Latest news with #ChrisHeerlein
Yahoo
3 days ago
- Business
- Yahoo
Why Don't Rich People Just Retire? Experts Explain
You'd think having millions in the bank would be the ultimate cue to kick back, sip something cold by the beach, and finally stop checking your email. But oddly enough, many rich people do the exact opposite –they keep working. Sometimes harder than ever. In fact, Business Insider recently reported there are many millionaires working even into their 80s. Find Out: Consider This: So what gives? Why don't the ultra-wealthy just call it quits and ride off into a golden sunset of early retirement? 'The thing that surprises most people is that having money rarely makes someone want to stop working — it usually does the opposite,' said Andrew Lokenauth, money expert and owner of BeFluentInFinance with experience working with high-net-worth clients. Here are some of the surprising reasons why money doesn't always equal a permanent vacation. Chris Heerlein, CEO of REAP Financial, works with many high-net-worth clients who could walk away tomorrow, yet choose to stay deeply involved in their businesses or careers. 'One of my clients built and sold a company in his early 50s and had more than enough to retire. But three months into retirement, he told me it felt like he lost his rhythm,' Heerlein said. The client wasn't bored; he just missed having something meaningful to push toward. Now, he consults part time, not for the paycheck, but to keep solving problems, mentoring younger founders and staying mentally sharp. Lokenauth similarly agreed, adding, '[They] love the game, the challenge, the thrill of building something. Money's just how we keep score.' Be Aware: Here's something most people don't realize, said Lokenauth — wealth often creates more opportunities that are hard to walk away from. Last March, he had the chance to invest in an exciting startup because of his network and expertise. 'Sure, I could've been sipping margaritas on a beach instead of doing due diligence, but I'd have missed out on both the intellectual challenge and the potential returns.' Lokenauth sees this with many of his clients. When you're known as the person who builds successful companies or makes smart investments, he said that becomes part of who you are. 'It's not about ego — ok, maybe a little. It's about maintaining the relationships and influence you've built over years,' Lokenauth noted. More From GOBankingRates 10 Cars That Outlast the Average Vehicle This article originally appeared on Why Don't Rich People Just Retire? Experts Explain
Yahoo
4 days ago
- Business
- Yahoo
5 Things the Middle Class Won't Be Able To Afford After 4 Years of Tariffs
The Trump administration is implementing tariffs on virtually every country from which the United States imports items. This shift means consumers will be spending a lot more money on everyday goods. By the end of Trump's term, many things could become unaffordable to the middle class. Be Aware: Find Out: It will be helpful for the middle class to understand what's coming, so they can better prepare and adjust for it. To that end, GOBankingRates interviewed a few experts for insight. There's a reason this one might not kick in immediately. Appliances aren't items people need to buy every day, every month or even every year. By the time Trump's term ends, the middle class may realize that appliances have simply become unaffordable. 'Appliances like refrigerators, washers and dryers could jump in price,' said Chris Heerlein, CEO of REAP Financial. 'Many parts are imported, so even if the final product is assembled in the U.S., tariffs on components raise the total cost.' So, while the middle class may not feel the immediate impact, and indeed they may still be able to buy their next washer, dryer or refrigerator in just a few years, they will no longer be 'affordable' items. The middle class will now have to save up, pull money out of investments, or buy used. That's not something they're used to, and we may see a backlash as a result. Read Next: Electronics are a lot like appliances. Again, they're often not an absolute necessity. They're not daily items. Most people can function with their smartphones or laptops for several years. And because most electronics come from outside the U.S., the financial hit will be a big one on these already high-priced items. 'Electronics like smartphones and laptops are also at risk. These aren't luxury items anymore; they're tools for work and school,' Heerlein said. 'I've worked with families who had to delay school tech upgrades because the cost pushed them outside of what they could pay upfront. If tariffs continue, these kinds of purchases will move from essential to unaffordable for many middle-class households.' If they're already unaffordable, tariffs on these items may affect the middle class a few years from now in a big way. Inflation has already seen a steep incline in the price of vehicles, even used ones. What once was $20,000 is now $30,000, and what once was $30,000 is now $50,000. It's getting to the point where younger people are moving into cities and avoiding purchasing a vehicle altogether. And that was before the tariffs. Now, tariffs on imported cars are going to become pricier than ever. Even domestic cars will see price hikes because commodities like steel and aluminum, the materials used to make the cars, are going to become more expensive to import. 'The combination of steel and aluminum tariffs, as well as the supply chains that rely heavily on outsourcing, will potentially make the purchase of new automobiles cost-prohibitive for many Americans. It is likely that many Americans will hold onto their vehicles longer or purchase used cars as an alternative,' explained Dr. Brandon Parsons, an economist at Pepperdine Graziadio Business School. As a result of this enormous shift, the American automobile industry may falter significantly with fewer domestic consumers and foreign markets uninterested in buying American. Much like automobiles, new homes are going to become much more expensive to build. Wood, metal and other materials will be cost-prohibitive, which means housing prices are going to skyrocket once again. 