enRICHed: volume 82
tips on saving for retirement in your 50s + all the money teaaa
Sunday June 09, 2024
Volume 82
Hey besties!
There is nothing I love more than getting to connect with you all IRL. Online is great—don’t get me wrong—but meeting in person is just that much more impactful. It’s so nice getting to hug my BFFs! Yesterday, I was in Atlanta and got to chat, connect, and share some financial wisdom with some of the ATL based BFFs, and I loved chatting all about financial wellness and financial goal setting. We leaned into the Your Rich BFF 4 Square method of financial goal setting to help give ourselves a roadmap to financial wellness. What is the Your Rich BFF 4 Square method, you might be asking? Well, I’ll break it down for you! Number 1, write down what tools you already have to help you achieve a goal. Number 2, write down what things/tools are missing for you to be able to complete said goal. Number 3, write down who or what can help you get those things/tools. Number 4, write down a realistic timeline. Where will you be three months from now? 6 months? One year? Breaking down a goal into tangible steps can help get you closer to achieving that dream. It’s only a dream because you haven’t done it yet. But you will!
As a reminder:
HYCU, pronounced haiku: how the news impacts you and your wallet, aka How You Can Use
The Prosperitea: think discount codes, non-boring finance articles, sales, and personal links from the week. The fun stuff 😉
We love your comments, but please remember to keep it positive! And don’t take investing advice from anyone who isn’t your registered financial advisor!
Now that you’re up to speed, let’s get you enRICHed.
WYM, No Receipts? 🤔🧾
Over 300 lawmakers were reimbursed over $5.8 million for 2023 work food and lodging expenses in Washington through a new taxpayer-funded program that does not require them to provide receipts, the Washington Post reported. (Read: Ummm what???????)
This program started last year, and to be super fair, it does have a few rules: Lawmakers cannot be repaid for their mortgages, they can only get paid back for days they’re actually working, and they’re also subject to daily spending caps. Still, it’s a vague AF policy that doesn’t even require receipts, which means the reimbursement requests have been super varied and there’s no transparency about WTF any of it means—we as taxpayers just have to trust that politicians are…playing by the rules (LMFAOOOOO).
Rep. Jack Bergman (R-Mich.) balled the hardest—he was reimbursed over $32,000 for lodging and almost $12,000 for meals. Rep. Matt Gaetz (R-Fla.) spent the second-highest amount, at over $30,000 in lodging and $11,000 for meals.
This program, which started last year, was supposed to make it easier for lawmakers to cover the cost of maintaining homes in D.C. and their own districts—but of course now, people are calling them out because if we all have had to deal with an annoying email thread from HR asking us if that $20 lunch has an attached receipt, they should too!
HYCU; I’m still kind of in shock that this is real, but of course, this all impacts you as a taxpayer. Even beyond the fact that this ultimately comes out of the taxpayer’s dollar, programs like these have been accused of their lack of transparency, and make the relationship between voters and Congress all the more distrustful…and it’s not like it’s great to begin with. If this bothers you at all, you should call your representative about it and tell them to make this program more transparent with receipts! Mr. Bergman, I know all those receipts are crumpled at the bottom of your purse with a loose Tide Pen and three lip glosses!
NASDAQ (Yeehaw Version) 🤠💸
A new Texas-based stock exchange has plans to open later this year, so we can all have the opportunity to be down-South hotties who get money!
TXSE Group, Inc., backed by BlackRock and Citadel Securities, announced that it plans to file registration to the SEC and will operate as a national securities exchange. Over a dozen investors are pushing for this with over $120 million in funding.
The Dallas exchange is angling its lasso towards Wall Street with hopes to compete with the big boys like the Nasdaq and the New York Stock Exchange. But TXSE will be a “fully electronic national securities exchange,” according to CBS, so it also has a real WFH vibe, too.
Texas is home to the most Fortune 500 companies in the country—it’s also the eighth-largest economy among the world’s nations at $2.4 trillion (larger than Russia, Canada, and Italy, according to the governor’s office…mamma mia).
HYCU; If you’ve wanted to invest in Texas or southeastern US businesses, this could be a great opportunity for you. More than 5,200 private equity-sponsored companies in the region who may want to go public stand to benefit from this developing exchange. Alexa, play Megan thee Stallion’s “Money Good,” please.
I’m In The GM X Costco Car 🚘😱
Automobile manufacturer General Motors is trying to boost its slow electric vehicle sales by joining the most exclusive club in town—the Costco Auto Program.
Costco’s members-only auto program connects shoppers with dealerships to purchase new and pre-owned vehicles, offering deals and incentives for certain models.
Currently, Costco members are eligible for a $1,000 incentive if they lease or buy a new 2023 or 2024 Chevrolet model.
HYCU; If you’ve been eyeing a new GM electric vehicle, the Costco auto program could be a good move for you! GM North America president Marissa West said she was “bullish” on the Costco partnership, which might mean even more deals coming up as the auto manufacturer aims to edge out the competish with this move. Much like Charli XCX once said, vroom vroom! Let’s ride!
Commonly asked question: Veronique asks, “Hi Vivian, 55 years old woman, full time job, 401 K with boss, looking to go to an IRA, pros and cons?
Hi Veronique! So glad you’re looking into an IRA (Individual Retirement Account). Lucky for you, you are likely already familiar with how it works! A 401k and an IRA are both tax advantaged retirement accounts but essentially differ in where they are parked. A 401k is tied to your employer, while an IRA, as the name suggests (INDIVIDUAL retirement account), is tied to you, and you alone!
Big pros:
Contributions are tax deductible, meaning you will get a tax break for contributing to this account. Basically a bonus perk for doing a smart thing.
At your age, you can also make “catch-up contributions” allowing you to really supercharge your retirement funds.
Great way to save and invest for retirement & relatively easy to set up. Can be done in ~30 min via your computer or smartphone.
Cons:
Your money is locked up (except in certain emergency situations) until you’re 59.5 years old.
You do have to pay taxes on the back end when you start taking withdrawals.
The max you can currently contribute is $7,000 for those under 50 and $8,000 for those 50 and older. For many, this may not be enough, so you will likely need to supplement through other retirement savings as well (such as your 401k!).
Overall I’m a big fan of the IRA and think utilizing one to save for your retirement is a great idea!
Want to be featured in our Question Bank section?
Rich Tip of the Week: Should you rent or buy a home in 2024?
I feel decrepit and haggard, because what do you mean 2014 Tumblr-core pastel hair is back?
Apple will debut its own password manager in an attempt to compete with apps like 1Password and LastPass—so now you have to decide if you want Tim Cook and the little elves inside your iPhone to know even more about you.
Please leave a comment and tell me if you also cried to the Glen Powell Hollywood Reporter profile. I refuse to be the only one!
SEE YOU IN THE COMMENTS BESTIES