 |
|
|
|||||
As 2025 winds down, here are some moves to help you finish the year strong financially. Morningstar’s director of personal finance and retirement planning, Christine Benz, discusses strategies.This interview has been edited for length and clarity. Benefits of rebalancing your portfolio What are the benefits of portfolio rebalancing, and who most needs to do it? The main benefit of rebalancing is risk reduction. You trim securities that have performed really well, presumably ones with higher valuations today. And you redirect the money into securities where returns have lagged, but valuations might be more attractive. It’s also important to rebalance on an ongoing basis as you get closer to your spending target.As retirement approaches, we need to spend that money, so you want to de-risk your portfolio and build safer asset reserves. Investors age 50 and above really need to take notice of rebalancing. It’s time to take some winnings and build safer assets that you could access if you needed to spend from your portfolio. Moving money into high-quality bonds removes risk and takes advantage of current attractive yields. Why investors saving for retirement should check their international allocation What do you recommend for people who are still working and saving for retirement? They should rebalance as well, but their main consideration should be their U.S. versus non-U.S. exposure. Most investors are underallocated in international stocks. Consider your style diversification as well, paying attention to underperforming areas.Review your retirement contributions, to see if you can boost or even max out your company retirement plan for the year. People over 50 can make catch-up contributions, and there are special catch-up contributions this year for people between 60 and 63. You can contribute to IRAs and HSAs until the tax filing deadline. How to use RMDs to help with rebalancing How can people over 73 connect their RMDs with portfolio rebalancing? Required minimum distributions (RDM) must be taken on time, but they can also help meet your rebalancing. By using appreciated securities to meet your RMD, you de-risk your portfolio, satisfy the IRS’s obligations, and may free up assets to supply your cash flow needs for next year. Why investors should check their insurance coverage Is it also a good time to look at your insurance coverage? Whether you are doing open enrollment for employer-provided health care or for Medicare, it’s important to shop around. Take stock of what has changed in your situation, and in the plans on offer. This is particularly important for employer-provided plans, which change frequently. Married couples often select whichever spouse’s plan looks better and most affordable, but sometimes it’s more cost-effective for each partner to be covered by their own company’s plan. How qualified charitable contributions can help with RMDs How can charitable donations connect with RMDs and lessen your portfolio risk? Investors with highly appreciated holdings in taxable accounts should consider giving appreciated assets directly to charity or sending them to a donor-advised fund. You can disburse from the donor-advised fund to charities over multiple years. Donating removes a highly appreciated asset from your portfolio, which can lessen risk, and removes the tax liability associated with that holding. You won’t owe taxes on donated funds, and you could get a tax deduction.People age 70.5 and older can use the qualified charitable distribution to donate part of an IRA to charity. The amount donated is not taxable to you, and it will satisfy your RMD. If you’re not yet subject to RMDs, it will at least shrink the amount of your IRA that will be subject to RMDs. This article was provided to the Associated Press by Morningstar. For more personal finance content, go to https://www.morningstar.com/personal-finance Margaret Giles is a senior editor of content development for Morningstar.Christine Benz is director of personal finance and retirement planning for Morningstar. Related Links IRS Adds New Reporting Code for Charitable IRA Gifts A Checklist for Retirees to Finish This Year Trump Savings Accounts: The Hidden Tax-Reporting Challenge Margaret Giles and Christine Benz of Morningstar
Category:
E-Commerce
