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By Alex Gailey, Bankrate.com (TNS)

A larger share of women than men aren’t saving for their future selves and could be losing out on hundreds of thousands of dollars over their lifetime as a result.

More than a quarter of women (26%) working full-time, part-time or looking for employment didn’t contribute to their retirement savings between August 2023 and 2024, compared to 16% of working men, according to Bankrate’s 2024 Retirement Savings Survey. A similar percentage of Black and Hispanic working women (24%) didn’t contribute to their retirement savings during that time, a slight improvement from last year (29%).

The reasons why women save less for retirement aren’t clear-cut. While the gender pay gap is part of the problem, research also suggests women feel misunderstood in the financial world, which may be driving their behavior. Generally, women are more likely to keep more of their savings in cash, feel less confident about their investment knowledge and report higher levels of financial stress. read more

By Anna Helhoski, NerdWallet

Consider this your election cheat sheet to find out what Vice President Kamala Harris and former President Donald Trump are promising to do as they vie for the nation’s highest office. Here’s where the candidates stand on top economic and personal finance issues.

Inflation

Both presidential candidates want to lower prices and slow inflation, but whether a president can directly do so is less certain. Inflation, as measured by the consumer price index, has already slowed to 2.4%, well off its pandemic-fueled peak.

Trump:

• Place tariffs on imports. Trump wants to place a 10% to 20% tariff on all foreign imports; up to 60% tariff on imports from China; and 100% to 200% imports on automobiles produced in Mexico. He says his tariffs would support U.S. manufacturing and raise revenue. But experts from all over the political spectrum say that his tariff plan is more likely to increase prices in the U.S.
• Lower gas prices. Trump has pledged to increase oil and gas production on federal lands. The president’s ability to lower gas prices is limited as the price at the pump is more directly influenced by global market forces.
• Weaken the power of the Federal Reserve. Trump says he wants to bring the Federal Reserve under the power of the president; experts say it could weaken the central bank’s credibility in making interest rate decisions.
• Cap credit card interest rates at around 10%. The average credit card interest rate is 21.51%, according to Federal Reserve data from May 2024. It would require Congress to enact and would likely face legal pushback.

Harris:

• Ban price gouging. Harris wants to create rules that would prevent corporate grocers from raising prices arbitrarily. The ban would require approval by Congress. Critics say her plan is mainly an election promise rather than a sound economic policy.
• Lower prescription drug costs. Harris plans to extend to all Americans a $35 cap on insulin and $2,000 cap on out-of-pocket expenses for seniors. She also wants to make it quicker and easier for Medicare and other federal programs to negotiate prescription drug prices. Experts say her plans could be effective in bringing down costs, but will face pushback from Big Pharma lobbyists.
• Increase the minimum wage. Harris says she would push to raise the federal minimum wage to at least $15 per hour, up from the current minimum wage of $7.25. The federal minimum wage hasn’t been touched since 2009 and raising it would require approval in Congress.

Dive deeper: How Harris and Trump Want to Battle Inflation and Lower Prices

Taxes

The campaign proposals that would most directly impact consumers are tax cuts and credits.

Trump:

• Extend tax cuts in his 2017 Tax Cuts and Jobs Act that are expiring at the end of next year. The TCJA includes estate tax cuts and individual income tax cuts.
• Replace personal income taxes with tariffs. His new plan would place a 10% across-the-board tariff on foreign imports with much more for China. More on that above.
• Lower the corporate tax rate by one percentage point. Trump wants to cut the corporate tax rate from 21% to 20%.
• Implement R&D tax credits for businesses. The tax credits would allow businesses to write off 100% of expenses in its first year, including machinery and equipment. It’s a reversal of his 2017 tax cuts that phased out write-offs for R&D expenses in a business’ first year.

