Stocks opened lower Wednesday as the long-term Treasury yields hit their highest levels in 24 years. A successful auction of 10-year notes helped yields ease back from their intraday highs, but it wasn't enough to send the main equity benchmarks into positive territory.

The 10-year Treasury yield fell slightly after this afternoon's bond action, but still closed up 1.5 basis points at 5.286%. The yield on the 30-year Treasury also pulled back from its early morning peak, but gained 3.0 basis points to 5.671%.

As for stocks, the blue-chip Dow Jones Industrial Average fell 0.7% to 51,179, the broader S&P 500 shed 0.2% to 7,801, and the tech-heavy Nasdaq Composite gave back 0.2% to 27,538.

Rising Treasury yields were in focus at the Federal Reserve's September meeting. "Changes in inflation compensation accounted for most of the net increase in shorter-maturity Treasury yields, while changes in real rates contributed to most of the net increase in longer-maturity Treasury yields," stated the minutes from the most recent Fed meeting, where the central bank raised interest rates for the first time since 2023.

Still, most committee members believe that financial conditions remain "supportive of economic growth."

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The minutes also revealed that "most participants assessed that another increase in the target range for the federal funds rate would likely be appropriate by year end."

The odds for an October rate hike have dropped over the past month thanks to encouraging inflation data and a weak September jobs report. According to CME Group FedWatch, futures traders are pricing in an 83% chance the Fed will keep the fed funds rate unchanged when it meets later this month — up from 54% a month ago. However, the probability of a December rate hike has jumped to 69% from 36%.

Webull sinks 19% on China risk

In single-stock news, Webull (BULL) sank 19.1% after a congressional committee flagged the online trading platform as a national security risk.

A report compiled by the House Select Committee on China said Webull is "tied in structural ways to the People's Republic of China," and that there is "a profound gap" in how the company markets itself as "an American company" and how it is controlled.

A Webull spokesperson said the report contains "significant inaccuracies and unsupported conclusions," and that it is prepared to "address any questions directly and with the same transparency we bring to the SEC, FINRA, and regulators worldwide."

Siebert Financial analyst Brian Vieten paused his Buy rating and price target on the fintech. "The potential regulatory and operational implications of these findings create a level of uncertainty that we cannot reasonably incorporate into our estimates or valuation at this time," Vieten says, adding that he's reviewing the committee's findings and waiting for more information from Webull.

Caterpillar, Deere drop on FTC inquiry

Caterpillar (CAT) and Deere (DE) also closed lower Wednesday after the Federal Trade Commission (FTC) and Department of Agriculture launched a public inquiry into issues impacting agricultural equipment manufacturing and distribution practices.

"The joint request for information is a part of the FTC's ongoing work to preserve competition in the agricultural sector," according to a press release. The regulator is attempting to address complaints and anticompetitive concerns about barriers farmers face when buying and maintaining farm equipment.

CAT slumped 5.8%, making it the worst Dow Jones stock Wednesday. DE shares fell 3.8%.

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You may want to start double-checking your receipt before leaving the store. Several recent reports involving major retailers show that the price you see on the shelf isn't always the price you pay at checkout.

A September Guardian investigation found pricing discrepancies at 7-Eleven and Circle K locations, including instances where shoppers were charged more than advertised. Earlier this year, TikTok creator Jimmy Wrigg also raised questions about Walmart's packaged meat after finding products whose labeled weights appeared higher than their actual weights.

More recently, Five Below reached a $179,500 agreement with Michigan to resolve allegations involving scanner overcharges and problems displaying prices at some stores. Five Below did not admit wrongdoing.

These cases involve different circumstances and don't necessarily suggest intentional overcharging. But they offer a good reason to pay closer attention to what rings up at the register.

How you could end up paying more than expected

Pricing errors can happen in several ways. A shelf tag might not match the register price, or a sale price may fail to ring up correctly. Digital coupons, loyalty discounts and buy-one-get-one promotions can also fail to apply as expected.

Products sold by weight present another opportunity for errors. Meat, seafood and produce may be incorrectly weighed or labeled, resulting in a higher total price.

Packaging matters, too. "Tare" refers to the weight of packaging or containers that should be excluded from a product's net weight. If the appropriate packaging weight isn't deducted, you effectively pay for the packaging as part of the product.

Which price does a store have to honor?

There isn't one nationwide rule requiring every U.S. retailer to honor the shelf price when it differs from the register price. Instead, states have their own pricing laws, while state and local weights-and-measures agencies typically enforce retail price accuracy.

Some states give shoppers additional protections. Michigan's Scanner Law, for example, allows shoppers who are charged more than the displayed price to receive the difference between the displayed price and the amount charged, plus a bonus of 10 times that difference. The bonus must be at least $1 but no more than $5. Shoppers must have a receipt showing the overcharge and notify the seller within 30 days.

California generally requires retailers to charge the lowest posted, quoted or advertised price for which the shopper qualifies. However, an overcharge doesn't automatically mean the shopper gets the item for free.

Massachusetts has additional protections for covered grocery and household products. Depending on the retailer's pricing system and the item's price, an incorrectly scanned product may be free or discounted.

Because the rules vary, check your state's requirements rather than assuming a policy you've encountered elsewhere applies. The National Institute of Standards and Technology (NIST) provides information on state pricing laws and weights-and-measures agencies.

How to catch pricing errors before you leave the store

You don't need to audit your entire shopping cart to reduce your odds of overpaying. A few simple habits can make errors easier to catch.

Start by watching the screen as your items are scanned. Pay particular attention to higher-priced purchases and items you specifically chose because they were on sale.

Before walking out, spend a minute reviewing your receipt. Look for prices that seem higher than expected, duplicate charges and promotions that weren't applied. If you loaded digital coupons or used a loyalty account, confirm that the expected savings appear on the receipt.

It can also help to check unit prices while you're shopping. Unit pricing shows the cost per ounce, pound or other unit of measurement, making it easier to compare different package sizes. Just remember that a correct unit price won't protect you if the package itself has been incorrectly weighed or labeled.

For expensive meat, seafood and other products sold by weight, take a closer look at the label. Check the weight, price per pound and total price to make sure the numbers make sense together.

Finally, if you're buying an item because of a sale or promotional sign, take a quick photo of the shelf tag, especially if the offer has several conditions. That gives you something to reference if the register shows a different price.

What to do if you've been overcharged

If you notice the discrepancy before leaving, your first stop should be the cashier or customer service desk. Show your receipt and explain the price you expected to pay. In many cases, the store can verify the shelf price and issue a refund for the difference.

Keep your receipt and, when possible, take a photo of the shelf tag or advertisement showing the lower price. If a digital coupon or app offer is involved, a screenshot can also help document the promotion and its terms.

It's also worth asking whether the retailer has its own price-accuracy or scanner policy. A store may voluntarily offer a refund, additional discount or free item beyond what state law requires.

If the retailer doesn't resolve the problem, or you notice what appears to be a recurring pattern, you can contact your state or local weights-and-measures authority.

NIST maintains a directory of state weights-and-measures directors, along with contact information for the appropriate agencies.

Local authorities may also conduct inspections to determine whether a retailer is complying with price-verification and weighing requirements.

A few seconds at checkout could save you money

A $1 discrepancy may not seem worth worrying about when you're trying to get through the checkout line. But small overcharges can add up, particularly on groceries, gas and convenience-store purchases you make regularly.

You also don't need to approach every shopping trip assuming something will go wrong. Most purchases will likely ring up just as expected. Instead, make a quick receipt check part of your normal shopping routine.

Know roughly what the items in your cart should cost, pay extra attention to sales and products priced by weight, and check your receipt before you head home. A minute or two of extra attention can make it much easier to catch a pricing mistake while you're still in the store.

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When the Centers for Medicare & Medicaid Services (CMS) ended subsidies for Part D premiums in August, 56.1 million Medicare Part D beneficiaries were left unsure as to what would happen to their monthly premiums. Among them are 24.1 million original Medicare enrollees and 3.4 million Advantage members who buy stand-alone drug coverage — plus 28 million who receive coverage through a bundled Medicare Advantage with drug coverage plan (MA-PD).

CMS addressed this in a recent statement, noting "encouraging signs that, as expected, the Part D program is returning to normal market conditions." CMS projects the average total monthly premium for stand-alone Part D plans will rise by less than $1 — from $35.09 in 2026 to $36.00 in 2027. Keep in mind these are averages; unlike federally set Part B premiums, private insurers ultimately set the prices for Part D plans.

However, for 2027, Medicare beneficiaries will have a higher out-of-pocket maximum of $2,400 (up from $2,100) and will face a higher maximum deductible of $700, a $75 increase from 2026.

CMS touts stable and lower premiums for 2027

Despite concerns that there would be sharp rate hikes following the end of federal intervention, CMS attributes the modest $1 increase to the Part D market naturally re-establishing equilibrium and returning to normal competitive conditions.

CMS announced in August the discontinuation of the voluntary Part D Premium Stabilization Demonstration Project. Originally introduced to smooth pricing shifts following major structural changes under the Inflation Reduction Act — such as the out-of-pocket spending cap — the demonstration program provided direct temporary government subsidies to insurers. CMS maintains that the market no longer requires these multi-billion-dollar backstops to keep consumer costs manageable, pointing to low baseline rates as proof that insurers have adjusted their pricing models sustainably.

“CMS is fighting to keep high-quality care options affordable and accessible for the millions of beneficiaries who rely on Medicare Advantage and Part D prescription drug plans,” said CMS Administrator Dr. Mehmet Oz.

CMS also highlighted stronger price drops across integrated coverage options. For Medicare Advantage plans that include prescription drug coverage (MA-PD), the average monthly Part D premium component is projected to fall by 38%, dropping from $11.32 in 2026 to $7.00 in 2027 after applying MA rebates. CMS also noted that 88% of non-low-income beneficiaries will have access to a basic stand-alone Part D plan for $10.30 or less per month, with 93% having access to an enhanced plan option under $6.00.

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The Great Wealth Transfer is already underway, with trillions of dollars expected to pass from one generation to the next over the coming decades.

But most Americans spend more time planning a family vacation than working on their personal finances, and the amount of time they spend on their wealth transfer is even less.

In my experience, this oversight can have lasting consequences. Here are the biggest estate planning mistakes I try to help my clients avoid.

Not preparing your heirs

Wealth is a powerful tool for creating a legacy. But if you're assuming it will be a wonderful windfall that sets your family up for success after you die, you may be unpleasantly surprised. According to research from the Williams Group, 70% of wealthy families lose their wealth by the second generation, and 90% lose it by the third.

I've found that heirs are often better prepared for wealth when they develop accomplishments and confidence that are independent of family wealth. The goal isn't to make life difficult for your children, but to help them build the skills and judgment they'll need to manage opportunities responsibly.

Unfortunately, more than half of parents ages 55 and older surveyed by Morning Consult for Kiplinger say they rarely or never discuss money with their children.

That's why I encourage families to hold regular conversations about the purpose of their wealth. This doesn't have to mean disclosing every dollar. It's about helping the next generation understand how wealth was created, what responsibilities come with it and what role it should play in their lives.

The biggest gift you can leave for the next generation is clarity and financial confidence, and you can't do that if you don't talk to them.

You shouldn't be the only one talking to your children about money, however. It's hard to be a prophet in your own land, and one lesson I've learned as an adviser and parent is that children don't always take advice from those closest to them.

Sometimes they'll hear the exact same message from a trusted mentor, adviser or family friend and view it completely differently. Create opportunities for younger generations to learn from people who have good judgment and strong values.

Failing to formalize your plan

Legal processes need to be followed to ensure assets are transferred the way you want. It's always shocking to me how so few people have a will or trust. A Guardian study found that about half of high-net-worth individuals don't currently have a will.

I've seen estate disputes strain family relationships for years. In some cases, siblings stop speaking to one another because expectations were never clearly documented or communicated. If you've spent a lifetime building wealth, take the time to preserve family harmony by ensuring everyone understands your intentions before difficult questions arise.

Not protecting your wealth

A will or trust determines where assets go. Asset protection helps ensure they're still there when the time comes to transfer them. In this litigious world, asset protection is essential to protect people from lawsuit creditors and anyone else trying to separate you from your money.

Unexpected legal claims or liabilities could reduce the wealth you're hoping to pass on. I often tell clients they need a moat around their castle. I've seen many people's life's work wiped out by a judgment, regulatory issue or divorce.

Irrevocable trusts are a way to protect your assets. These types of trusts can shield your assets from lawsuits. Depending on your circumstances, they may also be able to lower your estate and income taxes.

Waiting until you're gone to make an impact

Many people assume wealth transfer is something that happens after they die. In reality, some of the most meaningful transfers happen while you're still alive to experience the benefits firsthand.

I've seen such joy in parents and grandparents when they get to see how their money benefits their offspring. It's also incredible to be so fortunate that you can give your money to places and causes you believe in and be able to see its impact while you're alive. This is why I encourage some of my clients to not wait until they're gone to give.

People are living longer these days. If you're 99 when you pass, your kids may be in their 70s and already retired. But in their 30s, 40s and 50s, your kids may be starting families, buying houses, building businesses and putting their kids through school. Transferring money at this point can provide far greater value.

Focusing on the "how" before the "who"

Everybody asks "how?" I think the better question is "who?"

• Who are the advisers helping you make estate planning decisions?
• Who is educating the next generation?
• Who is collaborating to help ensure every piece of your plan works together?

Transferring wealth requires a team, and the quality of your team determines the quality of your outcomes. I like to call this your "kitchen cabinet," meaning the group of people you trust enough to give you the right advice when you need it most.

You don't want five great professionals working independently. You want the right professionals working together. The families who navigate these transitions most successfully tend to have financial advisers, attorneys and tax professionals operating as a coordinated team.

Wealth transfer is about far more than passing down assets. It's about passing down opportunities, values and a vision for the future. With thoughtful planning, open communication and the right team of professionals guiding the process, your wealth can become a lasting legacy that benefits generations to come.

In my experience, the families that transfer wealth most successfully treat inheritance as a conversation, not an event.

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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 retirees and pre-retirees, the question has shifted, from "How do I grow my wealth?" to "How do I sustain, protect and distribute it tax-efficiently?"

Over the past few years, technological advancements in the investment world have ushered in a new era of flexibility and control.

As a financial planner and owner of Alpha Planning, I find that direct indexing and tax-loss harvesting have become strategies that I'm discussing regularly — often with clients who have brokerage accounts over $250,000 and are keen on managing their retirement tax outcomes.

What is direct indexing — and why is it different?

Most investors have grown comfortable with index funds: Buy an S&P 500 ETF, and you get hundreds of companies with one click. But direct indexing lets us go one step further.

Instead of holding shares of a fund, we own the individual stocks that make up an index, opening up far more opportunities for customization and tax optimization.

To illustrate: Imagine your portfolio is like a chef's kitchen. Index funds are the meal kit — pre-packaged, efficient and predictable.

But direct indexing is the custom kitchen, stocked with individual ingredients that let you adjust every dish to your taste. You can swap one item for another, season to your preferences or craft a meal that's uniquely yours.

This flexibility is invaluable when managing taxes and making strategic choices.

And it's not just theoretical. Our team consistently averages 1% to 1.5% of tax alpha each year in nonqualified accounts simply by trading stocks strategically — that's above and beyond any market performance.

"Tax alpha" is a measure of how much additional money you keep by lowering your tax bill, and this alpha accumulates year after year, resulting in thousands of dollars in additional value for our clients over time.

The capital gains budget: A smarter, more strategic tax plan

One concept that has become the backbone of many retirement conversations is the capital gains budget. Think of it as an annual spending plan for your realized gains: How much can you afford to distribute before tipping into higher tax brackets or triggering additional Medicare IRMAA premiums?

Intentionally setting a capital gains budget creates room to coordinate other income strategies — like Roth conversions — without crossing those crucial thresholds.

Direct indexing allows for precise control of:

Tax-loss harvesting. By tracking individual positions, we can harvest losses throughout the year, offsetting gains and smoothing out your tax bill.

Roth conversions. Loss harvesting frees up "space" in your tax bracket so you can convert more IRA assets to Roth at preferable rates and accelerate tax-free growth without impacting IRMAA.

IRMAA management. Staying under IRMAA cutoffs means keeping your Medicare premiums as low as possible.

Flexible withdrawals. Harvested losses don't just help in a single year — they often carry forward, providing valuable flexibility for withdrawals in later retirement years. This can help ensure you're less likely to trigger excessive taxes when accessing your investment accounts for future needs, often when long-term care comes into view.

A case from my desk: Linda and Bob's retirement tax playbook

Earlier this year, I met with Linda and Bob, a couple who'd recently retired with $3 million in investable assets. Their challenge: To maximize after-tax retirement income, minimize surprises and plan for their family's future.

With direct indexing in their taxable account, we harvested $75,000 in losses over the first two years of the strategy.

This loss harvesting became essential to keeping their capital gains budget on track — allowing us to convert IRA dollars to Roth while staying under Medicare IRMAA thresholds and AGI limits.

It also provided the flexibility to help fund a second home purchase without affecting their IRMAA and Roth conversion strategy thanks to the carry-over losses we had helped accrue.

The payoff? Linda and Bob enjoyed predictable Medicare premiums, more tax-free growth, more flexibility for future withdrawals and an estate strategy ready for the next generation.

