Donald Trump is nearing the day he can cash out of Truth Social’s parent company, raising concerns of a potential sell-off that could hit the meme stock hard.

On paper, Trump’s stake in Trump Media and Technology Group (TMTG) is valued at $1.95 billion, which could help cover his mounting legal fines.

However, when he agreed to a reverse merger with Digital World Acquisition Company (DWAC) on March 25, he accepted a six-month lockup period, preventing him from selling his 115 million shares.

Trump owns 59% of TMTG, and any sale could tank the stock unless done in small batches.

With the lockup expiring in three weeks, investors are growing anxious.

Trump’s financial situation appears strained—he’s been selling Trump-themed sneakers, “God Bless the USA” Bibles, and now offering a piece of the suit he wore during his first debate with Joe Biden to collectors who purchase $1,500 worth of digital Trump trading cards.

On Wednesday, TMTG shares fell 6%, closing just below $17. This wipes out all gains for the year, while the S&P 500 has risen 16% over the same period.

TMTG officials did not respond when approached for a statement, while Trump left a Fortune request for comment both on Truth Social and X unanswered.

Loss-making TMTG still valued at 1,000 times its revenue

TMTG has now lost 80% of its value since hitting its all-time high of $79.38 on March 26, the stock’s first day of trading under the DJT ticker. That valued Trump’s personal stake at nearly $9.11 billion at the time.

The stock may continue to decline. Last week, CEO Devin Nunes and CFO Philip Juhan sold $2.5 million worth of shares, further dampening investor sentiment.

Despite its $3.4 billion market cap, the loss-making social media company is trading at over 1,000 times its annual revenue. Sales for the first half of the year were just $1.6 million, with deeply negative cash flow.

Wall Street analysts avoid TMTG due to its “meme stock” status, attracting little interest from professional investors. Even if analysts wanted to cover it, TMTG doesn’t publish key metrics, including its number of active, monetizable users.

The stock has mostly been viewed as a bet on Trump’s reelection. However, with polls tightening in key battleground states and Kamala Harris gaining momentum, that bet is now less certain.

November election outcome key to TMTG’s stock price

Trump has now been forced to return to Twitter (now X), where he has 10 times as many followers and a far larger audience, in order to reach potential voters.

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This further dilutes the value Truth Social has for users if they can access his content on other competitors’ platforms.

Should he lose in November, however, Truth Social’s importance going forward would be greatly diminished since Trump’s political career would likely be over.

John Rekenthaler, vice president of research at financial services firm Morningstar, told Quartz that buying shares in TMTG is synonymous with purchasing Trump’s personal brand.

“But he’s not going to have a brand,” he said last week, “if he loses a second straight presidential election.”

There is even a scenario by which Trump could sell his TMTG shares around September 20, some five days earlier, as long as they do not dip below $12.

Either way, there are bound to be legal complications involved in a sale since his son, Don Jr., is privy to material non-public information as a director, including its third-quarter performance.

The only way this stock overhang issue ends well for TMTG investors is if Trump manages to find a strategic investor in the company willing to acquire his stake in full.

This story was originally featured on Fortune.com

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If you’ve got more money, you’ve got more retirement options. High-income earners have substantial resources at their disposal, presenting the potential for massive gains and crushing losses. However, practical strategies and careful financial decisions can help you retire as a multi-millionaire. High-income earners often have different retirement needs than others. Here’s how much high-income earners are saving and how to get your savings on track.

If you’re falling behind on your retirement savings goals, a financial advisor can help you create a financial plan.

How Much High-Income Earners Have Saved for Retirement

A high-income earner is an individual or household that earns a substantial amount of money compared to the average income in the country. High-income earners in the United States make over $500,000, putting themselves in the top 1% of the wealthiest households in the country. For a comparison, the median household income in the United States in 2022 was $74,580. As a result, you must make over seven times the typical household income to be a high-income earner.

While saving for retirement has no one-size-fits-all answer, high-income earners usually save more because of their financial abilities. Specifically, high-income earners save $2.68 million by their mid-to-late sixties.

Remember, having a high income doesn’t automatically equate to having a secure retirement fund. Proper financial planning, budgeting and investing are crucial for anyone, regardless of income level, to ensure a comfortable retirement. Additionally, factors like lifestyle choices, debt levels and unexpected expenses can all impact how much an individual or household can save for retirement.

Average Retirement Savings By Age of High-Income Earners

High-income earners start with significant retirement savings and accumulate more throughout the decades.

