Many Americans dislike budgeting because it feels like deprivation. Experts suggest reframing it as "raising funds" or setting financial goals to make it more positive. Identify strategies that meet needs while saving money, such as using streaming services alternately or raising insurance deductibles. By committing to small spending reductions, you can create extra cash flow to pay down debt or save for the future.
For ex-spouses who have been married for over 10 years, Social Security rules allow them to claim benefits based on their former partner's work history. If that ex-spouse dies, the benefit value can potentially double, providing financial security for the survivor.
Investing for beginners can be simplified by choosing target-date funds, which automatically adjust investments based on age and retirement goals. Target-allocation funds and global market index funds are also accessible entry points. Despite the perception of complexity, Warren Buffett emphasizes that investing is not rocket science. Starting early with consistent savings and selecting appropriate investment options based on your long-term goals is crucial.
Inflation is slowing, which means Social Security checks may not increase as much in the future. To prepare, retirees can:
* Earmark extra cash to stash away for emergencies.
* Take advantage of higher interest rates on savings accounts and certificates of deposit.
* Review monthly expenses and cut back where possible.
* Consider investments, such as annuities, to supplement income.
* Seek guidance from a financial advisor to plan for retirement needs.
Target-date funds automatically adjust portfolios based on age and retirement goals, aiming to simplify retirement planning. Passively managed funds offer low fees but may be too conservative for younger investors. Actively managed funds can be expensive. The age-based approach may not account for individual risk tolerance, and the funds may be inflexible for complex financial situations or those seeking customization.