Their story is a perfect example of how intentional planning — not just reacting to market swings — translates into tangible, lasting benefits.

Who benefits most?

Direct indexing and a capital gains budget aren't only for ultra-high-net-worth investors. If you have a brokerage account over $250,000 and want to take control of your retirement tax plan, these strategies could be your missing link.

They offer proactive ways to personalize your financial plan, prepare for future legislative changes and put more money to work for you.

Key takeaways

• Direct indexing brings customized flexibility — think of it like a custom-made mutual fund — you have control over when to buy and sell, not the mutual fund or ETF
• Tax-loss harvesting is more powerful when you own individual stocks
• Setting a capital gains budget helps coordinate Roth conversions and manage Medicare costs
• Strategic trading generates tax alpha — on average 1% to 1.5% per year — which compounds into substantial long-term benefits
• Harvested losses create flexibility for withdrawals in future years, helping minimize taxes as retirement unfolds — especially when future needs like long-term care arise

Final thoughts

Retirement is about more than investment returns — it's about controlling what you can and planning with intention.

If you haven't reviewed your capital gains budget or explored direct indexing, now's a good time to sit down with your adviser and ask the tough questions.

In my experience, the confidence that comes from a well-structured, tax-smart retirement plan is the most valuable asset you can own.

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

If you're looking to add stability to your portfolio during uncertain times, you should consider the time-tested shelter of safe mutual funds.

A monthslong war in the Middle East shows no signs of ending. That war has triggered multiple surges for gasoline prices and sent diesel to all-time highs.

Inflation is well above the Federal Reserve's 2% target, and the central bank raised interest rates for the first time since 2023 at the conclusion of the September Fed meeting.

The White House has renewed its push for global tariffs. And potentially transformational midterm elections are just a month away.

Not exactly sunshine and roses. We certainly can't blame you or anybody else who's looking for a few investments to help take the edge off.

So let's take a look at mutual funds built to provide ballast during the kind of uncertain market environment we're experiencing right now.

How we chose our list of safe mutual funds

We didn’t use a strict methodology to select safe mutual funds, for a few reasons:

• No bear market is exactly like any other. Certain investments that were cleaved during, say, the Great Recession did just fine during the COVID bear market.
• Each of the pressures we mentioned may have different effects on different parts of the market. What would do just fine if the war between the U.S. and Iran ended but tariffs persisted might tank should the opposite occur.
• We must account for the unknown. It's possible that, should the market take a turn for the worse, the trigger might not be one of the aforementioned pressures, but some other shock.

Instead, we looked for a variety of defensive strategies. Some are designed to protect against particular risk factors.

Some have strong track records, even positive performance, during multiple bear markets and corrections. This suggests they can thrive in several downturn scenarios.

But remember that many, though not all, defensive funds involve a simple tradeoff for their low volatility: better performance during downturns, and less robust returns during bull markets.

For that reason, safe mutual funds don't always make for great long-term core allocations. They're better used as "satellite" holdings to augment your portfolio. If you're a more active investor, you can use safe mutual funds as shorter-term positions to ditch once markets normalize.

Data is as of October 6. Dividend yields represent the trailing 12-month yield, a standard measure for equity funds. SEC yields reflect the interest earned for the most recent 30-day period after deducting fund expenses, a standard measure for bond funds. Seven-day SEC yields reflect the interest earned after deducting fund expenses for the most recent seven-day period, a standard measure for money market funds.

T. Rowe Price Dividend Growth Fund

• Type: Large-cap dividend-growth
• Assets under management: $22.5 billion
• Dividend yield: 0.9%
• Expenses: 0.64%, or $64 annually for every $10,000 invested
• Minimum initial investment: $2,500

Let's say you want to hedge against uncertainty, but you still want some exposure to the potential upside the equity market offers. In other words, you don't want to load up on growth stocks. But you're not going straight to Treasury bills and Treasury bonds, either.

What you want to do is emphasize high-quality stocks through a vehicle such as the T. Rowe Price Dividend Growth Fund (PRDGX).

The ability to pay a dividend is often seen as a quality signal. It represents sufficient and stable enough profits that a company can redistribute some of the excess to shareholders, consistently and confidently over time.

Dividend growth takes that logic one step further: A company that raises its payout significantly and/or regularly may be telegraphing management's understanding about growth for its bottom line.

PRDGX manager Tom Huber agrees, and he's built the mutual fund on the belief that "a track record of dividend increases can be an excellent indicator of financial health and growth prospects."

Huber has a fairly loose mandate. Unlike indexed competitors with specific baselines for payout improvement, his fund merely invests in "stocks that have a strong track record of paying dividends or that are expected to increase their dividends over time."

Regardless, PRDGS is jam-packed with cash-flow generators such as Microsoft (MSFT), Visa (V) and Broadcom (AVGO), which have increased their distributions by 47%, 79% and 81%, respectively, over the past five years.

It also holds companies with much longer streaks of dividend growth: S&P 500 Dividend Aristocrats (minimum 25 years of uninterrupted annual dividend growth) and Dividend Kings (minimum 50 years) such as Walmart (WMT) and AbbVie (ABBV).

Just about any stock fund will be exposed to losses in a stock downturn, but PRDGX feels mighty padded compared to your average large-cap blend fund.

But this one has suffered significantly shallower drops than the S&P 500 during broad-market declines in 2026 (Middle East war), 2025 (tariffs) and 2022 (bear market), just to name a few.

Indeed, with a spot on the Kiplinger 25, T. Rowe Price Dividend Growth is one of our favorite mutual funds, full stop.

Learn more about PRDGX at the T. Rowe Price provider site.

Fidelity Select Telecom and Utilities Fund

• Type: Multisector (Communication services and utilities)
• Assets under management: $1.2 billion
• Dividend yield: 2.1%
• Expenses: 0.68%
• Minimum initial investment: $0

The appeal of defensive sectors boils down to this simple logic: When money's tight, you'll cut back on many things, including concert tickets, new sneakers and a Taco Bell "Fourthmeal." But you won't stop paying for your essential services, such as electricity, heat and water.

That's what makes utility stocks particularly resilient against the pressures of a soft economy.

But on the list of what we can't live without, internet and phone service are also there. That’s the thinking behind the Fidelity Select Telecom and Utilities Fund (FIUIX), one of our favorite Fidelity funds for a volatile market.

Pranay Kirpalani and Alex Boyajian have put together a 47-holding portfolio that's largely made up of utilities like NextEra Energy (NEE) and American Electric Power (AEP), but also holds a handful of telecoms like Verizon Communications (VZ) and AT&T (T).

Utes and telcos typically don't offer much in the way of growth. If you get a promotion, it's unlikely that you're going to spend that extra money by cranking up the A/C and running the hose for an extra hour.

So they often entice shareholders with generous dividends instead, and that income provides an additional element of stability. This is particularly attractive during periods of stock-market volatility.

FIUIX, to wit, offers up a 2.1% yield that's about two times what the S&P 500 offers.

Except for the pandemic crash, FIUIX has been downright spectacular during market downturns over the past decade, frequently delivering flattish performance, even gains, while most other equities drown.

Learn more about FIUIX at the Fidelity provider site.

Vanguard Global Minimum Volatility Fund Investor Shares

• Type: Minimum-volatility global stock
• Assets under management: $1.9 billion
• Dividend yield: 2.2%
• Expenses: 0.21%
• Minimum initial investment: $3,000

Two exceedingly popular ways to fight off a turbulent market are low-volatility (low-vol) and minimum-volatility (min-vol) funds. They have similar aims, but their differences are meaningful.

Low-volatility funds evaluate a universe of stocks and pick out the ones that have shown the least volatility over a certain period of time, hoping to create the lowest-volatility portfolio it can.

But minimum-volatility funds typically try to minimize volatility within a certain benchmark, while still resembling the original benchmark in some way.

For instance, an S&P 500 low-vol fund that picks the 20 lowest-volatility stocks in the index might end up holding nothing but utility stocks.

However, an S&P 500 min-vol fund might try to identify low-volatility stocks. But it might be forced to have at least some percentage invested in all 11 sectors, resulting in a portfolio that's not as volatile as the S&P 500, though possibly not as calm as a low-vol fund.

Vanguard doesn't have many options for investing in either type of strategy, but the actively managed Vanguard Global Minimum Volatility Fund Investor Shares (VMVFX) does the job.

VMVFX aims to provide minimum volatility compared with the global equity market. And it delivers, meriting inclusion among our top Vanguard funds for fading an uncertain economic environment.

Like most global funds, VMVFX dedicates almost 60% of its assets to U.S. stocks, with the rest spread across countries such as the U.K., Canada and Taiwan.

From a construction standpoint, Vanguard Global Minimum Volatility exemplifies the minimum-volatility mindset. Its sector allocation looks somewhat similar to the category average, with a few tweaks to reflect its goal of reducing volatility.

For instance, it holds more healthcare stocks and utilities than the category averages. But it's less exposed to tech stocks and consumer discretionary stocks.

Learn more about VMVFX at the Vanguard provider site.

Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares

• Type: Short-term TIPS
• Assets under management: $73.1 billion
• SEC yield: 2.3%
• Expenses: 0.06%
• Minimum initial investment: $3,000

We'll move on to bonds, which can't hold a candle to equities in terms of growth but usually provide more stability and income. We say "usually" because what's happening in the bond market right now warrants your attention.

The Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares (VTAPX) owns Treasury Inflation-Protected Securities (TIPS) with short maturities.

You can check out our primer on TIPS for a fuller explanation. In short, these are U.S. government-issued bonds that pay a fixed rate on a principal that adjusts with changes in the consumer price index (CPI).

When inflation increases, TIPS' principal value rises; when inflation falls, TIPS’ value falls. VTAPX is one of our favorite bond funds because it helps us fight off risk in a few ways:

Interest-rate risk: The longer a bond's term, the more a change in interest rates affects the relative value of its remaining coupon payments. VTAPX owns shorter-duration issues with less interest-rate risk.

Credit risk: Economic stress can impact a bond issuer's ability to pay interest; generally, the lower the quality of the issuer, the greater the risk. TIPS are issued by the U.S. government, which debt ratings agencies still view as one of the most reliable entities on the planet.

Inflation risk: Inflation eats away at the purchasing power of the U.S. dollar. Not only do TIPS rise alongside rising prices. Because their interest payments are calculated as a percentage of the inflation-adjusted principal, inflation can increase TIPS' payments, too.

That last point means that although VTAPX's current SEC yield is modest compared to many traditional short-term bond funds at just over 2%, that's not the final say on what this one will pay.

Vanguard Short-Term Inflation-Protected Securities Index Fund's average duration is 2.5 years, which implies that a percentage-point increase in market interest rates would cause VTAPX to suffer a short-term drop of 2.5%. It also means a similar decrease in rates would cause it to rise a similar amount.

VTAPX also has an exchange-traded fund (ETF) share class. The Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) charges an even thinner 0.03% and has no investment minimum.

Learn more about VTAPX at the Vanguard provider site.

Fidelity Floating Rate High Income Fund

• Type: Bank loans
• Assets under management: $15.1 billion
• SEC yield: 6.7%
• Expenses: 0.73%
• Minimum initial investment: $0

The Fidelity Floating Rate High Income Fund (FFRHX) is an even more off-the-beaten-path solution to uncertain markets.

Bank loans are an odd corner of the fixed-income market. On the one hand, the debt tends to be of the senior secured variety. So it's paid back before other bonds. And it's backed by company assets.

On the other hand, the borrowers tend to be smaller and/or have lower credit quality. So bank loan ratings tend to be low.

Fidelity Floating Rate High Income Fund's trio of managers have compiled roughly 580 bank loans from roughly 450 issuers, including privately held outfits such as Bass Pro Shops, Acrisure and Golden Nugget.

And its credit quality is wanting: A quarter of assets sit in the highest tier of junk ratings (BB). Just 2% enjoys an investment-grade rating. The remaining majority is B-rated or below.

Nonetheless, these holdings could be resilient because they also feature floating rates. This means the interest they pay is tied to a reference rate, such as the Secured Overnight Financing Rate (SOFR), and changes alongside that reference rate.

Why does that matter? Because while an increase to the federal funds rate often causes existing bonds with lower rates to drop in value, floating-rate loans generally see their coupon rates rise, helping the loans maintain their value.

Bank loans are thus said to have low duration risk. We can see it in FFRHX's duration of just 0.2 years, which implies that a percentage-point change in interest rates in either direction would have a minimal impact on its price.

That protection isn't infinite, though. If the Fed begins to aggressively raise rates, the higher repayment rates could take a serious toll on borrowers' balance sheets.

Learn more about FFRHX at the Fidelity provider site.

Vanguard Federal Money Market Fund Investor Shares

• Type: Money market
• Assets under management: $377.8 billion
• 7-day SEC yield: 3.8%
• Expenses: 0.11%
• Minimum initial investment: $3,000

Perhaps the safest move you can make in your brokerage account, short of going straight to cash, is to stash some of your assets into a money market fund.

Money market funds invest in high-quality short-term debt, including Treasury bills and commercial paper. They typically feature a net asset value of $1 per share, and they aim to maintain that value. Growth is not the point, or really even an option.

You get interest income and peace of mind. Nothing more, nothing less.

The Vanguard Federal Money Market Fund Investor Shares (VMFXX) is a government money market fund that owns U.S. government securities and repurchase agreements (known as "repos") collateralized by U.S. government securities or cash.

Right now, the portfolio is a roughly 40/35/25 blend of U.S. government obligations, T-bills and repos.

Most bond funds measure their holdings in terms of years. VMFXX's average maturity is just 24 days. Money market funds' duration risk is so negligible that it's not even listed.

The reward usually matches the risk. Right now, we're seeing a 3.8% yield, reflecting volatility at the short end and across the yield curve. Still, our money remains safe and accessible.

Vanguard is taking much less of that in fees than just about any other provider, at a meager 11 basis points annually. Note that a basis point is one one-hundredth of a percentage point.

Learn more about VMFXX at the Vanguard provider site.

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You sold a second home, earned a sizable year-end bonus or received an inheritance. The check arrives, and it's equal parts exciting and overwhelming.

You think of all the ways you plan to use that check, but first you have to deposit it. And this is where you might run into challenges.

To make what could be a frustrating situation less stressful, I am going to show you some obstacles you could encounter and ways to work around them when depositing a substantial check.

Depositing a large check isn't easy

Banks want to protect themselves from scammers. So they impose mobile and other deposit restrictions.

That's why each bank has its own policy for larger check deposits. In general, if your check is over $10,000, a mobile deposit might not work. If you don't have a branch nearby, what do you do?

Thankfully, it's not hopeless. First, contact your bank. Explain your situation and see what options are available. They might suggest overnighting the check. Use certified mail to track your package and ensure it arrives.

Credit union members might have access to partner branches. This means you can visit a participating branch to conduct transactions. However, I recommend calling that partner branch in advance and explaining your situation to ensure they can help.

You could also contact the check issuer and request an electronic payment instead. You might have to pay a stop-payment or wire transfer fee, but this guarantees you receive the money without jumping through any hoops.

And when you receive the money, here's a smart strategy.

Grow your wealth while planning for the future

Receiving a large deposit is exhilarating until you have to determine what to do with it. That's why I recommend opening a savings account or storing it in a short-term certificate of deposit while figuring out next steps.

If you need cash access, a high-yield savings account will be your best bet. Look for online banks since they offer higher APYs with no monthly fees. Newtek Bank is our top choice at the time of this writing, offering a 4.20% APY.

The other thing to keep in mind is that high-yield savings accounts have variable interest rates. If the Fed issues another rate hike, you could receive an even higher APY.

Alternatively, a certificate of deposit is perfect for storing money away for a few months and not touching it. Some CDs offer higher APYs than high-yield savings accounts, giving you a better way to grow your deposit.

Use this Bankrate tool to find the best option for your goals:

Remember, if you need to break a CD term, you'll incur early termination fees. So, if you're on the fence about cash flow, use a high-yield savings account for a few months until you have a plan in place.

Ultimately, depositing a large check can be challenging, but it's doable. Contact your bank to learn more about their deposit policies. Once your deposit goes through, buy yourself time with a short-term CD or high-yield savings account, where your money grows even more as you plan for next steps.

Speaking of planning, if you come into a lot of cash and need help with next steps, consider a reputable financial adviser or personal banker. They can work with you to establish goals that help you build wealth, pay off debt and plan for any tax implications.

If you don't have an adviser, use this Bankrate tool to find a reputable one:

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Mortgage rates are an important factor when it comes to affordability in the housing market. And unfortunately, rates just went up again, potentially complicating plans for homeowners who want to refinance, relocate or downsize.

According to Freddie Mac, the average 30-year fixed mortgage rate recently reached 7.28%, while the 15-year rate increased to 6.60%. Meanwhile, the Mortgage Bankers Association reported that mortgage applications fell 6% overall and purchase applications dropped 4% as rates moved higher.

For homeowners who have a decent amount of equity, higher rates don't necessarily mean you need to put your plans to refinance or buy on hold. There are several factors to consider, such as your mortgage interest rate, equity, cash flow and how long you expect to own your home. Here's what you need to consider now that mortgage rates have increased again.

Is refinancing off the table?

