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Stat Of The Day
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2.625%
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Here’s a reason to be jealous of Vice President Kamala Harris. No, it’s not her power suits. It’s her 2.625% mortgage rate…which is just one of the aspects of her financial life the Wall Street Journal is taking a peek into. While most of it is a "little boring," as the paper notes, Harris has one thing many Americans don’t: A pension.
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3 Types Of Annuities To Secure Your Financial Future
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Survey after survey tells us: Americans are worried about outliving their retirement savings. According to a recent Allianz Life study, 61% of Americans are more afraid of running out of money in retirement than they are of dying. Yikes.
While pension benefits (and the financial security that comes with them) are pretty much a pipe dream for many, there are financial tools you can use to buy yourself a pension of sorts — in other words, a retirement paycheck that will last as long as you do.
They’re called annuities and more people are interested in them — and stepping up to buy them — than in the past. In 2023, U.S. annuity sales hit a record $385 billion as rising interest rates made the products more attractive, and people looking at retirement decided to try to lock in some income.
Still, there’s no denying annuities can be complicated. That’s why we’re breaking down the three types of annuities you can use as tools to secure your financial future. One of them? Fixed annuities, which are the simplest type. With fixed annuities, you hand the insurance company a sum of money and, in exchange, they provide you with a paycheck.
For more annuity 411 including how they work and how — more importantly — to decide if they might work for you, click here.
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This Week In Your Wallet
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Are you a workaholic or a work enthusiast? Yes, there’s a difference…and it can impact your health. Work enthusiasts put in long hours because they’re passionate about their careers. Or, as Chris Woolston reports for The Washington Post, they might temporarily "put themselves through the grinder to advance their careers or keep up on car or house payments." Workaholism is a different beast altogether and impacts about 15% of workers. "Workaholism involves an inner compulsion to work, having persistent thoughts about work, experiencing negative feelings when not working and working beyond what is reasonably expected." For some, workaholism can translate into health issues stemming from excessive alcohol use and not getting enough exercise or sleep. Are you just passionate about your job, or have you crossed the line? This quiz can help you find out.
More than 36% of adults are getting their side hustle on. And they’re cashing in…big time. "The average side hustler is bringing in $891 per month," reports CNBC. "That’s up from $810 per month in 2023, or a 10% increase altogether." As a new report from Bankrate shows, Gen Zers are the most likely to moonlight, with 48% of those in that generation saying they do so. 44% of millennials say they have side gigs, and they bring in the most per month ($1,129) on average. Exactly what are side hustlers doing to generate extra money? Some of the most popular activities include dog walking, furniture assembly and pet sitting.
The baby’s not sleeping. Your toddler won’t eat anything but peanut butter. Where do you turn for advice? For many, the answer is social media, where a growing number of moms, like Cara Dumaplin of Taking Cara Babies (which has a following of nearly 3 million sleepy parents), are sharing their parental wisdom and making a pretty penny at the same time. "She’s part of a wave of women marrying the authenticity of a fellow parent with the credentials of a Ph.D., RN, or other distinguished degree, and leveraging Instagram and TikTok to launch newsletters, podcasts, video courses, products, and books," reports TIME. Just how lucrative can doling out parental advice be? Let’s use Deena Margolin and Kristin Gallant, the brains behind Big Little Feelings (3.5 million followers 😳), for example. "Not only have
almost 215,000 kids potty trained through Big Little Feelings’ course, which costs $34 a pop, Margolin and Gallant have partnered with companies like Fisher-Price." You do the math.
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Things That Save You Money
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Don’t pay full price for books at Target. We repeat, don’t pay full price for books at Target. Before you hit the checkout line, be sure to scan the barcode on your book using the Target app. More often than not, the price on the store’s website will be cheaper. Request a price match from the cashier to save yourself some money. You’re welcome.
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Entrepreneur magazine rounded up "The 20 Best Books for Learning About Money," and we made the cut! Check out the full list here, which includes "How To Money," by HerMoney’s CEO Jean Chatzky and our Chief Content Officer, Kathryn Tuggle, along with 19 other titles guaranteed to up your money know-how and saving power.
