Welcome to Kiplinger's My First $1 Million series, in which we hear from people who have made $1 million.

They're sharing how they did it and what they're doing with it. This time, we hear from a 52-year-old senior category manager in aluminum in Southeast Michigan. He's married and still working, making $175,000 after starting at $40,000 in 1996.

See our earlier profiles, including a writer in New England, a literacy interventionist in Colorado, a semiretired entrepreneur in Nashville and an events industry CEO in Northern New Jersey. (See all of the profiles here.)

Each profile features one person or couple, who will always be completely anonymous to readers, answering questions to help our readers learn from their experience.

These features are intended to provide a window into how different people build their savings — they're not intended to provide financial advice.

To learn what these millionaires have taught us, check out the articles 5 Key Insights We Learned From 50 Millionaires and 5 Things 50 Millionaires Wish They'd Known Before They Retired.

And to hear more about My First $1 Million, you can check out this podcast with bestselling author and tax attorney Toby Mathis:

The Basics

How did you make your first $1 million?

Slow and steady wins the race! A small inheritance came at the same time as my first $1 million.

Shortly after getting married in 2004 — my wife became a U.S. citizen in 2006 — we created a will to assign her as beneficiary, and it was on that day, about 10 years after college graduation, that the lawyer looked us in the eyes, very impressed at the $112,000 in my 401(k), and he congratulated me on being a millionaire…

I was a bit confused, but he was the first, and not the last, to explain that money doubles on average every 10 years (Rule of 72).

So I learned that the $112,000 would be $1 million by the time I retire at 67. It was an eye-opening and rewarding experience — and the day when we took to budgeting more seriously.

What are you doing with the money?

Hired a financial adviser to give guidance and suggest new products.

The Fun Stuff

Did you do anything to celebrate?

A high-five in the kitchen, then we increased our 401(k) and Roth contributions and set a new goal to pursue $4 million net worth.

What is the best part of making $1 million?

Being able to relax about the strict budget, but not too much. Still, the goal is to live happy without debt.

Did your life change?

No. Not at all. We are halfway to our end goal of $4 million and probably have 10 years to go?

I'd be 62 and the wife 56, if all goes to plan, and we will then start a new chapter.

We plan to keep busy volunteering at local schools, church and nonprofit groups we support. Maybe we'll call it semiretired, but we'll be giving back time to our community.

Does anyone know you're a millionaire?

Our kids, but we don't really think about it, let alone talk about it.

We are the silent millionaires next door. Our neighbors' houses are just 15 feet away.

Any plans to retire early?

What's "early" mean? We are pursuing a $4 million net worth, and when the time comes, it comes.

Retirement is not an age to us — it's having a net worth with enough to leave behind a legacy.

Looking Back

Anything you would do differently?

I would have chosen memories over material purchases. I'd have taken my parents on vacations with me instead of driving a new Jeep.

What advice would you give to your younger self?

Don't go into debt just to look cool with friends. Friends who care about fancy cars don't matter, and those who matter won't care what you drive.

Also, learn how to DIY — with everything! Over time, I've learned how to do my own brake jobs, finished my own basement, remodeled my kitchen and bathrooms, repair my own car.

I had a 2012 Dodge Avenger with 100,000 miles (paid off early in 2016) that I gifted to my daughter for a college beater. Every week that she drives it instead of a new lease is a $100 bill back into her pocket — every week!

Then we accrued the monthly payments until my wife and I had cash to buy a new 2024 Chevy Trailblazer with no car payment.

Did you read any books that helped you on your journey?

Not really … maybe … likely. Nothing memorable, though.

I prefer the quick five-minute articles from Kiplinger, Money, Fidelity, Vanguard and Fortune.

Did you work with a financial adviser?

Yes. Bassem Moez at Fortress Financial.

Did anyone help you early on?

My dad. He was laid off in the '80s, and it was tough times. Having cheese and crackers was one of my favorite dinners.

Yet, through his hardship, the family of seven endured, and we all learned about saving money for a rainy day, having an emergency fund, working hard and putting in effort, avoiding debt — he was a guiding light to all of us kids.

He retired in the '90s with a full pension and a 401(k) that he was one of the first ever to have access to.

He took time at the dinner table to give all of us kids savings and other financial advice.

Looking Ahead

Plans for your next $1 million?

Using a financial adviser to accelerate investments in non-typical products that are low risk but offer after-tax Roth-like income streams that we can use first, before tapping our 401(k)s, when taxes will be due.

Any advice for others trying to make their first $1 million?

Create a budget and stick to it. Debt is enemy No. 1.

Consider community college for the first two years, then transfer credits, or consider joining the military to help pay for college, or find a profession, like being an electrician or a plumber, instead of getting a $100,000 degree.

I worked while attending college (engineering degree) and lived at home mostly, so it took me five years to finish a four-year degree, but I graduated with minimal school debt and nearly five years of experience, so I hit the ground running at a young age. No regrets there!

I find it sickening that younger generations rack up $100,000 in school loans just to say they graduated from a fancy college that most hiring managers don't care as much about as the three C's — compatibility, competence and commitment.

Do you have an estate plan?

Yes, the full package, everything. After closing my parents' estate, I quickly learned about estate planning and trusts and wealth preservation for beneficiaries.

I have five siblings — I'm the second youngest — and being the executor/personal representative for my parents' estate, I learned a lot and recommend everyone set up a trust.

What are you glad you know before you retire?

Life is short. Health and fitness matter much more than I'd admit when I was in my 30s and 40s raising kids. I let my body slip a bit.

At least I'm addressing it now in my 50s so I can hopefully live to my 90s and actually travel and enjoy my early retirement years while the joints are still flexible.

What do you wish you'd known …

When you first started saving? Planning a more diversified portfolio for tax planning in early retirement, having both 401(k) and Roth after-tax plans to optimize withdrawal strategy.

Maybe I'd have found some rental properties, but my budget would have only allowed me to buy into areas where the renters would be higher risk. I feared I'd spend more money on court evictions and repairs, so I avoided it.

When you first started investing? You will not miss the money invested. A proper budget and small sacrifices matter more than delaying your retirement savings. Start early is the first step!

When you first started working with a financial professional? Interview with at least three in person. Choosing a like-minded adviser is a good idea. The one we liked the most was in his 70s. He admitted he was trying to sell his business, so we avoided him, but I liked him the most.

Then, meet quarterly — a good adviser should not be churning products but explaining changes.

Anything you'd like to add?

I mentioned other things I don't regret, but another thing is skipping an expensive wedding — that's another debt young couples can avoid. People who matter won't care about your venue, and those who do care don't matter. Kick them to the curb and find new friends that matter.

If you have made $1 million or more and would like to be anonymously featured in a future My First $1 Million profile, please fill out and submit this Google Form or send an email to MyFirstMillion@futurenet.com to receive the questions. We welcome all stories that add up to $1 million or more in your accounts, although we will use discretion in which stories we choose to publish, to ensure we share a diversity of experiences. We also might want to verify that you really do have $1 million. Your answers may be edited for clarity.

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When Jude and Matt Bell got engaged, they faced their first major argument: minimalist or floral dinnerware? As a money-management writer, Matt notes that these small decisions often reveal deeper differences you bring into a marriage.

After decades of disagreements, you’d think couples would have mastered the art of compromise by retirement age. Alas, that doesn’t seem to be the case for many. Studies show that more than one third of divorces today occur between people 50 and older — what’s often called "gray divorce."

The good news, financial experts say, is that the same money decisions that strain a marriage can also strengthen it. While money may not buy a happy marriage in retirement, these financial moves can help keep partners aligned.

1. Build a plan that you both believe in

What works best to keep couples together might not be found in a therapist’s office or in the bedroom. Rather, it sits on a printed page or screen.

"One of the biggest things that keeps couples together in retirement is having a financial plan they both understand and believe in," says Nathan Sebesta, CFP® and founder of Access Wealth Strategies.

The confidence a plan provides is measurable. According to Fidelity’s 2026 State of Retirement Planning study, Americans with a financial plan in place are more than twice as likely as their peers (83% vs 38%) to feel confident about their retirement prospects.

Bell agrees a plan is invaluable, especially when spouses disagree about how quickly to spend down their savings, and says it’s often worth working with an adviser who can bring objectivity.

"The ideal is to create a plan where your agreed-upon lifestyle needs are met for the rest of your lives," he says.

2. Go on a "money date"

A plan only works if couples keep talking. And talking about money, specifically, is something many couples avoid. In fact, the Fidelity Investments Couples & Money study found that 49% of couples steer clear of financial conversations to head off arguments.

Bell’s fix is what he calls "money dates." "Get out of the house and away from all the distractions. And then talk about money," he says. "What’s working? What isn’t working? What would you like to pursue and what will it take financially to get there? Establishing the habit of talking about money will be so good for your marriage. It’ll keep you aligned and working as a team."

3. Talk about what money means, not just what it costs

As with the artistic design of dinnerware, what couples argue about is often deeper than the dollars.

"One of the biggest mistakes couples make in retirement is assuming they’re arguing about money when they’re actually arguing about what money represents," says Laura Mattia, author, CFP® and financial adviser at Wealth Enhancement. "One spouse’s desire to spend may reflect a desire for experiences, freedom or making the most of healthy years ahead. The other spouse’s reluctance to spend is often rooted in a need for security and fear of becoming financially vulnerable later in life."

The healthiest couples, Mattia says, don’t start by asking, "Can we afford it?" They start by asking, "What are we each trying to accomplish?" As she puts it: "The breakthrough happens when couples stop debating the money and start discussing the values and fears underneath it."

4. Commit to full transparency

A potential relationship killer at any stage of marriage is financial infidelity. And many people take it seriously: a Bankrate survey found 43% of U.S. adults believe keeping financial secrets is at least as bad as physical cheating. Yet nearly half of couples admit they don’t know everything about their partner’s finances.

Sebesta advocates for complete transparency, though he points out that the financial accounts themselves matter less than the openness. "You don’t have to combine every account, but both spouses should know where everything is, how the household finances work and what happens if something happens to the other," he says.

5. Build in financial margin and agree on how fast to spend it down

"How fast do we spend this down?" can become a major marital question in retirement. One spouse wants to enjoy the money now; the other fears outliving it. Even couples who've saved diligently can find themselves at odds over how to enjoy it. A Western & Southern Financial Group survey found just 43% of married Americans completely agreed on what retirement would look like.

Bell’s antidote is margin, a gap between income and essential expenses. Living primarily on one income early in his marriage created that cushion, and the same principle carries into retirement. "For anyone planning for retirement, build margin into your plan," he says. "That means creating a plan that doesn’t require everything to go perfectly. That’ll keep stress low and flexibility high."

But he cautions against being so conservative that couples miss out. "You don’t want to run out of money, but you also don’t want to die with so much in reserve that you missed out on some things that would have mattered to you," he says. One approach Bell favors is "giving while you're living," such as helping adult children with a down payment on a home so you get to enjoy watching the impact.

Mattia frames the balancing act as a shift in perspective. "Common ground emerges when couples stop treating retirement as a purely financial transition and start treating it as a life transition," she says.

6. Invest in purpose and in the marriage itself

Retirement can strip away a major source of identity and structure: work. One peer-reviewed study found that fully retired people reported a significantly lower sense of purpose than those still working or partially retired.

Bell calls lost purpose "a huge factor" in late-life struggles. His advice is to decide, before retiring, how you’ll continue to use your skills and passions. "Just because you’re no longer drawing a paycheck doesn’t mean you're not needed," he says.

The same intentionality applies to the marriage itself. "If you want to be good at marriage, do the same," he says. "Go on a marriage retreat. Read books about marriage together." He points to research suggesting that couples can get the most joy per dollar from spending on shared experiences.

Catherine Valega, CFP® and adviser at Green Bee Advisory, suggests couples map out those experiences deliberately. Do the ambitious travel while you have the energy, she advises, and plan and budget for how you’ll want to spend time with family as you age. "Think of retirement as a starting line, not an end line," she says. "You could be spending 40 years in this phase of life."

In the end, a lasting marriage is built on navigating decisions large and small, right down to the pattern on the plates. Whose turn it is to wash those plates, on the other hand, is one problem money will never solve.

Read More

• The Rule of Two Lives in Retirement: What Couples Should Know
• The New Average Divorce Rate By Age: Are You in the Risk Zone?
• Should Fully Funded Retirees Invest Like 30-Year-Olds?
• The 'Die With Zero' Rule of Retirement

You've only been shopping for an hour, but as you walk up to your car in the parking lot, you're shocked to find damage to its bumper and scrapes along one side.

Someone has clearly hit your car in the parking lot, and then they drove away without leaving any contact information.

What should you do? And what insurance coverage applies if your parked car is damaged in a hit-and-run? Taking the right steps can improve your chances of finding the driver and help you navigate the insurance claims process.

What to do immediately after discovering the damage

It's important to carefully document the damage at the scene, so don't move your car. Photograph the damage and the surrounding area in the parking lot. Look for any debris or paint transfer that might help identify the vehicle that hit your car.

Check for witnesses who may have seen what happened. Many businesses have surveillance cameras in parking lots, so check with nearby businesses to see if they have cameras that might have caught the incident.

Contact the police and file an accident report to document what happened. Many insurance companies require a copy of the police report before they'll process your claim. Ask the responding officer for their name and badge number, and find out how you can obtain a copy of the report.

Should you file an insurance claim?

If you're able to identify the driver who hit your car, their liability insurance is generally responsible for paying for your vehicle's repairs. But if you can't identify the driver, the situation becomes more complicated.

Many insurers treat this type of incident as a hit-and-run. Depending on your policy, your own insurance may help cover the repair costs.

Before filing a claim, compare the estimated repair costs with your deductible. It's also worth considering that filing a claim could lead to higher insurance premiums, depending on your insurer, state and claims history.

In some cases, paying for the repairs out of pocket may make more financial sense. For example, if your deductible is $1,000 and the repairs are estimated at $1,100, filing a claim would save you only $100 before factoring in the potential impact on your premiums.

On the other hand, if your deductible is $1,000 and the damage is estimated to cost $3,000 to repair, filing a claim could substantially reduce your out-of-pocket costs.

What insurance covers a parked car hit-and-run?

Only certain types of auto insurance can help cover damage if your parked car is hit in a hit-and-run.

Collision coverage typically pays to repair your vehicle after an accident, regardless of who caused it. If you can't identify the driver who hit your parked car, you may be able to file a claim under your collision coverage, though you'll likely have to pay your deductible.

Uninsured motorist property damage (UMPD) is optional coverage in some states. Depending on where you live and the terms of your policy, it may help pay for repairs if the at-fault driver is uninsured or leaves the scene. However, not every state or insurer covers hit-and-run accidents under UMPD, so it's important to review your policy.

Liability insurance generally won't cover damage to your own vehicle. Instead, it's designed to pay for injuries or property damage you cause to others if you're at fault in an accident.

If you're concerned about the financial impact of a parking lot hit-and-run, review your policy to see whether you have collision coverage or other protections that would help pay for repairs. It's a good idea to shop around for insurance and make sure you've got the right coverage at the right price.

Use the Bankrate tool below to gather quotes and compare coverage:

Will filing a claim raise your insurance premiums?

In some cases, filing a claim after a hit-and-run parking lot accident may raise your insurance premiums. The decision depends on your insurer, state and claims history. Some insurance companies will increase your insurance premiums any time you file a claim, even if you weren't at fault.

Rate increases may be more significant if you've filed a certain number of claims within a particular period, and you might feel the effect of those rate increases for years.

Since policies vary between different insurance companies, it's a good idea to ask your insurer about their policy before you proceed with a claim.

Can security cameras help identify the driver?

Identifying the driver may help you avoid filing a claim against your own insurance coverage, saving you money on repair costs and potential insurance premium hikes. Security cameras may help you identify the driver after a car accident, so check with the store you were in to see if they have surveillance footage.

If you plan to collect security camera footage, it’s important to act quickly. Home security systems often delete footage within seven to 30 days, while commercial systems tend to maintain footage for 30 to 90 days.

Be proactive and ask for footage promptly to avoid any chance of it being deleted.

What if someone left a note?

If the driver leaves a note, it may include their contact and insurance information. You can contact their insurance company to verify the policy and begin the claims process.

You can also notify your own insurance company and provide the other driver's information. Your insurer can work directly with the at-fault driver's insurance company to seek payment for your vehicle's repairs.

How to reduce the chances of future parking lot damage

How and where you park may reduce the chance of your vehicle being damaged in a parking lot. Make sure your vehicle is always fully within the painted lines and try to avoid parking in the high-traffic areas that are closest to the store.

If you have a vehicle with large side mirrors, fold the mirrors in when you park to help prevent collisions. You can reduce the chance of someone hitting your vehicle by parking next to a curb or cart return so there's only room for one vehicle to park directly next to you. When parking at night, choose a well-lit area of the parking lot to ensure your vehicle is easily visible.

You may also want to invest in a dash cam with a parking mode for your vehicle. These cameras automatically start recording if they detect motion or impact to your vehicle, hopefully capturing footage of the other vehicle that damages your car.

No one expects to return to a damaged car, but knowing what to do can make the situation easier to navigate. Reviewing your auto insurance coverage, parking strategically and understanding the claims process can help you protect both your finances and your vehicle.

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I grew up in a time when it felt possible to figure things out on your own. It was before smartphones and online tutorials. If something broke, we learned how to fix it. If we wanted to learn something, we found a way.

That mindset is still alive and well today, although we have more access to information than any generation before us. Whether we're repairing a vehicle, researching a medical diagnosis or learning a new skill, the answer is often just a few clicks away.

That same confidence has served many people well in their financial lives. They learned how to budget, save, invest and build wealth.

However, retirement introduces a different challenge altogether. The challenges of retirement can often leave someone who is typically "good with money" feeling overwhelmed and vulnerable.

Why does retirement shift the goalposts?

Many people who consider themselves financially adept have spent their working years focused on one primary objective: Growth. They have worked hard, saved consistently, invested diligently and delayed gratification.

For many, that process built on discipline, knowledge and consistency has enabled them to accumulate meaningful retirement savings, pay down debt, raise families and build successful careers.

Retirement, however, changes the approach entirely. This is the point in the journey when three financial disciplines begin to intersect: Income, investments and taxes.

During our working years, these areas often operate independently. But in retirement, when people are in the distribution phase rather than the accumulation phase, they become interconnected.

The transition from accumulating wealth to coordinating wealth is one of the most overlooked and important challenges in personal finance.

Income

Income planning in retirement asks a different question than accumulation planning. The goal shifts from maximizing account balances to answering a much more practical question: "How am I going to get paid?"

Income planning becomes essential for creating a sustainable paycheck from assets that may need to last 30 years or more.

Investments

Investment planning also changes during retirement. During the growth phase, throughout your working years, market declines can often be viewed as temporary setbacks or even opportunities to invest at a discount.

But during retirement, the timing of losses matters. The same market decline that felt insignificant at age 40 can feel very different when withdrawals are occurring simultaneously. Protecting savings becomes increasingly important when regular contributions and dollar-cost averaging are no longer part of the equation.

Taxes

Then there is tax planning. For many retirees, taxes become more complicated.

• IRA withdrawals can affect tax brackets
• Tax brackets can affect how much Social Security becomes taxable
• Income can influence Medicare premiums for several years
• Decisions made today may affect surviving spouses and even the tax burden left to children

Making the pieces fit

In retirement, a decision in one area often affects the other two.

• If you increase withdrawals, taxes may rise
• Increase taxable income and Social Security taxation or Medicare premiums may change
• Reduce investment risk and future income potential may be affected

Everything becomes connected.

I've noticed a pattern among people approaching retirement. Many arrive with spreadsheets, account statements and years of disciplined saving behind them. They know what they've accumulated, but they're uncertain about how all the pieces fit together.

Questions begin to surface, such as:

• How much can I safely spend?
• When should I claim Social Security?
• Should I prioritize reducing taxes or maximizing income?
• How much investment risk should I still be taking?
• What happens if one spouse dies first?
• How will today's decisions affect my children tomorrow?

What makes these questions so unsettling is that they rarely have simple answers. Instead, the answers come only through developing careful, intentional strategies. And the reality is, in this space, there isn't a practice round.

During our working years, progress is relatively easy to measure. We receive a paycheck. We watch account balances grow. We contributed more this year than we did last year. Success is naturally measured by accumulation.

But retirement changes the scoreboard.

The questions become less about growth and more about sustainability. Instead of asking, "How much have I saved?" people begin asking, "Will what I've saved be enough?" The focus shifts from building wealth to making decisions that support a desired lifestyle for decades.

So many decisions

For those staring into the fog of retirement, uncertainty often has less to do with the size of a portfolio and more to do with the number of decisions that suddenly appear. The closer retirement gets, the more interconnected those decisions become.

What was once a straightforward objective — save and invest — becomes a series of questions involving income, taxes, risk, healthcare costs, legacy goals and lifestyle choices.

Understanding how those pieces work together often becomes more important than any individual investment selection.

You may be "good with money," but this season of life may leave you with more questions than ever.

However, having questions and needing clarity doesn't make someone bad with money.

Rather, it is a sign that the realities of retirement are coming into focus. And at this moment, making wise decisions is paramount in preserving the income, freedom and lifestyle that often take decades to build.

Retirement asks us to think differently about wealth. It is no longer measured solely by account balances or annual returns. It is measured by the ability of our resources to support the life we want to live.

Income, investments and taxes each play an important role. Yet their true value is realized only when they work together.

Dan Dunkin contributed to this article.

This appearance in Kiplinger was obtained through a public relations program. The columnist received assistance from a public relations firm in preparing this piece for submission to Kiplinger.com. Kiplinger was not compensated in any way.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

When Serena Williams stepped away from tennis in 2022, she very deliberately said, writing in Vogue (paywall), that she "never liked the word 'retirement.'"

"Maybe the best word to describe what I'm up to is 'evolution.' I'm here to tell you that I'm evolving away from tennis, toward other things that are important to me," she wrote, in what served as her announcement that she was, at least temporarily, leaving the profession.

She said she was making the move because she wanted to grow her family, and, as a woman, she couldn't do that without impacting her career. She also said she was interested in trying other work, like venture capital. With that very specifically worded announcement, Williams left her industry — with the door still open for her to return.

In the four years since then, Williams did exactly what she said she would. She had a second child and ramped up her work with Serena Ventures, her investment firm. And when she wanted to, she went back to that door she'd left open, accepting a wildcard to play at Wimbledon this summer.

With that, she established what I'll call the Serena Williams Rule of Retirement: Rather than plan a black-and-white retirement, plan to give yourself options.

Let your career 'evolve'

When you've spent decades building and prioritizing your career, the idea of one day abandoning it can seem terrifying and almost nonsensical. That's true even if you've already ascended to the C-suite and built up a more-than-sufficient nest egg.

"Why are we stressing out like that?" said Pam Krueger, founder and CEO of Wealthramp and a Kiplinger contributor. "Instead, have you ever seen a dimmer switch? Forget the on-and-off; it's a dimmer switch. And that's what Serena is doing, that's what her rule is, that's what she's teaching us."

This is largely why Krueger, a financial literacy advocate, urges people of all ages to "stop planning for retirement" and instead plan for optionality.

Now, it's easy to say that of course Serena Williams can wave a magic wand for a Wimbledon wildcard and do whatever she wants after ascending to the top of her industry and making many millions of dollars. But what about us mere mortals?

Optionality means keeping multiple paths open. You might choose a phased retirement, in which you gradually scale back your hours, take on part-time work, or accept "fractional" C-suite roles. Maybe you want to shift industries or work part-time on a passion project, which can mean anything from mentoring younger professionals to working as a handyman after decades in corporate life. You could even start a new venture, whether that's launching a consulting business or selling handmade crafts.

Giving yourself these options requires both a mindset shift and practical planning. A "mindset shift" sounds easier, but in practice, this might be the harder part. We are hardwired to believe the story that you work a career for a few decades and then retire, never to do anything productive again. That's why having an icon like Williams set an example is so important, because it can challenge how we, as a society, think a career path should go.

How optionality leads to a happier life

There are many reasons why giving yourself options, rather than restricting yourself to "retired" or "not retired," can make your life easier and happier.

1. Save your savings. On the practical side, picking up some work after you stop working full-time, even if you're making a fraction of what you made, means you don't have to dip as much into your savings. That leaves more of your nest egg untouched, allowing it to stay invested and keep growing.

"The physics of money are that the more you can leave the biggest chunk of money in your retirement account to draw down less at the beginning of those years, the more you're allowing the compound interest to work for you," Krueger said.

Working a little can save your savings in other ways. Venus Williams, for example, has also never formally retired and plays tournaments a handful of times a year. Last year, she half-jokingly said during an on-court interview that she "had to come back for the insurance." Jobs, even part-time ones, can provide benefits like healthcare that can preserve your savings a little longer.

2. You give yourself purpose and fulfillment. After retiring, some people become depressed or discontent because they feel that they're no longer contributing to the world. By picking up some work or staying connected to your past industry, you can maintain that feeling of purpose and accomplishment.

3. Make use of your skills. You spent years building up skills that can be applied in different ways. Williams, for example, was obviously an athlete, but at the same time, she was learning the ins and outs of investment as she was seen as an investment by sponsors. She then applied that experience to the VC world as an investor herself.

The skills and expertise that you gained don't have to disappear once you step back from your 9-to-5. You can find other ways to use them. This is also a way for you to show respect for yourself and trust in your years of experience.

4. Learn something new. Many studies have shown that learning new things makes people happier. By trying out something different in your later years, you give yourself opportunities to keep stretching your brain, which will make you happier.

Returning to your industry

Maybe, like Williams, you want to leave yourself the option of returning after you leave full-time work. Here's what to keep in mind:

• Don't burn your bridges. Like leaving any job, ensure you are respectful as you walk out the door.
• Nurture your relationships. If you had regular golf outings with colleagues, maintain those, within reason. Make time for occasional phone calls with people in your network. These steps will ensure that if the right opportunity arises, the people who are still there will have you in mind.
• Be open about continuing work. Make it apparent that you are still open to picking up work. Sometimes that's as simple as saying exactly that when you talk to former colleagues, or, if you're doing part-time or side gig work, sharing stories about it on a network like LinkedIn. (In Williams' case, that was sharing videos of herself on courts with her family.)
• Don't expect immediate triumph. If you do return to your old work, manage your expectations. People are often brought back to manage times of crisis or to hold a boat steady between leadership, such as an interim executive. Sometimes triumph is simply keeping a ship afloat. Sometimes, like Williams at Wimbledon, the triumph is in showing up and showing it can be done.

Don't be surprised if returning to the office is a little more intimidating than you remember. Environments change and turnover happens. Just remember that you were brought back because the company or industry feels you have something to offer. Carry that confidence with you, along with an open mindset regarding changes that occurred after you left.

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For decades, financial advisers sold the same allocation: 60% stocks, 40% bonds. It was clean. It was simple. It worked.

Until it didn't.

In 2022, both sides of that portfolio got crushed at the same time. Stocks fell. Bonds fell. The supposed hedge didn't hedge. And if you go back further, the financial crisis told a version of the same story.

The 60/40 wasn't built for this environment. It was built for one that no longer exists.

The math has changed

Think about why someone would put 40% of their wealth into bonds. In the late '70s and '80s, you could buy a 30-year Treasury yielding 15%. A piece of paper backed by the United States government paying you 15% a year. Of course you'd hold that. Anyone would.

That product doesn't exist anymore.

Interest rates fell for 40 straight years. They came back up recently, but a Treasury still pays you somewhere around 4%.

Meanwhile, the state that's backing that paper isn't what it was four decades ago. U.S. debt was less than a trillion dollars then. It's north of $36 trillion now. Ask yourself how confident you are in the full faith and credit of a government carrying that balance sheet.

The yield has diminished. The security behind it has diminished. And the correlation advantage — bonds zigging when stocks zag — has broken down. Stock and bond markets move together now more often than not.

The 40% side of the 60/40 portfolio can no longer deliver its two core promises: A competitive return and real diversification.

So why are people still running it? Because it's easy to sell. And because old habits die hard.

The menu has changed

The investment universe got bigger in those same 40 years.

When the 60/40 became standard, you had stocks and you had bonds. Those were the options. Today, you have access to asset classes that used to be reserved for endowments and family offices.

Private equity. Real estate. Venture. And you don't need $5 million to get in the door.

You can buy private equity exposure through a public ETF. Tech-focused PE, real estate PE, broad diversified PE. Some for as little as $500. Twenty years ago, none of this was available unless you had eight figures and the right connections. Most individual investors haven't caught up yet.

Where I keep my wealth

I'm not going to tell you what to do with your money. But I'll tell you what I do with mine.

I run closer to 40% private markets, 40% public equities, 20% split across crypto, gold and cash. No bonds. Zero.

On the public equity side, I start and stop with the S&P 500. The idea of being a stock picker is folly at best. You're competing against algorithms and institutions with more information and faster execution than you'll ever have. Buy the index. Let the market do its job.

On the private side, some of these PE vehicles trade as ETFs now. Diversification and liquidity. That used to be a trade-off. Now it doesn't need to be.

On cash and gold, they're the ballast. Money markets are yielding roughly the same as bonds right now. So the argument for locking capital into a bond fund when you can park it in cash at a similar rate and keep full liquidity? I don't see it.

Gold is the oldest store of value on earth. I don't need it to grow. I need it to sit there when everything else gets volatile.

A word on bitcoin

Crypto may seem like the black sheep in my allocation, so here's my reasoning.

I start and stop with bitcoin. Bitcoin is a roughly $2 trillion asset that the market still can't agree on. One camp says it's the greatest Ponzi scheme ever built — the greater fool theory playing out in real time.

The other camp says it's the reserve currency of the future. When the dollar fades, and every fiat currency eventually does, it's not going to be replaced by the yen or the euro. It's going to be replaced by something digital. Bitcoin is best positioned to be that thing.

Over almost 20 years, the price has oscillated between those two stories. It's been at $300. It's been above $100,000. If I knew where bitcoin would land, I wouldn't be writing about it. But a small allocation, sized to what you can stomach losing entirely, is an asymmetric bet.

The downside is bounded. The upside, if the reserve-currency thesis plays out, is not.

The point

You don't have to run my allocation. But there's no reason to keep running a model from an era when Treasuries paid 15% and private equity required a country club membership. Times change, and so should your strategy.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Stocks were volatile Friday as market participants weighed mixed reactions to a pair of Big Tech earnings reports and surging Treasury yields. The main equity indexes finished the session higher, though, and snapped their weekly losing streaks.

At the close, the Dow Jones Industrial Average was up 0.5% at 52,485, the broader S&P 500 was 0.7% higher at 7,489, and the tech-heavy Nasdaq Composite had gained 1.0% to 25,373.

But stocks' gains were contained as borrowing costs continued to climb. The 2-year Treasury yield jumped 4.1 basis points to 4.27%, while yields on the 10-year Treasury (+4.9 basis points to 4.712%) and 30-year bond (+4.6 basis points to 5.253%) hit their highest levels since 2007.

Today's rise in Treasury yields came after Cleveland Federal Reserve President Beth Hammack, who voted for a quarter-point rate hike at the July Fed meeting, said in a statement that "now is the time" for the central bank to act to bring inflation down. "The longer that high inflation persists, the more challenging and costly it can be to bring it back down."

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Minneapolis Fed President Neel Kashkari, who also dissented in this week's Fed decision to hold interest rates steady in favor of a quarter-percentage-point hike, issued his own statement, saying that he'd prefer to raise rates now than to allow high inflation to become entrenched.

"The fixed-income complex is moving further away from the central bank's current midpoint of 3.63% as bond vigilantes protest [Fed] Chair Kevin Warsh's overly patient posture and dial up inflation expectations, amid a monetary policy institution that isn't following through on its hawkish rhetoric at this juncture," explains José Torres, senior economist at Interactive Brokers.

Amazon, Apple chart different paths after earnings

In single-stock news, Wall Street was once again tuned into earnings from a pair of Magnificent 7 stocks. Amazon (AMZN) emerged as a clear winner on Friday, surging 15.3% after the e-commerce and cloud giant reported a second-quarter beat on strong revenue growth in its cloud segment.

Amazon also gave soft third-quarter revenue guidance due to Prime Day occurring in June this year, and lifted its full-year capital expenditures budget to $220 billion from $200 billion on higher costs for memory chips.