Generally, refinancing can be a good option when you can lock in a lower interest rate and reduce the overall cost of your mortgage. The Mortgage Bankers Association's latest Weekly Applications Survey found that refinance applications fell 9% from the previous week, but that doesn't necessarily mean refinancing is off the table for everyone.

Seeing rates go up can be discouraging, but it's important to factor in your current interest rate, remaining balance, closing costs and how long you expect to stay in your home.

For example, someone who took out a 30-year mortgage at 7.5% a few years ago may still benefit from refinancing, particularly if they can qualify for a lower rate or want to shorten the loan term. But the potential savings depend on the new rate, remaining loan balance, closing costs and how long they plan to keep the loan.

If refinancing costs $6,000, for example, and lowers your payment by $250 per month, it would take around 24 months to recoup those costs. This is your refinance "break-even point." You can calculate it by dividing your total refinancing costs by your expected monthly savings. That's an important number to consider, especially if you aren't sure how long you plan to stay in your home.

Lowering your interest rate isn't the only reason to consider refinancing. Someone approaching retirement might refinance from a 30-year loan into a 15-year mortgage with the goal of eliminating mortgage debt sooner. But that strategy could significantly increase the monthly payment, so consider how it fits into your retirement cash flow before committing.

Should you choose a 15-year or 30-year mortgage?

Fifteen-year and 30-year fixed-rate mortgages are two common options when buying a home or refinancing, and each comes with different trade-offs.

A 15-year mortgage typically has a lower interest rate and can significantly reduce the amount of interest you pay over the life of the loan. The trade-off is a higher required monthly payment.

A 30-year mortgage spreads payments over twice as long, resulting in a lower required monthly payment but substantially more interest if you keep the loan for the full term.

Here's how the principal and interest payments on a $400,000 mortgage compare using recent average rates from Freddie Mac:

Figures are approximate and assume the loan is held for the full term. Payments include principal and interest only and exclude taxes, homeowners insurance, HOA fees, closing costs and other housing expenses.

In this example, choosing the 15-year mortgage increases the monthly principal-and-interest payment by about $769 but saves more than $354,000 in interest if the loan is held for its full term.

That doesn't necessarily make the shorter loan term the better choice. A 30-year mortgage offers a lower required monthly payment, which can provide more flexibility, particularly if you're approaching retirement and want to keep fixed expenses manageable.

You may also be able to make additional principal payments when your budget allows, reducing your balance and interest costs without committing to the higher required payment of a 15-year mortgage.

How downsizing can change the calculation

Downsizing may seem like an obvious way to lower your expenses in retirement, but moving to a smaller home doesn't necessarily mean you'll spend less. If you currently have a mortgage rate around 3%, for example, taking out a new mortgage at 7% could offset some of the savings from buying a less expensive home.

Consider a homeowner who bought a home with a $320,000, 30-year mortgage at 3% and has lived there for 10 years. Their home is now worth $400,000 and they still owe about $243,000, giving them roughly $157,000 in equity before selling costs.

If they sell and use that equity to buy a $320,000 home, they would need a new mortgage of about $163,000. Here's how staying put compares with downsizing at today's higher mortgage rate.

In this example, the homeowner moves to a house that costs $80,000 less and reduces the amount owed by about $80,000. Yet the required principal-and-interest payment falls by only about $232 per month because the new mortgage carries a much higher interest rate.

There's another trade-off. Staying put means the existing mortgage will be paid off in about 20 years, while taking out a new 30-year mortgage resets the clock. A shorter loan term or additional principal payments could reduce interest costs, but would also reduce the monthly cash-flow benefit of downsizing.

The mortgage payment isn't the only number to consider. Compare property taxes, homeowners insurance, HOA fees, utilities and expected maintenance costs for both homes. If you're moving to another area, particularly another state, research local property taxes and insurance costs rather than relying on what the current homeowner pays.

Your existing home equity also gives you options. You could make a larger down payment or potentially buy a smaller home outright. But putting a large portion of your wealth into a home could leave you with less liquidity for emergencies, investments, travel and other retirement expenses.

Ultimately, downsizing is about more than buying a less expensive home. Consider how the move would affect your monthly cash flow, available savings and overall retirement plan after accounting for selling and moving costs.

Deciding how much of your savings to put toward a home can have implications for the rest of your retirement plan. A financial adviser can help you weigh your housing costs, cash flow and other financial priorities before you make a move.

Use the tool below to connect with a vetted financial professional today:

Higher rates could give buyers some negotiating power

There's at least one potential upside to today's higher mortgage rates: Fewer buyers may be competing for homes. The Mortgage Bankers Association's seasonally adjusted Purchase Index recently fell 4% in a single week, while unadjusted purchase applications were 14% lower than the same week a year earlier.

Less competition could give some buyers more negotiating power, particularly in markets where homes are taking longer to sell. That may create opportunities to negotiate on price, closing costs, repairs or other seller concessions.

Meanwhile, buyers in many markets have gained more negotiating leverage. Homes spent a median of 61 days on the market nationally in September, according to Realtor.com.

Redfin also found that sellers gave concessions in 44.7% of U.S. home sales in the three months ending August, up from 42.6% a year earlier. Concessions can include money toward closing costs, repairs or mortgage-rate buydowns.

Of course, housing markets vary significantly by location. If you're considering a move, look at the number of homes for sale in your target area, how long properties have been on the market and whether sellers are cutting prices or offering concessions.

Those factors can give you a better sense of how much negotiating power you may have. A seller who's had a home on the market for an extended period, for example, may be more willing to negotiate on price, closing costs or repairs. That could provide another way to reduce the cost of buying a home without focusing solely on mortgage rates.

What to watch next

Mortgage rates are always changing, and Federal Reserve decisions aren't the only factor that determines where they go. Rates are also influenced by Treasury yields, inflation expectations and broader conditions in the bond market.

Rather than trying to predict exactly when mortgage rates will peak or waiting for a specific average rate, determine what numbers would make a move work for you based on your unique situation.

If you're thinking about downsizing, calculate the purchase price, down payment and monthly housing cost you can comfortably afford. If you're hoping to refinance, determine the interest rate that would provide enough monthly savings to justify the closing costs.

Mortgage rates may eventually move lower, but homeowners with significant equity don't necessarily need to put their plans on hold until they do. The more useful question is whether the numbers work for your finances, your retirement income and the amount of flexibility you want to preserve.

Use the tool below to compare some of today's top mortgage offers:

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You've come into some cash, or you're looking to allocate some money away from the rollercoaster of market volatility as you approach retirement. So, where do you place it?

If you're looking to store significant cash (think $100,000), a smart solution can be a jumbo CD. Jumbo CDs come in a variety of terms to match your savings goals. And with competitive APYs, you can earn thousands of dollars effortlessly.

I'll show you how much you can earn with the best jumbo CD rates and whether now is the right time to lock one in.

How much can I earn with an 18-month jumbo CD?

I review CD rates regularly and have found that jumbo CDs consistently offer some of the highest APYs. CreditOne Bank offers an 18-month CD with a 4.50% APY and no monthly account fees.

If you deposit the minimum $100,000 into this CD, you'll earn $6,825.38 effortlessly over just a year and a half.

Of course, this term might not suit your timeline. Jumbo CDs carry early withdrawal penalties. For larger cash balances, breaking a CD early can mean losing thousands of dollars in interest.

If you want to earn a higher rate but don't want to tie up your cash for that long, use this Bankrate tool to find a term that matches your needs:

Another factor to consider is that CDs have fixed interest rates. This means that even if the Federal Reserve hikes rates during your term, your APY will remain unchanged.

Is the timing right for a longer-term CD?

The Fed is unlikely to make a move at its October meeting. The same doesn't apply for the December meeting, especially if sticky inflation remains.

This means if the Fed hikes rates again, you could miss out on a higher APY. With that significant a deposit, you'll lose out on hundreds of extra dollars.

An alternative is to look for a shorter-term option (ideally six months) for now. This positions you to earn a high APY now, and when the CD matures, you could earn an even higher APY.

However, if you don't want to chase rates and want a guaranteed return on your cash, the 18-month jumbo CD from CreditOne Bank checks all the boxes.

Don't forget to plan for this

CD earnings are taxed as ordinary income, so your marginal tax rate applies to your yield. A financial adviser or accountant can help you plan accordingly.

As Dat Ngo, CPA at Vetted Prop Firms, notes: "One thing savers often miss when comparing jumbo CDs to high-yield savings accounts is the tax timing. With a CD, you typically owe income tax on interest in the year it's earned — even if the term hasn't matured yet — so a multi-year CD on $100k can create a recurring tax bill you weren't budgeting for."

What are the best reasons to use a jumbo CD?

Some of the best options include:

• You have a shorter-term savings goal: Whether you're planning a dream vacation, want to pay in cash for home remodels or have your eyes on another expense, 18 months can be the sweet spot to make some money and achieve these goals.
• You're retiring soon or are retired: You want to protect some of your hard-earned money from risk while earning a guaranteed return.
• FDIC Insurance: FDIC-insured banks are generally covered up to $250,000 per depositor, per insured bank, for each account ownership category. That protection can make CDs an attractive place to hold a large cash balance while earning a guaranteed return.

No matter your financial strategy, jumbo CDs offer a compelling blend of security and competitive yields. Locking in a top-tier APY now puts your money to work safely —maximizing your returns without the risk.

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Recently, the unemployment rate hovered at about 4%, according to the U.S. Bureau of Labor Statistics. By historical standards, that's a healthy level. But at the same time, a growing number of Americans have been out of work for an extended period. In July, about 1.8 million people had been unemployed for at least 27 weeks. That figure is up by about 45% from 2019 and 55% from 2023, according to an analysis of BLS data from CNBC.

If you're searching for a job — whether you haven't worked for a while or you're currently employed and ready for a change — you can make moves to improve your chances of landing a position that suits you. Use the advice below to strengthen your application and résumé, build your network, and prepare for interviews.

Polish your application

In some ways, technology has made the job hunt easier, with online platforms such as Indeed, LinkedIn, and ZipRecruiter offering a streamlined way to look for positions that fit your skills and submit your application. But with many employers using software and artificial-intelligence tools to screen applications, job seekers need to strategize to stand out. Sam DeMase, a career expert at ZipRecruiter, says that because these programs search for generic keywords, you should tailor your résumé to incorporate relevant keywords from the job description, including five specific accomplishments.

Allan Brown, a résumé writer based in San Francisco, advises listing those accomplishments in measurable terms. You might, for instance, say that in a previous position, you "improved sales by 20% through a targeted marketing campaign." Especially if you're in a creative field, such as writing or graphic design, consider adding a link to a personal website with examples of your work.

Writing a cover letter — a document that introduces you to the potential employer, explains your interest in the role and adds context to the skills listed in your résumé — could give you a leg up as well. While many companies don't require a cover letter, and recruiters don't always read them, a well-composed letter with a personalized message about your experience could catch an employer's eye, says DeMase.

Take any other opportunities to distinguish yourself, too. ZipRecruiter offers a feature called "Be Seen First" that lets you add a few sentences to your application explaining your interest in the role. ZipRecruiter moves applications that include these messages to the top of the employer's list.

It's best to craft your application materials yourself, rather than have an AI tool do it, so that your unique voice comes across, says DeMase. But you can use AI to your advantage in other ways, asking a platform such as ChatGPT to run a review and suggest spelling and grammar fixes or improvements to the structure.

If you're struggling to land interviews or want assistance from a professional who's up to date on trends in the job market, hiring a résumé writer may be worthwhile. Prices vary but often start at about $240 per résumé, Brown says, with a typical turnaround period of three days.

Leverage your network

By some estimates, as many as 70% to 80% of job openings aren't publicly listed, filled instead by employees who already work for the company or through referrals. To improve your chances of learning about positions in this "hidden job market," tap into your network of friends, family and colleagues, says DeMase.

You can also connect with other professionals through job fairs or conferences held by organizations in your industry. Sign up for industry newsletters to learn about local business-networking events, and search websites, such as Eventbrite, that list them. Before you go to an event, prepare a 30- to 60-second elevator pitch explaining your qualifications and achievements.

LinkedIn can be an effective place to network and highlight your skills online. In your profile headline, write a brief description of your strengths and results you've achieved that could add value for a prospective employer, DeMase suggests. For example, you might write, "Using my skills in communication and experience in social media, I help companies grow their online customer base."

Search for and get involved in discussions about your industry on LinkedIn, and aim to send connection requests to at least five people weekly. DeMase advises against asking other professionals for a job directly; instead, send private messages that showcase your expertise. This can help keep you on the radar when jobs become available.

Ace the interview

Once you've scored an interview, take steps to go into it with confidence. It's a good idea to research details such as the company's mission, customers and products to help shape your responses. That will also provide background you can use to ask smart questions about the company and the role.

DeMase recommends writing down and practicing your responses to anticipated interview questions using the CARE (context, action, results, equivalence) technique. During the interview, describe the context of a situation in a previous job where you had to find a solution to a problem. Tell the interviewer the action you took to solve the issue and the positive results that came from it. You can also detail how your experience is equivalent to the experience needed for the job you want.

After your interview (ideally within 24 hours), send a thank-you e-mail, including a reminder of how your experience could benefit the company, says DeMase. If you haven't heard back within a week, follow up to see whether the position has been filled and to reiterate your interest in the job.

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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The most dangerous word in American estate planning is "permanent."

Congress used it last summer when it enacted the One Big Beautiful Bill Act (OBBBA), and every planning practice in the country quietly lost its sense of urgency in the days that followed.

The relief was understandable. For much of the preceding three years, the profession had operated under a deadline: The doubled estate exemption in the Tax Cuts and Jobs Act (TCJA) was scheduled to sunset at the end of 2025, and families with substantial wealth were counseled — correctly, under the law at the time — to compress years of transfer planning into a matter of months.

Then the deadline evaporated — and with it, for many families, the last practical motivation to reopen the estate binder.

The deadline that never came

On July 4, 2025, President Donald Trump signed the OBBBA into effect, setting the estate, gift and generation-skipping transfer tax exemption at $15 million per individual for 2026, or $30 million for married couples — up from $13.99 million and $27.98 million, respectively, in 2025.

It also provides for inflation adjustments beginning in 2027 using 2025 as the base year. The top federal rate remains 40%.

The 2026 annual gift exclusion for 2026 is $19,000.

Since the OBBBA took effect, for the great majority of Americans with substantial wealth — households with net worth between roughly $5 million and $30 million — the federal estate tax has effectively receded as a planning concern.

Why 'permanent' is a dangerous word

"Permanent," in tax legislation, is a term of art. It signals that Congress has chosen not to include a scheduled expiration in the statute — nothing more.

A future Congress remains free to revise the number at any time, and the historical record suggests it does so with regularity.

In 2001, the federal estate tax exemption stood at $675,000. By 2002, it had risen to $1 million. In 2009, it reached $3.5 million. In 2010, the estate tax was briefly repealed altogether, then reinstated at $5 million in 2011.

The TCJA doubled that figure to $11.18 million in 2018, and it drifted upward with inflation being lifted it to its current level.

Against that record, "permanent" is a description of legislative posture, not of statutory reality.

The behavioral response most families adopt on hearing the word — read the news, exhale, close the binder — is precisely the wrong one.

Four questions your documents need to address now

1. Does your existing plan still function when the exemption rises rather than falls?

Many trusts drafted during the preceding decade contain formula clauses — provisions that automatically allocate assets between a credit-shelter share and a marital share based on the exemption in effect at the first spouse's death.

A formula written to divide an estate at a $5 million or $7 million threshold behaves very differently at $15 million.

In some drafting patterns, the credit-shelter share now consumes nearly the entire estate and starves the surviving spouse's marital share. In others, the reverse occurs.

Neither outcome may reflect what the family intended when the documents were signed.

The remedy is unglamorous: Read the formula language, model the outcome under current law and amend or restate where the mechanics no longer serve the intent.

2. How should appreciated assets in your estate be handled?

This question inverts a decade of planning orthodoxy. Under the pre-OBBBA regime, the arithmetic favored removing appreciated assets from the estate — through gifts, sales to intentionally defective grantor trusts or grantor retained annuity trusts — to avoid a 40% estate tax that would otherwise apply.

That calculus was often correct. Under a permanent $30 million exemption, it frequently is not.

For families comfortably beneath the threshold, retaining appreciated assets in the estate captures the basis step-up permitted at death, which eliminates embedded capital gain from a lifetime of appreciation.

A 23.8% federal capital gains rate applied to decades of unrealized growth can now exceed the estate tax cost of holding the asset — often by a substantial margin.

The old default of "give it away" deserves a fresh calculation.

3. What impact will state estate or inheritance taxes have?

Several states levy their own estate tax at thresholds far below the federal exemptions, and additional jurisdictions impose inheritance tax on the recipient rather than the estate.

• Oregon begins taxation at $1 million
• Massachusetts at $2 million
• Washington at approximately $3 million
• New York at $7.35 million, with a distinctive cliff at 105% of exemption above which the entire estate becomes taxable from the first dollar

Our practice, Palmer Wealth Group, (I am the CEO), is based in Texas, which imposes no state estate tax, a genuine planning advantage for its residents.

But the analysis rarely stays clean. Property held in another state, family members domiciled elsewhere or a beneficiary residing in an inheritance tax jurisdiction can each trigger exposure the federal calculation misses entirely.

