Stocks closed higher Wednesday, though gains were contained as Treasury yields held near recent highs. Market participants also weighed weak private payrolls data, which arrived ahead of this Friday's all-important August jobs report.

At the close, the blue-chip Dow Jones Industrial Average was up 0.6% at 53,061, the broader S&P 500 was 0.5% higher at 7,666, and the tech-heavy Nasdaq Composite gained 0.5% to 26,217.

Easing Treasury yields provided some relief on Wall Street today. The yield on the 2-year Treasury hit its highest level since mid-2024 in intraday trading, but ended the session down 2.3 basis points at 4.371%. Likewise, the 10-year Treasury yield topped out at a nearly three-year peak before settling down 1.6 basis points at 4.78%.

"Today's weaker-than-anticipated ADP employment report, paired with market-friendly commentary from New York Fed President John Williams and Treasury Secretary Scott Bessent, is halting bond pain and driving bargain hunters into equities," says José Torres, senior economist at Interactive Brokers.

The ADP report showed the U.S. added 38,000 private payrolls, below the 46,000 economists expected and the lowest level since January. This, says Torres, signals "an increasingly fragile labor market that may prevent the U.S. monetary policy authority from hiking rates more than once."

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Meanwhile, New York Fed President John Williams, who, because of his position, is a permanent voting member of the Federal Open Market Committee (FOMC), told CNBC that the central bank just needs to "wait and see" on interest rates.

While the regional Fed president said that inflation data have "been encouraging," he added that "there's no clear signs right now whether monetary policy currently is sufficient to make sure we bring inflation back to target."

According to CME Group FedWatch, futures traders are currently pricing in a 62% chance the Fed will raise the federal funds rate by a quarter-percentage point when its September policy meeting wraps up two weeks from today — up from 37% one week ago.

Credo Technology plunges 20% after beat-and-raise quarter

In single-stock news, Credo Technology Group (CRDO) plunged 20% — the tech stock's worst day since January 2025 — after the high-speed digital connectivity and semiconductor solutions specialist reported earnings.

For its fiscal 2027 first quarter, CRDO reported better-than-expected earnings and revenue. It also raised its full-year revenue growth outlook.

But Wall Street may have been looking for a more substantial fiscal Q2 revenue forecast, with Credo guiding for $525 million to $535 million — only matching analysts' estimates at the midpoint.

Still, William Blair analyst Sebastien Naji says the fiscal Q1 print was "clean," and he expects "a strong inflection through the second half as the company ramps up toward its more than $600 million optical revenue target while benefiting from expanding AEC [Active Electrical Cable] engagements and the transition to 100G/200G per lane solutions."

Phillips Edison hikes its monthly dividend payout

Phillips Edison & Company (PECO), which operates grocery-anchored shopping centers, rose 0.8% today after the real estate investment trust (REIT) raised its monthly dividend payout by 6.2% to 11.5 cents per share. This works out to an annualized rate of $1.38 per share.

PECO has been a reliable dividend grower, having increased its annual payout in each of the past six years. This latest hike also marks its third consecutive increase of over 5%.

Why is dividend growth important?

"Shares in companies that raise their payouts like clockwork decade after decade can produce superior total returns (price change plus dividends) over the long run, even if they sport apparently ho-hum yields to begin with," explains Kiplinger contributor Dan Burrows in his feature on the best dividend stocks for dependable growth. "That's partly because regular dividend increases lift the yield on an investor's original cost basis. Stick around long enough, and the modest yield you received on your initial investment can hit double digits one day."

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"Labor markets are quite stable," said Federal Reserve Chair Kevin Warsh last Friday in his keynote address at the Jackson Hole Economic Symposium. He pointed to the unemployment rate, which, at 4.1%, "remains low by historical standards."

And while recent monthly jobs reports have been weaker than expected, the Fed chair explained that employment gains are "naturally going to run low" in a labor market that is "consistent with full employment."

Those recent reports showed the U.S. lost 23,000 jobs in July, falling well short of estimates for the addition of 85,000 positions. Additionally, job growth for May and June was downwardly revised, resulting in 103,000 fewer jobs than previously reported.

So what does this mean for August? We'll find out on Friday morning when the monthly data is released. But David Payne, staff economist at The Kiplinger Letter, writes in the Kiplinger jobs outlook that "the new normal for jobs reports going forward is likely to be gains of fewer than 100,000, rather than additions in six digits."

ADP jobs report came in lower than expected

Wall Street got a peek at how things are going in the labor market on Wednesday morning with the ADP National Employment Report, which showed private payrolls rose by 38,000 in August, less than the 46,000 added in July and below the 47,000 economists expected.

The industries seeing the largest increases in jobs were education, health care, leisure and hospitality, and construction, while manufacturing saw the biggest decline in positions.

When is the next jobs report?

The Bureau of Labor Statistics will release the next jobs report at 8:30 am Eastern Standard Time on Friday, September 4. Economists expect the U.S. to have added 58,000 new jobs in August and the unemployment rate to remain at 4.1%.

Ahead of the August jobs report, we looked at what economists, strategists and other experts on Wall Street expect the data to show and what the results could mean for the Fed and investors going forward. You'll find these outlooks, edited at times for brevity, below.

What Wall Street expects from the August jobs report

"Immigration policy changes likely held back payrolls growth in August. The government cancelled Temporary Protected Status for Haitians in the United States on July 27, which most accounts project affected over 300,000 TPS holders — also ending their work authorization. The soft ADP report highlights downside risk to the government's August jobs report. Fifth Third Commercial Bank forecasts a below-consensus 25,000 drop in payrolls in that report, which may pick up a larger effect from the TPS cancellation. The unemployment rate is forecast to hold steady at 4.1% as the labor force contracts, continuing its recent trend — the labor force is down by 1.3 million workers in the twelve months through July as more older workers retire and fewer graduates and immigrants take their place." - Bill Adams, Chief U.S. Economist, Fifth Third Commercial Bank

"We expect nonfarm payroll growth to rebound to 80K in August. July's drop in employment overstates the degree of labor market cooling, in our view, with outsized declines in leisure & hospitality and state & local government education accounting for much of the downside surprise. We look for partial reversals in both industries this month. More broadly, alternative indicators suggest job growth has stabilized, rather than continuing to deteriorate." - Wells Fargo economists

"When we triangulate across all the labor market data that will be released this week, we're expecting that the labor market will be room temperature, rather than boiling or frozen. And that would be good news for the Fed. We are still baselining the Fed to remain on hold this year, but if job creation were to come in significantly hotter than consensus expectations (e.g. more than double), that might cause the Fed to give more consideration to rate hikes if inflation does not cooperate." - BeiChen Lin, Senior Investment Strategist and Head of Canadian Investment Strategy at Russell Investments

"Warsh's Jackson Hole speech reinforced that the Fed's focus remains on inflation. Payrolls are unlikely to be the deciding factor for a September hike. We expect August payrolls to rise 40k, below consensus but consistent with another seasonally soft summer report. The unemployment rate should remain 4.1%, though a rebound in participation could push it to 4.2%. A significantly weaker report could lower hike odds, but CPI remains the key release for determining whether the Fed follows through. We hold our call for a September hike." - BofA Securities economists

"The labor market is pretty benign right now. The jobless rate is historically low and has remained that way for a few years, and unemployment claims are near their lowest level in decades, so there's a strong argument to be made that the Fed has accomplished its mission on the employment front, and can now continue to pay more attention to inflation. Our message to investors is to focus on commodities, such as oil, gold and silver, as we're in an environment where interest rates may remain higher for longer. As commodity prices continue to move higher, it's important to have an allocation to those assets, and many investors do not." - Michael Landsberg, Chief Investment Officer at Landsberg Bennett Private Wealth Management

"U.S. payrolls could shed more light on how supply constraints are shaping the labor market. Slower labor-force growth means softer job gains may not signal materially weaker demand, especially as AI-related investment supports activity. That combination could keep wage and inflation pressures persistent." - BlackRock Investment Institute

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Traditional employer-paid pensions, once the gold standard for retirement security, have played an important role in providing retirees with predictable, monthly income for life. But that's changing fast. About 52% of people 65 and older have a pension, but only 5% of those under age 25 do, according to the Federal Reserve. Younger generations must rely on 401(k)s and individual retirement accounts (IRAs).

Traditional pensions remain a key source of retirement income for federal, state, and local workers (retirees with public pensions), and Americans who work at the dwindling number of companies that offer pensions. "If you have a pension, it gives you peace of mind," says Christian Weller, professor of public policy at the University of Massachusetts Boston.

The power of a pension

Why do retirees love pensions? Your employer invests for you and later funds your pension payment. More importantly, the monthly checks are guaranteed for life, providing a steady stream of income retirees can count on (for the most part), no matter what the economy or financial markets are doing.

"For many households, especially those with limited assets, the presence of predictable lifetime income appears to be closely associated with greater financial stability," says Leslie Muller, senior research associate at the Employee Benefit Research Institute (EBRI). A 2026 EBRI report found that access to guaranteed income streams, such as pension income, plays a key role in helping retirees preserve assets and manage financial shocks later in life.

Monthly pension checks, coupled with monthly Social Security benefits, can help cover essential monthly expenses during retirement. "Pensions are a critical part of a retiree's lifetime income," says Karen Friedman, executive director of the Pension Rights Center. With inflation high and the cost of living taking up a larger share of workers' wages, Friedman says it's getting harder for workers to save for retirement.

While pension checks won't cover your entire salary, those monthly benefits can still offer much-needed income.

There are a number of factors that determine the size of a pension’s monthly benefit. The typical pension formula takes into consideration the number of years you worked at the company, your final average salary, as well as the so-called accrual rate, or how much pension benefit is earned for each year of service. So, the longer you work for a company and the more money you make, the higher your pension benefit will be.

How much is the typical monthly pension benefit check?

Here is the most recent data available on median pension benefits from the Pension Rights Center, a non-profit, non-partisan organization that protects and promotes workers' retirement security.

The amount beneficiaries receive varies by pension type. And in the broad categories noted above, median monthly benefits range from $953 to $2,776. What's important to remember is this monthly benefit can't run out and will be paid out for your entire life. "You can count on that money," says Weller. "That’s a deal that people know and understand. And they don’t have to worry about it."

Those monthly pension benefits compare favorably to the average Social Security benefit of $2,086 per month for retired workers, based on Social Security Administration data.

Weller says another key benefit of a pension is that it provides automatic retirement security without requiring workers to make a series of complex savings and investment decisions.

Private-sector pensions are also insured by the Pension Benefit Guaranty Corporation (PBGC), which pays benefits up to certain limits if a company goes bankrupt and can't fulfill its pension payment obligations. The PBGC caps the maximum monthly benefit, which varies based on the age at which benefits begin. (Religious institutions are not required to insure their pensions and may face shortfalls.)

And with the average 401(k) balance at just $141,000 at the end of March 2026, according to Fidelity Investments, future retirees with guaranteed income streams from both Social Security and a pension will be in far better financial shape in their golden years.

Like Social Security, pensions also offer spousal and survivor benefits, creating even more financial security for married couples.

The average monthly public pension benefit by state

Where you live also affects how much your monthly pension check will be, according to a state-by-state analysis by the National Institute on Retirement Security (NIRS).

These figures are from 2024, the most recent available data, and cover public pensions, which tend to be higher than private ones.

Source: National Institute on Retirement Security (NIRS) /AARP/NRTA, data through 2024.

Monthly benefits vary widely, from Connecticut's average monthly check of $3,808 to Indiana's $810.

How much of a beneficiary's pre-retirement pay the pension replaces also varies, ranging from 30% to 75%. NIRS data show most pensions cover 50% or 60%.

Keep in mind, however, that most private pensions do not account for inflation with a cost-of-living adjustment (COLA), so your actual purchasing power can diminish significantly over the years.

If you live in one of the 16 states that do not tax pension income, you'll be able to hold onto more of your pension payout.

The big decision: Lump sum or monthly payments?

Often, pension beneficiaries can take a lump sum instead of a monthly benefit, but experts say doing so means missing out on lifetime income and potentially mismanaging the lump sum and running out of money.

"If you have a pension and take the monthly benefit, it can’t run out," says Friedman. "You don’t have to worry about outliving your benefits or managing a lump sum. And the truth is, when retirees get into their 70s, 80s, and 90s, who wants to be figuring out how to invest money?"

For workers who are weighing taking a lump sum over a monthly check, it’s important to do an analysis to see how it impacts retirement security over the long haul, says Brian Donohue, partner at October Three, a pension consulting firm. "People have to run the numbers," says Donohue.

Read More on Average Retirement Savings

• Average 401(k) Balance by Age in 2026
• Average IRA Balance by Age and Generation in 2026
• Average Retirement Savings by Age
• Average Social Security Check by Age

The road to retirement is filled with potential missteps, but one of the most serious — affecting how you live your golden years if you aren't careful — is being too conservative with your retirement investments. It's the biggest mistake Mellody Hobson, co-CEO and president of Ariel Investments, sees retirees and pre-retirees make all the time.

"People think they are winning by not losing when over time it's not outpacing inflation," Hobson told Kiplinger.com in an exclusive interview. "You need your money for years, and the only way for it to grow is to have equities. People pull back too fast, too soon." Pre-retirees, especially those nearing retirement, are guilty of the same mistake, says Hobson. They see the off-ramp getting closer, and they get conservative too quickly.

A healthy mix of equities and fixed income wins the race

Hobson isn't advocating for retirees to be super aggressive with their retirement investments either. She says retirees should have a well-diversified nest egg that outpaces inflation and can last for what may be 30 years in retirement. After all, at last check, the life expectancy for women in America is 81.4 and 76.5 for men, but people live well past that.

If you are a retiree, or pre-retiree who has gotten too conservative, don't panic; you can fix your mistake. But don't go crazy buying stocks all at once. Either work with a financial adviser to allocate more of your portfolio to equities or consider dollar-cost averaging over six months or a year, says Hobson. This strategy involves investing a fixed amount of money at regular intervals, regardless of how the markets perform.

Beyond dollar-cost averaging, another way to protect your portfolio is the bucket approach to spending, with one bucket for short-term needs, one for medium-term needs, and one for long-term needs. You invest the money in the long-term bucket in growth-oriented stocks.

Hobson's runner-up mistakes

Beyond being too conservative, Hobson sees other mistakes retirees make that can quickly derail their retirement, and two big ones are taking a lump-sum payout from their 401(k) when they retire and supporting adult children at their expense.

Take the lump-sum payout for starters. Hobson isn't saying retirees shouldn't enjoy their hard-earned retirement savings; quite the contrary, but she does think taking a lump-sum payout means less money growing and compounding to live off later. They could also face a big tax hit if the withdrawal comes from a traditional 401(k), which is treated as ordinary income.

"We have this impulse to buy something, to use that money for a boat, vacation, or something, but that money has to be for the long term," says Hobson. "You don't have to buy the boat; you can go on a boat trip. You have to resist the impulses because ultimately you sacrifice your long-term financial security."

As for supporting adult children in retirement, Hobson says it's become an epidemic in recent years and, if left unchecked, can severely impact a retiree's financial security. "You have to get very serious about family members standing on their own two feet, or come up with some kind of clear expectation about what the support needs are long term," says Hobson. Retirees have to "take the training wheels off."

It's never too late

Whether you are being too conservative, indulging a little too much, or feeling like an enabler to your adult children, the good news is that it is never too late to correct course.

That is the message Hobson wants everyone to walk away with. Just because you are in retirement doesn't mean you can't make changes, and they don't have to be big, grand gestures. They can be small bites that add up over time.

"Don't give up on the opportunity at the point of retirement," says Hobson. "You are still working toward financial security. There is no real finish line."

Editor's note: This article is part of an ongoing series in which we ask influential personal finance figures to share their opinion on the biggest retirement mistake you can make. Other articles feature Suze Orman, Dave Ramsey, Grant Cardone, Ramit Sethi and Farnoosh Torabi.

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I grew up hearing that a wise person never puts all their eggs in one basket.

Even as a young child in Paris, I practiced it before I fully understood it. When 20 French francs came my way, a few went into the piggy bank, a few were set aside for gifts for my family, and the rest bought trading cards of my favorite soccer players.

When I began as a quantitative analyst in the early 2000s, I discovered the science behind that proverb in Harry Markowitz's 1952 paper Portfolio Selection. Markowitz showed that successful investing isn't just about choosing the right eggs — it's about choosing the right baskets.

Portfolio risk depends less on what each holding does alone than on how the holdings move together.

That insight inspired the modern 60/40 portfolio, the stock-bond mix that has long been the standard of diversification for retirement savers. However, today, both baskets are becoming less effective diversifiers than many investors realize.

Let's look at equities

On the equity side, if you own an S&P 500 index fund, you probably think you're spread across 500 different companies. While that is technically the case, a small group of stocks has an outsized influence on your returns.

Semiconductor stocks reached a record 19.7% of the S&P 500 at the end of June, up from around 5% in mid-2020 and more than double the dot-com peak. That data comes from Citadel Securities strategist Scott Rubner via Yahoo Finance.

Our research at V-Square Quantitative Management has revealed a striking reality: The S&P 500 now provides diversification closer to holding roughly 50 equally weighted names than 500.

That's why it's important to "know your benchmark" and understand what you actually own. If the stock portion of your portfolio is increasingly driven by the fortunes of just a handful of companies, the traditional promise of a well-diversified 60/40 portfolio starts to break down.

Now let's look at bonds

The bond side of the portfolio faces a different challenge. The 60/40 has historically worked based on a simple idea: When stocks are down, bonds would help offset the losses.

However, that assumption has become less dependable. Investors learned this the hard way in 2022 when both asset classes fell together, resulting in one of the worst years ever for a traditional balanced portfolio. According to Morningstar data:

• The S&P 500 fell 19.4%
• The core bond index lost 12.9%, its worst year on record
• A benchmark 60/40 blend dropped 15.3%

Recent research from State Street also suggests stocks and bonds are more correlated than they have been during much of the past decade.

The result is that investors can no longer assume the bond allocation will provide the same level of diversification it once did, making the traditional 60/40 portfolio less resilient during periods of market stress.

What's the problem?

The problem isn't that investors own too few assets, it's that many of those assets are exposed to the same risks. In other words, there may be plenty of eggs, but not enough baskets, and investors need to look elsewhere for diversification.

Real assets have spent 2026 making their case. The Bloomberg Commodity Index returned 14.4% in the first half of the year, one of its strongest starts on record.

At the same time, the FTSE Nareit All Equity REITs Index gained 14.4% through late June, outperforming the S&P 500, while also offering a 3.7% dividend yield.

When several real asset classes are performing well at the same time, it suggests they're being driven by long-term trends rather than a single short-term market event.

Part of what makes real assets appealing is how entrenched they are in everyday life. They include the toll bridge you crossed this morning, the airport you flew through last month, the nursing home caring for a parent, the data center powering every online search, the copper in your home's wiring and the gold stored in vaults.