Bill Birmingham, managing director at REX Financial, REX Shares' parent company, says Amazon's quarter was "exceptional," with evidence that the company's custom silicon and artificial intelligence (AI) commercialization are gaining traction noteworthy.

And while it's worth keeping an eye on the lighter revenue guidance and higher spending levels, Birmingham said the print "provides real evidence that AI capex is being monetized."

Apple (AAPL), on the other hand, slumped 7.4%, as weak current-quarter revenue guidance overshadowed higher-than-expected fiscal third-quarter earnings and revenue.

"We paid more per memory in the March quarter than the December quarter," said Tim Cook on the earnings call, his last as CEO of Apple. "And then as I alluded to last quarter, we expected to pay significantly more in the June quarter than the March quarter, and that is what happened. It was partially offset by the benefit of carry-in inventory."

Cook added that the company expects to pay even more for memory costs in its September quarter.

Argus Research analyst Jim Kelleher reiterated his Buy rating and $375 price target on Apple after earnings, representing implied upside of more than 20% to current levels.

"As we see it, Apple's perpetually refreshed roster of highly desirable products provides a unique advantage over industry rivals," says Kelleher. And dips should be bought on this high-quality stock to "establish or dollar-average into positions in AAPL," he adds.

Roblox has its worst day ever after earnings

While Apple was the worst Dow Jones stock today, Roblox (RBLX) was one of the worst stocks period. Shares plunged 26.9% — their biggest one-day decline ever — after the video-game company reported a second-quarter bookings miss and forecast lower-than-expected third-quarter bookings.

Roblox also said it expects Q3 revenue to come in well below what Wall Street is expecting and did not offer a full-year forecast.

This doesn't seem to worry Oppenheimer analyst Martin Yang, who maintained an Outperform (Buy) rating on the communication services stock. "Retention remains stable and content is diversifying," he says, though cautioning that it's still uncertain as to when monetization will catch up to retention.

Yang isn't the only one holding out hope for RBLX. Of the 34 analysts covering Roblox who are tracked by S&P Global Market Intelligence, 19 say it's a Buy, 13 have it at Hold and two rate it a Sell. This works out to a consensus Buy recommendation.

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• Think You Know About Dividend Stocks? Take Our Short Quiz

Dividend stocks are an important part of most investors' portfolios, and for good reason. For one, dividend stocks can boost your total investment returns over the long run, in part because they increase the yield on your original cost basis.

Dividends also provide income for investors, which is especially important for those nearing or in retirement.

How much do you know about dividend stocks? Test your knowledge with our short quiz. And don't worry if you miss an answer or two. You can follow the links below the quiz to refresh your knowledge on dividend investing.

More on dividend investing from the Kiplinger team:

• What Are Dividend Stocks?
• Best Dividend Stocks to Buy for Dependable Dividend Growth
• Best Dividend Kings for Decades of Dividend Growth
• The Kiplinger Dividend 15: Our Favorite Dividend-Paying Stocks
• Highest-Yielding Dividend Stocks in the S&P 500
• How to Use the Barbell Rule for Dividend Investing in Retirement
• Qualified Dividends vs Ordinary Dividends: Taxing Dividends

Each week in our Ask the Editor series, Joy Taylor, The Kiplinger Tax Letter editor, answers questions on topics submitted by readers. This week, she's looking at four tax questions from readers pertaining to federal income tax credits, including the difference between refundable and nonrefundable tax credits. (Get a free issue of The Kiplinger Tax Letter or subscribe.)

1. Refundable v. nonrefundable credits

Question: What is the difference between a refundable income tax credit and a nonrefundable income tax credit?

Joy Taylor: The federal tax code generally has two types of income tax credits for individuals — refundable credits and nonrefundable credits. Refundable credits allow taxpayers with zero to little income tax liability to benefit from the credit because the credit can exceed the amount of tax liability and result in a refund. A nonrefundable credit can only offset a taxpayer's tax liability and cannot create a refund.

Examples of refundable credits include the American Opportunity tax credit, the earned income credit and the health premium tax credit. Examples of nonrefundable credits include the credit for child and dependent care expenses taken by working parents, the foreign tax credit and the now-expired tax credits for buying electric vehicles and installing eco-friendly improvements in your primary residence.

2. Expired electric vehicle credit

Question: I bought a used Tesla earlier this year for personal use. Can I claim a federal income tax credit on my 2026 Form 1040 for this purchase?

Joy Taylor: No. Unfortunately, the clean-vehicle credit for buying a new or used electric vehicle (EV) has expired. The up-to-$7,500 credit for buying new EVs and the up-to-$4,000 credit for buying used EVs ended after September 30, 2025. So you can't claim a credit for your 2026 used EV purchase. Congress chose to eliminate this credit in the "One Big Beautiful Bill" legislation that it enacted in July 2025.

3. Adoption credit

Question: I have clients who adopted a baby last year. I am now filling out their 2025 Form 1040, which they received a filing extension for, and I see that part of the adoption tax credit is now refundable. When was this change enacted?

Joy Taylor: The adoption tax credit can be taken on up to $17,670 of qualified expenses per eligible child in 2026. The 2025 amount was $17,280. Qualified expenses include adoption fees, court costs, legal expenses, travel, meals and other expenses directly related to a legal adoption. The full credit is available for the adoption of a special-needs child, even if it costs less. The credit starts phasing out for filers with 2026 modified adjusted gross incomes (AGI) over $265,080 and ends at $305,080. The 2025 figures are $259,190 and $299,190. The credit amount and the modified AGI amounts are adjusted annually to account for inflation. Parents claim the adoption credit on IRS Form 8839.

Up to $5,120 of the adoption credit is fully refundable in 2026. This new rule, which was included in the "One Big Beautiful Bill," gives adopting parents $5,120 of the credit as a refund, even if they have no income tax liability. The refundable amount is adjusted annually to account for inflation. It was $5,000 for 2025 tax returns. (The remaining portion of the credit is a nonrefundable tax credit that can be carried forward for five years).

4. Dependent care credit

Question: I work and also take care of my elderly father. I pay for his care when I am at work. Can I take the dependent care credit for him?

Joy Taylor: To claim the dependent care credit for your dad, he needs to have lived with you for at least six months during the year and be unable to care for himself. Additionally, you must provide over half of his support.

Other rules for the dependent credit must also be met. For example, expenses for the care must be incurred so you can work, and you must report the provider’s tax ID number on IRS Form 2441.

If your dad qualifies as a dependent for this purpose, you can claim a maximum dependent care credit of $1,500 for him on your 2026 Form 1040 that you file next year, depending on the amount of your income.

About Ask the Editor, Tax Edition

Subscribers of The Kiplinger Tax Letter, The Kiplinger Letter and The Kiplinger Retirement Report can ask Joy questions about tax topics. You'll find full details of how to submit questions in each publication. Subscribe to The Kiplinger Tax Letter, The Kiplinger Letter or The Kiplinger Retirement Report.

We have already received many questions from readers on topics related to tax changes in the One Big Beautiful Bill, retirement accounts and more. We will continue to answer these in future Ask the Editor roundups. So keep those questions coming!

Not all questions submitted will be published, and some may be condensed and/or combined with other similar questions and answers, as required editorially. The answers provided by our editors and experts, in this Q&A series, are for general informational purposes only. While we take reasonable precautions to ensure we provide accurate answers to your questions, this information does not, and is not intended to, constitute independent financial, legal, or tax advice. You should not act, or refrain from acting, based on any information provided in this feature. You should consult with a financial or tax advisor regarding any questions you may have in relation to the matters discussed in this article.

More Reader Questions Answered

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• Ask the Editor: Tax Questions on Roth IRA Conversions
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What do you do when you're suddenly in charge of everything?

I often point to Dorinda Medley from The Real Housewives of New York as a surprisingly relatable example. After her husband passed away, she spoke publicly about discovering just how much of the family's financial and household administration he had handled.

She has shared that she didn't even know who was paying certain bills and later uncovered investments and financial arrangements she hadn't previously been involved with.

While her circumstances involved significant wealth, the underlying challenge is one I see, as an attorney and financial professional with decades of hard-won expertise, far more often than people expect: When one spouse manages most of the financial life, the surviving spouse can find themselves trying to navigate complex decisions at the same time they are grieving.

In many households, one partner naturally becomes the person who handles the finances. They manage the accounts, coordinate with advisers and make the long-term decisions.

The other partner may understand the broader picture, but not the details — just like Dorinda.

That dynamic can work for years, until something changes. When it does, whether due to illness, loss or incapacity, the uninvolved spouse is suddenly responsible for everything.

When clients come to me in that situation, their first question is almost always the same. Where do I even start?

Looking for clarity

The answer is to focus on the information that creates the most clarity, as quickly as possible. In most cases, that starts with identifying key documents and accounts.

Tax returns are often the best entry point, because they provide a consolidated view of income, assets and the professionals involved.

From there, we work through locating bank and investment accounts, insurance policies and estate planning documents.

In many cases, this is where the first challenge appears. I have worked with clients who discovered accounts spread across five or six different institutions, with no centralized system and no clear understanding of what existed where. That fragmentation alone can make the situation feel overwhelming until it is organized piece by piece.

Once we know what exists, the next step is understanding how everything fits together. That means reviewing assets and debts, confirming how accounts are titled and, just as importantly, understanding beneficiary designations.

It is also critical to identify who has been named to act on your behalf. That includes executors, trustees and healthcare decision-makers.

We often find that just as there are gaps in account visibility, there are also gaps in these roles. Clients may not know who is listed, or those designations may be outdated. These are not abstract details. They directly affect how decisions are made and how quickly assets can be accessed.

Avoid costly mistakes

At the same time, this is where I see clients most at risk of making costly mistakes. When someone is overwhelmed, there is a natural inclination to act quickly just to regain a sense of control.

I often see people make significant changes to their investments early on or move large portions of their portfolio to cash simply because they are unsure what they own or how it is structured. While that can feel protective in the moment, it can create longer-term consequences if it is not part of a broader strategy.

There are also timing considerations that come into play. Certain benefits need to be evaluated, tax filings still need to be completed, and some decisions have deadlines attached to them.

This is why creating a clear order of operations is so important. Not everything needs to be addressed immediately, but some things do, and knowing the difference matters.

There are, of course, several priorities in the first few months.

Establishing a clear picture of cash flow is critical so that day-to-day expenses are covered without disruption.

It is also the time to evaluate any available benefits, including Social Security survivor benefits, and begin the process of updating estate documents and beneficiary designations to reflect the new reality.

One especially crucial item is ensuring that an estate tax return (Form 706) is filed within nine months of the death (or 15, if filing for an extension) in order to elect portability on a deceased spouse's unused federal estate tax exemption to retain maximum flexibility in estate tax planning.

Don't neglect the emotional side

Just as important as the technical work is the emotional side of the transition. Many uninvolved spouses feel like they should already understand these things.

I often hear clients say, "I wish I had paid more attention," or "I feel like I should know this."

The reality is, this is one of the most common situations I see. Financial confidence is not something you either have or do not have. It is something you build, and this is often where that process begins.

While much of my work is helping clients navigate this transition after the fact, I also spend time encouraging couples to plan ahead so neither partner is ever in the dark.

That does not mean both people need to manage every decision, but it does mean both should have a basic understanding of where accounts are held, who the key contacts are and what the overall plan looks like.

That level of transparency is often the difference between a difficult transition and an overwhelming one. It is what allows someone stepping into this role to move forward with clarity instead of starting from zero.

This is not a rare situation. It is something that plays out in real households every day. The goal is not just to respond well if it happens. The goal is to make sure that if it does, the person stepping in is prepared, supported and has a clear path forward.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

If you're looking for a back-to-school gift for a grandkid heading off to college, your best bet might actually be a Costco membership. The popular wholesale club reported that nearly half of its new signups were from Millennials and Gen Z adults in a recent earnings call.

Costco has become a bit of a trend in recent years, with teens and young adults showing off their bulk buy hauls on TikTok or hopping onto fashion trends like the viral Espirit sweatshirt that sold out almost immediately at Costco.

After Costco outranked Walmart as the cheapest grocery store this year, it's no surprise younger generations are now getting on board with the wholesale club. This makes it the ideal gift for someone heading off to college or recently graduated. It's both trendy and practical, giving your grandkid or child a way to take advantage of bulk pricing and gas discounts at a time when every penny saved really counts.

Why younger generations love Costco

The idea of a grocery store becoming trendy might seem odd to you, no matter how much you might understand how much there is to love about it. But the fact that #costcohaul videos are regularly getting over 150,000 views is a sign of the inflation-addled times.

The Costco trend comes as rising grocery prices have more and more young adults struggling to keep up with the cost of living. As a result, more than 60% of working adults have resorted to using credit cards or Buy Now, Pay Later plans to pay for groceries in the past year, according to an Urban Institute survey.

To avoid going into debt to put food on the table, Millennials and Gen Z adults are looking for as many ways as possible to stretch their grocery budget further. If you're already a Costco member, you know how much the warehouse club can help with that.

But it's not just the grocery prices drawing in younger customers. The ultra-cheap food court prices are a hit as well. The famous $1.50 hot dog combo is a timeless hit that regularly makes its rounds on TikTok. The food court's significantly lower prices make it a great way for a college student with limited time or space to cook to grab a quick bite for lunch or feed an entire study group without breaking the bank.

Give your grandkid a Costco membership and a $50 shop card with this deal

To sweeten the back-to-school gift even more, Stack Social is offering a limited-time deal that includes a $50 shop card with the purchase of a Costco Gold Star membership.

All you have to pay is the cost of a one-year membership, and the shop card is free. So your grandkid or child can get a free membership and a little money to spend on their first visit.

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It’s easy to see why Florida is a haven for retirees. Between the year-round warm weather, miles of coastline, and zero state income tax, the Sunshine State is already home to roughly 5 million people 65 and older.

However, relocating doesn't guarantee a lower cost of living, even for those moving from high-cost northern states. Unforeseen expenses in Florida can easily derail an otherwise solid retirement budget.

"Florida is great because there is no income tax," says Andy Smith, a certified financial planner at Edelman Financial Engines. "But people have to look at the total cost of living instead of focusing on one particular tax advantage."

From HOA fees to hefty insurance premiums, before you make the move, be sure to budget for these unexpected expenses.

1. Sky-high HOA fees

Whether you live in a condo or a community, homeowner's association fees are a fact of life in many Florida communities, and that fee can get expensive.

Florida leads the U.S. with the most expensive HOA fees, with seven of its cities charging the highest HOA fees, according to Realtor.com. Take Miami, for one example. The owner of a $425,000 home in Miami pays $617 a month in HOA fees.

2. Surprise condo special assessment fees

Ever since the 2021 collapse of the Surfside condo in Miami, Florida, associations with buildings three stories or higher are subject to mandatory structural inspections and must have fully funded reserves. When condo associations don't, they can charge unit owners a one-time special assessment.

"Many of these buildings are quite old," says John Gillet, CEO and founder of Gillet Agency. "You should thoroughly investigate the condo before making a financial move."

If you can't get a sense of how the condo association is run, what the financials look like and the structure of the building and the unit, you should hire a consultant to research before buying, Gillet said. An assessment fee, if ever required, can range from a few hundred dollars to tens of thousands of dollars.

3. Rising insurance premiums

Expect to pay more than the national average for insurance in Florida, whether it's homeowners, health, or auto. That's across the board in the state, and even higher in certain metro areas. "Insurance is very, very expensive," says Michael Cabanas, a regional managing director at Fiduciary Trust and a longtime Miami resident. "If you live in a flood zone, flood insurance is required by law, and it's not cheap." The same goes for auto insurance. Florida is among the costliest states for auto insurance, according to a U.S. News & World Report ranking.

4. Year-round utility bills

Florida electricity rates are below the national average, but residents' monthly utility bills are among the highest in the country. The reason? Year-round heat and the need to stay cool.

"Instead of two or three months, you pay for eleven months out of the year," says Cabanas. "That's an expense some northeasterners may not anticipate when they move down here."

5. Lack of caregivers

Supply and demand are on display in Florida when it comes to caregiving. As retirees flock to the state, demand for caregivers is rising, driving up the cost of care. In fact, Florida ranks last in caregivers, with just 17 personal care and home health aides per 1,000 adults aged 65 and older. That compares to the national average of 65 per 1,000, according to America's Health Rankings.

6. Property tax resets

Florida caps annual property tax assessments for existing homeowners at 3%, but when a retiree buys a home, that number resets to the market rate. When they get their tax bill in year two, homeowners could be in for a big shock when their property taxes are double or triple what the previous owner paid.

Calculate everything before you make a move

Just because there are unexpected costs associated with moving to Florida doesn't mean you shouldn't make the move. Every town, city and state has different costs that may offset tax breaks. The good news is that with a little research, you can figure out what they are ahead of time and determine if the Sunshine State still makes financial sense for your retirement.

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Retirees are often advised to maintain diversified portfolios while focusing on assets that can produce steady income. REITs can help in both regards.

REITs, or real estate investment trusts, are companies that operate portfolios of properties, whether it's data centers, malls, fulfillment centers, healthcare facilities, or residential complexes. They make it possible for retirees to branch out into real estate without actually having to own or maintain physical property as investments.

As of early 2024, 50% of U.S. households owned REITs, according to the National Association of Real Estate Investment Trusts. And for retirees, REITs offer a couple of distinct benefits.

REITs tend to pay above-average dividends since they're required to distribute at least 90% of their taxable income to shareholders on an annual basis. REITs also have inherent inflation protection. They often can raise rents and pass that income along to shareholders. And those higher dividends can help retirees stay ahead of rising costs.

But are REITs a retirement investment worth pursuing? Or is there too much risk involved?

There's upside, but it comes at a cost

While REITs can serve as a source of steady income for retirees, they're not without risk, says

Mike McCracken, president and founder of Wealth Guide Financial.

"REITs could be part of a diversified retirement portfolio, but I don’t think they’re as safe as many people assume," McCracken says.

"Clients have told me that they like the idea of holding real estate without the headache of tenants or repairs, and their thoughts are that REITs can satisfy that desire. That may have been the case prior to 2021, but rising interest rates have caused REITs to underperform low-cost stock portfolios over the last few years," McCracken continues.

Adam Vega, CFP and Managing Partner at Avance Private Wealth Management, warns that REITs aren't necessarily as liquid as you might think.

"Publicly traded REITs are those that trade on an exchange, like any normal stock would. You can buy it today and, through the public markets, sell it tomorrow. Private REITs do not trade on an exchange. There is no open market available, so if you bought it today, you are at the mercy of the issuer of when you might be able to sell it," he explains.

In fact, Vega cautions, "With a private REIT, it could take years to find the right buyer. This isn't inherently bad, but this should be understood, as the lack of liquidity is often what helps keep the price more stable on private REITs."

Another thing to consider is that REITs are very sensitive to interest rates.

"Rates from 1985 to 2021 generally were slowly falling, providing decent safety with investing in REITs," McCracken explains. "When rates go up, [REIT] share prices usually drop because their high dividend yields become less attractive compared to bonds."

REITs also aren't immune to sector-specific meltdowns. As McCracken points out, office REITs struggled with occupancy issues during and after the pandemic, when remote work was all the rage and companies were reluctant to renew leases and bring workers back to the office.

Other sectors could be similarly vulnerable in the future. If regulations come down the pike that crack down on data centers, REITs that operate those facilities could see their value decrease.

Have REITs become trendier?

Despite the risks, McCracken says he's seen a growing number of retirees put money into REITs.

"There has been some increased interest in REITs over the last 10 to 15 years, mostly because they are easy to buy and sell compared to owning actual real estate," he says. But that doesn't mean those people chose wisely.

As McCracken explains, many of his clients who hold REITs have been disappointed with the returns those assets produced over the past five years in particular.

"Many of them would have been better off in a simple, low-cost stock index fund," he says.

Vega, meanwhile, says he's seeing more interest in REITs despite the fact that they had a "tough 2025."

"Higher rates slowed down the sector, and as an underperforming asset, it puts it back on the radar as an opportunity to consider. For those seeking income and diversification, it is starting to look attractive again," he says.

Should REITs be a part of your retirement investment strategy?

Whether REITs are a good choice for you depends on your income needs, goals, and appetite for risk. But McCracken certainly wouldn't say they're right for everyone.

"Currently, I tell my clients that REITs have had their day and are generally underperforming the broad stock market indexes in recent years," he says. "For most retirees, I think there are simpler and more effective ways to get growth and income without adding the extra complexity or the interest rate risk that comes with investing in REITs."

Vega says many retirees like the consistency of payments REITs can provide.

They can also help with diversification. The key, he says, is to limit exposure.

"REITs should be considered part of your real estate allocation," he says. "Sticking to normal diversification rules, a good guideline is no more than 15% of a portfolio in any one sector."

Read More

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Financial literacy is the process of developing the appropriate skills to make informed decisions with the financial resources you have available. It is about more than "money management." It is about understanding how money impacts different aspects of your life.

The different components of financial literacy include:

• Understanding your earnings
• How to save and invest
• How to budget and spend
• How to properly borrow funds and take on debt

In addition to knowing how money flows, being financially literate helps build confidence, independence and resilience. When you know you can depend on yourself to make good financial decisions, you are putting yourself in a position to succeed.

Most people wait too long to learn about money. I was fortunate that my first experiences with financial management came while I was still living at home with my parents. In my junior high home economics class, we learned how to balance a checkbook.

My first experience with earnings and spending came during high school when I got my first job. I learned how to budget my expenses not based on my earnings, but on my take-home pay after taxes.

I also had to account for a monthly loan payment on my car and understand the difference between interest and principal.

Looking back has made me wonder how today's parents can help their own kids begin their own journey towards financial literacy. For many people, resources are scarce. And it may seem there isn't much to do until kids get their first job.

But there are plenty of daily activities that have some relation to financial literacy and can help parents take more ownership of their kids' financial education.

Our firm recently launched a free tool for parents called The Lern-ing Curve. Parents can use it to find age-appropriate lessons and activities that will teach kids how to become financially literate.

Beyond that, though, the real teaching happens in daily life. What that looks like changes a lot as your kids get older.

Start young: Make it a game

A lot of parents think kids need to be older to understand money and finances. While we shouldn't expect a 3-year-old to help with 401(k) allocations, there are plenty of activities parents can do with young kids.

The key is to make it fun. Playing board games with dice can help kids learn their numbers and how they apply to the real world. Sharing with siblings can also be turned into an everyday commerce situation.

Sharing and trading Halloween candy is a perfect example. One small chocolate might not be worth the same as a bag of gummy bears unless one person loves chocolate and the other loves gummy bears. If they like both equally, maybe the small chocolate can be exchanged for half a bag of gummy bears.

These are the exact types of activities that parents are likely already engaging in without even realizing they are helping their kids become more financially literate.

The preteen years: Goals and budgeting

As kids continue to grow and learn new concepts, the same games might not be as useful or engaging. During the preteen years, kids are learning more about themselves and developing their own personalities and mindsets. They are more independent thinkers and can comprehend more sophisticated concepts.

Helping them set achievable goals that are important to them boosts confidence and teaches the value of hard work.

By working on a savings plan for these goals, parents can show their kids how to achieve short-, medium- or long-term wants and needs. From a budgeting perspective, parents can show their kids how they allocate available money.

• Short-term spending can be on everyday items like groceries and gas
• Medium-term savings might be for a family trip or gifts for the holidays
• A long-term goal could be saving and investing for college

With these types of activities, kids can see in the real world how finite resources are used and can start to learn how they would want to allocate their own allowances or resources.

The teenage years: Jobs, taxes and debt

During the teenage years, kids become even more independent. They may start preparing to leave home and find their own path. This is when parents generally start trying to teach their kids about money.

Getting a job outside of school teaches kids that there's more to earning money than just wages or salary amounts. Working with your kids to understand taxes can help them learn to budget and understand their real take-home pay.

With that take-home pay, they can start setting more long-, medium-, and short-term goals.

This is also a time to learn about debt and how to use it. From finding out how credit cards work to learning about car loans, it is important that kids understand the difference between using money and borrowing money to stretch what they already have.

You may already be doing a lot of this with your kids. But by working with your adviser or visiting The Lern-ing Curve, you can take an even more proactive approach to teaching your kids the building blocks of a successful financial future.

The earlier kids start understanding how money works, the more financially literate they will ultimately be.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

When it comes to big bank stocks for the long haul, no one beats JPMorgan Chase (JPM). Under the leadership of CEO Jamie Dimon, JPM has outperformed peers — and the broader market — even as it navigated the great financial crisis and a worldwide pandemic.

Dimon, who was named CEO at the end of 2005, spent the early years of his tenure getting the nation's largest bank by assets ready for the storm. While competitors were leveraging up on subprime mortgage-backed securities, Dimon ordered JPM to reduce its exposure. The conservative, and even contrarian, approach to risk management paid off.

When the financial system started to collapse, Dimon's "fortress balance sheet" philosophy not only allowed JPM to survive when other banks failed, it was able to come to the rescue. In March 2008, with backing from the Federal Reserve, JPM acquired Bear Stearns for a fire-sale price of $2 per share. (It was later raised to $10.) Six months later, JPM bought the banking operations of Washington Mutual — the largest bank failure in U.S. history — from the FDIC.

Not that the years after the crisis were much fun for JPMorgan Chase or its shareholders. JPM paid billions in fines, largely related to the mortgages originated by the companies it bought. A tougher regulatory landscape, Federal Reserve stress tests and limits on capital returns to shareholders were a headwind for the financial industry, and JPM was not immune.

By the late 2010s, however, JPMorgan's diversified model offering consumer banking, commercial banking, investment banking and asset management proved to be a big-time moneymaker. Rising interest rates also helped. The bottom line was that the bank was once again able to lavish cash on shareholders through aggressive stock buybacks and steadily rising dividends.

And the good times continue to roll on. The higher rate environment has done wonders for JPMorgan Chase's net interest income (NII), or the difference between what banks pay for deposits and charge for loans. In 2023, NII increased a record 34% year-over-year to more than $89.3 billion. It's currently growing at a pace of more than 3% a year, topping $95.4 billion in 2025.

The bottom line on JPM stock?

Big banks aren't sexy growth stocks. You're not betting on their shares to perform like, say, Nvidia (NVDA) or Apple (AAPL). Slow and steady is just fine — as long as they deliver market-beating returns for patient investors.

On that count, JPM has been a winner. Over its entire life as a publicly traded company, shares delivered an annualized total return (price change plus reinvested dividends) of 13.4%. The S&P 500 generated 11.2% annualized over the same period.

JPM's outperformance is even more impressive over shorter time frames, beating the broader market by wide margins over the past one-, three-, five-, 10- and 15-year periods.

Which brings us to what $1,000 invested in JPM stock 20 years ago would be worth today. Have a look at the above chart, and you'll see that a grand socked away in this Buy-rated Dow Jones stock two decades ago would today be worth about $12,500 — or an annualized total return of 13.5%.

The same amount invested in an S&P 500 ETF would be worth about $8,400, or 11.2% annualized.

As for where JPM stock goes from here, Wall Street is mostly bullish. Of the 23 analysts covering the financial stock surveyed by S&P Global Market Intelligence, nine call it a Strong Buy, three say Buy and 11 have it at Hold. That works out to a consensus recommendation of Buy, with mixed conviction.

Speaking for the bulls, Argus Research analyst Stephen Biggar, who rates shares at Buy, believes the market doesn't fully appreciate JPM's strengths.

"We like JPM among the large banks given its better lending-growth profile, strong credit-card franchise, and expected market-share gains in its capital-markets businesses," Biggar writes. "We view the current forward multiple as undervaluing the franchise."

More Stocks of the Past 20 Years

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I came across a video recently from personal injury attorney Mike Rafi that laid out one of the most blatant insurance fraud schemes I can remember seeing — minus the guy dressed in a gorilla suit tearing up a car.

It's called Operation Sideswipe, and if you're wondering why, at least in part, your insurance premiums keep going up, this case is a pretty good place to start.

Here's what happened. Going back as far as 2011, a network of people called "slammers" would intentionally crash their vehicles into 18-wheelers. These were not accidents, you see. They were staged collisions, choreographed to make it look like the truck driver was at fault. The truck drivers had no idea this was happening.

After the impact, the passengers in the slammer's car would claim they'd been injured. Then a group of corrupt personal injury lawyers would file claims, push for settlements and cash out.

Why the insurance companies would pay

The trucking companies and their insurers would pay up, because settling was less expensive than fighting every single case in court.

And it went deeper than that. Like six-feet-under deeper. In 2020, a federal witness who was secretly cooperating with the FBI was shot 10 times on his mother's doorstep just four days after his indictment was made public.

The person who allegedly paid for the hit was a disbarred attorney living in a $1.2 million home with a former Hollywood stuntwoman.

All this reads like a novel you might buy at an airport bookstore. However, by the time federal authorities finally got the case under control, 63 people had been charged, and a key witness was dead.

This went on for years. And here's the part that affects you: Every one of those fraudulent claims got paid:

• Every inflated medical bill
• Every bogus lawsuit settlement
• Every fake injury claim

That's how insurance works

The insurance companies paid it all. And when insurance companies pay out billions in fraud, they don't just absorb the loss. They raise rates.

That's not greed. That's math. That's how insurance works.

The money has to come from somewhere, and it comes from you. From me. From every honest driver who has never filed a fraudulent claim in their life.

You pay your premium every month, on time, year after year. You've never caused an accident. You've never exaggerated a claim. And yet, your rates will go up partly because a ring of crooks in New Orleans intentionally crashed cars into trucks and walked away with settlement money.

The fraud gets baked into the system. The insurers raise prices to cover the losses, and the cost spreads across the entire risk pool. You end up paying the bill for somebody else's crime.

Just imagine what we don't even know about

Now, here's the thing. Operation Sideswipe is a case we know about. But I want you to think about what I call the coconut theory.

If you're sitting on an island, and a coconut falls on your head, the chances are there are lots of coconuts falling all around that island. You were hit with just this one.

We learned about this one massive scheme because it got big enough to attract federal attention. But that means — and think about this — there are many similar scams, or even larger ones, happening all over the place that we don't know about.

Smaller operations. Individual fraudsters. Staged accidents in cities across the country that never make the news.

And I'll bet Operation Sideswipe is not the first insurance fraud case you've heard about, so plenty do make the news. Each one is a coconut hitting the insurance system, and each one costs all of us money.

If one scheme in one city involved 63 people and went on for years, how many are running right now that haven't been caught? How many fraudulent claims are being paid today that will never be investigated?

Every one of those payments ends up as part of the rate calculations that determine what you and I pay for coverage.

Insurance fraud is not a victimless crime. It's a tax on every honest driver in the country, collected one premium increase at a time.

What you can do

So what can you actually do about it? How can you help put an end to this insanity? A few things.

1. After an accident, the single most important thing you can do is document everything.

I mean everything. Not most things. Getting the hint? Everything with a capital E.

Take out your phone and take pictures and/or record video of every angle of:

• Both vehicles
• The road conditions
• The traffic signs
• The weather
• The license plates
• The other driver
• Their insurance card
• Any debris on the road
• The positions of the vehicles before they get moved

Take more pictures than you think you need. You can never go back and take the ones you missed.

2. Walk around the scene, too, recording video.

Capture the other driver's demeanor.

• Are they limping?
• Are they on the phone with someone who seems to be coaching them?
• Is there a passenger who's silent at the scene but could later claim they were thrown forward and hurt?

Record all of it. Your phone's camera is the best witness you will ever have. It doesn't forget. It doesn't get intimidated. It doesn't change its story three months from now.

3. Open the Notes app on your phone and list every detail.

• The time
• The exact location
• Which lane you were in
• What the other driver said — word for word
• The names of any witnesses
• The badge numbers of responding officers

Also, note anything that seems unusual:

• A passenger who is jumping around and yelling at the scene (they could claim later to have a broken leg)
• A driver who seems oddly calm for someone who just got rear-ended
• A car that pulls up and someone gets out who wasn't involved in the crash

Write it all down. Three months from now, when the claims adjuster asks you about the details, you might not remember, but your notes will.

Why you can't just trust the system

Is it unfortunate that we have to be this diligent? Heck, yeah. Absolutely. It would be nice to just exchange insurance information, shake hands and trust the system. But the system is being abused, and we're all paying the price, literally.