Harris:

• Increase taxes for the wealthy. Harris wants to raise the net investment income tax up to 5% on those with incomes above $400,000. She also wants to increase the highest tax rate on long-term capital gains to 28% on taxable income above $1 million.
• Increase taxes for corporations. 
• Expand Child Tax Credit: Harris wants to increase the credit to $6,000 for children under the age of 1; $3,600 for children ages 2-5; and $3,000 for older children.
• Expand Earned Income Tax Credit for those filers who don’t claim children.
• Permanently extend the expanded premium tax credits for those who purchase health insurance through the health insurance marketplace.
• Increase tax incentives for small businesses. An increase in federal tax incentives from $5,000 to $50,000. The deduction would be available to new businesses until they turn a profit. The incentive feeds into her goal of creating 25 million new small businesses in the next four years.

No tax on tips: The candidates’ aims are vastly different, but there’s one proposal they both support: exempting workers from paying taxes on their tips. But experts say it’s just bad policy that doesn’t get to the fundamental needs of tipped workers.

Dive deeper: What Trump and Harris Have in Store for Your Taxes read more

By Craig Joseph, NerdWallet

Holiday airfare is down, but Americans are planning to spend more than ever on holiday travel.

A September 2024 report by online travel agency Kayak shows domestic holiday airfare is at its lowest level in three years. Compared to last year, Christmas and New Year’s flight prices are down 9%, while Thanksgiving flight prices are down 6%.

Consumers feeling the pinch from inflation and dwindling personal savings rates may rejoice. However, lower airfare doesn’t mean people are spending less on travel.

An October 2024 survey by NerdWallet found that nearly half of American adults plan to spend money on flights and hotel stays during the 2024 holiday season (between November 21, 2024 and January 8, 2025). These holiday travelers plan to spend $2,330, on average, on these expenses — nearly a 20% increase over 2023’s average of $1,947.

That’s a big jump in holiday travel spending. So where are those extra dollars going?

Higher hotel prices

Holiday hotel prices are up 4% compared to 2023 — $353 per night vs. $338 per night in 2023 — according to data from Kayak. For shorter hotel stays, that small price increase may not make a huge dent in someone’s budget. But during the holidays, when people might be planning longer stays and multi-day celebrations, those differences can add up. read more

I worked 34 years before I retired, and I have been retired from full-time work for 29 years. I have made some good decisions and some not so good, and I hope you can learn from both. I will discuss what I believe were good decisions first.

1. When you look for full-time employment, see if you can find an employer that offers a defined-benefit plan. Although most employers no longer offer defined benefit plans, unions are now being more aggressive and are insisting on them. Since I retired at 58, I have received over $700,000 in pension payments from my defined-benefit plan.

2. If your employer offers a defined-contribution plan, such as a 401(k), always contribute at least as much as is necessary to obtain the maximum employer match. By making maximum contributions to my plan, and receiving a 50% match, when I retired at age 58 the account was worth several hundred thousand dollars, which I rolled over into an IRA account.

3. Whenever your yearly taxable income is lower than usual, convert your traditional, non-Roth retirement plan into a Roth account. Try to avoid pushing your taxable income into a higher marginal tax bracket. read more

By Rachel Christian, Bankrate.com (TNS)

If you’re retired or planning to retire soon, it’s important to have a plan for your retirement income. For most people, Social Security will play a significant role in this plan, so staying up to date on the latest benefits information is crucial.

The Social Security Administration recently announced several key changes to the program for 2025, including its annual cost of living adjustment (COLA). Here are some key changes to Social Security happening next year – and what you need to know.

Watch for these 5 changes to Social Security in 2024

More than 72.5 million people depend on one of Social Security’s benefit programs, so annual changes to the program and its payouts are always highly anticipated.

This year’s cost-of-living adjustment is lower than last year’s 3.2 percent increase. Still, any additional income is a welcome boost for beneficiaries who live on fixed incomes. (If you need help developing a plan for your retirement income, you may want to consider hiring a financial advisor.) read more