Let’s take a look at how much each age group has saved for retirement in 2022. Data comes from the Federal Reserve Board and is based on the mean amount for each age group:

Based on the data, retirement savers under age 35 saved almost one-tenth as much as those 75 and older; and almost one-third as much as those between ages 35 and 44. Retirement savers between ages 65 and 74 saved the most — over 12 times more than those under age 35.

A financial advisor can help you build a plan for your income and net worth. Get matched with a financial advisor today.

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Where Your Retirement Savings Stand

Evaluating your current retirement savings is a crucial but challenging task as you work your way to your golden years. A detailed retirement plan incorporates your monthly budget, savings goals and lifestyle, among other factors.

For example, you might decide to save specific amounts when you reach a certain age, such as three times your salary by age 40. On the other hand, you could set one savings goal, such as $3 million by age 65.

Additionally, your savings method is foundational to your plan. You could save 10% of your salary every year or set a stringent monthly budget and dump as much as possible into various assets.

Remember, your investment strategy is as critical as the money you set aside. For instance, choosing low-fee investments, maxing out your accounts (401(k)s and IRAs), and automating savings will help boost your nest egg as you go. Furthermore, minimizing debt means you’ll have more to put towards retirement.

The essence of retirement is setting specific savings goals and following a disciplined approach to achieve them. That being said, financial obstacles (divorce, education for children, etc.) and temptations to spend more in the present can hinder anyone’s retirement savings plan. As a result, consulting a financial expert could help you create and execute your plan.

How to Get Your Savings on Track

High-income earners have unique opportunities and challenges when it comes to retirement planning. Here are four common strategies to help get your retirement savings on track:

• Maximize contributions to tax-advantaged accounts. Contribute the maximum allowable amount to your tax-advantaged retirement accounts. In 2023, the maximum annual contribution for your 401(k) is $22,500 ($23,000 in 2024); and $6,500 for your IRA ($7,000 in 2024). Additionally, catch-up contributions are available to savers age 50 or older, increasing maximum contributions by $7,500 for 401(k)s and $1,000 for IRAs in both 2023 and 2024.

• Consider non-qualified deferred compensation plans. Non-Qualified Deferred Compensation (NQDC) plans have no contribution limits and more flexible withdrawal rules. These plans are available only for executive-level roles high-income earners often occupy, and can offer these employees a unique tax advantage by allowing them to set aside significant portions of their income for retirement beyond a 401(k)’s limits.

• Expand your investment types. Open a brokerage account, buy real estate, or become a stakeholder in a small business. These alternatives could help diversify your portfolio and mitigate risk. Remember, each asset has specific tax implications.

• Avoid lifestyle inflation. This will involve making intentional financial choices to prevent your expenses from rising with your income. Start by setting clear financial goals, both short- and long-term, to give yourself a clear sense of direction. Create a budget to track your income and expenses, distinguishing between essential needs and discretionary spending. Automate your savings and investments so a portion of your income consistently goes towards your financial goals. Then review and adjust your budget to align it with your evolving financial situation and goals.

You can also consider speaking with a financial advisor if you are interested in professional advice for your circumstances and goals.

Bottom Line

High-income earners can save a lot of money. But, they will need to take effective steps to secure their financial future. Key steps include maximizing contributions to tax-advantaged accounts, considering non-qualified deferred compensation plans and diversifying investments.

Tips for High-Income Earners Saving for Retirement

• A comfortable retirement isn’t automatic, regardless of your income level. Fortunately, a financial advisor can help you tackle specific challenges for your retirement needs. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

• Taxes and lifestyle can drain your finances, drying up your savings capacity. Here’s where high earners lose most in these areas and how to counteract them.

• Keep an emergency fund on hand in case you run into unexpected expenses. An emergency fund should be liquid — in an account that isn’t at risk of significant fluctuation like the stock market. The tradeoff is that the value of liquid cash can be eroded by inflation. But a high-interest account allows you to earn compound interest. Compare savings accounts from these banks.

• Are you a financial advisor looking to grow your business? SmartAsset AMP helps advisors connect with leads and offers marketing automation solutions so you can spend more time making conversions. Learn more about SmartAsset AMP.

Photo credit: ©iStock.com/fizkes, ©iStock.com/szefei, ©iStock.com/brizmaker

The post How Much High-Income Earners Have Saved for Retirement appeared first on SmartReads by SmartAsset.