Operation Sideswipe worked because there was no evidence to contradict the fraudsters. The slammers and their passengers could say whatever they wanted, and without contradicting evidence, the system believed them.

The only reason the scam finally got exposed was that federal investigators spent years building a case with resources you and I don't have.

What we do have is a phone in our pocket that takes pictures, records video and lets us type notes.

• Every picture you take is evidence
• Every video clip is a record
• Every note you write is a real account that carries weight in a way that a vague recollection months later can't

Your evidence can help protect you from being accused of causing something you didn't cause. And it's what helps your insurance company pay the honest claims quickly and fight the fraudulent ones.

Insurance fraud costs every single one of us, every single year, in higher premiums. The best defense we have isn't law enforcement.

It's you, at the scene, with your phone out, paying attention.

Want to learn more about insurance? Visit KarlSusman.com.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Stocks jumped out of the gate Thursday and stayed higher through the close as well-received earnings from Microsoft (MSFT) overshadowed a disappointing reaction to Meta Platforms' (META) quarterly results. Market participants also kept an eye on a busy economic calendar and surging long-term Treasury yields, though these did little to shift today's price action.

At the close, the blue-chip Dow Jones Industrial Average was up 1.2% at 52,208, the broader S&P 500 was 1.7% higher at 7,437, and the tech-heavy Nasdaq Composite had surged 2.8% to 25,122.

And in the bond market, long-term yields continued to climb, with the 10-year Treasury yield closing up 5.5 basis points at 4.677% and the 30-year yield jumping 7.8 basis points to 5.221%, both near their highest levels since 2007.

This comes as rising bond yields sank stocks on Wednesday in reaction to the Federal Reserve's split decision to keep interest rates steady, even as inflation sits well above the central bank's 2% target.

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"The reluctance to lift generated short-term credibility damage, driving a dramatic steepening across the Treasury curve as bond vigilantes stood up and said, 'wait a minute,' resulting in purchases at the shorter tenors alongside selling at the long end," explains José Torres, senior economist at Interactive Brokers.

June PCE eases on falling energy prices, GDP slows

Markets received another inflation update today with the release of June's Personal Consumption Expenditures Price Index (PCE). According to the Bureau of Economic Analysis (BEA), headline inflation was down 0.1% month over month and up 3.7% year over year.

This was much better than May's monthly and annual increases of 0.4% and 4.1%, respectively, and came as energy prices tumbled roughly 20% in June. Core PCE, which excludes volatile food and energy costs, also eased in June, rising 0.1% month over month and 3.3% year over year.

In a separate release, the BEA said that second-quarter gross domestic product (GDP) was 1.5% higher in Q2 — slower than Q1's 2.1% increase. The headline number isn't as worrying as it seems, though, as surging imports were the main drag on economic growth in the second quarter. The data also showed that consumer spending and investments were strong.

"Despite moderating inflation, strong domestic activity across consumption and business investment will keep the Fed diligent about the risks overheating could have on the inflation trajectory," says Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management. "We continue to expect the Fed to be patient as it awaits more inflation data."

Microsoft gains $500 billion in value after earnings

In addition to a busy day of economic reports, Wall Street had a lengthy earnings calendar to sift through. Microsoft's earnings were among the most noteworthy.

The tech giant jumped 15.5%, its biggest one-day gain since 2008. It also added $450 billion in market value — the most ever for a company in one day, beating out Nvidia (NVDA, +2.7%), which gained $440 billion in market cap on April 9, 2025, according to The Wall Street Journal.

For its fiscal fourth quarter, Microsoft reported higher-than-expected earnings and revenue, with its results boosted by a 43% year-over-year revenue growth in its Azure cloud segment.

And while MSFT said it expects fiscal 2027 capital expenditures to be up year over year, Chief Financial Officer Amy Hood also said she believes the company will remain free cash flow positive.

"Microsoft reported a very strong quarter and it struck the tone markets are looking to hear as the key drivers of growth came from the cloud and AI divisions," says Brian Mulberry, chief market strategist at Zacks Investment Management. And the blue chip stock's reaction indicates "that investors are finally excited about Microsoft again."

Meta stock posts its longest losing streak on record

Fellow Magnificent 7 stock Meta Platforms, on the other hand, slumped 8.0% after its results. META has now fallen for 11 days straight, its longest losing streak on record. Shares are down 20.9% over that time.

While the Facebook parent reported a second-quarter revenue beat, it fell short on the bottom line and gave lower-than-expected third-quarter revenue guidance.

And, as Meta ramps up spending on artificial intelligence initiatives, the company also said its free cash flow plunged 91% year over year to $784 million and it raised the low end of its full-year capital expenditures outlook.

"The report's defining narrative is the aggressive cost absorption required to stay at the leading edge of generative AI," says David Wagner, head of equity and portfolio manager at Aptus Capital Advisors. "It's just not the greatest story to increase the bottom end of your capex, basically increasing the midpoint, and not showing much positive guidance on revenue expectations."

Big Tech earnings will continue after Thursday's close, with Amazon (AMZN, +3.9%) and Apple (AAPL, -1.4%) set to report.

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A lot of people get into real estate the same way my brother Brian and I did. You buy a few properties on the side, learn as you go and assume steady growth will come from owning real estate long enough.

Before founding Roers Companies in 2012, we built a portfolio of about 20 residential and student housing properties near the University of Minnesota. It was a side venture we grew while working in finance — Brian as a CPA and me as a CERTIFIED FINANCIAL PLANNER® (CFP®).

At the time, we knew our local market well and had a strong network, but we were still thinking fairly small. We were focused on managing individual rentals instead of building something durable in the long run.

Looking back, it's clear we needed to shift our perspective on risk and growth. Investors today have less room for error than they did a few years ago, which makes long-term planning and risk management much more important.

While every investor's journey is different, these are the three lessons that shaped our approach — and that every investor should understand from the start.

1. Smaller doesn't always mean safer

A lot of first-time investors start with a single-family rental, duplex or small multifamily property because it feels manageable. There's nothing wrong with that approach, but many people assume smaller automatically means lower risk.

In practice, smaller properties can leave you more exposed. If you own a duplex and one tenant leaves, a large portion of your income stream disappears overnight.

A major repair can wipe out most of the year's profit. Even routine turnover carries more weight when there are only a handful of units supporting the property.

That was one of the first lessons Brian and I learned as we expanded beyond lease-to-own and student rentals. Larger apartment communities brought more operational complexity, but they also created more stability.

Vacancies, repairs and day-to-day issues had less impact on the overall performance of the property because the risk was spread across more units.

For individual investors, that doesn't necessarily mean jumping straight into a 200-unit development. It means understanding that larger properties tend to absorb the ups and downs of ownership differently.

When one tenant moves out or an unexpected repair comes up, those issues don't have the same impact they do when you only have a handful of units.

2. Diversification isn't just for the stock market

Buying a resilient property is one decision. Building a resilient portfolio is another.

One of the most important experiences in our early years came during the oil boom in North Dakota. At the time, demand was surging, and we were developing in markets that were growing incredibly fast to house the influx of oil workers.

In the thick of the boom, it felt as if demand would never slow down. Then conditions changed.

That experience reinforced something that applies everywhere: No market stays hot forever, and no region is immune to economic shifts.

After that, we became much more intentional about diversification. We expanded into different states and different types of housing because we didn't want the future of the company tied too closely to one local economy or industry.

For us, that meant — and still means — building a portfolio that isn't overly dependent on any one market, property type or stage of the economic cycle.

Individual investors should think the same way. Too often, people build portfolios entirely around what's familiar or close to home. That can work for a while, but it can also leave investors exposed to risks they didn't anticipate.

This is especially true as regional markets navigate the supply-and-demand resets we're seeing today.

Diversification in real estate is not only about owning more properties. It's about reducing the likelihood that all your investments are affected by the same economic pressures at the same time.

3. Long-term value is usually built through operations, not luck

Many people enter real estate assuming the biggest gains will come from appreciation alone. Sometimes that happens, but relying on market appreciation as the entire strategy can create problems. Strong operators look closely at how a property performs.

• Can expenses be managed more efficiently?
• Are there upgrades that could make the property more competitive?
• Is management helping the property operate at its full potential?

Those decisions tend to matter more over time than hoping the market keeps moving upward.

Investors today also face a more competitive environment than they did a decade ago, especially in multifamily housing. In this sector, value is closely tied to the income a property produces.

Improving operations, reducing inefficiencies and making thoughtful improvements can all strengthen performance in a way that's far more reliable than trying to predict market swings.

That shift in thinking changes how investors approach growth. Instead of waiting for the market to create value, they focus on building value through better execution and better long-term management.

Real estate can absolutely be a strong long-term wealth-building tool, and experience has taught me that success usually comes from focus more than momentum.

The investors who last are usually the ones who show grit when markets change and avoid making emotional decisions when things get uncertain.

That approach might not feel exciting in the short term, but it tends to create far more stability — and success — in the long run.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Historically, summer is a quieter period for trading as market volumes slow down. But 2026 is breaking the rules. With recent tech-sector rotations and unexpected volatility shaking portfolios, putting your investments on autopilot right now could be a costly mistake.

In fact, research shows that 86% of financial advisors ramp up tax management strategies during volatile periods, rather than waiting for a particular season, like year-end.

And one of those employed strategies is tax-loss harvesting — selling underperforming investments to offset capital gains, or even ordinary income. Not only does this practice lock in paper losses early, but it positions your portfolio for tax advantages before filing season arrives.

Here's how to target the right assets to turn your tax losses into a potentially lower federal income tax bill.

This article does not cover state income tax and is for educational purposes only. The content does not constitute financial, legal, or tax advice. Consult a certified financial advisor before making trading decisions based on your individual tax situation.

Why market dips are the strategic time to harvest

Tax-loss harvesting means selling losing investments in taxable accounts to lower the capital gains tax you owe on your winning ones. By taking advantage of this strategy during market dips, you gain three strategic advantages:

• Capturing market dips before they disappear. Selling during dips locks in tax offsets before potential year-end rallies erase your paper losses.
• Avoiding the year-end rush. Executing trades in late November or December (or other times of the year where tax planning is "trending") comes with liquidity pinches, trade execution delays, and wider bid-ask spreads as everyone rushes to rebalance at once. Selling losses as they occur can help avoid all that.
• Proactive portfolio rebalancing. Reviewing your holdings periodically throughout the year gives you breathing room to realign your asset allocation and see trends like asset class drift, sector overconcentration, or performance divergence before they expose you to unintended market risks.

Identifying your tax harvesting targets

But, of course, you don't want just to sell an investment because it's underperforming. Otherwise, you could lose out on savings that would bring more benefit than tax-loss harvesting might (more on that below).

Review your portfolio for these key indicators that an investment might be a good candidate for tax-loss harvesting:

• Focus only on taxable brokerage accounts. Tax-loss harvesting only applies to taxable brokerage accounts where you buy stocks, bonds, mutual funds, or ETFs. Tax-advantaged accounts like IRAs, Roth IRAs, and 401(k)s are ineligible.
• Target assets below cost basis. Focus on positions trading noticeably below what you originally paid for them to generate the most usable realized losses. When placing your sell orders, ensure your brokerage uses "specific identification" or "highest-in, first-out" (HIFO) lot selection so you can sell your specific underwater shares instead of triggering default "first-in, first-out" (FIFO) rules on older, more profitable shares.
• Look for temporary displacements. Identify high-quality assets that have decoupled from their long-term fundamentals during volatility swings.

For instance, in the summer of 2026, the tech sector saw a global sell-off as investors grew increasingly anxious that AI investments were outstripping immediate revenue returns. This anxiety impacted Nvidia (NVDA), Advanced Micro Devices (AMD), and Alphabet (GOOGL) stocks.

For more information on up-to-date stock news, check out Kiplinger's reporting on Stocks: News, Features and Analysis.

How tax savings actually add up: Tax-loss benefits

Selling an asset at a loss in a taxable account gives you a potentially powerful tool to lower your overall tax burden at year-end. This happens across three tiers:

• Offset capital gains dollar-for-dollar. Your losses directly cancel out capital gains realized from winning stock sales or real estate. So, if you made $10,000 in profits earlier this year, $10,000 in harvested losses brings your federal taxable capital gain to $0.
• Deduct up to $3,000 against ordinary income. If your total capital losses exceed your capital gains for the year, you can deduct up to $3,000 ($1,500 if married filing separately) of the excess against ordinary income, like wages or retirement distributions.
• Carry forward the excess indefinitely. Do you have more than $3,000 in net losses with no other gains to net them against? No worries. Unused capital losses don't expire. So you can carry them forward into 2027, 2028, and beyond to offset future gains.

Examples: when tax-loss harvesting can lower your tax bill

How does tax-loss harvesting benefit other items on your tax bill? Here are a couple of examples:

• If you’re subject to the highest tax rate on capital gains (20%), you can potentially avoid that tax through tax-loss harvesting, resulting in valuable savings. Those savings can be reinvested in securities or used to help rebalance your portfolio. (Note: If your income falls into the 0% long-term capital gains tax rate, harvesting long-term losses might not offer immediate savings, as your gains are already tax-free.)
• By deducting up to $3,000 of capital losses against ordinary income, you can save on taxes typically levied on retirement plan distributions, pensions, and other ordinary income sources. An unlimited amount of capital loss might be carried forward to offset gains you anticipate from real estate sales, mutual funds, ETFs, etc.

But don't forget: While the top federal capital gains rate is 20%, there's a net investment income tax (NIIT) that may apply an extra 3.8% on top of that, bringing the total federal rate to 23.8% for some high-income earners.

Navigating the IRS wash sale rule

Before executing trades for tax-loss harvesting, you must navigate the IRS "wash sale" rule.

The rule: If you sell a security at a loss and buy a "substantially identical" security within a 61-day window (30 days before, the day of, or 30 days after the sale), you cannot claim the loss on your current-year tax return. Instead, the loss is deferred — the disallowed amount is added to the cost basis of the new shares, which adjusts your future tax obligation when you eventually sell them.*

This means that, if you want to preserve your target market exposure (without breaking IRS rules), you might:

• Switch to a non-identical replacement. Reinvest sale proceeds into a similar (but not substantially identical) asset. For example, swapping a tech ETF tracking the S&P 500 Information Technology Index for one tracking the MSCI USA IMI Technology Index.
• Try the "double-up" strategy. Buy a matching block of the same security today using available cash. Hold both positions for at least 31 calendar days (so the original purchase falls outside the 30-day pre-sale window), and then sell the original, underwater lot to harvest the loss. (Keep in mind this temporarily doubles your exposure to that investment for 31 days and carries additional market downside risk.)

You should also watch out for other, "hidden" wash sale tax traps, like:

• Automatic Dividend Reinvestment (DRIP). Some portfolios are set up so that dividends are automatically reinvested in the harvested stock or fund during the 61-day window. If a dividend automatically reinvests, that could trigger the wash sale rule.
• The IRA wash sale trigger. While IRAs and Roth IRAs are disallowed from claiming a tax-loss harvest, they can accidentally trigger the wash sale rule if one of them buys back a harvested asset inside the 61-day window. Because retirement accounts don't track cost-basis adjustments, this can permanently eliminate your potential tax deduction rather than just deferring it.

Your financial advisor may have other strategies. But whichever you choose, ensure you account for trading fees or bid-ask spreads (the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to sell). You don't want these costs to outweigh the savings you generate through tax-loss harvesting.

*Note: The rule applies across all accounts you or your spouse own.

What you can do now

If you're ready to turn current or future market volatility into tax savings, follow this summary checklist:

1. Audit year-to-date gains. Tally up any capital gains you've already realized in 2026.
2. Scan taxable accounts. Locate positions affected by recent rotations that are trading below cost basis.
3. Analyze the impact of a sale. If you were to sell the chosen investment, how would you utilize the cash proceeds? How much would brokerage fees eat into your profit margin? Be sure you know the answer to these (and other) applicable questions before making any trades.
4. Execute and swap. Sell chosen losing positions and immediately deploy your capital into suitable, non-identical replacement assets or another strategy. Remember to pause any automatic DRIP reinvestment plans on that security.
5. Document everything. Maintain clean trade receipts and cost-basis logs to help streamline your income tax preparation come spring.

Market volatility is inevitable, but paying unnecessary taxes isn't. By taking a proactive, year-long approach rather than reacting in December, you can transform short-term paper losses into immediate tax savings — freeing up capital to stay invested and compound over time.

So use an hour this week to review your portfolio, consult your tax advisor, and make the next market dip work for you.

Read More

• Here Are The Capital Gains Tax Rates for 2026
• Taxable Income: What It Is and How to Calculate It
• 2026 Tax Brackets and Federal Income Tax Rates: What to Know
• How Long Should You Keep Tax Records?

You've probably spent real time getting your investment costs down. You moved out of a high-fee mutual fund years ago. You watch your expense ratios. That instinct has served you well.

However, here's the uncomfortable math: Shaving another 0.10% off an already-cheap portfolio might save you a few hundred dollars a year. A poorly timed Roth conversion, a missed tax-loss harvesting opportunity or a Medicare premium surcharge you didn't see coming can cost you thousands in a single year, and the damage can compound for the rest of your retirement.

Most investors have optimized fees about as far as they can go. Few have done the same with taxes. That gap is where a lot of your wealth is quietly leaking out, and unlike a fund's expense ratio, nobody sends you a clear, itemized bill for it.

Why fees got all the attention

Fees became the focus because they're easy to see and easy to act on. Pull up two funds, compare the expense ratio, pick the cheaper one. Index funds and ETFs have pushed costs for diversified portfolios down to a few basis points, and that progress is real.

Taxes don't work that way. The cost is spread across decisions made in different years, different accounts and sometimes different tax codes entirely. There's no ticker symbol for "the Roth conversion you should have done in 2024." That makes tax inefficiency much easier to ignore, even though it's often the bigger number.

Here are eight places where that money tends to disappear, and what you can do about each one.

1. Your asset location may be backward

Asset allocation (how much you hold in stocks versus bonds) gets all the attention. Asset location (which accounts hold those assets) usually gets none.

Say you hold $200,000 in taxable bonds throwing off 5% interest, or $10,000 a year, inside a regular brokerage account taxed at your 24% tax bracket. That's $2,400 a year in tax you wouldn't owe if those bonds sat in your IRA instead.

Meanwhile, the tax-efficient index fund sitting in that IRA would have cost you almost nothing in a taxable account.

Swap the two and you keep that $2,400 every year going forward. That's usually a one-time fix you can make in an afternoon with your statements in front of you.

2. You're skipping your cheapest years to do Roth conversions

If you retired before claiming Social Security and your required minimum distributions (RMDs) haven't kicked in, you may be living through the lowest-tax years of your entire retirement, often sitting comfortably in the 12% or 22% bracket.

That window typically closes once RMDs begin, sometimes pushing you into a higher bracket for the rest of your life.

Converting traditional IRA assets to a Roth during these lower-income years, even in modest annual amounts, can lock in today's tax rate instead of tomorrow's higher one. Run the numbers with your tax preparer before year-end, since this window doesn't reopen.

3. Your mutual fund just sent you a tax bill for a year it lost money

If you've ever opened a 1099 and found a capital gains distribution on a fund that actually dropped in value that year, you've felt this one. It happens because the fund manager sold winning positions inside the fund, and the tax bill gets passed to everyone holding shares, regardless of when they bought in.

Let's say you have a $150,000 position in an actively managed fund and it distributes a 6% capital gain, which is a fairly ordinary distribution in an up market. That's $9,000 in gains landing on your return and, at a 15% capital gains rate, a $1,350 tax bill on a fund that may have actually lost value during your holding period.

ETFs are structured to largely avoid this. If you're holding actively managed mutual funds in a taxable account, check whether the same strategy is available in ETF form, or move that holding into your IRA where the distribution doesn't matter.

4. You're pulling money from the wrong account first

Most retirees draw down whichever account feels easiest to tap rather than the one that's most tax-efficient.

Spend down a $500,000 taxable account too fast in your 60s, for instance, and you may enter your 70s relying heavily on traditional IRA withdrawals just as RMDs force even more income out at the same time, pushing what could have been a 22% bracket year into the 24% bracket.

Leave your Roth untouched until you don't need it and you waste years of tax-free growth it could have provided.

The right order depends on your brackets, balances and timeline, but it's worth building a multi-year withdrawal plan rather than deciding year by year.

5. You're not harvesting losses when the market gives you the chance

Tax-loss harvesting means selling an investment at a loss to offset gains elsewhere in your portfolio, or up to $3,000 of ordinary income each year, then reinvesting in something similar so you stay in the market.

If a market downturn leaves one holding down $8,000, selling that loss to offset $8,000 of gains elsewhere saves you roughly $1,200 to $1,920 in tax, depending on whether it offsets short-term or long-term gains.

It costs nothing but attention, and most taxable investors never bother unless their adviser automates it.

6. Medicare could quietly double your premium

The income-related monthly adjustment amount (IRMAA) adds a surcharge to your Medicare Part B and Part D premiums once income crosses certain thresholds, based on your tax return from two years earlier.

In 2026, that surcharge kicks in above $109,000 for single filers and $218,000 for joint filers, pushing your total Part B premium as high as $689.90 a month, with Part D adding up to $91 more.

Because of the two-year lookback, a large Roth conversion, a property sale or a big capital gains year can trigger a surcharge you won't see until the notice arrives. What's more, crossing a threshold by even a dollar triggers the full surcharge for that tier.

If you're approaching Medicare age or planning a big income event, model the IRMAA impact two years out before you pull the trigger.

7. Your estate plan may be built for rules that no longer apply

If you did your estate planning in the past few years, you likely did it under the assumption that the federal estate tax exemption was about to be cut roughly in half. That didn't happen.

The One Big Beautiful Bill Act (OBBBA), signed in July 2025, permanently raised the federal exemption to $15 million per individual, or $30 million for married couples using portability.

For most families, that removes federal estate tax as a concern entirely. However, several states, including New York, Massachusetts and Oregon, still tax estates at thresholds far below the federal level, so you can owe a state estate tax with an estate nowhere near large enough to trigger the federal one.

If your plan hasn't been reviewed since the law changed, it's worth a checkup, both to avoid over-optimizing for a tax you no longer owe and to catch a state tax you still do.

8. Your retirement move may cost more than you think

If moving to a new state is in your retirement plan, the tax bill deserves the same scrutiny as the cost of the house. In addition to income tax, different states tax Social Security, pensions and retirement assets differently.

As of 2026, just eight states still tax Social Security at all: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont. The other 42, plus Washington, D.C., don't touch it.

Take a retired couple collecting $40,000 a year in Social Security and $30,000 from a 401(k). In a no-tax state such as Florida or Tennessee, none of that income is taxed at the state level.

In Colorado, retirees 65 and older can deduct all their federally taxed Social Security, so that part is sheltered, but the $30,000 in 401(k) withdrawals is still taxed at Colorado's flat 4.4% rate, about $1,320 a year.

In a state without that deduction, a meaningful share of the Social Security itself could also be taxed, adding hundreds more.

Picking a state based on weather or family without running the numbers first can mean paying more, or less, than expected, often by more than any fee you've ever paid on your portfolio.

The bottom line

It's important to keep an eye on your fees, but that work is mostly done. However, if you haven't reviewed your asset location, your Roth conversion timeline, your withdrawal order, your loss-harvesting opportunities, your Medicare exposure, your estate plan and your state tax footprint in the past year or two, that's almost certainly where your next real savings are sitting.

Unlike fees, tax efficiency isn't a one-time fix. The rules change, your income changes and your balances shift every year, which is exactly why this gets neglected.

Set aside one afternoon a year, ideally with your adviser and tax preparer in the same conversation, to go through this list. It will likely do more for your bottom line than any fund swap you make this year.

Related Content

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• Are You Ready to Retire? Find Out With This 10-Item Checklist

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Sometimes, punching the clock for the very last time can feel more unsettling than exciting, even if your biggest fear isn't running out of money. Instead, it might be losing the daily structure, work friendships, or the purpose and identity that the workplace provided.

The good news? There are both practical and psychological signs that you're truly ready for retirement, and on your way to enjoying one of the best chapters of your life.

Here are 8 key signs you'll thrive in retirement — even if part of you is quietly panicking.

1. You're already practicing retirement

If you've already started experimenting with having spontaneous days — whether during long weekends, vacations or through phased work — and found yourself energized rather than anxious, that's an indicator you're ready to retire.

People who thrive in retirement often discover they can create their own rhythm. They replace the old 9-to-5 with new hobbies, volunteering, exercise, taking classes, or spending more time with the grandkids or other family — and they do it without feeling particularly anxious or guilty.

Rod Mitchell, Psychologist and Clinical Director at Emotions Therapy in Calgary, explains that one indicator of how prepared someone is for retirement is whether they have developed their own daily structure during unscheduled periods. "The people who tend to thrive in retirement are those who feel calm, not anxious, when they look at an empty calendar for the coming week," Mitchell said.

2. Your finances give you real breathing room

Financial security is the foundation of a happy retirement. You don't need to be wealthy, with the magic number of $1.46 million in your pocket. However, you should have a clear picture of your income sources from Social Security, retirement accounts, savings and investments, and a realistic withdrawal plan in retirement.

A good rule of thumb is that once your everyday expenses are covered with breathing room and your emergency fund is solid, you can shift your focus from survival to lifestyle. From that point, retirement calculators and annual financial reviews turn leftover money worries into actionable plans for a comfortable future and a happy retirement.

3. You've got a life beyond work

One of the strongest predictors of happiness in retirement is having a few (or many) interests and relationships outside of work. If you have friends, community groups, or passions that are not specific to your job title, you're already ahead of the game.

Elizabeth Lombardo, PhD, Concierge Coach at Elizabeth Lombardo International, LLC, says that since we are all social creatures, having strong relationships outside of work is a step toward ensuring you thrive in retirement. "If your entire social circle revolves around your job, you might worry about loneliness. Cultivating new friendships through community groups, hobbies, or volunteering can help you build a supportive network that sustains your happiness in retirement."

4. You're curious about the future

A subtle but telling sign you are anticipating what's yet to come is shifting your thinking from "I'll miss the office" to "I wonder what I'll try next."

Retirement-ready individuals tend to feel some curiosity and excitement when they think about life beyond work. They may be itching to talk about travel, learning a new skill, starting their own small business, or finally tackling that list of long-overdue projects.

"The happiest retirees are those who have planned for the transition," says Stuart Schiffman, Founder and Principal at Compound Wealth Advisors. "They take into account the time they have left, the goals they want to achieve for themselves, and the values they want to instill as a legacy for future generations."

5. You have a flexible plan for the future

Thriving in retirement doesn't require a minute-by-minute schedule, but having some structure helps. For example, Monday for exercise and volunteering, Tuesday for grandkids and yard work. Allowing yourself the flexibility to change your plans is what separates those who flourish from those who feel at loose ends.

Financially, this also means having a flexible spending plan that takes into account healthcare expenses, travel costs and money leftover for fun, without derailing your nest egg.

6. You're comfortable with a slower pace

Work often defines who we are. A key psychological sign of a happy retiree is when you start separating your self-worth from your job title. If you can imagine introducing yourself without mentioning what you used to do for a living — and feel okay about it — you're making progress.

"This perspective allows retirement to represent a period of potential personal development rather than an end to previous experiences," said Dr. Lauren Grawert, MD, Clinical Advisor at The Garden Recovery and Wellness.

7. Your physical and mental health are priorities

Preparing to succeed in retirement means taking care of your physical and mental health with regular checkups, physical activity, social connections and good sleep.

On the financial side, long-term estate planning and health care cost estimates are factors you need to consider when laying out your retirement budget. Long-term care is expensive, and preparing ahead of time can make all the difference between a stressful and stress-free retirement.

8. You're more excited than scared about the future

It's normal to have mixed emotions about retirement. But if feelings of possibility and relief are starting to outweigh the fear of losing the structure of the workplace, you're ready to kick the day job goodbye. Retirees who thrive treat the transition like any big life change, with preparation, patience and a willingness to adjust.

Make sure your money is working for you

A big part of thriving in retirement is knowing your money is working for you. Here are a few practical tips that can help reduce any anxiety you might be feeling:

• You've stress-tested your estate and retirement plans against market downturns, inflation and a longer lifespan.
• You maintain a diversified portfolio with some conservative investments as you age.
• You've considered part-time work, consulting, or a small "retirement business" as a way to phase into retirement.
• Healthcare and long-term care costs, including Medicare supplements, HSAs, or insurance, are factored in.

Give it a try first

Lombardo offers these final words of advice: "I often encourage people to try out retirement by taking an extended vacation where they are completely cut off from work. This is not feasible for everyone, but for those who are considering retiring and not sure that they can handle it, an extended period away from work allows them to start to develop some of the important components of a healthy retirement."

Do you recognize any of these signs in yourself? If so, bravo. You're not just surviving retirement, you're well on your way to making it your best chapter yet.

Related content

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For older adults who need supervised care throughout the day, an adult day center can offer some much-needed support. These nonresidential facilities provide services such as medical assistance, social interaction and organized activities for participants, who typically have some physical or cognitive impairment. And their adult child, spouse or other caregiver can use the time to work or take a break from their caregiving responsibilities.

Generally, there are three types of adult day centers. Social day centers primarily offer opportunities for attendees to interact with one another and participate in group activities. A medical day center also provides health-focused services, such as physical or occupational therapy. Specialized centers include services such as memory care or therapeutic exercises for those with certain health conditions, such as dementia or Parkinson's disease.

To find local day centers, Tia Sauceda, executive director of the National Adult Day Services Association, suggests using NADSA's tool or this AARP-sponsored directory (click on "Community Services"). Or ask your loved one's doctor for recommendations. Once you've narrowed down a list of centers to consider, contact your state's department of aging to verify that they are licensed, and visit them in person, says William Zagorski, president of American Senior Care Centers, in Nashville. Day centers typically require a doctor's letter detailing the attendee's health condition.

Financial assistance and tax breaks

According to a 2025 study from CareScout, a site families can use to search for care providers, adult day centers charge a median daily rate of $95. Some centers have additional fees for certain services, such as a certified nursing assistant providing showers, says Sauceda.

While original Medicare generally doesn't pay for care at an adult day center, some Medicare Advantage (Part C) private insurance plans cover the expense. Medicaid, the government-provided health insurance for low-income Americans, may also cover day center care.

A specialized Medicare/Medicaid program that provides coverage for adult day center services is the Program of All-Inclusive Care for the Elderly (PACE). It aims to help older adults who need a nursing home level of care to continue living in their homes and is offered in 33 states (see the list here) and Washington, D.C.

A couple of other possible avenues for financial assistance: If your loved one has a long-term-care insurance policy, see whether care from an adult day center is included. Military veterans enrolled in the Veterans Affairs Medical Benefits Package who need clinical care are eligible for coverage at an adult day center.

Don't overlook tax breaks you may qualify for as a caregiver. If your loved one is unable to care for himself or herself and lives with you at least six months of the year, and you pay for them to attend a day center while you work or seek employment, you may be able to claim the child and dependent care tax credit.

If your employer offers a dependent care flexible savings account, through which you can set aside pretax dollars to pay for a dependent's care while you work, you may use those funds for day center care. (Note that you can't use the same expenses your FSA reimburses to claim the child and dependent care tax credit.)

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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Usually, there are crosscurrents in financial markets, but today's seem particularly demanding.

The war in Iran seems always there, affecting short-term policies while being a longer-term problem. We don't know where it will go, just that the on-again, off-again intensity of the war affects the stock and bond markets.

Adding to this scenario is AI. Artificial intelligence is very promising, but it's hard to determine who the big winners are. The staggering sums of money that companies are investing in AI is worrying many investors, while the earnings that AI-related companies are reporting are impressive.

But will that growth continue and at what pace? This clouds the longer-term outlook.

Some investors are throwing their hands in the air and selling all or some of their equity holdings.

Here's an option: Fixed income

Meanwhile, fixed income is attractive, with rates having risen. For example, the 30-year Treasury bond is back up to about 5%, a number that hasn't been seen except for brief periods since July 2007.

The U.S. Treasury securities market has grown substantially, and individual investors have participated in its growth. Treasuries carry the U.S. government guarantee of timely payment of principal and interest. The interest that U.S. Treasuries pay is exempt from state and local taxes. This makes them the highest-quality investment of their type.

