But what about those intangible assets that are as crucial, if not more so? 
 
Yes, I'm talking about your 401(k) plan. 
 
Many overlook this asset in their estate planning, leaving a mess for their beneficiaries to untangle. 
 
Let's dive into why your 401(k) deserves your attention and how you can integrate it into your estate planning. 
 
Your 401(k) is more than a retirement account; it's a significant part of your financial legacy! 
 
Neglecting to include it in your estate plan could lead to: 
 
• Hefty tax penalties, 
 
• Beneficiary disputes, and 
 
• Unintended financial strain on your loved ones. 
 
Your heirs could get caught in legal disputes over unclear beneficiary designations. 
 
This situation is different from the legacy most of us envision! 
 
Withdrawals from 401(k) plans are taxed as ordinary income. 
 
If not planned well, your heirs could get big tax bills. This result is especially true if the withdrawals align with their peak earning years. 
 
Lump-sum distributions can push your beneficiaries into higher tax brackets, which may increase their financial burden. 
 
An unexpected tax hit? Certainly not the parting gift anyone would appreciate. 
 
Here are some steps to align your 401(k) with your estate goals. 
 
Identify Your Beneficiaries: This is where you start. Who do you want to benefit from your hard-earned savings? Contact your 401(k) plan administrator to name your primary and alternate beneficiaries. 
 
Seek Professional Advice: Estate planning isn't a DIY project. Consulting with a registered financial advisor can help you navigate the complexities of integrating your 401(k) into your overall estate plan. 
 
Each situation is unique. A tailored estate plan can reduce future estate taxes and help you meet your retirement goals. 
 
Review Your Plan on a Regular Basis: Life is full of changes—marriage, divorce, births, and deaths. These life events can affect your initial beneficiary designations. 
 
Review your estate plan each year. This action ensures your 401(k) will go to the right people. And it will reflect your current wishes. 
 
Think about the last time you considered your 401(k) in your estate planning. Has it been a while? It may be time for a review. 
 
So, what's your next step? 
 
Call your 401(k) plan administrator or schedule a meeting with a financial advisor to help you. 
 
The peace of mind that comes with a well-structured estate plan is priceless! 
 
Remember your 401(k) as essential to your estate plan. 
 
#401k 
#retirement 
 
Image Source: Adha Ghazali via Shutterstock

The IRS just released a new update—Notice 2024-35—covering the rules for withdrawing funds from retirement accounts in 2024. 
 
They've announced that the rules won't kick in until 2025 the earliest. 
 
This change is a big deal if you manage an inherited IRA or retirement plan. 
 
The guidance continues some recent changes regarding how to access those funds after the original account holder has passed away. 
 
The SECURE Act recently changed how long you can withdraw money from inherited retirement accounts. 
 
This change would be over your lifetime, but now there's a "ten-year rule." 
 
This rule means you need to withdraw all the funds within ten years. 
 
You must do this if the account holder dies before they can start their retirement payouts. 
 
This rule only applies to some. Particular beneficiaries, like spouses or minors, get more time. 
 
The IRS is giving some extra clarity with Notice 2024-35, especially for accounts inherited between 2020 and 2023. 
 
They're offering more flexibility, which means if you miss a withdrawal you were supposed to make, neither you nor the retirement plan will be penalized. 
 
This update clears up some confusion caused by earlier guidelines about enforcing the ten-year rule. 
 
Many beneficiaries wondered whether they needed to withdraw money every year or could wait until the ten years were up. 
 
This news was particularly confusing for people handling estates from those who died in 2020. 
 
With these clarifications and the extension of some relief through 2024, the IRS is showing that it's listening to feedback. 
 
They are adjusting their rules to make things fairer and easier to manage. 
 
Remember, significant changes are coming in January 2025, so keep your eyes peeled for the final rules. 
 
If you're in estate planning or managing retirement funds, you should stay on top of these changes. 
 
Understanding these rules can impact your financial strategies, whether you're a beneficiary, managing an estate, or giving financial advice. 
 
Talk to a financial or legal advisor who can help you adapt to this new rule to ensure your RMDs are on the right track. 
 
#rmd 
#retirement 
 
Image Source: FrankHH via Shutterstock

The latest retail sales data from the U.S. Census Bureau highlights an evolving consumer landscape! 
 
The American economy remains resilient despite higher inflation trends. 
 
March 2024's data reveals a compelling retail and food services sales rise. 
 
Retailers achieved a 0.7% increase from the previous month, reaching $709.6 billion. 
 
This growth shows a consistent upward path, following a revised 0.9% increase in February. 
 
Year over year, the retail sector has expanded by 4.0%. 
 
The first quarter of 2024 shows a commendable 2.1% growth compared to the same period in 2023. 
 
Here are three key insights from the March 2024 Retail Advanced Sales Data: 
 
1. 𝗥𝗲𝗱𝗲𝗳𝗶𝗻𝗶𝗻𝗴 𝗖𝗼𝗻𝘀𝘂𝗺𝗲𝗿 𝗣𝗿𝗶𝗼𝗿𝗶𝘁𝗶𝗲𝘀: The rise in core retail sales by 1.1% shows that the shopping priorities of U.S. consumers are changing. 
 