Their cash flows come from real things like tolls, leases, rents and regulated utility rates, rather than the earnings of technology companies.

Growing demand for physical assets

Ironically, the same AI buildout that has made the stock market more concentrated is also creating enormous demand for these physical assets. The International Energy Agency projects that electricity use from data centers will roughly double by 2030 after growing 17% last year, nearly six times the pace of overall demand.

Every new AI model needs power plants, transmission lines, land, cooling systems and critical minerals to operate. Investors who own the S&P 500 participate in the companies designing AI chips and software, but much of the infrastructure making that growth possible sits outside the index. Owning those assets can provide exposure to a different set of return drivers.

There are several ways individual investors can add real assets to a portfolio. The simplest is through low-cost index funds and ETFs, which generally fall into four categories:

• Commodities, which invest in raw materials like energy and metals
• Natural resources, which own the companies that produce those materials
• Infrastructure, which invests in assets such as toll roads, airports, pipelines and utilities
• REITs, which own income-producing real estate including warehouses, data centers and housing for older people

Rather than betting on a single asset like gold, investors may benefit more from owning a diversified mix of these sectors because each tends to respond differently to changes in the economy.

One final consideration is taxes. REIT dividends are generally taxed as ordinary income, and many broad commodity funds can be less tax efficient than traditional stock funds, making them good candidates for an IRA or other tax-deferred account when possible.

The bottom line

Real assets are not a substitute for stocks and bonds, nor are they immune to volatility. Bloomberg's midyear review notes the commodity index finished June 14% below its May peak, so anyone who bought after the rally quickly experienced the downside.

Investors should establish a target allocation they're comfortable holding through different market environments, rebalance periodically and resist the temptation to chase whichever asset class is leading at the moment.

In 1952, Harry Markowitz gave mathematical form to the advice I heard as a child. More than 70 years later, that principle still holds: Diversification is about putting your eggs in different baskets.

The question for today's investors is whether the baskets they own truly answer to different economic forces.

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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.

As wealth grows, financial decisions often become more complex. For many investors, most wealth is invested rather than held in cash, creating liquidity challenges when funds are quickly needed.

Whether funding a home renovation, purchasing real estate, pursuing a business opportunity or addressing a short-term liquidity need, many investors assume they need to sell investments to access cash.

In some situations, that may be the right answer. In others, borrowing against a portfolio through a securities-based line of credit (SBLOC) may help preserve the integrity of a long-term financial plan while providing the liquidity needed today.

An experienced adviser, guided by a thoughtful and carefully constructed financial plan, can help determine when an SBLOC may make sense, when it may not and how to use it effectively while keeping the broader financial plan intact.

How an SBLOC works

Many affluent investors have substantial assets but limited readily available cash. When a significant expense or opportunity arises, selling investments may generate capital gains taxes, disrupt asset allocation or reduce exposure to future market growth.

An SBLOC allows investors to borrow against eligible assets in their investment portfolio without selling the underlying securities.

As a revolving line of credit, it provides flexible access to cash while allowing investments to remain part of a long-term strategy.

Because the loan is secured by investments, borrowing terms may differ from unsecured lending options.

SBLOCs are often used to address short-term liquidity needs, fund major purchases or serve as a source of readily available borrowing capacity. As a non-purpose loan, proceeds can be used for many personal or business needs, but typically can't be used to purchase, carry or trade securities.

The amount available to borrow depends on the type and value of the assets pledged as collateral, which are typically held in eligible taxable investment accounts rather than retirement accounts.

When borrowing against your portfolio might make sense

Securities-based lending is not a one-size-fits-all solution, but it can be an effective planning tool in several scenarios:

Bridging a short-term liquidity need. A common use case is when an investor needs cash today but expects funds in the near future.

For example, someone might be awaiting proceeds from the sale of a business or property, an annual bonus or another expected source of funds. Rather than selling investments, SBLOCs could provide temporary financing until those funds arrive.

Funding major purchases or opportunities. Real estate purchases, business investments or other large expenditures may arise when market conditions are favorable. In these situations, an SBLOC may provide flexibility and speed while allowing the investor to keep their investments intact.

Securities-based lending is commonly used for purposes such as real estate financing, business financing, tax obligations, education expenses and other significant purchases.

Avoiding unnecessary liquidation. Selling investments to raise cash can disrupt a long-term strategy and create unintended tax or market consequences. Beyond potential taxes, investors may find themselves out of the market during periods of strong performance.

An SBLOC may help maintain exposure to long-term growth opportunities while addressing immediate cash needs.

When borrowing against your portfolio may not make sense

Securities-based lending can be a valuable tool, but it's not appropriate for every situation.

Long-term spending needs. Using borrowed funds for ongoing lifestyle expenses warrants careful consideration. An SBLOC may be more effective as a source of strategic, temporary liquidity than as a permanent solution to recurring cash-flow challenges.

For long-term spending needs, selling assets or pursuing other financing options may be more appropriate.

When market volatility would create discomfort. Borrowing capacity is tied to the value of the pledged investments. If the value of pledged securities declines, the lender may require additional collateral or repayment of a portion of the loan.

If those requirements are not met, the lender may sell pledged securities, potentially on short notice and without advance consultation regarding which assets are sold. Investors who are uncomfortable with those possibilities may prefer other sources of financing.

When rising borrowing costs could be a concern. While SBLOCs can offer competitive borrowing rates, they typically feature variable interest rates and may involve interest-only payments.

As interest rates change, borrowing costs can increase, potentially affecting cash flow and the overall cost of financing. Investors should understand how rate fluctuations could affect their repayment strategy before establishing an SBLOC.

When repayment is unclear. As with any borrowing strategy, there should be a clear understanding of how the debt will be managed and repaid. An SBLOC should be evaluated within the context of a comprehensive financial plan, not simply because borrowing capacity exists.

Why professional guidance matters

Effective use of securities-based lending often involves guidance from banking, lending and wealth management professionals who understand the client's broader financial picture.

An adviser can help evaluate questions such as:

• Is borrowing more advantageous than selling securities?
• What are the potential tax considerations?
• How does the loan affect overall cash flow?
• How might different market scenarios affect the pledged portfolio?
• Does the strategy support long-term financial goals?

An SBLOC is more than a lending solution. It's a financial planning decision that should be evaluated within the context of an investor's broader goals.

A tool, not a shortcut

Accessing cash doesn't always require selling investments. For some investors, an SBLOC can provide liquidity while preserving a long-term investment strategy.

But as with any financial tool, it should be used intentionally, with a clear understanding of both its benefits and its risks.

When incorporated into a comprehensive wealth strategy and guided by experienced advisers, borrowing against a portfolio may help investors pursue today's opportunities without losing sight of tomorrow's goals.

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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 we talk about financial literacy, the conversation almost always runs in one direction: How to budget, how to manage debt, how to start investing. These are the right lessons to teach, and we should keep teaching them.

But after more than three decades working in retirement services, I've come to believe we're missing a critical and significant part of the story. We spend enormous energy teaching people how to build savings and comparatively little teaching them how to hold on to what they've saved.

I'd go further: Preservation isn't just a neglected topic within financial literacy — it may be the best evidence we have of whether or not financial literacy is actually working.

Budgeting and investing are skills a person can learn in a classroom. Preservation is what happens later, out in the world, when that knowledge gets tested against a job change, a cash crunch or a moved-and-forgotten retirement account. It's less a lesson than a track record.

What's at stake?

Consider what actually happens over the course of a career:

• A worker leaves a job and is handed a check for their 401(k) balance instead of rolling it into a new plan or an IRA
• A saver facing a cash crunch takes a hardship withdrawal and, once the crisis passes, never rebuilds what was taken out
• Someone borrows against their retirement savings account and then changes jobs before the loan is repaid, triggering taxes and penalties on what's left outstanding
• A small account from a job held a decade ago simply sits forgotten, never consolidated, never growing, until the person who owns it loses track of it entirely

None of these moments feels dramatic when it happens. A cashed-out check for a few thousand dollars doesn't feel like it's undoing years of discipline. But that's exactly what it's doing.

Money withdrawn from a tax-advantaged retirement account doesn't just disappear from a balance sheet — it disappears from the compounding process that makes retirement savings work in the first place.

A $5,000 withdrawal at age 30 is not a $5,000 loss by age 65. Depending on market returns, it can be tens of thousands of dollars in lost growth. Multiply that across a career in which the average worker changes employers roughly a dozen times, and the scale of the problem comes into focus.

According to the Employee Benefit Research Institute (EBRI), about $92 billion in savings was lost through premature cash-outs in 2015 alone.

The damage is greatest for the savers who can least afford it — younger workers, lower-income workers and workers of color, who are disproportionately likely to hold the small balances most at risk of being cashed out.

The problem with 401(k) rollovers

Here's the uncomfortable part: This usually isn't a failure of literacy at all. It's a failure of infrastructure. A worker who changes jobs and wants to roll over a small balance is, in most cases, on their own — filling out paper forms, making phone calls and coordinating between two institutions that have no standard way of talking to each other.

Faced with that friction on the way out the door of a job they're leaving, most people take the path of least resistance. That path is usually a cash-out.

Behavioral research backs this up: Defaults shape outcomes more reliably than education alone. When we ask someone to make a good decision under time pressure, we get inconsistent results, no matter how well we've taught them.

When we build systems that carry a saver's account forward automatically unless they choose otherwise, we get consistent ones.

Some retirement plans have begun building this in directly — automatically carrying a small balance into a new employer's plan unless the saver opts out, rather than requiring them to request a rollover themselves.

It's worth asking your HR department or plan administrator whether your new employer's 401(k) has this kind of feature, since it can mean your balance follows you with no action required on your part.

It's a structural fix to a structural problem: It makes preservation the default and removes the friction that leads to cash-outs in the first place.

None of this means financial literacy doesn't matter — it means we've defined it too narrowly. Teaching someone to save is necessary but insufficient if we don't also teach them that a small, forgotten 401(k) is not "found money" to be cashed out at the first opportunity — it's the same nest egg of retirement savings they've been building all along, just sitting in a different account.

Teaching someone to invest is necessary but insufficient if we don't also teach them that a 401(k) hardship withdrawal, however justified in the moment, comes with a cost that compounds long after the hardship has passed.

Four ways to hold on to your savings

So what does preservation look like in practice?

• If you're leaving a job, default to rolling your 401(k) into your new employer's plan or an IRA rather than taking a check. Even a small balance benefits from decades of continued compounding.
• If you've taken a hardship withdrawal, treat rebuilding that balance as a goal with the same seriousness as building it the first time.
• If you have an outstanding loan against your 401(k) and you're changing jobs, find out the repayment deadline before you leave. Most plans require repayment shortly after separation, or the balance is treated as a taxable distribution.
• If you suspect you have a left-behind account from a past job, there are tools that can help you track it down, such as the Retirement Savings Lost and Found Database, which was established under SECURE 2.0.

If financial literacy is going to mean anything over the course of someone's working life, it has to expand beyond the accumulation phase, and it has to be reinforced by systems that make preservation the easy choice rather than the disciplined exception.

Preservation isn't the end result of financial literacy — it's the proof of it.

Building wealth and protecting it are not the same skill. It's time we started teaching and building for both.

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• Portable Retirement Plans: Switching Jobs and Keeping Your Savings Gets Easier
• How to Roll Over a 401(k) in Five Steps
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• What to Do With Your 401(k) When You Leave Your Job

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.

Escalation in the Middle East made for higher crude oil prices and interest rates but lower levels for the main equity indexes again Tuesday. Indeed, the worst month for the stock market started on a note consistent with historical seasonality data, as well as recent geopolitical developments.

The front-month West Texas Intermediate crude oil futures contract rose another 5.7% to $90.64 per barrel after a private maritime security firm, Marisks, reported attacks on two tankers transiting the Strait of Hormuz on Monday, and the U.S. launched new strikes against Iran on Tuesday.

More war on top of more government spending on top of more borrowed capex for the AI boom means more inflation everywhere, at least according to expectations reflected in global bond yields.

The yield on the 10-year Japanese government bond broke above 3% for the first time since 1996, for example, and the 30-year U.K. government bond yield hit its highest level since 1998.

Meanwhile, the yield on the 2-year Treasury hit a new 52-week intraday high of 4.400% and closed up 4.8 basis points to 4.398%. The 10-year Treasury yield (+3.4 bps, 4.792%) and the 30-year Treasury yield (+1.7 bps, 5.266%) were up again, too.

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.

A month ago, the probability of a rate hike at the conclusion of the September 15-16 Federal Open Market Committee (FOMC) meeting was 67.0%. A week ago, according to CME FedWatch, it was 39.6%.

Today, with upward pressure on prices rising again, the odds of a 25-basis-point increase in the federal funds rate are back up to 68.2%.

It's "risk off" right now

At the closing bell, the Dow Jones Industrial Average was down 0.8% at 52,766, the broad-based S&P 500 had shed 0.7% to 7,631, and the tech-heavy Nasdaq Composite was lower by 1.03% at 26,099.

Energy stocks, including Chevron (CVX, +2.4%) with its new deal to exploit Venezuelan oil reserves, led to the upside.

Consumer staples stocks, including Procter & Gamble (PG, +0.8%), and healthcare names such as UnitedHealth Group (UNH, +1.8%) also benefited from a rotation into traditional "risk-off" sectors. Utility stocks were up, too.

Apple (AAPL, +2.6%) was the best-performing Dow Jones stock during its first trading session under new leadership.

If new CEO John Ternus does what old CEO Tim Cook did in terms of market cap multiplication, AAPL will be worth well north of $60 trillion by the time he steps aside in a decade and a half or so. Apple's market cap at today's close was $4.75 trillion.

PANW gives back some of its big gain

Palo Alto Networks (PANW, -5.2%), a cybersecurity stock with an AI twist good enough to send it more than 100% higher since early May, retraced some of that move ahead of its turn on the earnings calendar after today's close.

Wall Street expects PANW management to report earnings of 98 cents per share, up from 95 cents a year ago, on revenue growth of more than 33% to $3.35 billion.

Stifel analyst Adam Borg reiterated his Buy rating on the tech stock and raised his 12-month target price from $330 to $415 in a mid-August earnings preview.

Borg noted that PANW was a "crowded long" with "a rich multiple and elevated expectations."

At the same time, citing recent vendor checks that continue to support its "strong positioning," the analyst believes "any near-term weakness, should there be any, gets bought."

Did Novartis get a meaningful lift?

Novartis (NVS, +6.0%), a large-cap stock whose American Depositary Receipts (ADRs) trade on the New York Stock Exchange (NYSE), had barely outperformed the S&P 500 year to date through Monday.

But the Switzerland-based drugmaker got a big boost Tuesday after management announced positive Phase III trial results for a pill to treat multiple sclerosis (MS).

According to Novartis, "Remibrutinib, a highly selective and potent oral Bruton's tyrosine kinase (BTK) inhibitor, demonstrated superiority versus teriflunomide in reducing annualized relapse rate (ARR) and inflammatory brain lesions with a favorable safety profile."

That's good news for people with MS and those who care about them. We'll see whether the potential blockbuster drug sways Wall Street analysts.

Five rate NVS a Buy, but four say it's a Hold and three say it's a Sell. That's good for a consensus "Hold" rating, according to S&P Global Market Intelligence.

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A funny thing happened to the bull market that was supposedly driven by only a handful of stocks. The S&P 500 is actually lagging its equal-weight counterpart through the first eight months of 2026.

The S&P 500, with dividends reinvested, is up 13% year to date through August 28. The main benchmark for U.S. equities is, of course, weighted by market capitalization, meaning that larger stocks have more influence on the direction of the index than smaller ones.

The 10 largest names in the S&P 500 — Nvidia (NVDA), Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Alphabet Class A (GOOGL), Broadcom (AVGO), Alphabet Class C (GOOG), Meta Platforms (META), Micron Technology (MU) and Tesla (TSLA) – have a collective weight of 37%.

Put another way, this murderers' row of mostly tech and communication services stocks accounts for nearly 40% of the benchmark's total value.

Meanwhile, the S&P 500 Equal Weight Index, in which each constituent has a 0.2% weighting, is up more than 16% so far this year. That's historically unusual, but if it helps folks stop worrying about a top-heavy market, great.

Narrow breadth, in which a relatively low number of stocks do the most heavy lifting, is the norm. Furthermore, as bull markets mature, breadth tends to widen. A rising tide lifts all boats, some faster than others, and eventually investors rotate into sectors that appear to offer better rewards for the risks they're taking.

More importantly, "narrow" breadth is how markets have historically generated the majority of their returns.

The 80-20 Rule — also known as the Pareto Principle — is the observation that 20% of the stocks you buy or the movies you produce or the books you publish tend to generate 80% of your returns or revenue.

If anything, when it comes to equities, the Pareto Principle greatly understates this phenomenon. Research by Hendrik Bessembinder, a finance professor at the W.P. Carey School of Business at Arizona State University, found that if it weren't for narrow breadth, we wouldn't really have any returns at all.

"When stated in terms of lifetime dollar wealth creation," Bessembinder writes, "the best-performing 4% of listed companies explains the net gain for the entire U.S. stock market since 1926, as other stocks collectively matched Treasury bills."

In the long run, innovation and creative destruction are what make equities a winning asset class for patient, diversified investors. That's even more true in the digital age, where software and silicon scale faster than old economy endeavors.

From 1990 to 2020, just 1% to 2% of public companies generated all the shareholder value in global and U.S. stock markets, notes Nicholas Colas, co-founder of DataTrek, citing Bessembinder's research.

"Most were tech names because the market had real trouble accurately discounting the real-world implications of Moore's Law (semiconductor compute per dollar doubled roughly every two years)," Colas writes. "Since 2023, the power of AI has more than doubled every year. If that continues for the next five years, AI will be more than 3,000 times more capable than today. This is why global Big Tech is all-in on the technology: not for today's models, but those in 2031."

It also suggests that the S&P 500 will retake its traditional lead over its equal-weight sibling.

"Both versions of the S&P 500 used to trade very similarly, but their price return correlation has dropped a lot in the 2020s," Colas adds. "The link is still strong when macro fears dominate, but it is much weaker when investor confidence is strong."

The bottom line on RSP vs SPY

All of which brings us to how important tech has been to the S&P 500 over the past two decades. Have a look at the chart below, and you'll see that despite this year's results so far, Big Tech has been a winner for the cap-weighted version of the index.

If, 20 years ago, you put $1,000 into the State Street SPDR S&P 500 ETF Trust (SPY), which tracks the cap-weighted S&P 500, you would today have almost $8,600. That's a gain of more than 750%.

If you put the same sum into the Invesco S&P 500 Equal Weight ETF (RSP), you'd have less than $7,500 today — a gain of less than 650%.

Notice how the SPY's outperformance vs RSP widened substantially over the past few years. As Colas notes above, that's mostly due to the AI story — and strong investor confidence shrugging off macro uncertainty.