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Couldn’t get to Paris for the Olympics? Here’s something sweet to make up for it. An Olympic-themed "Go for the Glaze" donut special at Krispy Kreme. On Thursday, loyalty club members can get an original glazed donut for just $1.
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Ask Jean
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Today's question comes from Kristi. She writes: I’ve only done part-time work and been a stay-at-home mom for many years. It’s been hard to transition and work out of the home, so I’ve looked for remote jobs but haven’t had any luck. How can I even start to save or invest in something small? Can you suggest anything for people who have been out of work, besides getting a job? How can I start small?
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Thanks for your question, Kristi. While it might feel like you’re stuck, believe it or not, you’ve already won part of the battle by recognizing the value of starting small. As with most goals, it’s those little steps that take us closer to the big payoff. The same holds true for our money goals, too. You’ve also recognized which side of the ledger you want to work on. There’s money coming in and money going out. Since you’re looking for advice "besides getting a job," work the money going out portion of things. Here’s how. (P.S. If you do want to lean into your earning power, take a look at the side hustle advice above.)
Build a budget: If you don’t have one, create a spending plan. Then, take a good hard look at it. Are there ways you can cut back? For example, subscriptions you aren’t using? Identify those expenses and then, find a place to park the money you’re saving (perhaps in a high-yield savings account where you can earn anywhere from 4.5%-5.55% interest).
Find flexible work: While you might not have the bandwidth to take on a full-time position, or even a part-time position with a regular schedule, think about other ways you can bring in money that offer some flexibility. Can you freelance, or do gig work (UpWork and Taskrabbit are great places to search for opportunities)? Can you tutor online? Sell items on eBay or Etsy? These are all great avenues to pursue as you look for ways to generate extra income. PS, if you are up for something a little less flexible, here’s a roundup of 40 companies offering 4-day workweeks and remote jobs.
Consider a spousal IRA: Even if you no longer have earned income, you can still — hooray — make a tax-advantaged retirement contribution. The vehicle you use to do it is called a spousal IRA, which can give you many of the same tax-advantaged savings as a workplace account. As long as you have a spouse who’s earning an income, you’re eligible to save in a spousal IRA. Learn more about them, here.
If you’re going to invest, do your homework: Today, it’s easier than ever to start investing with small amounts of money. Certain platforms will allow you to start investing with as little as $1. Just make sure you’re not going in blind though. A good place to start learning the basics of investing is via InvestingFixx, HerMoney’s investing club for women (PS, your first month of InvestingFixx is FREE!)
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Submit your questions to Jean here.
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We maintain a strict editorial policy and a judgment-free zone for our community. We strive to remain transparent in everything we do. Website posts and newsletters may contain advertisements, links and mentions of products from our partners. Learn more about how we make money.
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*The HerMoney podcast is proudly sponsored by Edelman Financial Engines. Unlock your wealth potential with our sophisticated wealth planning. Continue your journey at EdelmanFinancialEngines.com. Sponsored by Edelman Financial Engines – Modern wealth planning. All advisory services offered through Financial Engines Advisors L.L.C. (FEA), a federally registered investment advisor. Results are not guaranteed. AM3625086.
HerMoney is not a client, agent, representative or affiliate of EFE.Edelman Financial Engines ("EFE") is a sponsor of the "HerMoney with Jean Chatzky Podcast," created by HerMoney Media. Inc. ("HerMoney") and provides cash compensation to HerMoney Media. HerMoney receives a sponsorship fee from Edelman Financial Engines depending on the number of podcast downloads, as measured by the end of the calendar year. The sponsorship fee is paid on a quarterly basis each year. In turn, HerMoney also provides promotional deliverables regarding EFE on the HerMoney podcast, newsletter, and social media channels. Due to this sponsorship arrangement, HerMoney has an incentive to endorse EFE and its services.
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**This is a sponsored post
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.
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