A notable 2.7% surge in internet retail sales signals a deeper integration of digital shopping into daily life. 
 
However, sectors like sporting goods and hobby stores observed a decline of 1.8%, indicating shifting recreational spending habits. 
 
These insights point to a broader change in consumer spending, reshaped by ongoing inflation and economic conditions. 
 
2. 𝗥𝗲𝘀𝗶𝗹𝗶𝗲𝗻𝗰𝗲 𝗶𝗻 𝘁𝗵𝗲 𝗙𝗮𝗰𝗲 𝗼𝗳 𝗨𝗻𝗮𝗱𝗷𝘂𝘀𝘁𝗲𝗱 𝗜𝗻𝗳𝗹𝗮𝘁𝗶𝗼𝗻 𝗙𝗶𝗴𝘂𝗿𝗲𝘀: Retail sales demonstrated a solid performance with a 4.0% increase compared to the same month last year. 
 
This increase suggests that consumer spending remains robust despite reduced purchasing power from inflation. 
 
Factors such as improved employment conditions and sustained economic stimulus bolstering consumer confidence and spending. 
 
3. 𝗦𝗲𝗰𝘁𝗼𝗿-𝗦𝗽𝗲𝗰𝗶𝗳𝗶𝗰 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 𝗥𝗲𝘃𝗲𝗮𝗹𝘀 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗨𝗻𝗱𝗲𝗿𝗰𝘂𝗿𝗿𝗲𝗻𝘁𝘀: The diverse performance across different retail sectors offers a window into consumer confidence. 
 
The rise in restaurant sales, though modest at 0.4%, combined with the strong performance of online retail, reflects an economy where consumer spending remains buoyant. 
 
The strength in consumer spending is vital for businesses to understand as they navigate customer engagement strategies. 
 
These insights from the latest Census Bureau Advanced Retail Sales data reflect a dynamic retail environment. 
 
The positive growth in core retail sales underscores the resilience of the U.S. consumer. 
 
Solid retail sales often predict a buoyant economic environment, influencing job security, wage growth, and investment opportunities. 
 
How might you adjust your investing strategies to fit with recent consumer trends in retail? 
 
#retailsales 
#useconomy 
 
Image Source: U.S. Census Bureau

Should you be investing in the banking sector now? 
 
Major players like J.P. Morgan Chase and Wells Fargo released their first-quarter earnings last week. The results could have been better. 
 
Investors prize bank stocks, however, for their fundamental business—lending. 
 
Banks make big profits from various loans.  
 
These include home mortgages, business financing, and auto loans.  
 
Loans like these are the backbone of big banks' assets. 
 
The quality of these loans impacts their profitability, with higher-quality loans requiring fewer reserves for potential losses. 
 
Yet, investing in banks has risks, mainly when interest rates rise. 
 
Over the last two years, interest rates have risen. 
 
Higher interest rates impact banks' profitability.  
 
Let me explain using an analogy. 
 
Imagine you run a lemonade stand. 
 
You buy lemons from your supplier on credit, meaning you'll pay them back later. 
 
Now, consider the interest rate as the cost of borrowing to buy those lemons. 
 
If the interest rate is high, it could cost a lot to borrow when buying lemons from your supplier. 
 
Thus, to make the same profit, you would need to sell more lemonade at a way higher price! 
 
Now, what happens to bank profits when interest rates go up? 
 
1. 𝗛𝗶𝗴𝗵𝗲𝗿 𝗖𝗼𝘀𝘁𝘀 𝗳𝗼𝗿 𝗕𝗼𝗿𝗿𝗼𝘄𝗶𝗻𝗴: For banks, borrowing money at higher interest rates means paying more to get the necessary funds. 
 
Banks often borrow money short-term to lend it out long-term (like giving out 30-year home mortgages). 
 
If the rates they pay to borrow money increase, their costs increase. 
 
2. 𝗦𝘁𝗿𝗶𝗰𝘁𝗲𝗿 𝗖𝗼𝗻𝘀𝘂𝗺𝗲𝗿 𝗕𝗼𝗿𝗿𝗼𝘄𝗶𝗻𝗴: When banks raise their loan interest rates (because it costs them more to get the money), people are less likely to take loans because borrowing becomes more expensive. 
 
This change means banks issue fewer loans, which can reduce the amount of money they make. 
 
3. 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗜𝗻𝗰𝗼𝗺𝗲 𝘃𝘀. 𝗘𝘅𝗽𝗲𝗻𝘀𝗲 𝗚𝗮𝗽 𝗦𝗵𝗿𝗶𝗻𝗸𝘀: Banks make money on the difference between what they charge others in interest, like for mortgages and car loans, and what they pay in interest to savers or other banks. 
 
They might have to pay more to savers or borrow money when interest rates go up. 
 
However, they might not be able to increase the interest rate they charge on their loans as quickly or as much as they'd like. 
 
Especially if they already have long-term loans at fixed interest rates! 
 
This problem squeezes their profits and margins. 
 
So, when bank profits are squeezed, it can lead to significant losses! 
 
This happens as higher interest rates lower the value of things like commercial mortgages. 
 
I would only invest in the banking sector once banks' profitability rises as interest rates fall. 
 
#investing 
#banking 
 
Image Source: Robert Way via Shutterstock

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