Finance

Readers’ questions answered: I am 79 years old. How should I invest?

Published

1 year ago

January 26, 2025

Readers’ questions answered: I am 79 years old. How should I invest?

Navigating our money lives can be messy.

The myriad decisions we make every day about good money habits, where to invest, and how to balance saving and paying down debt are no easy lift.

I regularly hear from readers asking for advice about their own situations and challenges.

The following is an edited sample of readers’ questions and my answers.

I am 79 years old. How should I invest?

Retirees should typically hold at least five, if not 10, years’ worth of living expenses in a combination of cash and high-quality bonds. That will provide protection against needing to dip into your stock investments if things head south. The yields on bonds and cash may not be party-worthy right now, but they’re still respectable. In fact, many certificates of deposit and high-yield savings accounts are paying around 4.75%.

In general, you should aim for a more conservative mix of investments as you get older so you don’t have to get queasy when the stock market slips and slides. To roughly determine what percentage of your portfolio should be in stocks, subtract your age from 110. So, as a 79-year-old, you should have just under a third of your investments in stocks and the rest in bonds and cash.

I have two children (twins) who are 29 years old and neither is very savvy when it comes to managing money. My daughter is a good saver but my son, who is a doctor, cannot save a dime. They both acknowledge their lack of financial understanding. I was wondering if there are courses or books you would recommend.

You hit a pain point felt by many Americans, not just your children. American adults are woefully behind when it comes to financial literacy.

Most of us never were exposed to financial education growing up.

Although it’s too late for your adult children to have had that grounding, this oversight is morphing in a positive direction for today’s students — 35 states now require high school students to take a course in personal finance to graduate, up from 23 in 2022, according to the Council for Economic Education.

Another book I applaud is Jonathan Clements’ “How to Think About Money.” “We want to seize control of our finances, so we have more control over our lives,” he writes. The goal, he notes, isn’t to get rich. “The goal is to have enough money to lead the life we want.”

Finally, Benjamin Graham’s classic, “The Intelligent Investor,” is still the “best book about investing,” according to Warren Buffett. The third edition is now out.

There are also a number of free online courses via platforms such as Coursera or edX. Some recent offerings include: Financial Planning for Young Adults, available from the University of Illinois, and Finance for Everyone: Smart Tools for Decision-Making, taught by University of Michigan professors.

Podcasts, too, are entertaining and educational. Right here on Yahoo Finance, there’s “Financial Freestyle” with Ross Mac. Others to check out: Jordan Grumet’s “Earn and Invest” and Morningstar’s “The Long View.”

I am 73, single, retired from my public service work last year, receiving a pension. I have collected Social Security since age 70, and started taking out Required Minimum Distributions from my 457(b) and traditional IRA accounts this year. But I am still working part time with a different employer (no pension, no retirement plan), receiving a W-2.

Am I still qualified to put $8,000 pre-tax money into an IRA account for the year 2024? (The gross income from my part-time job is more than $8,000.) Is there an income limit for traditional IRA deductions in my situation?

Congrats on waiting until age 70 to turn on your Social Security checks. That means you will have the biggest possible amount moving forward compared to starting them back at your full retirement age.

By pushing back tapping your benefits from your IRA until age 70, you earned delayed retirement credits. Those came to roughly an 8% annual increase in your benefit for each year until you hit 70 when the credits stopped accruing.

Read more: What is the retirement age for Social Security, 401(k), and IRA withdrawals?

Source: Social Security Administration

Now, as for those contributions, you sure can contribute. There is no age restriction on making regular contributions to traditional or Roth IRAs.

A traditional tax-deductible IRA, if you’re not covered by a retirement plan at work, has no income restrictions. If you expect to be in a lower tax bracket in the next few years, the immediate tax deduction and pushing back that tax bill makes sense. Although you’re already taking your RMDs, new contributions can whittle down your taxable income.

But if you’re already in a low tax bracket, I would consider a Roth IRA.

Contributions to a Roth IRA aren’t deductible. They’re made with after-tax dollars, so you don’t report the contributions on your tax return, but you can take money and any earnings out tax-free if you hold the account for at least five years.

How much you can set aside does depend on your total income. For tax year 2024, your modified adjusted gross income limit for single filers is $146,000 with a reduced amount up to $161,000. For 2025, the income limit for contributing is between $150,000 and $165,000.

Since RMDs are never required in Roth IRAs, this is a great way to keep on saving.

