Latest news with #Lokenauth
Yahoo
4 days ago
- Business
- Yahoo
6 Middle-Class Hacks To Shield Your Finances From the Trump vs. Musk Policy Chaos
President Donald Trump and Elon Musk have followed through on their promise to shake things up, but so far the policies have been changing at a head-spinning rate. And while Musk has since departed from the Department of Government Efficiency (DOGE), some of his actions still have impact. And he's still at the helm of Tesla, so any moves there could also impact the stock market. From tariffs and a controversial budget proposal to federal workforce reduction, healthcare and public service funding cuts, and Tesla's instability, Trump and Musk have created market uncertainty. Read Next: Explore More: Navigating through turbulent times requires proactive planning. To shield your finances, here are six middle-class hacks to help, according to experts. Also see three things DOGE did in Trump's first 100 days and how they affected your wallet. Those in the middle class could be experiencing some financial headaches right now, and while it's not all controllable, there are things they can do to try to offset the chaos. 'Build a strong emergency fund, diversify your savings and avoid chasing every hot headline,' saidDanny Ray, founder of PinnacleQuote. 'In fact, smart tax planning today could shield you from costly surprises tomorrow. Furthermore, keeping high-interest debt low gives you flexibility no matter how the political winds blow.' Overall, steady, disciplined financial habits are your best defense amid market chaos. Check Out: The policy changes that have been enacted have also impacted experienced money experts. Andrew Lokenauth, a finance expert with Fluent in Finance, said he's focused on index funds, which have been his go-to to protect his assets. 'I moved about 60% of my portfolio into broad-market ETFs — they're way less sensitive to individual company drama,' he explained. 'The results speak for themselves: My balanced index approach stayed steady through five major Musk-triggered market dips.' Many index funds are low-cost as well, so they're not out of reach for middle-class investors. Investing in stablecoins is another key move Lokenauth has made. Stablecoins are a type of cryptocurrency that is designed to keep a stable value by attaching market value to an external asset, like gold or the U.S. dollar. 'Converting some crypto holdings to USDC or USDT helps dodge the worst of the volatility,' Lokenauth said. 'Last spring, this saved my portfolio when Bitcoin dropped 12% after a particularly chaotic Trump speech about crypto regulation.' Another middle-class hack Lokenauth is using is spreading money across multiple banks. 'I keep my cash distributed between three different institutions — traditional banks, online banks and credit unions,' he explained. 'This strategy protected my emergency fund during the regional banking mess.' I bonds have a set interest rate for a six-month period and adjust every six months based on inflation. They can be sold after a year, but if you sell before you've held on to them for five years, you will lose three months' worth of interest, per Treasury Direct. They have a $25 purchase minimum, so you don't need a lot of money to get started. Treasury Inflation-Protected Securities (TIPS) are sold for a five-, 10- or 30-year term. They pay out interest every six months, and the principal can go up or down over the term length. You can also sell them before they mature or hold off to get the full benefit. Both are government-backed and some of Lokenauth's favorite financial protections right now. 'They're completely disconnected from both Trump and Musk's spheres of influence,' he said. 'The current rates aren't amazing … but I sleep better knowing a chunk of my savings is untouchable by their antics.' Lokenauth explained that this is a simple way to avoid market chaos. 'The psychology behind this approach is simple — government securities don't care about Twitter drama or policy theatrics,' he said 'When I shifted $20K into I-bonds, that portion of my portfolio stopped dancing to their tune completely.' A local real estate investment trust (REIT) is a company that owns income-generating properties in specific regions that people can invest in, and they could be a good option for middle-class investors. According to Lokenauth, local market REITs can provide fantastic insulation from national chaos. 'I've invested in several small-market residential REITs that focus on middle-income housing,' he said. The key is picking REITs that operate in stable regional markets. 'My Midwest-focused REIT actually gained 8% while tech stocks were getting hammered by the Tesla roller coaster,' Lokenauth said. 'Local real estate fundamentals tend to ignore the national noise.' Amid market chaos, developing a solid strategy is vital in protecting your money. 'The goal isn't to get rich quick — it's about building a fortress around your finances that these policy swings can't penetrate,' Lokenauth said. 'My approach has helped my clients maintain steady growth despite all the chaos.' Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard Are You Rich or Middle Class? 8 Ways To Tell That Go Beyond Your Paycheck 4 Housing Markets That Have Plummeted in Value Over the Past 5 Years This article originally appeared on 6 Middle-Class Hacks To Shield Your Finances From the Trump vs. Musk Policy Chaos Sign in to access your portfolio
Yahoo
12-06-2025
- Business