State thresholds change more frequently than federal, and several states index their exemptions annually. What was safe last year may not be safe this year.

4. Which trust strategies are the most tax-efficient?

This one addresses what existing trusts have quietly become. When federal estate tax was the binding constraint, the goal of an irrevocable trust was often to remove assets from the grantor's estate as efficiently as possible. Income taxation was a secondary concern. It is no longer.

Now, a trust reaches the top 37% federal income tax bracket at $16,000 of undistributed income in 2026 — a threshold a single individual does not encounter until $640,600 of taxable income.

For a trust with meaningful investment assets, the compression is severe.

Distributable net income planning, grantor-trust elections, situs selection and the choice between distributing and accumulating income each become materially more important once the estate tax rationale no longer overwhelms every other consideration.

What this review actually looks like

Taken together, these four questions form the shape of an estate plan review that has these components:

• Documentary. Retrieve the current trust and will documents and read the formula clauses aloud. The exercise is more revealing than most families expect.
• Arithmetic. Re-inventory the estate against the new estate tax threshold, separating what remains a candidate for lifetime transfer from what has quietly become a candidate for basis step-up.
• Geographic. identify every state in which the family owns real property, maintains a domicile or has significant beneficiaries and map the exposure against current state statutes.

The fourth component is coordinative — and, in some respects, it's the most difficult because estate planning, tax planning and investment management sit on three separate professional desks, plus a personal one:

• The attorney drafts the documents
• The accountant computes the return
• The adviser manages the assets
• The family too often serves as the unpaid coordinator among them

In our practice, the review typically begins with the attorney reading the formula clauses in the family's presence and ends with the accountant and the investment adviser at the same table, working from the same current inventory.

The mechanics are ordinary; the coordination is not. Its absence — not the tax code — is what most often causes an updated plan to remain uncompleted after the review begins.

Nothing in the current law prevents a future Congress from changing the exemption again. The 40% rate, the state estate tax landscape and the compressed income tax brackets that apply to trusts all remain what they were before OBBBA.

What has changed is the immediacy of the pressure to act. That change is welcome, but it should not be mistaken for a change in the underlying discipline.

Estate planning is not the practice of racing deadlines. It is the practice of building a plan that survives whatever the rules become next.

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• Which Trust Type Saves Your Kids The Most Money?

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.

It’s perfectly natural to want your children to be well cared for after you’re gone. It’s also natural to wonder if they can manage an inheritance with the same care it took to build. After all, loving your children and trusting them with a large windfall are not the same thing.

An outright bequest can overwhelm a child who has never managed a large sum of money — much less a family business or other complex assets. A spendthrift trust, on the other hand, allows you to provide for them without dropping a huge lump sum into their checking account all at once.

What a spendthrift trust actually does

The name "spendthrift" comes from an English term for someone who is extravagant and recklessly wasteful with money. A spendthrift trust, an often-misunderstood estate-planning tool, lets you provide for your loved ones while protecting your legacy from poor decisions and creditors. Unlike a regular trust that lets you hand over assets, money or property all at once, a spendthrift trust rations money gradually according to its terms. That’s because the trust — not your children or other beneficiaries — owns the assets.

The trustee manages the spendthrift trust, deciding when, how much, and for what purpose funds are distributed according to your set terms. Your child does not have a right to demand a lump sum, to use the trust as collateral for a loan, or to pay a creditor. Sometimes this can be misconstrued as a vote of no confidence. However, if explained well, it is actually just the opposite, as this type of trust can help support your loved ones for decades when structured properly.

The risks of an outright inheritance

Over the next 25 years, trillions in U.S. personal assets will change hands in what’s known as the Great Wealth Transfer. The scale of that alone can make you feel a little uneasy about your kids’ finances after you’re gone.

Research by Morning Consult, in partnership with Kiplinger, shows why that uneasiness is so common: families often aren’t on the same page. Nearly twice as many parents expect to leave a meaningful inheritance (46%) as adult children who expect to receive one (23%). The same survey found that 11% of parents also worry their children won’t handle an inheritance responsibly.

With an outright inheritance, money and assets transfer directly to your beneficiaries without restrictions. That gives them full control over the inherited assets immediately upon your death and can expose those assets to risks that you never intended, especially if the beneficiary isn’t prepared. It’s not unusual that a lump-sum inheritance disappears faster than it arrived. The value of a spendthrift trust is that it can protect your heirs not just from creditors or lawsuits, but sometimes from their own financial mismanagement.

Who is a spendthrift trust for?

Spendthrift trusts are especially useful for beneficiaries who:

• Are young or financially immature, such as a teenager or a grandchild.
• Have special needs and/or receive government benefits.
• Have mounds of high-interest debt.
• Might be facing a divorce.
• Have a history of poor money management.
• May struggle with gambling or other addiction.
• Works in a profession with a high risk of lawsuits, such as doctors, lawyers and business owners.
• Is at risk of financial scams or exploitation.

When creditors can access trust assets

Spendthrift protection is not airtight. Even in states with clear statutes, courts may still allow creditors to access assets despite the spendthrift provision. For instance:

• Child support and alimony. Most states treat child support and alimony obligations as exceptions to spendthrift protection. A former spouse or child owed support can often compel a court to order distributions or wage garnishment.
• Basic needs providers. Some states allow creditors who provide beneficiaries with necessities, such as food, shelter or medical care, to file a claim against trust assets.
• Federal government claims. Federal tax debts and certain other federal obligations, such as defaulted federal student loans, may override a state's spendthrift protections.
• Tort victims. Some states allow victims of the beneficiary's intentional wrongdoing to obtain trust assets.

The specific exceptions depend entirely on your state's law, and a spendthrift provision that works well in one state may offer fewer protections in another state. Keep in mind, too, that the protection covers only those assets held inside the trust. Once you distribute the assets to your beneficiaries, they become the beneficiaries' property and ordinary creditor rules apply.

How to write the trust so it actually works

Creating a spendthrift trust is similar to creating any other trust, and the spendthrift clause itself can be relatively short. Under the Uniform Trust Code, saying the beneficiary’s interest is held “subject to a spendthrift trust” is often enough. However, you may choose to add provisions and conditions that let you decide when and how much to distribute to the beneficiary.

For example, you may add a provision that restricts how much your beneficiary can access each year. Or, you might add a condition that limits how your beneficiary can spend the money.

"Let’s say you are providing a $200,000 inheritance for your two children. You have one child who isn’t especially careful with money and the other is," says Oliver Kevin Morrisey, inheritance and estate lawyer at Empower Probate Lawyers. "You don’t split $200,000 equally. For the impulse spender, you might include a provision in the trust that pays $2,000 per month and can be used only for rent, education or healthcare. The other child can receive the $200,000 outright."

However, states have different rules about what you can and can’t stipulate in a spendthrift provision. Scott Jones, founder & financial advisor of Genesis Wealth Advisor Group, LLC, says, "In many states, an inheritance can be reached by creditors the moment it lands in the beneficiary's name, so the money mom and dad worked forty years to save can be gone before the beneficiary sees any of it."

That’s why it’s wise to consult with an estate planning attorney to ensure you’re following your state’s rules concerning the spendthrift provision.

Remember that a spendthrift clause may be overkill if your children or other beneficiaries are financially mature and stable, you have a modest estate, or you have no concerns about excessive spending or possible claims from creditors. A revocable living trust that becomes irrevocable at your death, with a spendthrift clause included, is often enough for many families.

How to choose a trustee

Choosing the right trustee for a spendthrift trust matters. You can choose a family member, a good friend, a bank or a trust company. Family members likely know your needs best, but a professional trustee with no emotional attachment can offer an objective third-party perspective. No matter who you pick, be sure the trustee is knowledgeable about financial matters because this person will distribute funds, protect assets, and ensure your beneficiaries use the money as you intended.

Pros and cons of a spendthrift trust

A spendthrift trust is one way to tell your beneficiaries you love them enough to protect the inheritance you built from impulsive spending or financial mismanagement that has nothing to do with whether or not they are "good kids." Instead, it is your way to help ensure their long-term financial security.

But keep in mind the drawbacks. Your beneficiaries have limited access to their inheritance, which can be frustrating in an emergency. And since the trust relies entirely on the trustee for distributions, disagreements may occur. Roughly 33% of adult children expect an inheritance will create conflict with their siblings, according to the Kiplinger-Money Consult survey. With that in mind, the best way to prevent arguments among your children is to take the first step. It’s never too early to start talking about your kids' finances.

Related Content

• We Asked 5,000 Americans About Inheritance and the Great Wealth Transfer. Here's What We Learned
• Why So Many Families Are Unprepared for the Great Wealth Transfer — and What You Can Do About It
• How to Talk to Your Adult Kids About Their Inheritance
• Your Beneficiaries Might Be Outdated. Here's How to Check

Apparently, artificial intelligence is going to take our jobs.

All of them.

We'll be sitting home in our pajamas while bots do our work, answer our emails, manage our money and, presumably, complain to each other about the boss at the virtual watercooler.

I'm not buying it.

We've seen this movie before

Every technological revolution arrives carrying the same warning: This time, the machines are coming for us.

The loom was going to replace the weaver. The automobile was going to destroy jobs tied to the horse. ATMs were supposed to eliminate bank tellers. The internet was going to make entire industries — and plenty of workers — obsolete.

Now it is AI's turn.

The headlines are certainly frightening enough. AI can write reports, analyze financial statements, create advertising, answer customer questions, write computer code and increasingly perform tasks that once required highly trained professionals.

So, should we start cleaning out our desks?

Not so fast

With every new technology, some jobs have disappeared. Others have changed. And entirely new industries — and millions of jobs — have been created that nobody could have imagined.

So maybe we're asking the wrong question.

Here's an even more provocative question: What if AI doesn't make people less valuable? What if it makes the right people much more valuable?

That is where this gets interesting.

AI can analyze a mountain of data before I finish my coffee. It can draft a memo, summarize a meeting, write computer code and probably compose a perfectly respectable thank-you note.

But can it know when the numbers are technically right and the decision is dead wrong? Can it read a room? Can it recognize that a frightened employee doesn't need another spreadsheet — they need someone to tell them what happens next? Can it take responsibility?

Can it have an original idea that comes from 40 years of experience, mistakes, relationships, intuition and occasionally falling flat on its face?

Not yet. And maybe that's the point.

The future may not belong to AI

The future may belong to people who figure out how to use AI.

My good friend and AI expert Priyanka Rao co-authored a Newsweek article (paywall), "The Empty Office: What Happens When AI Runs the Company." I asked her the obvious question: "If AI can do entry-level work, where do future experts come from?"

Rao answered candidly. "This is the one I actually worry about. The risk isn't the people who get things wrong. It's the people who get things wrong and are certain they're right, because they've stopped doing the thinking that would tell them otherwise.

"That's what happens when someone learns a skill by reviewing AI's output instead of producing their own first draft under pressure and getting it corrected. Juniors used to learn by doing something badly and having someone senior take it apart.

"If AI does the first draft, that correction loop disappears quietly, and nobody notices for a few years, until someone gets promoted into a senior seat having never actually done the work unsupervised."

What could AI do?

• AI could produce a similar transformation across white-collar America
• An accountant may spend less time assembling numbers and more time interpreting them
• A financial adviser may spend less time generating reports and more time understanding a family's goals
• A doctor may spend less time documenting a visit and more time talking with a patient
• A lawyer may spend less time searching thousands of documents and more time developing strategy
• A small-business owner may suddenly have access to analytical and administrative capabilities that previously required an entire staff

Productivity can create jobs, too

We tend to think about AI productivity backward.

If 10 employees can accomplish the work of 20, we immediately see 10 jobs disappearing. But what if those 10 people can now serve twice as many customers? What if a company that previously couldn't afford a marketing department can suddenly market nationally?

What if an entrepreneur can use AI to handle accounting, research, scheduling and customer service — and therefore finally afford to hire salespeople, designers, technicians or other specialists?

Technology doesn't simply reduce the number of people required to produce something. By lowering the cost of producing it, technology can increase demand. That can create entirely new businesses — and entirely new categories of jobs.

Few parents in 1990 were encouraging their children to become app developers, social-media managers, cybersecurity specialists or cloud architects. Those jobs didn't exist.

We should assume the AI economy will invent occupations we can't yet name.

That doesn't mean we should ignore the casualties. Not everyone is going to win. Technological transitions can be brutal for the people caught on the wrong side of them.

Early-career workers may be particularly vulnerable because many of the traditional entry-level assignments — research, basic analysis, drafting and administrative work — are exactly the tasks AI can perform well.

Don't compete with AI — learn to manage it

What do you advise your young colleagues to do? I think the financial lesson is surprisingly simple. Advise them not to build their career around doing something AI can do faster and cheaper. Build it around what AI allows them to do better.

Learn how to question it. Direct it. Check it. Correct it. Combine its capabilities with expertise it doesn't possess. And cultivate the stubbornly human skills that become more valuable as machines become more capable: Judgment, empathy, creativity, leadership, negotiation, ethics, curiosity and trust.

The person who knows how to use AI may replace the person who doesn't. But I suspect there is another possibility that receives far less attention. AI may allow one human being to accomplish things that previously required 10.

And when millions of people suddenly become capable of doing more, building more and creating more, history suggests they don't simply go home.

They invent something else. The office of the future may indeed contain fewer people doing yesterday's work. But that doesn't necessarily mean there will be fewer people working. It may simply mean we'll need them somewhere else.

Five ways to make yourself and your kids harder to replace

1. Stop hiding from AI.

If your reaction to AI is, "I don't understand it, and I don't want to," you may have just volunteered to become obsolete. You don't have to become a computer scientist. You do have to learn how AI can make you better at the job you already have.

Start using it. Ask it questions. Let it summarize something. Have it analyze information, critique your work or give you 10 suggestions for solving a problem. Then — and this is important — use your brain to decide whether it's right.

2. Figure out which parts of your job a machine can do.

Make a list of what you do all day. If half of it consists of moving information from one place to another, producing routine reports, scheduling, summarizing or creating first drafts, assume AI is eventually going to do some of that.

Don't defend those tasks. Give them away. Then ask the much more important question: What can I do with the time I just got back?

That's where your future job may be hiding.

3. Double down on being human.

AI has information. You have judgment.

You can negotiate with a difficult client, recognize that your boss is about to make a terrible decision, calm an angry customer, motivate a team, sell an idea and take responsibility when something goes wrong.

Those aren't "soft skills." In an AI economy, they may become some of our hardest assets to replace.

4. Become the person who knows how to use AI — not the person waiting to be taught.

Don't wait for Human Resources to send you to AI Training 101. Experiment. Take a course outside of work. Ask your employer what AI tools the company is adopting and volunteer to test them.

And put those skills on your résumé. Don't just say, "Experienced in AI." Say what you actually accomplished: Used AI to reduce research time by 30%. Automated weekly reporting. Cut proposal preparation from three hours to one.

The World Economic Forum estimates that nearly 40% of the skills required on the job will change by 2030. That sounds frightening until you realize something important: Skills can be learned.

5. Don't make your job your financial life raft.

This is the part nobody wants to talk about.

Even if AI ultimately creates more jobs than it eliminates, that doesn't mean your job can't disappear.

• Build an emergency fund
• Pay down expensive debt
• Keep your résumé and network alive
• Don't automatically increase your lifestyle every time your salary increases
• Keep investing for retirement

Career resilience and financial resilience are becoming the same conversation. You don't need to predict exactly what AI will do to the workforce. You need to make sure you're financially prepared if it does something to yours.

Don't compete with the machine

The winners of the AI revolution probably won't be the people who know everything about artificial intelligence.

They'll be the people who know something AI doesn't: Their customers, their businesses, their colleagues, their industries — and themselves.

AI may be able to do 30% of your job.

Great.

Give it the 30%.

Then become indispensable at the other 70%.

Related Content

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• 6 Ways to Use AI to Improve Your Financial Life
• 6 Timeless Money Lessons That Prove the Best Financial Advice Often Isn't the Newest
• This Is the Biggest Financial Mistake Many Families Are Making
• Inflation Is the New Fixed Expense in Retirement: 5 Things That Actually Work to Address It (and What Doesn't)

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

The S&P 500 reached its first new all-time high since August, and the Nasdaq Composite hit a fresh peak for the second straight trading session, as selling pressure in the global bond market eased amid up-and-down intraday price action. With another earnings season on the horizon, investors, traders and speculators remain focused on the potential benefits of artificial intelligence (AI).

At the closing bell, the broad-based S&P 500 was up 0.6% to 7,819, a new all-time closing high, as the index extended its winning streak to four. The tech-heavy Nasdaq Composite also posted a new high, rising 0.5% to 27,599. The blue-chip Dow Jones Industrial Average, meanwhile, added 0.5% to 51,521. Papa Dow is still about 6% below its own new high.

"The fourth quarter is seasonally the strongest quarter, and November is the second strongest month," Louis Navellier of Navellier & Associates observes. Navellier also notes "that since 2027 is the third year of a Presidential election, which is the best-performing year for the S&P 500 during the Presidential election cycle, investor optimism is rising."

Navellier expects that "all the bickering about data centers and high energy prices will diminish" after midterm elections next month.

Indeed, as Kiplinger's Anne Kates-Smith writes, "If history is a guide, you can expect a power shift in Congress. But history also shows that whether your party is victorious or not, your portfolio is likely to survive the midterms unscathed—and maybe a little ahead."

