Category Archives: Financial Independence

(Bloomberg) -- Leonard Green & Partners has shared more than $2 billion of profits with employees of companies it backs, a move that won praise this week on the sidelines of the Milken Institute Global Conference.

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In 2021 alone, over 7,500 portfolio-company employees participated in profit-sharing or other distributions in addition to their regular compensation, said John Danhakl, a managing partner at the Los Angeles-based private equity firm. We believe in the stakeholder model where the employees who contribute to our companies performances share in the successes and the value they help create.

Employees of companies including Mister Car Wash Inc., SRS Distribution and Charter Next Generation are among those that received a piece of the profits, and more than $1 billion was shared with workers outside of the executive suite. Leonard Green took Mister Car Wash public in June and remains its biggest shareholder.

The firm, with more than $50 billion of assets under management, said it has been a early participant in the conscious capitalism movement and seeks to partner with companies and management teams that believe in shared success, which can include providing equity stakes and sale bonuses.

Some industry executives who attended the Milken conference in Beverly Hills congratulated Jonathan Sokoloff, also a Leonard Green managing partner, as word of its largesse spread.

It is the most gratifying thing weve ever done at Leonard Green over our 30-plus year history, Sokoloff said. We have a multitude of stories of employees at our companies who have achieved life-changing financial independence that many thought would never be possible, and our goal is to increase the impact we can have.

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Other alternative asset managers also share profits with employees of portfolio companies. Earlier this year, New York-based KKR & Co. disbursed $500 million of profits from the sale of manufacturer Ingersoll Rand Inc. to 16,000 workers at the Davidson, North Carolina-based industrial-equipment manufacturer.

Read more: KKR Hands $500 Million to Ingersoll Rand Workers After 162% Gain

Beginning in 2011, KKR implemented an employee ownership model within its industrials portfolio. This enables profit-sharing with staff, including hourly workers, in at least 11 portfolio companies including Charter Next Generation, which it co-owns with Leonard Green, a KKR spokeswoman said.

(Updates with KKR profit-sharing in last paragraph.)

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Leonard Green Gives $2 Billion to Workers of Portfolio Firms - Yahoo Finance

This new creative inspires women to say "save it" to the old-fashioned advice and empty excuses that have surrounded women and money for years. The messaging empowers them to take control of their futures by investing in their independence. The unapologetic approach of the campaign reframes how women think about retirement savings and challenges them to actively save 2%, or 2% more, of their income toward their retirement. This is the latest effort in AARP and the Ad Council's broader "Saving for Retirement" program, which launched in July 2017.

"For so long women have been told antiquated advice about saving money. Many women are unfortunately told to hold back when it comes to talking about money," said Michelle Hillman, Chief Campaign Development Officer at the Ad Council. "This latest iteration of the 'Saving for Retirement' campaign focuses on shutting down negative and false stigmas related to women and money, with the goal of urging women to take action and utilize the helpful resources offered on WeSaySaveIt.org, to better prepare for their retirement."

The COVID-19 pandemic's disproportionate impact on women has accelerated the need for this message. Debt (52%), expenses (48%) and retirement savings (42%) are the financial issues that women most commonly expect to tackle over the next 12 months. Of those who expect to work on their finances over the next 12 months, close to three in four (73%) expect to reach out for financial information or help, including 28% who expect to reach out to financial professionals and 25% who expect to reach out to family or friends.

"It's time to change the narrative about women and money. The 'We Say Save It' campaign pushes back on those who perpetuate myths that women are 'bad with money'," said Mary Liz Burns, Communications Strategies Director at AARP. "That false narrative does not line up with the strength women show every day. Whether it be juggling family and finances during the pandemic or taking on new challenges, women always find a way to rise to the occasion. Now is the time to focus on their financial futures, and we're here with resources and support along their journey."

The PSAs direct viewers to WeSaySaveIt.org where they can find resources to help boost their retirement savings, including a free online three-minute chat with "Avo," a digital retirement coach that offers users a free personalized action plan for saving for their retirement. Women are also encouraged to visit the site for more information about the "2% Challenge" and the intention behind saving at least 2%, or 2% more, of their current income toward their retirement.

The new creative was created pro bono by integrated creative company 22squared. The PSAs feature women representative of the campaign's target audience as they rally their fellow females to join them in taking action toward securing their futures in retirement. 22squared's approach uses powerful messaging to inspire women to have the audacity to invest in themselves and contribute to the larger cultural shift away from outdated, gender-biased advice about money. The work was created by women-led teams at the Ad Council, AARP and 22squared, and will appear in donated media nationwide in TV, digital, out of home, print and social-optimized video formats.

"Our intention is to create inclusivespace for all women to take action, regardless of race, nationality, gender expression or marital status," said Erica Hoholick, President & COO of 22squared. "Working alongside the Ad Council and AARP to address this inequality, and to go beyond advertising and instead create lasting change is what our mission is all about."