True, the equal-weight index casts a wider net, capturing gains from tomorrow's winners before they command larger weights. A cap-weighted index, on the other hand, simply lets its winners run.

For long-term investors, history suggests fighting a cap-weighted index — and the Big Tech AI revolution driving it — is a poor proposition.

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Dolly Parton spent a lifetime turning contradictions into strengths.

She grew up with very little money yet became extraordinarily wealthy. She left the mountains of East Tennessee, yet never really left them behind. She created an image that was deliberately extravagant, while underneath the rhinestones was a remarkably disciplined businesswoman.

Her life offers a powerful lesson about wealth because she accumulated two very different kinds of it.

I define total wealth as the combination of financial wealth and wisdom wealth:

• Financial wealth includes income, investments, businesses, property and financial security.
• Wisdom wealth is harder to measure. It includes knowing yourself, understanding what matters, finding purpose, developing resilience, building meaningful relationships and having the courage to live according to your own definition of success.

Dolly Parton built an extraordinary amount of both.

Step outside your concrete box

Parton was the fourth of 12 children raised in rural Tennessee in a family with very little money. Her childhood later inspired "Coat of Many Colors," one of her most beloved songs. The coat itself had almost no financial value, but the love with which her mother made it gave it another kind of value. Its value came from relationships, love and gratitude.

That is wisdom wealth.

But being grateful for what we have does not mean accepting every limitation we inherit. I use the term "concrete box" to describe the invisible boundaries that family, circumstances, culture, fear and our own assumptions can construct around our lives.

Over time, we can become so accustomed to those walls that we stop seeing them.

Parton saw hers. The day after graduating from high school, she left for Nashville. She did not reject where she came from. She simply refused to allow her starting point to define her destination.

That may be the first lesson in building total wealth: Know where you come from, but don't let it tell you how far you can go.

Create income, but own assets

One of Parton's smartest financial decisions came long before she became a global superstar.

In the 1960s, before she had even achieved a Top 10 hit as a recording artist, she established a publishing company with her uncle Bill Owens. The decision allowed her to maintain control over the copyrights to the songs she wrote.

At a time when many famous musicians surrendered ownership of their work, Parton understood its long-term value.

Years later, Elvis Presley wanted to record her song "I Will Always Love You." It should have been a dream opportunity, until his business manager demanded half of the publishing rights.

Parton said no.

Imagine turning down Presley while you are still building your career. Yet Parton understood something every investor should understand: Income pays you today. Ownership can pay you for decades.

That decision became enormously valuable when Whitney Houston later recorded "I Will Always Love You," and the song became a worldwide phenomenon. Because Parton retained her rights as the songwriter, she participated in its enormous financial success.

Most of us will never own a music catalog, but the principle applies to everyone:

• A paycheck creates income
• Savings can purchase investments
• Investments create ownership
• Ownership, combined with time and compounding, can create financial freedom and even generational wealth

Don't only ask, "How much am I earning?" Also ask, "What am I owning?"

For many people, that can mean building ownership through diversified equities, real estate or a business. Starting early gives compounding more time to work.

Don't confuse your job with your potential

Parton also understood that one source of income does not have to define the boundaries of your economic life.

In the movie 9 to 5, she famously sang about pouring herself "a cup of ambition." She had plenty of it.

She did not remain simply a country singer. She crossed into pop music, acted in movies, wrote books, invested in businesses, licensed products and ultimately attached her name and capital to Dollywood.

Forbes valued her music catalog at about $120 million and estimated her net worth at about $450 million. Dollywood became an economic engine in the same region where she had grown up poor. A Tennessee study estimated its annual economic impact at $1.8 billion and associated it with 23,000 jobs.

There is a financial lesson here that goes beyond celebrity entrepreneurship: Diversification does not apply only to portfolios.

Your skills and career create human capital. Saving and investing can convert the income from that human capital into financial capital. With enough time and the power of compounding, your money begins working alongside you.

You do not need five businesses to follow Parton's example. You need a growth mindset and a commitment to save, invest and own.

Failure is an event, not an identity

Looking back, it might appear that Parton's extraordinary success was inevitable. It wasn't.

Projects failed. Her movie Rhinestone disappointed at the box office. A costly prime-time television show was canceled after one season. Separating professionally from Porter Wagoner resulted in an expensive legal settlement.

She kept going.

This is where wisdom wealth becomes essential to financial wealth. Investors experience bear markets. Entrepreneurs have failed ventures. Employees lose jobs. Careers stall. Retirement plans change. No financial plan can eliminate uncertainty or life's unexpected turns.

Financial wealth can give us the resources to withstand setbacks. Wisdom wealth gives us the resilience to begin again.

Sometimes wealth is the portfolio that carries you through a difficult period. Sometimes it is the mindset that prevents a difficult period from defining the rest of your life.

We need both.

Eventually, ask what money is for

Perhaps Parton's greatest investment cannot be measured on a balance sheet.

In 1995, she launched the Imagination Library, inspired partly by her father's inability to read and write. What began as an effort to provide books to children in her home county grew into an international literacy program that has distributed hundreds of millions of books.

Consider the circle her life completed:

• A girl grows up poor in Tennessee
• She steps outside her concrete box
• She turns talent into income
• She converts income into ownership
• Ownership creates financial wealth
• She uses that wealth to give millions of children opportunities that were unavailable to people she loved

That is total wealth creation.

We spend enormous amounts of time asking financial questions:

• How much should I save?
• What should I invest in?
• When can I retire?
• What return do I need?

Those questions matter. I have spent much of my professional life helping people answer them. But eventually, we should ask a bigger question: What is all this wealth for?

If money itself becomes the destination, the finish line keeps moving. There will always be someone with a larger house, a bigger portfolio or a higher net worth.

Wisdom wealth gives you the why — financial wealth provides the how

Dolly Parton understood both sides of wealth. She knew how to make money, protect ownership and build businesses. But she also knew where she came from, what mattered to her and what she wanted her success to accomplish.

She left her rural hometown to pursue her dreams, then used much of what she built to enrich the place she came from.

Perhaps that is her greatest wealth lesson: Don't simply build a bigger balance sheet. Build a bigger life.

Step outside your concrete box. Build financial wealth. Build wisdom wealth. Together, build total wealth.

Feroz Ansari, CFP®, is a portfolio manager at Compak Asset Management and an adjunct professor at the University of California, Irvine. He is the author of The Wisdom and Wealth Solution, published by Kiplinger Books and a USA Today national bestseller.

To learn more, visit wisdomandwealthsolution.com or subscribe to The Wisdom and Wealth Solution YouTube channel.

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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.

Twenty years ago, a surviving spouse might have inherited a pension and a checking account.

Today, she's more likely to inherit multiple retirement accounts, taxable investments, trust assets, stock compensation, Medicare decisions and a Social Security claiming strategy, often all at once.

As a CERTIFIED FINANCIAL PLANNER® Professional, I'm watching more of my female clients step into this role as the baby boomer retirement wave enters its final stretch. The role itself has become far more complicated than it used to be.

This isn't just about assets changing hands. It's a shift in financial leadership. Women aren't only inheriting wealth, they're inheriting responsibility, often while simultaneously managing retirement, widowhood or another major life transition.

Here are the six priorities I put in front of every client making this shift, and the order matters as much as the list itself.

1. Get a handle on access before anything else

Before touching investments, secure access to cash and liquidity. That means access to cash accounts, a clear picture of what's coming in and going out and a check for life insurance claims that might not have been filed yet.

That last one can relieve significant financial pressure at a moment when everything else feels uncertain.

A financial adviser can help identify every inflow and outflow so nothing falls through the cracks, and working with one before an unexpected event can make this process seamless.

This is the foundation everything else gets built on, and it's not a step to rush.

2. Reassess every income source, not just the obvious ones

Losing a spouse can change Social Security benefits, required minimum distributions, tax brackets, Medicare premiums and investment withdrawal needs, often all in the same year. I think of retirement income like an orchestra: When one instrument changes, every other player has to adjust.

Skipping this reassessment means leaving money on the table or worse, triggering tax consequences that could have been avoided with a little planning. Important to keep in mind, time matters here.

3. Update beneficiaries before anything else on the estate list

A major life transition, whether retirement, widowhood or divorce, should trigger a full estate review: Wills, trusts, healthcare directives, powers of attorney and transfer-on-death registrations.

But if I had to rank the list, updating beneficiaries on qualified accounts and life insurance, meaning IRAs, Roth IRAs, annuities and policies, comes first.

Skip this step, and those assets can pass to an estate instead of a person, which creates real tax problems for the people you meant to protect.

4. Match your investment risk to your new reality, not old assumptions

Retirement isn't a choice between growth and income; it's about giving each dollar a purpose. Some assets should provide dependable income, others should outpace inflation, and others exist to provide flexibility when markets get volatile.

One misconception I hear often is that holding a lot of cash is automatically the safe move.

Say a retiree is sitting on $200,000 in cash earning next to nothing. At 3% average inflation over 20 years, that same $200,000 loses more than half its real purchasing power, even though the number on the statement never drops.

That's the quiet risk that a "safe" allocation can carry. The conservative approach that felt right 30 years ago isn't automatically the right one for the next 30.

5. Plan for healthcare costs long before you need to

Healthcare isn't simply another line item in a retirement budget. It's one of the largest financial risks retirees face, largely because it's so hard to predict its timing or size, and it's also one of the biggest opportunities for strategic planning.

The clients who benefit most are the ones who start this conversation years before retirement.

There are strategies available well ahead of time that can meaningfully reduce taxes tied to future healthcare costs. It's worth having that conversation earlier than feels necessary.

6. Plan for 30 years, not 10

Women often live longer than men, and should plan for retirements lasting 30 years or more. Over that time horizon, inflation can be a bigger threat to a portfolio than short-term market volatility.

Planning only for today's expenses ignores what the same lifestyle might cost decades from now, so a portfolio built for a 30-year retirement needs to be designed with that stretch in mind from the start, not adjusted for it later.

I see this pattern often: A client is widowed unexpectedly, and my job is to be the bridge through that period without pressure or panic.

Because we'd already documented income sources, reviewed estate documents, updated beneficiaries and built a retirement income strategy together well before the transition, there were no dropped balls and no desperation.

She had the space to focus on her family, which is exactly where she needed to be.

Final thoughts

Financial confidence doesn't begin when life changes; it begins long before it has to. If you're approaching retirement, or you expect to take on this role someday, schedule time this year to walk through every piece of your financial picture, even if nothing feels urgent right now.

The clarity it provides tends to be worth far more than the time it takes.

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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.

You've no doubt heard the saying, "There is nothing as uncommon as common sense."

There is a closely related issue in the form of several questions that we should ask ourselves, but often do not at times when common sense should prevail:

• If I do this, what are the likely consequences?
• Why am I even considering doing this?
• Who can I ask before I take the next step?
• Have I been here before, doing something that, when looking back on it later and the trouble it got me into, indicates I'm prone to asking for trouble?

'I am supposed to get 32 miles per charge'

Ideas for my articles are often handed to me by readers. Fortunately, most are asking for a legal opinion on some action they want to take. Frequently, the underlying basis, as we say in law, "assumes facts not in evidence."

This means a question or statement assumes something that hasn't been proven, but there is an assumption, a belief, that the statement is true, and they are about to act on it.

"Jackie," who lives in the South, sent this email that is the perfect illustration: "I purchased a new Chrysler Pacifica eHybrid from my local dealer in 2024. I am supposed to get 32 miles per charge. In March, I was only getting 28 to 32 miles per charge. The charge is also not lasting as long as it is supposed to.

"The local dealer, as well as Chrysler customer care, refuse to fix the problem. My car is within the warranty period. I want to put magnetic signs on my car telling people not to purchase vehicles from this dealer. Am I protected under the First Amendment? We live in a small city, and these signs would definitely make an impact."

Jackie signed her email, "A devoted reader."

Is Jackie's complaint valid?

I read online reviews of her vehicle, all confirming the EPA estimates 32 miles of electric-only range on a full charge. Industrywide, EV batteries normally lose about 2% range per year.

In any event, a 28- to 32-mile electric range is within normal variation for a 2024 Pacifica PHEV. Jackie's complaint about the dealer and Chrysler therefore lacks merit, as there is nothing to repair.

Legal issue: Defamation vs protected opinion

When it comes to criticizing a business, it is important to understand the difference between speech that is protected and speech that is unprotected — statements of opinion vs factual assertions.

So, Jackie could attach a sign to her car that states her opinions, such as:

• I believe the dealer misled me, and I would not buy from them again
• I do not like the mileage I am getting
• In my opinion, Chrysler isn't honoring its warranty

However, the following assertions could see her staring down the barrel of a defamation lawsuit if she's unable to support them with facts:

• Chrysler lied about the battery range
• My dealer knowingly sold me a defective vehicle and refused needed repairs
• My dealer is engaging in consumer fraud

The legal risks Jackie could be inviting

Jackie could be:

• Sued for business interference. If her local Chrysler dealer has proof that the signs she put on her car are costing them sales or other economic damage, they would likely file suit alleging intentional interference with prospective economic advantage and trade libel.
• Sued for defamation. Over the years, I have had more than one unhappy car owner march into my office, shaking like a leaf, holding a lawsuit they were just served with from an auto dealer that accuses them of posting defamatory signs, reviews and social media comments containing false factual assertions — meaning they stated a specific fact that can be proven false.

To a person, they thought that by causing embarrassment to the dealer, this would result in their complaint being dealt with. The result was anything but. None of them ever saw the possible legal consequences of engaging in what amounted to defamatory conduct.

They never remotely considered having to shell out a significant amount of money for attorney fees.

So, Jackie may put magnetic signs on her vehicle if they contain only her opinions, but she would almost certainly find herself in scalding-hot legal water if the signs contain false factual accusations about the dealer or manufacturer.

I am worried about Jackie

I do not know Jackie, but I wonder if this is a pattern with her. Is she reacting to a perceived wrong in a disproportionate way, revealing a grievance mindset? Is she psychologically invested in the idea that she has been wronged and someone must be held accountable?

That could explain why someone would consider putting a sign on her car even though doing so might lead to significant (and expensive) consequences.

Jackie lives in a small town and will need to have her vehicle serviced, so what does she get out of going to war with the dealer? Absolutely nothing!

There could very well be deeper issues at play, and this could be a time for a family meeting. Today, it is a non-issue with her vehicle, but she faces potential enormously high attorney fees if she defames the auto dealer and automaker.

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.

Equity compensation can be a powerful wealth-building tool when deployed correctly. However, it can also quietly become one of the most misunderstood parts of your financial life.

Stock options, restricted stock units (RSUs), employee stock purchase plans (ESPPs) and other forms of equity compensation are an increasingly common benefit, yet many people manage them reactively. They make decisions on one vesting event or trading window at a time, without a clear strategy tying those decisions back to the big picture.

Equity compensation is often viewed separately from the rest of a household's finances, managed independently from investment accounts or retirement planning. However, it's not a standalone benefit; it's a meaningful part of the overall financial picture.

Decisions about exercising or selling company stock can meaningfully influence taxes, cash flow, portfolio risk and long-term outcomes just as investment and retirement decisions do.

When those decisions are made in isolation, you might be taking unintended risks, creating avoidable tax consequences or missing opportunities to align equity compensation with broader financial priorities.

Looking at equity compensation from the right perspectives

Concentration risk. Your career and your portfolio are linked. One of the most overlooked aspects of equity compensation is concentration risk. Your paycheck already depends on your employer.

When a large portion of your investments also depend on that same company's stock, your financial well-being can become more tied to the success of your company than you might realize.

This doesn't mean your company stock is "bad," or that you should sell it immediately. It does mean you should be intentional about understanding how much of your overall net worth depends on one company, one industry and one market cycle.

From there, the goal is to decide how much exposure you're truly comfortable with and how equity compensation fits alongside the rest of your investments over time.

When equity compensation is evaluated as part of your total portfolio rather than as a separate bucket, it becomes easier to make disciplined decisions about diversification, risk and timing.

Tax planning. Timing matters more than people realize. Equity compensation decisions are also tax decisions. The timing of exercises, sales and vesting events can impact how much of the value you ultimately keep after taxes are paid.

In high-income years, it might make sense to defer certain taxable events when flexibility exists. In lower-income years, the opposite could be true, and accelerating income can be advantageous.

For example, someone planning to retire at year-end might benefit from waiting to exercise stock options until the following year, when earned income is no longer part of the tax equation and lower tax brackets could apply.

Similarly, years with unusually large deductions or lower income in general can create an opportunity to exercise or sell more company stock while softening the tax impact.

Market conditions can also matter. If your goal is diversification, selling shares or exercising options during a market pullback can mean selling and re-investing at lower prices.

This typically results in a lower tax bill but allows the assets to recover over time in a more diversified portfolio.

In other words, you can accomplish your goal at a lower cost without giving up much overall value. The key is making these choices intentionally, rather than reacting to short-term market moves.

Maximizing net value, not just gross value. A rising stock price is exciting, but the goal isn't just growth. The goal is what you keep after taxes, risk and opportunity costs.

Holding equity indefinitely might maximize upside, but it can also increase portfolio risk and limit flexibility.

Conversely, selling too quickly could reduce long-term value. The right balance depends on your goals, cash-flow needs and overall financial picture.

Mitigating market risk through structured decisions. If you know you'll be exercising options or selling shares in a given time period, spreading those decisions out can help manage risk.

Planned quarterly, monthly or annual sales or exercises can smooth out market volatility, benefiting from upside if prices rise while reducing regret if prices fall later in the year.

Having a plan can also help avoid panic-driven sales during periods of market stress.

Best practices for managing equity compensation

Develop an overall plan. The most important step is having a plan for how you will handle your equity compensation over time. This includes understanding your choices, the terms of your options and the tax consequences and potential gains or losses from your exercise and sale decisions.

The challenge is that no single equity compensation decision exists in a vacuum. Each one affects taxes, liquidity and portfolio construction, all of which are key aspects of your financial life. A well-thought-out strategy considers:

• The type and expiration dates of your equity awards
• Tax implications of different exercise and sale timing
• Your long-term goals for equity (income, diversification, funding a specific objective)

Your goals matter here. If equity compensation is earmarked for a near-term or fixed-timeline goal, waiting until the last possible moment to sell introduces unnecessary risk and forces the full tax hit into one year.

If your primary goal is diversification, you can preplan periodic sales while staying flexible when conditions change.

Understand what happens if you leave your company — and plan ahead. Many equity-compensation plans have strict rules when employment ends. In some cases, vested stock options must be exercised within as few as 90 days after leaving the company, regardless of whether departure is due to retirement, resignation, disability or death.

These timelines can be short, so it's important that both you and your family understand what action might be required. Equity compensation shouldn't become a crisis simply because a deadline went unnoticed.

If you have flexibility around the timing of when you leave your company, understanding these conditions allows you to be more strategic.