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.

With traffic through the Strait of Hormuz improving in the face of rising attacks by Iran, the front-month West Texas Intermediate crude oil futures contract was higher by 0.4% to $89.80 per barrel. WTI closed above $100 as recently as September 18.

The 2-year Treasury yield was down 3.3 basis points to 4.798%, while the 10-year Treasury yield (-2.7 bps, 5.284%) and the 30-year Treasury yield (-0.5 bps, 5.659%) also pulled back from recent highs.

The $6 trillion stock

Maybe you're old enough to remember "The Six Million Dollar Man," maybe you're not. But the fact that Nvidia (NVDA, +0.1%) is on the verge of a $6 trillion market cap is at least as monumental as that TV show used to seem.

Even if only a naive segment of the audience was awed by what we imagined about bionics back then, if you're reading this, you're probably paying some attention to AI and robotics right now.

Indeed, that's what Nvidia refers to as "physical AI." The company says its research here "is driving the future of intelligent automation, enabling robots to handle complex tasks and safely collaborate with humans."

Meanwhile, renewed AI boom optimism lifted the Magnificent 7 stocks to a combined value of more than $25 trillion for the first time on Tuesday, according to Dow Jones Market Data.

In fact, Amazon (AMZN, +2.0%) and Microsoft (MSFT, +0.8%) outperformed Nvidia today, as markets continue to reprice their AI infrastructure initiatives.

Alphabet (GOOGL, +0.4%) and Apple (AAPL, +0.2%) were higher, too, though Meta Platforms (META, -0.4%) posted a modest loss.

Tesla's (TSLA, +0.5%) gain helped Elon Musk remain the world's first trillion-dollar man in net worth terms.

CEG gets another nuclear-level Mag 7 boost

Constellation Energy (CEG, +12.3%) was among the top-performing S&P 500 stocks after management of the electric company announced a new long-term deal with Google that includes a 20-year power purchase agreement.

The commitment from Alphabet's search subsidiary will support upgrades sufficient to add 890 megawatts of capacity at 11 Constellation-owned nuclear plants in Illinois, Pennsylvania and New Jersey.

Constellation is also using Google Cloud and Gemini Enterprise to establish an "AI for energy" blueprint focused on accelerating delivery, optimizing efficiency and protecting infrastructure.

Alphabet will buy another 2,700 MW from Constellation's broader power fleet over a 15-year period, and the companies aren't done making clean energy deals.

The utility stock was down 23.9% year to date through Monday, as markets waited for more news about power-hungry hyperscalers and their appetite for its nuclear capabilities.

In 2024, Constellation agreed to restart the Three Mile Island nuclear plant in Pennsylvania with support from a 20-year PPA with Microsoft. Last year, it reached a 20-year PPA with Meta.

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The Medicare Part D landscape is constantly evolving, brought on by major legislative updates like the permanent elimination of the "donut hole" and cap changes to out-of-pocket prescription spending. However, lower overall spending caps don't mean every plan offers equal value.

Private insurers set their own premiums, deductibles and pharmacy contracts, meaning two plans in the exact same zip code can carry dramatically different bottom-line costs for identical prescriptions.

Take this quick, 10-question quiz to test your knowledge about Part D and ensure you are well-prepared to select the coverage that is best for your health and budget this year.

And don't worry if you miss an answer, you can follow the links below the quiz to brush up on your knowledge.

More on Medicare Part D, from the Kiplinger retirement team:

• Medicare Part D Premiums Are Set to Hold Steady in 2027 Even After Subsidy Cuts
• 10 Things You Should Know About Medicare Part D Plans
• 8 Changes Coming to Medicare in 2027
• Your 2027 Medicare Open Enrollment Guide: Essential Dates and Notices
• Medicare 2027 Projections: Here's How Much Your Monthly Premiums Are Estimated to Rise

Amazon Prime Big Deal Days 2026 kicked off today — but so did a bunch of competing sales events from Amazon's major rivals. So, if you're looking to save on any big-ticket tech purchases on your wish list, now is a great time to find a deal. The trick is figuring out exactly which retailer's sale you should be shopping.

Ultimately, you should check prices across multiple retailers for whatever you are buying to find the best deal. But, as you'll see below, you also need to read the product pages closely.

In some cases, for example, the bundle deals vary in exactly what you're getting in the bundle at each retailer. In other cases, opting for the lowest price might mean taking a risk by buying from a third-party seller. So read through to find out what you might be trading by choosing one retailer's deal over another.

Save $100 on Arlo Pro 6 Home Security Cameras

If you're looking for DIY home security upgrades, the Best Buy three-camera bundle is the best deal if you're starting from scratch. It comes with a charging station and four rechargeable batteries.

Neither Amazon nor Walmart offer a bundle like this. The deals I've listed below for comparison are for the cameras themselves. If you went with either of these options, you would still need to buy a charging station and any spare batteries you might want.

With that said, if you already have a couple of Arlo cameras and a charging station, the camera-only deals at Amazon could be a better deal for you. There, you're getting four cameras for $190 compared to just three cameras for a little over $180 at Walmart. That's a full extra camera for just $10 more.

• Get three Arlo Pro 6 cameras with charging station and four batteries for $199.99 at Best Buy
• Get four Arlo Pro 6 cameras for $189.99 at Amazon
• Get three Arlo Pro 6 cameras for $180.98 at Walmart

Save 36% on the Yale Assure Lock 2 Fingerprint Keypad

Boost home security without having to remember lock codes with the Yale Assure Lock 2. It comes with a fingerprint scanner so you can just scan and open. But there's still a keypad so you can provide custom codes for visitors.

Right now, the Walmart option is $2 cheaper than Best Buy for what appears to be the same device — albeit only in satin nickel. If you look closely at the listings, the models are also slightly different.

At Best Buy, the model is YRD420-F-WF1. At Walmart, it's listed as YRD430-F-WF1. In reviewing the product descriptions for both, I can't find any meaningful differences between them.

So it's going to come down to your style preference. You can find three different finishes at Best Buy, all on sale for the same $189 price. At Walmart, only the satin nickel finish is on sale.

• Get the Yale Assure Lock 2 Fingerprint Keypad for $187 at Walmart
• Get the Yale Assure Lock 2 Fingerprint Keypad for $189.99 at Best Buy
• Get the Yale Assure Lock 2 Fingerprint Keypad for $230 at Amazon

Save $110 on the Vantrue N4 Pro Dash Cam

A dash cam is one of the best investments you can make for your car. In an accident, the video evidence will be crucial in determining who is at fault. In a hit and run, you'll have video evidence to help the police find the driver so you can file a claim.

While the price tag on the Vantrue N4 Pro dash cam looks lowest at Walmart, there is an important catch. The kit doesn't come with the 128 GB memory card that you're getting when you buy it from Best Buy. There also doesn't appear to be an option to have it professionally installed, which you can do at Best Buy for an added fee.

The same applies to the Amazon deal. There's no memory card included and professional installation doesn't seem to be an option. It's also not as deeply discounted.

• Get the Vantru N4 Pro with a 128 GB memory card for $269.99 at Best Buy
• Get the Vantru N4 Pro without a memory card for $265.99 at Walmart
• Get the Vantru N4 Pro without a memory card for $299.99 at Amazon

Get $400 off on the Shark PowerDetect 2-in-1 Vacuum and Mop

At Best Buy, the Shark PowerDetect 2-in-1 vacuum and mop is on sale for $599.99 and the "comparable value" is listed at $999.99. That means you're saving $400. At Walmart, you'll pay about the same price, but it is sold by a third party seller rather than Walmart. With the price being equal, your best bet is to go for Best Buy where you can buy it directly from the retailer.

You'll notice that Amazon is listed at about $200 below the price offered at either Best Buy or Walmart. But that model is slightly different. It's an AV2800ZE compared to the RV2820ZE at Best Buy.

From the best I can gather, the AV refers to models packaged and sold exclusively by Amazon while the RV refers to the retail model sold directly by Shark and by certain retailers (like Best Buy).

What differences exist between a 2800ZE and a 2820ZE are unclear, but the $200 price difference suggests there's something different. For what it's worth, the AV2820ZE at Amazon is selling for over $680 and only available from third party sellers.

• Get Shark PowerDetect 2-in-1 for $599.99 at Best Buy
• Get Shark PowerDetect 2-in-1 for $599 at Walmart (from a third party seller)
• Get Shark PowerDetect 2-in-1 for $399.99 at Amazon (but confirm the features you want are there as the model number is different)

Get 54% off the Lenovo IdeaPad Slim 3 Chromebook

If you're looking for a budget-friendly yet reliable laptop, there are a lot of great deals right now, especially at Best Buy. This Lenovo IdeaPad Slim 3 Chromebook, for example, is on sale for just $189 at Best Buy. That's over half off of the comparable value of $419.

That's by far the best price across all three retailers and it's the only option that isn't sold by a third party seller.

• Get the Lenovo IdeaPad Slim 3 for $189 at Best Buy
• Get the Lenovo IdeaPad Slim 3 for $237.97 at Walmart (from a third party seller)
• Get the Lenovo IdeaPad Slim 3 with 512 GB of external storage for $332.49 at Amazon (from a third party seller)

Save $70 on the Apple AirPods Pro 3

Right now, you can save $70 on a new pair of Apple AirPod Pro 3 headphones at Amazon, Walmart and Best Buy. All three retailers ship and sell the popular headphones directly so you aren't dealing with a third party seller no matter where you buy.

If you know you're going to grab these, add them to your cart wherever you prefer to shop — or wait until you browse other deals and just add them to your order after you decide which sale you're shopping.

• Get Apple AirPods Pro 3 for $179 at Amazon
• Get Apple AirPods Pro 3 for $179 at Walmart
• Get Apple AirPods Pro 3 for $179.99 at Best Buy

Save 50% on the Beats Studio Pro

The story for Beats Studio Pro is similar to the AirPods. They are 50% off at all three retailers. And you are buying directly from the retailer in all three cases.

The one caveat: if you prefer the matte white style (or you aren't picky about color), that one is available for an even deeper discount at Walmart right now. You can get a pair there for just $119.

• Get Beats Studio Pro for as low as $119 at Walmart
• Get Beats Studio Pro for $149.95 at Amazon
• Get Beats Studio Pro for $149.99 at Best Buy

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• 5 Amazon Prime Big Deal Days Mistakes That Could Cost You Money
• 10 Unique Ways To Save Money Shopping With Amazon
• Walmart+ vs Amazon Prime

Every team is measured by the scoreboard, but after the game, good coaches look beyond the numbers in their constant quest for improvement.

They study video to discern strengths and weaknesses in their team and the upcoming opponent. They identify opportunities, assess risks and make adjustments before the next game.

Retirement planning deserves the same approach.

Most people know how much they have saved for retirement. They may know their investment returns, their 401(k) balance or the value of their IRA. But those numbers alone don't answer the most important question: Are you actually prepared for the retirement you want?

A strong retirement plan should be evaluated from several different angles. A retirement scorecard can help identify where a plan is strong, where it may have vulnerabilities and where adjustments could make a meaningful difference.

Here are five areas worth keeping score on.

1. Secure income: How much of your retirement income can you count on?

One of the first questions retirees should ask is not how much money they have, but how much reliable income they will have.

Social Security may provide an important foundation. Pensions can provide another source of dependable income. Some retirees may also use annuities or other strategies designed to create guaranteed income.

The next step is to compare that dependable income with the expenses that must be paid regardless of what the financial markets are doing.

Consider:

• Essential living expenses
• Healthcare costs
• Mortgage or housing expenses
• Other recurring obligations

The objective isn't necessarily to have every dollar of expenses covered by guaranteed income. Rather, it's important to understand how much of your essential lifestyle depends on your investment portfolio's performance.

A retiree with $2 million invested and $100,000 of dependable annual income may have a very different retirement outlook than someone with the same $2 million portfolio but only $40,000 of dependable income. The account balances are identical; the retirement plans are not.

2. Retirement confidence: How well does your plan hold up when things change?

Retirement rarely unfolds exactly as expected. Markets rise and fall. Inflation changes. Tax laws evolve. Healthcare expenses can be unpredictable. And people may live longer than they anticipated.

That's why a retirement plan should be tested against more than one possible future.

One way to do that is through Monte Carlo analysis, which can test a retirement plan across thousands of potential market and economic environments.

A retirement plan can be tested against periods of strong markets, declining markets, sideways markets, different inflation rates and changing tax environments.

The purpose isn't to predict exactly what the future will look like. It's to determine how resilient the plan is when the future doesn't cooperate.

A plan that works only when investment returns are strong may look successful on paper but provide less confidence in the real world. A stronger plan is one that has enough flexibility to withstand adversity without requiring the retiree to completely change course.

3. Retirement taxes: How much of your money will you get to keep?

A retirement account balance isn't necessarily the same thing as retirement wealth.

Taxes matter. A retiree may have money in traditional IRAs, 401(k)s, Roth accounts, taxable investment accounts and other sources. Each account can have different tax consequences when money is withdrawn.

That means retirement planning shouldn't simply ask, "How much can I withdraw?" It should also ask, "Which account should the money come from, and when?"

For example, a retiree might consider whether to:

• Convert some traditional IRA assets to a Roth IRA
• Realize capital gains in a lower tax year
• Coordinate IRA withdrawals with Social Security
• Manage income to avoid unnecessarily higher tax brackets
• Consider the effect of additional income on Medicare premiums
• Determine which investments should be sold to fund retirement expenses

These decisions can look relatively small when viewed individually. Over a 20- or 30-year retirement, though, the cumulative tax impact can be significant. That's why a retirement scorecard shouldn't measure only investment performance; it should also measure how efficiently the plan converts wealth into after-tax retirement income.

4. Retirement risk: What could knock the plan off course?

Risk in retirement is about much more than whether the stock market goes down.

A comprehensive risk assessment should consider several factors, including:

• Expected investment return
• Retirement time horizon
• Target portfolio withdrawals
• Market volatility
• Inflation
• Longevity
• Healthcare costs
• Liquidity needs
• Personal comfort with investment risk

One retiree may be comfortable with a portfolio that another would find difficult to stick to during a market downturn. A theoretically optimal portfolio isn't necessarily a successful portfolio if the investor can't remain committed to it during a difficult market.

The goal isn't to eliminate risk. That's impossible. The goal is to understand the risks you're taking and determine whether they're appropriate for the retirement you're trying to create.

5. Estate efficiency: What happens to the money you don't spend?

Retirement planning doesn't end when you determine that you have enough money to live comfortably. There is another question: What happens to the money that remains?

For many retirees, leaving assets to children, grandchildren or charitable organizations is an important part of the overall plan. That means estate planning should be considered alongside retirement planning rather than treated as a separate exercise.

The type of account, beneficiary designations, potential taxes, fees and the way assets are transferred can all influence how much reaches the intended beneficiaries.

The goal is about more than accumulating wealth; it's also about determining how efficiently that wealth can accomplish what you want it to accomplish — during your lifetime and afterward.

Keep evaluating your scorecard throughout retirement

A scorecard isn't valuable because it produces a number, but because it starts a conversation. A retirement plan might have excellent investment performance but a weak tax strategy.

It might have substantial assets but insufficient guaranteed income.

It might have a strong probability of success but too little liquidity for the retiree's comfort. Or it might provide plenty of income today while creating unnecessary tax or estate planning problems later. That's why the numbers need to be viewed together.

The purpose of a retirement scorecard is to identify what needs attention now. Great coaches evaluate throughout the season. They recognize what is working, identify what isn't and make adjustments when circumstances change. Retirement is a long season and deserves the same discipline.

The goal isn't to achieve a perfect score and put the plan on a shelf; it's to understand where you stand today and identify what may need to change as your circumstances, markets and priorities evolve. A strong retirement plan is evaluated, adjusted and improved throughout the retirement journey.

Great coaches don't wait until the final game of the season to make adjustments; they keep evaluating the scoreboard along the way. Retirement is a long season and deserves the same discipline.

Dan Dunkin contributed to this article.

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

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

For many of us, retirement planning starts with an age. For some people, that may be 62 or 65. Others may work until 70 to maximize Social Security benefits. Whatever the reason, our planned retirement age is a goal. But what happens if your career ends earlier than expected?

It's a problem playing out in real time. While the August jobs report revealed a more resilient labor market and a steady unemployment rate (4.1%) overall, the information industry lost 23,000 jobs.

The ADP National Employment Report showed private payrolls rose by only 38,000 in August, less than the 46,000 added in July and below the 47,000 economists expected.

When you're in your 50s or 60s, an unexpected job loss combined with a prolonged job search can dramatically disrupt years of retirement planning. Losing income during those final high-earning years can put additional pressure on savings or force you to make significant financial decisions earlier than planned.

The smart move is to build flexibility into your retirement plan in case the worst happens. This can help prevent emotional decision-making — such as choosing to drain retirement accounts or claiming benefits earlier than expected — which can have long-term consequences.

1. Get your financial life in order — and don't forget healthcare

Understanding what your finances would look like if you suddenly lost your paycheck is the first step in preparing for the unexpected.

Start by reviewing fixed and discretionary expenses, available savings and any other sources of income to determine how long you could realistically maintain your lifestyle without working.