So, what is the best way to buy Treasury securities?

The go-to way to trade Treasuries used to be to visit TreasuryDirect.gov, but not anymore. The much larger Treasury market has flooded TreasuryDirect and made it impossible for the site to keep up with demand.

There are many reasons for this growth, including the increased share of insurance companies, money market instruments and broker-dealers buying Treasuries; the Federal Reserve shrinking its balance sheet; and pension funds and other institutions increasing their holdings.

The result is that the site recently reported delays in its response to fill mail requests. Among other delays, it could take nine months to complete converting paper savings bonds into electronic bonds. To cash paper savings bonds could take at least three months.

And requests to find lost, stolen or missing savings bonds would take a minimum of 11 months to process.

More bond trading

Bond trading volume is probably going to increase. Kevin McPartland of Crisil Coalition Greenwich reported in April that corporate bond market trading hit an average of $65 billion traded per day in March.

This was a record, surpassing the volume of the previous month, which was also a record.

Also, on the last day of March, $108 billion was traded, a single-day record for bond trading.

McPartland also pointed out that this higher bond volume was partly being facilitated by the advanced electronics used by institutional traders.

Another factor is that developed execution management systems are being employed, along with more standardized post-trade processes.

He pointed out that even though the systems and tools are more advanced, good people handling the processes are still needed. "Traders want a human element even when trading electronically," he wrote.

How to buy and sell fixed income, including Treasuries

Brokerage firms have always offered fixed-income securities, including Treasuries, but they have improved the ways for investors to buy and sell, even for small amounts. For example, the electronic trading platform Public has secondary market liquidity, an easy-to-navigate interface and other advantages.

Although bonds usually trade in $1,000 increments, Public trades corporate bonds and Treasuries in as few as $100 increments.

Investors can also build ladders at Public, spreading maturity dates to match investor needs. This can be done with Treasuries or bonds. Investors can call Public anytime, day or night, for support.

Another broker, Charles Schwab, advises that certificates of deposit (CDs) and Treasury bonds are two of the safest fixed-income investments you can make. And both can add diversity to your portfolio, generate income and protect principal. (Schwab also points out that investors can lose money in these securities.)

Schwab, like other brokerages, has fixed-income specialists available for calls from investors, as well as in-house traders who can be contacted either by phone or online. Schwab additionally builds taxable and tax-free Treasury and bond ladders for investors.

Fidelity Investments created a fixed-income site that offers a wide range of bonds, Treasuries and other offerings — 75,000 to 100,000 new issues and secondary securities are offered.

Fidelity charges only $1 markup or markdown for bonds traded in the secondary market; it charges no fee for online U.S. Treasuries.

For qualified clients, it offers help from fixed-income specialists and provides a high-net-worth desk to help investors with bonds and CDs.

Interactive Brokers (IBKR) is another broker committed to upgrading bond trading to a new standard and doing it on a worldwide basis.

On its platform, investors can invest globally in many financial securities, including equities, options, currencies, futures, bonds and funds. Accounts can be funded in many currencies, and trades can be denominated in different currencies. Market data can be accessed six days a week, 24 hours a day.

Thomas Frank of IBKR said, "We aim to provide our clients with the most flexible and comprehensive trading environment possible."

To that end, IBKR offers over 1 million corporate, municipal, non-U.S. sovereign bonds and Treasuries. These are offered without markups or built-in spreads.

ETFs that are unique

The professionals at investment management firm F/m Investments believe that investors have sent a clear message — they want safety, and they want to be shielded against inflation.

According to F/m, that's why investors poured $25 billion into ultra-short-duration U.S. Treasury ETFs. The funds started coming into the ETFs — BIL, SHV, SGOV and TBIL — at the outset of the Iran conflict and took only six weeks to be deposited.

The reason for the investment surge, according to F/m, is that these ETFs pay an attractive rate.

Also, if the conflict raises inflation further, these ETFs can reset soon to receive higher yields. And principal is protected because these securities will fall less than longer-term bonds as a reaction from the market adjustment to the higher rate.

F/m offers investors its single-maturity Treasury ETFs, called the U.S. Benchmark Series. The series makes it possible to buy Treasury ETFs during stock market hours and lock in the current on-the-run yield. On-the-run refers to the securities most recently auctioned. The securities are held only until the next auction, and they are sold, with the proceeds being used to buy a new series being auctioned.

The U.S. Benchmark Series is available in the full maturity range of Treasury bills, bonds and notes. This includes all securities from the 3-month Treasury bill ETF (TBIL) to the 30-year Treasury bond ETF (UTHY).

Treasury yields are attractive, even at the short maturity end: The TBIL yield is 3.54%; UTHY is 4.85%. This yield will change throughout the trading day; the market price will price in changes. The market price of publicly traded Treasuries and other income securities, in an ETF structure or individual securities, will fluctuate, and money can be made or lost.

The U.S. Benchmark Series offers maturity date diversification. As interest rates fluctuate between the series offerings, investors can switch into a higher-yielding Treasury or stay where they are.

The ETF series attempts to pay interest monthly, another advantage over holding individual Treasuries. The expense ratio is reasonable at 0.15% per annum.

Navigating today's volatile markets requires staying informed and being flexible, but whether you choose to buy individual Treasuries through a brokerage or opt for the simplicity of ETFs, there are reliable tools to help you protect your capital and generate steady income.

Related Content

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• 5 Ways to Increase Your Investment Income in Retirement
• Where to Find the Top Yields For the Rest of 2026
• Is the 'AI Bubble' a Myth? Why Tech Experts Say AI's Boom Is Just the Beginning
• Should You Consider Investing in the Quantum Computing Sector? This Investment Adviser Has Some Suggestions

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Oil prices surged and the stock market's "fear gauge" spiked as the war between the U.S. and Iran escalated again on Wednesday. Violence in the Middle East continues to impede traffic through the Strait of Hormuz, while even exponential growth for AI-related companies is letting down investors, traders and speculators.

"We'll be hitting them hard," President Donald Trump told Fox News after Iran struck a U.S. base in Jordan. "They're going to get a beating." The front-month West Texas Intermediate crude oil futures contract was up 7.2% at $84.94 per barrel.

The Cboe Volatility Index (VIX) rose from 18.21 on Tuesday to as high as 20.34 on Wednesday, breaching its "normal" range of 12 to 20 and settling at 20.05.

The July Fed meeting ended where investors, traders and speculators thought it would: with interest rates unchanged for the fifth straight time but central bankers worried about inflation and the energy shock.

The target range for the federal funds rate remains 3.50% to 3.75%. But three voting members of the Federal Open Market Committee (FOMC) dissented from the decision because they favored raising it by 25 basis points.

"Economic activity is expanding at a solid pace," reads a repeated sentence in a subtly updated but still brief FOMC policy statement, "despite elevated uncertainty that owes, in part, to the conflict in the Middle East."

Looking for more timely stock market news to help gauge the health of your portfolio? Sign up for Closing Bell, our free newsletter that's delivered straight to your inbox at the close of each trading day.

As Fed Chair Kevin Warsh said during his press conference, "We'll be watching inflation data over the period ahead," but he also said the central bank wouldn't rely exclusively on any one piece of it.

Acknowledging a steep rise in market-based rates over the last 42 days, the Fed chair noted shocks the economy seems to be absorbing relatively well so far.

By the closing bell, the tech-heavy Nasdaq Composite had shed 1.7% to 24,442, the broad-based S&P 500 was down 1.5% to 7,316, and the blue-chip Dow Jones Industrial Average had declined 2.2% to 51,594.

SKHY leads chip stocks lower again

The earnings calendar is the market's main focus following an overnight preview from South Korea-based SK Hynix (SKHY, -2.6%). The Nvidia (NVDA, -3.6%) supplier reported 257% top-line growth, as well as a 557% rise for operating profit and a 1,242% earnings increase.

But SK Hynix stock was down 9.6% on its local exchange because it failed to meet high expectations, and trading was halted on South Korea's KOSPI Index to stem a broader sell-off. The KOSPI closed lower by 6%.

Losses were similar for Nvidia and other semiconductor stocks such as Advanced Micro Devices (AMD, -5.5%), Broadcom (AVGO, -2.8%) and ASML (ASML, -2.0%), with Micron Technology (MU, -9.9%) suffering like fellow memory stock SKHY.

Up now are Meta Platforms (META, -1.3%) and Microsoft (MSFT, -0.7%), with Apple (AAPL, -0.6%) and Amazon (AMZN, -1.8%) to follow on Thursday.

CAT dogged by data center debate

Caterpillar (CAT, -6.9%) was the worst-performing Dow Jones stock on Wednesday after Baird analyst Mircea Dobre cut his rating on the heavy equipment maker from Buy to Hold and reduced his 12-month target price from $1,200 to $900.

Dobre cited rising regulatory opposition to AI data centers due to environmental strains and power grid pressures.

"The ground is shifting in many ways; the recent New York State moratorium on data center construction is the highest-profile example of a bigger (and growing) trend towards regulatory action at state and local level targeting data centers," the analyst observes. "This raises costs, adds new development approval hurdles, limits site availability, and likely slows future investment."

Caterpillar is scheduled to report second-quarter results before the opening bell next Tuesday, August 4. Wall Street expects to see earnings of $6.20 per share (+31.4% year over year) on revenue of $19.17 billion (+15.7% YoY).

CAT hit new all-time intraday and closing highs on June 30. The industrial stock is down 20.9% since then, shedding more than $100 billion in market cap.

What the 2-year Treasury yield says about a rate hike

According to LPL Financial Chief Technical Strategist Adam Turnquist, markets have adjusted to a "higher-for-longer" environment, with the 2-year Treasury yield up about 90 basis points from its February 27 low of 3.375% and outside the target range for the federal funds rate since April.

Turnquist describes eight periods since the 1980s during which the 2-year yield was above that range while policy was on hold, defined as at least three months without a change in the fed funds rate, along with a "crossover period" of at least 20 consecutive trading days.

"As of July 28, 2-year yields have remained above the fed funds target rate for 68 trading days," Turnquist notes, "with the spread reaching a maximum of 0.60% so far."

The median maximum spread for the comparison period was 0.97%. And Turnquist concedes the limited nature of the historical data set means it can't be used to either confirm or rule out a rate hike.

Still, he concludes, "The comparison suggests the current crossover is less mature than the three completed historical signals that ultimately preceded tighter monetary policy."

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As someone who reviews savings accounts and inflation for a living, it's become easier to see where things are heading. Understanding how these trends move can be the difference between keeping your money in the right account and missing opportunities to maximize growth.

Case in point, inflation remains stubbornly high, and ongoing tensions in the Middle East could keep pressure on energy prices. David Payne of the Kiplinger Letter projects inflation will be around 4.0% to end the year. If higher inflation persists, it could eventually force the Federal Reserve to hike rates. For now, though, the Fed left its benchmark interest rate unchanged at 3.5% to 3.75%, signaling that policymakers are still waiting for clearer evidence that inflation is moving back toward its 2% target. For savers, the Fed's decision means today's high-yield savings accounts and CDs remain attractive options, though the next move will depend on how inflation evolves.

Navigating these shifts is the difference between letting your money stagnate and putting it to work. If you have $10k sitting on the sidelines, here are the smartest places to park it — and the traps you need to avoid.

The smartest places to park your cash in the interim

First, if you're building an emergency fund or have short-term savings goals that require liquidity, a high-yield savings account will be the best option. And when you're looking for one, I recommend finding an account earning at least 4.00% APY, since that's likely where inflation will remain for the foreseeable future.

Based on my research, this savings account is a home run option:

Meanwhile, if you have an emergency fund and don't require any liquidity, I would recommend a short-term CD. Look for options between three and six months, since if a rate hike happens, it will likely be in the fall or winter.

If it does, it puts you in prime position to capitalize on even higher rates when your CD matures. Use this Bankrate tool to compare and find the best solution for your money:

Another positive about this approach is that if the Fed doesn't hike rates and inflation remains high, you have flexibility to decide where to hedge your cash in the near future.

Whether that's renewing your existing CD or putting money in the market, you won't have to worry about your future purchasing power eroding due to inflation.

These are the savings accounts I would cautiously consider

Long-term CDs are cozy solutions. After all, once you open one, you're guaranteed to earn that APY no matter what happens. If you're approaching retirement and are concerned about market volatility, it can be a smart approach.

Here are some of the top options I found to help you:

One thing to remember is that the longer your money sits in a CD, the more susceptible it could be to losing future purchasing power if inflation continues to rise. So these options work best for savers with an emergency fund, short-term savings and retirement goals all either fully funded or on course to be.

Avoid this savings trap

The only savings accounts I don't recommend using right now are those at brick-and-mortar banks, where your APYs will be much lower than the current inflation rate of 3.50%. This means every dollar you have in one of these accounts loses purchasing power every month you keep it there.

That said, some local banks do offer higher returns on money market accounts or CDs if you deposit enough money into them, usually between $10,000 and $25,000. So, if you're in a position where you don't feel comfortable moving away from your local bank, ask about any savings incentives they have that can help you.

Ultimately, managing your cash effectively requires a strategic approach. Take a moment to audit your current accounts against the 3.50% inflation rate.

By prioritizing high-yield options that keep your money working for you, you can strike a balance between liquidity for immediate needs and growth to hit your long-term targets. You'll also protect your purchasing power and make the most of your $10k savings.

The right savings strategy is a strong starting point, but a financial professional can help you build on that foundation with a personalized plan for your long-term goals.

Use the tool below to connect with a financial advisor and get started today:

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Retirement has a lot of moving parts, and planning for them can be overwhelming.

Taxes, investments, Social Security, estate planning, healthcare and income strategies all compete for attention, and many retirees end up postponing important decisions because they aren't sure where to start.

As a CERTIFIED FINANCIAL PLANNER® and CEO of Peak Retirement Planning, I can tell you that the good news is that not every improvement requires a complete overhaul of your financial plan.

In fact, some of the most impactful retirement moves can be implemented relatively quickly.

While no single strategy is a silver bullet, taking action on a handful of key areas today could improve tax efficiency, simplify your finances and create more flexibility later in retirement.

Below are 10 retirement fixes worth considering.

1. Review whether Roth conversions make sense

For many retirees and pre-retirees, Roth conversions remain one of the most powerful tax-planning opportunities available (I talk about Roth conversions more in depth in my bestselling book I Hate Taxes, which you can request for free here).

The basic Roth conversion concept is straightforward: Move money from a traditional IRA into a Roth IRA, pay taxes on the converted amount today and enjoy tax-free withdrawals in the future.

This strategy can be especially attractive for retirees who expect a higher future taxable income from pensions, required minimum distributions (RMDs) and Social Security. By paying taxes now, while rates remain historically low, you could reduce future tax burdens and create greater flexibility later.

That said, Roth conversions are rarely as simple as they appear. They can affect Medicare premiums, Social Security taxation and other aspects of your tax return.

Before making a move, it's important to run the numbers and look at them carefully.

2. Take advantage of available charitable tax benefits

Many retirees are charitable by nature, yet they often miss opportunities to maximize the tax benefits of their giving. Recent tax law changes have expanded charitable deduction opportunities for some taxpayers, even those who don't itemize deductions.

A little organization today could result in significant tax savings when it's time to file.

3. Improve your tax location strategy

Most investors focus heavily on asset allocation. Far fewer pay attention to asset location.

Asset allocation determines what you own, but asset location determines where you own it.

For example, growth-oriented investments might be more valuable inside Roth accounts because future appreciation could be tax-free.

Meanwhile, more conservative holdings could be appropriate inside tax-deferred retirement accounts.

Two investors can own identical portfolios yet experience very different tax outcomes depending on how their investments are positioned across account types.

Reviewing account placement might not require changing your investments at all, but it can have a meaningful impact over time.

4. Maximize retirement account contributions

Many workers increase their salaries over time but forget to increase their retirement contributions. If you're still employed, review your current contribution levels to workplace plans, IRAs and health savings accounts (HSAs).

Contribution limits often increase, and individuals age 50 and older may qualify for additional catch-up contributions.

A small adjustment to your payroll deductions today could translate into thousands of additional dollars for retirement down the road.

5. Reevaluate where excess cash is sitting

Many retirees and near-retirees accumulate large balances in savings accounts or taxable brokerage accounts while underutilizing tax-advantaged retirement vehicles.

If you have excess cash and are eligible to contribute to retirement accounts, consider whether those dollars could be working harder in a Roth IRA, Roth 401(k), traditional IRA or HSA.

In many cases, repositioning existing assets can improve long-term tax efficiency without changing your overall investment strategy.

6. Become more tax-efficient in taxable accounts

For investors with substantial brokerage accounts, tax management can be just as important as investment management.

One opportunity many people overlook is tax-loss harvesting, which involves realizing investment losses to offset gains or reducing taxable income. Over time, these tax savings can add up significantly.

Investors with larger taxable portfolios could also benefit from strategies such as direct indexing, which can provide additional opportunities to harvest losses while maintaining market exposure.

Even modest improvements in tax efficiency can create significant long-term value.

7. Audit your mutual funds

Many investors continue to hold mutual funds purchased years ago without reviewing whether those holdings remain appropriate. Some mutual funds carry higher internal expenses than comparable ETFs or index funds, and others may generate taxable distributions that create unexpected consequences in brokerage accounts.

Conducting a mutual fund audit doesn't necessarily mean replacing every holding.

However, reviewing expenses, tax efficiency and performance relative to alternatives can help identify opportunities for improvement.

8. Update your estate planning documents

This might be the least exciting item on the list, but it could be among the most important.

Wills, trusts, powers of attorney and healthcare directives are foundational components of a retirement plan, and yet, most Americans either don't have these documents or haven't reviewed them in years.

Life changes. Laws change. Family circumstances change. If your estate plan hasn't been updated recently, now may be the time to revisit it.

Equally important, make sure beneficiary designations on retirement accounts and insurance policies align with your overall plan and goals.

9. Simplify and consolidate accounts

Many retirees accumulate accounts over decades of employment. A former 401(k) here. An IRA there. A brokerage account somewhere else. Before long, keeping track of everything becomes unnecessarily complicated.

Consolidation might not improve investment returns, but it can make your finances easier to track.

It could also simplify tax reporting, improve organization and reduce confusion for spouses or heirs if something happens to you.

Sometimes the greatest benefit isn't financial performance; it's peace of mind.

10. Don't forget to enjoy the money

This final fix may be the most challenging one for diligent savers. Many successful retirees spent 30 or 40 years accumulating wealth and have developed strong saving habits, avoided lifestyle inflation and consistently prioritized financial security.

The challenge is that those same habits can make it difficult to spend money in retirement. Retirees still need a plan to avoid overspending, but many aren't in danger of running out of money; they're in danger of never fully enjoying what they've worked so hard to build.

Whether it's traveling with family, helping children and grandchildren, supporting charitable causes or simply creating memorable experiences, retirement isn't just about preserving assets; it's about using those assets to support the life you want to live.

After all, while running out of money is a legitimate concern, running out of time might be the greater risk.

The most successful retirement plans balance both sides of the equation: They protect your future while giving you permission to enjoy the present.

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• Do You Need $1 Million-Plus to Retire if You Have a Pension?
• Many Retirees With a Pension and $1 Million-Plus Do These 7 Things (and Regret It Later)

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Even after paying off a mortgage, rising property taxes can be a significant financial challenge, especially for retirees living on fixed incomes.

Recent data show that property tax bills nationwide average $4,427 annually per single-family home, a more than 3% jump from the previous year.

But…several states are currently considering changes to their property tax systems. As a result, this November, many voters will decide whether to freeze taxable home values, expand homestead exemptions, or cap annual assessment spikes — changes that could provide relief to many homeowners struggling with affordability.

So, if you're an older adult homeowner, or someone helping an aging loved one manage housing costs, here are some key property tax changes to watch this year.

Louisiana property tax exemption for seniors

Voters in Louisiana will decide in November whether to expand property tax relief for some older homeowners through a proposed constitutional amendment created by House Bill 514 (Act 274).

• The measure would allow parishes and municipalities to provide an additional property tax exemption for qualifying homeowners age 65 or older.
• Eligible taxpayers must own and occupy a homestead and qualify for Louisiana’s existing special assessment level program.

How it could affect older homeowners: The proposal wouldn’t eliminate property taxes for older adults statewide. Instead, the measure would give local governments the option to offer this additional benefit.

• If a parish or municipality adopts the exemption, qualifying homeowners age 65 and older could receive an additional reduction in their taxable home value.
• That could, in turn, potentially lower their property tax bills.

Supporters say the tax measure would help older adults stay in their homes as property values rise. It could also provide relief to retirees whose incomes may not keep pace with housing costs.

Note: Louisiana already provides a special assessment level program that protects certain qualifying seniors from increases in the assessed value of their homes. But advocates see the proposed exemption as an additional layer of protection.

Opponents’ concerns focus primarily on the effect on revenue. Property taxes help fund schools and local services, and expanding exemptions could mean less money for local government priorities.

If approved by voters on the November 3, 2026 Louisiana ballot and adopted by local governments, the exemption would apply to tax years beginning January 1, 2028.

Oklahoma property tax cap & senior protection tiering

Oklahoma voters will decide this fall whether to approve State Question 847, a constitutional amendment to slow property valuation growth statewide while restructuring tax protections for older adult homeowners.

For homeowners overall, the measure would reduce the annual cap on homestead property valuation growth from 3% to 1.75% and non-homestead real property from 5% to 4%.

How it could affect older adult homeowners: Unlike general property tax caps, State Question 847 would modify Oklahoma's existing Senior Valuation Limitation (senior freeze) program for homeowners age 65 and older:

• Seniors with low-to-moderate income: Retirees earning at or below their county's HUD median income would retain a 0% freeze on taxable property value increases.
• Seniors with higher income: Currently, seniors earning over the median income receive no valuation protection. Under the proposed measure, senior property valuation increases would be capped between 0.35% and 1.75%, scaled according to household income brackets.

Supporters argue that replacing the "all-or-nothing" income threshold with a sliding scale ensures that older adults with middle incomes on fixed pensions aren't suddenly exposed to full market-value spikes, while keeping baseline caps predictable for all Oklahomans.

Opponents argue that altering senior freeze structures creates uncertainty for local school districts and municipal services that rely heavily on property tax revenues to fund local infrastructure and career centers.

State Question 847 will appear on the November 3, 2026 ballot. If approved, the new valuation caps and senior income tiers would take effect for tax year 2027.

Florida homestead exemption: Amendment 3

Florida voters will decide in November whether to approve a constitutional amendment that would significantly increase the state’s homestead exemption.

The measure, known as Amendment 3, would raise the exemption from $50,000 to $150,000 in 2027 and then to $250,000 in 2028 for qualifying homesteaded properties. The increased exemption wouldn’t apply to school district taxes.

Those who qualify for the homestead exemption would have a larger portion of their home’s value excluded from tax, potentially lowering their property tax bills.

How it could impact older adult homeowners: Unlike the Louisiana proposal, Florida’s measure isn’t limited to those 65 and older. It would apply broadly to homeowners who qualify for Florida’s homestead exemption.

However, the measure could have a significant impact on older homeowners in part because of the state’s large retiree population. The savings could be particularly helpful for Florida retirees with fixed incomes, who are increasingly facing rising insurance, housing, and living expenses.

• Supporters argue that Florida homeowners need relief after years of rising property values and higher housing costs. They say expanding the homestead exemption would allow residents to keep more of their income and make it easier for some of them to remain in their communities.
• Critics argue that the proposal could reduce funding for vital public services or force local governments to find other revenue sources.
• Legal Challenge to Watch: The measure is currently facing legal challenges in state court over its ballot language. Opponents contend the title and summary written by lawmakers are overly promotional rather than objective. While the court challenges don't contest the proposed tax cuts, an eventual ruling could potentially force revisions to how the measure appears on the November ballot.

Amendment 3 would need at least 60% voter approval to pass. If approved, it would represent one of the largest expansions of Florida’s homestead exemption.

Ways to lower a property tax bill

While voters in these and some other states decide on tax changes this November, homeowners across the country don't necessarily have to wait for election day to potentially lower their property tax bills.

Check whether your state, county or local government offers property tax exemptions, freezes or deferral programs for older homeowners.

Keep in mind that eligibility rules vary, and some programs require homeowners to apply each year.

It also could be worth reviewing your property assessment.

If your home’s assessed value appears too high compared with similar properties in your area, you may be able to appeal the assessment and potentially lower your taxable value.

For more information, see our report: How to Lower Your Property Tax.

Related

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• States With the Lowest Property Tax Rates
• New Bill Proposes $1 Million Capital Gains Tax Exclusion for Those 65 and Older
• College Towns Are Becoming Retirement Destinations: How Does the Tax Math Add Up for Retirees?

Google has updated its cloud storage policy for Android device backups. For existing users, the change will take effect 45 days after they receive Google's notification email. Android device backups will count toward the 15 GB of free storage included with every Google Account. The company is also rolling out more detailed backup controls for devices running Android 9 and newer.

For many users, the impact may be small because photos, videos and other media files already count toward the same 15 GB storage limit. However, adding device backups could push some accounts closer to — or over — that cap.

If your account exceeds the free storage limit, your Android device will stop automatically updating its backups until you free up space or upgrade your storage. Checking how much storage you currently use can help you avoid interruptions once the policy takes effect.

Who will notice the biggest impact?

Users who are already close to Google's 15 GB free storage limit are likely to notice the biggest impact. If their account exceeds the storage limit, automatic backups will be paused.

People with years of Gmail, Google Photos and Drive files might also exceed the Google Storage cap when their device backup data counts toward the limit.

People who use multiple Android devices, such as a phone and tablet, may also see their storage fill more quickly. Every device under the same account syncs to the same storage space, so adding in backup data for multiple devices might push the account past the storage limit.

How to check your available Google storage

Google has started emailing Android users with details about the policy change, including how much Google storage they've already used and an estimate of how much space their device backup may require. You can also check your storage usage at any time.

To see how much storage you have available, sign in to your Google One account. Your dashboard shows how much of your 15 GB of free storage you've used and breaks down what's consuming that space.

Gmail, Google Drive and Google Photos all count toward your storage limit. Reviewing the breakdown can help you identify opportunities to free up space before the new backup policy takes effect.

What happens if you run out of storage?

If the new backup policy pushes your account over the storage limit, some Google services may stop working until you free up space or upgrade your storage plan.

Your Android device's automatic backups may be paused, Gmail may stop receiving new emails, Google Drive uploads could fail and Google Photos may stop syncing new photos and videos.

Five ways to avoid paying for more storage

While you can pay to increase your Google storage, there are workarounds that can help keep your storage functioning without you having to pay:

• Delete unnecessary files from Google Drive: Large Google Drive files can quickly eat into your storage capacity. Go through your Google Drive account and delete any unnecessary files. Deleted files are stored in your Trash folder for 30 days, so be sure to go to the Trash folder and permanently delete the files to free up the storage.
• Remove large email attachments: Large Gmail attachments can take up extra storage. The Google One Storage Manager allows you to identify and delete the largest email attachments.
• Clean up Google Photos: Go through your Google Photos and delete any photos you no longer need. The deleted images will sit in your Trash folder, so be sure to delete them from the Trash folder to free up storage.
• Review what your phone backs up: Use the Google One app or your Android phone's backup settings to review what's backed up. If certain apps take up a lot of storage, you can toggle those apps off so they aren't backed up.
• Delete old device backups you no longer need: You can use the Google One app to delete old device backups that you no longer need to free up more space.

When paying for Google One makes sense

While there are several ways to free up storage and avoid paying for additional space, upgrading to a Google One plan may be worthwhile in some situations.

Google One offers four paid storage tiers ranging from 100 GB to 2 TB. Plans cost $1.99 to $9.99 per month, and you can save about 16% by paying annually instead of monthly.

A paid plan may make sense for households with multiple Android devices sharing the same Google Account or for people who rely heavily on Google Photos and regularly store large files in Google Drive.

It can also be worthwhile if you'd rather not constantly manage your files to stay under the free 15 GB storage limit. Some Google One plans include additional perks, such as access to the Gemini app and Google Flow AI, making an upgrade worthwhile for users who want those premium features.

Preparing for the Google Storage changes

Google has started emailing Android users about the upcoming storage policy change. Once you receive the email, you'll have 45 days before the new policy takes effect for your account, giving you time to review your storage usage, free up space if needed and prepare your device.

Taking the time to review your storage usage now can help ensure a smooth transition and uninterrupted use of your device once the storage policy change takes effect.

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I've used peer-to-peer services for years, and Cash App has become my go-to. Its combination of ease of use with expanded financial features exceeds what some traditional banks offer.

Therefore, it's no surprise that Kiplinger readers also think highly of the platform. Each year, Kiplinger holds its Readers' Choice Awards, an online survey conducted in the winter, to learn which services and products you recommend most. For peer-to-peer payment services, we asked readers to rank their favorites based on ease of use, most recommended and overall satisfaction.

With this in mind, I'll show you three reasons why Kiplinger readers ranked Cash App so highly. I'll also cover other peer-to-peer services earning high marks in our survey.

1. Cash App is simple to use

Many Kiplinger readers rated Cash App highly for its ease of use. Opening an account takes a few minutes, and you can link your bank using your debit card.

From here, moving money from your bank account to Cash App is instant, making it quicker to send payments and more beneficial for recipients, who don't have to wait days for funds to arrive. I regularly use it to send payments to stylists, lawn care companies and pet sitters and have never experienced problems.

Most importantly, it's free to send money using bank funds or a debit card. If you use a credit card, there's a 3% transaction fee, though some credit card companies can treat this as a cash advance, imposing fees and higher interest charges, so double-check with your bank before using this method.

Along with ease of use, Cash App also excels in this one category.

2. Cash App offers advanced security features

Sending money online is never a 100% comfortable process, yet Cash App does a lot to dispel any fears you might have. When you set up an account, you can activate two-factor authentication. How it works is that it texts or emails a code you confirm before accessing your account.

The platform also has other ways to safeguard your cash. You're required to set up a PIN code, fingerprint or face ID before sending money. This ensures that every time you send money, it comes from you, and not someone pretending to be you.

Cash App also watches your payments closely for any signs of errors. To demonstrate, if you try to send the same amount of money to the same recipient in a short time, it will ask if you meant to send it, helping you avoid any unintended duplicate payments.

3. Cash App offers other financial services

While many use Cash App for sending money, it has a wealth of other features you can use, such as:

• A high-yield savings account: Earn up to 3.25% APY when you spend $500 monthly with your Cash App card
• Investing: Buy stocks and ETFs from your favorite companies starting at $1
• Parental tools: Teach your kids and grandkids responsible cash use with custodial accounts for children six to 12, and parent-sponsored teen accounts from ages 13-17
• Tax filing services: Unlike many tax services, with Cash App, you can file your taxes for free no matter how complicated your tax situation is
• Accepts cash from other providers: If you have friends who need to send you money but don't have Cash App, you can use the Pool feature to receive money via Apple Pay or Google Pay

Along with Cash App, the other two top-rated peer-to-peer payment services were Zelle and Apple Cash. In both instances, Kiplinger readers remarked that the services had excellent customer service and delivered superior satisfaction.

Overall, Kiplinger readers chose Cash App as the top peer-to-peer payment service provider for its ease of use, security features and robust financial offerings.

Is it for everyone? No. If you're uncomfortable using digital services like Cash App, you can always pay via check or cash. Keep in mind that peer-to-peer services, such as Cash App, don't offer FDIC insurance, so I would only use them for payment services, not a standalone bank account.

However, if you send peer payments often, this is among the easiest and most secure ways to do so.

Here's how to get started with Cash App:

• Link your bank account using your debit card for instant transfers
• Enable two-factor authentication
• Set up a PIN to protect outgoing payments
• If you plan to use your credit card for payments, check with your bank to see if they charge cash advance fees
• Explore other financial features, such as savings, investing or even filing your taxes for less

Digital payment apps can simplify your day-to-day finances, but a financial professional can help ensure you're also making progress toward your long-term financial goals.

Use the Bankrate tool below to connect with a financial professional who can help you build a personalized financial strategy.

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The original Financial Independence, Retire Early (FIRE) movement paved a path to early retirement through aggressive saving and extreme frugality. Today, many people view FIRE as a way to gain financial independence and flexibility, rather than retiring as early as possible.

