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Stat Of The Day
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$1,300
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That’s the extra amount the average woman pays each year thanks to the so-called "pink tax" – the not-so-pretty premium on everything from razors to clothing, simply because it’s marketed to women.
And just when you thought that was enough…enter its even more expensive cousin, the "singles tax." The good news? If you’re flying solo, there are ways to plan ahead so added costs don’t derail your budget. Read on to learn how.
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Why Playing It Safe With Your Money Might Be the Riskiest Thing You Can Do
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Have you ever subtracted your age from 100 to figure out how much to keep in stocks? It’s one of the most widely repeated rules of personal finance. And the classic 60/40 portfolio — 60% stocks, 40% bonds — is widely known as a great place to start with investing. But according to Yale finance professor James Choi, both of those guidelines share a critical blind spot. And for many women, that blind spot could be costing them.
Choi recently joined Jean Chatzky on the HerMoney Podcast to talk about his new asset allocation research. In it, he offers a more personalized, more sophisticated way to think about how to invest your money. And the conclusions he reaches might surprise you.
Chatzky has long been a defender of the 60/40 portfolio. And she still believes there’s real value in it, as a framework and as a starting point. "What I always tell people is that 60/40 only works if you actually maintain it," she says. "When stocks surge, that 60% can become 65%, 70%, and suddenly you’re carrying a lot more risk than you signed up for without even realizing it." That’s why rebalancing annually is so important.
But here’s where Choi’s research pushes the conversation further. Both the 60/40 rule and the "100 minus your age" shortcut, he argues, are missing something fundamental about your financial life: everything that hasn’t happened yet. Your future paychecks. Your Social Security benefits. The income that is still coming your way.
"For most of us during our working lives, our biggest economic asset is not actually our savings," Choi explains. "It’s the future stream of wage income and Social Security benefits that are coming our way."
So, how do you get your asset allocation right – at every age? Choi breaks it all down, here.
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This Week In Your Wallet
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Nurses are saving lives…and the American Dream. As The Wall Street Journal reports, in a shaky labor market, healthcare jobs – and especially nursing – are emerging as one of the most reliable paths to middle-class stability in the U.S. The numbers tell the story – the median annual wage for registered nurses now sits at $93,000; a major leap from the $49,500 median across all occupations, according to federal data. With an aging population, the demand isn’t slowing down. The Labor Department anticipates jobs for advanced-degree nurses will surge 35% through 2034, far outpacing the modest 3% growth expected across the broader workforce. "We don’t really have to worry about getting our bills paid," Miranda Mammen, a 33-year-old licensed practical nurse, tells the WSJ. "That definitely takes away the stress of the economy that I know a lot of people are experiencing."
Early and often. That’s the rule for talking to your children about college – and if you’re a Gen X or millennial parent, you’ve got a leg up. "Our experience with student loans gives us the opportunity to be more savvy with how our children approach their own college opportunities," Lindsey Stanberry writes for The Purse. "It’s up to us to set their expectations and help them navigate this very big, very expensive decision." Experts say freshman year of high school (or earlier) is the sweet spot to start, with conversations becoming more detailed as the stakes get higher. "As your child gets older and the college decision gets closer, it’s important to have more explicit conversations where you discuss hard numbers," adds Stanberry. "Be open about how much you have saved and how much you’re able to chip in beyond that."
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💰 How to save for retirement – and your child’s education
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If you’re a single woman and feeling pinched financially, you’re far from alone. Part of the pressure comes from the so-called "singles tax," a very real dynamic in a world where many financial systems are built for couples. As financial journalist and author Renée Sylvestre-Williams tells HerMoney, living solo often means being more deliberate about how you build security, independence and long-term wealth. "You might want to consider greater liquidity with an emergency fund you can rely on. Types of insurance to cover you if you can’t work. You may need to consider downside protection as you get closer to retirement," explains Sylvestre-Williams. "These are all sorts of questions that women in their thirties, forties, and fifties should be thinking about because at this point in time, it’s not so much about savings. It’s about making your money
work."
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Things That Save You Money
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Ask Jean
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I’m a single mom navigating my next financial step after receiving a small inheritance (about $25k). I already invest in a Roth IRA, but would like to open a CD. Is that a good idea given today’s market volatility? Which banks or credit unions do you trust for the best CD rates right now?
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CDs sometimes get labeled "your parents’ savings plan" — safe, reliable and maybe a little boring. But, depending on what you’re looking for, boring can be a good thing. The question you need to ask yourself is what is this money for. If you’re parking it somewhere until you determine its purpose, or if you know it’s for a down payment (say) three years for now, it’s stability you’re looking for. That makes a CD the right call.
But what is it exactly? A certificate of deposit is essentially a timed savings account. You agree to leave your money in the bank for a set period (a few months to several years) and, in return, the bank locks in a fixed interest rate. Generally, the longer the term, the higher the rate — though it’s always worth comparing whether that extra interest is really worth tying your money up longer.
CDs often pay more than regular savings accounts, and like other bank deposits, they’re insured by the FDIC up to $250,000 per depositor, per bank. The tradeoff is liquidity — pull the money out early and you’ll usually pay a penalty.
As for where to look, online banks and credit unions are often offering some of the most competitive CD rates right now. We rounded up several standout options for you to compare here.
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Submit your questions to Jean here.
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