While many financial professionals suggest three to six months' worth of emergency savings set aside, returning to work may take longer than that because of the slower job market. Aiming to save more will keep you better protected, especially if you become ill or no longer able to work.

Knowing how much money you need each month can also help you identify expenses that can be cut before you begin withdrawing from long-term savings.

A sudden loss of employment may also mean losing health coverage. If that happens before you're eligible for Medicare, options such as COBRA may come with substantially higher premiums that could drain savings.

Factoring healthcare coverage into any scenario involving unexpected job loss can help buy you more time to consider your options and protect savings.

Having funds outside of retirement accounts can offer another layer of protection. This reduces the need to sell investments or begin taking retirement distributions to cover expenses.

This becomes especially important if sudden unemployment coincides with market volatility — when selling investments may lock in losses or reduce the amount invested for a potential recovery.

2. Stress-test your retirement plan now

Understanding what would happen to your retirement plan in the event of a sudden job loss is also part of the preparation. Stress-testing your plan by running it through different scenarios can help you understand how your finances would be impacted if your current situation changed.

For example, you could model what would happen if you stopped working now, retired several years earlier than your target age, or began withdrawing from savings prematurely.

If you lose your job unexpectedly, retirement doesn't have to be the next step. Before claiming benefits or making withdrawals, consider how that could impact your retirement.

Working through different scenarios can help determine whether relying on those sources of income now makes sense, or whether continuing to work would leave you better off in the long run.

3. Stay connected

In addition to financial preparation, keeping your professional skills and network up to date can give you more options if you find yourself looking for work. This includes maintaining required licenses or designations as well as staying connected with people in your industry.

Keeping up with changes in your field later in life can make it easier to pursue another position if you lose your job, rather than feeling forced into retirement.

For many of us, the age at which we hope to stop working is the first step in retirement planning. But that timeline is subject to change at any time.

Preparing for the possibility of a sudden job loss, building flexibility into your retirement plan and stress-testing it under different scenarios will help you understand how to move forward without minimizing benefits or sacrificing years' worth of savings.

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• Facing a Potential Job Loss? Here's How to Prepare
• Don't Let Health Care Costs Wreck Your Retirement: Here's How
• An Expert Guide to Calculating How Much Money You Really Need in Retirement
• I'm a Financial Adviser: This Is What You're Really Losing if You Cut Back on Your 401(k) Contributions

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

The iPhone 18 Pro is here, and it's a stellar upgrade. The new phone delivers 24 hours of battery life with regular daily use, so you're not tethered to your charger.

Do you love taking pictures? The variable aperture and pro controls allow you to capture more creative shots. Overall, the phone offers excellent battery and camera features, making it worth a closer look.

If you're looking to upgrade from your current model, you're in luck, as all the major carriers offer it for free. But "free" comes with strings attached, typically requiring an eligible plan and long-term commitment to receive the full promotional credits. However, is that the right play? I'll break down why getting a free phone from a major carrier isn't really free, and a cost-saving alternative.

Your phone is never free through major carriers

Major carriers like AT&T, T-Mobile and Verizon make it easy to transfer service or upgrade devices with little to no out-of-pocket expenses. The problem? You have to sign up for a more expensive plan to earn the incentive.

T-Mobile offers the iPhone 18 Pro for free with the Experience Beyond 2.0 plan. This plan is $100 for one line, $170 for two. If you're 55+, you qualify for T-Mobile's senior plans, lowering the costs to $85 for one line or $130 for two.

To be fair, this plan packs ample perks, such as a five-year price-lock guarantee, free ad-supported plans for Hulu and Netflix and unlimited premium data. But if you don't need many of those perks, you'll overpay.

Because the other aspect of earning a "free" phone is that you must keep service for 36 months. For a free iPhone 18 Pro from T-Mobile, your out-of-pocket costs for three years on the plan alone will be…

• $3,600 for a single-line subscriber
• $6,120 for two lines
• $3,060 for a 55+ plan for one line
• $4,680 for two 55+ plans

Sounds expensive? Because it is. Verizon offers a free iPhone 18 Pro with its Unlimited Plus Plan for $80 per month. Meanwhile, AT&T offers the best iPhone 18 Pro deal with the AT&T Value 2.0 plan for $50.

Now, let's compare another option.

Own the phone instead of a plan owning you

Another option is to purchase the iPhone 18 Pro outright. This is a pretty penny upfront, as the base model starts at $1,199. Yet, once you buy the phone, you can use whichever cell service you want, without locking into a multi-year commitment.

If you want a bare-bones cell phone plan with unlimited texting and calling and some high-speed data, you don't have to settle for more expensive plans. Instead, you can use a service like Mint Mobile, where plans start at $15 per month.

Striking a balance between perks and value

Most people don't need the most expensive plan cell phone providers offer, but you want a steady baseline of perks.

Here's a breakdown of the basic plan each carrier offers, its cost, and how much it would be to purchase the iPhone 18 Pro outright and use these plans for the same three years:

Therefore, buying your iPhone 18 Pro outright not only gives you more flexibility to choose a plan that fits your needs, but it could also save you hundreds of dollars over three years.

How trade-ins factor into the math

You'll likely be upgrading from an older phone. Trading in an older device lowers the upfront cost of purchasing an iPhone 18 Pro, as major carriers provide monthly credits to offset some or all of the costs.

Keep in mind, though, that carriers typically spread these credits over a set period, often 24 or 36 months. If you cancel service before this time, you forfeit any remaining credits and must pay off the device balance.

One smart alternative is to work directly with Apple regarding your trade-in. This approach gives you an immediate discount and lets you choose your carrier and plan.

Ultimately, if you haven't upgraded your phone in a while and want better battery life, the iPhone 18 Pro is a smart option. Instead of getting it for "free" through your carrier, you can save thousands of dollars by purchasing it, then choosing a carrier and plan that fits your needs.

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You just got a $1 million inheritance in the Great Wealth Transfer and don't know what to do? You're not alone. Millions of people are poised to receive a piece of the more than $124 trillion in generational wealth expected to be transferred over the next decades.

While an inheritance of that size can be life-changing, it can also cause undue strife. With a windfall come taxes, estate administration fees and investment decisions.

"Most people, when they receive an inheritance, want to spend it," said Tim McGrath, a managing partner at Riverpoint Wealth Management. "If they don't make the right decisions, it could hurt them over the long haul rather than help them."

Let's say you buy a big house that you can't afford or make risky investments — you could end up in debt or homeless because of the inheritance.

The good news is there are easy ways to protect your newfound wealth. From where to initially park your cash to how to grow it, here's how.

First, figure out what the inheritance means to you

Receiving $1 million can be a big deal. It could mean you're debt-free, your kids' education is paid for, or your retirement is in the bag, or it mightmean something completely different. Either way, McGrath says the first thing you should do is determine what it means for your goals and finances.

"For most people, $1 million is life-changing," says McGrath.

While you consider how to use your newfound wealth, don't keep the money under a mattress. Put it in a high-yield savings account or, if you already have one, an investment account.

"In today's environment, you can still find money markets or high-yield savings accounts paying 3% to 4%, so parking it there to make a little interest while you determine how to proceed is a simple way to get started," says Kassi Hyde, a financial adviser with Apollon Wealth Management. "If you know you don't need or want to touch the money and want it to grow for future needs, then definitely go ahead and invest. Just make sure to consider your time horizon when determining how risky you want to be."

If you don't have a financial adviser, now is the time to find one. Our How to Find a Financial Adviser guide will help you select one that matches your personality and budget.

Pay down high-interest debt

Even if you know how you want to use the inheritance, financial advisers say to pay off any high-interest debt first. That could include credit cards, personal loans and retail cards that charge you double-digit interest. The idea is to get yourself into a cash-flow positive position first, says McGrath.

Put the money to work while you wait to use it

Maybe you plan to buy a new house in a couple of years, pay for your kids' college in the future or save it for retirement. Whatever the goal, it's important to put your inheritance to work while you wait. That's where an investment plan comes into play. The type of inheritance dictates how you can invest it.

Develop a tax strategy

You need to be mindful of the tax portion of your inheritance, but how much is taxed depends on the asset. The lifetime federal estate tax exemption — $15 million for individuals and $30 million for couples in 2026 — pretty much guarantees most recipients won't owe federal estate taxes on their inheritance.

Depending on where the person who left you an inheritance lived, you might face state estate taxes. State tax exemptions are typically lower than the federal exemption. For example, Massachusetts exempts up to $2 million.

If the asset generates capital gains after it's passed on, you'll owe taxes. "If you inherit an investment worth $500 and the value grows to $600 and you sell it, you have $100 in gains you will have to pay taxes on," said Hyde. The caveat to that capital gains rule is the "step-up in basis," which resets an asset's original value to its market value on the date of the original owner's death.

You'll also owe taxes (as ordinary income, potentially bumping you up to a higher tax bracket) if you inherited a traditional IRA or 401(k) and you aren't a spouse.

You might wish to consult a professional tax expert if your inheritance is complex or you don't understand your options.

Stick to the plan

A $1 million inheritance offers rare financial freedom, but only if you manage it wisely. By tackling debt first, planning for taxes and putting the rest to work, you can turn a one-time inheritance into generational wealth. Once you create a plan for that money, stick to it, and don't be afraid to ask an expert for guidance along the way.

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• Think You Need $1 Million to Retire? 6 Reasons a 'Modest' Nest Egg Is Plenty

Everyone's heard a horror story.

The adult children who no longer speak to each other after a blow-up over who would get Mom's engagement ring when she died. The constant arguments between siblings over the family vacation house they jointly inherited. The simmering resentment between adult kids after a parent's will revealed an uneven split of assets among them — tension that eventually boiled over, causing the siblings to sever their relationship and cut off their children, once-close cousins, from seeing each other as well.

These are heartbreaking scenarios that many parents worry about and try to avoid in their estate planning. And many adult children share their concern: One-third of adult kids expect an inheritance to create conflict with their siblings, according to a national survey commissioned by Kiplinger and conducted by the research firm Morning Consult.

Studies, unfortunately, show their concern is justified. Research from Cornell University indicates that among the 27% of Americans who are estranged from a family member, disputes over an inheritance are a leading trigger and frequently involve siblings.

Similarly, an Ameriprise study found that when adult siblings report money conflicts, nearly 70% of those arguments involve their parents, and inheritance was the top cause of those disputes.

Inheritance conflicts are rarely only or even primarily about money, experts say. "Sibling disputes over estates and wills almost always surface in the context of older, unresolved grievances, typically about parental favoritism and unequal treatment, so money becomes a scorecard for perceived favoritism or slights over a lifetime," says Karl Pillemer, a professor of human development at Cornell University and author of Fault Lines: Fractured Families and How to Mend Them.

Adding fuel to the fire: The transfer of a parent’s assets occurs at a time of grief, when emotions are already running high. And in many families, there has been no prior conversation about how Mom and Dad intend to pass on their wealth, so adult children are forced to draw their own conclusions — and they often fill in the blanks with negative implications, experts say.

"Grief mixed with urgency and ambiguity is a tough combination," says Elisa Shevlin Rizzo, head of family advisory at J.P. Morgan Private Bank.

The amounts at stake rarely matter. "Disputes can happen when the only assets involved are Mom’s china and jewelry, and they can happen when there’s millions of dollars at stake," says Monique Lavender Greenberg, managing partner of the law firm Lavender Greenberg in Miami and a board director of the National Association of Estate Planners & Councils.

"No one wants their legacy to be that their kids end up hating each other. We want our families to continue to love each other, but that takes thought and planning."

Want to ensure your wealth passes as you intend and your children are still speaking to each other after you’re gone? Experts suggest these steps.

Figure out what's truly fair.

The default for most parents is to split the assets they’re leaving to the kids equally. But many adult children don’t feel that’s a fair division.

In the Kiplinger-Morning Consult survey, for instance, 71% of parents said they intend to leave the same amount to each of their kids, but just 50% of adult children preferred that approach. That 21-point gap was filled by siblings who believe Mom and Dad should base inheritance decisions on each child’s financial situation and need, or on factors such as how much financial help parents have given each child in the past and how much the kids assisted their mother and father during their lifetimes.

"Equal means the same for everyone, while fair means each person gets what they deserve or need," says Pillemer. "Sometimes those two norms pull in opposite directions inside families."

Both perspectives are valid. "An even split is completely understandable if you’re a parent who wants to avoid inserting a new conflict into the sibling dynamic and to communicate that you love all your children equally," says Matthew Willner, a therapist who specializes in family conflict and estrangement, including adult sibling conflicts and inheritance disputes.

"But if one child has been struggling financially for years, an even split can feel emotionally like their needs don’t matter or aren’t recognized. And if you’re, say, a daughter who has been a caregiver for Mom or Dad for several years and there’s an even split, it can read to you as if everything you did counted for nothing."

On the other hand, an unequal division, especially if it’s unexplained, can be even more hurtful and trigger long-lasting rivalries and tensions between siblings.

"If I’m the child who received less and I already feel like my mom and dad loved my brother more, that’s going to be a real hard nut to swallow, even if they helped me more financially when they were alive," says Rizzo. "Even if I’m a hedge-fund manager and my brother works at a nonprofit making $40,000 a year, getting less is hard emotionally — even if I know intellectually it makes sense."

There is typically no right or wrong decision on splitting assets, experts say, and parents are entitled to pass down their wealth however they see fit. What’s imperative, though, is that you’re thoughtful about your process and choices, and then, crucially, that you inform your children of your decision and explain your reasoning.

It’s the element of surprise that can do the greatest damage, experts say.

"The very thing that would prevent sibling conflicts or at least lower their temperature — having an honest conversation about how parents have decided to pass on wealth and why — is the step many families skip because it can be uncomfortable and bring up old wounds no one wants to deal with," says Willner.

He suggests talking to all of the children together, if possible, as that lessens the possibility of one sibling accusing another of manipulating or pressuring their parents, especially if you’ve decided on an uneven split. It also gives the kids a chance to voice their emotions and concerns; feeling heard can make it easier to accept the parents’ decision.

"If the children know what’s going to happen and why, they typically suck it up and honor your wishes," says Greenberg. "And if the kids are going to be mad, they’ll be mad at Mom and Dad, not each other."

You can also pursue ways to reward an adult child who has helped out a lot, provide more to one who needs extra financial help, or balance the scales on past financial gifts to another that avoid a hurtful uneven division of assets in your will. You might, for example, make a caregiver child the beneficiary of a small life insurance policy or give more money during your lifetime to the child working at the nonprofit than to the one who is a hedge-fund manager.

The important thing is that none of your plans live in the dark. Says Sharon Olson, managing principal of Olson Wealth Group, "We spend enormous amounts of time preparing the money for the children. We need to spend just as much time preparing the children for the money."

Read more: Why Leaving an Equal Inheritance to Your Children Could Backfire

Take particular care with tricky assets.

Ironically, the part of your estate that’s least likely to trigger a blow-up among your kids may be your most valuable holdings, in dollar terms: Cash savings and liquid investments, such as stocks, bonds and funds. Far more fraught are assets that can’t be easily or neatly divided, such as a parent’s home, a vacation property or a family business.

Take the family lake house, for example — an asset with both monetary and sentimental value, perhaps tied to happy memories of summers together by the water. Maybe the siblings want to keep it in the family and share it, but one cannot afford the upkeep. Or maybe one sibling prefers to sell, but the other siblings don’t have the cash to buy them out.

"Parents often leave property to their children and say, ‘They’ll figure it out when I’m gone,’" says Rizzo. "That’s one of the most damaging attitudes out there. If you want to set your kids up for future conflict, let them figure it out when you’re gone."

A family business can be especially problematic, particularly if one or more siblings had jobs at the company and others didn’t. "The daughter who worked there for 25 years may say, ‘I helped Dad build this business and I deserve it.’ Her brother may say, ‘I understand that, but he was my father too, and I also deserve a share.’ Both can be right," says Olson.

To head off trouble, she suggests parents identify potentially thorny assets and establish valuation and buyout provisions as part of estate planning. If multiple children will own a vacation home, determine how expenses, property use and eventual sale will work. "Don’t leave the children a complicated asset and unanswered questions," Olson says.

To the extent that you can, solve potential problems in advance. You might, for example, put the house in Nantucket in a trust with enough financial assets to cover the expenses, if the estate can afford it, Rizzo suggests.

Or, if an estate lacks cash, buying life insurance might be helpful. That way the child who wants the beach house gets it, or the family business passes to the kid who works there, and the other child is the beneficiary of the insurance policy and receives an asset of comparable value, says Carly Doshi, head of family advisory planning and trust services at Flagstar Bank and chair of the New York branch of the Society of Trust and Estate Practitioners.

Be careful to communicate your intentions, including for any accounts you own jointly with one of your children, to all of your offspring, experts say.

For example, you may have a joint checking account with right of survivorship with a son or daughter who helps you with bill-paying, and that will pass directly to them upon your death. If that’s what you want — say, to compensate that child for their help — let all of the kids know the plan. Or, if not, let them know you intend for that money to be split among them after you’re gone, document your wishes in writing in a letter of instruction, and consider retitling the account.

"One of the greatest gifts a parent can leave their children is clarity," says Doshi. "A thoughtful estate plan is really about removing as many reasons for conflict as possible."

Read more: What Happens to Your Savings Account When You Die?

Sweat the small stuff.