Costco has sued the U.S. government to ensure it will receive refunds if the Supreme Court rejects President Donald Trump’s bid for sweeping authority to impose tariffs. In a complaint filed on Friday in the U.S. Court of International Trade in Manhattan, Costco said Trump’s use of the International Emergency Economic Powers Act to impose tariffs left it uncertain whether businesses can recoup sums they should not have paid. The nation’s largest warehouse club operator said U.S. Customs and Border Protection denied its request for more time to make final calculations of tariffs owed, threatening its right to complete refunds even if the Supreme Court rules against Trump. Customs and Border Protection had no immediate comment. Costco did not immediately respond to a request for comment. Based in Issaquah, Washington, Costco joined dozens of companies suing to safeguard potential refunds. It is also among the largest, with $275.2 billion of revenue in its fiscal year ending August 31. Other companies that have sued to preserve refunds include Bumble Bee Foods, Ray-Ban eyeglass maker EssilorLuxottica, Kawasaki Motors, Revlon, and Yokohama Tire, court records show. During oral arguments on November 5, Supreme Court justices from both sides of the political spectrum asked skeptical questions about whether Trump legally used the 1977 emergency powers law to impose tariffs. The justices took the case on an accelerated basis, but have not said when they will rule. Costco has taken multiple steps to address tariffs, including by reducing the number of suppliers, and relying more on local sourcing and its in-house Kirkland brand. Jonathan Stempel, Reuters
Category:
E-Commerce
To Trina Spear, cofounder and CEO of medical apparel brand Figs, change for the healthcare industry has to start with a focus on healthcare workers. We believe if you serve the provider, they will be able to better serve the patient, she says. And that drives better outcomes. That drives a better healthcare system. As part of that focus, Figs gave away hundreds of thousands of scrubs, organized healthcare worker retreats, and donated some $510,000 to healthcare nonprofits in 2024 alone. Now its expanding that work by launching its own nonprofit, the Awesome Humans Foundation, which will provide financial support, training, and resources to healthcare professionals. Our mission is to serve those who serve others, so impact has always been ingrained into the center of the company, Spear says. The big vision that weve always had is, How do we make the experience of being a healthcare professional, no matter where you live around the world, the best it can possibly be? How Figs has helped healthcare workers Figs has long called its customers (and generally every healthcare worker) awesome humans. And the company has done more than just sell those workers scrubs and lab coats. For instance, Figs launched a healthcare advisory board focused on policy solutions around pay, mental health, workplace safety, reduced administrative burdens, and more. The Santa Monica-based company wrote checks to healthcare professionals after the Los Angeles fires to help them get food, support local relief efforts, or get medical essentials for their hospitals. And its donated thousands every yearto nonprofits like the Dr. Lorna Breen Heroes Foundation, which focuses on mental well-being for healthcare workers, and the Student National Medical Association, which provides mentorship and training. With its own foundation, though, Figs hopes to have an even bigger impact. It also now has the ability to fundraise for that work. Were going to be able to donate multiples [of Figss annual charitable giving], because well be basically crowdsourcing the world, Spear says. If you care like we care, were going to be able to do big things together. The nonprofits focus The Awesome Humans Foundation will have four main focus areas. The first, dubbed Rapid Relief for Awesome Humans, will provide direct financial support to healthcare professionals (who live or study in the U.S. or its territories) who face any sort of monetary hardship. The way Figs supported L.A.-area healthcare workers after the wildfires would fit into that bucket, for example, but through a nonprofit instead of the company writing checks off its balance sheet. Next, the foundation will offer Future Icons grants of $10,000 to help cover tuition costs and fees for U.S. healthcare students. Coming out [of school] with a ton of debt is super debilitating and very hard, and how can we relieve that burden? Spear says. That burden may soon grow for some healthcare workers, too. The Trump administration recently removed an array of healthcare titlesincluding nursing, physical therapy, and dental hygienefrom the Department of Educations professional graduate degree program list, meaning those degrees now face stricter student loan limits. The nonprofits third pillar will be its Ubuntu Grant, which will fund other nonprofitsin the U.S. and internationallythat support healthcare workers. (Unbuntu is an African philosophy that has been translated as I am because we are.) Its fourth piece, called the Healthcare Is Human Award, will reward healthcare leadership and advocacy. For that, anyone can nominate a healthcare professional they see making an impact. (Nominations will be open July 1 to August 31, 2026.) Figs expects the Awesome Human Foundation to make its first grants shortly after its launch on Giving Tuesday, December 2. To the company, this nonprofit aims to fill a void it saw in the philanthropy space. There was no organization that was really focused on all healthcare professionals that served all their needs, Spear says. So we had to build it ourselves.