• If you're retiring, the post-retirement exercise window could be negotiable
• If you're switching jobs, you have some control over your last day

For instance, if your next round of vesting is only a couple of weeks away, you can negotiate a start date with your new company that allows you to vest before leaving.

Final thoughts

Equity compensation can be an important driver of long-term wealth, but it needs to be managed intentionally. When decisions aren't made in the context of your full financial picture, opportunities can quietly become avoidable risks.

Our role is to help you move from reactive to intentional when it comes to equity compensation. That means building a strategy that fits your full financial picture, coordinating decisions around taxes, retirement and investment goals over time and ensuring that when key moments arrive, you're ready for them.

This material is intended for informational/educational purposes only and should not be construed as investment, tax, or legal advice, a solicitation, or a recommendation to buy or sell any security or investment product.

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• Yay! You've Been Awarded Stock! Boo, the Tax Hit Is Massive: How to Avoid the Mistakes High Earners Make Before They Even Realize It

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.

Investing in U.S. Treasury securities has long been the financial equivalent of vanilla ice cream: Not the most exciting choice, but generally predictable and dependable.

That reputation has made Treasuries a cornerstone of countless investment portfolios and an important source of funding for a national debt that now exceeds $40 trillion.

About U.S. Treasury securities

What is a U.S. Treasury security? It is a loan you make to the U.S. government, with terms ranging from ultra-short (four weeks) to long-term (30 years). In return, the U.S. government promises to pay back the full amount of your principal, plus interest, at regular intervals.

Treasury securities have long been considered one of the safest investments because they're backed by the full faith and credit of the U.S. government.

But in recent years, some investors have questioned whether an investment in U.S. Treasury securities should continue to be categorized as the default "safe" investment.

What if, for example, the trust that worldwide investors have placed in these instruments breaks, and payments are either denied or deferred? What if a significant number of investors decide they no longer want to help fund the U.S. government, because a large portion of the debt is related to military spending or other policies with which they disagree?

If these concerns resonate with you, there's good news. There are other fixed income alternatives that could help you sleep better at night — options that put your capital to work in community infrastructure and local economies with risk profiles comparable to U.S. Treasuries and with similar or higher yields.

Choosing the right fixed income alternative for you depends on your values and financial situation.

Consider investing in a CDFI

A Community Development Financial Institution (CDFI) provides capital to certified lenders in communities historically underserved by traditional financing opportunities.

CDFIs fund initiatives such as affordable housing projects, BIPOC-owned businesses, healthcare programs, rural development projects and community nonprofits.

Many CDFIs offer bonds with nonconcessionary or market-rate returns, so the investor doesn't have to sacrifice expected financial performance to make a positive impact.

However, investors should be aware that CDFIs are less liquid than U.S. bonds — meaning they can't be quickly converted to cash — because these investments are typically held for a set term and aren't traded on a public marketplace.

For those who don't need immediate access to their capital, however, this tradeoff can be well worth it.

The Opportunity Finance Network is a free tool you can use to find CDFIs based in rural, urban and Native communities across the U.S.

Explore opportunities to invest directly into a community project

One of the most direct and meaningful ways to make a lasting impact with your dollars is to invest in community projects. Private organizations pool investor capital to finance projects such as affordable housing, renewable energy, community facilities, healthcare centers, small businesses and more.

These investments can be a great way to diversify your portfolio.

As with CDFIs, these investments are less liquid because they're intended to be held until the loan reaches maturity, so they're not ideal for investors who need immediate access to cash.

They may also carry higher risk, depending on the issuer — however, they arguably bring the highest return in terms of community impact.

If you're interested in finding community projects seeking investments, donor collectives such as Solidaire Network or Women Donors Network, as well as community banks, can be wonderful resources for sourcing projects to invest in.

Support community infrastructure through municipal bonds

A municipal, or muni, bond is issued by a state or local government to finance infrastructure projects such as schools, roads, hospitals, water systems, transportation and parks.

In addition to providing essential services to local communities, muni bonds usually offer the highest rate of return available in the bond space, relative to the amount of investment risk.

They can also have potential federal and sometimes state tax benefits.

However, those advantages are generally reserved for investors in the highest tax brackets, making this option less suitable for some.

The Municipal Securities Rulemaking Board (MSRB) has a free tool to help investors view and compare municipal bonds.

Remember that your portfolio can be a direct reflection of your personal values

Regardless of what type of community investment vehicle you decide on, the important thing to know is that there are always options if you're looking to diversify your portfolio away from U.S. Treasury bonds. The right solution depends on your values, your personal appetite for risk and the timeframe you have for holding the investment.

Shifting your fixed-income strategy toward one that better aligns with your personal values is a significant step toward building a complete financial plan that fully aligns with the causes, communities and values that matter to you.

You shouldn't have to do it alone. Using a tool such as valuesadvisor.org can help you find a financial professional who cares about both the financial and ethical impact of your investments as much as you do.

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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.

All three main equity indexes opened lower and stayed in the red through the last trading session of August amid a re-escalation of war in the Middle East. Crude oil spiked and the 10-year Treasury yield hit its highest level since January 2025 after the U.S. attacked Iran for the first time in a month, and the Islamic Republic responded by striking its neighbors Jordan and the United Arab Emirates.

The yield on the 10-year Treasury rose to 4.744% from 4.722% on Friday, reaching a 19-month intraday high of 4.768%. The 30-year Treasury yield (+4.1 bps, 5.249%) was up, too, but the 2-year Treasury yield (-0.1 bps, 4.339%) ticked lower. The front-month West Texas Intermediate crude oil futures contract added 3.0% to $85.92 per barrel.

"With traders tracking geopolitical volatility as well as potential seasonal volatility," E*TRADE from Morgan Stanley Managing Director Chris Larkin writes, "it will be interesting to see which market impulse from last week might carry over to this week — the S&P 500's net gain, or its Friday weakness following comments from Kevin Warsh."

The Fed chair reiterated his commitment to price stability during his keynote speech at the Jackson Hole Economic Symposium, saying the central bank would "have work to do" should inflation not move toward its 2% target "clearly and at sufficient speed."

In addition to weighing the impact of escalating war in the Middle East, the Fed will take account of the August jobs report on Friday. "Unexpectedly strong labor-market data this week might be taken as bad news by the market, since it could reinforce expectations for a rate hike," Larkin observes.

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.

CME FedWatch shows a 66.1% probability of a 25-basis-point increase to the federal funds rate at the conclusion of the September 15-16 Federal Open Market Committee meeting, up from 57.0% on Friday.

At the closing bell, the Dow Jones Industrial Average was down 0.7% at 53,185, but the blue-chip index ended the month with a gain of 1.3%. The broad-based S&P 500 shed 0.3, but it was up 2.6% for August at 7,686. The tech-heavy Nasdaq Composite ended the day lower by 0.1% and the month higher by 3.9% at 26,370.

Another legendary Apple CEO steps aside

Apple (AAPL, -0.9%) wasn't among the handful of Dow Jones stocks posting gains today. But the iPhone maker is up about 2,740% over the trailing 15 years to August 24, 2011, the day Tim Cook took over from Steve Jobs as CEO of the iconic technology company.

Cook is stepping down from that role effective tomorrow but will remain as executive chairman.

"If there was one picture to define Tim Cook’s legacy, it would be a stock chart during his tenure," Freedom Capital Markets Chief Market Strategist Jay Woods writes. "Started at the bottom left and ended at the top right. A long-term uptrend with higher peaks and lower valleys along the way."

In addition to the total return, Woods notes that AAPL executed 7-for-1 and 4-for-1 stock splits, was added to the Dow, was the biggest stock in Warren Buffett's Berkshire Hathaway (BRK.B, -0.2%) equity portfolio and was, indeed, the biggest company in the world by market cap for a long stretch under Cook's leadership.

Succeeding Cook (and Jobs) is John Ternus. "At 50, Ternus is roughly the same age Cook was when he replaced Jobs," Woods observes, "but his engineering and product background offers Apple something different as it searches for its next big innovation and plays catch-up in AI. Cook proved you could successfully replace a legend, now Ternus gets the unenviable task."

California wildfire law doesn't protect EIX, PCG

Edison International (EIX, -22.9%) and PG&E (PCG, -20.0%) were the two worst S&P 500 stocks on Monday after the California State Assembly passed an amendment to wildfire legislation that doesn't include liability protection for utilities.

Gov. Gavin Newsom wanted to limit what utilities had to pay to insurance companies, some survivors, local governments and businesses claiming damages from wildfires caused by their electricity infrastructure.

According to CalMatters, the governor and leaders of California's legislature agreed on a final bill that leaves out all of Newsom's proposals. Newsom had been concerned about the impact of rising costs on investor confidence in the utility stocks.

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To help you understand what's going on in the economy, business and politics 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 long and tricky to-do list awaits Congress when it reconvenes after its annual August break — the House on August 31 and the Senate on September 14. And time will be short, as lawmakers will be eager to campaign ahead of the November midterm elections.

The most pressing challenge this autumn: Averting a potential government shutdown. Failure to OK federal funding for the new fiscal year, starting October 1, would shutter many agencies.

The good news is that both the House and Senate have passed a stopgap spending bill to keep agencies operating into December. But their measures differ, and compromising won’t be easy. Still, neither party wants a shutdown before the midterm elections, and House Speaker Mike Johnson (R-LA) has hinted the Senate bill, after tweaks, should pass the House.

Voter ID legislation likely will go nowhere.
Not enough Republicans support it, despite pressure from President Trump to establish stricter rules to ensure only citizens can vote. Trump will continue to increase the pressure, but Senate Republicans opposing the move are holding firm, as are Democrats.

A college sports bill, another Trump priority, faces slightly better odds, though passage is uncertain. The bipartisan bill seeks to create a national framework for college athletic deals and would grant the NCAA an antitrust exemption so that it could enforce caps on payments to athletes, plus rules on eligibility and transfers. The Big Ten and Southeastern conferences back the bill, though some lawmakers say that the measure cedes too much power to schools over their student athletes.

Debate continues on a landmark cryptocurrency bill that would establish a regulatory framework for the industry. The bipartisan bill has gotten pushback from the banking industry, which views it as too crypto-friendly, and Democrats want stronger ethics provisions intended to curb the president’s ability to profit off his family’s thriving crypto dealings. But backers on Capitol Hill have invested a vast amount of effort on the measure and are determined to push it through.

Military funding is also in limbo, as members of both parties have pressed the administration and the Pentagon for more details on how the money will be spent, and how prior military resources have been used in the Iran war. The administration wants $1.5 trillion for the Pentagon, but Congress is unlikely to OK the full amount.

Republicans are increasingly likely to punt a massive partisan spending bill to after the midterms. Intra-GOP debates on what the reconciliation legislation should include are keeping the proposal on the back burner for now. The GOP has used the reconciliation process twice in the past year to pass bills in the Senate without Democratic support, including last year’s tax law. But this time will be trickier.

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.

Read more

• Stock Market Winners and Losers of the 'Big, Beautiful' Bill
• Trump Tax Law 2025: What Changed and How It Affects Your Taxes
• What the Government Shutdown Means to Retirees
• How Medicare Is Affected by a Government Shutdown
• What Does a Government Shutdown Mean for Stocks?

Whether you're a spender or a saver, a speculator, trader or investor, you're only human.

And there's no sense in not being constructive about it.

If you aspire to be a successful investor, the first thing to do is acknowledge what Ritholtz Wealth Management Chief Investment Officer Barry Ritholtz calls your "lizard brain."

Don't be shy, we've all got it. It's a feature of evolutionary psychology.

The second thing to do is take our short quiz to see whether you're really on your best behavior as an investor.

More on investing from the Kiplinger team:

• Greed, Fear and Market Volatility: A Financial Adviser's Guide to Keeping Emotions Out of Investment Decisions
• Stop Waiting for the Perfect Moment to Invest: There Isn't One
• These 7 Investment Behaviors Hurt Retirees the Most, But It's Not Too Late to Change Your Ways
• How to Pick the Right ETF for Your Financial Goals
• The Best All-in-One ETFs to Keep Your Investment Portfolio Simple
• The 5 Best Long-Term Investment Stocks to Buy for Steady Returns
• 5 Top Buy-and-Hold Investments to Manage Market Volatility
• 5 Tips to Help You Prepare Your Portfolio for Midterm Elections

For two generations, American investors lived by one rule that seemed to work across market conditions: Own stocks for growth, own bonds for safety, and let the two balance each other out.

The 60/40 portfolio became the default for retirement savings because, when stocks fell, bonds were supposed to rise and soften the blow.

That cushion is not what it used to be.

Investors got another reminder earlier this year. The S&P 500 gave back more than 4% in the first quarter, and the bonds meant to protect them did not ride to the rescue: Treasuries erased their early gains and turned slightly negative, and high-yield credit posted its first losing quarter since 2022. Stocks and bonds fell together for the second time in four years.

The 60/40 broke in the moment investors needed it to perform.

For most of the past two decades, when bonds and stocks tended to move in opposite directions, it made the balanced portfolio feel bulletproof. In retrospect, that hedge may have depended on a specific market regime: Low, stable inflation and a Fed with room to cut.

Insert a different inflation backdrop, like the one we see today, and the relationship can flip. The correlation between bonds and stocks has swung from deeply negative a generation ago to positive today, so the two halves of the portfolio can increasingly rise and, more painfully, fall together.

When that happens, an investor who believes they own two different things may discover they really own one bet wearing two labels.

The same erosion is now showing up inside the stock market itself. The S&P 500 trades near its richest valuations ever, close to the dot-com peak. And it has rarely been narrower: The 10 largest companies make up roughly 40% of the index, an all-time record, and technology also represents a nearly 40% weighting.

A broad index fund that appears to be 500 companies is really a concentrated bet on a handful of names priced for perfection. The listings on the horizon, such as the leading AI firms, may deepen that tilt, sitting in the same theme already driving the index, their value largely built while private.

Why alternatives could be the answer

So where can investors turn for the diversification they thought they already had? Increasingly, the answer is the one the most sophisticated institutions reached years ago: Private markets and other alternatives.

It helps to be clear about why alternatives can behave differently. Diversification only works when assets are driven by genuinely different forces, and that is what has gone missing from the traditional portfolio.

Public stocks and bonds now move on the same things: Interest rates, liquidity and sentiment. Many private investments do not. The income from a senior, secured loan depends on a borrower's cash flow and sits ahead of the equity.

A stake in an established investment firm earns based on the long-term growth of private capital itself. The gains in a private company come from years of operating work, not from a daily repricing on the headlines.

Structure matters, too. Investors often think of illiquidity as a disadvantage. But it also means that capital is not forced to react every time the markets panic. That has historically helped many private strategies avoid the sharp swings common in public markets.

It can even let a patient owner step in when others are forced to sell. Different drivers tend to produce different outcomes.

The typical university endowment now holds well over half its assets in alternatives, and the pension funds behind teachers, firefighters and police officers have leaned on private markets for decades to earn returns in a way public stocks and bonds alone could not. The teacher whose pension owns private markets cannot own that same exposure in her own 401(k).

Fortunately, the door is opening for investors. In 2025, an executive order directed regulators to widen access to alternatives inside workplace retirement plans, and in early 2026 the Department of Labor proposed a framework giving plan fiduciaries clearer protection when they add private markets to their lineups.

For the roughly $14 trillion in American defined contribution plans, including $10 trillion in 401(k)s held by more than 70 million people, the allocation to private markets today is close to zero. PwC estimates that even a 5% allocation could move more than $1 trillion into private markets by the end of the decade.

The largest asset managers are already building vehicles to meet this shift, and the best firms are doing more than repackaging old strategies. They curate around specific themes and design structures that give investors more liquidity, access and optionality than traditional private funds have historically offered.

Increasingly, how a vehicle is built can matter as much as what it holds.

New opportunities within reach

None of this means stocks and bonds disappear; they remain the core of how many people build wealth. But the idea that those two alone can diversify a portfolio is one that the last several years have challenged.

Alternatives are moving from the edge of the portfolio toward the center, and within reach of far more investors than before.

The investors who do best in moments like this recognize the regime has changed before they are forced to. The tools the most successful institutions have used for decades are becoming available more broadly than ever, and the door is open.

The 60/40 portfolio had a remarkable run. The next chapter will be written by the investors willing to look beyond stocks and bonds.

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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.

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…

Facebook’s business has boomed despite serious privacy scandals and intense congressional scrutiny over the years. A recent blockbuster settlement won’t cause the company to stumble, either.

Meta, Facebook’s parent company, reached a deal with a bipartisan group of state attorneys general to end a lawsuit that alleged Meta’s social media apps, Facebook and Instagram, were designed to be addictive and harmed teens’ mental health. Meta has agreed to pay $17 billion to the states and implement a long list of new policies aimed at protecting teen users.

The new restrictions for users under age 18 include more parental controls, stronger age verification, two-hour daily time limits and blackouts from midnight to 6 a.m. But the teen protections won’t hurt Meta’s underlying business.

"It obviously is something that puts to rest a big chunk of litigation that we face in this area," said C.J. Mahoney, Chief Legal Officer, in a conference call. In terms of the business impact, Mahoney said "we feel it's going to allow us to compete well in the market."

Teen users account for less than 1% of Meta’s revenue and average about one hour per day on Instagram, far less than the new two-hour limit. Meta is also pushing for competitors TikTok and YouTube to add the new restrictions, too, which would nix any competitive disadvantage Meta faces from being the only company with them. ($5 billion of the settlement payment is contingent on TikTok and YouTube adopting the same restrictions.)

"We expect behavioral changes imposed on Meta to only marginally trim teen time spent on Meta’s properties," writes Malik Ahmed Khan, an analyst at Morningstar, in a recent research note. "The real value in teen users is their lifetime value, which is maintained in this settlement."

Plus, Meta avoids legal penalties that could have been far higher. "The settlement would lift a large legal overhang on Meta’s stock, with prior reports of legal liabilities materially higher than the proposed $17 billion," according to Khan.

Going forward, future lawsuits and potential federal regulations are unlikely to take a major bite out of Meta’s sales and profits. But other pressing risks linger. Reaching a healthy return on investment for Meta’s exorbitant spending on artificial intelligence will be incredibly tough. Competition from TikTok, YouTube and other media apps is getting more intense. And CEO Mark Zuckerberg’s vision of turning the company into a hub of personal superintelligence is a major bet with unclear prospects.

Meanwhile, advocates continue to push for more guardrails. The next fight will be over how teens use AI, as the settlement does not cover Meta AI, the company’s chatbot.

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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As natural disasters, such as hurricanes, wildfires, earthquakes, tornadoes, floods and blizzards, become more intense, losses from these disasters are soaring. If you suffer property damage from such a disaster, knowledge of the tax law can help.

Deducting Losses

Individuals can deduct personal casualty losses that are not reimbursed by insurance to the extent those uninsured losses are attributable to federally declared disasters that affect a wide area.

Your loss is equal to the smaller of the damaged property's adjusted basis or decline in value, less any insurance proceeds you receive or expect to receive.