Since its July 2017 launch, AARP and the Ad Council's "Saving for Retirement" campaign has received over $90.6 million in donated media support. Hundreds of thousands of people have chatted with Avo on the campaign's website resulting in more than 335,900 personalized retirement savings action plans.

AARPAARP is the nation's largest nonprofit, nonpartisan organization dedicated to empowering people 50 and older to choose how they live as they age. With a nationwide presence and nearly 38 million members, AARP strengthens communities and advocates for what matters most to families: health security, financial stability and personal fulfillment. AARP also produces the nation's largest circulation publications: AARP The Magazine and AARP Bulletin. To learn more, visit http://www.aarp.org, http://www.aarp.org/espanolor follow @AARP, @AARPenEspanol@AARPadvocatesand @AliadosAdelante on social media.

The Ad CouncilThe Ad Council is where creativity and causes converge. The non-profit organization brings together the most creative minds in advertising, media, technology and marketing to address many of the nation's most important causes. The Ad Council has created many of the most iconic campaigns in advertising history. Friends Don't Let Friends Drive Drunk. Smokey Bear. Love Has No Labels.

The Ad Council's innovative social good campaigns raise awareness, inspire action and save lives. To learn more, visitAdCouncil.org, follow the Ad Council's communities onFacebookandTwitter, and view the creative onYouTube.

22squared22squared is an integrated creative company--a fiercely-independent family of 320 with the freedom to follow curiosity wherever it may lead. 22squared is 100% employee-owned, which means their growth is intrinsically tied to the growth of their partners. And their partners are some of the most iconic brands including the Ad Council, AdventHealth, Amazon Studios, Baskin-Robbins, Columbia Care, CDC, LA Pride, McGraw-Hill, NAACP, Publix Super Markets, and Southeast Toyota Distributors. For more information about 22squared, please visit http://www.22squared.com. You can also follow the agency's goings-on on Facebook, Instagramand LinkedIn.

Data Source:[1] AARP (2021). How Women's Financial Experiences During the Pandemic Shape Future Outlook. Available at: https://www.aarp.org/content/dam/aarp/research/surveys_statistics/econ/2021/financial-expectations-pandemic-women.doi.10.26419-2Fres.00450.003.pdf

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Women Find Inspiration to Reclaim Financial Independence in New PSAs from AARP and the Ad Council - PRNewswire

Editorial IndependenceWe want to help you make more informed decisions. Some links on this page clearly marked may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

As an individual investor, it can feel overwhelming to choose among individual stocks, index funds, and other investment options to build your retirement savings.

High-performing assets earn the most money, and the old saying is true: higher risk can lead to higher rewards. But as you approach retirement age, you should tailor your portfolio to your age and have less risky assets.

Thats where target date funds come in. Target date funds are a mix of stocks and bonds in a single fund that automatically become less risky over time.

Theyre a simple way of investing with a single fund that adjusts the asset allocation mix over time to minimize risk, explains Fernanda Novaes, Portfolio Manager at Intercontinental Wealth Advisors.

If your investment goal is to save for financial independence, you might want to invest in a way that matches your risk tolerance without any effort on your part, which is exactly what target date funds do.

So what are target date funds? Lets look at what they are and how they work in practice.

When retirement is many years away, investing in riskier options like stocks and equities is what experts suggest. Then, as retirement gets closer, you should gradually introduce less risky assets, such as bonds and treasury notes. Target date funds do this for you automatically, with no rebalancing on your part.

If you choose a target date fund, choose one thats closest to your anticipated retirement year. Our experts recommend broad-market index funds for most young investors.

Target date funds are what we call a fund of funds, meaning theyre a mix of other funds that are chosen for you, like an S&P 500 or a Russell 2000 fund. If you dont have the time or expertise to choose, it can be better to let the experts take care of it, adds Novaes.

When selecting a target date fund, youll typically select the date that most closely matches your anticipated retirement year.

If you want to retire in 40 years, youll want a 2060 target date fund. At todays point in time, it will start with more stock and equity exposure and less fixed-income exposure, says Michelle Katzen, Managing Director, certified financial planner, and CDFA at HCR Wealth Advisors. Over time, that fixed-income exposure will become a larger part of that investment bucket while the equity piece reduces, Katzen says.

The fund in this example would first focus on high-risk stocks with the potential for higher returns. As 2060 approaches, those investments will roll into lower-risk bonds that are less risky and with lower returns. Katzen calls this the glide path. Its a mandate on how your fund will be invested so its very clear on day one that each year, it will get more conservative by reducing equity allocation and increasing fixed income allocation.

Over the years, those shifting allocations might look like:

The exact percentages will depend on the fund you choose, but the idea is to create an automatic path toward the year of your retirement.

Index funds are another investment option that offer broad exposure to the market without having to choose individual investments. But unlike target date funds, index funds track the overall market, a certain industry, or a specific stock type.

The difference is in the rebalancing.

Index funds arent going to adjust the asset allocation for you. Whatever the fund is, its always going to remain in that asset. Theyre not going to take into account that you need money in 30 years for retirement like a target date fund would, says Novaes.

