Finance
How to know you’re on track with your retirement savings, according to a financial expert
![How to know you’re on track with your retirement savings, according to a financial expert](https://image.cnbcfm.com/api/v1/image/107135114-1665771272677-gettyimages-1410086363-nok_7174.jpeg?v=1669068054&w=1920&h=1080)
Investing cash for retirement may be daunting, particularly since it is common for future retirees to fret about whether or not or not they will manage to pay for to final them by way of their golden years.
There are a couple of guidelines of thumb on the market geared toward serving to you determine the place stage you are at within the retirement financial savings. One evaluation discovered that you must have not less than your annual wage saved up by age 30 to be on observe to retire by age 67. And by age 40, you must have 3 times your annual wage saved.
One other technique makes use of the 4% rule to assist people calculate their retirement quantity — you’d simply multiply your yearly bills by 25 to search out an “finish objective” for the way a lot cash you want earlier than you possibly can retire with sufficient cash to final you 30 years.
However earlier than you attempt to begin calculating numbers, there’s one other vital solution to observe your retirement financial savings progress — and it is most likely the primary technique you must flip to. Liz Sheehan, the Senior Vice President of Wealth Administration at UBS, recommends arising with a monetary plan when beginning to consider retirement.
“Sadly, there isn’t any shortcut,” Sheehan says. “A complete monetary plan is the easiest way for somebody to know if they’re on observe.”
A monetary plan can provide you a transparent concept of which areas you are already hitting your objectives in and which of them it’s good to deal with extra. A part of arising with a correct monetary plan means getting clear on the belongings you want to do and need to do as you’re employed towards retirement. For example, if you already know you need to journey the world in retirement, you may want much more cash to drift these journey bills in comparison with an occasion the place your best retirement seems to be extra like downsizing and transferring to a low value of residing space.
In response to Sheehan, there are a couple of questions you must contemplate when arising with clear objectives and a plan round retirement:
- How do you envision your life and your loved ones in 10 years? 20 years? 30 years?
- If you did not have to work, how would you spend your time?
- What would you want to perform along with your wealth?
- Are there any monetary issues you will have that you desire to addressed by way of the monetary planning course of? (I.e. Do you need to purchase a house and/or pay to your kid’s faculty)
In fact, planning for retirement is extra than simply determining how a lot cash to take a position every month. You may additionally need to contemplate different areas of potential change you possibly can encounter in life.
“Monetary planning goes past fundamental budgeting and evaluates matters akin to insurance coverage planning, legal responsibility administration and property planning,” Sheehan says. A monetary plan must also embody asset allocation overview, training planning for youngsters (together with pay for school tuition), charitable planning and insurance coverage evaluation, she explains additional.
In fact, you do not have to attempt to reply all these questions and situations by yourself. A monetary planner may help you navigate the method no matter what stage of life you are in. You may also focus on what instruments is likely to be finest so that you can use to achieve your objectives. For example, robo-advisors, like Wealthfront and Betterment, robotically regulate your funding portfolio allocation relying in your objectives and threat tolerance, so this is likely to be a strong suggestion for somebody who needs a extra hands-off, however nonetheless personalized, strategy to retirement investing.
Wealthfront
On Wealthfront’s safe website
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Minimal deposit and steadiness
Minimal deposit and steadiness necessities could fluctuate relying on the funding automobile chosen. $500 minimal deposit for funding accounts
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Charges
Charges could fluctuate relying on the funding automobile chosen. Zero account, switch, buying and selling or fee charges (fund ratios could apply). Wealthfront annual administration advisory payment is 0.25% of your account steadiness
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Bonus
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Funding autos
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Funding choices
Shares, bonds, ETFs and money. Further asset courses to your portfolio embody actual property, pure assets and dividend shares
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Academic assets
Provides free monetary planning for school planning, retirement and homebuying
Betterment
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Minimal deposit and steadiness
Minimal deposit and steadiness necessities could fluctuate relying on the funding automobile chosen. For instance, Betterment does not require purchasers to take care of a minimal funding account steadiness, however there’s a ACH deposit minimal of $10. Premium Investing requires a $100,000 minimal steadiness.