New legislation passed by Congress has tax easings identical to prior relief for victims of federally declared disasters that occurred in 2020 through July 4, 2025. The law, named the "Doug LaMalfa Federal Disaster Tax Relief Certainty Act," applies to federally declared disasters beginning before 2026, which includes disasters that occurred in the last six months of 2025.

The new legislation lets taxpayers deduct their uninsured personal losses, such as damage to a house, car, or personal belongings, from federally declared disasters in excess of a $500 threshold, without regard to the 10%-of-adjusted-gross-income offset that generally applies to disaster loss deductions.

This expanded tax break is available for taxpayers who claim the standard deduction and for those who itemize on Schedule A of Form 1040. The IRS refers to these losses as “qualified disaster losses.”

Computing the amount of loss to your home, car, or belongings can be difficult. Luckily, the IRS has multiple safe harbors that may help with this calculation.

• For example, one method lets a homeowner with casualty losses of $20,000 or less take the lesser of two repair estimates to determine the decrease in the home's value.
• Homeowners can also use the estimated loss in reports prepared by an insurer or a licensed contractor's invoice.
• And there is a safe harbor to help you compute the replacement cost of your personal belongings destroyed in the federally declared disaster.

You can find out more about these safe harbors in IRS Publication 547 and IRS Revenue Procedure 2018-08.

If you suffered a disaster loss last year after July 4, 2025, and you used the old tax rules when preparing your 2025 tax return, you have three years from the filing due date to amend your return by filing Form 1040X to take advantage of the new law.

If you suffer a disaster loss in 2026, you can claim the loss on your 2026 or 2025 federal tax return. That's because individuals can opt to take the loss for the disaster year or the year immediately preceding the disaster.

For example, if a tornado damaged your home or personal belongings this year, you can claim the loss on your 2026 return or your 2025 return, giving you the flexibility to claim it in the year that provides the greatest benefit. If you decide to claim it for 2025 and you have already filed your 2025 return, you can amend it by filing Form 1040-X.

Note that for this purpose, the filing due date for a 2025 amended return is six months after the normal due date for filing your return (without extensions) for the year in which the loss took place. So for 2026 disaster losses, you would need to file an amended 2025 return by October 15, 2027.

IRS Resources

The IRS can be your friend after a disaster. If you lost prior-year tax returns in a hurricane, fire or other disaster, there are multiple ways to get a tax transcript, which is a summary of your key tax information. You can get a paper copy of your full return, but that would take longer.

The IRS also has a dedicated phone line for disaster-related questions: 866-562-5227. This is in addition to the tax filing and tax payment extensions that the IRS regularly provides after a disaster.

Note: This item first appeared in Kiplinger Retirement Report, our popular monthly periodical that covers key concerns of affluent older Americans who are retired or preparing for retirement. Subscribe for retirement advice that's right on the money.

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In the summer of 1960, the Everly Brothers released one of their signature hits, "When Will I Be Loved?" Written by Phil Everly (and made famous a second time by Linda Ronstadt in 1974), the song tells the story of someone wondering why they continue to be overlooked despite remaining loyal and dependable.

More than 65 years later, investors might reasonably ask the same question about one of the largest asset classes in the world.

When will bonds be loved again?

Why have bonds declined?

For most of my nearly 40-year career as a financial professional, bonds were among the most respected investments available. They generated income, reduced portfolio volatility and often rose when stocks struggled, becoming the foundation of the traditional 60/40 portfolio.

That belief was reinforced after the dot-com bust, 9/11, the Global Financial Crisis and the COVID-19 shutdowns. In each episode, Federal Reserve easing generally supported bond prices, reinforcing the idea that at least one part of a diversified portfolio could cushion periods of market stress.

Then came the post-COVID inflation hangover.

Massive fiscal and monetary stimulus, combined with supply-chain disruptions and labor shortages, produced the highest inflation in four decades. The Fed responded with one of the most aggressive interest-rate-hiking campaigns in modern history, raising short-term rates from essentially zero in early 2022 to more than 5% by mid-2023.

The consequences for the bond market were unlike anything most investors had experienced.

Because bond prices move inversely with interest rates, existing bonds declined as yields rose, with longer maturities suffering the largest losses. Investors who viewed high-quality bonds as stable suddenly experienced drawdowns few thought possible.

As of August 1, 2026, the Bloomberg U.S. Aggregate Bond Index had experienced a drawdown lasting 72 months, making it the longest downturn in the index's history. The cumulative decline was nearly twice as large as the second-worst bond downturn on record and lasted almost five times longer than any previous decline.

What comes next?

History reminds us that every asset class eventually experiences a period when investors begin questioning its usefulness. Stocks faced that skepticism after the financial crisis. Gold experienced it after 1980. Energy investments endured it during the pandemic.

Not surprisingly, thoughtful investors have reached very different conclusions about what should come next.

Bob Pozen, an accomplished investor, academic, and former financial executive, recently argued in a Wall Street Journal opinion piece (paywall) that many affluent investors may hold too much in bonds and too little in equities.

For investors whose living expenses are adequately covered by other income sources, he suggested that a 90% stock, 10% money-market allocation could be more appropriate than automatically assigning 40% of a portfolio to bonds.

His argument reflects a broader reconsideration of the traditional 60/40 portfolio. Some investors favor market-neutral strategies, merger arbitrage or other investments that rely less on interest-rate direction. Others believe infrastructure and gold may deserve a larger role.

It is a thoughtful argument. But it is not the only thoughtful argument.

Investment writer Jared Dillian has reached almost the opposite conclusion. His view reflects one of investing's oldest principles: When an asset class becomes universally disliked, it may deserve a closer look rather than immediate dismissal.

Sentiment toward bonds is deeply negative. Many portfolios now hold less fixed income, and bonds receive little attention except when interest rates rise. That is exactly the kind of environment contrarian investors notice.

The fact that two respected thinkers can examine the same evidence and reach opposite conclusions reminds us that investing is less about certainty than about weighing probabilities with humility.

We can't predict, but we can prepare

Perhaps the larger lesson has less to do with bonds than with diversification itself.

For decades, many investors thought of diversification as simply owning stocks and bonds. That framework served investors exceptionally well, but markets continually evolve. Alternative and private investment strategies have become more widely available, giving investors more portfolio construction tools than they had a generation ago.

That does not make the 60/40 portfolio obsolete. It simply suggests diversification deserves thoughtful examination rather than automatic acceptance.

Many investors had experienced only one major bond environment before COVID: A nearly 40-year period of generally declining interest rates beginning in the early 1980s. Falling rates created one of the greatest bond bull markets in history, allowing bonds to deliver both attractive income and significant capital appreciation.

That experience was extraordinary. It was also historically unusual.

Interest rates tend to move in long cycles, sometimes lasting decades. Investors may forget that the period from 1982 through 2020 was every bit as unusual as the last several years, only in the opposite direction. What seemed normal was actually one of the most favorable environments bond investors had ever experienced.

Today's environment may not represent the death of bonds. It may simply mark a return to a more typical interest-rate landscape.

Inflation could remain higher than investors became accustomed to, making bonds less attractive than they once were. Or today's higher yields could produce stronger long-term returns than many investors expect.

Portfolio construction may evolve toward a broader mix of stocks, bonds, cash and alternative strategies. Or, after one of the longest periods of disappointment in history, bonds may quietly regain investors' affection.

Howard Marks often reminds investors that we cannot predict, but we can prepare. That may be the most important takeaway.

Rather than reacting to the past few years, investors should ask whether their portfolios are diversified enough to succeed across a wide range of economic environments. Eventually, every asset class has its turn in the spotlight.

Eventually, every asset class falls out of favor. The challenge is recognizing that today's least-loved investments can become tomorrow's favorites.

So perhaps the better question is not simply, "When will bonds be loved?" It is whether investors will remain disciplined enough to recognize the opportunities when they appear.

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• Should You Buy Individual Bonds?
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• A Lesson From the School of Rock (and a Financial Adviser) as the Markets Go Around and Around
• Does the Market Feel Like We Do? It Does Not, and This Is Why That Matters (Another Lesson From the School of Rock)

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.

Wealth Wise is Kiplinger's advice column on navigating retirement-related dilemmas. Got a question? See below for how to send it.

Dear Wealth Wise: With tuition for private colleges nearing $100k a year, I have four questions about college savings for a child or grandchild.

1. When should you start saving, and how much per year?
2. What happens to any excess money in a child's 529 after they have graduated?
3. Does bankrolling a four-year university still make financial sense given the job market and potential AI takeover?
4. Do you think lawmakers will change the rules on leftover 529 funds if college becomes increasingly less useful in the coming years?

— Stressed Saver

Dear Stressed Saver: Any parent or grandparent trying to finance a child's education knows the struggle of balancing college savings with retirement savings. Still, many are willing to make sacrifices so their children or grandchildren can choose among universities without accumulating a massive pile of debt.

But with a weak entry-level job market and the possibility of AI taking an increasing number of jobs, some may be wondering just how much of an effort to make on the college savings front, and if a four-year degree is even worth it.

Those are exactly the questions one of our readers has for us. They want to understand how to prioritize college savings and whether a 529 plan is the right choice in today's changing landscape.

There's a lot to unpack here, so let's review what our experts had to say.

1. When should you start saving and how much per year?

Retirement savers have an advantage. They can begin funding an IRA or 401(k) in their 20s, potentially giving that money 40 years to grow. The window to accumulate college savings isn't as long, unless you're willing to start socking funds away for education prior to having kids.

Jonathan Codispoti, President at Legacy Wealth Strategies, says that if you're potentially looking to fund a $100,000-per-year education, your best bet is to start at birth. However, he cautions, "You can borrow for college. You can't borrow for retirement."

That's why he advises clients to first max out retirement plan contributions and then allocate what's left to college savings.

Michael Van Boening CFP and Director, Financial Planning at Mercer Advisors, agrees.

"Ideally, you should have a retirement plan of record that shows you are saving sufficiently for a successful retirement before starting to save for education," he says.

But Van Boening also says it’s important to start saving for college as early as possible to give your 529 plan time to compound and grow.

"A public four-year university could easily cost $150,000-$250,000 in future dollars. To fund the average public in-state school 100% in 18 years, you would need to save approximately $700 per month, or $8,400 per year," he says.

Codispoti says one way to get a head start on college savings is to take advantage of "superfunding." You can contribute up to $95,000 per child in a single year using the five-year gift tax averaging rule.

If you're a grandparent, there's a 529 loophole for you. Under FAFSA rules implemented in 2024, distributions from a grandparent-owned 529 account no longer count as student income, meaning they won't hurt a grandchild's financial aid eligibility in most cases.

2. What happens to excess 529 funds?

Some might say having too much money in a 529 plan is a good problem to have. Thankfully, it's less of a problem these days.

As Van Boening explains, "You can always move some or all of the 529 funds to another beneficiary within the family. This extends to siblings, children, grandchildren, even including first cousins."

Another option, he says, is to save the excess funds for the beneficiary's graduate or doctoral degrees. You can even make yourself the beneficiary and use the funds to attend classes to further your education. Plus, 529 plans can be used to pay for vocational school if your child decides not to pursue a traditional college education.

"Most 529 accounts do not have time limits when the money must be withdrawn, so the accounts could be used as an educational legacy for future generations," Van Boening says.

Another important thing to keep in mind is that under SECURE 2.0, excess funds in a 529 plan can now be rolled into a Roth IRA, up to $35,000. But there are some nuances.

"The annual limit is the Roth account contribution limit, and the rollover counts as the annual contribution to the Roth IRA," Van Boening says. As such, based on today's Roth IRA contribution limits, it could take several years to complete a $35,000 rollover.

Van Boening also explains that the beneficiary must match the 529 account beneficiary, and they must have earned income equal to or higher than the rollover amount. In addition, the 529 account must have been open for at least 15 years.

Codispoti calls this flexibility a game-changer.

"This eliminates the old overfunding penalty fear [for most savers]," he says. If you don't need the money for college, it still grows for retirement.

Still, if you've overfunded a 529 plan by $100K, your beneficiary will be on the hook for a 10% penalty and income taxes if they don't use the money for education. That said, proceeds from a 529 account don't incur taxes in many states.

3. Will lawmakers change the rules on leftover 529 funds?

Given uncertainty about the future need for a college degree, our reader wonders whether 529 rules might change even more if college enrollment wanes.

Codispoti's answer? Possibly.

"The trend is toward more flexibility, not less," he explains. Recent legislation already expanded 529 use for K-12, apprenticeships, and Roth rollovers, he says. "If enrollment declines persist, I'd expect further expansion rather than restrictions."

Van Boening has a similar take.

"It’s hard to predict future policy changes, but I would bet that future changes are more likely to increase flexibility than to restrict existing benefits," he says.

4. Does four-year college still make sense?

Even if you're able to juggle retirement savings and 529 plan contributions, you may be wondering if you should even be planning for your children to attend college given the uncertainty that abounds.

Codispoti says four-year college still makes sense. But, he says, "The ROI calculus has changed."

As he explains, a degree still correlates with significantly higher lifetime earnings versus non-graduates.

"However," Codispoti continues, "the real question isn't if college pays off. It's whether their child will graduate with a plan. The days of any degree, any school equaling automatic success are over. Targeted vocational paths, apprenticeships, and entrepreneurship are also viable routes worth serious discussion."

Van Boening, meanwhile, also says a college degree still makes sense, especially for in-demand professional careers.

"The data from the National Center for Education Statistics shows that those with a college degree earn about 59% more than those with just a high school diploma," he says.

But Van Boening also cautions, "It pays to choose wisely, though, because some degree programs do not have a good return on the education investment, especially if the chosen field is not in demand."

Bonus advice: consider the Roth IRA

Although our reader didn't ask this question directly, since they're asking whether a 529 plan makes sense to prioritize, we'd be remiss not to mention an alternative college-saving option — the Roth IRA.

Codispoti says that even though 529 plans now allow for a Roth rollover, "for parents who want maximum flexibility, prioritize a Roth IRA first. Contributions can be withdrawn penalty-free for any reason, including college. Then use a 529 for additional savings."

Van Boening, meanwhile, says that while you can use a Roth IRA to save for college, he still recommends 529 plans. But you should only fund yours up to a point.

"We typically recommend clients aim for saving 75% to 80% [of college costs] in their 529 accounts," he says. Often, he continues, "the remaining balance can be paid for through scholarships, grants, relatives contributing, or even the parent’s own cash flow or savings."

And don't forget that if you end up with a small college savings shortfall, your child can always borrow. So if you need to limit college savings to prioritize your own savings, you shouldn't think twice.

As Codispoti says, "Never sacrifice your own retirement to fund college. Your kid can get a loan. You can't get a retirement loan."

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 writers and experts in this advice column 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 adviser regarding any questions you may have in relation to the matters discussed in this article.

MORE WEALTH WISE ADVICE ON COLLEGE SAVINGS

• Should You Upsize When College Tuition and Retirement Collide?
• Should We Bankroll Our Son's $180K Law School Tuition Even Though We're Retired?
• 'Subsidized Adulting': Can You Afford to Help Your Children Financially?

Read More

• We're 54 With $1.8 Million. My Wife Wants to Start a College Fund for Our Grandson, but I Think We Should Keep Funding Our Retirement.
• 529 Funds and a Roth IRA: How to Use One to Jumpstart the Other
• We're 75 With $3.2 Million. Our Grandchild Needs Help Paying for College, but It's Not Our Fault She Picked a School That's $90k a Year!

I've gotten pretty good at recognizing AI-generated emails. A client sent me one recently about their portfolio — formal, thorough and missing the person I knew on the other end. I asked about it.

Sure enough, they had fed their account information into an AI tool, asked a few questions and forwarded the result. They were thoughtful and proactive. They were also outsourcing a conversation that I would have preferred to be between the two of us.

I'm not here to argue that AI isn't useful. It is. I use it myself, and I'd encourage clients to use it too — as a starting point. It's a handy way to educate yourself and a tool for thinking more clearly before a conversation.

But there's a difference between a tool that helps you think and one that thinks for you. In financial planning, that difference matters enormously.

What AI does well, and where it falls short

AI can model a real estate transaction. It can simplify dense information. It can tell you the fastest path out of debt or project the growth of a retirement account over 30 years. It solves the blank-page problem: When you don't know where to start, it gives you somewhere to begin.

What it doesn't have is intuition, emotion, common sense or imagination. In my experience, those four things are what determine whether a financial plan actually works for the person who has to live it.

Consider something as straightforward as a mortgage. When interest rates were near historic lows, the math was clear: Keep the debt, invest the difference, earn a greater return. That spreadsheet was right.

But for some clients, the idea of owning their home outright matters more than any rate-of-return calculation. It's visceral. It's about security and identity and a feeling that no model captures.

I've learned not to fight it. When someone is choosing between two good options and one of them speaks to something deep, the right answer isn't always the optimal one.

The machine doesn't know you

Risk tolerance is another place where this shows up clearly. A portfolio model can tell you that, based on your age, timeline and assets, you should be fully invested in equities. And maybe you should.

But if you're the kind of person who can't sleep when markets fall — who will sell at exactly the wrong moment because the pain has become unbearable — that "optimal" allocation was never right for you to begin with. Human nature, in my experience, is undefeated. The best financial plan is the one you can actually live with.

I've also seen AI confidently deliver wrong answers, with no indication that anything was off, on things like tax situations, withdrawal strategies and rules that vary by state or year. The output is only as good as the question, and most people don't know what they don't know.

That's not a knock on the technology. It's a reminder that for high-stakes decisions, accuracy isn't enough. You also need judgment.

And then there's the kitchen table. So many of the financial decisions that shape a family's life happen in conversation — over a meal, in the car, in the quiet after the kids go to bed. Those conversations draw on decades of shared history.

You know what makes your spouse nervous and what makes them feel safe. You know what your parents modeled, what worked and what didn't, and what you want to do differently.

The machine doesn't know any of that. It can't ask the right follow-up question, sense that something is being left unsaid, or recognize that the numbers are only half the story.

A partner, not a substitute

Here's what I've come to believe: AI works best as a partner in this process, not a replacement for it. Use it to educate yourself, clarify your thinking, and to prepare for the conversations that actually matter.

But before any decision that carries real weight, like a retirement, an inheritance or a major life transition, bring it to someone who knows not just your portfolio, but your history, your family, your values, and what you actually want your money to do for your life.

The goal of financial planning has never been to produce the most mathematically elegant outcome. It's to help people build lives they feel good about. That work has always required something a machine can't replicate: The ability to understand a person, in full, and help them move toward what they actually want.

AI can build a budget. It can't build a life. That part is still ours.

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• Are You Hesitating to Spend Money You've Spent Years Saving? Here's How to Get Over It, From a Financial Adviser
• I'm a Financial Adviser: When Managing Your Wealth Feels Like a Pain, Simplify

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.

