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| The Retirement Gender Gap Is Real – Here’s How To Close It |
And if you need a reason to up your financial confidence, you’ll want to listen closely to this episode of the HerMoney podcast. It’s about the fact that women face a steeper climb to retirement – and more importantly, what we can do about it.
As two experts from LIMRA – Chief Marketing Officer Tina Beckwith and Retirement Income Institute Fellow Suzanne Norman – explain, three groups have it especially hard: Gen X’ers, caregivers and single women. "When we think about the single woman, they're paying for a full lifestyle — there are no shared costs," says Norman. Nearly half say they feel "very far from where they need to be."
One number every woman should know: the average out-of-pocket healthcare cost for a woman retiring at 65 — excluding long-term care — is $300,000. Broken down over 30 years, that's roughly $10,000 a year. Still significant, but far less paralyzing when you see it that way.
"Knowledge is power," says Norman. "We can take action towards a goal knowing what it is. If we can start earlier, managing some of these expenses…it's going to be much more doable."
👉 More from LIMRA: Women – and especially widows – often want a trusted partner to help navigate retirement decisions. Here are 7 key tips to keep in mind when looking for a financial professional. |
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| This Week In Your Wallet |
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Facing the least affordable housing market in decades, more parents are stepping up to help adult children purchase their first homes. Jennifer Gross and her family are part of the new trend. Her father recently bought her a home two miles away for $625,000. The mortgage is in his name and she contributes $2,200 a month toward payments. "Face value, there is immediate judgment, my dad bought me a house," Jennifer tells The Wall Street Journal, noting that she didn’t grow up wealthy. She compares it to a scene from "My Big Fat Greek Wedding," when the father, who owns a diner, buys the house next door for his daughter as a wedding gift."This is the pinnacle of every sacrifice each generation has made to pay it forward to the next," Jennifer said.
If you want to retire early, forget obsessing over the morning stop at your local coffee shop or the streaming service you rarely use. Early retirees say the real levers are housing, transportation and food – and cutting meaningfully in those areas is actually what moves the needle. On housing, one strategy early retirees swear by is "house hacking" – renting out part of your home (ideally a duplex) and using the income to offset some, or all of your mortgage. "It requires buying a property, which means having enough savings for a down payment and closing costs, but for those who can make the numbers work, it can significantly reduce — or even eliminate — a monthly housing payment," reports Business Insider.
The joys of home ownership go hand in hand with the jobs of home ownership – busted water heaters, leaky roofs and ACs that give up right when you need them most. Most of these disasters, though, are preventable. We’re highlighting eight of the top home maintenance tasks you should check off your list annually to keep your house up-to-date and crisis-free. One of them? Cleaning your gutters, which typically runs anywhere from $120 to $230 for an average-sized home. It’s money well spent, though. Experts say clogged gutters are the top cause of basement leaks – a condition so serious that many potential home buyers won’t even consider a home with a history of flooding. |
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| Things That Make You Money |
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| Ask Jean |
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| Q: |
Today’s question comes from Eva. She writes: I’ve opened new checking and savings accounts this year, both of which offered me cash bonuses as a new customer. Do I have to pay taxes on those? |
| A: |
There’s no shortage of perks out there for people who sign up for new bank accounts. In many cases, they come in the form of cash bonuses. If you meet certain requirements – like setting up direct deposit or maintaining a minimum balance – the bank deposits the reward straight into your account.
From the IRS’s perspective, though, that money isn’t a "gift." It’s typically treated as interest income. If your bonus tops $10, expect a Form 1099-INT at tax time so you can report it on your return.
How much tax you’ll actually pay depends on your tax bracket. For example, a $300 sign-up bonus might cost you roughly $66 in taxes if you’re in the 22% bracket — still leaving you with a decent net reward.
And while these bonuses are taxable, they can still be worth pursuing — especially when paired with a competitive interest rate. For example, many of the best high-yield savings accounts right now are offering both elevated yields and cash bonuses for new customers.
If you’re shopping around, it’s worth comparing the full package of rates, requirements, and promotions. Even after taxes, a strong APY plus a one-time bonus can provide a meaningful boost to your bank account. |
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| Submit your questions to Jean here. |
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