Many early FIRE advocates aimed to save 50% to 75% of their income, working toward a goal of accumulating about 25 times their annual expenses before retiring.

But in today's world of high housing prices, inflation and healthcare costs, the FIRE movement might feel impossible. While some individuals may have found financial independence through the FIRE movement, there's a shift in the movement and in how people approach financial independence.

Why the FIRE movement is changing

The FIRE movement was popularized in the 1990s, but today's economy is vastly different, and the conversation has shifted from early retirement to financial flexibility.

Take the housing market, for example. According to the National Association of REALTORS, the median existing-home sales price was $114,600 in 1995. By 2023, the median price had climbed to $389,800. Simply buying a home now requires more of your paycheck, making it much harder to save 75% of your income under a traditional FIRE strategy.

Inflation has created additional financial strain, and tariffs and geopolitical tensions have contributed to higher costs for some goods. Healthcare costs have also skyrocketed. According to the Peterson-KFF Health System Tracker, which uses Centers for Medicare and Medicaid Services data, in 1990, annual per-person health spending averaged $2,835 in 1990, or $5,864 when adjusted for inflation. By 2024, per-person annual spending averaged $15,474.

In short, Americans have less left in their paychecks after paying for essentials like housing, food and healthcare. In many cases, consumers are increasingly prioritizing financial stability rather than planning for an early retirement.

Coast FIRE vs. traditional FIRE

Several variations of the FIRE movement exist. The traditional FIRE strategy focuses on building a large portfolio that can fully fund your retirement early, requiring you to save aggressively and potentially change your lifestyle to reflect your early retirement goals.

The Coast FIRE strategy takes a more moderate approach to save enough money early, so your investment portfolio can compound and support your retirement. Once you've amassed enough savings, you might continue to work to cover your living expenses, but early retirement isn't usually the goal. Since you won't be withdrawing from your investment portfolio early, the Coast FIRE strategy may be a more conservative option because it doesn't rely on withdrawing from investments decades before traditional retirement.

If you choose to pursue the Barista FIRE strategy, you'll work to build your savings and ultimately quit your traditional job. From there, you'll combine part-time work with your savings. Many people pursuing Barista FIRE choose to reduce their expenses so part-time income is enough to cover their living costs. Given the availability of freelance and gig work, this strategy may be a solid option for some, but you'll need to consider the limitations and expenses of securing health insurance without full-time employment.

How much money do you need to make work optional?

The amount of money that you'll need to make work optional will depend on everything from your lifestyle to your location and age.

Many individuals use the rule of 25 to determine how much they’ll need in investments to be able to retire. A commonly cited guideline suggests accumulating investments equal to about 25 times your annual expenses. The guideline is based on the widely known 4% rule, which suggests a retiree may be able to withdraw about 4% of a diversified portfolio annually, though there's no guarantee it will work in every market or retirement scenario.

Following the rule of 25, if you make $100,000 a year, you would need approximately $2,500,000 in investments to make working optional. In that situation, the guideline would suggest an initial annual withdrawal of about $100,000.

Emergency savings and retirement assets play a role, too. It's advisable to have at least three to six months of your living expenses in emergency savings. Your retirement assets may play a role, too. In addition to building up 401(k)s and Roth IRAs, consider how other assets, like Health Savings Accounts and rental properties, might support you financially once you no longer work.

Identifying the right balance of assets and the ideal amount of money you need to retire can be tricky, so consider consulting with a financial advisor.

Use the Bankrate tool below to connect with a financial professional who can help you tailor a strategy to reach your retirement goals:

Why many people keep working after reaching financial independence

Becoming financially independent and having the option to retire may sound appealing, but many financially independent individuals choose to continue working.

That's because some individuals enjoy their careers and find their work fulfilling. Some want the social engagement that comes with a career, while others may prefer having the additional income that they're able to generate.

Even if you choose to continue working, having the option to retire on your own terms can be a reassuring milestone.

Is financial independence realistic for average earners?

While reaching financial independence may take longer for average earners, many people can make meaningful progress through consistent saving, investing and keeping expenses under control.

To achieve financial independence, you may need to start early on in your career, and you'll need to be willing to live modestly. Focus on making consistent contributions to your retirement accounts and accumulating emergency savings in a high-yield savings account where your money can earn maximum interest.

Taking steps to increase your income will also help. Look for promotions and overtime opportunities, and consider taking on a side hustle where you can put your skills to work to earn extra money.

Perhaps most importantly, make a budget and stick to it. Your budget may help you identify ways you can cut spending and save money. By consistently living below your means, you can put your money to work for you and lay the pathway toward financial independence.

Financial independence can mean more than retirement

Becoming financially independent doesn't necessarily mean you'll retire early. Instead, it gives you the freedom to decide if, when and how you want to work. Rather than focusing on reaching a specific retirement age, financial independence offers greater flexibility, security and peace of mind — benefits that can be just as motivating as the prospect of early retirement.

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Everywhere you look, there's a monthly plan. TV, movies and music. Software and cloud storage. Meal kits, pet supplies, workout apps, even car features.

Subscription culture has moved from a niche corner of entertainment into everyday life, and that shift changes how we spend and save. Rather than asking, "Should I buy this?" we're asking, "Does it fit into my monthly budget?"

It's not just one industry either. Streaming platforms changed how we watch TV. Software as a service (SaaS) flipped how we pay for business software. Health and fitness apps rely on recurring fees. Retail has boxes for everything: Razors, snacks, skincare — you name it.

So how can you stay in control of your spending when subscriptions seem to make life so easy?

Why the subscription economy is booming

At its core, the subscription economy trades ownership for ongoing access, and that trade shapes spending. You pay a recurring fee, and the service keeps flowing. Think of content updates, software features, product deliveries and perks layered on over time.

It's built on predictable revenue for companies and personalized experiences for users.

The subscription model has also reshaped business operations. Instead of making long-term hiring commitments for every administrative need, some companies now subscribe to virtual assistant services to handle recurring administrative work.

This reflects the same shift toward predictable, ongoing service models that has transformed software and other subscription-based industries.

The numbers show just how fast it's grown. Companies in Zuora's Subscription Economy Index have experienced an 11% faster revenue growth rate compared to the broader economy (represented by the S&P 500) over the past two years.

Why does it land so well with people? Because it lowers the friction around spending.

For example, people who take regular medication can use online subscriptions for convenient access to consultations and deliveries, which they can pay for through a predictable monthly plan.

That convenience is a big reason subscription services continue to grow across many industries.

Impact on personal spending habits

There's an art to spending money, and subscriptions are part of that. Here's how they affect your personal spending habits.

The upside to subscriptions is predictability. You can plan for costs that hit on the same day each month. The downside is spending invisibility: Those small charges add up faster than we expect. One or two are nothing. Ten or 12? They start to crowd out real goals.

Autopay makes this easier to miss. You don't feel the pain of paying, so you keep the service around "just in case." That's different from a one-time purchase that you feel and remember. Annualized thinking matters here. A $12 subscription is $144 a year. Maybe worth it, maybe not.

There's also the broader budget picture. Recurring costs nudge us to build spending "floors" that keep rising. Add a new platform here, tack on a premium feature there, and total costs can escalate.

C+R Research suggests the average American now spends $219 each month on subscriptions.

Subscription creep happens. That's the disconnect between what you think you're getting from a subscription and how much you actually use it.

Subscription culture across key sectors

Media and entertainment. Streaming changed everything. We moved from buying albums and DVDs to paying for libraries we can dip into anytime. Deloitte's Digital Media Trends research shows people are juggling multiple subscriptions and regularly reconsidering lineups as content moves around and prices shift.

Tech and software. In software, the one-time purchase is nearly extinct. Everything from the tools we work in to the apps on our phones now runs on a subscription. It guarantees updates and continuous service.

However, it also means customers are effectively renting the essentials they once bought and kept forever.

Retail and consumer goods. Subscription boxes promise convenience and delight. Think of razors that show up before you run out, or coffee that lands on your doorstep.

For some, it's a time-saver. For others, it drifts into overconsumption. The best services now let you pause or skip.

Financial services. Fintech has entered the fray. Robinhood Gold is one example of a paid tier that bundles research and a high-yield cash program. Budgeting tools like these can pay for themselves if they help you save more than they cost. But they can also become another unexamined line item.

Potential downsides and consumer awareness

When everything is a subscription, fatigue sets in. It's not just the money. It's the mental load of keeping track. Companies that design smooth sign-ups but maze-like cancellations make it worse. The FTC has flagged these "dark patterns" and is pushing for click-to-cancel options.

A few practical ways to keep control:

• Make a subscription list. Consider what it is and why you have it. Factor in the monthly and annual cost and the renewal date.
• Review your online subscriptions. Check your app store and card-on-file portals (retail sites where you've stored your credit or debit card details) for hidden or inactive subscriptions.
• Have calendar reminders. Set them seven to 10 days before annual renewals or a trial.
• Rate usage monthly. Use a simple scale (0–3). Anything at zero or one for two straight months gets paused or canceled.
• Bundle intentionally. If you're already deep into an ecosystem, a bundle like Apple One can cut net costs compared with paying piecemeal.
• Rotate streaming. Keep two "must-have" services and a shortlist of "rotate-in" options. Make sure to switch monthly.
• Annualize everything. If the yearly total makes you pause, that's useful friction.

The bottom line

Subscriptions aren't going away. For many of us, they make life easier, and they can be a smart way to spread out costs. However, the same features that make them convenient can blur our view of what we're actually spending.

That said, take an hour to list what you pay for and what you truly use. Keep the services that pull their weight, and pause those that don't. Ultimately, every subscription should earn its place in your budget, month after month.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

There's not much that can pry investors' attention away from the fireworks in the stock market this year — but a big jump in Treasury yields will do it.

A springtime swoon in the bond market pushed yields on 10-year Treasury notes to nearly 4.7% in mid-May before they settled back to 4.45% by the end of the month. (Prices and yields move in opposite directions.) That's up from 3.96% before the start of the war in Iran — a big move for bonds.

Yields on 30-year bonds reached nearly 5.2% in mid-May — a level not seen since the summer of 2007 — before closing out the month at 4.99%.

"We expect the bond market to remain sensitive to geopolitical events, Federal Reserve policy announcements and economic developments, especially around the trajectory of inflation," says Luis Alvarado, co-head of fixed-income strategy at Wells Fargo Investment Institute.

The bond vigilantes mount up

Bond traders have been reacting to inflation reports showing that price increases are not only persistent but also starting to bleed beyond energy to other parts of the economy.

The government's release of the April Producer Price Index, for example, which measures inflation at the wholesale level, came in far above expectations, logging the largest year-over-year increase since December 2022.

"Despite another upside inflation surprise, the report mainly confirms that higher energy prices are spreading directly and indirectly to broader prices," said analysts at BCA Research in a recent note. "Broadening inflation should continue in the near-term," they added.

April's Personal Consumption Expenditures Index, the Fed's preferred inflation gauge and the first inflation report of new Fed chair Kevin Warsh's tenure, showed prices continuing to accelerate.

When they sell off Treasuries on bad inflation news, so-called bond vigilantes are sending a clear message to the Fed and its new chair, says market strategist Ed Yardeni, of Yardeni Research (who coined the "vigilantes" moniker for disgruntled bond traders back in the 1980s).

"Bond vigilantes don't believe lower rates are the right course," he says. "They're taking charge here."

Indeed, the expectation of Fed easing this year has swung sharply and rapidly to a more hawkish view. At the start of May, more than 90% of traders expected the Fed's benchmark rate target to hold steady at 3.50% to 3.75% or be a quarter-point lower by year-end, according to CME Group's FedWatch tool. By May 31, nearly 44% of traders expected the federal funds rate to go higher — most thought by one-quarter of a percentage point, but a few by as much as three-quarters of a point.

How should investors prepare for higher bond yields?

Investors should brace for more yield volatility and stay agile, says WFII's Alvarado. A jump in 10-year yields well above the 4.75% level boosts the attractiveness of long-term maturities, he says; a drop below 4.25% favors shorter-term IOUs.

But focus more on clipping your coupons. "We think the income component of fixed-income should remain a key driver of total return for investors in 2026," Alvarado says.

So far, the stock market has remained largely impervious to the intermittent mayhem in bonds, though rate-induced pullbacks are possible.

"Higher rates do not derail bull markets when growth remains strong," says Ulrike Hoffmann-Burchardi, chief investment officer, Americas, at UBS Financial Services, "though there can be short-lived drawdowns when the market adjusts to a higher-rate environment before getting back on its uptrend."

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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This is a story about the largest lizard and the largest health care payer in the country. But mostly, it’s about the millions of Medicare beneficiaries who might receive coverage of GLP-1 drugs.

Americans have taken to these drugs fast. Eleven percent of U.S. adults now use a GLP-1 for weight loss, while 15% say they’ve used one at some point, according to Gallup.

Now Medicare has joined in. As of July 1, it covers weight-loss drugs for the first time in the program’s history. Eligible beneficiaries can get Wegovy, Zepbound or Foundayo for $50 a month through the Medicare GLP-1 Bridge.

Sounds great, right? Well, as with most things involving Medicare, it’s more complicated than the headline. There’s a catch. Or rather, catches.

Here’s what to understand before counting on cheap GLP-1 coverage in retirement.

Catch #1: The coverage has an expiration date

It helps to know where GLP-1s come from.

GLP-1 drugs trace back to a compound in the saliva of the Gila monster that mimics a human gut hormone signaling fullness. Researchers originally built it into a treatment for type 2 diabetes, not weight loss.

That distinction still governs everything. When Congress created Medicare Part D, it barred coverage of drugs used for weight loss, which were then considered unsafe, ineffective or both. The exclusion is still law today.

The wrinkle is that it applies to the use, not the molecule. Prescribe GLP-1s for type 2 diabetes, cardiovascular risk or sleep apnea and Part D covers them like any other drug. Prescribe the identical injection for obesity alone and Medicare is legally forbidden to pay.

So the Centers for Medicare & Medicaid Services, the federal agency that runs Medicare, built a workaround. The Bridge is a demonstration program that operates outside your Part D plan, through a separate CMS claims processor. It expires on December 31, 2027.

Catch #2: Long-term coverage remains in limbo

The Bridge was supposed to have a sequel. A longer-term program called the BALANCE Model would take over in 2027 and run through 2031.

BALANCE, however, needed insurers. Plans representing at least 80% of Part D enrollment had to volunteer by April 20, 2026. They didn't.

Therefore, CMS responded by extending the Bridge from six months to 18. That patched 2027 and did nothing for 2028. That leaves older adults trying to plan prescription costs around a program with no confirmed successor.

It’s why Jeff Judge, CFP® and managing partner of Chesapeake Financial Planners who works with Medicare-age clients, treats that date as fact rather than forecast.

“We build the plan assuming the Bridge ends on schedule, then treat any extension as a bonus, not something to count on,” he says.

Catch #3: You probably don’t qualify

An estimated 38.9% of U.S. adults 60 and older are living with obesity. Yet, very few will get this deal.

You’ll need a body mass index (BMI) of at least 27 paired with a qualifying condition such as prediabetes, a history of heart attack or stroke or peripheral artery disease. At a BMI of 30 or higher, heart failure, uncontrolled hypertension, chronic kidney disease or severe sleep apnea can open the door.

KFF estimates 3.8 million beneficiaries qualify, out of more than 69 million people on Medicare. That’s roughly one in 18.

Your doctor also has to clear prior authorization through the central CMS processor, not your own Part D plan.

Dorothea Vafiadis, the National Council on Aging’s Senior Strategist for Healthy Aging, expects people to get stuck well before that.

"Medicare beneficiaries aren’t routinely monitoring CMS demonstration programs, and many won’t know if this benefit exists unless they hear about it from a trusted source," she observes.

Catch #4: The $50 hides a few things

Without insurance, these drugs run roughly $900 to $1,400 a month, so $50 looks like a rounding error. Two design quirks, however, could make it cost more than it appears.

First, the $50 doesn’t count toward anything. Because the Bridge sits outside Part D, that copay never touches your deductible or your annual out-of-pocket cap, which is $2,100 in 2026.

"Clients assume hitting the cap means their drug costs are done for the year," Judge says. "This one keeps billing regardless."

Second, Extra Help doesn't apply. Beneficiaries in the Low-Income Subsidy program, who typically pay little or nothing for medications, owe the full $50.

"For many older adults living on fixed incomes, an additional $50 per month, or $600 annually, is a substantial financial burden that may put treatment out of reach," Vafiadis says.

A third cost catches people who aren’t in Part D at all. Roughly 14 million people eligible for Part D aren’t enrolled, Vafiadis notes, and the Bridge requires a drug plan. For them, she says, the true cost extends well beyond the $50 copay, adding monthly premiums and possibly late enrollment penalties.

Catch #5: Getting on it is easier than staying on it

Say you qualify and the drug works. Three things can still take it away.

Your plan can change, as any successor to BALANCE would likely be voluntary. So keeping your medication could require switching Part D plans.

"Switching Part D plans to chase GLP-1 access can quietly wreck coverage on someone’s other five prescriptions," Judge says. "A plan that covers the GLP-1 beautifully might reformulate their blood pressure medication into a higher tier."

You may also stop on your own. Between 50% and 65% of patients quit within the first year, usually over cost, side effects or coverage barriers. A 2026 meta-analysis in eClinicalMedicine found patients regain about 60% of lost weight within a year of stopping.

Perhaps most importantly, your doctor may hesitate. Only about one in 10 participants in the trials that made these drugs famous was 65 or older, which means information about benefits and side effects in the 60-and-older population is limited. Consider that muscle loss is a known side effect. In an older adult, that’s a fall risk rather than a cosmetic issue.

Steps you can take now to secure GLP-1

Older adults mostly aren’t chasing the cultural version of these drugs. KFF polling found that among adults 65 and older, 8% had taken a GLP-1 for a chronic condition while 1% took one for weight loss. For most, this is disease management, which makes it worth handling carefully.

Ask about a covered diagnosis first. If you have type 2 diabetes, sleep apnea, MASH or qualifying cardiovascular risk, that route runs through your regular Part D plan, counts toward your cap and isn’t scheduled to disappear at the end of 2027.

"For a client who qualifies both ways, I generally point them toward the covered-diagnosis route for the long-term stability, even if the near-term cost looks less predictable," Judge says.

Budget the $50 separately. That's about $900 over the program, and neither your out-of-pocket cap nor Extra Help will soften it.

Document your conditions now. Prior authorization requires it, and the paperwork could move slowly.

Bring your whole drug list to open enrollment, October 15 through December 7. Not just the GLP-1.

Ask your prescriber about 2028 before you start. What happens if coverage lapses? Have that conversation in year one.

Price your fallbacks. Manufacturer direct-to-consumer programs, TrumpRx and pharmacy discount pricing all exist.

Because of the growing popularity of these drugs, Congress or CMS may yet build something permanent. But that’s still to be determined.

The Gila monster gets through the desert by hunkering down and waiting out conditions. We don’t have that luxury. Better to start planning now, while the program is still in front of you, so you’re not left in a desert of information when the coverage runs dry.

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One of the most enjoyable aspects of retirement for married couples is finally having more time to spend together and the financial freedom to maximize those years.

That's possible because during their working years and into retirement, they've had a unified financial structure that's worked well — filing taxes jointly and budgeting based on their combined income.

But eventually, they must plan for the time when one of them is alone and make sure the survivor will be as financially protected as possible. Most married couples do not plan for that clearly enough.

When a spouse dies, the surviving spouse may still need much of the same income for the usual expenses — the house, property taxes, utilities, insurance, medical costs, family support and lifestyle.

But their tax structure changes, and they may be subject to the "widow's penalty" when their tax filing status changes from married filing jointly to single. Suddenly, tax brackets compress, the standard deduction changes and income that once fit comfortably inside a married tax structure may become more heavily taxed.

Picture a surviving spouse sitting at the kitchen table, looking at the same accounts, needing the same dignity but having less tax room to work with. No one wants to think about that. This is where many retirement plans fail emotionally, not just mathematically. They may protect the portfolio, but they do not protect the person who is left behind.

A new tax world for a surviving spouse — and its cascading effects

I remember when this issue first became real to me. It was years ago, when a longtime client — widowed a little more than a year — came into my office with her tax return and asked a question that seemed simple: "Why did my tax bill go up after my husband died?"

Her household income had gone down. Her husband's Social Security check was gone. Certain expenses had changed. Emotionally, she was still trying to adjust to life alone.

But financially, something did not add up. She had less income than before, yet her tax situation felt worse.

That is the widow's penalty. And once you understand it, you begin seeing it everywhere.

After one spouse dies, the surviving spouse often moves into a very different tax world. The tax code treats married couples filing jointly more generously than single filers.

• The brackets are wider
• The standard deduction is larger
• Medicare income thresholds are higher
• Long-term capital gains thresholds can be more favorable
• The net investment income tax (NIIT) threshold is also higher

For the 2026 tax year, a married couple filing jointly does not enter the 24% marginal income tax bracket until their taxable income exceeds $211,401 (the ceiling for that bracket is $403,550). But the single threshold is roughly half the joint threshold. A single filer for 2026 reaches the 24% bracket once taxable income exceeds $105,700 (up to $201,775).

The standard deduction compresses, too. For 2026, the standard deduction is $32,200 for married couples filing jointly and $16,100 for single filers. The surviving spouse may still have the same expenses and lifestyle needs they did when their spouse was alive, but has less tax room to absorb the income that funds them.

A surviving spouse may lose one Social Security check but typically keeps the larger of the two benefits. Pensions with survivor elections may continue. Required minimum distributions may continue. Portfolio income may continue. Rental income, annuity income and investment distributions may continue.

The survivor may end up retaining 70%, 80% or even 90% of the household income but lose the joint tax structure entirely.

For example, a couple with $140,000 of taxable retirement income may sit comfortably in the 22% bracket, but a surviving spouse with $115,000 of taxable income — less income than the couple had together — can suddenly be pushed into the 24% bracket. Over 15 or 20 years, the lifetime cost can become substantial.

Medicare adds another layer. For 2026, Medicare Part B IRMAA surcharges begin when modified adjusted gross income exceeds $109,000 for an individual, versus $218,000 for a married couple filing jointly. The premium is simply higher because income now lands on the single-filer scale.

That is where many widows and widowers get blindsided. They expected grief, paperwork and adjustment. They did not expect the tax code and Medicare rules to make retirement feel financially tighter at the exact moment life became harder.

How to use a Roth conversion efficiently

If you are already widowed and reading this, the situation is not hopeless. Meaningful planning may still be available. Roth conversions during widowhood can still make sense in some cases, even inside single tax brackets, if the alternative is allowing a large traditional IRA to compound into larger future RMDs.

Qualified charitable distributions (QCDs) can become powerful after age 70½. Asset-location changes, tax-efficient withdrawal sequencing and Medicare-income management can still reduce future drag.

But if you are still married, the best planning window may be before widowhood.

For many couples, the richest tax-planning window occurs after retirement but before RMDs begin. That may be five to 10 years, or sometimes less.

The core strategy often involves multiyear Roth conversion planning while both spouses are alive and still filing jointly. The goal is not to convert blindly but to use available joint brackets intentionally, reduce future tax-deferred concentration and give the surviving spouse more tax-free flexibility later.

The math requires discipline. Each year, evaluate how much traditional IRA money can be converted without creating unnecessary tax damage. You pay tax at known joint rates today to potentially reduce larger future taxable distributions later.

Repeat the analysis annually and stop when the math no longer supports it. Document the plan clearly so the surviving spouse is not left guessing.

The long-term care effect

Long-term care can destroy the planning runway.

Consider this scenario. One spouse becomes ill. The healthy spouse becomes the caregiver. Assets may be spent faster than expected. IRA withdrawals may increase. Roth conversion planning gets delayed. Tax planning gets pushed aside because the family is dealing with doctors, facilities, medications, stress and exhaustion.

Then, after months or years of care, the healthy spouse becomes the surviving spouse and may inherit a weaker financial structure with fewer clean choices.

Wade Pfau, author of the Retirement Planning Guidebook and a professor at The American College of Financial Services, has described long-term care as one of retirement's most unpredictable risks.

The cost data explains why. CareScout's 2025 Cost of Care Survey reported national median annual costs of $74,400 for assisted living, in excess of $114,000 for a semi-private nursing home room and more than $129,000 for a private nursing home room.

Those are not just care costs; they are tax-planning costs. If the money comes from an IRA, the withdrawal may create taxable income. If that income pushes the household across Medicare thresholds, the cost can compound.

If the healthier spouse is left with fewer assets and less flexibility afterward, the widow's penalty becomes more painful.

IRAs and 401(k)s: A structural blind spot in retirement planning

IRA guru Ed Slott, founder of IRAHelp.com, has spent years warning that tax-deferred retirement money is not tax-free money. That warning becomes especially relevant here. The surviving spouse may inherit the same IRA or 401(k) balance, but under compressed single-filer brackets.

The mistake is not having an IRA or 401(k). The mistake is assuming they behave the same way after the first spouse is gone. They do not.

If you are wondering why this may not already be in your plan, the answer is not necessarily that anyone has been negligent. For three primary reasons, the widow's penalty sits in a structural blind spot across much of retirement planning.

• Many plans focus heavily on the retirement date, not the surviving-spouse phase.
• Most people do not enjoy a planning conversation that says, "Pay taxes voluntarily today to potentially reduce a larger tax problem later." Not having the conversion often feels better in April. It may feel much worse 10 years later.
• Many reviews are organized around investments, not the household tax structure after the first death.

Understand the potential stakes. The table below is only a simplified illustration. It assumes the surviving spouse retains a high percentage of joint retirement income, which can happen when income is driven by pensions, RMDs and portfolio distributions rather than mostly by Social Security.

These estimates may include federal income tax and Medicare surcharge effects. They do not include state income taxes, the net investment income tax or other household-specific factors. The point is not that every household will match the table but that the annual cost can become a six-figure lifetime issue if it persists for 10, 15 or 20 years.

A surviving-spouse tax map

Married couples with meaningful IRA balances, pensions, taxable investment income, deferred compensation or future RMD exposure should not guess. The next practical step is specific: Ask for a surviving-spouse tax map.

That map should show, in dollars, what happens to income, taxes, Medicare premiums, IRA withdrawals and cash flow after the first spouse dies.

A useful version of that analysis can often start with last year's joint 1040. Run the same income through the single-filer tax structure, compare the result and then project the difference over 10 to 20 years with RMDs, Medicare thresholds and Roth conversion options included.

If the exposure is small, you should know that. If it is large, you should know that, too, while both spouses are still here, while both can still make decisions together and while the cleanest planning years may still be available.

The window closes a little further with every tax year that passes. You should at least know what is inside it.

Dan Dunkin contributed to this article.

The appearances in Kiplinger were obtained through a PR program. The columnist received assistance from a public relations firm in preparing this piece for submission to Kiplinger.com. Kiplinger was not compensated in any way.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

The debate about whether Americans should be allowed to hold private-market assets in their retirement accounts has, once again, produced more heat than light.

Critics of recent proposals to open 401(k)s to alternatives such as private equity, private credit and real estate warn of systemic risk and suggest that ordinary savers can't be trusted with anything more complex than an index fund. They're solving the wrong problem.

The question has never been whether Americans should have access to alternatives in their retirement accounts. Under existing tax law, they already can. Self-directed IRAs and Solo 401(k)s have permitted investments in real estate, private equity, private credit, precious metals and digital assets for decades. The infrastructure exists.

What Congress has done

The legal framework was settled in 1974. When Congress created IRAs and 401(k) plans under ERISA, it deliberately chose to allow retirement accounts to be invested in both traditional and alternative assets.

That was not an oversight. Congress could have easily restricted retirement vehicles to conventional holdings, as it later did with 529 education savings plans. It chose not to.

Pension plans, endowments and individual retirement investors were meant to have the ability to diversify across asset classes. That original intent has never changed.

The real question is whether we extend that access responsibly to everyone or continue reserving it for those wealthy enough to know it exists.

That's the two-tiered system critics should be concerned about. Today, institutions and high-net-worth investors allocate heavily to private markets, capturing illiquidity premiums, diversification and long-term return profiles that public markets increasingly can't offer.

Who gets to access what

For years, Yale's endowment, the model every sophisticated allocator studies, has invested more than 60% of its portfolio in alternatives.

Meanwhile, ordinary retirement savers get a menu of mutual funds and target-date vehicles, most anchored to the same handful of large-cap tech stocks. The diversified portfolio is already available. The question is who gets to access it.

This concentration risk is not theoretical. American retirement investors exclusively in traditional assets are, in practice, not well diversified. Their life savings are heavily exposed to a narrow set of equities, and that concentration is far riskier than a portfolio that includes a measured allocation to alternatives.

The argument that alternatives introduce undue risk ignores the risk already embedded in a retirement account that rises and falls with a handful of stocks.

In 2022, the market made this imbalance impossible to ignore. Stocks and bonds declined simultaneously, exposing the structural vulnerability at the heart of the traditional 60/40 portfolio.

In a high-inflation, rising-rate environment, fixed income lost its cushion precisely when investors needed it most. Alternatives, real estate, private credit and hard assets held value. The investors who owned them were protected. Everyone else absorbed the full impact.

This doesn't imply that a free-for-all is the way. Structured access allows us all the best path forward.

Access with guardrails

Everyday retirement savers should have access to professionally managed, fiduciary-governed exposure to private markets, with clear guardrails around fees, liquidity, custody, investor education and suitability.

The concern that unsophisticated investors will be handed illiquid, higher-fee private equity funds with no understanding of what they own is legitimate. The answer to that concern is smarter regulatory frameworks, not a blanket prohibition.

It's also worth noting that retirement accounts might be among the most appropriate vehicles for alternative investments. Retirement funds and 401(k) plans are generally locked up for years or decades. That illiquidity is a feature, not a flaw.

Many alternative assets — private equity, real estate, hedge funds — share that same long time horizon.

Investors who hold illiquid alternatives in retirement accounts are positioned to capture the illiquidity premium and patience premium these assets typically generate, the higher returns that compensate long-term holders for forgoing liquidity.

A natural alignment

The structure of a retirement account and the structure of a private market investment are, in many respects, naturally aligned.

The accredited investor rules that already exist provide meaningful guardrails for investors seeking exposure to alternatives outside retirement accounts. Those rules serve an important function, and there is a strong case for the SEC to expand the definition of accredited investor to allow more Americans access to private markets and better diversification.

But those guardrails aren't an argument for keeping alternatives out of retirement accounts entirely. They're evidence that thoughtful, structured access is achievable. That same spirit of structured access can and should extend to the broader retirement market.

Complex rules with thoughtful integration

Building successful self-directed platforms requires thoughtfully integrating complex tax and ERISA rules into systems and processes that investors, advisers and planners can use confidently and effectively in the long term.

Compliance isn't an obstacle to access. It's what makes access durable. Prohibited transaction rules, disqualified person restrictions, custody requirements, reporting obligations — these aren't bureaucratic annoyances.

They're the guardrails that keep the system honest. The right policy goal is to extend those guardrails to the broader 401(k) market, not to wall off private markets entirely and call it protection.

The Department of Labor's recent proposal to provide plan fiduciaries a clearer safe harbor for adding certain alternative assets to 401(k) lineups is a meaningful step in this direction.

Plan sponsors have long avoided alternatives not because they're inherently inappropriate but because the legal exposure of offering them was unclear

A safe harbor built around diversification, fee transparency and liquidity requirements doesn't invite abuse. It eliminates ambiguity and legal uncertainty. That's how you expand access without abandoning responsibility.

Protection vs preservation

Critics who argue alternatives don't belong in retirement accounts are, in practice, arguing they should remain exclusive to those wealthy enough to access them elsewhere.

That's not a protection argument. It's a preservation argument, preserving a system in which the sophisticated investor has options, and the ordinary saver does not.

Americans deserve a retirement system built for the economy they actually live in, not the one that financial institutions find easiest to administer.

That means access to a broader opportunity set, delivered through structures that protect investors rather than simply exclude them. It means fiduciary oversight without fiduciary paralysis, and better rails rather than narrower choices.

The debate is not about whether to protect retirement savers. Everyone agrees they should be protected.

The debate is about whether protection requires keeping them permanently locked out of the same assets that have built generational wealth for institutions and individuals who already have enough. It does not.