If you choose a high-risk index fund, it will always be high-risk and potentially have higher returns.

Compare that with a target date fund which does change risk level. Getting away from higher-risk investments in the final years before retirement means you can lose out on higher returns toward the end of the fund, but its keeping your investment safe, which is what its intended to do.

The best choice for you is one that matches your investment goals, investment timeline, and risk tolerance level. A good investment strategy asks for diversification and theres no one-size-fits all solution.

In fact, millionaire investor and founder of Personal Finance Club Jeremy Schneider says if he could redo his entire $4.5 million investment portfolio again, hed only invest in target date funds.

The target date index fund is actually, truly the most optimal, simple, low-cost investment strategy, Schneider tells NextAdvisor.

If you dont know where to start or want to invest without thinking about your portfolio, a target date fund is an excellent choice. You can always shift to other funds whenever you want.

The most important thing is to start investing and if target date funds provide the introduction, then thats great.

If you make the decision to invest with a target date fund, the best choice is one that most closely matches your anticipated retirement year. For example, if you think youll retire around 2057, a 2060 fund would make the most sense for your timeline.

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Target Date Funds Take the Guesswork Out of Retirement Investing. Heres How - NextAdvisor

SIFMA Foundation's annual event will take place on October 27th at Cipriani 25 Broadway in lower Manhattan

Published: Oct. 26, 2021 at 8:00 AM CDT|Updated: 8 hours ago

NEW YORK, Oct.26,2021 /PRNewswire/ --SIFMA and the SIFMA Foundationwill host their annual Tribute Dinner at Cipriani 25 Broadway in lower Manhattan on October 27 from 6 pm 9 pm. TheFoundation'sannualdinner isanevening to celebrate and raise awareness for theimportanceof youth financial education and literacy and the 20 million youth served to date by the SIFMA Foundation.

The dinner will also serve tohonor Kathleen Murphy, President, Personal Investing, Fidelity Investments, for her leadership and commitment to the financial industry and financial education, and James Reynolds Jr., Founder, Chairman, & CEO, Loop Capital, for his longstanding commitment and dedication to helping millions of young people become financially capable. The Foundation will also pay a posthumous tribute to Paul E. Purcell, Former Chairman, President & CEO, Baird, for his lifetime of leadership in the area of education and youth financial literacy.

"This is an excellent opportunity to honor three luminaries,"said Melanie Mortimer, President of the SIFMA Foundation. "Kathy, Jim and Paul havesupported the Foundation's mission in providing financial education for young people of all backgrounds through innovative programsthat promotefinancial independence and real-world learning. Moreover, they serve as role models and as sterling representatives for young people of all backgrounds aspiring to careers in the financial services industry."

Mortimer noted that now, more than ever, "it is critical to develop financial literacy for American youth," because only one-third of adult Americans can pass a simple financial literacy test and only 24% of millennials have basic financial knowledge, according to a study conducted by FINRA, the Financial Industry Regulatory Authority. Particularly alarming is that rate of financial literacy among Blacks and Hispanics falls below that number.

"That just doesn't add up if we are truly committed to economic mobility and a secure future, especially for individuals living in marginalized communities," Mortimer said. "One major purpose of the SIFMA Foundation is making sure youth of all backgrounds have access to effective ways to learn about how financial markets work."

Kathleen Murphy concurs about the essentiality of this purpose. She said, "I am exceptionally delightedto behonored at this year's SIFMA Foundation Tribute Dinner. The SIFMA Foundationhas always done an incredible job in providingfinancial education programs and tools that strengthen economic opportunity acrossallcommunities."

"As a Chair and Officer on the SIFMA Board, I know directly about the impact the Foundation continues to have infostering knowledge and understanding of the financial markets for individuals of all backgrounds, and especially Black and Brown youth,"saidReynolds.

Baird's former Chairman, President & CEO, Paul E. Purcell, was committed to advancing educational access.

"We'd like to thank the SIFMA Foundation for recognizing Paul's contribution to our industry and his overarching commitment to education," said Steve Booth, Baird Chairman, President & CEO. "Paul had a special calling - and that was helping under-served students. He firmly believed we have an obligation to ensure everyone regardless of where they live or their circumstances, has access to a quality education."

Murphy is a nationally recognized thought leader and speaker on such vital topics as women investing and empowerment, financial literacy, client experience, digital transformation, talent, and leadership.

Reynolds runs the largest minority-owned financial services firm and one of the largest privately-held investment banks in the United States. He has been a leader advocating for diversity, inclusion, equity and belonging in the workplace.

About the SIFMA Foundation for Investor Education

The SIFMA Foundation is dedicated to fostering knowledge and understanding of the financial markets for individuals of all backgrounds, with a focus on youth. Drawing on the involvement and expertise of educators and the financial industry, the SIFMA Foundation provides financial education programs and tools that strengthen economic opportunities across communities and increase individuals' access to the benefits of the global marketplace. Notable Foundation programs include The Stock Market Game, which has enabled more than 20 million students to become financially prepared for life, the InvestWrite national essay competition, the Capitol Hill Challenge, and Invest It Forward. For more information on the work of the SIFMA Foundation, visit Facebook,YouTube,@SIFMAFoundation,LinkedIn,Instagram.