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Charges
Charges could fluctuate relying on the funding automobile chosen. For Betterment Digital Investing, 0.25% of your fund steadiness as an annual account payment; Premium Investing has a 0.40% annual payment
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Bonus
As much as $5,000 managed free for a yr with a qualifying deposit inside 45 days of signup. Legitimate just for new particular person funding accounts with Betterment LLC
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Funding autos
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Funding choices
Shares, bonds, ETFs and money
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Academic assets
Betterment provides retirement and different training supplies
Phrases apply. Doesn’t apply to crypto asset portfolios.
“Monetary planning is a course of, it isn’t one thing that’s achieved as soon as in isolation and by no means revisited,” Sheehan explains. “I recommend that purchasers revisit their monetary plan yearly, or throughout each life change.”
Backside line
A monetary plan is among the most vital methods you should use to determine whether or not or not you are on observe along with your retirement objectives, for the reason that plan encompasses each qualitative and quantitative features of your objectives. If you do not know begin making a monetary plan or what ought to even go into your monetary plan, an advisor or monetary planner will be capable of assist.
Editorial Be aware: Opinions, analyses, evaluations or suggestions expressed on this article are these of the Choose editorial employees’s alone, and haven’t been reviewed, authorized or in any other case endorsed by any third occasion.
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Finance
California high schools will require personal finance course for graduation under new bill
![California high schools will require personal finance course for graduation under new bill](https://newsroom.ocde.us/wp-content/uploads/2021/09/CA-state-capitol-1024x643.jpg)
Beginning with the graduating class of 2031, high school students in California will be required to complete one semester of a personal finance course before receiving their diplomas.
On Thursday, Gov. Gavin Newsom signed legislation to require personal finance education for high school graduates after the state Senate and Assembly passed Assembly Bill 2927. This makes California the 26th state to require finance-related instruction for graduating high school seniors.
The standalone course, which would teach students to expand their financial literacy through topics like minimizing bank fees and managing credit scores, would be offered early as the 2027-28 school year.
“Our young people need and deserve a clear understanding of personal finance so that they can make educated financial choices and build stable, successful futures for themselves and their future families,” State Superintendent Tony Thurmond said in a press release. “By adding personal finance to our high school graduation requirements, we acknowledge that managing household finances and building financial stability are essential life skills.”
Superintendent Thurmond, who sponsored the bill, said that “every child should have the opportunity to build these essential skills before navigating adult financial choices.” The content considered for the personal finance curriculum would also include budgeting principles, investment options and consumer protection awareness.
High schoolers may be able to substitute the new personal finance course for their semester-long economics course, which is currently required for graduation throughout the state. School districts and charter schools may also provide students the option to complete a yearlong course to further expand their financial literacy.
In order to enhance the creation of this curriculum, State Superintendent Thurmond announced efforts in March to build a personal finance task force that would support the implementation of these required courses for K-12 students throughout California.
Superintendent Thurmond and the California Department of Education plan to work with education experts from the Instructional Quality Commission to develop a curriculum guide and resources, expected to be adopted in 2026.
Finance
There’s one critical part of employee wellbeing that bosses are forgetting
![There’s one critical part of employee wellbeing that bosses are forgetting](https://fortune.com/img-assets/wp-content/uploads/2024/06/GettyImages-1810936589-e1719520751254.jpg?resize=1200,600)
The cost of living crisis is weighing on employees. And as companies roll out more unique benefit offerings designed to support staffers, they should spend some time thinking about the financial benefits that workers actually want.
Two out of three U.S. employees ranked financial well-being as the top area within well-being overall in which they want support from their bosses over the next three years, according to a new report from Willis Towers Watson (WTW), an insurance services company. That beat out all other well-being subcategories, including a supportive company culture, mental, emotional, and physical health benefits, and workplace connections.
About 88% of workers are worried about covering their living costs, with 73% concerned about paying for food, 72% distressed about healthcare, 69% fretting over housing, and 66% troubled over transportation, according to the report. Around one in five American employees expect their financial situation to get worse over the next year.
In the past, retirement benefits were the main financial perk that employers would offer to their workers, Mark Smrecek, financial well-being market leader at WTW, tells Fortune. But as costs rise and workplace expectations shift, there’s been an increased emphasis on other meaningful employee benefits.