For the 2024 tax year, the maximum contribution is $7,000, or $8,000 for those 50 or older who take advantage of the $1,000 catch-up contribution. That’s you. And you can contribute to a 2024 IRA until the April 15 tax filing deadline in 202 5 .

I need to purchase a car at the end of April 2025. I’m saving for a down payment between now and then so I can take out a lower loan amount. I’m also paying down my debt so my credit score increases, helping me with a better interest rate on my loan. I don’t seem to be making much progress on either. Which of the two do you recommend concentrating on more?

If you can put the brakes on buying a car for a bit longer, do it. I recommend focusing on slashing your debt. I’m not sure what kind of debt you’re whittling down, but if your interest rate is sky-high, you have to take control of that first.

Raising your credit score takes time, and adding new debt is not your best option if you can hold off on that big purchase.

Read more: 10 tips to improve your credit score in 2025

To get the best loan for a car, you’ll probably need a sizable savings for a down payment, which can be as much as 20% for a new car. (Getty Creative) · Maskot via Getty Images

If you are paying off revolving credit card debt that keeps rolling over month to month, it’s daunting. The average credit card interest rate is over 20%. That’s pretty hard to get out from under without some real elbow grease. You need to pay much more than your minimum monthly amount to make a dent.

Your debt level is a big factor in your credit score calculation. The higher your credit score, the lower your annual percentage rate (APR) will be on your car loan. The average auto loan interest rate for new cars in the third quarter of 2024 was 6.6%, while the average used car loan interest rate was 11.7%, according to Experian’s State of the Automotive Finance Market report.

Folks with excellent scores — 800 and higher — can find rates as low as 5.25% for new car loans, but that can triple for borrowers with poor credit scores, according to Experian research.

There are a few schools of thought on how to pay down your current debt. With the so-called avalanche method, you pay off debt with the highest interest rate first. Other people opt for the snowball method, which involves focusing on smaller debts first. I am in the avalanche school, but whatever works best for you matters.

Other moves to kick up your score: If you know you’re going to buy a new car, for instance, don’t open new credit card accounts, or close accounts. You need to show that you know how to manage credit by paying balances on time. Never miss a payment or due date. All it takes is one late payment to smash your score and make lenders cautious.

In addition to your credit score, other factors contribute to your interest rate, such as the lender and the length of the loan, which brings us back to saving up a bigger down payment.

I feel your frustration. To get the best car loan, you’ll probably need sizable savings for a down payment, which can be as much as 20% for a new car and closer to 10% for a used one. So saving up is critical, but in my experience, getting your debt under control and your credit score cleaned up has to come first.

Thanks to the readers who felt comfortable sending along your questions. Keep ’em coming.

Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist, and the author of 14 books, including “In Control at 50+: How to Succeed in The New World of Work” and “Never Too Old To Get Rich.” Follow her on Bluesky.

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Finance

When should kids start learning about money? Advice from local financial advisor

Published

2 hours ago

March 10, 2026

Press Room

When should kids start learning about money? Advice from local financial advisor

REDMOND, Wash. — When should kids start learning about money, and preparing for adult expenses like rent, car payments, and insurance?

It’s a question asked recently by an ARC Seattle viewer.

We took the question to Adam Powell, Financial Advisor at Private Advisory Group in Redmond. Powell talked with ARC Seattle co-anchor Steve McCarron to share insights on the right age to form money habits, common financial mistakes parents unknowingly pass down to their children, and practical tips to set kids up for long-term financial success.

Find more ARC Seattle stories on our YouTube page.

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Finance

Soft-saving era? Gen-Z embraces new financial trend that puts experiences over long-term planning

Published

1 day ago

March 9, 2026

Press Room

Soft-saving era? Gen-Z embraces new financial trend that puts experiences over long-term planning

LOS ANGELES (KABC) — Many Gen-Zers are adopting a financial approach that prioritizes quality of life in the present, a trend that’s being called “soft saving.”

Bob Wheeler, a CPA, described the mindset as a shift in how young adults balance their current lifestyle with longterm planning.

“It’s really a financial approach of ‘I want to make sure I have a good quality of life, and I’m thinking about the future,’ but not as much as the present,” Wheeler said.

For many Gen Z consumers, that can mean spending more on experiences – like vacations or concerts – rather than saving for major purchases like a car or home.

Wheeler said the approach can offer emotional benefits.

“I think there are definitely benefits, I mean, less anxiety, feeling like life is what you want it to be, fulfillment, versus saving for later on,” he said.