Few subjects are as difficult to consider as your own mortality. "Americans are famously afraid to talk about death," says Tanya Marsh, a Wake Forest University professor who teaches a class on funeral and cemetery law. "We almost willfully don’t want to confront the inevitability of the end."

So if you’re like most people, planning your own funeral is not top of mind. But making your wishes known before you pass away can be a real gift to your family, says Sara Williams, past president of the Funeral Consumers Alliance, the watchdog organization for the funeral industry.

Emotions run high following the death of a loved one, and outlining whether you would like to be buried or cremated, the type of memorial you prefer, and other elements of your end-of-life services relieves your family of making those decisions while they’re grieving.

"It gives the family peace of mind because they don’t have questions like, ‘What did Mom or Dad want?’ Mom or Dad already answered those questions," says Camelia Clarke, president of Paradise Memorial Funeral and Cremation Services in Milwaukee and a spokesperson for the National Funeral Directors Association. Clarifying your wishes can also help head off family disputes, she says.

Planning your own funeral can save your family money

Planning your funeral may alleviate the cost burden, too. According to a study by the National Funeral Directors Association, from 2021 to 2023 (the most recent data available), the median cost of a funeral with a casket and burial increased by 5.8%, from $7,848 to $8,300; the median cost of a funeral with cremation, including a cremation casket and urn, rose by 8.1%, from $5,810 to $6,280.

By creating a plan now, you may be able to lock in current costs on some aspects of the funeral or set aside the right amount of funds to cover the expenses later.

Another reason to make your own arrangements: You get a say in them. Increasingly, baby boomers are planning their funerals because they are more likely to shun a traditional service involving an open-casket viewing at a funeral home and a graveside service to bury the remains, says Marsh.

She has seen a growing interest not just in standard cremation but also in practices such as water cremation and natural organic reduction (human composting), as well as in memorial services at locations such as museums, parks and restaurants.

Settling the details in advance can make it easier on your family

If your children or other relatives don’t live near you, or if you plan to be buried in a different geographic area from where you live now, settling the details ahead of time can ease the logistics for your family.

Michael Adell, of Frisco, Texas, experienced that challenge firsthand when his father passed away last year. His father, who was also living in Texas when he died, had purchased cemetery plots for himself and his family in Michigan, where he was raised. But he hadn’t made any other plans. Adell had to handle such matters as flying his father’s body to Michigan and then getting him to the funeral home.

"You’re learning when you’re doing, which makes it stressful and hard with all the other emotions that are going on," Adell says.

Eager to avoid that situation again, Adell approached his family members and offered to plan their funerals as well as his own. His mother, his wife and his brother all agreed to it. When his mother died suddenly just a few months later, "all I had to do was call the funeral home, and they did everything else," he said. "It was a lot easier."

Decide your arrangements

The first step is to decide the kind of arrangements you want. Details can include any elements that you feel are important, whether it’s selecting a funeral plot, headstone or cremation urn, choosing who will give the eulogy, specifying a photo you want in your obituary or the clothes you’d like to be buried in, or even listing the type of food to be served at the memorial service.

Clarke recalls one individual who loved M&M’s and requested to have bowls of the candy placed around the funeral home, while another wanted a lakeside service featuring an all-white color scheme. "The casket was white, and everyone at the service wore white," Clarke says. Engaging in this planning allows the individual "to be very specific in what they want."

Adell designed his family members’ footstones, right down to the font and height of the lettering and leaving room just for the date of death, to ensure they would look consistent. "It’s a dumb detail, but it’s a detail I get to control because I’m here," he says.

Consider the costs and how you'll cover them

You’ll also need to think about the costs and how you’ll cover them. Ask several funeral homes for a general price list, an itemized menu of all their goods and services; funeral homes are required to provide this list, says Williams.

Shopping around could save you a lot of money, she says, pointing out that in the same town, a direct cremation (which involves no viewing, visitation or other services) could vary in price by thousands of dollars.

Many funeral homes allow you to pay for some or all the services in advance, and you may be able to lock in current prices by going this route. But think twice before you make a financial commitment. What happens if the funeral home goes out of business, or if you move away and no longer want to use its services?

And you need to make sure you understand whether additional expenses may apply at the time of your death, even if you pay now. Because the cost of certain items, such as transportation and cremation, increase over time, some funeral homes will make prearrangements with you via a contract but will not guarantee current pricing, says Katie Sheehan, a former estate-planning attorney and now a managing director and wealth strategist at Crestwood Advisors in Boston.

"It is important for clients to know which they are purchasing," she says. "Always read the fine print."

Buying a cemetery plot and structuring your arrangements in advance are good steps to take, says Williams, but she discourages prepaying for the entire funeral. Instead, she recommends opening a payable-on-death account, in which you can deposit enough money to cover the estimated expenses. When you die, the designated beneficiary receives the funds.

Put the plan in writing

Once your plan is complete, put it in writing, and make sure your loved ones know about it. Many estate-planning attorneys prepare a binder for clients that includes a funeral tab where they can leave instructions to family members, including their wishes regarding disposition and services, says Sheehan.

If they have made prearrangements with a funeral home, that would also be the place to keep a copy of that paperwork. And regardless of whether you work with an attorney, you can have conversations with your loved ones about your wishes and provide them with written copies of the plans and documents, says Marsh.

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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Most retired couples rely heavily on Social Security benefits. When one spouse dies, there's often a major loss of their benefits.

The surviving spouse will get either their own benefit or the survivor benefit (the deceased spouse's benefit), whichever is higher. If one spouse's benefits are low, the impact on income will be small.

But when both spouses are collecting substantial benefits, as is often the case, there will be a significant reduction that could last for many years.

That can cause a shortfall because living expenses may not decline very much. If the survivor stays in the same home, property taxes or rent, utilities, insurance and some other monthly expenses remain about the same.

For example, Jim Jones collects $2,500 a month, and June Jones gets $2,000. If one of them dies, the survivor will receive $2,500 a month — a 44.4% drop in total benefits. If both are getting $2,500, the drop would be 50%.

One way to offset a decline in future Social Security benefits is to buy a joint lifetime income annuity. It provides a stream of guaranteed income that continues after the death of a spouse. You must choose when your payments will start when you sign up. Some products, however, may allow you to change the start date.

A fixed indexed annuity with an income rider, a more complex product, also provides guaranteed lifetime income. The big advantage is flexibility: The starting date for income is not set when you buy the annuity. You can begin when you want.

A traditional lifetime annuity produces generous income "forever"

An income annuity can cover one person or both spouses. A joint income annuity pays the survivor the same income stream after one spouse has died. It can help fill the income gap that is created when Social Security benefits plummet after a spouse's death.

You can choose an immediate or a deferred annuity. With a deferred income annuity, the longer you defer payments, the greater they'll be.

How much income can you get?

For example, the Joneses are 67 years old and healthy. They deposit $200,000 in a joint deferred lifetime income annuity. They decide to start receiving payments at 80. With one of the highest-paying products on the market (as of August 2026), they will receive $3,758.07 a month for as long as either is living.

Of that amount, only $2,454.02 will be taxable, as the remainder is considered a non-taxable return of principal. If at least one of them lives long enough for the entire principal to be repaid, the income will continue but become fully taxable. This is where the insurance aspect kicks in and why an income annuity serves as longevity insurance.

Here's a different scenario. Jim is in bad health and doesn't expect to live more than a year or two. He wouldn't be eligible to buy more life insurance, but annuity companies don't care about a buyer's health.

The couple decides to purchase an immediate income annuity. If they buy a joint lifetime immediate annuity with a $200,000 deposit, they'll soon start receiving $1,237.65 a month (only $519.81 taxable) from one top insurer.

If Jim lives longer than expected, that's fine. If he doesn't, June will have a cushion to make up for reduced Social Security benefits.

Alternatively, Jim and June could put part of their money in an immediate annuity and part in a deferred income annuity, or they could purchase an income annuity payable only on June's life, which would provide a higher guaranteed income.

The traditional income annuity typically has no cash surrender value. You've traded your money for a stream of income — your own private pension.

Indexed annuity: Cash value plus guarantee gives flexibility

A fixed indexed annuity offers a different, more flexible path to guaranteed lifetime income.

These products guarantee a portion of the stock market's gains during up years while offering complete protection from loss during down years. They credit interest based on the growth of a market index, such as the Dow Jones Industrial Average or S&P 500. So while you typically don't get all of the return when the market is booming, in return, you lose nothing in down years.

By adding a guaranteed lifetime-income rider, you can assure future income. Since the starting date for income is not set when you buy the annuity, you can start getting payments whenever you want to. This is a great feature because even a retiree in great health can die unexpectedly.

Have cake and eat it, too, but no free lunch

Normally, when you convert an annuity into an income stream ("annuitization"), its cash surrender value becomes zero. That's not the case if you add an income rider. You still own the full unused value of your annuity: You can "have your cake and eat it too."

But there's no such thing as a free lunch. Most insurers charge around 1% annually of the assets in the annuity to add an income rider. That's significant: Your money will grow more slowly than without the rider.

The lifetime income payment amount is determined by the income account value and your gender and age at the time you start receiving payments. The income account value typically grows at a guaranteed annual compounded rate of 4% to 8%, so the longer you wait, the greater the income.

The income account value and cash value of your contract are separate. The income account value is used only to calculate your guaranteed income payments. It has no cash value and cannot be withdrawn.

In contrast, the contract value can be withdrawn or passed to your heirs. After many years of guaranteed income payments/withdrawals, the contract value may fall to zero, but you'll still get the same income for life.

Another downside is fluctuating interest rates. If the market goes through a long bear cycle, you may earn nothing on your contract value for several years.

Nevertheless, having cash value and flexibility are powerful advantages that make indexed annuities worth considering for generating a strong stream of income.

There's no one approach that's best for everyone. The traditional income annuity and the indexed annuity plus income rider each have their pros and cons. For some couples, the former will fit the bill; for others, the latter will.

This article covered a basic scenario where each spouse is collecting Social Security. If one spouse is significantly younger, planning can be a bit more complex. Nevertheless, the same general principles hold.

Ken Nuss is the founder and CEO of AnnuityAdvantage, a leading online provider of fixed-rate, fixed-indexed, and lifetime income annuities. Ken is a nationally recognized annuity expert and widely published author. A free rate comparison service with interest rates from dozens of insurers is available at www.annuityadvantage.com or by calling (800) 239-0356. The firm also offers an income-annuity quoting service. There are no fees or charges for the firm's services; 100% of the client's money goes to work for them in their annuity.

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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.

For many people looking for a tax-friendly retirement, no-income-tax states like Florida usually top the list. But recent data indicate an interesting trend: More and more older adults are choosing a small Mid-Atlantic state where the retirement math is more interesting than some might expect.

We’re talking about Delaware.

According to U.S. Census Bureau data, Delaware’s population of residents age 65 and older has increased by 23% since 2020. That’s the fastest growth rate in the nation for the 65-and-older population, according to Census estimates.

Part of the draw might be that newcomers to beach communities like Lewes, Rehoboth Beach and Milton can enjoy a coastal lifestyle without moving far from family and friends elsewhere in the Northeast and Mid-Atlantic.

Interestingly, though Delaware isn't a zero-income-tax state like retirement powerhouses Florida or Texas, taxes factor into the equation for some retirees running the numbers. Here’s more to know.

Why Delaware is becoming a retirement destination

Delaware is becoming increasingly popular with older adults.

• Seniors now make up nearly 22% of the state’s population, according to USAFacts, compared with roughly 18% nationwide.
• In Sussex County, older adults make up nearly a third of residents, pushing the median age to just over 53 years, according to U.S. Census estimates.

New residents are also arriving with financial resources. The latest available IRS migration data show that households moving into southern Delaware from higher-cost states have average annual incomes over $136,000.

So what makes Delaware appealing as a retirement destination? The answer lines up in several ways with what many retirees say they want in a place to live.

• A 2025 survey from the Transamerica Center for Retirement Studies found that an affordable cost of living was the top consideration, cited by 65% of retirees, followed closely by proximity to family and friends at 61%.
• Access to excellent health care and hospitals ranked third, cited by 49%, while 28% pointed to leisure and recreational activities.

Delaware's healthcare infrastructure is geared toward an aging population. For example, in Sussex County, Beebe Healthcare operates a 210-bed medical center in Lewes, while ChristianaCare has reportedly expanded primary care and senior-focused services in Rehoboth Beach and Milford.

Additionally, retirees from neighboring Mid-Atlantic states may choose Delaware for its proximity to children, grandchildren, and longtime friends without giving up a coastal lifestyle.

There’s also plenty to do beyond the beaches.

Southern Delaware offers miles of hiking and biking trails, including those at Cape Henlopen State Park and the Junction & Breakwater Trail linking Rehoboth Beach and Lewes, along with boating, fishing, and golf. Other areas are bustling with restaurants, boutiques, and galleries, plus live music, festivals, and other events throughout the year.

Those amenties help explain the First State’s appeal. But for some retirees from higher-cost states, the retirement math also includes taxes.

How Delaware taxes retirement income

Delaware levies a progressive state income tax with rates ranging from 2.2% to 6.6%. However, retirees rarely pay Delaware income tax on their full income. That’s because:

Delaware exempts Social Security benefits from state tax. (The state also doesn’t tax Railroad Retirement benefits.)

Delaware offers retirement income exclusions. Residents age 60 and older can exclude up to $12,500 of eligible pension and retirement income from state taxable income. Qualifying sources include distributions from IRAs and 401(k)s, as well as dividends, capital gains, interest, and net rental income.

For a married couple where both spouses are at least 60, each spouse can generally claim up to a $12,500 exclusion for eligible retirement income, for a combined potential exclusion of $25,000.

For some retirees, those exclusions could result in a lower state tax bill than they would face on the same retirement income in other states.

Note: We're talking about state tax liability. You still may have federal taxes on retirement income to consider.

Sales and property tax tradeoffs

However, income taxes are only part of the tax equation. Delaware offers zero sales tax and relatively low property taxes.

• No sales tax: Delaware has no state or local sales tax, which can reduce the cost of everyday purchases and larger expenses. (Florida, by comparison, has a 6% statewide sales tax, plus local surtaxes in many counties.)
• Low property taxes: Delaware’s effective property tax rate is about 0.54%, compared with 0.78% in Florida, according to 2026 Tax Foundation data. The actual difference depends on the home’s value, location, and applicable exemptions.

But…that doesn't necessarily make Delaware the cheaper place to own a home.

Sussex County's growth (nearly 40,000 residents in the past six years) has reportedly increased housing demand and pushed prices higher. That can be good news for people who already own homes there, but it can be a different story for retirees just arriving.

Someone moving to Delaware for retirement from a high property-tax state might see lower property taxes while paying more for the house itself.

Delaware vs Florida cost of living

While Florida draws attention for having no state income tax, the full financial picture can change once other costs enter the calculation.

The following table shows how various costs might add up.

Average Annual Costs in Florida and Delaware

Note: This comparison, for educational purposes only, assumes a $500,000 primary residence, $500,000 in homeowners insurance dwelling coverage, and $20,000 in annual taxable purchases. Property-tax estimates use 2026 statewide effective rates; insurance estimates use 2026 published rates; and Florida sales tax uses the 2026 average combined state and local rate.

State income taxes are excluded because they vary by income, deductions, and exemptions. Actual costs vary by location, coverage, exemptions, and spending.

Is retiring in Delaware a good idea? Bottom line

For some retirees, the appeal of a retirement state isn't always about finding the lowest income-tax rate. It's about what happens when you add up all the smaller pieces of the budget.

Before choosing a retirement destination, consider the sometimes seemingly "hidden" costs that follow you into retirement — including how retirement income is taxed, what you'll pay to own a home, and how much you plan to spend each year.

The state you might assume to be cheapest due to having no income tax might not necessarily be the one that leaves you with the most money to spend.

Related

• College Towns Are Becoming Popular Retirement Destinations
• Retirement Taxes: How All 50 States Tax Retirees
• How the IRS Taxes Retirement Income
• The Five States With No Sales Tax

Inflation has been running hot for over five years now.

We know how this affects our grocery bills. We get an ugly reminder of that every week.

But how does it impact our long-term investment returns?

Consider the S&P 500 since its inception in 1957. The index delivered compound annual returns, including dividends, of 10.6%. But stripping out the effects of inflation, that number drops to 6.8%, nearly 400 basis points lower than the number quoted in most marketing materials.

That might seem small, but it makes an enormous difference over time. One thousand dollars in 1957 compounded at 10.6% would be worth over $1 million today. That same $1,000 compounded at 6.8% would be worth about $94,000. That's a massive difference!

Winners and losers when inflation runs hot

Our accounts are measured in dollars. Inflation erodes the value of those dollars, which skews our perception of what our investments are worth. But not all assets are impacted equally. Let's take a look at how the broad asset classes performed during the last major period of sustained inflation, 1973 to 1981, when it averaged around 9.2% per year.

We'll start with what got hit the hardest. Long-term bonds were the decade's biggest casualty, losing nearly 40% of their value in real terms, even after coupon payments. When inflation is rising, bond yields have to rise to keep pace. And the way bond math works, rising yields mean lower prices. The longer the time to maturity, the more sensitive a bond is to yield changes.

What does this look like in today's market?

The iShares 20+ Year Treasury Bond ETF (TLT) reports an effective duration of about 15. In simple terms, this means that every 1% rise in interest rates results in an approximate 15% decline in TLT's share price. A 2% increase in rates can lower the value of the bond fund by around 30%.

Bonds are a mainstay in the portfolios of most retirees because they pay income and they're perceived as being less risky than stocks. But in a period of high inflation, bonds actually increase risk rather than mitigate it.

What about stocks?

Inflation hurts stocks too, and particularly growth stocks whose valuations are based on earnings estimates years or decades in the future.

Here's why. A dollar of earnings to be received five or 10 years from now is worth a lot less in today's dollars when inflation and interest rates are higher. So, the higher that interest rates go due to inflation, the less those future earnings are worth.

This isn't academic. We saw firsthand how the stock market reacted to the Federal Reserve's interest rate shock in 2022. By October, the S&P 500 had fallen almost 27% before rebounding slightly in the fourth quarter. Going back even further, the S&P 500's return between 1966 and 1982 was a cumulative 51% over those 16 years. That's a paltry compound return of less than 3% per year. But at least it's positive, right?

Not after accounting for inflation. The inflation-adjusted S&P 500 lost about half its value over that stretch.

Not everything was a flop during that time frame, of course. Gold enjoyed a monster run, rising from roughly $35 per ounce to $850 for a return of more than 2,000% in nominal terms. Commodities in general performed well, though this is partly skewed by the effects of the two oil shocks of the 1970s.

Real estate also proved to be a fantastic inflation hedge, particularly if it was leveraged. The median price of a new home rose from $23,400 in 1970 to $64,600 in 1980. If you had purchased your home with a mortgage before the 1970s, your leveraged return would have been several multiples of that … plus you got to pay back the mortgage in depreciated dollars.

