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Selling your home could boost your nest egg — but is it worth it?

Selling your home could boost your nest egg — but is it worth it?

By Kate Ashford | NerdWallet

A 2023 report from investment firm Vanguard estimates that about a quarter of Americans age 60 and over could move to a cheaper housing market and use the equity in their homes to upsize their retirement savings — making retirement more secure and enjoyable.

Those with home prices near the national median could have cleared about $99,000 in equity, on average, in 2019 (the year the data was gathered). Homeowners in top-priced markets could have cleared an impressive $346,000, on average.

“We’re at a peak of where housing prices have been, ever, in history,” says Matthew Gottshall, a certified financial planner in Westlake, Ohio. “It’s been more and more common for people to weigh the option of, ‘Do I downsize? Do I take the equity that’s grown in my house?’”

Here are the steps to take as you consider the option.

Assess the market

Selling (and potentially downsizing) your home and pocketing the equity is a good strategy in a market where you can make it work. This is easier in pricier housing areas, when you may be able to trade your high-value home for a smaller place in a more affordable market. Vanguard’s analysis noted that relocators in California, for instance, were more successful at clearing equity in their homes than those in lower-priced markets like New Mexico and Texas. read more

Sold a home recently? Here’s what you’ll get from the $418 million Realtor settlement

Sold a home recently? Here’s what you’ll get from the $418 million Realtor settlement

Sold a home in the last four years?

Congratulations. You’re entitled to a piece of the $418 million Realtor settlement fund.

But don’t expect a big windfall.

Since you will be among 21 million other Americans who are part of the “settlement class,” the amount per seller — after deducting attorneys’ fees — could be as low as $13.

That’s a pittance compared with the $18,000-$22,000 commission Southern California sellers typically pay buyers’ agents — on top of what they paid their own agents.

“It’s not going to be a lot of money,” said Jack Miller, president and chief executive of Orange County-based consulting firm T3 Sixty. “It’s not really a financial thing. The rules changes are the bigger deal here.”

See also: Accused of price-fixing, Realtors talk change at annual convention in Anaheim

The size of the seller payout is one of four key takeaways from the 107-page settlement reached this month between plaintiffs in more than 20 class-action lawsuits and the National Association of Realtors. read more

Do you want fries with that? Krispy Kreme doughnuts are coming to McDonald’s

Do you want fries with that? Krispy Kreme doughnuts are coming to McDonald’s

NEW YORK (AP) — Krispy Kreme and McDonald’s are getting together over breakfast.

The doughnut chain and the fast food giant unveiled plans Tuesday to offer Krispy Kreme products at McDonald’s locations across the United States. A phased rollout is expected to start later this year, the companies said, with availability at participating restaurants nationwide expected by the end of 2026.

McDonald’s didn’t specify how many of its 13,500 U.S. locations — 95% of which are franchised — would be participating in the deal. But in a prepared statement, Krispy Kreme President and CEO Josh Charlesworth said the partnership would give customers “unprecedented daily access” to the Charlotte, North Carolina-based company’s glazed, filled and frosted treats.

“By making Kreme Krispy accessible to fans nationwide through this partnership, we expect to more than double our points of access by the end of 2026,” Charlesworth said.

Tariq Hassan, chief marketing and customer experience officer for McDonald’s USA, said the deal marked a chance to “unlock new business opportunities” in the Chicago-based chain’s breakfast category and the sweet items it sells throughout the day. read more

Trump’s social media company gains in its first day of trading on Nasdaq

Trump’s social media company gains in its first day of trading on Nasdaq

NEW YORK (AP) — Shares of Donald Trump’s social media company rose about 16% in the first day of trading on the Nasdaq, boosting the value of Trump’s large stake in the company as well as the smaller holdings of fans who purchased shares as a show of support for the former president.

Trump Media & Technology Group Corp. merged Monday with a blank-check compan y called Digital World Acquisition Corp. Trump Media, which runs the social media platform Truth Social, has now taken Digital World’s place on the Nasdaq stock exchange.

Shares closed at $57.99, up 16.1%, giving the company a market value of $7.85 billion. At one point the stock was up about 59%. Trump holds a nearly 60% ownership stake in the company, now worth about $4.6 billion.

Many of those investing in Trump Media are small-time investors either trying to support Trump or aiming to cash in on the mania, instead of big institutional and professional investors. Those shareholders helped the stock of Digital World more than double this year in anticipation of the merger going through. read more

The Savings Game: How self-employed can deduct health care premiums

The Savings Game: How self-employed can deduct health care premiums

A few months ago, in response to a question from a reader, I discussed the deduction of health care premiums. I received many responses, and several readers raised issues related to this deduction.

Many self-employed individuals were unaware of this deduction or misunderstood how to take it. So in this column, I will provide more details.

Most individuals no longer itemize and are under the impression that because they use the standard deduction, they no longer can deduct any health care expenses on their tax return. However, self-employed individuals are allowed to deduct premiums for health care.

These deductions are not included on Schedule C. They must be included on Schedule 1, Form 1040.

All premiums you pay for medical and dental insurance are deductible. Premiums for Medicare Parts B, C and D are allowable deductions. Long-term care premiums that are IRS-tax qualified are deductible.

You can also deduct premiums paid for your spouse, dependents and non-dependents under age 27.

There are deduction limits associated with premiums for long-term health care insurance. Following are the limits for 2023 and 2024. read more