For one family, it was the red plate with hearts on it that said "You’re special," which Mom used to serve birthday cake for each child growing up. For another, it was a 25-cent Christmas ornament.

In yet another case, it was a piece of art, promised by the father to one kid and by the mother to another. Then there was the daughter-in-law found racing through the parents’ home after the funeral, switching masking-tape labels attached to various cherished items indicating which sibling was supposed to get what.

Estate and wealth-management experts are filled with stories of personal possessions, sometimes valuable but often not, that triggered big fights among siblings after a parent’s death, sometimes resulting in a permanent rift.

"Objects are often more contentious than money — not just because it’s hard to divide a holiday ornament or a plate, but because those kinds of items hold more memories and meaning for people," says Sara Croymans, an educator with the University of Minnesota Extension who helps facilitate its Who Gets Grandma’s Yellow Pie Plate? program, which teaches research-based practical strategies for passing on personal possessions.

Croymans suggests parents take a poll of their adult children to find out what items they’re interested in and why. Don’t just assume, for instance, that a son should get the tools and a daughter her mom’s jewelry, she says. Parents should also share their views and plans for dividing possessions and the stories behind items that are particularly meaningful to them. That, in turn, might affect the kids’ preferences.

If more than one child wants the same item or items, try to land on a system together that feels fair for deciding who gets them, perhaps coming up with similar items that can be considered in tandem. Croymans recalls three sisters who had shared a baptismal gown, and each one wanted it for her own kids. The siblings averted an argument by identifying a confirmation gown and their mother’s wedding dress as things of similar emotional value, and each sister ended up with a garment that was meaningful to her.

"Research has found that if people buy into the process and believe it’s fair, they’ll support the outcome, even if they didn’t get the specific thing they wanted," says Croymans.

Experts recommend documenting your plan for personal possessions, naming names and specific objects, in a letter of instruction you keep with other estate-plan documents. Although the document is not legally binding, experts say it carries the weight of moral authority, and most siblings honor their parents’ plans.

Read more: The Great Junk Transfer: Why Heirs Want Meaning, Not More Stuff

Avoid the oldest-child syndrome.

Sometimes tensions build and boil over among siblings not over the inheritance itself but rather who is appointed to oversee the disposition of those assets. To avoid fights, parents often default to appointing their oldest child as executor or trustee or naming some or all of the children as co-managers — well-intentioned moves that experts say often backfire.

"The person who is most suited for the role is the best choice, and that should be the person who is organized, financially capable, communicative and, crucially, trusted by the other beneficiaries," says Doshi.

Whoever you pick, to minimize resentment or hurt feelings, be sure to communicate your decision to all of your children as well as your reasons — say, if the appointee has legal or financial skills or is recognized within the family as the peacemaker.

As for the team approach to executorship, experts are not fans. "Requiring all of your children to reach constant consensus, especially when everyone is grieving, can slow things down or even create conflict where there wasn’t any," says Doshi.

And if the kids don’t always get along? "If the siblings have never made decisions well together, requiring a consensus after a parent dies is planning for deadlock," Rizzo says.

The critical question parents don’t ask enough, Olson says, particularly when it comes to trusts: What will giving this child authority do to the sibling relationship? "Sometimes the most loving thing a parent can do is not put one child in the position of policing another," she says.

Alternatives to naming one or more of your children as executor or trustee include appointing another family member or close friend who is capable and willing to take on the responsibility, or hiring a professional fiduciary through, say, a bank or other financial institution. Or you can turn to an estate-planning attorney who offers these services (find one via the directory of The American College of Trust and Estate Counsel).

Read more: 6 Steps to Choosing an Executor

Get help before things blow up.

If you anticipate conflict between your children over their inheritance, or recognize it’s a possibility, you can also turn to professionals to mediate potentially thorny issues or just help get all the kids on the same page. Siblings can also seek outside help after a parent’s death, if issues around their bequests start to get contentious.

"Having a neutral third party in the room guiding the conversation can help mitigate some long-standing family feelings and tensions, and people tend to be more respectful and reasonable," says Joseph Kellogg, head of wealth planning for WE Family Offices in Miami.

Experts suggest parents consider building a procedure for mediation of disputes into estate-planning documents. (An estate-planning attorney or family wealth manager may be able to fill this role, or you can find a professional mediator in your locale using a tool such as Mediate.com’s practitioner directory.)

"That way everyone knows there’s a way out of disputes that attempts to be fair and objective," says Kellogg. "And it can motivate kids to go the extra mile in trying to work it out themselves, knowing that if they don’t, someone else will step in and do it for them."

Research from Karl Pillemer at Cornell, including interviews with about 300 people who had experienced family rifts, backs up the importance of seeking independent mediation if siblings are locked in a fight over their parents’ estate.

"When I asked family members who had a rift over inheritance what would have helped, they often said some version of, ‘I’d like a time machine, so we could go back and get outside help.’"

The good news, says Pillemer: Rifts over wills, inheritance and money are somewhat more likely to be repaired than ones that stem from systemic family problems, such as harsh parenting or extremely difficult childhoods — unless siblings reach a tipping point in which one says to the other, "I never want to see or speak to you again."

"When that occurs, it develops its own dynamic and is surprisingly hard to repair," says Pillemer. "Almost every estranged family I talked to wished they hadn’t drawn that line in the sand.

So do almost anything you can not to reach that cutoff point. Keep talking, be more understanding, seek mediation, get help from a therapist, apologize — even if you feel you shouldn’t have to — and, most especially, ask yourself, Is this really worth it?"

The price of destroying a family over money, he notes, is almost always too high, and it’s the next generation that pays. "If two siblings cut off contact over an inheritance, they don’t lose only each other; their children lose their cousins. Your kids will inherit not only your assets one day but also the estrangements that came with them."

That’s the opposite of the legacy most parents hope to leave. The way to prevent it, Pillemer and other experts say, is to talk with your children, communicate your intentions and the reasoning behind them clearly and early, and be open to your kids’ views and feelings in return.

He says, "That’s the single most important thing parents can do."

Read more: Kiplinger Conversations: How to Talk Inheritance With Your Kids

Special considerations for blended families.

Families in which one or both spouses have children from previous marriages are the most likely to experience disputes around estate plans, according to research from the Society of Trust and Estate Practitioners (STEP). Unequal treatment of siblings and conflicts between children and stepchildren were among the most-common points of friction, second only to disputes between children and a surviving parent or stepparent.

"The core problem is that remarriage creates competing loyalties and competing claims, which can be difficult to resolve in a way that feels fair to everyone," says Karl Pillemer.

If you’re part of a blended family and want to keep the peace between your biological children and your stepkids after you’re gone, experts recommend these steps.

Formalize your wishes. Recent research from Yale shows parents often favor stepkids as beneficiaries over any relatives other than spouses and their own children. But state intestacy laws, which dictate how your assets will pass to others if you die without a will, typically don’t make provisions for stepchildren.

So if you want yours to inherit anything, you’ll need to make that intent clear and legally binding with bequests via a will or trust or by including them as beneficiaries on financial accounts that pass outside of a will.

Accommodate age differences. There are often big age gaps among children in blended families, notes Carly Doshi, head of family advisory planning and trust services at Flagstar Bank. So their financial needs and when they need to tap assets may be different — one child might be gearing up to, say, buy a first home while another might be nearing retirement.

The solution? Doshi says this is a situation in which trusts come in handy, giving you the ability to spell out when and under what circumstances different heirs get distributions from your estate.

Consider a neutral party for key roles. Parents often pick the oldest child as executor or trustee. But in a blended family, putting a child from one branch of the family in charge of assets for someone from a different branch can spark tensions.

An alternative: Appoint a neutral party, such as an estate attorney or professional fiduciary.

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

More Trillion Dollar Talk

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If you are considering purchasing a home warranty, you might want to wait until after you've read this. Today's story offers information that can help you avoid getting ripped off.

First, let's clear up a common source of confusion: A home warranty is a service contract, not an insurance policy like your homeowners insurance. It is supposed to help pay to repair or replace major home systems and appliances that break down from normal wear and tear.

That's what the ads of home warranty firms say, and there are 114 such firms in the U.S. The largest is American Home Shield. Check out this NBC News video to get an idea of what many consumers are dealing with.

One of the ways companies that offer these contracts make oodles of money is by promising to be there for you, collecting your monthly coverage payments and then coming up with one reason after another to deny claims when you need to actually use the services they've sold you.

They operate very much like after-market extended auto warranties, an industry whose motto should be, "Oh, so you drove your car after paying for our extended warranty? Who said you could do that?"

You have to give AHS credit for creative advertising — the fortune-teller ads with Saturday Night Live alum Rachel Dratch are fun. Those ads clearly state, "If AHS can't fix your covered item, they'll replace it, no matter its age." You can watch one of the ads here, which is featured on AHS' YouTube channel.

Vonda and Rick's experience: Delay after delay plus incompetence

In our office, we didn't need to look at a calendar to know this summer — the hottest ever recorded in the U.S. — was over. Something, or, to be more precise, the lack of something, was the clue: Not as many complaints from frustrated people calling about their home warranty companies refusing to repair or replace their AC units.

The home warranty is the very definition of a bait-and-switch, with advertising campaigns making the promise that, with various wording and for a monthly fee, the company is your safety net should something happen to a major appliance or your heating and air conditioning system.

A safety net is what longtime Southern California readers Vonda and Rick Perales expected from American Home Shield. "We had been subscribers for over 20 years," Vonda said. "As the company promptly repaired little things, like a dishwasher, we felt certain they would quickly remedy our AC system that had failed. Mr. Beaver, we were so disappointed."

Their discovery of just how much AHS cared about their customers was set out in this summary of a chronology that is the very definition of gross incompetence — at the very least:

• June 18. AC stopped working. Rick contacts AHS.
• June 22. Contractor arrives but says he can't access the unit because it is on a two-story roof with Spanish tile. Later that day, a different contractor arrives and offers the same reason for not accessing the unit on the roof.
• June 23. A third contractor says the AC is too old to fix and makes a request to AHS to replace the entire unit. Only a replacement compressor and fan motor are authorized.

Just a reminder that the ads we mentioned earlier say, "If AHS can't fix your covered item, they'll replace it, no matter its age."

Rick said, "Because our unit was 33 years old, the replacement parts drew too much current, leading to burned wires and the AC failing repeatedly — burning wires is a true fire risk.

"AHS sent out the same contractors, who again could not access the roof, then told us to find our own contractor. They refused to accept responsibility for the delays."

Fed up with the largest home warranty company in the U.S. refusing to honor its contractual commitments — and the statement in its ads — the couple contacted me.

I emailed an AHS media contact, asking her to help my readers. There was no response to my first email, so I sent a second, and this one prompted action, which eventually resulted in a $4,600 buyout of the Peraleses' contract.

Collateral damage

Rick reported that as of July 29, he had made 52 calls to AHS, beginning in June, trying to get contractors to repair or replace their AC. AHS required them to pay an $800 bill for Freon, as it was not covered in their policy. That would have been reasonable had AHS actually repaired their AC. Instead, it was money down the drain.

Vonda wrote to me, "We had to purchase an AC window unit at a cost of $599 and have spent $1,205 on hotel rooms due to the excessive heat. We have paid for this policy for the last 20-plus years. I do not know where we would have wound up without your help. Thank you, Mr. Beaver."

My advice

If you are seriously considering signing up for a home warranty, search the Better Business Bureau (BBB) website for reviews and complaints.

I am not only pointing out AHS, which has a BBB rating of 1.28 out of 5 stars (based on nearly 6,000 customer reviews), but the complaints about many of these companies should make you run the other way!

I have looked for a home warranty company to recommend, but I have not found one.

What can you do instead of buying a home warranty? (Again, I'm not talking about homeowners insurance — that is legit). Instead of a home warranty, consider opening a home maintenance savings account so you can budget for the repairs that every home will require at some point.

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.

The Nasdaq Composite notched a new all-time high during a broad-based rally on Monday, as markets focused on upside for the artificial intelligence (AI) revolution. Amid another uptick for yields across the Treasury spectrum, investors, traders and speculators are placing more weight on the potential for AI to increase efficiencies over the long term, even as it drives up costs in the short term.

The 2-year Treasury yield ticked down 0.4 basis points to 4.821%, while the 10-year Treasury yield (3.2 bps, 5.309%) and the 30-year Treasury yield (3.4 bps, 5.664%) reached new 52-week highs again, as a global bond market sell-off continues.

Still, at the closing bell, the tech-heavy Nasdaq Composite was up 1.1% to 27,477, a new all-time closing high. The broad-based S&P 500 had added 0.7% at 7,773, and the blue-chip Dow Jones Industrial Average was up 0.2% to 51,267.

"There is no doubt that the U.S. remains an oasis and is the engine behind global GDP growth," Louis Navellier of Navellier & Associates writes. As Navellier explains, "FactSet is estimating that the S&P 500’s third-quarter earnings are forecast to rise 29.5%."

We are indeed in historic territory, as analysts at the Well Fargo Investment Institute note. "Consensus for 2027 capex for the eight-largest cloud computing companies is now approximately $1.3 trillion," they write. "This would represent approximately 3.7% of our nominal gross domestic product forecast for next year, putting this investment cycle on par with some of the largest in U.S. history."

Comparable cycles include the railroads from 1879 to 1890, which accounted for more than 4% of GDP, electric power in 1929, oil and gas in 1980 and the dot-com boom in 2000.

Services surveys say the economy is still expanding

The Institute for Supply Management (ISM) Services Purchasing Managers Index (PMI) printed at 54.9% in September, down from a reading of 55.4% in August and below a consensus forecast of 55.1%.

But, as William Blair economist Richard de Chazal says, it's the 27th consecutive month the index has been above the 50% expansion-contraction line. And, in the aftermath of a cooler-than-expected September jobs report, the survey confirms that "services sector employment, which accounts for the bulk of economic activity, remains on firm footing."

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As Chazal notes, the employment index returned to expansion for the first time in three months. Still, although crude oil traffic through the Strait of Hormuz is recovering, fuel shipments are still well below prewar levels, and diesel, gasoline and petroleum products helped push the prices index to its highest level since July 2022.

"The bigger pressure remains on costs," Chazal writes. "For the Fed, the report suggests inflation remains the main concern. Friday's jobs data lowered the odds of a hike at the October meeting, but with demand holding firm and input costs still climbing, another hike remains likely."

INTC hit by Elon's TerraFab strategy

Nvidia (NVDA, +2.1%) hit another new all-time high and was among the top two Dow Jones stock on Monday, helped by optimism about the AI trade, as well as the impact of announcing the biggest stock buyback in market history last week.

But fellow semiconductor stock Intel (INTC, -2.6%) was down after Elon Musk confirmed that Taiwan Semiconductor Manufacturing (TSM, +2.8%) is talking with his TeraFab chipmaking project about its facilities in Texas.

"Just discussions, but something may come of it," the CEO of SpaceX (SPCX, +7.6%) and Tesla (TSLA, +2.2% responded on X to reports of the TeraFab-TSMC talks.

Intel has an existing deal with TeraFab. Musk clarified in a follow-up post that TSMC could work with rather than replace Intel at his chipmaking plant.

Intel also has a partnership with Alphabet (GOOGL, +0.9%) to support Google's AI cloud infrastructure, and the chipmaker also received $5 billion from Nvidia as part of a project to co-develop custom chips.

CBRS looks a little better today

Cerebras Systems (CBRS, +9.1%) has had a tough go of it since the tech stock completed its initial public offering (IPO) in May, generating a loss of more than 4% vs a gain of more than 10% for the S&P 500.

But the AI infrastructure firm also got a boost from a post on X. "Cerebras is a close partner," Open AI CEO Sam Altman said late Friday, "and we have a deep engagement pushing on the frontiers of speed."

OpenAI is Cerebras' biggest customer by revenue backlog. In January, the companies signed a $10 billion deal to provide ChatGPT with 750 megawatts of computing power through 2028.

At the same time, research firm SemiAnalysis reported that OpenAI is using Nvidia's hardware rather than Cerebras's to support "Ultrafast" mode for its latest model.

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Medicare Part B enrollees are set to receive a one-time $90 rebate delivered automatically over the next few weeks, President Trump announced on October 2. Created in 2008 as a flexible budget tool for provider payment adjustments, the Medicare Improvement Fund (MIF) is now being tapped by the federal government to issue direct cash rebates to Medicare beneficiaries.

In 2027, Medicare Part B premiums are estimated to rise by $6.60 per month to $209.50, according to the 2026 Medicare Trustees Report. If the premium estimates hold, the $90 rebate would cover the $79.20 increase, with $10.80 to spare. A couple can receive a total of $180 if both spouses independently meet the eligibility requirements.

In September, President Trump announced $500 rebates for certain Affordable Care Act (ACA) enrollees in 30 states who purchased coverage through the federal marketplace, HealthCare.gov, and did not receive premium assistance.

Here is what you need to know about Medicare Part B premium rebates: Who qualifies, when to expect your payment and where the money came from.

Who is eligible for the Medicare Part B premium rebate?

Are you one of the 20.8 million eligible beneficiaries who will receive the $90 Medicare Improvement Fund Premium Rebate? Generally, to be eligible, you must live in the United States, not receive any premium assistance from Medicaid, not pay the income-related monthly adjustment amount (IRMAA), and not be enrolled in a Medicare Advantage plan.