The work is building the infrastructure that makes broader access safe. With that work well underway, it's time that policy catches up.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Stocks were choppy early on Tuesday, but falling oil prices and a round of well-received corporate earnings helped the Dow Jones Industrial Average and S&P 500 climb higher into the close. The Nasdaq Composite, however, couldn't sidestep an extended slump in chip stocks.

At the close, the tech-heavy Nasdaq Composite was 0.2% lower at 24,876, pressured by weakness in semiconductor stocks. The iShares Semiconductor ETF (SOXX), which counts Advanced Micro Devices (AMD, -8.2%) and Micron Technology (MU, -8.9%) among its biggest holdings, fell 4.8% and is now down 23% for the month to date.

The continued sell-off is being "driven by concerns about capital return prospects, valuations, circular financing dynamics and Chinese competition," says José Torres, senior economist at Interactive Brokers.

But the broader S&P 500 (+0.2% at 7,428) and the Dow Jones Industrial Average (+1.0% to 52,747) advanced thanks in part to falling oil prices. Front-month West Texas Intermediate crude futures fell 4% to settle at $79.26 per barrel.

Strong earnings for several blue chip stocks also helped buoy the benchmarks. Coca-Cola (KO), for one, jumped 5.0% after the soft drink maker beat second-quarter estimates and raised its full-year guidance.

The company credited the FIFA World Cup as one catalyst behind its strong results, seeing Trademark Coca-Cola volume growth of 5% in Q2, its best volume growth since the COVID-19 pandemic.

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Boeing (BA) was another post-earnings winner, rising 4.8% as the aerospace giant's Q2 revenue came in higher than expected, which offset a wider-than-anticipated per-share loss.

Sherwin-Williams has its best day since 2022 after earnings

Sherwin-Williams (SHW) emerged as the best Dow Jones stock today, surging 8.3% — its best day since April 26, 2022 — after the paint maker reported stronger-than-anticipated second-quarter results.

"Sales improvement was driven by continued growth investments, new account wins and increased share of wallet," said Sherwin-Williams CEO Heidi Petz. "We also implemented pricing actions to offset raw material inflation that pressured our gross margin in the quarter."

In mid-June, Argus Research analyst Alexandra Yates said SHW is "uniquely positioned to benefit from significantly higher demand trends and margin expansion in the long term, this due to its dominant market position." Yates added that she views the materials stock as a "core long-term holding."

Corning suffers its biggest one-day drop in six years

Not all earnings reports were well received. Corning (GLW) plunged 12.1%, its biggest one-day drop since March 16, 2020, after the Gorilla Glass maker's disappointing third-quarter revenue forecast overshadowed a second-quarter beat.

Susquehanna analyst Mehdi Hosseini says the softer-than-expected revenue guidance is due primarily to "weakness outside Optical Communications, particularly within the Solar segment."

And he maintained a Positive (Buy) rating on the tech stock, saying it "remains well positioned to benefit from growing AI cluster sizes and increasing and width requirements, while also enabling alternative manufacturing approaches for fiber array units (FAUs), which we believe are among the most critical components in the commercialization of optical CPO (transceiver) architectures."

These transceiver architectures have a variety of use cases, including in data centers, AI chip connections and high-performance computing.

Buckle up

There are plenty more events this week that could spark market volatility. On the economic front, Wall Street is waiting for tomorrow afternoon's policy announcement from the Federal Reserve.

While it's unlikely the central bank will raise the federal funds rate this time around, rate hike odds have been rising. According to CME Group FedWatch, futures traders are now pricing in a 32% chance the Fed will increase rates tomorrow, up from 26% one week ago.

We're reporting live on the July Fed meeting. Follow along with Kiplinger for all the news and updates.

And on the earnings calendar, Wednesday's after-the-close announcements from Meta Platforms (META, -0.08%) and Microsoft (MSFT, +1.1%) will likely draw a crowd. Apple (AAPL, +0.9%) and Amazon (AMZN, -0.2%) will report on Thursday.

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What direction is the stock market headed next? Nobody, of course, has a crystal ball. And the market can't converse with you like ChatGPT can, so it can't warn you of trouble ahead or confirm that a bull market is alive and well. There are tools, however, that can help you read the tea leaves and better gauge the market's next move.

Fundamental stock market indicators such as corporate earnings growth and price-to-earnings (P/E) ratios, and economic data such as gross domestic product (GDP), interest rates and inflation, tell only part of the story.

A more complete picture of the market's health includes analyzing visual clues found in Wall Street charts that focus on price action, for example, or market breadth (a measure of how many stocks are participating in a rally or sell-off). The research strategy is known as technical analysis.

This type of evaluation provides key market intelligence. Technical analysis tells you whether a broad index such as the S&P 500 is in a sustainable uptrend or in a downtrend. It shows whether a stock's price momentum is strengthening or fading. And it reveals potential directional pivots.

"Technical analysis is a framework for identifying what the current market trend is and the likelihood of it continuing," says Adam Turnquist, chief technical strategist at LPL Financial.

Technical analysis provides an alert system for investors

Technical analysis is something akin to an early alert system. Analyzing charts and price patterns can tip you off when leading stocks, sectors (such as white-hot semiconductors) or benchmark indexes are rolling over or breaking out to new highs.

That's particularly important when the stock market is near all-time highs, as it is now, or trading at depressed lows after big downturns, such as the April 2025 swoon following the rollout of President Donald Trump's "Liberation Day" tariff plan.

Technical analysis won't supplant market research based on the fundamentals. Think of it as another tool in your investment toolbox. Arming yourself with this type of market surveillance can help you better understand what's going on underneath the surface of the market and better inform you about its underlying strength.

And you don't need to add an arsenal of indicators to your market routine, either. Asked what his favorite indicators are, Mark Arbeter, a technical analyst and president of Arbeter Investments, says: "Number one, two and three is price action."

Pundits and market noise aside, all known information about the market is reflected in its price movements, say technical analysis adherents. What Arbeter likes to see in charts is higher highs and higher lows with strong trading volume on up days, as that suggests most market players, including big institutional investors, are buying. A bearish sign is when the market is going down and volume is through the roof.

Below, we share some of Wall Street's favorite technical indicators and what they're telling us now about the stock market's prospects. (All data is through May 31.) Although there are a slew of indicators that professional chart readers use, many are wonky, proprietary and hard to replicate. So we'll focus on key indicators that are easy to grasp and track at home.

1. Spot the trend

Trend following is a key aspect of technical analysis. Long-term trendlines — such as the 200-day simple moving average, which tracks the average price of an asset over the previous 200 trading days — are the most useful to follow. Why? They smooth out volatility and provide a key piece of information: whether the trend of an index, sector, fund or stock is up or down.

"The longer the trend line, the more important it is," says Mark Newton, global head of technical strategy at Fundstrat, a Wall Street research firm — and "the more effective it is in keeping investors on the right side of the trend," he adds.

To get a reading on the broad market's health, pull up a three-year chart of the S&P 500 on your online broker's website or a financial site such as wallstreetnumbers.com. Then overlay the 200-day moving average on the chart. If the S&P 500's price is above its 200-day moving average and the line on the chart is upward sloping, it means the market has upward momentum and is in a long-term uptrend. A classic bullish setup is when both the index and the moving average are rising in tandem.

In contrast, a downward-sloping chart with the S&P 500 trading below its 200-day moving average indicates that the broad market is in a downtrend. When stocks lose their mojo, it's not time to bargain hunt because the trend is no longer your friend. "You generally want to avoid stocks in a downtrend," says Adair Rufty, technical analyst at Strategas Research Partners.

What are the charts telling us now? As of May 31, the S&P 500's closing price of 7,580 is above its 200-day moving average of 6,831. So for now, despite daily volatility due to Iran war news and oil and interest rate spikes, the S&P 500 remains in an uptrend.

If there's a negative, it's that the number of stocks in the S&P 500 trading higher than their 200-day moving average is moving lower, says Arbeter. As of the end of May, just 55% were above their average price over the past 200 days, down from a 2026 peak of 69% before the U.S. attack on Iran in late February, according to financial data site Barchart.

Arbeter prefers to see 70% to 80% of S&P 500 stocks trading above their 200-day moving average in up markets. "There are technical cracks," he says. "Overall breadth is not great, and it's not indicative of historical periods when the market just keeps going higher."

You can gain more clarity on the market's technical strength by layering in a shorter-term moving average — such as the 50-day moving average, which is a barometer of near-term momentum.

If the asset or index you are tracking, such as the S&P 500, is trading above both its 200-day and its 50-day moving average, that suggests the market's short- and long-term momentum are both flashing the same positive signal. Good news: Currently, the S&P 500 is above both its 50-day and its 200-day moving average.

One goal of chart-watching is to be on the lookout for divergences, which occur when the price of an asset moves in the opposite direction of a technical indicator. A sign of early trouble, for instance, is when the S&P 500 is hitting new highs but its average price over the past 50 or 200 days begins to weaken, with moving-average lines beginning to slope downward.

A classic technical warning signal is when the S&P 500's 50-day moving average crosses below its 200-day moving average. This divergence is called a death cross. It tells you that the short-term trend has turned bearish, signaling a likely market downturn. As of May 31, the 50-day moving average was 7,058, well above the 200-day's 6,831.

But be on the lookout for signs that the 50-day moving average is in danger of undercutting the 200-day average. "At that point, your antenna should flare up a bit," says Rufty. "Something's changing. It's a point where you should start thinking, Could a topping sequence be happening?"

2. Measure momentum

Simply put, momentum tells you what's working in the stock market and what's not. The 14-Day RSI is a popular technical indicator that tracks pure momentum, flagging stocks that are either soaring or sagging and helping to determine whether they're flashing "buy" or "sell" signals.

The acronym stands for Relative Strength Index. The RSI determines whether an investment is overbought or oversold by measuring the speed and magnitude of price movements.

Here's how it works: The index tracks the momentum of a stock or index according to a formula that includes average gains and losses, usually over the past 14 days. The calculations are plotted as a line graph on a scale from 0 to 100. The higher the number, the stronger the momentum. A reading above 50 suggests an asset has positive momentum, while a reading below 50 indicates downward momentum.

Typically, Wall Street traders use these readings as contrarian signals. The more extreme the reading, the more apt they are to trade on it. In general, RSI levels of 70 and above indicate an overbought condition, suggesting the stock or index has gotten ahead of itself, which could serve as a potential sell signal. Low RSI levels (below 30) indicate an oversold condition, which might indicate a potential entry point to buy a beaten-down asset. A May 31 RSI reading of 74 indicates an overbought market.

From a trading perspective, however, RSI works best when viewed in the context of the market's broader trend. Technical analysts typically give larger weight to longer-term trendlines, such as the 200-day and 50-day moving averages. If a stock, for example, is flashing an overbought RSI reading but the broad market is in an uptrend, as now, that's less concerning than if a stock is overbought and the market is in a downtrend.

On the flip side, if the market is reaching higher highs but the RSI momentum indicator is starting to decline from its peak, that's a bearish divergence, according to Turnquist.

3. Beware of bad breadth

You can get even more insight into the market's health by looking at measures that tell you how broad the underlying strength or weakness of the market is. "Market breadth is really important," says Newton. "Are all sectors going up in unison, or are you starting to see bifurcation?"

Lists of stocks that are hitting new highs and those hitting new lows are a good place to start. If the number of stocks reaching new highs is rising as the market marches higher, that's a good sign, as it tells you there's broad participation in the rally. But if the market is still going up and even hitting new highs but the number of stocks sinking to new lows is rising, that could be hinting at weakness under the surface.

This price data is particularly helpful during market turning points. "It's useful in gauging how flushed a sell-off is or how potent a rebound is," says Rufty. You can get daily new highs and lows from market-data-focused sites, such as The Wall Street Journal.

If you're looking for new highs and new lows over longer periods, such as one month, six months or 52 weeks, you can find that data at Barchart. (A related measure of market breadth is the advance-decline line, which tracks the difference between the number of stocks on, say, the New York Stock Exchange that are advancing each day and those that are declining.)

Craig Johnson, chief market technician for investment firm Piper Sandler, tracks 26-week highs and lows (or six-month readings). He looks at all U.S. stocks, including all 416 industry groups. Currently, he doesn't like what he's seeing.

"The market is hitting all-time highs, and I've got very few groups participating," says Johnson. Less than half (49%) of the stocks were at six-month highs in mid-May. And only 26, or 6%, of the industry groups Johnson tracks were hitting 26-week highs.

Most of the groups hitting new highs were tech-related, meaning the market's gains are concentrated in a single sector. Johnson says he's watching new lows closely. By his count, 21, or 5%, of the industry groups were at new lows, with the bulk of those in consumer-related areas. "When I start seeing an expansion in the number of groups that are making new lows, that is worrisome," he says.

4. Find floors and ceilings

It's also important to monitor how the market is trading around market "support" or "resistance" levels.

Support is a level akin to a floor. "That's where buyers have consistently stepped in to buy a stock or the S&P 500 in the past," says Turnquist. A resistance level acts like a price ceiling; it's where buying has dried up in the past.

You'll often find such floors and ceilings around big, round numbers on a market index. For example, it often takes a few attempts before a broad index can break through a resistance level — the S&P 500 flirted with 7,000 as far back as October 2025 before finally topping that milestone for the first time in April 2026. A breakout above a resistance level is a healthy sign.

Conversely, in the wake of the S&P 500 hitting 7,500 for the first time in mid-May, market technicians are watching for signs that the broad market is beginning to weaken. The first key support area to watch is the 7,150 level on the S&P 500, according to Arbeter. But he says he'd be more worried if the index breaks below the range of 6,800 (around its 200-day moving average) to 7,000 (the most recent breakout zone for stocks). "That would be a major concern," says Arbeter.

As you eye those benchmark levels, consider pulling up some stock charts to read Wall Street's tea leaves. With the help of technical analysis, Fundstrat's Newton says, "you oftentimes can find very important turning points."

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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Jean Chatzky is the CEO of HerMoney.com and host of the podcast HerMoney With Jean Chatzky. Here, she speaks with Kiplinger about her new book, The Forever Paycheck, and what retirees struggle with in the transition to spending.

Kiplinger: You've referred to your new book, The Forever Paycheck, as the most important work you've done in your 40-year career. Why is this book such a passion project for you?

Chatzky: The book is about how to spend down your savings once you retire — or decumulate, as experts call it — and it is not something you can afford to get wrong. If you overdo withdrawals, you'll run short of resources late in life. If you underdo them, you're essentially underliving — not getting the most out of this phase of your life that you saved so long for. I think that's incredibly sad. For me, this issue feels both urgent and important.

Why do many re­tirees struggle with the transition from saving to spending?

It's emotionally really hard, because spending from savings feels like a loss. When you put so much time into accumulating something, it feels precious. You want to hold on tight.

Tactically, we've also had a lot of help accumulating, with automatic enrollment and escalation in retirement-savings plans and target-date funds. It has become super easy to do the right thing without doing anything. Those automatic hacks don't exist yet for managing withdrawals from savings.

You think the solution lies in creating what you call a forever paycheck. How can this help retirees?

A forever paycheck is a stream of income that will last for the rest of your life, and that enables you to live comfortably without the fear you'll run out of money. The income stream ideally should be enough to cover your needs and some of your wants — the ones you really don't want to give an inch on.

It is not a solution for all of your money. Everybody still needs to have some money invested in the market to grow. But researchers have found that having a regular income stream enables you to feel much more comfortable about spending.

How do you fund a forever paycheck?

If you can afford to, waiting as long as possible to claim Social Security so you maximize benefits is typically the right move for most people. That's the base of almost everyone's forever paycheck, plus any pensions you may get.

Then look at your expenses, those necessities and wants, to figure out how much money you'll need on an ongoing basis. Deduct the income you'll get from Social Security and pensions, and what is left is your gap. You can fill that gap with guaranteed income from annuities or withdrawals from your investments.

Personally, I'm going the guaranteed route. About a third of my retirement income will come from Social Security, another third from the rest of my forever paycheck, and a third from money invested in the market for growth.

How can retirees prevent an unpredictable event such as inflation or a big drop in stock prices from derailing their plans?

The whole point of building a forever paycheck is so these events will not derail you. If you've got a paycheck that covers your needs and key wants, and the market takes a tumble, you don't have to sell. You can give the market time to come back. And maximizing Social Security is your best friend when it comes to fighting inflation because it has a cost-of-living increase that's recalculated each year.

What else do retirees get wrong when it comes to spending?

Besides underspending and not living as well as they could be because of fear, many retirees think that spending across retirement will be consistent. It's not. People spend more in the early years, when they take their bucket-list trips and do home-improvement projects. Once we get into our mid-seventies, things slow down, and we don't spend as much. That fact should give people license to spend a bit more early on.

We should also think about ways to pass money along, whether it's to children or charities, while we're living. If I die in my nineties, my kids will be in their sixties. I really hope they don't need my money by then.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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If you are being billed by the hour for professional services, now is the time to renegotiate, as AI has put the billable hour on life support.

In January 2024, during his recuperation from surgery and radiation treatment of thymoma — an extremely rare cancer — Los Angeles-based attorney Aaron Shechet, "wanted to do something for my wife and law partner, Leigh, who proved what being there 'for better or for worse' means. She said, 'Make an app that helps me bake better sourdough.'

"So I built an app to take pictures of her sourdough bread — AI analyzes the picture and tells how to improve it. It came out so good that I released it on Android and Apple."

Then an idea came to Shechet. "What if I could develop a platform that helps service providers, accountants, lawyers and other professionals use AI programs that would save them hours and result in significant cost savings to their clients?"

Veilgrid was the result. "It is a platform that creates custom AI-powered tools tailored to specific business activities," he notes, "such as drafting contracts, leases, various sorts of documents and automating related office functions, saving upwards of 75% of the time required to do the same work manually."

AI impacts professionals and their clients/customers

Shechet has been a mediator and fee arbitrator in Los Angeles for years, and he has impressed me with his concern for clients trapped in billable-hour spirals. He sees a tsunami coming to those professions that view efficiency as their mortal enemy.

"Billable hours reward lawyers, accountants, management consultants — to list just a few — for spending more time on a task," he says. "Faster work — efficiency — directly reduces total revenue, as you can't bill a whole lot of hours.

"With AI, the incentive is to be more efficient, as you will invoice on the completion of work, not the hours to do the work."

He adds, "Clients do not care how the final product was produced — they just want results, the more economical the better. And they know that AI saves an enormous amount of time in producing reproducible items, such as contracts, leases, tax returns and so much more."

A new standard of care

Shechet strongly believes that the new standard of care for law and other professions, figuratively speaking, will be a $5 charge with "AI quality," instead of hundreds of dollars an hour with potentially less quality.

"What clients pay must come down," he says. (For the record, AI is wrong sometimes, so someone still needs to check the work to make sure it's accurate.)

He lists tasks where AI is most effective in law that would take hours to do manually and cost clients hundreds to thousands of dollars:

• Anything written, including contract drafting, pleadings, motions and discovery
• Summaries of depositions for senior partners that can be generated in minutes
• Legal research that requires dramatically reduced time
• Tasks that once took teams of junior associates weeks can now be completed by a single attorney in a few hours or even seconds

AI also works 24 hours a day. It doesn't have student loans or employment insurance, it doesn't complain, and it doesn't face employee lawsuits.

New billing methods

Shechet and many other observers expect to see subscription models where a lawyer, accountant or other professional is on call to handle all the matters a client needs for a flat monthly fee.

"We should also see more per-job and contingency fees," he notes, adding, "AI is no longer in the experimental stages for many professions. It is being widely adopted. Clients need to ask their lawyers, accountants and other professionals who bill by the hour, 'Are you using AI to save me money? And if not, why not? Why does this professional service cost so much?'"

What's the impact on lawyers?

I asked Shechet what impact AI will have on the human side of the legal profession.

"There will be little justification," he says, "for massive law firms — that have been compared to pyramid schemes — to reward senior partners while demanding impossible 2,000 yearly billable hours from junior lawyers. That (practice) has invited decades of bill-padding and outright fabricated work and destroyed marriages and families.

"The need for lawyers will shrink, and hopefully, the ability to go home at 5 p.m. and have dinner with the family and have a life will return to the legal profession."

For anyone considering law as a career

Shechet cautions that law can no longer be recommended as a safe, automatic path to a high-income career.

"But if law is pulling you, go for it. Follow your instincts, but do not expect the profession to look the way it did 20 years ago. Veilgrid came from following what presented itself: I built it for our practice, then other lawyers, then other professions, and finally, it became a platform.

And he cautions, "Anyone considering law should think very carefully about debt. Do not borrow an enormous amount of money because this seems like a safe profession. The supposedly safe, predictable part of legal work is exactly the part AI is commoditizing most quickly."

Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

If you're aiming to retire at the standard retirement age of 65, your 50s can feel like crunch time. Whether you're falling behind or you're pretty sure you're on track, this is the decade to nail down exactly how much you need to save for the retirement lifestyle you want and exactly what it's going to take over these next 10 to 15 years to get there.

At the same time, you might be part of the sandwich generation – those who have been stretched thin by the need to take care of both their aging parents and their older children, all while still trying to keep up with their own financial goals.

Suddenly, you hit 50 and realize the runway to retirement has gotten a lot shorter and you're not sure if you're anywhere close to where you should be at this point. If that sounds familiar, this checklist should help you get back on track.

4 financial priorities for your 50s

In your 50s, you have one major financial goal: get your retirement fully funded. With a few exceptions, anything else will take a back seat for this next decade. The question is less about what your financial priorities should be and more about building a personalized plan to get you where you want to be.

1. Come up with a realistic retirement number

When you first started putting away money in your 401k or other retirement accounts, you might have had a vague sense of how much money you needed to save up for your golden years. Now that those years are moving closer, it's time to revisit your goal and, if it's not already, make it more concrete.

You'll find some rules of thumb around what percentage of your current salary you should plan to spend each year in retirement — like 70% or 80% of your pre-retirement income — in order to maintain your current lifestyle. And you might have an idea of your expected lifespan based on how long your parents or grandparents lived.

But in reality, the amount you should plan to have for retirement depends on so many different factors. Do you want to maintain your current lifestyle or do you want to do more, like travel or rent out your home and retire in an RV for a few years?

This answer can change how much you need to save. Do you have a lot put away already or have you only just started to really save seriously for retirement? This answer can change how much you can realistically save (or what age you can realistically retire). Do you want to hang up your boots right at 65 or do you plan to retire sooner (or later) than that?

The best way to find the magic number that fits your retirement goals and your current financial situation is to meet with a financial planner. More than any online calculator or broad rules of thumb, a professional financial planner can talk through your finances with you and help you create a personalized plan to get you from wherever you are today to where you want to be when you retire.

Use the Bankrate tool below to connect with a financial professional who can tailor a plan to help you reach your financial goals:

2. Start learning about social security, Medicare and other retirement benefits now

How much can you expect social security to contribute to your retirement income? How much will that number change depending on what age you begin claiming it? If you plan to, say, start a business or take a part time job to keep busy and pad your budget, how will working affect your benefits?

Navigating the paperwork and logistics of social security, Medicare or a pension (if you have one) can be complicated and you don't want to wait until you actually need that income to figure it all out. If you haven't spent much time learning about how it all works yet, here are a few resources to get you started:

• How to estimate your Social Security benefits
• How to maximize your Social Security benefits
• A guide to Medicare basics
• What is Medigap insurance and who needs it?
• How does your retirement strategy change if you will have a pension?
• What happens to your benefits and taxes if you work past retirement age?

These are all great things to discuss with a financial planner as well. But if you're not ready to work with one just yet, take advantage of all the online resources you can right now to familiarize yourself with how it all works.

3. Aim to be debt-free by retirement

If you're still wrestling with debt, the idea of putting anything extra toward retirement might seem impossible. In that situation, think of your debt payments as part of your retirement plan. If you tally up everything you're spending now on your mortgage and other debts, that's the amount you can subtract from your retirement budget – or redirect toward pursuing the hobbies and bucket list adventures you're planning to do in retirement – once you've paid it all off.

Instead of feeling like those debt payments are holding you back, know that paying that debt down is just as important for your post-retirement future as contributing to your 401k is.

4. Prioritize your health now

A healthy retirement is just as important as a fully-funded one. Not only does physical health allow you to do more in retirement, it can also be a financial boost by lowering your future medical costs.

Work with your doctor to come up with a comprehensive and personalized diet and exercise plan so you can establish the right healthy habits now to slow the progression of conditions you might already have and prevent ones you don't.

The changes you make now can have a big impact, even if you weren't keeping up with regular exercise or a healthy diet before.

What to do if you're behind on retirement savings

By 55, the typical American has just $185,000 in retirement accounts, according to the Federal Reserve. That's just over two years worth of the median income of $82,150 at that age. In other words, it's not enough to retire on. If you're in a similar situation and feel like you might never be able to retire, here are a few strategies that can help you catch up.

Max out every retirement account you can

Once you hit 50, the IRS allows you to contribute even more than the standard maximum contributions to your retirement funds. By age 60, you'll enjoy super catch-up contributions to help you reach your goals even faster. All of these give you more wiggle room to catch up on your retirement savings if your fund isn't where you want it to be right now.

Before contributing more beyond the tax-advantaged limits on your 401k and IRA, however, make sure you also contribute to your health savings account (HSA) if you have one. HSA contributions are tax-free when you contribute to the account and tax-free when you withdraw later — provided you use them for medical expenses.

By treating your HSA like an extra retirement account, you can build up a sort of separate healthcare fund so you're not tapping your main retirement savings to pay for the medical expenses that inevitably come up as you age.

Be realistic about how much financial support you can provide others

As the sandwich generation, you love your kids and your parents. If you can afford to help out financially without sacrificing your retirement, that's great. But right now, your top priority needs to be a fully funded retirement, so you may need to set some boundaries.

You can still provide support to your loved ones in other ways. For example, instead of handing your kids cash, consider letting them move back home so they can focus on saving up for their own goals without worrying about rent.

If your parents are struggling to make ends meet, you can help them navigate the paperwork and logistics of setting up the long-term care they need through Medicare or other resources rather than writing the checks yourself.

If you have debt, work on lowering your interest rates

Juggling debt and catch-up retirement savings at the same time can be exhausting and make you feel you're not really making a lot of progress on either goal. To break through that plateau feeling, one of the most accessible tricks that many people overlook is lowering your interest rates.

Every percentage you can shave off that interest rate means more of each monthly payment is paying down the actual principal instead of being eaten up by interest.

Here are a few ways to lower your interest rates:

• Ask for lower rates. Yes, you can simply call up your credit card or loan provider and ask for a lower interest rate. Your chances of a yes are better if you have a good track record of on-time payments. But it doesn't hurt to ask regardless of your payment history.
• Use 0% intro offers on credit cards. 0% introductory rates on new cards or balance transfer offers on your existing cards can be a useful way to build momentum on debt repayment. The key is limiting the amount to what you can pay off before the introductory rate expires — and making sure you don't build up new debt now that the old debt is gone.
• Tap home equity to consolidate higher interest debt. By your 50s, you may have built up a healthy amount of home equity. Often, home equity loans can come with much better interest rates than you'll find elsewhere. So, whether you're battling credit card debt or a high interest auto loan, tapping some of that equity to consolidate that into a lower interest loan can help you pay down debt faster and pay less in interest overall.

These aren't one-off tricks, either. You can repeat these strategies regularly as you chip away at your debt. When your 20% credit card debt is gone, for example, your 10% personal loan becomes the "high interest debt" that you can consolidate into either a better rate loan or a 0% introductory offer credit card.

Use the tool below, powered by Bankrate, to compare today's top home equity offers:

Consider taking a side job

If you don't think you'll get anywhere close to your retirement goal with the amount you're currently able to contribute, it might be worth taking on a flexible second job for the next few years to help you catch up. You can dump those entire paychecks into retirement savings or debt to build some strong momentum toward your financial goals.

This isn't an option for everyone. But if you're able to take on the added stress of a side job for a few years in your 50s, it might be the ticket that unlocks the retirement you've been dreaming about 10 to 15 years from now.

Create retirement back up plans

Depending on where your retirement savings are at right now, it can help to come up with a few different scenarios for what your retirement might look like. For example, maybe you don't have the savings to fully retire at 65, but you have enough to cut back to part time work at that age for a few years to finish funding your retirement.

Maybe you're only slightly behind and can pull it off if you just push your retirement age up to 67 instead of 65 — or maybe you can retire at 65, but only if you downsize your home and throw that extra equity into retirement.

There are a lot of different ways to retire, and no one size fits all. Even if your alternatives don't sound quite as ideal as the retirement you envisioned, having those back-up plans can help you breathe easier. You'll know that no matter what, you've got a plan in place.

Related content

• A 5-Part Financial Checklist for Your 30s
• An Essential Money Checklist For Your 40s
• Sell, Borrow or Stay? How to Use Home Equity in Retirement
• How to Help Your Adult Kids Without Hurting Your Retirement

If you have a travel-focused credit card that offers points on your spending, you can usually redeem them for flights and hotel rooms by visiting the issuer’s booking platform or getting statement credits for travel purchases.

And some cards offer another way to use your points: Transferring them to airline and hotel loyalty programs. The key is knowing conversion ratios, as this can help you maximize the value of the points you're transferring to a participating partner.

Here's a look at the credit card companies that offer points transfer, some of the participating partners they work with and how you can maximize your points value for elevated travel.

Transferring points: What are my options?

American Express allows customers who collect Membership Rewards points with its cards to convert them to 20 loyalty programs, including Delta SkyMiles, Hilton Honors and Marriott Bonvoy.

Those who use the Chase Sapphire Preferred and Chase Sapphire Reserve cards can transfer their Ultimate Rewards points to 14 partners, such as Southwest Rapid Rewards, United MileagePlus and Marriott Bonvoy.

Eligible Citi cardholders can transfer their ThankYou points to about 20 programs, including American Airlines AAdvantage and Choice Privileges.

Capital One’s credit card miles are transferable to more than 15 partners; among them are JetBlue TrueBlue and Wyndham Rewards.

How to maximize your transfer value

Especially for premium airline tickets or luxury hotel stays, you may get the best value out of your rewards by making a transfer and redeeming the miles or points through the airline or hotel loyalty program.

But as you compare the options, factor in the transfer conversion rate. Some transfers take place at a 1:1 ratio, meaning 1,000 credit card points translate to 1,000 points with the loyalty program. In other cases, the ratio may differ. A transfer of 1,000 credit card points may result in 800 airline miles with some programs, for instance.

"Keep in mind that these transfers are irreversible," says Nick Ewen, editor-in-chief at travel website The Points Guy. He advises using transferred points as soon as possible. If you delay, you may miss out on any award bookings you were planning to make. And over time, loyalty programs may devalue their points or miles.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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For many adult children, one of the hardest conversations to have is with their parents about finances.

• Do Mom and Dad have updated estate documents?
• Who would make financial or health care decisions if one of them became incapacitated?
• Where are the accounts, insurance policies, passwords and key documents?
• Have they thought about whether they want to age in place, downsize or move closer to family?
• Are they vulnerable to scams?
• Is one spouse carrying all the financial knowledge while the other remains largely uninvolved?

These are practical questions. But inside a family, they rarely feel that way.

For parents, the conversation can feel like a threat to independence. For adult children, it can feel like overstepping, prying or implying that a parent is no longer capable.

Add sibling dynamics, second marriages, privacy concerns and years of family history, and it's easy to understand why so many families avoid the conversation altogether.

The problem is that silence doesn't preserve independence. In many cases, it puts it at risk.

When families wait until a health event, cognitive issue, hospitalization, death of a spouse or financial emergency forces the conversation, decisions often must be made quickly, emotionally and with incomplete information.

Adult children might not know where assets are held, whether estate documents exist, who the attorney is, how bills are paid or what their parents wanted.

A better approach is to reframe the conversation entirely. This is not about taking control. It's about helping parents remain in control for as long as possible and making sure their wishes are known, documented and respected.

Start with values, not account balances

One of the biggest mistakes adult children make is starting with the numbers.

"How much money do you have?" or "Where are all your accounts?" might be well-intentioned, but those questions can feel invasive. A more productive entry point is to start with values, preferences and peace of mind.

For example:

• "I don't need to know every financial detail, but I want to make sure I would know how to support you if something happened."
• "If there were ever a medical emergency, I would want to be certain I was helping make decisions in the way you would want."