“As we look at broader lifestyle needs and concerns, the inventory on the employer side is far less equipped to serve its employee base,” he says.
Employers also seem unclear about how much workers actually prize financial well-being benefits. While 66% of U.S. workers want their employer to help them with their financial wellness over the next three years, only 23% of bosses prioritized financial wellness as an aspect of their well-being program.
When it comes to the kind of support they would like to see from employers, around 47% of U.S. workers say they want help growing their savings and wealth, according to the report. That’s followed by 35% who want help getting the most out of the benefits they already have, 33% who would like access to money in an emergency, and 21% want help managing debt. Around 21% want financial insurance, and 11% want help managing student loans.
Smrecek says that growing savings and wealth, as well as getting the most out of benefits, are two relatively traditional requests that employers are comfortable with. But others are more outside their wheelhouse.
“Providing access to money in emergencies and helping manage employee debt are two that are far more emerging from an employee demand point of view,” he says.
Smrecek adds that in addition to fulfilling workers’ specific financial benefit demands, employers need to do three things to best support staffers. He recommends bosses provide solutions that are relevant and accessible to their workforce, like financial literacy coaching and direct access to liquidity. Employers should also supplement those solutions with other less monetary-focused programs like affordable and effective healthcare plans. And companies should be proactive about connecting employees with these benefits.
“As employers look to really address the core need of the employee, how that relates to their business, and how they create value from their benefits, those aspects will drive a lot of the results that they’re looking for,” he says.
Emma Burleigh
emma.burleigh@fortune.com
Around the Table
A round-up of the most important HR headlines.
Workplace vacancies hit a record high of 19.8% last quarter, and a Moody’s report shows that the percentage of empty U.S. offices could peak at 24% in 2026. Quartz
Patagonia told 90 of its remote customer service staffers that they have three days to decide if they want to relocate to one of the company’s seven “hubs” or leave their role. Business Insider
Despite some progress in California, most U.S. businesses are opposed to passing “right to disconnect” legislation, reasoning it wouldn’t fit well with remote workers and those logging in from abroad. CNBC
Watercooler
Everything you need to know from Fortune.
Secret weapons. As more companies are trying to get workers back into the office, they’re employing sociologists, psychologists, and anthropologists to understand how staffers tick. —Ryan Hogg
Lavish living crisis. U.S. workers earning $150,000 per year are more worried about covering their bills than employees making $40,000 up to six figures, according to a report. —Eleanor Pringle
Paychecks for prosperity. China’s biggest banks have requested senior staffers to waive deferred bonuses, or even partially return their wages, to abide by the country’s new $400,000 pre-tax limit. —Bloomberg
Finance
Philippine finance app allows transfers from US banks to GCash accounts
![Philippine finance app allows transfers from US banks to GCash accounts](https://cdn.i-scmp.com/sites/default/files/styles/og_image_scmp_generic/public/d8/images/canvas/2024/06/27/e904dfe9-842e-474a-a99e-855ce40fa821_fb596d38.jpg?itok=FlCeT46Q&v=1719462666)
[The content of this article has been produced by our advertising partner.]
GCash, the Philippines’ leading finance app and largest cashless ecosystem, brought the spirit of Filipino independence to overseas communities this month. From the vibrant streets of New York City to the sun-kissed shores of California and the cosmopolitan hub of Dubai, GCash connected with Filipino communities to celebrate a mutual heritage and foster stronger ties with the Philippines.
GCash took part in Philippine Independence Day celebrations in New York City, California and Dubai, where it shared important new developments that aim to make digital financial services more accessible and efficient for Filipinos living and working outside their home country.
“At GCash, when we say that ‘finance for all’ is our vision, it means we are driven to go beyond the Philippines and reach as many Filipinos as we can around the globe,” says Paul Albano, general manager, GCash International. “We are honoured to join our community in this distinctly Filipino celebration, and we’re eager to share all the ways GCash has been continuously innovating and enhancing our services to meet the needs of our kababayan [fellow Filipinos] overseas.”
As GCash continues to expand its reach, Filipinos worldwide can look forward to more responsive services, greater financial empowerment and connectivity – bridging the gap between continents and reinforcing the bonds of community and culture.