About SIFMA

SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry's nearly 1 million employees, we advocate on legislation, regulation and business policy, affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit http://www.sifma.org.

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SIFMA and the SIFMA Foundation to honor Kathleen Murphy, James Reynolds, Jr. and Paul E. Purcell at the 2021 SIFMA Foundation Tribute Dinner - KWCH

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The Financial Independence Retire Early movement, typically referred to by its acronym FIRE, has been a popular discussion for the past few years. After all, who wouldnt want to be financially independent, to the point where early retirement was a viable option? But like any financial decision, there are various consequences that may be overlooked. When it comes to retiring early, one of those repercussions is the effect it may have on your Social Security benefits. Heres a look at some of the things to consider regarding your Social Security if youre considering retiring early.

Find Out: Jaw-Dropping Stats About the State of Retirement in AmericaSee: The Average Retirement Age in Every State

One of the main problems with FIRE is that it puts a large distance between a worker and Social Security retirement benefits. For example, if you retire at age 40, youve got at least 22 years until you can start claiming Social Security retirement benefits, and your full retirement age is an even greater 27 years away. While you may not be depending on Social Security to fund your retirement, thats a long time to wait if you find yourself falling short with your savings. Its also a long time to expect the nest egg youve built at age 40 to last without some type of supplemental income.

Related: 35 Retirement Mistakes People Make

Although you may have done the math and decided that your early retirement nest egg is enough to last your entire life, there are decades of uncertainty in those projections before you reach your government-supplied lifeline. A few large unexpected expenses, such as medical bills, home improvements or lawsuits, could be enough to derail your plan.

Read: Why Its Harder To Save For Retirement Today Than 50 Years Ago

Your Social Security benefits are based on a calculation that incorporates your 35 top earning years as a worker. If you retire at age 40, for example, you wont have 35 years of income to report to the Social Security Administration. This means your retirement benefits formula will incorporate a number of years of zero earnings. The result is that retiring early, before what are most peoples peak earnings years, will no doubt result in smaller Social Security retirement benefits for you. In many cases, this reduction could amount to $1,000 per month or more.

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See: 10 Signs Youre Not Saving Enough for Retirement

Its no secret that the Social Security fund has some long-term structural problems that may reduce future payments. Theres no way around the fact that people are living longer, and the workforce to sustain payouts for older Americans simply cant keep up. Depending on what legislation Congress enacts over the coming decades, the Social Security fund may become fully funded once again, or it may remain on its current path toward depletion.

Current projections show that the Social Security trust fund will be completely tapped out by 2033. While this doesnt mean Social Security will end, it does mean that payouts will have to be matched to incoming tax revenue, rather than being supplemented from the trust fund. Thus, by 2033, expectations are that Social Security benefits will have to be cut by 24%. This is an important area to watch if youre retiring early and counting on Social Security to help fund your golden years.

Watch Out: 15 Retirement Mistakes and Why Theyll Shrink Your Nest Egg

Fortunately, if you are on the path to retire early, it means youll have plenty of time to make adjustments to your retirement savings plan to ensure you maximize your Social Security benefits.

One option is to defer claiming Social Security until at least your full retirement age, which for most current workers is age 67. If you can hold off claiming benefits until youre 70, your benefits will increase even more, to the tune of 8% per year for those born in 1943 or later.

Another way to increase your ultimate Social Security retirement benefit is to work longer. Even though youre retired early, theres nothing wrong with doing some part-time work in a field you love. Not only will you improve your lifelong cash flow, youll continue to increase your Social Security retirement benefit. Even a small amount of income is better in terms of accumulating retirement benefits than posting years and years of zero income in your earnings record.

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What You Need To Know About Social Security If You Plan To Retire Early - Yahoo Finance

Published: Oct. 25, 2021 at 9:15 AM EDT

BOSTON, Oct. 25, 2021 /PRNewswire/ --Carefull, the first service built to organize and protect older adults' daily finances, today announced a partnership with Boston-based, The Cooperative Bank (TCB) to provide its customers with safe money monitoring technology.

Carefull is thrilled to become a Financial Caregiving partner to TCB, on this cutting-edge service for seniors. The partnership is purpose-built for aging adults and the families who support them.

Carefull's artificial intelligence platform will help TCB's senior customers by analyzing checking, savings and credit card accounts for late or missed payments, behavior change and mistakes, unusual banking activity, plus more than 30 other issues that can impact older adults' finances, from cash transfers to charitable contributions that unknowingly recur. Users of the technology - including the seniors themselves, select family members and caregivers can receive notifications if any fraud or issues are detected.

Through the partnership, TCB will strive to support its senior customers to maintain their financial independence while also giving their "financial caregiver" family members peace of mind. Going beyond typical banking, TCB's Carefull service will also enable robust communication among family members who are involved in the financial safeguarding process.