This shifts the tone from investigation to support. It also makes clear that the goal is not to take over, but to understand the plan.

In my experience, families make more progress when the first conversation is about wishes.

• Where do your parents want to live if their health changes?
• Who do they trust to make medical decisions? Who should be contacted first in an emergency?
• What would comfort, dignity and independence look like to them?

Those answers can open the door to the more technical planning that needs to follow.

Consider a scenario we see more often than families expect. A spouse passes away after decades of careful saving. He was an electrician who built nearly $3 million through discipline and frugality, but managed everything himself.

The surviving spouse discovers accounts scattered across multiple banks, IRAs she can't access, missing passwords and a life insurance policy with no instructions on how to claim it. She doesn't know what her income will be, how to manage the investments or even how to pay the electric bill.

He meant well. But what he intended as good stewardship became an avoidable burden for the person he loved most.

That is what this conversation is really about.

Make the conversation smaller

Another common mistake is trying to solve everything at once.

Aging, estate planning, long-term care, digital access, beneficiary designations, powers of attorney and family roles are too much for one discussion. When adult children try to cover every topic in a single sitting, parents can feel overwhelmed or defensive.

Instead, think of this as a series of smaller conversations.

• "Do you have the right documents in place, and does someone know where they are?"
• "Have you thought about where you would want to live if staying in the house became difficult?"
• "Would you be comfortable introducing me to your adviser, attorney or accountant so I know who to call in an emergency?"

Smaller conversations reduce pressure. They also make the topic feel like part of normal family life rather than a one-time intervention.

Focus on organization before decision-making

Many families don't realize how much stress can be avoided simply by getting organized.

At a minimum, every aging parent should consider creating a central financial life organizer. This doesn't have to include every dollar amount, but it should tell trusted family members where to find essential information if needed.

That might include:

• A list of financial institutions and account types
• Retirement accounts, pensions and Social Security information
• Insurance policies, including life, home auto and long-term care
• The location of wills, trusts, powers of attorney and health care directives
• Names and contact information for the financial adviser, CPA, estate attorney and insurance professionals
• Mortgage, property tax, utility and recurring bill information
• Beneficiary designations and trusted contacts
• Key digital accounts and legacy access instructions

This kind of organization can be especially important when one spouse has historically managed the household finances. The surviving spouse might be fully capable, but if he or she does not know where things are, who to call or how bills are paid, the transition can become unnecessarily stressful.

A financial life organizer isn't just an administrative tool. It's a gift to the people who might one day have to step in.

Be careful with the word 'help'

Adult children often say, "I just want to help." Parents often hear, "You think I can't handle this anymore."

That disconnect can derail an otherwise important conversation. A better approach is to ask permission.

• "Would it be helpful if we sat down together and made sure everything is organized?"
• "Would you be open to walking me through who I should contact if there were ever an emergency?"
• "Would it give you peace of mind if we made sure your documents and beneficiaries still reflect your wishes?"

The difference is subtle but important. Asking permission preserves dignity. It allows parents to remain the decision-makers.

Bring in the right professionals

Some families are comfortable having these conversations on their own. Others benefit from involving a neutral professional.

A financial adviser, estate attorney, elder law attorney, CPA or geriatric care manager can help separate the emotional family dynamics from the technical planning. They can also help identify gaps that family members might not know to look for.

For example, an estate plan might exist, but beneficiary designations on retirement accounts or life insurance policies may be outdated.

A parent could have a power of attorney, but the named agent might no longer be the right person.

A parent might want to age in place, but the home could need modifications, additional support or a plan to fund future care.

The right professional team can help families move from vague concern to specific action.

Don't ignore fraud and exploitation

Another reason these conversations matter is financial safety.

Older adults are frequent targets for scams involving fake government agencies, tech support schemes, romance scams, grandparent scams and urgent requests for money. The most dangerous scams often involve fear, secrecy and pressure to act immediately.

Families can create a simple rule: No major financial decision, wire transfer, unusual payment or urgent request should be acted on without first speaking to a trusted family member or adviser.

That rule can prevent significant financial harm.

Keep the conversation going

The goal is not to have one perfect conversation; it's to normalize the topic.

Plans change. Health changes. Laws change. Family dynamics change. Documents that were appropriate five years ago might no longer reflect a parent's wishes today.

A brief annual family check-in can help keep everyone aligned. It doesn't need to be formal, and it does not require parents to disclose every financial detail. But it should confirm that key documents are current, trusted contacts are still appropriate, family members know who to call, and parents' wishes are understood.

The families that navigate aging and wealth transitions best are not the ones that avoid hard conversations. They're the ones that learn how to have them with respect, patience and love.

Talking to parents about money doesn't have to mean taking away their independence. Done well, it can do the opposite, preserving their voice, protecting their dignity and giving the entire family greater confidence about the road ahead.

Please see important disclosure information at opalwealthadvisors.com/disclosure.

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• How to Talk to Your Family About Estate Planning (Without the Drama)
• 11 Tips for Talking to Your Aging Parents About Their Finances and Future Care

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Medicare premiums are set to rise again for 2027. The latest Social Security and Medicare Trustees Report (page 207) estimates that Part B premiums will climb 3.5% in 2027, reaching $209.50 per month, up $6.60 from 2026. While another price hike is never good news for retirees, the increase is a relief compared to the almost 10% spike experienced in 2026.

Unlike Part B, Medicare Part D is sold through private insurance companies, either as a standalone drug plan alongside traditional Medicare or as part of a Medicare Advantage policy.

Because individual plan costs vary, the average premium enrollees pay is typically lower than the base beneficiary premium. According to the latest Trustees Report, the Part D base premium is projected to reach $41.33 per month in 2027.

Medicare Part B premiums in 2027

Medicare Part B pays for doctor visits, outpatient care and some home healthcare. When enrolled, you pay both a deductible and a monthly premium. For 2027, the premium is currently projected to rise 3.5% to $209.50, up $6.60 from $202.90 in 2025.

The Part B deductible is projected to reach $292 in 2027, a $9.00 increase from $283.00 in the previous year. On a percentage basis, it's an increase of 3.2%, in line with the estimated increase of the Part B premium.

The projected Part B increase impact on Social Security benefits

The 2027 Social Security COLA is projected to rise 3.8%, after accounting for the June CPI. In terms of dollars, if implemented now, that would translate into an increase of $79.14 per month or $949.68 per year, when using the average Social Security check amount for May 2026 ($2,082.76) as the base amount.

The Social Security Administration (SSA) automatically deducts the Part B premium cost from the Social Security benefits of most Medicare recipients. For 2027, the average Social Security check would fall from $79.14 to $72.54, subtracting the projected Part B increase ($6.60) from the projected COLA raise (79.14). In that scenario, the Part B increase would consume approximately 8.3% of the monthly increase.

Understanding Medicare Part D premiums

Unlike Part B, there isn't a single "standard" Part D premium, as it varies by plan. The Centers for Medicare & Medicaid Services (CMS) establishes a standardized base premium amount used to calculate late enrollment penalties and to determine Part D IRMAA surcharges. For 2027, the base premium is $41.33.

Most final premium and deductible amounts won't be announced until late October or early November; however, most of the Part D amounts have been finalized.

Annual deductible: The standard Part D deductible will increase to $700 in 2027, up from $615 in 2026. That's a steeper increase than in 2026, when the deductible rose to $615 from $590 in 2025, a $25 increase.

Out-of-pocket spending cap: On a positive note for 2027, Medicare Part D's annual out-of-pocket prescription cap will rise to $2,400, up $300 from the $2,100 limit in 2026. Once beneficiaries reach this cap, they no longer pay out-of-pocket costs for covered prescription drugs for the rest of the year.

Premium protections and stabilization: To shield enrollees from steep rate hikes, the premium stabilization provision of the Inflation Reduction Act (IRA) caps annual base beneficiary premium (BBP) growth at 6% yearly through 2029, while limiting how much extra cost plan sponsors can pass along.

While an IRA demonstration program previously stabilized average monthly premiums, CMS scaled back that support in 2026, stating in a memo that reducing federal subsidies is meant to help the Part D program "return to operating under regular market conditions."

Full table

Below you will find the projected deductible, premiums and coinsurance amounts for Part A and Part B. The Part D amounts are final.

*The 2027 Part D base premium, deductible and maximum out-of-pocket limit have been finalized. These numbers are not estimates.

The value of tracking the projected premiums

Medicare open enrollment runs from October 15 to December 7 annually. During this period, you can switch from original Medicare to a Medicare Advantage plan, or vice versa. You can also choose a new Advantage plan or Medicare Part D prescription drug coverage.

To get the most from your plan, it’s important to understand your out-of-pocket costs for premiums, which will vary depending on your plan and income. For instance, you could also owe a monthly surcharge on Medicare Part B and Part D premiums based on an income-related monthly adjustment amount (IRMAA).

Your IRMAA liability for 2027 will be based on the MAGI shown on your 2025 return. While you can't do anything to change your 2025 tax return, you can look over your finances to see if you are in danger of paying the IRMAA in 2028, which will be based on your yet-to-be-filed 2026 tax return.

Income planning can go a long way in limiting your exposure to the surcharge. For instance, a well-timed Roth conversion can reduce your taxable income and eliminate required minimum distributions (RMDs).

Projections for Medicare Part B 2026 are primarily derived from the annual Medicare Trustees Report. While the final figures are usually announced by CMS in November of the preceding year (so, November 2026 for 2027 premiums), the Trustees Report provides strong estimates. The Part D base premium, deductible and out-of-pocket maximum for 2027 have been finalized and are reflected in our tables.

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Whenever I meet with new investors, one of their first questions is, "What are your fees?"

While this might seem like a natural question, it's often misguided and asked too early in the process. Before you ask about an adviser's fees, you should first want to know what services they can provide.

When I was in college, I ran a house-painting franchise. Every spring, homeowners would collect bids and try to decide who to hire. This is when I discovered that a price is comparable only after you define the job.

One painting crew might scrape, sand, prime, caulk, protect landscaping and do two coats, with a written warranty. Another might spray on a quick coat and disappear.

If all customers did was compare two quotes that were only a couple of hundred dollars apart, they weren't comparing value; they were merely comparing the costs of vastly differing services.

Choosing an investment professional works the same way. As one SEC article notes, "Just as a grocery store offers more products than a convenience store, some investment professionals offer a wide range of products or services, while others offer a more limited selection."

The key is to work with one that fits you well and can deliver advice specific to your needs and wants.

So instead of leading with a question about fees, here's the sequence that makes fees meaningful and helps you avoid paying for the wrong thing.

1. Name the job

One of the biggest mistakes people make when seeking financial advice is failing to clearly define what they need.

When I ask someone what they want from an adviser, the answer is often something vague like "to do better," "to get the highest rate of return" or "to make sure I'm on track for retirement." Those are ambiguous goals, not a clear job description.

Before you compare advisers, decide what problem you want solved. Do you need:

• A one-time second opinion?
• A written, comprehensive and holistic financial plan that connects retirement income, taxes and investments?
• Ongoing portfolio management?
• A "quarterback" relationship where one adviser helps coordinate investing, tax strategy and estate planning?

2. Understand what the adviser does for you

If you walk into a meeting and ask an adviser, "What are your fees?" and they say, "1%," what exactly does that number mean? What will you compare it to? Another adviser might also say 1%, but the two of them could provide completely different services.

One might be building a comprehensive, written retirement plan, coordinating tax strategies, helping with estate considerations and managing your investments. Another might simply be recommending funds from a menu their company provides.

The price might be identical, but the work behind it could be completely different. The depth and breadth of each adviser's capabilities would, in many cases, yield vastly disparate results.

If you only compare the cost, you may think you are comparing identical services when you are not. That is why the better question early in the conversation is not, "What do you charge?" but, "What exactly do you do for clients like me?"

Once you understand the services, the process and the expertise being offered, the fee discussion finally has context. And that is when you can decide whether the price is fair for the value being provided.

3. Determine adviser licensing, designations and background

Knowing what licensing and certifications your prospective adviser carries is critical to differentiating between professionals you may wish to engage. A narrow range of licensing may indicate both limited experience and limited access to industry products, services or strategies.

Also, certifications, such as the CERTIFIED FINANCIAL PLANNER® designation, may indicate the extent of training, depth and professional standards your practitioner brings to the table.

This can come into play when you notice an adviser does not use or recommend (or even denounces) certain financial instruments, which they are also conveniently not licensed to recommend or provide.

Unless you are aware of their licensing and certification, or even company affiliation, you may not be able to determine whether the advice you are seeking may have significant limitations.

The SEC's Investor Bulletin on using Investor.gov's Investment Professional Search tool suggests always researching an investment professional, including confirming registration and checking for disciplinary events, before deciding to work with them.

If your professional is licensed in the brokerage business, you can also use FINRA BrokerCheck. It's a free tool to research the professional backgrounds of investment professionals and firms.

You're not hunting for "gotchas." You're looking for patterns — repeat customer complaints, repeated job-hopping or disclosures that don't match the story you're being told. If you find something you are curious about, make sure you ask the adviser about it.

Ask for the documents that put fees and any conflicts of interest in writing. If an adviser is truly transparent, they'll gladly show you the paperwork that regulators care about.

If you'd like a ready-made interview script, the SEC's "Questions to Ask when Hiring an Investment Professional" bulletin includes practical questions that turn fuzzy conversations into measurable answers.

4. Now talk fees

Only after you've defined the scope and read the disclosures does "What are your fees?" become a useful question.

Since fees that look small can still have a major impact over time, ask what you will pay in year one and what you'll pay in a typical ongoing year.

Then ask what you can expect for those dollars, such as meeting cadence, written deliverables, tax coordination, rebalancing discipline and how recommendations will be documented.

Making better decisions

The real goal isn't simply to find the lowest fee. It's to find the right experience, the right process and the right fit for the problem you're trying to solve.

Once you know the job, understand the services and confirm the credentials, the conversation about price finally becomes meaningful.

When you follow this order, you don't just get clearer answers about fees. You make better decisions about the advice itself, and that's what ultimately protects your money and gives you clarity about your financial future.

Ezra Byer contributed to this article.

The appearances in Kiplinger were obtained through a PR program. The columnist received assistance from a public relations firm in preparing this piece for submission to Kiplinger.com. Kiplinger was not compensated in any way.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Crude oil prices sank and interest rates were lower Monday on renewed hope for peace in the Middle East. But semiconductor stocks sold off as markets continue to wonder when escalating hyperscaler capex budgets will generate returns on investment.

The front-month West Texas Intermediate crude oil futures contract was down 8.1% to $82.04 per barrel. The 2-year Treasury yield declined by nine basis points to 4.322%.

Both are still much higher than they were before the war between the U.S. and Iran started on February 28. But the immediate reaction to the suspension of attacks in the U.S.-Iran war "implies further equity upside when the conflict is fully over," according to Louis Navellier of Navellier & Associates.

"The Fed decision on making a change in the fed funds rate will be the big event of the week," Navellier observes about the economic calendar.

The July Fed meeting starts tomorrow and ends Wednesday. Price action in the fed funds futures market shows a 64% probability the central bank keeps its primary benchmark where it is this week. But, according to CME FedWatch, odds of a rate hike in September are now up to 55.5%.

Looking for more timely stock market news to help gauge the health of your portfolio? Sign up for Closing Bell, our free newsletter that's delivered straight to your inbox at the close of each trading day.

It's also a big week for the earnings calendar, as Navellier notes: "By the end of the week, more than a third of S&P companies will have reported."

At the closing bell, the Dow Jones Industrial Average was up 0.5% to 52,209, and the broad-based S&P 500 had inched up 0.02% to 7,413 But the tech-heavy Nasdaq Composite was down 0.2% to 24,932.

AAPL > NVDA

Nvidia (NVDA, -5.0%) was the worst-performing Dow Jones stock during a rough session for chipmakers. The iShares Semiconductor ETF (SOXX, -2.1%) reflected broadening concern about the sustainability of the AI revolution as its leader makes new and bigger deals.

Bloomberg reported that Nvidia is discussing one deal worth as much as $250 billion to help its customer OpenAI lease computing power from a U.S. data center and another to finance $350 billion of OpenAI's chip purchases for the project.

On Friday, Nvidia announced a $500 billion deal with South Korea-based chipmaker SK Hynix (SKHY, -7.5%) that illustrates what skeptics describe as "circular" AI deals supporting the infrastructure build-out.

Apple (AAPL, +1.2%), meanwhile, overtook NVDA to become the biggest company in the world in terms of market cap. The iPhone maker will carry a year-to-date return of about 23% into its fiscal third-quarter earnings announcement after the closing bell on Thursday.

Meanwhile, amid rising anxiety about their capex plans, Meta Platforms (META, -0.2%) and Microsoft (MSFT, +1.9%) will report after the closing bell on Wednesday. Amazon (AMZN, -0.3%) joins AAPL in the spotlight on Thursday.

As Navellier writes, these four Magnificent 7 stocks account for 17% of the weight of the S&P 500 "and will be very telling of the continued confidence in the AI theme." Nvidia will report fiscal 2027 second-quarter earnings on Wednesday, August 26.

QBTS + T

D-Wave Quantum (QBTS, +8.9%) is one of the best ways to invest in quantum computing right now because it's making deals with classic blue-chip companies such as AT&T (T, +1.2%).

On Monday, D-Wave Quantum announced the expansion of a partnership teased in January when AT&T executives appeared at the Qubits 2026 conference. The telecommunications giant will now use D-Wave's tech across its network operations, most notably outage detection and traffic management.

"AT&T's initial focus is on layering D-Wave's annealing quantum computing technology into the tools that are already powering AT&T's agentic AI solutions," D-Wave said in its press release.

Mizuho Securities analyst Vijay Rakesh reiterated his Outperform (Buy) rating and raised his 12-month target price for QBTS from $29 to $35 following management's first "analyst day" event in June, citing its leadership in annealing QC.

Rakesh says D-Wave's updated financial model shows long-term gross margins for quantum computing as a service (QCaaS) at 65% to 75%, professional services at 40% to 50% and computing systems at 75% to 90%.

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The July Fed meeting kicked off on Tuesday, July 28, and concluded today, July 29, with the central bank's latest policy decision.

Oil prices have been volatile recently amid on-again, off-again fighting between the U.S. and Iran. But while crude futures were lower to start Fed week, they're up more than 20% for July, which is likely to keep headline inflation readings hot in the near term.

Still, Federal Reserve Chair Kevin Warsh and the rest of the Federal Open Market Committee (FOMC) voted to interest rates steady this time around, though a few committee members voted to raise rates.

The Kiplinger team reported live on the July Fed meeting, bringing you the news and expert analysis of what it could mean for the economy and your money. Scroll for the latest updates.

How Does the Federal Reserve Work? | How the New Fed Chair Could Impact What You Pay in Taxes this Year | Navigating the New Fed: 5 Conflicts Kevin Warsh Has to Tackle Now

The stock market trades mixed to start Fed week

Stocks are mixed at midday Monday as market participants weigh falling oil prices and a continued sell-off in semiconductor stocks.

At last check, the blue-chip Dow Jones Industrial Average was up 0.3% at 52,099, boosted by strength in mega caps Microsoft (MSFT) and Alphabet (GOOGL).

But the broader S&P 500 is down 0.04% at 7,408 and the tech-heavy Nasdaq Composite is off 0.2% at 24,924, with heavy losses for Micron Technology (MU) and SanDisk (SNDK) dragging on the indexes.

Over in the bond market, the yield on the 2-year Treasury yield is off 1.5 basis points at 4.316% and the 10-year Treasury yield is 3.2 basis points lower at 4.647%, though both remain near their highest points since early 2025.

- Karee Venema

Fed meeting schedule for 2026

The next Fed meeting, which runs from July 28 through July 29, marks the fifth gathering of 2026.

"The committee meets eight times a year, or about once every six weeks," writes Kiplinger contributor Dan Burrows in his feature, "When Is the Next Fed Meeting?".

The Federal Open Market Committee "is required to meet at least four times a year and may convene additional meetings if necessary," Burrows adds, noting that "the convention of meeting eight times per year dates back to the market stresses of 1981."

Fed meetings last two days and wrap up with the release of a policy decision at 2 pm Eastern Standard Time. This is typically followed by the Fed chair's press conference at 2:30 pm, though this could change under Warsh's leadership.

Here is the full remaining Fed meeting schedule for 2026:

• July 28 to 29
• September 15 to 16
• October 27 to 28
• December 8 to 9

- Karee Venema

Oil prices are lower Monday as U.S. and Iran pause fighting

Oil prices are starting Fed week on a negative note, with front-month West Texas Intermediate crude futures down 6.5% at $83.50 per barrel.

This comes after a Reuters report indicated that Iran has agreed to pause strikes in the region as long as Washington agrees to do the same.

But "the situation remains far from resolved," says Daniela Hathorn, senior market analyst at Capital.com. "Shipping risks through the Strait of Hormuz and continued disruption in the Red Sea mean energy markets remain vulnerable to fresh headlines, and any setback in negotiations could quickly send crude prices higher once again."

- Karee Venema

Who is Kevin Warsh?

The July Fed meeting will mark Kevin Warsh's second as head of the Federal Reserve. But who is Kevin Warsh?

Warsh previously served on the Federal Reserve Board from February 2006 through March 2011. He was Fed Chair Ben Bernanke's right-hand man during the 2008-09 global financial crisis and was his primary liaison to Wall Street, which earned him credibility he still retains.

Before his time at the Federal Reserve, Warsh was special assistant to the president for economic policy and executive secretary of the White House National Economic Council from 2002 through 2006, during the George W. Bush administration. From 1995 to 2002, Warsh worked for Morgan Stanley.

Leading up to his May 2026 confirmation as Fed chair, Warsh was a visiting fellow in economics at Stanford University's Hoover Institution, a lecturer at the Stanford Graduate School of Business and a member of the Panel of Economic Advisers of the Congressional Budget Office.

He is widely viewed as a "hawk" on monetary policy who generally favors higher interest rates rather than the risk of inflation.

At the same time, Warsh, who was said to be a candidate for Treasury secretary before Trump picked Scott Bessent, was on the short list because he has a great relationship with the president.

Warsh said in mid-2025 that "the independent operations in the conduct of monetary policy is essential," adding "that doesn't mean the Fed is independent in everything else it does."

Though he consistently took the hawkish line on inflation during his time inside the central bank, Warsh has more recently advocated for lower interest rates.

Read more: The New Fed Chair Was Announced: What You Need to Know

- David Dittman

The July Fed meeting is a "live" one

With inflation risks elevated amid geopolitical uncertainty in the Middle East, Wall Street isn't sure what the Federal Reserve will do with interest rates this time around.

The odds of a rate hike have been climbing recently. According to CME Group FedWatch, futures traders are now pricing in a 36% chance of a quarter-percentage-point increase to the federal funds rate on Wednesday — up from 16% one week ago.

And given Chair Warsh's "clear hawkish bias," this makes the July Fed meeting a "live" one, says Kyle Rodda, senior financial market analyst at Capital.com.

In addition to the "will they or won't they" narrative on interest rates, markets are also contending with the additional "challenge of working out the potential path forward for policy from here, given [Warsh's] antipathy towards forward guidance," Rodda adds.

- Karee Venema

Who gets to vote at the July Fed meeting?

The Federal Open Market Committee (FOMC) has 12 total members, eight permanent and four who rotate each year.

The eight permanent voting committee members include the Fed chair and vice chair, the five Fed governors and the president of the New York Fed.

Four regional Fed presidents are rotated in each calendar year.

The 2026 FOMC voting committee consists of:

• Fed Chair Kevin Warsh
• Vice Chair Philip Jefferson
• Fed Governor Michael Barr
• Fed Governor Michelle Bowman
• Fed Governor Lisa Cook
• Fed Governor Jerome Powell
• Fed Governor Christopher Waller
• New York Fed President John Williams
• Cleveland Fed President Beth Hammack
• Minneapolis Fed President Neel Kashkari
• Dallas Fed President Lorie Logan
• Philadelphia Fed President Anna Paulson

In 2027, the presidents from Chicago, Richmond, Atlanta and San Francisco will rotate in as FOMC voting members, according to the Federal Reserve.

- Karee Venema

How higher inflation — and interest rates — will impact Big Tech

Oil prices and their impact on inflation are just one uncertainty keeping Wall Street wondering what the Fed will do with interest rates. But there are others, says Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management Company, including President Donald Trump's recently announced tariffs, which will impose 10% to 25% levies on a variety of goods from major trading partners.

And this has major implications for Big Tech, which is ramping up capital expenditures to support artificial intelligence (AI) initiatives. Until recently, many of the biggest companies have been financing this spending boom through free cash flow, meaning higher interest rates weren't really an issue.

But now, says Schutte, several of these free-cash-flow-positive firms have tapped capital markets — both debt and equity — to fund their spending. He points to Alphabet (GOOGL), which said last week that it has increased its full-year capex budget to $205 billion at the high end and posted its first-ever quarter of negative free cash flow. It also announced an $80 billion stock sale in June to raise cash.

"We believe this marks an important shift," explains Schutte. "These companies, and the AI build-out more broadly, now increasingly rely on external capital to fund ever-growing investments, making them more economically sensitive as higher interest rates increase the cost of capital. The rising expense also raises questions about whether companies deploying AI will realize benefits quickly enough to justify continued spending."

Schutte does not expect the Federal Reserve to raise rates this week. He wonders, though, if the central bank will move to lift the federal funds rate sooner rather than later to ensure that higher inflation, which has been running above target for several years now and is unlikely to recede soon given mounting price pressures, does not become embedded in the economy. And this could have a major impact on Big Tech.

- Karee Venema

How well do you know the Fed?

Fed meetings have become key events as central bank officials try to balance high inflation and labor market hiccups against the White House's desire for lower interest rates.

But how well do you know the Fed?

With the next Fed meeting on deck, we decided to test your basic knowledge of the Federal Reserve with a quick quiz.

Master Your Fed Knowledge: Take Our Quick Federal Reserve Quiz

There's a range of possible outcomes for the July Fed meeting, says Johnson Investment Counsel's chief economist

The July Fed meeting could have several potential outcomes, says Brandon Zureick, chief economist and senior managing director at Johnson Investment Counsel.

The central bank made clear following its June meeting that it remains focused on price stability. And while the June Consumer Price Index (CPI) report was much softer than expected, Zureick notes, "geopolitical tensions have flared once again, reviving concerns that higher energy prices could renew upward inflation pressure."

But the FOMC will not see any July inflation data before this week's meeting, so the chief economist expects the Fed to keep interest rates at their current range of 3.5% to 3.75%. "However, policymakers are also likely to emphasize that they remain prepared to raise rates if subsequent inflation reports surprise meaningfully to the upside," he adds.

And with no Summary of Economic Projections released this time around, meaning market participants will not see any new economic forecasts or interest-rate projections from committee members, Wall Street will watch Chair Warsh's post-meeting press conference "closely for any clues about the Fed’s desired path for monetary policy," says Zureick.

- Karee Venema

Dow, S&P 500 close higher as oil prices decline

Stocks closed mixed Monday as market participants weighed falling oil prices against an extended sell-off in chipmakers.

The front-month West Texas Intermediate crude oil futures contract was down 8.1% to $82.04 per barrel. The 2-year Treasury yield declined by nine basis points to 4.322%.

Both are still much higher than they were before the war between the U.S. and Iran started on February 28. But the immediate reaction to the suspension of attacks in the U.S.-Iran war "implies further equity upside when the conflict is fully over," according to Louis Navellier of Navellier & Associates.

At the closing bell, the Dow Jones Industrial Average was up 0.5% to 52,209, and the broad-based S&P 500 had inched up 0.02% to 7,413 But the tech-heavy Nasdaq Composite was down 0.2% to 24,932.

Read more: Markets Weigh Peace Hope Against AI Fear: Stock Market Today

Markets remain mixed ahead of the July Fed meeting

Crude oil prices are trending lower and interest rates are also easing back, but equity futures indicate a mixed stock market about an hour before Tuesday's opening bell.

The S&P 500 and the Dow Jones Industrial Average are poised to open higher, though the tech-heavy Nasdaq Composite continues to be weighed down by concerns about returns on AI investments.

Still, like most investors, traders and speculators, Fed Chair Kevin Warsh will welcome another lull in the war in the Middle East and will hope it evolves into sustainable peace between the U.S. and Iran.

Indeed, rising energy prices because of the bottleneck at the Strait of Hormuz are the primary reason price action in the fed funds futures market suggests the Fed's next move will be to raise interest rates.

It probably won't happen at the July Fed meeting, which starts today and ends tomorrow. But multiple voting members of the Federal Open Market Committee (FOMC) have expressed fear of inflation accelerating again.

That makes this meeting a "live" one, meaning Warsh & Co. could raise rates. And CME FedWatch says the central bank will raise the fed funds futures rate as soon as September.

– David Dittman

Citadel strategist says the Fed hikes this week

"The market may once again be underestimating the extent of the hawkish shift at the Fed," writes Frank Flight, head of macro strategy at Citadel Securities, in a note previewing this week's FOMC meeting.

Indeed, Flight says the Fed will raise the target range for the federal funds rate by 25 basis points on Wednesday, a move that "would emphatically end the forward guidance era."

The strategist refers to new Fed Chair Kevin Warsh's campaign to rein in central bankers' talk about the future.

Raising interest rates would also strike a blow for Fed independence, Flight notes, and underscore Warsh's commitment to "price stability."

– David Dittman

Trump says Fed Chair Warsh is "fantastic"

President Donald Trump has carved out a safe space for Fed Chair Kevin Warsh, even as markets price in higher interest rates.

"Kevin's fantastic, but he's got a board, and the board members are very political, I would say," Trump said to reporters on Monday. "He wants to do the right thing. I know what he wants to do."

Warsh wants "price stability," though it's fair to say Trump put him at the Fed to the federal funds rate.

Indeed, on Monday the president repeated his claim that the U.S. should have the lowest interest rates in the world.

"You need the consent of some people that have perhaps bad intentions. Rates should be lowered. This country could be at 8%, 9%, 10%, 12% GDP. That’s what it should be," he said.

"We should have the lowest interest rate in the world, like it used to be 30 years ago," he added.

The main equity indexes remain mixed, with the Dow Jones Industrial Average and the S&P 500 in positive territory, but the Nasdaq Composite still suffering the burden of heavy AI expectations.

Crude oil prices are down, and Treasury yields are lower across the maturity spectrum.

– David Dittman

Are you ready for "higher for longer" long-term rates?

"Interest rates have steadily risen since the start of the Iran War," Moody's Analytics Chief Economist Marc Zandi writes in a preview of the July Fed meeting, "and are an increasingly heavy burden on the economy."

The 10-year Treasury yield was at 3.960% on February 27, the day before the war in the Middle East started, and closed at 4.641% on Monday. The 30-year fixed-rate mortgage, as Zandi notes, has risen from below 6% to above 6.8%.

"Somewhat surprisingly, the runup in rates is not because of higher inflation expectations," Zandi observes. "They’re unchanged."

Indeed, the market believes Fed Chair Kevin Warsh when he says he's committed to "price stability," and that the central bank will "press on the brakes" and raise interest rates to stem inflation. Hence the rise in the 2-year Treasury yield.

"Arguably more surprising is that the other half of the increase in T-yields is an increase in the term premium," the economist says.

The "term premium" is extra yield on a longer-term bond because there's more risk vs a shorter-term bond or other alternative. It's not a good thing that it's "suddenly about as wide as it has been since the wake of the Global Financial Crisis."

And Zandi is concerned about the new Fed chair's communications policy. "It can’t help that the new Fed chair believes the Fed should be less transparent in setting monetary policy. This means greater uncertainty and, thus, volatility in rates," Zandi explains.

"Then there is the Iran War, which is increasingly costly to the Treasury," Zandi adds. "The nation's dark fiscal outlook is getting darker."

Higher prices for crude oil and other commodities have left a notable economic impact. "But the damage from the conflict’s fallout on monetary policy and long-term interest rates is mounting quickly," the economist concludes.

"Higher-for-longer interest rates will be increasingly tough for the economy to bear."

– David Dittman

What Warsh (and Bessent (and Trump?)) really want

The solution to the basic problem Moody's Analytics Chief Economist Marc Zandi describes–higher-for-longer long-term term rates–could be an increase to the federal funds rate.

That's how Wells Fargo Securities Chief Economist Tom Porcelli sees it.