Still, financial experts caution against ignoring longterm stability. Wheeler encouraged young workers to take advantage of employer-sponsored retirement plans.

“They’re not going to do the max. They’re going to do enough to make sure they’re getting the match from your employer, so maybe they’re doing 3% or 5%. Maybe they’re not maxing out their IRAs. Maybe they’re doing $2,500,” he said.

He also stressed the importance of building an emergency fund, typically enough to cover six months of expenses.

“I want people to enjoy their life now because tomorrow is not promised,” Wheeler said. “I also just really reiterate to them ‘and you need to have some money set aside because we don’t know.’”

But saving for a home may not be practical for everyone. In some places, renting can be cheaper, and tenants avoid maintenance costs.

Finance

Local M&A advisory firm Matrix acquired by banking giant Citizens Financial – Richmond BizSense

Published

2 days ago

March 9, 2026

Press Room

Local M&A advisory firm Matrix acquired by banking giant Citizens Financial – Richmond BizSense

Matri x Capital Markets Group is now a division of Citizens Financial Group. (Image Courtesy Citizens Financial Group)

Matrix Capital Markets Group is used to helping businesses line up mergers and acquisitions.

For its latest transaction, the Richmond-based M&A advisory and investment banking firm was itself the subject of the deal.

Matrix was acquired last week by Rhode Island-based banking giant Citizens Financial Group.

Matrix, along with its nearly three dozen employees, including 20 in Richmond, are now operating as a division of Citizens, within the $226 billion bank’s investment banking arm, Citizens JMP Securities.

Financial terms of the deal were not disclosed. It involved an asset purchase that bought out Matrix’s 15 shareholders.

The deal ends Matrix’s 38-year run as an independent firm, a notable streak in an industry where consolidation of smaller firms into larger ones is common.

Matrix was founded in Richmond in 1988 by Scott Frayser and Jeff Moore and has since hit its stride by building a niche in handling deals for companies in the downstream energy and convenience retail sector.

The firm has been run in recent years by president Spencer Cavalier and Cedric Fortemps, co-head of the firm’s largest investment banking team.

Fortemps said Matrix began to search for a larger acquirer last year.

Cedric Fortemps

“The board decided to see if we could find a partner and a transaction that could build on what we’ve built thus far,” Fortemps said.

Matrix enlisted investment banking firm Houlihan Lokey to help in the search and negotiate on its behalf, along with the law firm Calfee as its legal advisor.

Fortemps said Citizen rose to the top of the pack of suitors in part due to JMP Securities’ track record of acquiring smaller firms like Matrix.

“They have acquired four other firms very similar to ours. Seeing the successes they had with those groups… the playbook is really to let the firms continue to operate the way they had,” Fortemps said.

Matrix’s Richmond office in the Gateway Plaza building downtown will continue to operate, as will its second office in Baltimore.

The Matrix brand will continue to be used for the time being but will eventually be phased out.

Fortemps said the firm’s success and particularly its growth in recent years has been fueled by its expertise in working deals for downstream energy clients – such as wholesale fuels distributors, propane and heating oil distributors – and convenience store and gas station chains.

Matrix’s rise in that sector began in 1997, when it hired Tom Kelso, who lived in Baltimore and owned a heating oil fuels distribution business. Kelso, who would eventually serve as the firm’s president prior to Cavalier, had a vision to launch an M&A firm for that industry.

“It took seven to eight years to grow it but eventually we were able to get a reputation of really high quality work and those successes on smaller transactions resulted in us being considered for larger deals,” Fortemps said.

Today, 21of the firm’s 26 investment bankers work on the team that handles deals for those industries. It controls about 40% market share for the M&A market for those sectors, Fortemps said.

The firm closes nearly two dozen transactions a year over the last five years and has closed 500 deals since its inception.

The typical value of its deals is more than $20 million, though the transactions it has closed over the last three years in the energy and convenience retail sectors have grown to $140 million per deal, Matrix said.

Its largest deal to date was closed last year, involving the $1.6 billion acquisition of convenience store chain Giant Eagle.

Matrix also works deals in other industries such as lubricants distribution, automotive after-market suppliers and car washes, as well as outdoor recreation and the marine industry.

After decades of representing buyers and sellers in M&A, Fortemps said the Citizens deal was a new experience for the Matrix team: being the target of the transaction, rather than the ones facilitating it.

“It certainly made me appreciate everything our clients have to go through on the other side of the table,” he said.