Commercial properties were another winner, as landlords were able to raise their rents to keep pace with inflation. And farmland roughly quadrupled in value in the 1970s.

So, while inflation wreaked havoc on traditional "paper" portfolios, investors who had diversified into hard assets did just fine.

What about the Fed?

Inflation affects the way assets are priced. But it also impacts the underlying fundamentals. Inflation influences Federal Reserve policy, which in turn changes how fast the economy — and corporate earnings — can grow.

The Fed operates under a "dual mandate" from Congress: maximum employment and stable prices. When inflation runs hot, the Fed's playbook is to raise its benchmark federal funds rate to cool demand for borrowing.

Higher policy rates ripple outward into higher mortgage rates, higher corporate borrowing costs, and higher hurdle rates for new business investment. That's not a bug; it's a feature. The Fed is deliberately trying to slow the economy down enough to bring price growth back under control.

In this scenario, Nike (NKE) sells fewer shoes and Starbucks (SBUX) sells fewer lattes. Microsoft (MSFT) and Amazon (AMZN) build fewer data centers, which means Nvidia (NVDA) sells fewer chips. Sales and earnings growth cools, and that slower growth gets translated into lower stock prices.

This is why stocks struggle during inflationary times. Not only are their future earnings discounted more heavily into today's dollars, but the estimates of those future earnings are themselves revised lower.

What's different today for investors and what isn't?

It was a lot harder to diversify in the 1970s. Treasury Inflation-Protected Securities (TIPS) didn't exist until 1997. Commodity and gold ETFs didn't exist until the 2000s. And more exotic investments such as commercial real estate or farmland were too expensive and too complicated for the average investor to buy.

Today, an investor's biggest risk is being overwhelmed by choice. For virtually any inflation-fighting strategy, there are likely a half dozen off-the-shelf ETFs available to choose from.

So, how should we approach this as investors?

Make sure your portfolio is well balanced between stocks, bonds and inflation hedges like gold, commodities or real estate. You don't need to dump your stocks and bonds entirely, but introducing inflation hedges into the mix can reduce your risk and potentially boost your returns.

The beauty of diversification is that you don't have to get it exactly right. Being overweight or underweight by a few percent in any asset class isn't likely to make the difference between a luxurious retirement and total ruin. But having some inflation protection in the portfolio really can make a difference to your long-term returns.

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• How to Pick the Right ETF for Your Financial Goals
• How the Federal Reserve Affects Mortgage Rates

I've lived in Florida for more than 30 years. In that time, I've watched thousands of people move here to retire — and I've seen a smaller but steady number of them get surprised by tax rules and costs they didn't know existed.

Most of these surprises are avoidable. You just need to know where to look before you need the answer, not after

As a wealth adviser, here's what I tell people at Evolution Retirement Services' seminars on retiring in Florida, boiled down to the basics.

'Snowbird' isn't a tax status

Spending winters in Florida and summers up north feels like the best of both worlds. But if you still own a home, register to vote or hold a driver's license in your old state, you may still owe that state income tax — even while soaking up the Florida sun six months a year.

Florida has no state income tax. That's a big reason people move here. But "no state income tax" only applies to Florida residents. If your old state still considers you a resident, too, you can end up filing (and owing) in both places.

The fix isn't complicated, but it does require some legwork:

• Spend more than half the year here. Most states use a 183-day rule. Keep a simple calendar or travel log — it matters more than people expect if you're ever questioned.
• Move your legal documents. Your driver's license, voter registration and vehicle registration should all point to Florida.
• File a declaration of domicile. This is a short form at your local county clerk's office that formally states that Florida is your permanent home. It costs very little and takes only a few minutes.
• Update your estate documents. Your will, power of attorney and healthcare directive should be reviewed by a Florida attorney, since some states have different requirements.
• Cut the cord, don't just add a state. If your old state's tax authority sees you keeping a home, a library card, a doctor and a bank account there, they may argue you never really left. Some states are aggressive about this; it's worth taking seriously.

Homestead exemption: Don't leave this money on the table

If Florida is your permanent residence and you own your home, you likely qualify for the homestead exemption. It reduces the taxable value of your home for property tax purposes — often by $50,000 or more.

It also caps how much your assessed value can increase each year (called the Save Our Homes assessment limitation), even if your home's market value jumps.

A few things people miss:

• You have to apply — it's not automatic. The deadline is typically March 1 of the year you want the homestead exemption applied.
• The exemption only applies to your primary residence. A vacation condo or rental property doesn't qualify.
• The exemption is tied to you, not the house. If you move, you'll need to reapply at the new home. (Florida does allow you to carry over some of the Save Our Homes benefit, however. This is called "portability.")
• Other exemptions. Widows, widowers, veterans and people with disabilities may qualify for additional exemptions on top of the standard homestead benefit.

Other traps we often see

Estate and inheritance tax exposure from your old state. Florida has no estate or inheritance tax. But if you still own property, a business interest or certain accounts tied to a state that does, that exposure may not disappear just because you moved.

Insurance costs catching people off guard. Florida's homeowner's insurance market has gotten more expensive and, in some areas, it's harder to find coverage at all. This isn't a tax, but it's a real cost of living here that surprises transplants used to lower premiums up north.

Flood insurance is a separate policy and separate cost — don't assume it's included.

Assuming "no income tax" means "no taxes." Florida makes up revenue through other channels — property taxes, sales tax and insurance costs among them.

For most retirees, the math still favors Florida, but it's worth looking at your full picture rather than assuming income tax is the only line that matters.

Timing the move around tax season. If you move midyear, you may owe part-year taxes in your old state. Working with your tax preparer to time the transition — and to gather the paperwork trail (utility bills, mail forwarding, that declaration of domicile) — can save real headaches if your prior state asks questions.

The bottom line

Florida can be a genuinely smart move for retirees, both financially and for quality of life. I've watched it work out well for most people who plan for it properly.

The retirees who run into trouble are almost never the ones who moved here for the wrong reasons; they're the ones who assumed the paperwork would take care of itself.

If you're planning a move to Florida or you moved here and aren't sure you've closed the loop on residency, it's worth a conversation with both a tax professional and a Florida estate attorney before your first tax season here.

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• I'm a Financial Adviser: This Is the Real Secret to Retirement Success
• Is It Time for Retirees to Break Up With Bonds?

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.

For decades, Social Security has served as a foundational piece of retirement income. But for younger generations, the program's outlook is changing, and those changes have significant implications for long-term financial planning.

With Social Security reserves expected to be depleted by 2033, millennials, Gen Z and subsequent generations will likely need to approach Social Security as an additional source of income rather than the cornerstone of a retirement strategy.

This article outlines practical strategies you can implement to help save enough for retirement, independent of Social Security.

Lifetime contributions may increase

To resolve funding shortfalls, policymakers may consider increasing payroll taxes or taxable wage bases. You may end up contributing more over your lifetime while receiving proportionally fewer benefits.

This is why effective tax-efficient planning is increasingly important. Focus on diversifying your retirement accounts, such as Roth, traditional pretax and taxable brokerage accounts, to help maintain flexibility under shifting policies.

Retirement timelines are becoming more dynamic

Another proposed solution is increasing the full retirement age, which could require younger workers to remain in the workforce longer before accessing full benefits.

Meanwhile, the costs associated with buying a home, paying off student loan debt and rising inflation are making it increasingly difficult to save for retirement.

You're facing a more complex financial background than previous generations and you should plan for a longer investment horizon. By staying invested for a longer period, you can help offset both delayed benefits and longer life expectancy.

Personal capital can help drive retirement success

For older generations, Social Security often covered a significant portion of retirement expenses. For younger generations, that dynamic is changing dramatically. Retirement outcomes are likely to rely heavily on consistent saving, disciplined investing and long-term portfolio growth.

Apart from getting started early, one of the best ways to help secure a comfortable retirement is to optimize your saving, investing and financial habits.

Maximizing the use of tax-advantaged accounts in the right order is one of the most efficient things you can do. The first step, if applicable, is to contribute enough to your workplace retirement plans to receive the full employer match.

From there, you should consider contributing to Roth IRAs and Roth 401(k)s, which can be beneficial during lower-income earning years, potentially allowing for long-term tax-free compounding. Health savings accounts (HSAs) can also offer additional tax-efficient advantages.

As income rises, increasing pretax contributions can help reduce taxable income while accelerating retirement savings. Combining these two strategies can help you work towards improving long-term outcomes and becoming financially independent.

Equally important is how you structure your investments. A high overall asset allocation in equities typically allows younger investors to leverage their time horizon to their advantage.

Behavioral discipline is also a key factor. If you can stay consistent, avoid emotional short-term market timing and maintain steady contributions, you will hopefully perform better over the long term compared to those who react to short-term volatility.

The bottom line

Social Security should still be part of your retirement picture — but not the foundation.

For younger investors, there is a clear shift from dependence on public benefits to ownership of private outcomes.

Those who recognize this early and invest accordingly may be better positioned to maintain control over their financial future, regardless of how the Social Security system ultimately evolves.

Ultimately, successful retirement planning is less about predicting changes and more about optimizing what you can control: Savings behavior, tax efficiency, investment structure and long-term discipline.

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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.

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 Boston-based 70-year-old married Realtor who has no plans to retire. She reports shifting to real estate after working in corporate sales and leadership roles for the first 20 years of her career. Her salary over the years has ranged from $18,000 at her first job to six figures with a corporate job.

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?

I bought my first stock at 12 years old and learned about investing from my dad. I had three roommates to help pay the rent back in the '70s. I bought my first home at 21 years old for $47,000 with 20% downpayment help from my dad. By 28, I had bought four rental homes to build wealth.

I actively invested in my company 401(k) over the years.

I made my first million once I switched to being a Realtor. Being self-employed, I learned to max out my self-directed 401(k) — now I put $72,000 a year away in this account. Started contributing in 2009.

My accountant called and said, You can pay $$ to taxes or $ to yourself and start a self-funded 401(k), so I paid myself!

What are you doing with the money?

I've kept it invested in stocks and hired a finance manager, who has helped it grow from my first million.

My goal at the time was $3 million. That was what I had learned from the finance people.

At $3 million and a 4% withdrawal rate, I would have $120,000 per year plus Social Security income.

The Fun Stuff

Did you do anything to celebrate?

No, my goal was $3 million. However, now we take elaborate vacations to celebrate our success.

What is the best part of making $1 million?

I don't worry about finances anymore. I have the money for life expenses that come, vacations and helping our young adult children.

Did your life change?

Yes, it made life a little easier and relaxed. We are able to travel with our family and explore the world.

Does anyone know you're a millionaire?

My family — we talk with the kids and educate them on investing, credit cards, expenses and investing in rental property.

Any plans to retire?

I have not retired — I could. I just enjoy working.

Now I am mentoring others on my team to help them grow and learn about investing and real estate.

Looking Back

Anything you would do differently?

I opened credit cards early on. Now I would give the advice: Do not open credit cards. You just spend money you don't have. Then you pay high interest!

Instead, create buckets and contribute religiously.

What advice would you give to your younger self?

Its easy to get to $1 million if you invest in yourself first and start with your first paycheck.

Build wealth through investing on day one with your job and buying rental property and paying one extra payment on your mortgage every month! (I bought a rental home by buying my home and then trading up but keeping that home as a rental property for the past 30 years.)

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

The Millionaire Next Door: The Surprising Secrets of America's Wealthy by Thomas Stanley and William Danko

Did you work with a financial adviser?

I did not work with a financial adviser. I read a lot, talked with friends, and my dad helped give me great advice.

Did anyone help you early on?

I had the great fortune of listening to smart people along the way and asking questions. I had a few people I looked up to.

My mom and dad came from nothing and were very smart. We grew up with very little but were very happy! My parents were very instrumental in teaching us about life, investing and building wealth.

My favorite person was my high school teacher — she had a class on personal finance, and I learned so much about checking accounts, credit cards, investing, unexpected expenses that happen. I was 16, and I'll never forget.

I don't see high schools teaching that. Every week, the class would pretend — we would get a paycheck, and we could do what we wanted, but we had to pay rent, utilities, living expenses, etc.

We had to balance our checking accounts every month. We would get a bill we would have to pay. Maybe we would get a flat tire and have to decide whether to pay for one or whether we had money to pay for four, etc.

It was so great. They would create scenarios — like, you got a bonus, or you got fired, or you got an inheritance. You needed to buy a car, or you'd have unexpected expenses, health bills, etc.

High schools should offer this as a mandatory class!

Looking Ahead

Plans for your next $1 million?

I have built a sizable estate. At this point, we are letting our investments grow.

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

The first job you get, set up a bucket savings account. Separate your savings accounts: 20% bucket for savings, bucket for investing, bucket for vacations.

Max out your 401(k). If you can put money in a Roth IRA as well, even better.

I took money out of each paycheck and directed dollars off the top so I would not get used to the total paycheck I received. When I would get a raise, I would increase the amount I put away. We tend to get used to our paychecks and enjoy the money, spend on credit cards, etc.

Don't use credit cards — or pay them off every month.

Pay extra every month on your mortgage. They say if you add one extra mortgage payment, it will reduce your mortgage length by seven years on a 30-year mortgage. I do this on every home we have purchased!

Plan to keep your car for at least seven to 10 years. You don't need the latest or fanciest car.

Couples with kids: Start putting $6,000 a year away for your children starting the year they are born and every year after. It will compound and pay for college. If they don't go to college, it will pay for a down payment on their first home or to get started after high school.

Live your life and have fun along the way — don't forget to take vacations.

Don't count on Social Security income — consider that bonus money.

Do you have an estate plan?

We do have an estate plan. We put it in place 20 years ago. We have a revocable trust, will, durable power of attorney, medical, etc.

We also created revocable trusts for our kids when they were in their teens.

What do you wish you'd known …

When you first started saving? I wish I had researched more about the value of compounding. It would have opened my eyes to saving more money. Now I teach my kids about the value of that and the Rule of 72!

When you first started investing? I wish I had known more about ETFs, bonds, etc. I mostly only knew about stocks. I wish I had understood more about the markets. I wish I had thought about investing in an apartment building.

Before you retired? I wish someone had a clear explanation on life when you retire instead of having to DIY.

Anything you'd like to add?

I grew up poor/middle class and now have an eight-figure estate from being curious and asking questions about investments and real estate. We have built our wealth through saving and investing in the stock market and rental homes!

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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Retirement often requires adopting a new mindset.

When you were saving for retirement, you were in the accumulation phase as you built wealth. Once you reach retirement, you move into the distribution phase where you begin spending those savings. This warrants a different approach to your financial decisions — and possibly a different adviser.

Just as doctors have specialties, so do many financial professionals. Those who concentrate on the accumulation phase are adept at helping you grow your money during your working years and finding ways to make the market work for you. Their view is long term — as it should be — because they are looking at your retirement from a distance.

Other financial professionals specialize in the distribution phase of retirement. They understand the strategies that can help you maximize your retirement income, improve tax efficiency and make your savings last. Their primary objective is to help you avoid the costly mistakes that can derail an otherwise well-planned retirement.

1. How much income will you really need?

As someone who works in the distribution phase, one of the first things I discuss with clients is what type of lifestyle they want in retirement.

Do they expect to be on the go, traveling to bucket-list locales or buying that boat they fantasized about for years? Or do they envision being a homebody, reading books, chatting with friends and babysitting the grandchildren?

Their answer helps determine how much income they will need, and income is the heartbeat of retirement. Without a sustainable income strategy, retirement plans can go awry.

That's why it's important to make sure your income aligns with your spending goals. Your sources of income may include Social Security, a pension, IRA withdrawals, dividends and interest, cash and rental property.

For example, if someone expects to spend $10,000 monthly in retirement, their withdrawal strategy should be tailored to that need. I always plan for the worst-case scenario and recommend budgeting for more than you will actually spend.

2. When will you claim Social Security?

One significant decision that affects retirement income is when you claim Social Security benefits. The federal government offers plenty of options but not a lot of guidance on this, so Social Security is another area where a conversation with an adviser who specializes in the distribution phase is helpful.

You can begin drawing Social Security as early as age 62 but at a reduced amount that remains reduced for life. There are also income limits if you plan to keep working.

If you wait until your full retirement age (67 for most people these days), you receive more money and there are no income limits. Finally, you can postpone Social Security up until age 70 and receive a larger monthly benefit.

Each claiming strategy has its own advantages and trade-offs, which is why there is no one-size-fits-all answer. The right decision depends on factors such as your health, life expectancy, income needs, tax situation and whether maximizing survivor benefits for a spouse is an important consideration.

3. Can you lower your tax burden?

Taxes may not have been a concern during your accumulation phase, but they could become one during the distribution phase. There are ways to reduce your tax burden in retirement, but if you're not careful, you could unintentionally increase it.

Roth conversions, for example, allow you to move money from taxable retirement accounts, such as traditional IRAs and 401(k)s, to a Roth account that isn't taxed.

It's better to start using them when you are still a few years away from your required minimum distribution age. You pay taxes when you make the conversion, but then your money grows tax-free and isn't taxed when you withdraw it in retirement.

Be careful about transferring too much money into a Roth in the same year, though. You could bump yourself into a higher tax bracket or even cause an increase in your Medicare premiums if your taxable income grows too high.

With the right planning, you can reduce your taxes, keeping more of your money to pay for your retirement needs and wants.

4. Have you thought about sequence of returns risk?

Sequence of returns risk is a potential shadow looming over many retirements — and it may be one of the most significant differences between the accumulation and distribution phases.

It's also another reason retirees need a financial professional who has distribution-phase experience.

Sequence of returns risk can be summed up this way: Before you enter retirement, the order in which your investment returns happen generally makes no difference.

For example, in a 20-year stretch, you can have weak years followed by strong years, or strong years followed by weak years, and at the end the total in your portfolio will be substantially the same.

This is not the case when you retire and are making withdrawals. If the market performs poorly in the first five to 10 years, that combination of market losses with withdrawals can severely drain your portfolio. By the time a recovery happens, you may not have enough in your accounts to capitalize on it.

On the other hand, if the market is strong in your first years of retirement and you are seeing growth even as you make withdrawals, you will be better poised to withstand a down market later on.

Sequence of returns risk is one reason people might want to revisit their investments as they approach retirement. One strategy is to reduce the level of volatility your portfolio faces.

5. And finally: Will you let yourself have some fun?

Many people are hesitant to spend money in retirement, watching pennies carefully and avoiding luxuries or anything even vaguely ostentatious. Remember what I said about retirement requiring a new mindset? That applies here as well.

People who lived frugally as they saved for retirement sometimes struggle to turn off that economical mental attitude when they reach the distribution phase.

They worry so much about running out of money that they risk missing out on the enjoyment these years they saved for can bring. I encourage them to spend that money, to reap the benefits of those years of frugality and to remember the adage they have heard their entire lives, "You can't take it with you."