Additionally, other trusted family members and financial professionals can be added to their "Circle" of support to collaborate within the Carefull service and resolve money issues together.

"With $24 trillion of generational wealth transfer now in motion, the financial services industry is now awake to the 45 million Americans who are financial caregivers for aging adults," said Todd Rovak, a Carefull co-founder, "The TCB team has moved quickly and with intention to impact its customer base, not only to serve it well but to grow it by serving entire families."

"This issue really resonated with me," said John Battaglia, President and CEO of TCB. "Many of us have had personal experiences with our parents or in-laws, where we took over the household account after finding that bills were not being paid, or they were double paying due to some memory issues. When I heard about this product, I could relate to it very well and I know exactly what people are going through," continued Battaglia.

"Senior financial fraud is a serious issue for us all," said Pete Lee, SVP and CIO of TCB. There's a whole life cycle in terms of financial caregiving, and that's what we appreciate about this service and that it targets so many stages of that life cycle. We were shown a concept of the platform and were very impressed by how it could aid the underserved eldercare community and target the devastating effect of financial abuse. Vulnerable adults should be protected at all costs from this kind of exploitation. With this partnership, TCB will be the first bank to offer this service in the Nation," continued Lee.

TCB customers can use the Carefull app or desktop service for financial accounts, credit and identity monitoring at no additional charge as part of the products and services they receive from the bank. They will also have access to Carefull's financial caregiving tools, advice and content, including Carefull's community forum and Financial Caregiving Roadmap.

About CarefullCarefull is the first digital platform built to protect the daily finances of older adults, along with the 45 million U.S. adults managing the daily finances of an older loved one. Founded in 2019, Carefull's technology integrates senior-specific financial monitoring, identity theft protection, communication, and how-to content, replacing the ad hoc paper pile, spreadsheets, and bill stack that today defines the experience of adults caring for someone else's money. Carefull believes that creating safer, smarter tools for financial caregiving isn't only about money - it's about relentlessly simplifying the awkward tangle that happens when money and family come together. For more information visitwww.GetCarefull.com.

About The Cooperative BankFounded in 1898, The Cooperative Bank (TCB) is a full-service community bank committed to meeting the financial needs of individuals, families, and small businesses. Offering up-to-date products, competitive interest rates and the highest quality personalized service. TCB has assets totaling $480 million and provides banking services to over 8,400 customers.

With cutting-edge personal and business banking services, TCB aims to serve and be Boston's Neighborhood Bank. Specializing in residential & commercial real estate and business lending throughout Massachusetts, TCB has branches in Roslindale, West Roxbury, Charlestown and Jamaica Plain. For more information, please visitwww.thecooperativebank.com/carefull, or call 857-203-9598.

Media Contact: Stephen Marcinuk steve@intelligentrelations.com

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Carefull To Provide Safe Money Monitoring for The Cooperative Bank's Senior Customers - WSAZ-TV

Gov. John Carney on Thursday, Oct. 21, signed into law House Bill 123, legislation sponsored by state Rep. Krista Griffith and state Senate Majority Whip Elizabeth Tizzy Lockman that creates the Delaware Fostering Independence Through Education Tuition Waiver Program to support students in foster care as they work toward a higher education degree.

The new program requires Delaware State University, Delaware Tech Community College and the University of Delaware to waive all tuition and fees, including room and board, for any youth who has aged out or spent at least one year in foster care as a teenager.

Making sure all of Delawares students have an opportunity to succeed has been our top priority, said Carney. This legislation will ensure some of our most vulnerable children are supported when pursuing higher education. Thank you to Reps. Griffith and Longhurst, Sens. Lockman and Poore, the Delaware Department of Services for Children, Youth & Their Families, and other advocates who carried this important legislation over the finish line. Our children will be better off because of it.

Under the legislation, eligible students must apply for any and all financial aid before being granted the tuition waiver for any leftover tuition and fees. Students may use the tuition waiver until they turn 27.

Investing in our students dreams has a ripple effect across Delaware. With this tuition waiver program, our youth in care have a chance to leap over obstacles as they enter adulthood. Im thankful for the support of our governor and the Delaware Legislature to make this program a reality, said Josette Manning, Cabinet Secretary of the Delaware Department of Services for Children, Youth & Their Families (DSCYF). Our youth who experience foster care are incredibly resilient, despite facing a disproportionate number of challenges in their young lives, and we can do our part as a state to support them on their journey.

Prior to this legislation being signed, youth experiencing foster care only had access to the federal Chafee Educational & Training Voucher program and the Ivyane D.F. Davis Memorial Scholarship Fund, a state-funded scholarship program. With the tuition waiver program in place, youth who have experienced foster care can pursue their dreams without worrying about how to pay for college or where to find housing.

We know that young people who have been through the foster care system as teens and have aged out experience worse outcomes overall than their peers in terms of educational attainment, full-time employment, stable housing and financial independence, said Griffith, lead House sponsor of HB 123. We can do more to make sure our students in foster care thrive as adults by removing the financial barrier to higher education. This will encourage youth in foster care to go out and earn a college degree, giving them tools they need to identify and obtain a path forward to achieving their dreams.