- Yahoo
3 Surprising Financial Benefits of Unretiring (It's More Than Just a Salary)
Retirement isn't always the final chapter — sometimes it's just a pause. One survey conducted by T. Rowe Price, found that millions of retirees have returned to work in search of financial and emotional benefits. Whether you miss the structure, the sense of purpose, or want to boost your bank account, more people are choosing to 'unretire' and reenter the workforce. And it turns out, the financial upsides go far beyond a steady paycheck. Explore More: Read Next: 'I've seen so many compelling benefits from unretiring in my work with clients — and experienced them myself,' said Andrew Lokenauth, money expert and owner of BeFluentInFinance. 'The money aspect goes way deeper than just getting a paycheck.' Here are some other surprising benefits of unretiring that might make you rethink staying on the sidelines. Plus discover several signs you should unretire this year. Chris Heerlein, CEO of REAP Financial, said working part-time or consulting can often provide access to employer-sponsored health insurance, reducing the need to purchase expensive private plans or rely on Medicare. Additionally, staying physically and mentally active is linked to lower healthcare expenses, as retirees who remain engaged in work tend to experience fewer health problems, keeping their overall costs lower. 'Let me tell you about my client Sarah. She went back to consulting work after two years of retirement and saw her healthcare costs drop by [over] $400 per month,' said Lokenauth. Just by staying mentally engaged and physically active at work, he said she needed fewer medications and doctor visits. And she's not alone. He's consistently noticed that working retirees tend to have lower medical expenses. Check Out: The tax benefits are pretty significant, too. When Lokenauth unretired, he was able to keep contributing to his Roth IRA since he had earned income again. 'Plus, delaying Social Security meant my monthly benefits grew about 8% each year,' he added. The compound effect really adds up. Working just a few extra years can open up more tax-efficient strategies that aren't available once you're fully retired — and those perks can stretch your savings a lot further down the line. By earning income, retirees can reduce the amount they need to withdraw from their savings, allowing those funds to last longer. This extended longevity of retirement assets, according to Heerlein, can make a huge difference over time, especially as longer lifespans and unexpected medical expenses increase the financial burden on retirees. 'The ability to contribute even a small amount to savings while still working part-time can help balance finances and provide peace of mind,' he said. Beyond the financial benefits, Heerlein noted that staying engaged in work can have emotional and social advantages that reduce potential future costs. Remaining active in a work environment helps reduce isolation and contributes to a better overall mental health, which can lead to fewer medical issues and reduced spending on healthcare. 'Staying engaged in work is not only financially beneficial but also supports a healthier, more fulfilling retirement,' Heerlein added. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 6 Hybrid Vehicles To Stay Away From in Retirement Here's the Minimum Salary Required To Be Considered Upper Class in 2025 This article originally appeared on 3 Surprising Financial Benefits of Unretiring (It's More Than Just a Salary) Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
27-05-2025
- Business
- Yahoo
5 Surprisingly Great Assets Retirees Don't Think To Invest In
You may be thinking beyond the traditional investment opportunities, such as stocks and bonds, when looking for options during retirement. While those can provide solid returns, there may be lots of other options to consider. Be Aware: Find Out: Some financial experts shared with GOBankingRates their recommendations for assets that may be worth a look. Kevin Estes, CFP, founder of Scaled Finance, recommended home upgrades. He said they may be worth the hassle and cost and provide a positive return on investment. Estes also said adding an accessory dwelling unit could generate rental income and improve the property's value. Learn More: Another option that could be considered is startup investments. 'Investing in a small business or local startup could be a good investment,' Estes said. 'While there's certainly risk, a retiree may improve the odds by sharing their connections, experience and other resources.' According to Andrew Lokenauth, a money expert from Fluent in Finance, luxury watches have been one of his favorite recommendations lately. 'I suggest looking beyond the obvious choices to smaller watchmakers,' Lokenauth said. 'These pieces typically appreciate 5% to 10% annually, and they're a blast to collect. One of my clients started with a $15,000 piece and has built an impressive collection worth over $100,000.' Lokenauth called rare coins 'hidden gems.' 'I'm talking about specific niches like early American copper coins or certain mint errors. The key is specializing — I've got clients who've seen 15% to 20% returns by focusing on particular series or years,' he said. 'A client's time horizon, cash flow constraints and risk tolerance guide the appropriate mix of assets for their investment portfolio,' said Marguerita Cheng, CFP, CEO of Blue Ocean Global Wealth. 'Sometimes clients may neglect to include emerging markets, international or small cap stocks in their portfolio because these asset classes are perceived to be too risky or volatile.' In addition, Cheng said commodities can be valuable additions to an investment portfolio and serve as an inflation hedge. More From GOBankingRates 25 Places To Buy a Home If You Want It To Gain Value This article originally appeared on 5 Surprisingly Great Assets Retirees Don't Think To Invest In
