🦺 Is the Social Security safety net slipping?

Stat Of The Day

71%

Move over, finance bros. 71% of women now own investments in the stock market, according to new research from Fidelity. That’s an 18% jump since last year.

Is The Social Security Safety Net Slipping?

Is worrying about Social Security’s future keeping you up at night? If so, you’re not alone. New research from the Alliance for Lifetime Income shows that Americans routinely claim Social Security early, partly because they fear future cuts.

According to the 2024 Social Security Trustees’ Report, the program’s primary trust fund will be depleted in 2033. Barring any reforms enacted by lawmakers, that translates to a 21% cut in benefits for recipients. Yikes.

That said, experts agree the government will eventually deal with the problem — and if it doesn’t, it’s similarly unlikely that everyone would see their benefits slashed by that amount at once. Instead, "over the course of a year, everyone would receive about 20% less in benefits, but you’d have some months where people got paid fully and other people got no benefit," explains Emerson Sprick, Economist & Associate Director, Economic Policy Program at the Bipartisan Policy Center.

So what does this mean for you and your retirement plans? For what you need to know about weathering the uncertainty, click here.

This Week In Your Wallet

The secret to becoming financially "fetch" could be making the most of your lunch break. As Michelle Singletary writes for The Washington Post, there are 10 financial tasks that take so little time, you could tackle them during your lunch hour, and make a big difference in your life. One of them? Freeze your credit. "If you’re worried about your information being compromised by data breaches, freeze your credit," writes Singletary. "This prevents swindlers from accessing your credit report without your permission, making it harder for them to take out loans or open new credit cards in your name."

PS – we’ve got one more task to add to the "must-do" list. Sign up for a FREE webinar, hosted by HerMoney CEO Jean Chatzky, happening on October 15! Jean will be breaking down her tried and true strategies for getting a handle on your money and answering YOUR questions, so have ‘em ready. Click here to secure your spot.

"A bit of a stunner." That’s how the latest jobs report is being described. It smashed expectations, showing the economy added 254,000 jobs last month and an unemployment rate that dipped to 4.1%. The report shows restaurants, retailers, and construction companies all added jobs at a steady clip, but it’s not all a rosy picture. "Manufacturing has been in a slump for most of the last two years," reports NPR. "Factories cut 7,000 jobs in September, although factory employment is still higher than it was just before the pandemic, by 137,000 jobs. Most of September's job cuts were in the auto industry."

Got student loans? If so, you’ll want to take extra care to be on time with your payments. As The New York Times reports, the yearlong "on-ramp" to help borrowers get back into the swing of making payments after they were paused in the wake of COVID-19, came to an end on September 30. "There’s still a bit of wiggle room built into the payment process: A missed bill is reported only after 90 days of nonpayment," reports Tara Siegel Bernard. "So if you fail to pay your October bill, you have until your due date in January to become current or take other actions (like enrolling in a more affordable repayment plan or getting a forbearance)."

Things That Save You Money

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If you love to shop secondhand, but thrift store options where you live are limited, have no fear. ShopGoodwill.com lets you bid on finds from 150 Goodwills across the U.S. and Canada. Happy hunting!

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We *might* need to create a separate calendar to track upcoming sales from big retailers. Amazon’s Prime Big Deal Days runs today through October 9, Target Circle Week is already underway, and takes place through the 12th. Lastly, Walmart’s Holiday Deals event is happening now and goes through the 13th.

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Have caviar taste, but a burger and fries budget? Here are 61 inexpensive dinner ideas that do the most with the least, courtesy of Bon Appétit. PS, someone PLEASE try the pasta with 20 cloves of garlic, and let us know how it is.

Ask Jean

Today’s question comes from Deb. I’d like to start a little "gift" fund for a nephew for every birthday and special occasion to put aside some money for him until he’s 18. What’s your best recommendation for this? A savings account, or something else?

Look at you, you generous aunt. There are a few options you can consider. First, you could open up a 529 college savings plan. With a 529 plan, your money grows tax-free and withdrawals are tax-free if used for qualified educational expenses. One of the big question marks with 529 plans is "What if the child doesn’t go to college?" For more on how that’s handled, head here.

You could also consider a high-yield savings account (HYSA). HYSAs are easy to set up, and you can contribute regularly. HYSAs have been enjoying some great rates recently, so this is an option worth checking out.

Lastly, you could open a custodial account. This would allow you to invest in stocks, bonds, mutual funds and other securities. With this option, the major plus is that the money could have the potential to grow more as the years go on.

Submit your questions to Jean here.

More For You To ♥

📣 Ask Jean your questions live! Join us next Tuesday, 10/15, for a free 30-minute webinar and 15-minute Q&A, dedicated to helping you take control of your financial life. Grab your seat here.

🎧 Maintaining our friendships can get expensive, but they’re so important. Here’s how to be a good friend while keeping your budget in check. The HerMoney Podcast* is made possible by Edelman Financial Engines.

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🩺 Open enrollment is just around the corner, and healthcare policy expert Sabrina Corlette will be joining the HerMoney Podcast to talk about all things healthcare. Have a question you’d like answered? Send it our way!

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¹ Withdrawals are taxed as ordinary income and, if taken prior to age 59 1/2, there may be a 10% federal tax penalty. Withdrawals may result in a surrender charge or a market value adjustment (MVA) and excess withdrawals may result in a reduction of future payments under the guaranteed lifetime withdrawal benefit. Guaranteed Lifetime Withdrawal Benefit provided so long as your account value hasn’t gone to $0 due to excess withdrawals. Annual Percentage Yield (APY) rates are subject to change at any time, and the rate mentioned may no longer be current. Please visit Gainbridge.io for current rates, full product disclosures and disclaimer. ParityFlexTM, a multi-year guaranteed annuity, is issued by Gainbridge Life Insurance Company in Zionsville, Indiana.