Young people who have worked hard to get to college after spending significant time in Delawares foster care system deserve every ounce of our support, said Lockman. I want to thank Rep. Krista Griffith and Gov. John Carney for recognizing that fact and taking action today to remove barriers that prevent some of our most vulnerable young people from achieving their goals, realizing their potential, and embarking on an education that will lead them to a brighter future.

According to DSCYF, it is estimated that about 15 to 20 incoming freshmen will likely take advantage of tuition waivers under House Bill 123 each year. Carney supported the legislation in his 2020 State of the State Address.

This legislation is so important, said Mayda Berrios, student at Delaware State University. Although Im graduating this year, I am so happy that some many young people will be able to benefit from this. Thanks to the members of the General Assembly who pushed this beyond the Youth Advisory Council and made this into a bill today so that the future generation of foster youth who are experiencing hardships can now experience higher education.

Additional information on the tuition waiver program can be found online at https://kids.delaware.gov/family-services/foster-care-tuition-waiver-program/.

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Program waives tuition for youth aging out of foster care - Coastal Point

Can you remember the last time you used your bank card to pay for your oat-milk cortado or withdraw $50 for that cash-only restaurant? If you are a sighted person like me, you probably dont, because that transaction was so automatic, and so embedded in our daily routines, that we dont even have to think twice about it. For sight-impaired people, the process isnt that seamless.

Around 1 billion people worldwide have moderate or severe vision impairments. Of those people, 49 million are blind. For these individuals, figuring out which bank card to useand how to use itcan be a real struggle. Tonight, Mastercard announced a new design that helps sight-impaired people orient their bank card and quickly determine whether they are using a credit card, a debit card, or a prepaid card, all thanks to one simple design element. The so-called Touch Cards feature one of three different notches on the shorter end of the card: a round indentation for credit cards, a square indentation for debit cards, and a triangular indentation for prepaid cards. It may look inconsequential, but it marks an important step in the companys quest for inclusivity.

[Image: Mastercard]The solution can be very, very simple, but its anything but simplistic, says Raja Rajamannar, Mastercards chief marketing and communications officer, as well as the companys healthcare director. Rajamannar worked with the Royal National Institute of Blind People in the U.K. to ensure that the notches were usableand differentiable enoughfor the visually impaired population. For example, the team quickly dismissed using Braille as an option on the surface of the card because only one in ten blind people can read Braille (and almost 90 percent of Americas blind children are not being taught Braille).

The card will be available to U.S. customers in early 2022. The notches are particularly timely because more and more cards are moving away from embossed details to flat, more streamlined designs. Before the advent of digital technology and electronic point-of-sale terminals, card information was recorded manually (fun fact, the device that was used to swipe cards was called a knuckle buster). In this day and age, the relevance has gone, says Rajamannar.

The Touch Card isnt the first of Mastercards efforts to create a more inclusive experience. Over the past few years, the company has equipped more than 150 million checkout points worldwide with a signature audio jingleor what Rajamannar calls a sonic acceptance soundthat signals the end of a card transaction. If you are a person who is sight-impaired, when you hear the sound, you know your transaction has gone through successfully, he explains. And if you are blessed with good eyesight, getting confirmation thats audio and visual, its reassuring, a peace of mind.

In June 2020, Mastercard also introduced True Name, which allows the transgender and nonbinary community to choose the name that appears on their cards without the requirement of a legal name change. The card is now available in 32 countries, including in American banks like Citi and the U.K. bank Monzo. For many in the LGBTQ community, the name on their bank card does not reflect their true identity. Theres a very simple solution, says Rajamannar. Put the name the person desires on the card, end of story.

Now, Mastercard is making an equally simple proposition: Put a notch on the side of the card and allow those with sight impairments to gain more financial independence. End of story.

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A simple change makes this new Mastercard easier to use for blind and sight-impaired people - Fast Company

The Cuts financial advice columnist Charlotte Cowles answers readers personal questions about personal finance. Email your money conundrums tomytwocents@nymag.com

Photo: Courtesy of Jamila Souffrant

In 2014, Jamila Souffrant had a revelation while sitting in traffic during her daily commute from Brooklyn to New Jersey: She had to quit her job. But walking away from a secure corporate paycheck wouldnt be easy. She was pregnant, and she and her husband had recently taken out a mortgage to buy their first home. I saw my life flash before my eyes, and I thought, Im stuck, and I cannot keep doing this, she says. So I got home and started Googling, How do I retire early?

Her search turned up podcasts and blogs about personal finance. I learned about all these regular people who werent rich and didnt have extraordinary careers, but who were able to reach financial independence by being frugal, investing their money, and saving, she says. Slowly, I started gaining knowledge.