Yahoo
21-05-2025
- Business
- Yahoo
8 Money Traps Millennials Fell For That Gen Z Avoids
When it comes to money, every generation learns a few lessons the hard way. Millennials came of age during recessions, a student loan crisis and the peak of avocado toast culture –racking up financial missteps along the way. Learn More: Consider This: According to Chris Heerlein, CEO of REAP Financial, millennials face significant challenges due to student loan debt, rising living costs and stagnant wages. Many entered the workforce during the Great Recession, leading to high debt burdens while trying to save for retirement and major life goals. He explained that these financial pressures are compounded by the increasing cost of healthcare and the difficulty of securing affordable housing, making long-term financial stability harder to achieve. But Gen Z? They're approaching money with a whole different mindset. From credit card chaos to housing headaches, here are the money traps millennials fell into that Gen Z is (so far) smartly sidestepping. According to the Education Data Initiative, millennials have the largest share of total student loan debt despite a declining average balance. Andrew Lokenauth, money expert and owner of BeFluentInFinance, has watched countless millennial clients struggle under crushing student loans — we're talking over $50,000 for degrees that didn't deliver the promised returns. He said his millennial clients often tell him they felt pressured to attend expensive schools because 'that's just what you did. 'But Gen Z. Man, they're different. I'm seeing them choose community college first, then transfer to state schools.' Or they're pursuing trade schools and certifications — smart moves that'll save them thousands. Read Next: According to Lokenauth, back in the day, millennials bought into this toxic 'hustle culture' mindset –burning themselves out working three to four gigs just to stay afloat. 'I still remember one client who was juggling a full-time marketing job, driving Uber at night and selling stuff on eBay,' he recounted. 'She was exhausted.' Gen Z, on the other hand, seems more focused on building actual sustainable businesses or investing in skills that'll boost their main career trajectory. They're playing the long game. 'Here's something that makes me angry: Millennials got absolutely destroyed by housing market timing,' said Lokenauth. Many graduated into the 2008 recession, couldn't buy when prices were low, then got priced out when the market recovered. Meanwhile, Gen Z is exploring creative housing solutions like house hacking and co-living arrangements. Plus, he said they're way more comfortable staying at home longer to build savings. Less stigma about it. After watching their parents lose retirement savings in 2008, many millennials developed this intense fear of the market. 'I can't tell you how many kept their money in savings accounts earning 0.01%,' Lokenauth noted. Gen Z, however, started investing through apps like Robinhood super early. Sure, some made rookie mistakes with meme stocks, but they're not afraid to put money to work in the market. Lokenauth said this one hits close to home as he's had many millennial clients with more than $20,000 in credit card debt from trying to maintain lifestyles they couldn't afford. 'Social media pressure was real,' the expert said. Gen Z seems more minimalist and intentional about spending. They're using buy-now-pay-later services more strategically and generally seem less interested in flexing material goods. Millennials often got stuck in dead-end jobs thinking they had to 'pay their dues.' Lokenauth said he spent five years doing this himself early in his career. 'What a waste,' he remarked. Gen Z understands job-hopping isn't bad and they're way better at leveraging their skills for higher pay. They're also more likely to start online businesses or monetize their talents directly. Through his practice, Lokenauth has noticed millennials often prioritized retirement savings over emergency funds — then got crushed when emergencies hit. Whereas, Gen Z watched this play out and tends to build cash reserves first. They've seen how quickly things can go sideways and want that safety net. Many millennials fell into the trap of increasing spending whenever their income went up. Lokenauth recalls one client who upgraded his apartment, car and wardrobe right after a promotion –then lost his job six months later. Gen Z tends to be more conscious about lifestyle creep and often maintains their basic living standards even as income grows. 'The thing is, millennials weren't dumb — they just faced some truly awful timing and received guidance that didn't match economic realities,' Lokenauth emphasized. Meanwhile, Gen Z had the advantage of watching and learning from these struggles. And from what Lokenauth has seen working with both generations, they're putting those lessons to good use. More From GOBankingRates 10 Cars That Outlast the Average Vehicle Sources REAP Financial, 'Who We Are: Our Financial Planning Team.' Education Data Initiative, 'Student Loan Debt by Generation.' BeFluentInFinance, 'About Us.' This article originally appeared on 8 Money Traps Millennials Fell For That Gen Z Avoids Sign in to access your portfolio