Category:
E-Commerce
Social media users may love the “6-7” trend, but when it comes to their advice for baby boomers, a number of recent posts from TikTok financial influencers have users recommending that people start collecting their Social Security benefits early, at age 62. However, this differs from what financial planners typically recommend, which is that people delay their Social Security claim as long as possible to get the maximum monthly benefit at age 70. Here’s what to know about the online debate. How does age affect Social Security payments? Before you do anything, it’s important to understand how Social Security worksand that you contact your financial advisor when making big decisions about your retirement. That said, how it works is that at full retirement age (FRA), you can claim 100% of your Social Security benefits, which are calculated based on your lifetime earnings. Historically, that age was 65, but it has been gradually increasing to age 67, due to changes in Social Securitys financial structure that Congress enacted in 1983, according to the American Association of Retired Persons (AARP), a nonprofit, nonpartisan organization for Americans 50 and older. So, if you begin benefits before your full retirement age, at say, 62, Social Security reduces your monthly payment by a fraction of a percent for each month you filed early. If you wait till age 70, you can receive your maximum monthly benefit, per the AARP. What are people saying on TikTok? Some financial influencers, or finfluencers” on YouTube and TikTok have posted about the issue and recommended that people take the payout starting at 62, and invest that money monthly in the stock marketwhich is the opposite advice of most expert financial planners. According to the arguments on TikTok, from users such as the Medicare Family, doing this makes sense for some people, namely if you are sick (“and may not live to be 70”); or even “if you are going to live a long time, because you can invest it” in the stock market, which currently has high returns, or with a financial advisor. What do the experts say? Many financial advisors feel differently. “I generally do not recommend that people claim Social Security at 62 unless they seriously need the money or have a shortened life expectancy,” Social Security advisor Mary Beth Franklin tells Fast Company. “For people who are healthy enough and wealthy enough to wait up until age 70 to claim maximum benefits, there is a huge pay offan extra 8% per year, delayed retirement credits for every year they postpone claiming beyond full retirement age (FRA) up to age 70which can also maximize survivor benefits.” Audrey Guo, assistant professor of economics at Santa Clara University’s Leavey School of Business, adds that beyond the typical life expectancy concerns, the decision to claim Social Security early comes down to a person’s appetite for risk, as it’s essentially a savings vehicle. “While it’s true you may be able to earn a higher return by taking your monthly payment and investing it in the stock market, this only makes financial sense if you don’t have any other assets in relatively low-yield assets such as savings accounts or bonds,” Guo explains to Fast Company. “Otherwise, you would also want to liquidate and invest those assets into the stock market before claiming Social Security early.” “Realistically though, most folks probably don’t have (and shouldn’t have) the ability to stomach that much risk,” Guo adds. What should I make of all this? Above all, it’s important to remember that listening to financial advice from strangers on the internet is very risky, and it’s best to consult with a trusted financial advisor about your specific situation before making any big decisions about your finances or retirement.
Category:
E-Commerce
Air travelers in the U.S. without a REAL ID will be charged a $45 fee beginning in February, the Transportation Security Administration announced Monday.The updated ID has been required since May, but passengers without it have so far been allowed to clear security with additional screening and a warning. The Department of Homeland Security says 94% of passengers are already compliant and that the new fee is intended to encourage travelers to obtain the ID.REAL ID is a federally compliant state-issued license or identification card that meets enhanced requirements mandated in the aftermath of the Sept. 11, 2001, terrorist attacks.Obtaining the ID indicated by a white star in a yellow circle in most states means taking more documents to the motor vehicle agency than most states require for regular IDs. It was supposed to be rolled out in 2008 but the implementation had been repeatedly delayed.Beginning Feb. 1, travelers 18 and older flying domestically without a REAL ID and who don’t have another accepted form of ID on them, such as a passport, will pay the non-refundable fee to verify their identity through TSA’s alternative “Confirm.ID” system.TSA officials said that paying the fee does not guarantee verification, and travelers whose identities cannot be verified may be turned away. If approved, however, the verification covers a 10-day travel period.The fee can be paid online before arriving at the airport. Travelers can also pay online at the airport before entering the security line, but officials said the process may take up to 30 minutes.The TSA initially proposed an $18 charge for passengers without a REAL ID, but officials said Monday they raised it after realizing the alternative identification program would cost more than anticipated.Other acceptable forms of ID include military IDs, permanent resident cards and photo IDs from federally recognized tribal nations. TSA also accepts digital IDs through platforms such as Apple Wallet, Google Wallet and Samsung Wallet at more than 250 airports in the U.S. Associated Press
Category:
E-Commerce
Sites : [17] [18] [19] [20] [21] [22] [23] [24] [25] [26] [27] [28] [29] [30] [31] [32] [33] [34] [35] [36] next »