Now a mother of three, Souffrant runs her own business, Journey to Launch, to educate others about the process of gaining control of their finances. (While shes hardly retired, the success of her company did allow her to leave her corporate job even earlier than she hoped.) Here, she describes the steps to financial independence that everyone can take, no matter what their starting point is.

How did you change your own finances in order to quit your job?Before I got into all this, my husband and I werent saving much at all. When I look back, Im like, What were we spending on? We had a lot of leaks in our budget. The first year that I got serious about saving, we made some big changes. For instance, we were both driving luxury cars, and we traded them for much cheaper Hondas that we still have. But we also made a lot of smaller, day-to-day tweaks. We made a budget and put limits on how much we spent on nice-to-haves like eating out. And it really paid off we saved and invested $85,000 together in that year. Thats a huge leap, and I know thats not feasible for most people. But I think everyone can still benefit from the same tactics we used, like making sure every dollar has a job to do, and checking your budget and your balances regularly.

I like that youve broken down the process of financial independence into five different stages. Theres an entry point for everyone, even if you have a ton of debt. Can you describe the stages?I wanted to create different stages because I think everyone should have unique goals for themselves, and they shouldnt feel bad about where they are its just the starting point.

The first stage is what I call the explorer stage youre trying to get your bearings, and youre working on financial stability. People in this stage usually dont feel in control of their money. Theyre spending more than theyre bringing in, and maybe theyre in the red every month and feel overwhelmed. Like, Wow, I need to get it together, but I dont know how. They need to focus on getting organized and finding a system to help them keep track of their money. Their goal is to be able to afford their expenses and minimum debt payments, so that theyre not going further into debt.

Once youre financially stable, then you can move on to stage two, where you work on debt freedom. If youve got consumer debt, you want to get rid of it as fast as possible. So youre finding money in your budget to pay off your credit cards and any personal loans or car loans. You dont need to get rid of student loans or mortgages in this stage, because interest rates on those are usually much lower, so its fine to take longer to pay them off. When I started this process for myself, I was in stage two/three, because we didnt have a lot of debt but we werent totally rid of it, either.

Once youre out of consumer debt, then you get to stage three. This is where youre working on financial security. You have no debt besides your mortgage or student loans or anything else you strategically want to have. So you work on saving and investing and building assets. At this point, you get to decide what to do with your money it doesnt all have to go to credit cards, and you can put it toward your investments or your 401(k). Youre building wealth.

The fourth stage depends on what your saving and investing targets are. You have work flexibility or youre in the process of securing it. Youre building and preserving your assets. You can leave a job and take time off if you want, whether thats to have a baby, travel, or start a business. It doesnt necessarily mean youre financially independent and you have all the money you need forever. But you have enough of a cushion that if something isnt working for you a job, a relationship, a boss you dont have to stay in that situation just because of money. Thats the stage Im currently in. I have the flexibility to take a break from working if I want, and I am in control of how much I work.

Stage five is where you reach financial independence, and you dont have to actively work if you dont want to. You have enough money saved and invested that you can live off the dividends, and work is completely optional. So you can just focus on preserving your wealth and doing whatever is fulfilling for you.

A lot of people might stay in one stage for years or even forever. Is that okay?Theres no rule of thumb of how long each stage takes you. Plus, your goals or circumstances can change within the stages. Like, how much money you think you need to quit that job or feel secure that may shift. Or you could hit a setback.

A lot of people in the first two stages get a little frustrated because theyre like, Well, I did the math and it looks like Ill be paying off this debt for the next five years. And Im like, thats okay! Every step still gives you more freedom. And its worth taking those steps, even if the biggest goals seem impossible. Every persons entry point and process is so unique.

A lot of people get intimidated by financial planning because they worry theyll be told to cut back on things they enjoy. How do you deal with that?Your lifestyle is a big factor in your financial plan, but thats not a bad thing. Some people can become financially independent with much less money, because they dont mind spending less. Thats not the case for me; my lifestyle, and what I imagine for myself and for my kids, costs more. So I want and need more money. Its also important for everyone to set their own targets for the life that they want to live. Whats that tradeoff between work and not working? Whats the tradeoff between what youll do for money, and whats not worth it for you? Do you need $50,000 a year to feel comfortable, or do you need a lot more than that?

What about people who dont know? That seems like a really overwhelming decision like, I have no idea what amount of money would make me feel comfortable and secure versus insecure.Sometimes its easier to think about the life that you want. Forget about money, forget about expectations of society or friends and family; what would allow you to live how you want to live? These lifestyle goals can be incremental. Maybe your goal is that you want to be able to pay for your kids to do an after-school activity, and then you want to be able to pick them up instead of working a second shift. What do you need to do to make that happen? Or maybe you want to take at least two vacations a year, and you want to be able to go somewhere nice. Or maybe you want to stop worrying about your credit-card bill. And from that goal, you can look at what it means in terms of money, and how much.

Some people think personal finance is very simple, because it comes down to your income and your expenses. But obviously, theres so much to unpack in those two things. The difference between your income and your expenses gives you that gap in which you can meet your goals. But you cant just flip a switch in your mind and make that happen.