Of course, they need clarity, structure and some level of comfort to make such a mindset adjustment. That's where the right financial professional comes into play, helping them achieve that comfort by discussing income plans, expenses and any legacy they want to leave behind for children, grandchildren or favorite causes.

The distribution phase can and should be the fun phase — if you let it.

Ronnie Blair 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.

Your 70th birthday is a major milestone in your life. From a financial perspective, you now qualify for the highest Social Security benefits (if you waited to claim Social Security at 70) thanks to delayed retirement benefits and, if you worked until this age, potentially more higher-earning years, which can also translate to a higher Social Security check.

But it can also be a rough transition for retirees, who've spent decades saving up for this moment and now find it surprisingly difficult to watch their retirement savings go down — even if you've done all the planning and triple-checking to make sure your withdrawal amount is sustainable.

Whether you're worried about running out of money in retirement, overwhelmed by estate planning, or just generally unsure of how you should be approaching retirement planning when you're already retired, here's a financial checklist for your 70s to help you stay on track and feel more confident about enjoying your money.

1. Create a realistic spending plan and then spend your money

When you're still working, retirement planning is about identifying a healthy target number to save that will give you the lifestyle you want. By your 70s, "Retirement planning should be less about putting life on hold in the name of preservation and more about funding the experiences, and legacy that matter most," Nancy Anderson, Director of wealth planning programs at Key Private Bank, told Kiplinger.

While coming up with an annual spending amount on paper is fairly straightforward, shifting from a saving mindset to a spending mindset is much harder. To help make that behavioral shift, Anderson recommends:

• Create separate accounts for separate expense categories. As cash comes in from Social Security, distributions, and other income sources, fund your household expenses account first. Then, put the amount you've allocated for travel and hobbies in a separate account. That way, you can be confident that your essential costs are covered and you can see at a glance exactly how much you can afford to spend on travel and hobbies. "Knowing that money has been earmarked for a specific purpose can make spending feel more comfortable and intentional," Anderson explained.
• Claim Social Security now if you haven't already. While delaying Social Security can increase your benefits by up to 24%, "waiting beyond age 70 does not create additional value," she said. This guaranteed income isn't vulnerable to market volatility and can give you a spending floor — the minimum you'll be able to spend each month even if all of your other assets disappeared.
• Make a plan for required minimum distributions (RMDs). These kick in in your mid-70s and often catch retirees by surprise, warned Anderson. This can throw off your tax planning by increasing taxable income if you don't plan ahead for it. But there are strategies you can use to mitigate that if you get a plan in place before they kick in.
• Review your withdrawal amount annually. Your annual withdrawal amount isn't a "set it and forget it" number. Anderson recommends reviewing your spending amount annually to make sure it's still sustainable. "An annual review provides an opportunity to adjust spending based on market performance, inflation, and personal circumstances," she said.

2. Stress-test your finances annually

In addition to reviewing your withdrawal amount annually based on current market conditions and personal needs, Anderson recommends stress-testing your finances against possible future risks.

"Running stress tests that account for market volatility, inflation, healthcare costs, and longevity can help identify potential shortfalls before they become serious problems," she noted.

By examining all the "what if" scenarios you can think of, you'll see exactly how long your savings would last in each one. More importantly, you'll be able to come up with contingency plans and adjusted spending limits that account for those various risks.

"In many cases, relatively small changes can significantly improve long-term outcomes," Anderson said.

By running these stress tests annually, you can anticipate problems before they become serious and, in many cases, avoid needing to make drastic changes to your spending. "The sooner adjustments are made; the more options are available and the less dramatic the changes typically need to be," she noted.

This habit will replace those vague fears of running out of money with a concrete picture of how your savings would actually hold up under different scenarios and what adjustments you can make to address specific threats.

3. Plan your retirement in five-year chapters

The biggest risk in retirement isn't necessarily running out of money, according to Anderson. "Sometimes, it's about reaching a point where you no longer have the health, energy, or opportunity to do the things you want to do."

That's why she advises clients not to assume spending will remain constant from age 70 to 100. Instead, she recommends planning in five year chapters. Start by funding the experiences and bucket list adventures you know you'll regret postponing if health or other circumstances prevent you from being able to enjoy them later.

"Many retirees spend more in the initial phase because they have greater flexibility and often want to travel, pursue hobbies, or enjoy experiences they postponed while working," she said.

That higher spending up front might make you anxious if you're stuck in that saving mindset. But when you factor that into the plan by planning in five-year chapters and back it up with those annual reviews and stress tests, you can be confident that your overall spending plan is sustainable.

4. Put fraud protections in place before you're targeted

That generous nest egg you worked so hard to build makes you an attractive target to scammers and fraudsters. It also puts you at heightened risk of financial abuse — especially as you get older and start relying more on family to make financial decisions for you.

"Cognitive decline does not need to be severe before financial judgment begins deteriorating," warned Evan Farr, Certified Elder Law Attorney and retirement planner practicing in Virginia, Maryland, and DC.

Even before cognitive decline hits, modern technology is making scams harder to spot. So, taking proactive steps now can go a long way toward protecting yourself in the future. Some of the most effective strategies to do that, according to Farr, include:

• Enable transaction alerts on your bank and brokerage accounts so you can catch suspicious activity promptly.
• Set up multi-factor authentication on all of your financial accounts.
• Learn how to freeze your credit now so you can do it quickly when necessary.
• Make a rule that you'll discuss all major transfers or investment decisions with a designated trusted person, such as your financial planner or attorney, before taking action.
• Designate a trusted contact to be notified of suspicious transactions. Most major financial institutions will allow you to note this on your account so that if a bank representative notices signs of a scam, exploitation, or fraud, they can reach out to this trusted contact.
• Sign strong power of attorney paperwork now and make sure the person you name has the integrity and capacity to take on that responsibility.
• Be cautious about adding family members as joints on your accounts. Even if you trust the person fully, doing so can create conflicts later around ownership and inheritance that you never intended.

5. Reduce unnecessary financial complexity for your heirs

"Many people by age 70 have accumulated numerous bank accounts, brokerage accounts, retirement accounts, insurance policies, real property holdings, past beneficiary designations, passwords, and/or decades of documentation," Farr told Kiplinger.

While this might not be a problem for you, it can be a confusing maze of accounts and records to sift through for your heirs.

Farr recommends clients simplify their financial affairs as much as possible and leave a roadmap to make it easier for heirs to know what's what and where to look. That includes consolidating unnecessary accounts and maintaining an up-to-date account of assets and passwords. It can be helpful to do this with a financial planner so you can spot any old 401k or other accounts you might have forgotten about.

Lastly, Farr said to make sure you "inform those who will act on behalf of your client during incapacitation that the documentation exists and how they can obtain access to it."

6. Get more specific with your estate planning

In the past, it may have been enough to simply name a beneficiary or have a general plan for how your assets would be split up among heirs. As you get older, it's time to get more specific with your estate planning to prevent unnecessary conflict or obstacles when carrying out your final wishes.

According to Farr, "While it was previously sufficient to ask who would receive the decedent's assets upon death, today the decedents' estates must address how the assets will pass, who will administer matters should the decedent become incapacitated, whether probate may be avoided, whether an inheritance should pass directly to beneficiaries or remain protected within a trust arrangement(s), and whether the estate plan will lead to conflict amongst the beneficiaries."

You deserve to enjoy the retirement you saved up for

If you've been feeling too nervous to actually splurge on vacations or start embracing all of the hobbies and experiences you promised yourself you would enjoy once you retired, know that a lot of retirees struggle with that same anxiety.

But, by following the steps in this checklist every few years, you can ensure that the "permission to spend" amount you're working with truly is sustainable and that you'll be able to catch any shortfalls or issues early to adjust your spending long before you run any real risk of outliving your savings.

Doing the above steps with the help of a financial planner can help ease those fears even more as you'll know that an outside expert helped you come up with that realistic, sustainable spending amount.

Use the tool below to connect with a vetted financial professional who can help you stay on track and make the most of the retirement you planned for:

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For many successful executives, retirement looks nearly perfect on paper. The financial plan works. The calendar is open. There is time to travel, exercise and see family.

Then Monday morning arrives.

There is no leadership meeting, no urgent decision and no team waiting for direction. The title that once opened doors is now part of a biography. The daily signals of importance — calls, invitations and requests for judgment — begin to fade.

The traditional corporate career is also less predictable than it once was. Reorganizations, mergers, buyouts and layoffs can push executives toward the exit before they have given much thought to who they will become afterward.

Three traps often follow: holding too tightly to a former professional identity, assuming freedom from work will produce purpose, and filling the calendar with consulting, board work or another demanding role to recreate the old job.

This transition can also involve grief. A career provided meaning, recognition and a familiar measure of personal value. Losing that role can leave even a confident executive wondering: Who am I now?

When the title becomes part of you

In 2016, Carolina Migliaccio, 63, stepped away after more than 30 years in Fortune 500 brand strategy, innovation and design, including work with Kraft Foods and ConAgra Brands.

She began consulting. Two years later, she received an attractive offer for a senior corporate role. She turned it down.

"After three decades, my title and self-worth had quietly fused," she says. "When the title was gone, I had no language for what I was feeling."

She wanted work with meaning, even if it carried less corporate cachet. Yet she kept asking herself, "What would they think?"

The "they" were former colleagues who probably were not thinking much about her next move at all. "The identity free-fall definitely caught me off guard," she says.

It took about five years for her to feel grounded again.

"It perplexed me that a smart, successful executive like myself had no idea who I was," Migliaccio says. "I even questioned what I believed. Were my beliefs really mine, or had I become so indoctrinated by everything and everyone around me that I had lost my own sense of self?"

Migliaccio eventually built Soulful Moxie, an advisory practice focused on identity and leadership transitions. Her advice to people still deep in their careers is to begin loosening the bond between employer and identity before retirement arrives.

"Your job is just a part of what you do," she says.

Today, she is increasingly drawn to experiences and friendships. When a close friend turned 65, Migliaccio hosted a celebration at her home instead of simply arranging another dinner at a restaurant. It was a small example of a larger shift: She was making choices based on what felt meaningful to her, rather than what might impress someone else.

Beware the rush to stay important

Cohen Taylor has seen how quickly the retirement honeymoon can wear off. As a behavioral wealth specialist at Mission Wealth, she helps clients and advisers address the emotional side of money and major life transitions.

She shared two recent client stories. One East Coast couple in their late 50s left careers in finance and celebrated with an extended trip around the world. Coming home was harder. Everyday routines and family dynamics returned, but the structure of work did not.

A West Coast biotech executive reacted differently. After retiring around age 60, the executive quickly pursued another role because life without clear direction felt uncomfortable.

But don’t jump too fast. Consulting, board service, or a new job can be rewarding. The trap is making the decision primarily to quiet the discomfort of no longer being needed.

"If you’re pursuing a new role later in your career, remember that the compensation may not outweigh the constant travel and stress the new job might require," Taylor says. "Money is not everything."

She encourages clients to think about their values, relationships and preferred daily life before committing. A phased retirement can help. Reducing workdays, taking an extended vacation or testing a lighter schedule gives people a preview of life when work occupies less space.

Retirement also requires a shift in your financial mindset. People who spent decades accumulating wealth may start checking their account balances repeatedly once the paychecks stop.

"A number of mindset shifts will occur," Taylor says. "That’s normal."

The goal is to trust a sound financial plan while recognizing that some anxiety is human. Feeling uncertain does not mean the retirement decision was wrong.

Turn experience outward

Perry Solomon, 82, took a different path.

After running a high-end electronics business, he created the eco-friendly consumer-products brand ProSumer’s Choice and sold it in 2021. Today, he advises younger entrepreneurs through Solomon Growth Advisors in Santa Monica, CA.

His two daughters were not interested in joining his businesses, but they helped him broaden his view of legacy. Passing something on did not have to mean handing down a company; it could mean sharing judgment, family values, stories and focused time with his seven grandchildren.

His book, Grandpa Day, reflects more than 20 years of intentional time with them.

"I’m an advocate for retired executives to give back to the business community," Solomon says. "Share your wisdom and experience with younger generations through blogs, articles or books. You can still influence a lot of people in very positive ways."

Solomon remains active, but the purpose has changed. The work is less about proving his own success and more about helping other people build theirs.

A painful transition becomes a new mission

Atlanta resident Nancy Treaster’s reinvention began with caregiving.

Treaster was a senior software executive who managed a large support organization. As her husband’s frontotemporal dementia progressed, she reduced her travel and work responsibilities. She also helped care for in-laws with Alzheimer’s disease.

Eventually, the demands became too great, and she retired in August 2023.

Both her husband and father-in-law died in 2024. After years of work and caregiving, Treaster needed time to decompress. She also discovered that she still needed a mental challenge.

"I left Corporate America for good, but I still needed a project," she says.

That project became The Caregiver’s Journey, a nonprofit and "how to" podcast she co-founded with Sue Ryan.

Treaster had no clinical health care background. She did have years of experience solving problems, leading teams and navigating a fragmented care system. She completed a Certified Caregiving Consultant program and began turning her hard-won lessons into practical guidance for families.

The shift required her to let go of the compensation and status attached to her former role. Over time, the nonprofit stopped feeling like a bridge to something else. It became the work she wanted to do.

Treaster now points families toward hopeful brain-health research while avoiding false promises. The 2024 Lancet Commission estimated that about 45% of dementia cases worldwide are potentially attributable to 14 modifiable risk factors. That does not mean every case can be prevented, but it suggests that some risk may be reduced or the onset delayed.

Her larger message is practical: Get an accurate diagnosis, understand the type of dementia involved and give caregivers information they can use today.

Expect an emotional adjustment

As a retirement coach, I often see retirement unfold in stages:

The honeymoon: Relief and freedom.

Disenchantment: Boredom, restlessness, or feeling lost.

Reorientation: Testing new routines and forms of contribution.

Stability: Developing a life that feels natural rather than improvised.

There is no standard timetable. Some people adjust quickly. Others need several years. Both are normal.

Before accepting the first consulting offer or filling every empty day, create enough space to notice what you actually miss.

Is it the work? The people? The intellectual challenge? The authority? The income? The recognition?

Those answers lead to very different next steps.

Try a short purpose exercise

Try a little "values archaeology."

Think back to the person you were before the executive title. What originally attracted you to your field? Which problems energized you? Did you enjoy building teams, teaching, negotiating, inventing or helping people make difficult decisions?

Then look outside work. When no one was evaluating your performance, where did your attention go?

Your next purpose may grow from an old interest, a transferable strength or a problem you now feel ready to solve. Test it through a class, a volunteer role, a short project or a limited consulting assignment before making a large commitment.

Find your zone of genius

Chicago-based Migliaccio tells clients leaving corporate life to find their "zone of genius" and choose work that reflects their values rather than outside expectations.

"It’s your time to tap into who you really are and let the world know it," she says.

You are never too old to start something. You are never too young to think about what comes after the current career.

Be curious. Leave room to experiment. Retirement does not require you to abandon ambition. It gives you the chance to decide what your ambition is now.

"There is always another way — and often a better way," Migliaccio says. "But you need the time, space and support to discover it."

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"Should we move to Florida to save on taxes?"

As a CFP® and wealth adviser with more than 20 years of investment experience, I hear some version of that question from nearly every client approaching retirement in a high-tax state, and it's a fair one.

If you've spent decades building your savings, of course you want to keep more of it. States like Florida, Texas, Tennessee and Nevada have long attracted retirees because they skip state income tax entirely. Next to a high-tax state like Connecticut, New Jersey or California, the choice can look obvious.

After helping hundreds of families work through this decision, I've learned it rarely is. The tax savings are usually smaller than people expect, and the true cost of relocating is almost always bigger.

Recent changes in federal tax law have shifted the math even further. Before you list your house, it's worth running the numbers.

Here's what I walk clients through before they make the call.

The tax gap has narrowed

New federal legislation has changed how I evaluate a move for clients. A higher cap on the state and local tax (SALT) deduction, a new bonus deduction for eligible older taxpayers and a permanent federal estate tax exemption of roughly $15 million per individual all reduce the federal tax burden for many retired households.

None of that eliminates state income tax. But it does mean the gap between staying in a high-tax state and relocating to a no-tax one is often smaller than it looked just a few years ago, especially for clients who assumed the old rules still applied.

I've started running this comparison earlier in the planning process for exactly that reason: The answer clients got two or three years ago may not hold up today.

Consider a hypothetical couple pulling $90,000 from IRAs, $45,000 in Social Security and $20,000 in investment income. Depending on their deductions and how that income is structured, moving to a no-tax state might save them several thousand dollars a year, which is real money but rarely the whole story.

The moving costs add up fast

Clients focus on the annual savings and forget the one-time bill: Real estate commissions, closing costs, movers, repairs before listing, furnishing a new home, temporary housing and the cost of rebuilding a healthcare and professional network from scratch.

I've seen these add up to tens of thousands of dollars before anyone accounts for the stress of starting over.

If a move saves $6,000 a year but costs $60,000 to pull off, that's a decade just to break even. I want clients to see that number before they call a Realtor, not after.

You're not just leaving a state

The cost that's hardest to put on a spreadsheet, and the one I push clients hardest on, is distance from family. I've watched clients move south for the weather, then start flying back for birthdays, grandchildren's games and Sunday dinners they didn't expect to miss. The airfare and hotel bills climb, and some eventually move back entirely.

There's also the team you leave behind: Your financial adviser, tax preparer, estate attorney, insurance agent, doctors. You can rebuild that team, but it takes time, and a physician who knows your history or an adviser who's worked with your family for years provides continuity you can't buy on day one in a new state.

I've had clients spend the better part of a year finding a new cardiologist or estate attorney they trusted as much as the one they left, and that search has a cost even if it never shows up on a spreadsheet.

Moving isn't the only lever

Relocating is one way to lower your lifetime tax bill. It's far from the only one.

I regularly help clients cut their tax burden through Roth conversions timed to lower-income years, coordinating retirement account withdrawals, managing required minimum distributions (RMDs), tax-efficient investing, charitable giving and smarter timing of Social Security.

Done well, these strategies can produce meaningful savings while letting clients stay exactly where they are.

When a move actually makes sense

None of this means relocating is a mistake. I have plenty of clients for whom it was the right call: Their family had already scattered, healthcare needs were easy to meet elsewhere, housing costs fit their goals better, or the long-term tax savings genuinely outweighed the cost of getting there.

The difference is that those clients ran the numbers first. Before you decide, ask yourself what you'd actually save after every tax year, what the total moving cost would be, how long it would take to break even, how often you'd travel back for family and whether better tax planning could get you a similar result without packing a single box.

Sometimes those questions confirm that moving is the right move. Just as often, they reveal that staying put is the smarter financial decision — you just hadn't run the full comparison yet.

Retirement isn't about finding the state with the lowest taxes. It's about building a life you won't spend the next decade second-guessing.

When I walk clients through taxes, income, healthcare, housing, estate planning and family togetherness, the answer usually gets a lot clearer, and it isn't always the one they expected when they first asked about moving to Florida.

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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.