"By raising rates, Warsh (and by extension Bessent) will get what they ultimately want: back-end rates to move lower. The thinking goes that by hiking, Warsh will firm up his inflation fighting cred and squeeze out the inflation premium built into the back end of the rates market."

Zandi emphasized the "term" part in his note. But the operative part is the premium. If it comes down, things like 30-year mortgage rates could move lower.

That's what recent history suggests, as Bloomberg's Robert Burgess observes: "The recently deceased Fed Chairman Alan Greenspan found that out back in 2024, when the central bank started raising its target for the federal funds rate from 1% to 4.25% by early 2006 only to see longer-term bond yields fall."

Amid "Greenspan's conundrum," 30-year mortgage rates fell from 6.34% to 5.47%.

– David Dittman

Crude oil sell-off reaccelerates

Prices for the front-month West Texas Intermediate (WTI) and Brent crude oil futures contracts spiked lower late Tuesday morning amid more fresh hopes for peace in the Middle East.

WTI was down 0.7% at the opening bell, Brent 0.4%. A sell-off that started on Monday with President Donald Trump saying there's a chance the U.S. and Iran could make a deal to end the war in the Middle East accelerated shortly after 11 am Eastern Standard Time.

WTI, the domestic benchmark, plunged to $77.80 per barrel, down 5.8% from its Monday closing price. Brent, the global crude benchmark, slid 6.6%.

Interest rates are also falling, with the 2-year Treasury yield down to 4.266% vs 4.323% on Monday, the 10-year down to 4.59% from 4.641%, and the 30-year at 5.092% vs 5.125%.

The Nasdaq Composite rallied to join the S&P 500 and the Dow Jones Industrial Average in the green for the day.

Semiconductor stocks are still struggling, though Nvidia (NVDA) was among 27 of 30 Dow Jones stocks in positive territory.

– David Dittman

Rate hike odds recede

CME FedWatch showed a 68.5% probability the target range for the federal funds rate will still be 3.50% to 3.75% when the July Fed meeting wraps up on Wednesday. That's up from 63.7% at the closing bell on Monday.

At the same time, price action in the fed funds futures market shows the odds of a 25 basis-point rate hike in September have ticked back to 55.6% from 55.7%.

The front-month West Texas Intermediate crude oil futures contract is down more than 4%, and the 2-year Treasury yield is lower by five basis points.

The Dow Jones Industrial Average is up more than 1% heading into the final hour of trading for the first day of the July Fed meeting. The S&P 500 is in positive territory, too.

The tech-heavy Nasdaq Composite is struggling to stay above the breakeven line. But investors, traders and speculators seem encouraged again by prospects for peace in the Middle East.

– David Dittman

Trump v Fed governors

Whether threats against the Fed's independence create upward pressure on interest rates seems a moot point when the executive branch is using tariffs and wars of choice as its principal tools of foreign policy.

Both the 2-year and the 30-year Treasury yields have hit new 52-week highs in recent weeks, pushed up by the energy shock emanating from the Strait of Hormuz, mostly, but also due to the lingering impact of Trump's tariffs.

Still, when President Donald Trump says things like, "Kevin’s fantastic, but he’s got a board, and the board members are very political," and refers to those board members as "some people that have perhaps bad intentions," Fed watchers are going to pay close attention.

There is, after all, an active case on the federal docket about whether President Trump can fire Fed Governor Lisa Cook.

Indeed, among the multiple conflicts Fed Chair Kevin Warsh must navigate is a potential attempt to remove Fed Governor Michael Barr.

– David Dittman

Chip stocks are still a drag on the Nasdaq

Stocks were choppy early on Tuesday, but falling oil prices and a round of well-received corporate earnings helped the Dow Jones Industrial Average and S&P 500 climb higher into the close.

Front-month West Texas Intermediate crude futures fell 4% to settle at $79.26 per barrel.

The Nasdaq Composite, however, couldn't sidestep an extended slump in chip stocks.

Read more: Dow Soars 537 Points on Strong Blue-Chip Earnings: Stock Market Today

The most important day for stocks?

Today may be the most important day for stocks in recent memory, says Rick Gardner, chief investment officer of RGA Investments. One thing Wall Street does not like is uncertainty, so today's update from Fed Chair Warsh on interest rates and inflation amid volatile oil prices will be welcome.

Gardner does not expect a rate hike this time around given that "bond yields have already risen to the upper end of their trading range, and have essentially acted as a rate hike without the Federal Reserve making any adjustments."

In addition to the Fed meeting, market participants will also see quarterly results from mega-cap companies Meta Platforms (META) and Microsoft (MSFT) after tonight's close.

These earnings reports, as well as those from Amazon (AMZN) and Apple (AAPL), which are due out after Thursday's close, "may help shed light on whether or not we are finally seeing a return on investment for the massive amounts of AI spending taking place," explains Gardner.

- Karee Venema

Stocks trade lower on Fed Day as oil prices spike

Stocks are in negative territory early Wednesday as oil prices jump. At last check, the blue-chip Dow Jones Industrial Average was down 1.2% at 52,105, the broader S&P 500 was off 0.4% at 7,400, and the tech-heavy Nasdaq Composite was 0.4% lower at 24,769.

After falling in recent sessions, front-month West Texas Intermediate crude futures have spiked 7.1% to $84.88 per barrel as Iran initiated "surprise attacks" against U.S. forces in the Middle East, according to a U.S. Central Command social media post.

Semiconductor stocks are also creating headwinds, with the iShares Semiconductor ETF (SOXX) down 1.8%.

- Karee Venema

What time will the Fed statement be released and what changes are expected?

The Federal Open Market Committee will release its updated policy statement at 2 pm Eastern Standard Time today, July 29.

"Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East," the FOMC stated in its scaled-back June statement. "Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little."

The committee reiterated its goal to deliver price stability as inflation remains above its 2% goal.

This time around, "the policy statement will likely lay out another mixed picture of inflation's drivers," says Bill Adams, chief U.S. economist at Fifth Third Commercial Bank. "On the one hand, good news from relatively tame house prices and rent increases, and from the dissipating impact of 2025's tariff hikes. On the other, bad news from rebounding energy prices as disruptions to Mideast and Russian exports resurface; new tariffs; AI-related pressure on electronics prices; and labor supply bottlenecks pushing up prices of services like home health care and nursing care."

Adams feels that if the FOMC or Fed Chair Warsh gives "even an inkling of guidance," it will be for a data-dependent approach to the September policy decision.

- Karee Venema

Why boring is an attractive option for investors right now

Brian Rehling, co-head of Global Fixed Income and Digital Asset Strategy at Wells Fargo Investment Institute (WFII), doesn't expect the Federal Reserve to raise rates at all this year.

But he does believe that if inflation remains above the Fed's 2% target, the central bank will keep the federal funds rate higher for longer. This makes the next few inflation reports critical ones for Wall Street.

In this environment, Rehling says that short-term fixed income is an attractive option for investors because it allows for attractive yields without interest-rate risk.

"Short-term Treasuries, certificates of deposit (CDs), and money-market funds may not be flashy, but they can do a lot of work in a portfolio when the Fed is focused on inflation and rates are likely to stay elevated," he explains. "Sometimes the boring part of the portfolio earns its keep."

- Karee Venema

Kevin Warsh's dilemma

All eyes are on the Federal Reserve today, and whether it will raise interest rates, or signal an intention to raise them later this year, to combat inflation that remains persistently above the Fed's own 2% target.

Unfortunately for Kevin Warsh, the central bank's new chair, much of the inflationary pressure hitting the U.S. economy comes from a source he can't do much about: High oil prices. The conflict in the Middle East has limited oil exports from the Persian Gulf and pushed U.S. retail gas prices up by about $1 per gallon since late winter.

As the fighting continues with no immediate resolution in sight, Warsh has got to be feeling like he's caught between a rock and a hard place. Raising interest rates won't ease the oil crunch, but it's the main tool the Fed has for slowing the economy to cool off inflation. So which will be the less-bad option in his view? We'll find out soon.

- Jim Patterson

What time does Kevin Warsh speak today?

Fed Chair Warsh will host a press conference at 2:30 pm Eastern Standard Time today, July 29.

"With little forward guidance to lean on, the statement language and Warsh's press conference will carry outsized weight," explain Jason Pride, chief of Investment Strategy & Research and Michael Reynolds, vice president of Investment Strategy at Glenmede. "Markets will be parsing both for any signal on how the Committee is weighing the balance between still-firm inflation and an economy that continues to hold up, offering the clearest read yet on its evolving reaction function."

The two don't expect a rate hike this afternoon as the central bank waits to see if the energy shock dissipates. "For markets, the greater near-term uncertainty is less about this meeting's outcome and more about learning how a Warsh-led Fed will communicate and react going forward," they conclude.

- Karee Venema

Stocks trade lower ahead of the Fed, bond yields rise

Blue chip stocks outperformed on Tuesday, but they're selling off on Fed Day. The Dow Jones Industrial Average was last seen down 1.4% at 52,033 as high-priced component Caterpillar (CAT) sinks 6% on a downgrade to Hold from Buy at Baird.

The S&P 500 is off 0.5% at 7,389 and the Nasdaq Composite is 0.5% lower at 24,759.

Over in the bond market, the 2-year Treasury yield is up 5.3 basis points at 4.33%. Yields on the 10-year Treasury note (+4.3 basis points at 4.647%) and 30-year note (+2.4 basis points at 5.121%) are higher, as well.

- Karee Venema

The Fed keeps rates unchanged in split decision

The Fed just announced that it is keeping its benchmark interest rate unchanged, in a range of 3.5-3.75%. In a terse statement, it noted that the economy is "expanding at a solid pace," but also acknowledged that inflation remains above its target of 2%, due in part to the situation in the Middle East causing energy prices to rise. "The Committee will deliver price stability," it declared, but with no details on how.

Worth noting, three voting members of the FOMC — Beth M. Hammack, Neel Kashkari and Lorie K. Logan — dissented from the no-change policy and voted to raise the Fed's rate by a quarter of a percentage point. Such dissensions have not been typical in recent years, raising questions about how long the Fed can maintain rates at their present level.

- Jim Patterson

Where can I watch Fed Chair Warsh's press conference?

Fed Chair Kevin Warsh's press conference will begin at 2:30 pm Eastern Standard Time this afternoon.

The presser can be viewed on the Federal Reserve's website or on the Fed's YouTube channel.

Who voted to raise rates?

The July Fed meeting decision was a split one, with three committee members voting to raise rates by a quarter-percentage point.

Cleveland Fed President Beth Hammack and Dallas Fed President Lorie Logan are considered to be the super hawks on the FOMC, while Minneapolis Fed President Neel Kashkari is hawkish, but less so than the other two.

There are two other moderate hawks on the committee — Fed Governor Michael Barr and Fed Governor Christopher Waller — who voted in favor of holding rates steady.

The seven remaining members are considered to be either dovish or middle-of-the-road.

- David Payne

September rate hike odds spike

Following today's split decision from the Federal Open Market Committee, futures traders are now pricing in a 72% chance the Fed will raise rates by a quarter-percentage point in September.

This is up from around 55% ahead of this afternoon's announcement and 30% odds one month ago, according to CME Group FedWatch.

- Karee Venema

The Fed has one inflation target, says Warsh

At the beginning of his prepared remarks, Chair Warsh acknowledged that inflation has been above the Fed's target level for five years now, and that that sustained period of inflation has taken a toll on consumers and businesses.

He was adamant that on his watch, the Fed is totally committed to returning inflation to its 2% target, and that there is no "soft" target higher than 2% that he and his colleagues would accept as good enough.

- Jim Patterson

Markets have done plenty to tighten financial conditions

In his prepared remarks, Warsh emphasized that he does not want the Fed to drop hints about what it might do with interest rates in the future.

He has already announced that the Fed won't be using such "forward guidance" as a policymaking tool. He wants the markets to "play the ball, not the referee," to use a sports metaphor, meaning that he wants the financial markets to determine things like the yields on Treasury bonds without trying to guess what the Fed will do with its benchmark short-term interest rate.

Yields on Treasuries have in fact risen since his first FOMC meeting, Warsh noted. "The markets have done quite a bit" to tighten financial conditions without the Fed acting.

- Jim Patterson

How close was today's FOMC vote?

"This is a period of watchful thinking, not watchful waiting," Warsh said, when asked how close the vote to keep the Fed's rate steady really was among his colleagues.

Some voting members of the FOMC were more or less firm about whether to keep rates steady as they try to determine where inflation is going, he said. The implication was that, while most of the FOMC members voted to not raise rates at this meeting, it was not a decision made on autopilot.

And given how emphatic he has been about assuring that the Fed will get inflation down to its 2% target, that certainly opens the door to interest rate hikes at coming Fed meetings.

- Jim Patterson

What will Warsh talk about at Jackson Hole? He's not sure yet.

Asked how he sees the speech he will give at the Fed's annual retreat in Jackson Hole, Wyoming, in August, Warsh joked that it looked like a blank piece of paper to him right now. In other words, while he noted that the annual Jackson Hole speech by the Fed chair is typically treated as an opportunity to set the stage for changes to monetary policy, he said he has not yet made any specific decisions about what he will be signaling next month.

Meanwhile, financial markets are showing strong odds of a Fed rate hike at its September meeting. So even if he doesn't know yet what he's going to say in August, Warsh will probably know exactly what markets and investors will be wondering about when he addresses them in Jackson Hole.

- Jim Patterson

The Fed should not hint at its plans outside of extreme circumstances, says Warsh

While he does not want the Fed to telegraph its policy moves in advance, and wants to let financial markets trade without trying to guess what it will do, he also says that the central bank does not want to surprise markets. And during times of severe turmoil, such as the 2008 financial crisis, he said the Fed should give markets ample guidance about what it is likely to do.

But outside of those extreme circumstances, he wants the Fed to pull back, let markets operate, and not put his thumb on the scale by giving hints about future rate changes. It remains to be seen how markets react to being told to operate without any hints on what the Fed is planning to do.

- Jim Patterson

Can the Fed chair avoid raising rates? Time will tell.

A final takeaway from Kevin Warsh's press conference is that the Fed chair appears to hope he can avoid raising short-term interest rates.

But others on the committee may not agree that changing inflation expectations and counting on rising long-term rates will do the job of reducing inflation.

September 16th (the next meeting), here we come.

- David Payne

War and AI drag on the Dow

Oil prices surged and the stock market's "fear gauge" spiked as the war between the U.S. and Iran escalated again on Wednesday, while even exponential growth for AI-related companies is letting down investors, traders and speculators.

The July Fed meeting ended where markets thought it would: with interest rates unchanged for the fifth straight time but central bankers worried about inflation and the energy shock.

By the closing bell, the tech-heavy Nasdaq Composite had shed 1.7%, the broad-based S&P 500 was down 1.5%, and the blue-chip Dow Jones Industrial Average had declined 2.2%.

Read more: Dow Drops 1,153 Points as Crude Pops on Fed Day: Stock Market Today

A September rate hike is possible, but far from a certainty, says Johnson Investment Counsel's chief economist

While the Federal Reserve held rates steady, as expected, the split decision underscores the concern several policymakers have over the persistence of inflation, says Brandon Zureick, chief economist and senior managing director at Johnson Investment Counsel. But throughout his press conference, Fed Chair Kevin Warsh reiterated the central bank's commitment to restoring price stability.

"Consistent with his preference for providing less forward guidance, however, Warsh offered few clues about the future path of monetary policy," says Zureick. "For now, attention will shift to the Fed's September meeting and the inflation data released between now and then."

The economist believes a rate hike could be considered at the Fed's September meeting if "the conflict with Iran continues through late summer and keeps energy prices elevated." On the other hand, he says that "a rapid reversal in energy prices could provide some welcome relief, giving policymakers more time to assess whether tighter monetary policy is warranted."

According to CME Group FedWatch, financial markets are pricing in a 63% chance the Fed will raise rates by a quarter-percentage point in September. This, says Zureick indicates "that investors see higher rates as a meaningful possibility, but far from a certainty."

- Karee Venema

To help you understand the trends surrounding business and technology and what we expect to happen in the future, our highly experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts. (Get a free issue of The Kiplinger Letter or subscribe.) You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here's the latest…

A pricing war is afoot among cutting-edge artificial intelligence vendors. Meta will jolt the competition with cheaper advanced AI tools for businesses from its new AI model, Muse. SpaceX’s latest Grok AI is built for efficiency and low costs, priced 60% cheaper than Anthropic. Microsoft is shifting from Anthropic and OpenAI to its own, cheaper internal AI tools for apps such as Excel and Outlook.

Meanwhile, cheaper Chinese AI models such as DeepSeek and Kimi are quickly gaining ground, though congressional investigations may lead to attempts to put curbs on the foreign tech. The latest version of Kimi, developed by Chinese company Moonshot AI, has sparked equal measures of excitement from U.S. customers and concern from leading American AI companies and federal officials. U.S. policy concerns include China’s massive government subsidies, intellectual property theft, cybersecurity risks and the general threat of Chinese competition.

The competition could put pressure on profit margins for AI leaders, which still must invest massive sums of money to develop and deploy leading tech. The latest Grok 4.5 model is a threat to Anthropic and OpenAI since it is a "'good enough,' fast, and super-cheap model," writes Neil Shah, analyst at Counterpoint Research, in a recent post. “Now enterprises have an attractive option, allowing them to optimize their AI spend before it spirals out of control.”

But there’s a catch for companies excited to see lower prices: Customers aren’t likely to save money because their AI use is rising so fast — AI is billed based on how much is consumed, which is far outpacing per-unit cost declines.

That remains true even as the long-term trends look promising for customers. Market research firm Gartner says a combination of efficiency improvements in chips, data centers, software and more will drive down prices. "By 2030, performing inference on a large language model with one trillion parameters will cost GenAI providers over 90% less than it did in 2025," according to their analysis from March.

Not all the savings will be passed on to customers, says Gartner, and cutting-edge agentic AI, which automates all sorts of computing tasks, consumes far more AI compute. "Agentic models, for example, require between 5-30 times more tokens per task than a standard generative AI chatbot," says Gartner. (Tokens are the units of data processed by AI. Companies are commonly billed by how many tokens they use.)

So what are companies going to do to reel in AI budgets? “Enterprises will learn and become prudent not to stick to one vendor or model,” according to Shah. That means that most complex tasks can be accomplished with the most expensive, best AI. Simpler tasks can be done with cheaper AI tools.

Gartner recommends that companies maintain a list of tasks that require high-end AI tools, train employees on how to reduce AI costs, post limits on individual token consumption and closely track AI usage.

This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.

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For many Americans, there's a disconnect between what's happening on Wall Street and how they're feeling about their personal finances.

The markets have remained resilient despite periods of volatility. But many people nearing retirement are worried about whether their money will last.

Much of that anxiety stems from inflation, which, for the first time in three years, is now outpacing wages.

That's why retirement planning shouldn't focus on cutting expenses, but rather on building a flexible income plan that can absorb higher costs over time.

Start with net income, not gross salary

Most people think they need to replace their full working salary when they retire. That's not necessarily true.

It's not just about replacing a paycheck. You need to replace the net income that supports your life today while accounting for some expenses that may go away or change in the future.

Instead of gross salary, start with your current net income. This will help you determine what you spend. Add up how much money is coming in each month and compare that to how much is going out.

Once you know what your income needs are, you can determine whether your current assets are enough, whether your retirement timeline needs to shift or whether your investment strategy should be adjusted.

Add a lifestyle and inflation cushion

One of the most overlooked tools to help combat inflation in retirement is the travel budget. Most retirees spend more on travel during the first part of their retirement and then gradually reduce that spending, whether that's owing to poorer health or simply wanting to spend more time around family.

Instead of viewing travel as a temporary expense, think of it as a built-in financial cushion for your retirement. An amount as small as 10% can provide flexibility if inflation rises faster than expected.

While that money may go toward dream vacations, new hobbies and experiences early in retirement, later on, those same dollars can be reallocated toward healthcare costs or other expenses.

Retirement spending categories shift rather than disappear. Because you know the money is there, the travel budget becomes less about leisure and more about being the buffer you need to feel confident in your plan.

A built-in buffer also helps retirees avoid overreacting to temporary market drops or cost increases.

Build the income plan around the gap

Retirement planning isn't only about how much you have saved in your portfolio. $1 million may be more than enough for one retiree but not enough for another. Your retirement depends on spending needs, income sources and your unique timeline.

Once you calculate your expected spending and account for guaranteed income sources such as Social Security or pensions, you can then identify the investment gap.

Your investment decisions should support your income needs. The strategy should be based on what you need your money to accomplish.

While some people may find out they need to work a few more years, many of the people we work with at Blue Ridge Wealth Planners are actually surprised to learn they may be able to retire sooner than expected. Income planning helps you make retirement decisions based on facts, not fear.

In conclusion

Unfortunately, inflation isn't something that you can avoid. It's always going to be a factor that you must account for when planning your retirement, but you don't have to let it eat away at your hard-earned savings. Remember:

• Inflation-proofing your retirement isn't just about investment returns
• It starts with realistic income planning and creating built-in cushions
• You then identify income shortfalls and fill in the gaps

Retirees who create room in their plan through travel budgets or spending cushions are often better positioned to handle rising costs. They can then enjoy a fulfilling and financially confident retirement.

Related Content

• I'm a Retirement Consultant: This Is the Single Most Important Planning Step I Learned After I Retired
• How to Plan for Retirement's Go-Go, Slow-Go and No-Go Years
• I'm a Financial Adviser: This Retirement Income Plan Could Be Your Key to Sweet Dreams
• The Middle Wealthy Are the Goldilocks of Retirement, But Where Do You Find the Financial Advice That's 'Just Right'?
• With Your Investments, Think Location, Location, Location

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Chances are, you've been with the same bank for years. After all, it's easier to stick with the checking account you have now than to switch to a new one. But every once in a while, it's worth looking at what else is out there.

Even if you're mostly satisfied with your current bank, you may find that a different one better fits your needs, whether with lower fees, higher interest rates, superior in-person services, or more-attractive premium account packages that layer on the perks as your wealth grows. Or you may choose to stick with your current institution for everyday banking and open a savings account or certificate of deposit at an online bank or credit union, taking advantage of high yields on your extra cash.

You'll find plenty of great options to consider here. With the help of LendingTree, which collects deposit-account information, we've analyzed interest rates, fees, balance requirements and other features of accounts at national banks, credit unions, online banks and regional banks, and we've named winners in each of those categories. We've also highlighted two institutions that may be strong choices for customers in each of four profiles: Retirees, high-net-worth clients, travelers and families with kids.

For regional banks, we chose one winner in each of four areas: The Northeast, the Midwest, the South and the West. Interest rates change frequently, so before you commit to any of these accounts, check the current yield. Yields and other terms listed here are as of early July.

Regional banks have between $10 billion and $100 billion in assets and serve specific areas. As a result, they often have more-personalized customer service than you may find with a national bank, and they often reinvest money into the community.

Best in the Northeast: ConnectOne Bank

Where it is: More than 60 locations across New York, New Jersey and South Florida.

Totally Free Checking is, as the name implies, free of monthly fees. It's a simple account, but it allows customers to send money via Zelle. Simply Better Checking also charges no monthly fee, and it reimburses up to $10 monthly in out-of-network ATM fees if you use direct deposit and maintain a $500 average daily balance.

Consumer Interest Checking yields 1.15% on balances of $1,000 or more, and it reimburses up to $10 a month in ATM surcharges if you use direct deposit and have an average daily balance of $1,000. (By keeping your balance at $1,000 or more, you'll also skip the $10 monthly fee.)

Among ConnectOne's savings options, Connect Money Market has a 2% yield, or 2.1% for balances above $25,000. It requires a $1,000 minimum opening deposit, and you need to maintain an average daily balance of at least $5,000 to avoid the $10 monthly fee. Connection Plus Savings offers a 3% yield on balances of at least $2,500, and the CDs come with a relatively low deposit requirement of $500. The four-month penalty-free certificate pays 4%.

Best in the Midwest: Old National Bank

Where it is: About 350 locations in Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, North Dakota, Tennessee and Wisconsin.

Old National has four popular checking-account options, including one for students and another for customers 50 and older. ONB Everyday Checking is the basic account for everyday needs, and a recent promotion offered a $600 bonus for signing up and making $12,000 in direct deposits in the first four months. The account comes with a $6.95 monthly fee, but you can get it waived with $500 in monthly direct deposits, a daily balance of $500, a $1,500 daily balance across all qualifying accounts with Old National, or 15 or more debit card transactions during the statement cycle.

ONB Preferred Checking offers free standard checks, and the bank won't charge you for the first five monthly transactions at out-of-network ATMs (but you may pay fees to the ATM operator). Preferred Checking has a $15 monthly charge, but it goes to zero if you have a daily balance of $5,000 in the account or $25,000 across all eligible accounts.

Old National offers a variety of savings options, including a savings account for kids. Among CDs, one with a four-month maturity recently had a 4% yield, with a $500 minimum deposit requirement.

Best in the South: FirstBank

Where it is: About 90 branches across Tennessee, Kentucky, Alabama, Georgia and North Carolina.

Essential Checking includes the basics for no monthly fee, while the free FirstRewards Checking pays a yield of 1.51% on balances up to $25,000 (0.55% on the portion of the balance higher than that) if you meet certain monthly requirements: making 10 debit card purchases, having one qualifying transfer into or out of the account, and receiving e-statements. The account also refunds out-of-network ATM fees.

Swipe Smart Checking, another free account, may make sense for people opening their first account or students who primarily use a debit card (the account doesn't offer paper checks). Other checking accounts include USA Checking for Seniors, for those 62 and older, and Interesting Checking ($8 monthly fee if your balance falls below $1,000), offering a yield of 0.41% on balances of $1,000 to $24,999, 0.45% on balances of $25,000 to $49,999, and 0.5% on higher balances.

For savers, FirstBank's options include FirstUp Savings, yielding 3.82% on up to $25,000. The bank waives the $5 monthly fee if you have a minimum balance of $50. The six- and 30-month CDs ($500 minimum deposit) yield 3.8%, and the Consumer Fed Funds Money Market account recently paid 1.46% on balances up to $99,999, and 2.93% on higher balances (you avoid the $10 service fee if you have an Essential Checking account or keep at least $100,000 in the money market account).

Best in the West: WaFd Bank

Where it is: More than 200 branches across Arizona, California, Idaho, Nevada, New Mexico, Oregon, Texas, Utah and Washington.

Free Checking is WaFd's basic checking account, and Rewards Checking is an elevated version that comes with a $6 monthly fee in exchange for perks such as a discount of 5 cents per gallon on gas at Shell stations, cell phone insurance, free access to the Greenlight program for managing money with kids, and a credit-monitoring service.

Premium Rewards Checking has a $9 monthly fee but comes with more benefits, including dark-web monitoring, 24/7 roadside assistance and telehealth services. Interest Checking offers those benefits plus a yield as high as 0.25% (on balances of $250,000 or more). It waives the $12 monthly fee if you have a $5,000 average daily balance or $50,000 across eligible accounts with WaFd.

WaFd's Savings account, yielding 0.1% on balances of at least $100, is free for minors; otherwise, you can avoid the $3 monthly fee by maintaining a balance of at least $100. Start Savings offers a 5% yield on a balance up to $500, 2.47% on the portion of the balance between $500 and $1,000, and 0.1% on larger amounts. (To open this account, you must have a WaFd checking account.)

If you're looking for better yields on big balances, check out the money market accounts, such as the High Yield Money Market (yielding as much as 2% on $500,000 or more) and CDs. Recently, a certificate with a seven- or 13-month maturity yielded 4% ($1,000 minimum deposit).

Use the Bankrate tool below to connect with a financial professional who can help you build a strategy to reach your personal finance goals:

Methodology

With data from LendingTree, which collects deposit-account information, as well as from financial institutions and other sources, we evaluated national banks, credit unions, online banks (including online accounts from brokerage firms) and regional banks. We reviewed checking accounts, savings accounts, money market deposit accounts and certificates of deposit.

We looked at features including interest rates; minimum deposit and balance requirements; monthly maintenance fees and the ease of waiving those fees; ATM benefits, such as waived or reimbursed fees for out-of-network withdrawals; free or discounted benefits, such as personal checks, cashier's checks, paper statements and overdraft-protection transfers; overdraft fees; and online and mobile banking features, such as the availability of peer-to-peer payment services. Yields and other data listed in the article are as of early July.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

More Best Banks

• Best National Banks
• Best Credit Unions
• Best Online Banks
• Best Banks for Retirees
• Best Banks for High-Net-Worth People
• Best Banks for Travelers
• Best Banks for Families with Kids

Chances are, you've been with the same bank for years. After all, it's easier to stick with the checking account you have now than to switch to a new one. But every once in a while, it's worth looking at what else is out there.

Even if you're mostly satisfied with your current bank, you may find that a different one better fits your needs, whether with lower fees, higher interest rates, superior in-person services, or more-attractive premium account packages that layer on the perks as your wealth grows. Or you may choose to stick with your current institution for everyday banking and open a savings account or certificate of deposit at an online bank or credit union, taking advantage of high yields on your extra cash.

You'll find plenty of great options to consider here. With the help of LendingTree, which collects deposit-account information, we've analyzed interest rates, fees, balance requirements and other features of accounts at national banks, credit unions, online banks and regional banks, and we've named winners in each of those categories. We've also highlighted two institutions that may be strong choices for customers in each of four profiles: Retirees, high-net-worth clients, travelers and families with kids.

These institutions offer specialized accounts for young people as they learn the ropes of spending and saving, as well as tools for parents to help manage and monitor the accounts.

Interest rates change frequently, so before you commit to any of these accounts, check the current yield. Yields and other terms listed here are as of early July.

Bank of America

Where it is: About 3,600 branches in 38 states and Washington, D.C. (Rates and terms are for customers in Charlotte, N.C.)

For families who want to take their kids to a local branch to learn about banking, Bank of America is a good bet, with locations in most states. And it offers a couple of its Advantage accounts with families in mind; both have no monthly maintenance fee for those younger than 25 and charge no overdraft fees.

The parent-owned SafeBalance for Family Banking checking account, designed for elementary and middle-school children, lets your kids use a debit card, but you can monitor their spending, get alerts when they make purchases, and lock and unlock the debit card. Children 6 and older can log in to their account online to view balances and monitor transactions, but they can't deposit or transfer money.

Teens and young adults can use the SafeBalance Banking checking account, which parents co-own. Starting at age 16, a teen can become the sole owner of the account. Account holders can make deposits and transfer money online, and those 13 and older can send and receive money with Zelle.

For account owners younger than 25, Advantage Savings charges no monthly fee. It yields 0.04%.

Capital One

Where it is: About 250 branches in a handful of eastern and southern states and Washington, D.C.

Children 8 and older can jointly own Capital One's online MONEY Teen Checking account with their parents. The account has no monthly maintenance fee or minimum deposit requirement, and it offers a yield of 0.1%.

Kids get a debit card, which parents can lock or unlock, and you can monitor their transactions with your own account login. You can make transfers into the MONEY account from your own checking account, regardless of whether your account is with Capital One or another institution.

Capital One also offers the no-fee, no-minimum Kids Savings Account, with a 2.5% yield. You can open multiple accounts for various savings goals.

Planning for retirement while raising a family isn't easy. A financial advisor can help you balance today's expenses with tomorrow's goals.

Use the Bankrate tool below to connect with a financial professional and get started:

Methodology

With data from LendingTree, which collects deposit-account information, as well as from financial institutions and other sources, we evaluated national banks, credit unions, online banks (including online accounts from brokerage firms) and regional banks. We reviewed checking accounts, savings accounts, money market deposit accounts and certificates of deposit.

We looked at features including interest rates; minimum deposit and balance requirements; monthly maintenance fees and the ease of waiving those fees; ATM benefits, such as waived or reimbursed fees for out-of-network withdrawals; free or discounted benefits, such as personal checks, cashier's checks, paper statements and overdraft-protection transfers; overdraft fees; and online and mobile banking features, such as the availability of peer-to-peer payment services. Yields and other data listed in the article are as of early July.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

More Best Banks

• Best National Banks
• Best Credit Unions
• Best Online Banks
• Best Regional Banks
• Best Banks for Retirees
• Best Banks for High-Net-Worth People
• Best Banks for Travelers