Everyone’s retirement is different, but we all have a common goal: ensuring our retirement savings last long enough.

The 4% rule is arguably the go-to guideline for determining how quickly you can spend your savings. It states that a retiree can withdraw 4% of their nest egg’s initial value annually, adjusted for inflation. In other words, someone who retires with $1 million would withdraw $40,000 annually, increasing it slightly every year to adjust for inflation.

It’s a good starting point for developing some basic frameworks but is hardly a retirement plan. The problem with painting with broad strokes is that you’ll never fill in the finer details.

There are some considerations when applying the 4% rule and some essential tips to ensure you have the right plan for your needs. Here is what you need to know.

The 4% rule has some issues

I’m not picking on the 4% rule, but people shouldn’t use it to plan their retirement finances. It’s a guideline, not an A-to-Z plan. Here are some potential problems with the 4% rule:

It doesn’t account for market volatility

One of the biggest problems with the 4% rule is it doesn’t account for the market volatility your nest egg could face. The stock market has historically averaged annual returns between 8% and 10%, but those year-to-year swings could be up or down 20% to 30% in any given year.

Suppose something happens and your nest egg takes a big hit the year you retire or shortly afterward; mathematically, you’ll deplete your savings faster. Luck plays a role in investing, which the 4% rule doesn’t account for very well.

Some living expenses could inflate faster

Shelter and healthcare are big-ticket living expenses for most retirees. Both have soared since the pandemic and projecting what those costs may look like years later in life is challenging.

Unfortunately, America’s soaring debt levels mean that future retirees, especially those with decades before retirement, shouldn’t assume that welfare programs like Medicare will cover as much as they do today. Whether healthcare, food, transportation, or housing, essential living expenses could realistically outrun the 4% rule.

It’s not specific to you

Lastly, the 4% is a general guide, not tailored to your financial situation. The typical U.S. worker retires between 63 and 65 with a median nest egg of $200,000. You might have more or less saved or retire earlier or later than the average.

You can get away with sloppy planning early in retirement but could face big problems if your savings dry up years later when you’re too old to work anymore. Additionally, you don’t want to scrimp and save your whole life only to leave a ton of money on the table because you lived too conservatively.

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Consider these potential changes

The 4% rule gives you a basic idea of your lifestyle in retirement, but you shouldn’t stop there. Consider these additional tips to help you live your best retirement possible.

Evaluate your timeline

The 4% rule aims to stretch savings for at least 30 years. However, the math may not add up. The average life expectancy in the U.S. is 77 years. In other words, the average person lives roughly 12 to 14 years after retirement. The 4% rule could be too conservative unless you’re retiring early. Consider building a retirement plan with multiple time frames in mind. You want to know your savings will last without overly restricting your lifestyle to the point it hurts your quality of life.

Revisit your investment strategy

Many people retire with less than they had hoped. However, your savings doesn’t stop growing once you retire. You may be able to help your portfolio grow through retirement by adjusting your investment strategy. The 4% rule assumes a portfolio that’s 60% stocks and 40% bonds. You should never take more risk than you’re comfortable with, but getting a little more aggressive could make a big difference in your retirement portfolio over the 10-plus years after you stop working.

Consider dynamic spending

Lastly, the 4% rule assumes you’ll withdraw roughly the same amount each year from your savings. As mentioned before, a market downturn could disrupt your retirement plans. If your finances allow it, consider a dynamic system where you withdraw lower amounts when the market declines and higher amounts when it is up. That could mean some simple lifestyle choices, like saving that big vacation for when the market has a good year or stretching that old car a little longer. These small changes could stretch your nest egg years longer.

Have questions? Consult the pros

Retirement planning is a complex topic. If you have questions or feel overwhelmed by the process, don’t hesitate to consult with a professional advisor. While it will cost you some money to get professional advice, the benefits of an effective retirement plan will far outweigh them.

Retirement planning is the financial foundation for a good chunk of your life. Skimping on preparation or taking retirement lightly only hurts you and can cost you thousands of dollars in taxes and opportunity costs. Knock your retirement plan out of the park by going beyond the 4% rule.

The $22,924 Social Security bonus most retirees completely overlook

If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. Simply click here to discover how to learn more about these strategies.

View the “Social Security secrets” »

The Motley Fool has a disclosure policy.