Im glad you arent saying that all it takes to pay off your credit-card bill is to stop buying lattes.A lot of people are already doing so much and working so hard, and asking them to give up something they really enjoy is just not going to happen. So you have to find a tradeoff. Like, I love to go out to eat, and I dont want to cut that out. My options are to cut it back a little bit, or I find something else to cut that doesnt matter to me as much. And it takes time. Some people need to figure out what works for them and what doesnt.

Most people are never going to be able to retire early its a big goal for them to be able to retire at all. And that can be really discouraging, especially when they see stories like yours. What kind of advice can you offer those people?I dont blame them for feeling that way. I do think that the standard, pull-yourself-up-by-your-bootstraps advice is not helpful for a lot of people because their circumstances are out of their control. I know what that looks like. Im from Jamaica and I was raised by a single mom. I still have siblings in Jamaica, and they probably cant imagine not working, or the amounts of money that Im talking about. It would be nave and wrong of me to say that financial independence is possible for everyone.

Logistically, the numbers might not line up. So theres privilege to this, and its important to acknowledge that. But its also important to recognize that theres freedom at every financial stage. Like, becoming financially stable can be a huge accomplishment. Even if thats as far as you get, thats something to be proud of. And feeling in control of your money is hugely powerful in and of itself. I dont care if thats your only goal. Its still worthy.

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How to Improve Your Finances, No Matter How Messy They Are - The Cut

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The Financial Independence Retire Early movement, typically referred to by its acronym FIRE, has been a popular discussion for the past few years. After all, who wouldnt want to be financially independent, to the point where early retirement was a viable option? But like any financial decision, there are various consequences that may be overlooked. When it comes to retiring early, one of those repercussions is the effect it may have on your Social Security benefits. Heres a look at some of the things to consider regarding your Social Security if youre considering retiring early.

Find Out:Jaw-Dropping Stats About the State of Retirement in AmericaSee:The Average Retirement Age in Every State

One of the main problems with FIRE is that it puts a large distance between a worker and Social Security retirement benefits. For example, if you retire at age 40, youve got at least 22 years until you can start claiming Social Security retirement benefits, and your full retirement age is an even greater 27 years away. While you may not be depending on Social Security to fund your retirement, thats a long time to wait if you find yourself falling short with your savings. Its also a long time to expect the nest egg youve built at age 40 to last without some type of supplemental income.

Related:35 Retirement Mistakes People Make

Although you may have done the math and decided that your early retirement nest egg is enough to last your entire life, there are decades of uncertainty in those projections before you reach your government-supplied lifeline. A few large unexpected expenses, such as medical bills, home improvements or lawsuits, could be enough to derail your plan.

Your Social Security benefits are based on a calculation that incorporates your 35 top earning years as a worker. If you retire at age 40, for example, you wont have 35 years of income to report to the Social Security Administration. This means your retirement benefits formula will incorporate a number of years of zero earnings. The result is that retiring early, before what are most peoples peak earnings years, will no doubt result in smaller Social Security retirement benefits for you. In many cases, this reduction could amount to $1,000 per month or more.

Its no secret that the Social Security fund has some long-term structural problems that may reduce future payments. Theres no way around the fact that people are living longer, and the workforce to sustain payouts for older Americans simply cant keep up. Depending on what legislation Congress enacts over the coming decades, the Social Security fund may become fully funded once again, or it may remain on its current path toward depletion.

Current projections show that the Social Security trust fund will be completely tapped out by 2033. While this doesnt mean Social Security will end, it does mean that payouts will have to be matched to incoming tax revenue, rather than being supplemented from the trust fund. Thus, by 2033, expectations are that Social Security benefits will have to be cut by 24%.This is an important area to watch if youre retiring early and counting on Social Security to help fund your golden years.

Fortunately, if you are on the path to retire early, it means youll have plenty of time to make adjustments to your retirement savings plan to ensure you maximize your Social Security benefits.

One option is to defer claiming Social Security until at least your full retirement age, which for most current workers is age 67. If you can hold off claiming benefits until youre 70, your benefits will increase even more, to the tune of 8% per year for those born in 1943 or later.

Another way to increase your ultimate Social Security retirement benefit is to work longer. Even though youre retired early, theres nothing wrong with doing some part-time work in a field you love. Not only will you improve your lifelong cash flow, youll continue to increase your Social Security retirement benefit. Even a small amount of income is better in terms of accumulating retirement benefits than posting years and years of zero income in your earnings record.

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Last updated: Oct. 21, 2021

After earning a B.A. in English with a Specialization in Business from UCLA, John Csiszar worked in the financial services industry as a registered representative for 18 years. Along the way, Csiszar earned both Certified Financial Planner and Registered Investment Adviser designations, in addition to being licensed as a life agent, while working for both a major Wall Street wirehouse and for his own investment advisory firm. During his time as an advisor, Csiszar managed over $100 million in client assets while providing individualized investment plans for hundreds of clients.

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What People Who Retire Early Need To Know About Social Security - GOBankingRates