'The cost of buying a new home will go up since many of the products that go into new homes, such as metal and wood, are exposed to tariffs,' Parsons noted. The housing market is already ridiculously overpriced and unaffordable to even the wealthiest middle-class families. The American Dream that imagines homeownership as essential is likely going to be dead within a decade if things don't turn around. Seann Malloy, founder and managing partner at Malloy Law Offices, reminds us there are smaller, everyday items that will quickly become unaffordable to the middle class, as well. The middle class has gotten to the point in life where they can enjoy the finer things in life, like good wine, coffee, seafood, and even the finest olive oil. Yes, those items may be a bit more expensive, but now they're within reach for the middle class. But Malloy said that won't last. 'Taxing imports of things like seafood and coffee could mean significantly higher grocery bills. According to the Center for American Progress, middle-income households are set to lose between $2,500 to $3,900 a year,' he explained. 'Stock up on non-perishables and explore local farmers' markets to mitigate costs.' Is there a way out? Yes, of course there is. Middle-class families could start living well below their means and prepare for an economy that won't allow for the usual items to be affordable anymore. You may need to buy a less expensive, smaller home. Perhaps you'll need to cut corners in luxury items, and you may even have to buy a used appliance or a refurbished computer. More From GOBankingRates How Much Money Is Needed To Be Considered Middle Class in Every State? This article originally appeared on 5 Things the Middle Class Won't Be Able To Afford After 4 Years of Tariffs
Yahoo
11-06-2025
- Business
- Yahoo
4 Non-Emergencies Where a Personal Loan Makes Sense
Not every financial need is a full-blown emergency. Sometimes, life just throws you a curveball — or an opportunity — and you need a little extra cash to handle it smoothly. Read More: Find Out: That's where a personal loan can come in handy. From covering big life moments to tidying up your finances — here are some non-emergencies where taking out a personal loan might actually make a lot of sense. According to Lending Tree, Americans have an absolute mountain of credit card debt — $1.18 trillion, to be exact. Chris Heerlein, CEO of REAP Financial, noted that a personal loan can make sense when used to consolidate high-interest credit card debt. He worked with a client carrying multiple cards with rates above 20%. 'We used a personal loan with a lower fixed rate to wipe that out,' said Heerlien. It immediately reduced their monthly interest burden and simplified their payments into one. It wasn't an emergency, but it gave them breathing room and helped improve their credit score over time. Dennis Shirshikov, professor of finance at City University of New York and head of growth and engineering at Growth Limit, similarly agreed. He said that among the most common overlooked examples is taking out a personal loan to pay off higher-interest credit card debt. What's frequently overlooked is that the psychological effect of going from multiple high-interest revolving uses of debt to a single fixed monthly payment can be transformative. 'It's not just a loan, you're not just refinancing — you're resetting your theoretical money model,' said Shirshikov. Discover Next: According to Shirshikov, most traditional banks will not issue a business loan for a $5,000 idea, but a personal loan can be a bridge within reach. He's personally seen new entrepreneurs borrow small sums to purchase equipment or inventory for their Amazon FBA (Fulfillment by Amazon), mobile detailing business or Etsy storefront. 'The trick is to see the loan as a short-term shot in the arm, not a crutch,' he said. Another example? Medical procedures that are not emergencies but are life-altering. Think dental implants or fertility services. These aren't luxuries; they're delayed necessities that don't easily come under insurance coverage. Personal loans, Shirshikov explained, especially those with clearly defined repayment terms, can give people the chance to take charge of their health without capsizing their financial lives. Even spending money on professional development — like an executive master of business administration (M.B.A.) class, a coding boot camp, or a specialized certificate — may be reasonable. 'You're borrowing against your future earning potential, essentially, and when the return on investment (ROI) is clear, the math usually adds up,' said Shirshikov. More From GOBankingRates 7 Luxury SUVs That Will Become Affordable in 2025 This article originally appeared on 4 Non-Emergencies Where a Personal Loan Makes Sense Sign in to access your portfolio
Yahoo
27-05-2025
- Business
- Yahoo
6 Financial Traps Middle Class People Fall Into in Their 20s
Your 20s are a wild ride. You're figuring out how to adult, maybe landing your first 'real' job, juggling student loans and trying to fit the occasional impulse Amazon buy into your budget. Learn More: Try This: You might feel like you're making progress, especially if you're not living paycheck to paycheck. But even middle-class folks with steady incomes can fall into some sneaky financial traps when they're young that don't show up on their bank statements until years later. Here's a look at the ones to watch out for — before they quietly drain your future wealth. According to Chris Heerlein, CEO of REAP Financial, one prevalent financial trap for 20-somethings is living beyond their means. It's easy to get caught up in a lifestyle of consumerism, especially with the influence of social media, which often shows a curated version of success. Many individuals in their 20s may even rely on credit cards or loans to fund unnecessary purchases, like expensive dining out, luxury clothing or gadgets. Heerlein noted the immediate gratification of buying what you want can quickly spiral into debt that becomes harder to manage as time goes on. 