Forget the 4% Rule? Here’s What You Should Really Be Looking at During Retirement. was originally published by The Motley Fool

An Illinois-based trucking and logistics company, which contracted with the U.S. Postal Service to haul mail and had over 650 employees, including more than 480 drivers, abruptly ceased operations Thursday, according to sources familiar with the closure.

Former truck drivers for Midwest Transport Inc. (MTI), headquartered in Robinson, Illinois, told FreightWaves that they received telephone calls from their regional managers late Thursday notifying them the company was winding down operations.

As of publication on Friday, MTI has not issued a formal statement about what led to the closure. However, FreightWaves confirmed with some former senior managers and truck drivers who worked for the mail contractor that the company was ending operations. They did not want to be named in the article for fear of retaliation.

MTI, founded in 1980, operated key terminals in Greenup, Illinois; Harmony, Pennsylvania; Memphis, Tennessee; and two terminals in Tampa and Jacksonville, Florida, according to its website.

MTI had over 480 drivers and 428 power units, according to the Federal Motor Carrier Safety Administration’s SAFER website.

FMCSA data shows the company’s trucks had been inspected 244 times, and 65 had been placed out of service for a 27% out-of-service rate over the preceding 24-month period. That is significantly higher than the industry’s national average of around 22%.

MTI’s drivers had been inspected 564 times, and 16 were placed out of service over a two-year period, resulting in a nearly 3% out-of-service rate. That is less than half the industry’s national average of 7%, according to FMCSA.

The trucking company had 21 injuries and 42 tow-aways over the past 24 months.

According to the SAFER database, MTI was cited for acute/critical violations in two categories: controlled substances/alcohol and driver fitness.

A check on SAFER shows that MTI’s common, contract and broker authorities remain active. MTI had two compliance reviews on July 7 and July 25, according to FMCSA data.

As of publication Friday, MTI had not filed a notice of its impending closure in Illinois, Tennessee, Pennsylvania or Florida.

One longtime former MTI driver said he was surprised by the news the company was ceasing operations but said that drivers had started receiving notices over the past few months to ensure their log books were certified after each run and to watch their speed and improve their on-time performance.

“I don’t know what happened because we had a lot of postal contracts all over the U.S.,” a former MTI driver told FreightWaves. “I [don’t know if] the USPS is just finding out like us [that] the mail will be sitting on the docks on Monday.”

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A media spokesperson with the Postal Service did not immediately return FreightWaves’ request for comment.

This is a developing story.
Do you have a news tip or story to share? Send Clarissa Hawes an email or message @cage_writer on X, formerly Twitter. Your name will not be used without your permission.

The post Illinois trucking company with 480 drivers abruptly ceases operations  appeared first on FreightWaves.

WASHINGTON (Reuters) – The U.S. Treasury and Internal Revenue Service said on Friday that they have recovered $1.3 billion in unpaid taxes from wealthy individuals under new enforcement initiatives funded by $60 billion in IRS modernization spending from the climate-focused Inflation Reduction Act.

WHY IT’S IMPORTANT

Republicans in Congress have long vowed to rescind the 10-year IRS funding passed in 2022, arguing that it would unfairly harass Americans on their taxes. Republican presidential candidate Donald Trump vowed on Thursday to rescind all unspent funds from the Inflation Reduction Act, which include billions of dollars earmarked for the IRS.

The IRS has planned to spend about $10.6 billion of those funds through end of the 2024 fiscal year, which concludes on Sept. 30, leaving nearly $50 billion that could be recouped. But budget forecasters say that doing so would increase the federal budget deficit by more than $100 billion over a decade because the agency would forego stepped-up enforcement.

BY THE NUMBERS:

The Treasury said that in the first six months of a new initiative to target 125,000 wealthy individuals who have not filed tax returns since 2017, it has collected $172 million from 21,000 non-filing taxpayers.

Another initiative to target wealthy individuals with more than $1 million in income and $250,000 in unpaid, recognized tax debts has brought in $1.1 billion to Treasury coffers.

KEY QUOTES

U.S. Treasury Secretary Janet Yellen said the audit rate for millionaires fell by 80% due to budget cuts at the IRS.

“During the previous (Trump) administration, as audit rates on high-income taxpayers fell, the share of audits on taxpayers with incomes under $200,000 increased,” Yellen said in remarks to be delivered at an IRS service center in Austin, Texas. “In 2019, the top one percent of Americans was estimated to owe over one-fifth of unpaid taxes, leaving ordinary Americans to shoulder the burden.”

(Reporting by David Lawder; Editing by Alex Richardson)