Coast-to-coast celebrations
This year’s Philippine Independence Day celebrations in the US – marking 126 years of liberation – included a June 2 parade in New York City – the largest outside the Philippines. The Philippine Independence Day Council Inc. (PIDCI), a non-profit umbrella organisation of the National Federation of Filipino-American Associations up and down the US East Coast, hosted the event. Now in its 34th year, the parade has grown to become an annual celebration of Filipino culture and a display of national pride, strengthening familial and community ties.
At a booth set up during a street fair in New York City celebrating independence, GCash showcased its partnerships with financial institutions such as Meridian, an instant payment technology company headquartered in New York. The collaboration effectively synergises US-based financial services and the mobile wallets that have become part of daily life across the Philippines.
On June 8, over on the US West Coast, the city of Carson, California held a day of festivities for its own Philippine Independence Day celebrations. The community event, held at Veterans Park, featured food booths, a parade and cultural presentations – all showcasing Filipino culture, as well as offering individuals the opportunity to come together with family and friends.
GCash also set up booths to share the latest updates about its financial services, including its international expansion and its position as a seamless digital financial solution for Filipinos overseas. The app is now available for download in the US using a US mobile phone number. Cashing in and sending money have been made easier and more convenient through direct cash-ins.
![GCash booths in the city of Carson, California, with attendees learning about the company’s fintech solutions via its app, as well as its recent partnership with Meridian.](https://cdn.i-scmp.com/sites/default/files/d8/images/canvas/2024/06/27/8c47ce50-8565-4db6-a265-fb7b2cccc2c2_3a0915fa.jpg)
Collaboration enables international transfers
GCash’s partnership with Meridian has enabled the direct in-app transfer of American-based user funds from more than 12,000 banks to GCash accounts. Upon cash-ins, which come with a US$1 fee per transaction, the service automatically converts dollar amounts into Philippine pesos, with competitive foreign exchange rates.
“At GCash, we want to help with the most important thing for our countrymen abroad: how they can care for their families and maintain connections with their loved ones despite the distance,” Albano says. “With GCash’s international expansion, this is exactly what we are doing. We’re making it possible for Filipinos overseas to take better control of their finances, and sending money to the Philippines is more convenient with our competitive rates.”
Celebrating Philippine-UAE partnerships
In the United Arab Emirates (UAE), the Filipino community gathered at the Independence Day celebrations held at the Dubai World Trade Centre. The event, which featured cultural presentations and tributes to Filipino traditions, celebrated the continuous contributions of overseas Filipinos towards nation-building efforts between the two countries. It also honoured 50 years of diplomatic relations between the UAE and the Philippines.
At the event’s bazaar, GCash showcased its global expansion efforts to Filipinos who have made a second home in the UAE, sharing its latest innovations that aim to empower members of the Filipino community working overseas by giving them more control of their finances via the app.
![GCash staff and brand ambassadors showcase the company’s latest innovations and international expansion drive to the Filipino community at the 126th Kalayaan 2024 celebrations held at the Dubai World Trade Centre.](https://cdn.i-scmp.com/sites/default/files/d8/images/canvas/2024/06/27/50db9307-da13-4954-b34a-d07b07d05a4e_3a6d37ea.jpg)
International expansion to reach millions of Filipinos overseas
GCash announced in March that it has expanded its international reach and fully launched its global push following approval from the Bangko Sentral ng Pilipinas, the central bank of the Philippines, in 14 territories. Users in the US, Canada, Italy, the UK, Australia, Japan, the UAE, Qatar, South Korea, Taiwan, Hong Kong, Spain, Germany and Singapore can now use international mobile numbers to sign up for the GCash app. Approval for Kuwait and Saudi Arabia is expected to follow in the second half of this year.
With its expansion outside the Philippines, GCash is able to serve and empower more Filipinos, wherever they may be based. In addition to free real-time money transfers between GCash wallets for convenient access to funds, as well as the ability to buy prepaid credits for loved ones back home, GCash users abroad can now directly pay their bills, including utilities, tuition fees and government bills such as taxes, as well as making payments to more than 1,900 Philippine merchants.
To access GCash outside the Philippines, users with an active international SIM card can download the app from Google Play, App Store or Huawei AppGallery.
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