Yahoo
21-05-2025
- Business
- Yahoo
8 Money Traps Millennials Fell For That Gen Z Avoids
When it comes to money, every generation learns a few lessons the hard way. Millennials came of age during recessions, a student loan crisis and the peak of avocado toast culture –racking up financial missteps along the way. Learn More: Consider This: According to Chris Heerlein, CEO of REAP Financial, millennials face significant challenges due to student loan debt, rising living costs and stagnant wages. Many entered the workforce during the Great Recession, leading to high debt burdens while trying to save for retirement and major life goals. He explained that these financial pressures are compounded by the increasing cost of healthcare and the difficulty of securing affordable housing, making long-term financial stability harder to achieve. But Gen Z? They're approaching money with a whole different mindset. From credit card chaos to housing headaches, here are the money traps millennials fell into that Gen Z is (so far) smartly sidestepping. According to the Education Data Initiative, millennials have the largest share of total student loan debt despite a declining average balance. Andrew Lokenauth, money expert and owner of BeFluentInFinance, has watched countless millennial clients struggle under crushing student loans — we're talking over $50,000 for degrees that didn't deliver the promised returns. He said his millennial clients often tell him they felt pressured to attend expensive schools because 'that's just what you did. 'But Gen Z. Man, they're different. I'm seeing them choose community college first, then transfer to state schools.' Or they're pursuing trade schools and certifications — smart moves that'll save them thousands. Read Next: According to Lokenauth, back in the day, millennials bought into this toxic 'hustle culture' mindset –burning themselves out working three to four gigs just to stay afloat. 'I still remember one client who was juggling a full-time marketing job, driving Uber at night and selling stuff on eBay,' he recounted. 'She was exhausted.' Gen Z, on the other hand, seems more focused on building actual sustainable businesses or investing in skills that'll boost their main career trajectory. They're playing the long game. 'Here's something that makes me angry: Millennials got absolutely destroyed by housing market timing,' said Lokenauth. Many graduated into the 2008 recession, couldn't buy when prices were low, then got priced out when the market recovered. Meanwhile, Gen Z is exploring creative housing solutions like house hacking and co-living arrangements. Plus, he said they're way more comfortable staying at home longer to build savings. Less stigma about it. After watching their parents lose retirement savings in 2008, many millennials developed this intense fear of the market. 'I can't tell you how many kept their money in savings accounts earning 0.01%,' Lokenauth noted. Gen Z, however, started investing through apps like Robinhood super early. Sure, some made rookie mistakes with meme stocks, but they're not afraid to put money to work in the market. Lokenauth said this one hits close to home as he's had many millennial clients with more than $20,000 in credit card debt from trying to maintain lifestyles they couldn't afford. 'Social media pressure was real,' the expert said. Gen Z seems more minimalist and intentional about spending. They're using buy-now-pay-later services more strategically and generally seem less interested in flexing material goods. Millennials often got stuck in dead-end jobs thinking they had to 'pay their dues.' Lokenauth said he spent five years doing this himself early in his career. 'What a waste,' he remarked. Gen Z understands job-hopping isn't bad and they're way better at leveraging their skills for higher pay. They're also more likely to start online businesses or monetize their talents directly. Through his practice, Lokenauth has noticed millennials often prioritized retirement savings over emergency funds — then got crushed when emergencies hit. Whereas, Gen Z watched this play out and tends to build cash reserves first. They've seen how quickly things can go sideways and want that safety net. Many millennials fell into the trap of increasing spending whenever their income went up. Lokenauth recalls one client who upgraded his apartment, car and wardrobe right after a promotion –then lost his job six months later. Gen Z tends to be more conscious about lifestyle creep and often maintains their basic living standards even as income grows. 'The thing is, millennials weren't dumb — they just faced some truly awful timing and received guidance that didn't match economic realities,' Lokenauth emphasized. Meanwhile, Gen Z had the advantage of watching and learning from these struggles. And from what Lokenauth has seen working with both generations, they're putting those lessons to good use. More From GOBankingRates 10 Cars That Outlast the Average Vehicle Sources REAP Financial, 'Who We Are: Our Financial Planning Team.' Education Data Initiative, 'Student Loan Debt by Generation.' BeFluentInFinance, 'About Us.' This article originally appeared on 8 Money Traps Millennials Fell For That Gen Z Avoids Sign in to access your portfolio