'My advice here is to live within your means by creating a budget, tracking your spending and prioritizing saving over consumption.' Remember: It's important to build a cushion with an emergency fund and focus on paying down high-interest debts, like credit card balances, before spending on non-essentials. For You: 'Too many young adults neglect to save for a rainy day, thinking they will not have any unexpected expenses,' said Kevin Shahnazari, founder and CEO of FinlyWealth. A January U.S. News survey found that 42% of Americans don't have an emergency fund, with nearly as many (40%), saying they couldn't cover a $1,000 emergency expense with cash or savings. Even modest financial shocks can lead to debt accumulation or delayed payments without a cash cushion. Ideally, a three- to six-month cushion of living costs should be saved before investing or purchasing big-ticket items. Shahnazari said being uninformed about credit, which can lead to maxing out credit cards or paying only minimum payments, can result in negative credit scores and interest payments. To use credit wisely, he said one must keep credit balances low, pay them in full when feasible and check credit reports to catch errors or fraud before they become big problems. You can access your credit report for free weekly at or annually through the major credit bureaus — Experian, Equifax and TransUnion. This is a major misstep. Saving for retirement may feel abstract in your 20s, but compounding growth over the long term is incredibly potent, said Shahnazari. Delaying 401(k) or IRA contributions will cost you thousands in the long term. Saving small, consistent contributions can make you a millionaire in the long term. Student loan debt is a fact of life for many, but Shahnazari said sliding into minimum payments without a payoff strategy can lengthen debt terms unnecessarily. Keep in mind that refinancing, income-driven repayment or accelerated payoff plans can be money- and stress-saving. Many 20-somethings lack the financial literacy they need to make smart choices about loans, investing and taxes. Taking the time to learn about finance — through classes, books or planners — empowers you to make smarter money decisions. The solution to evading these traps, Shahnazari explained, is careful money management, planning and continued money education. 'The earlier adults get established in these practices, the better positioned they will be to handle their finances,' he said. More From GOBankingRates These Cars May Seem Expensive, but They Rarely Need Repairs This article originally appeared on 6 Financial Traps Middle Class People Fall Into in Their 20s Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-05-2025
- Business
- Yahoo
6 Financial Traps Middle Class People Fall Into in Their 20s
Your 20s are a wild ride. You're figuring out how to adult, maybe landing your first 'real' job, juggling student loans and trying to fit the occasional impulse Amazon buy into your budget. Learn More: Try This: You might feel like you're making progress, especially if you're not living paycheck to paycheck. But even middle-class folks with steady incomes can fall into some sneaky financial traps when they're young that don't show up on their bank statements until years later. Here's a look at the ones to watch out for — before they quietly drain your future wealth. According to Chris Heerlein, CEO of REAP Financial, one prevalent financial trap for 20-somethings is living beyond their means. It's easy to get caught up in a lifestyle of consumerism, especially with the influence of social media, which often shows a curated version of success. Many individuals in their 20s may even rely on credit cards or loans to fund unnecessary purchases, like expensive dining out, luxury clothing or gadgets. Heerlein noted the immediate gratification of buying what you want can quickly spiral into debt that becomes harder to manage as time goes on. 'My advice here is to live within your means by creating a budget, tracking your spending and prioritizing saving over consumption.' Remember: It's important to build a cushion with an emergency fund and focus on paying down high-interest debts, like credit card balances, before spending on non-essentials. For You: 'Too many young adults neglect to save for a rainy day, thinking they will not have any unexpected expenses,' said Kevin Shahnazari, founder and CEO of FinlyWealth. A January U.S. News survey found that 42% of Americans don't have an emergency fund, with nearly as many (40%), saying they couldn't cover a $1,000 emergency expense with cash or savings. Even modest financial shocks can lead to debt accumulation or delayed payments without a cash cushion. Ideally, a three- to six-month cushion of living costs should be saved before investing or purchasing big-ticket items. Shahnazari said being uninformed about credit, which can lead to maxing out credit cards or paying only minimum payments, can result in negative credit scores and interest payments. To use credit wisely, he said one must keep credit balances low, pay them in full when feasible and check credit reports to catch errors or fraud before they become big problems. You can access your credit report for free weekly at or annually through the major credit bureaus — Experian, Equifax and TransUnion. This is a major misstep. Saving for retirement may feel abstract in your 20s, but compounding growth over the long term is incredibly potent, said Shahnazari. Delaying 401(k) or IRA contributions will cost you thousands in the long term. Saving small, consistent contributions can make you a millionaire in the long term. Student loan debt is a fact of life for many, but Shahnazari said sliding into minimum payments without a payoff strategy can lengthen debt terms unnecessarily. Keep in mind that refinancing, income-driven repayment or accelerated payoff plans can be money- and stress-saving. Many 20-somethings lack the financial literacy they need to make smart choices about loans, investing and taxes. Taking the time to learn about finance — through classes, books or planners — empowers you to make smarter money decisions. The solution to evading these traps, Shahnazari explained, is careful money management, planning and continued money education. 'The earlier adults get established in these practices, the better positioned they will be to handle their finances,' he said. More From GOBankingRates These Cars May Seem Expensive, but They Rarely Need Repairs This article originally appeared on 6 Financial Traps Middle Class People Fall Into in Their 20s