If you do qualify, payments are scheduled to arrive this October. Are you registered for direct deposit? If so, your funds should arrive on Thursday, October 8.

Here are other factors that could impact your eligibility:

• Who can get it. To qualify for the $90 rebate, you must be:
  • Enrolled in original Medicare Part B
  • Pay standard Medicare Part B premiums without third-party or high-income adjustments.
  • Not in premium arrears or undergoing a coverage termination process for non-payment.
• Who can't get it. You are not eligible for the premium rebate if:
  • You are enrolled in a Medicare Advantage (Part C) plan
  • You pay the IRMAA
  • Your Part B premiums are fully paid or subsidized by state Medicaid programs (such as the Qualified Medicare Beneficiary (QMB) or Specified Low-Income Medicare Beneficiary (SLMB) beneficiaries), as you did not incur out-of-pocket Part B premium expenses.
  • You are enrolled exclusively in Medicare Part A (Hospital Insurance) without Part B coverage.
  • You have lapsed Part B coverage or active premium delinquencies.

Where did the funds come from?

The Medicare Improvement Fund (MIF) was established in 2008 via the Medicare Improvements for Patients and Providers Act (MIPPA). Before now, the federal government had never spent MIF funds directly on program operations.

For nearly 18 years, Congress used the MIF primarily as a budgetary mechanism. Lawmakers would inflate or reduce the fund's paper balance to help balance out the projected budget costs of unrelated health legislation.

The amount of funding available has changed 28 times since the fund was established. Lawmakers have increased the amount of funding available to the MIF 11 times and decreased it 17 times, according to a Congressional Budget Office (CBO) analysis published in April 2023.

Sit tight and your money should be along soon

The best part of this direct rebate program is that eligible beneficiaries do not need to fill out any forms, submit claims, or register online. Payments will be processed automatically by the Social Security Administration using your existing direct deposit details or mailed address.

Keep an eye out for scammers posing as CMS or SSA officials — Medicare and Social Security will never contact you directly asking for bank info to "claim" your rebate. If you don't receive your rebate in the expected time frame, contact Medicare directly at 1-800-MEDICARE (1-800-633-4227 or TTY 1-877-486-2048).

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Every market cycle produces a handful of IPOs that seem impossible to ignore. The company dominates headlines, investors rush to gain access, and financial media debate whether the stock could become the next great growth story.

But before joining the excitement, investors should ask a more important question: Is the opportunity still attractive at today's price?

Why IPOs are different now

A generation ago, an IPO often marked the beginning of a company's growth story as a public company, following a relatively brief period as a private startup. Today, it more often marks the end of a long private‑market journey.

Many of the most successful businesses stay private for years, raising multiple rounds of capital that can amount to billions of dollars in funding and building scale before they ever list their shares.

That matters because a substantial share of value creation can happen before the IPO. By the time shares begin trading publicly, the company may already be mature and profitable.

Investors buying at the offering price are often not purchasing a ground‑floor opportunity; they are buying after much of the early growth has already been priced in. That's why investors should be careful about assuming that "initial" equals "early."

The valuation problem

When a company is widely discussed and covered positively by the media, demand can quickly overtake discipline. That can push the initial valuation quite high.

Think of it this way: Strong fundamentals do not automatically create strong investment outcomes.

For example, consider two investors who are looking at the same company. One buys during a hot IPO when enthusiasm is high, while the other waits, watches the stock trade for a period of time and buys only after the price resets to something closer to reality.

Even if they own the same company, their outcomes may be very different. Entry valuation can often determine the investor outcome as much as business fundamentals.

Are IPOs a liquidity event?

When a company goes public, the founders, early employees and private investors may already have captured years of growth. The IPO helps those stakeholders realize value, but for public-market investors, that can change the timeline. They often enter after years of private ownership, at a stage when the business is a well-known entity and the valuation can incorporate many years of extensive forward growth assumptions.

That shift means the investor's advantage is often smaller than many assume. If the company is strong, its future may still be bright. But the IPO valuation may already reflect a lot of that optimism.

You may already own it

Another reason to reconsider investing in an IPO is that many large IPOs eventually become part of broad market indexes or are quickly held by actively managed funds.

To put it another way, if you own diversified stock funds, you may gain exposure to a newly public company without ever placing an IPO order.

A series of mega-listings has also prompted several major indexes to adjust their methodology to allow for incorporation sooner than in the past.

Before buying an IPO directly, you should ask whether your existing portfolio already provides exposure through a total market fund, large-cap growth fund, sector fund or another diversified strategy. If the answer is yes, the case for adding a concentrated position weakens.

If the new company is in an industry you already are heavily invested in, you may be doubling down on the same risk without realizing it. Diversification does not eliminate risk, but it can keep a single headline-grabbing stock from dominating your outcome.

A simple IPO checklist

Before reaching out to your adviser to participate in an IPO, consider five questions:

1. Has the company already gone through most of its high-growth phase in private markets?

2. Does the offering price leave room for upside, or does it assume perfection?

3. Would I still want to own this stock if the media attention disappeared?

4. Do I already own similar exposure through diversified funds?

5. If I buy, can I size the position modestly enough that a bad outcome will not derail my plan?

If you're doubting the answers to these questions, it may be worthwhile to show patience.

A better time to decide on an IPO is often before the hype begins, when the price, the business and the role it may play in your portfolio can be evaluated objectively.

A strategy for disciplined investors

For many individuals, a smart way to approach IPOs is to wait, watch and focus on process. Let the stock trade, let the business prove itself as a public company and let the valuation settle.

Sometimes that means missing the first wave of excitement. However, that is often a small price to pay for avoiding a poorly timed purchase.

In some cases, investors may have an opportunity to buy the same company later at a similar or even better valuation, with more information and less emotion, although future valuations are uncertain.

If you do want exposure to innovation, a diversified portfolio may be a better option. Professionally managed strategies can provide exposure to companies as they enter the public markets, often without the need to chase a day-one price.

Where the value is being created

Another important shift for investors to consider revolves around a growing share of value creation that occurs in private markets rather than public markets.

Decades ago, many companies went public relatively early in their development, allowing public-market investors to participate in years of rapid growth. Today, abundant private capital from venture capital firms, private equity sponsors, sovereign wealth funds and other institutional investors enables companies to remain private much longer.

As a result, some of the most dramatic growth in revenue, users and enterprise value may occur before a company ever reaches the public markets.

For qualified investors seeking exposure to earlier-stage innovation and growth, participating through professionally managed private-market strategies may represent a more direct way to access this part of the corporate life cycle, though private investments come with their own risks, higher investment minimums, reduced liquidity and longer holding periods.

The bottom line

IPOs can be compelling, especially when they may involve well-known companies poised to disrupt markets in a positive way. But investors should remember that an exciting story is not the same thing as a successful investment.

A disciplined IPO strategy is about recognizing where value is created, who captured it first and whether the public offering still offers a reasonable purchase price.

For most investors, the recommendation is for patience and diversification. Introducing private markets exposure may also be a way to gain access to a portion of where the value creation has shifted.

The next time a company with a great deal of hype goes public, work with your adviser to review the price, your existing exposure and the role the stock would play in your portfolio. If the answer is not clear, waiting is often the most disciplined move of all.

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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.

Dear Wealth Wise, I'm 64 (almost 65), work full-time, and I'm tired of being told to use AI at my job. Can I retire on $1.6 million if my yearly spending needs are roughly $90,000 and Social Security will pay $3,500 a month (if benefits remain fully payable)? — Seeking Analog

Dear Seeking Analog — In the past year or so, AI integration has picked up tremendously. While some folks are embracing it, for others, it’s quickly becoming a sore spot.

Earlier this year, Talker Research found that 54% of those polled are "getting tired of hearing" about AI, and 30% view it negatively.

Here, our almost-65-year-old reader has clearly had enough of AI and is looking to retire because of it. Is he being impulsive? Does the math work in his favor? Here’s what our experts say.

The numbers might work, but they need to be tested

Our reader’s estimated $42,000 annual Social Security benefit should cover roughly half of annual spending needs. The remaining $48,000 will need to come out of savings.

Using the popular 4% rule, $1.6 million could support $64,000 in annual withdrawals. Since our reader only needs $48,000, they have a pretty good buffer, says Bryan Kuderna, CFP and founder of Kuderna Financial Team. However, he cautions, the often-overlooked factors are taxes and Medicare premiums.

"Spending $90,000 annually is obviously $90,000 of after-tax money," Kuderna explains. "At least a portion of their Social Security benefit [might] be taxable. Then it will be reduced by Medicare premiums, which can be around $200 monthly to much higher depending on their modified adjusted gross income. To have a rough estimate, they [should] assume a $2,500 monthly net Social Security check."

In that case, Kuderna explains, our reader could be looking at a gap, especially if their $1.6 million is sitting in traditional retirement accounts that are subject to taxes on withdrawals. If most of that money is in a Roth account, the math could work, he says. But that "if" needs to be addressed before our reader dives into retirement.

Taxes will vary heavily depending on whether the reader files jointly or as a single taxpayer. Our reader should also factor inflation into his plan, since that $90,000 per year will be worth much less over time.

'Shaky' Social Security is the wild card factor

Our reader suggested Social Security benefits might not be fully payable. They’re not making that up. Social Security Trustees recently reported the program could face broad benefit cuts by late 2032 if Congress doesn’t find a way to shore up its finances sooner.

Caleb Moyer, CFP, CFA, EA, and owner of Moyer Tax Services, says Social Security’s future is worth considering, but it shouldn’t necessarily shape a retirement plan.

"I wouldn't tell someone to keep working indefinitely because they're worried about Social Security cuts," Moyer says. "Instead, I would build a retirement plan that shows what happens if those cuts actually occur."

As Moyer explains, if Social Security benefits are reduced by 25%, our reader would receive $31,500 annually instead of $42,000. (Social Security’s Trustees project a 22% cut, so this builds in even more of a buffer.) That means they would need to withdraw $58,500 from their portfolio each year to maintain their $90,000 spending level.

"Their initial withdrawal rate would increase from 3% to approximately 3.66%," Moyer says.

"That's a meaningful difference, but it doesn't automatically mean retirement is off the table."

This especially holds true if our reader’s $1.6 million is housed entirely in a Roth account. In that case, our reader might not face taxes on their Social Security benefits.

The formula that determines whether taxes on benefits apply accounts for modified adjusted gross income (MAGI) and 50% of one’s annual benefit. Roth withdrawals aren’t part of MAGI, so even without a cut to Social Security, our reader would still be in the clear on benefit taxation, assuming they have no other income.

Social Security cuts aren’t the only thing to stress test.

"I would also want to see what happens if they experience poor investment returns early in retirement or live well into their 90s,” Moyer says. "The short answer is they should be able to retire, but it would be wise to work with a CFP to formulate a distribution strategy."

The right investment mix is key

If you’re going to retire at roughly 65 on $1.6 million, investing that money carefully is key, says Moyer.

"One of the biggest risks for someone retiring at 65 isn't necessarily running out of money because they spent too much," he says. "It's being forced to sell investments after the market has fallen significantly, particularly during the first few years of retirement."

That’s why Moyer recommends what he calls the three-five-seven plan.

"We look at how much someone expects to withdraw from their investments over the first three, five, or seven years of retirement, after accounting for Social Security and other income," he explains. "We then consider setting aside enough money in fixed income … with maturities aligned to their expected withdrawals to cover those years."

Addressing the burnout factor

"If someone has spent decades working and saving," Moyer says, "and their retirement plan shows they can reasonably support their desired lifestyle, there's a real argument for allowing themselves to enjoy the money they've accumulated."

But, he says, "That doesn't mean they need to make an impulsive decision and retire tomorrow. I would encourage them to build a financial plan, understand the potential risks, and determine what their retirement would actually look like."

The reader's birthday is also important. If he burns out and quits with six months to go before turning 65 (when he can start receiving Medicare), he will need to pay out of pocket for private health insurance (ACA). That can easily cost $800–$1,200 a month and derail his $90k year-one budget. If he is only one month away, those healthcare expenses are easier to manage.

David Talley, CFP, ChFC, EA, founder and lead advisor at Talley Wealth, says he understands that AI burnout is real. However, he says, retirement doesn't have to be one big jump.

"A lot of the people I work with step down in stages — maybe part-time, maybe consulting, maybe something totally different they actually enjoy," he says. "Even a little income in those first few years takes pressure off the portfolio right when it matters most."

At the same time, working part-time offers a chance to explore new activities or hobbies and ease the transition. That way, you’re not running away from burnout only to eventually replace it with boredom.

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.

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Editor's note: This is the second article in a two-part series on investing via Delaware statutory trusts (DSTs) investing. The first is Why a "Fee-Based" DST Investing Sales Pitch is a Red Flag for Investors.

Delaware statutory trust (DST) investors sometimes ask, "Why am I paying taxes on more income than I actually received in cash?"

At first glance, it may seem confusing. However, this is not unique to DST investing — it is the same concept that has applied to direct real estate ownership for decades.

This is how we explain it at Kay Properties and Investments, which has been helping thousands of DST investors for nearly 20 years, and where I'm the CEO.

A simple example

For decades — indeed, for generations — real estate owners and landlords have followed the same basic financial principle: Not every dollar of rental income should be distributed immediately. A prudent owner plans ahead by setting aside reserves for future expenses that potentially protect and preserve the property's value.

Imagine you personally own a commercial building that generates $200,000 in annual rental income. During the year, you discover the roof has reached the end of its useful life and will need to be replaced in the near future. Rather than distributing every dollar of rental income to yourself, you wisely retain a portion of the cash flow each month to build a reserve fund for the future roof replacement.

At year-end, you may have only withdrawn $150,000 in cash, with the remaining $50,000 held in the property's bank account as reserves.

Even though you didn't receive that $50,000 personally, it is still income generated by your property. Under IRS tax rules, you generally report the property's taxable income — not simply the cash you chose to distribute to yourself.

At first, this may result in you paying tax on income that remained in the property's reserve account.

However, when those reserve dollars are ultimately used to replace the roof (or any other type of repair or investment in the property, such as resurfacing the parking lot, renovating space for a new tenant or completing other improvements), those expenditures become investments back into the property.

As those costs are recognized for tax purposes over time — major improvements are generally depreciated over their recovery periods rather than deducted all at once — they generally provide write-offs, expenses and future tax benefits to the property's owners, making the earlier timing difference largely a matter of when the expense and tax benefit is realized rather than whether it is realized.

This has been standard practice among real estate owners for decades and is simply part of responsible property ownership and long-term asset management.

How rental income is reported in a DST

Just as with direct real estate ownership, a DST property receives rental income from its tenants throughout the year.

Business tenants that pay rent in the course of their trade or business generally report the rent paid to the property on IRS Form 1099. The DST asset manager receives these forms on behalf of the investors and typically prepares a Nominee 1099 allocating each investor's proportional share of the property's gross rental income.

The Nominee 1099 is primarily an informational reporting document that helps reconcile the rental income reported to the IRS. It is not the document used to calculate an investor's taxable income. Instead, it serves as a record-keeping tool that ties together the gross rents reported by tenants with each investor's ownership interest in the DST.

In addition, DST investors receive a calendar-year balance sheet and income statement for the property. These financial statements reflect the full year of property operations and are prepared by the DST sponsor.

This financial information breaks down the entire DST property's financial information as well as further details of each individual investor's percentage ownership of the DST and their corresponding pro rata numbers. Typical DST financial information at year-end will include the property's gross rental income, operating expenses, net income and balance sheet.

The net income based on your pro rata percentage interest in the DST is an important starting point, but your CPA or tax preparer will adjust it — most notably for depreciation — when preparing your tax return, generally relying on the tax reporting package (often a grantor letter) provided by the sponsor rather than the operating statement alone. (Read on for why cash-basis net income and taxable income are not the same figure.)

Why cash distributions and taxable income may be different

DST investors may have questions if the amount of cash distributions they receive during the year is less than the taxable income reported by the DST property.

This difference is completely normal in commercial real estate whether the investor owns the property outright or a percentage of a DST.

One of the primary reasons is that prudent property management often requires retaining cash to build reserves for future property needs rather than distributing every available dollar to investors.

Those reserves may be accumulated for:

• Tenant improvements for lease renewals or new tenants
• Leasing commissions to secure a new tenant
• Roof replacements
• Parking lot resurfacing
• HVAC replacements
• Landscaping and exterior improvements
• Other major capital expenditures that preserve and improve the property

Although these reserve dollars may temporarily reduce current cash distributions, they remain assets of the property and continue to belong to the DST investors collectively based on their proportional ownership interests.

The reserves are not owned by the DST sponsor or asset manager — they are investor-owned funds being held at the property level for future capital needs. If reserve funds ultimately are not needed for their intended purpose, those funds remain property assets and will be distributed back to investors on a pro rata basis upon the sale or disposition of the property, consistent with the governing DST documents.

Two other reasons taxable income can differ from cash distributions received

Depreciation. One of the most significant tax features of real estate is depreciation. Each year the tax law allows the property's owners to deduct a portion of the building's cost, even though no cash is actually spent.

In the early years of a DST hold, depreciation often shelters a substantial portion of the property's net income — which is why many investors initially report taxable income that is lower than the cash they receive.

As those depreciation deductions decline over the hold period, taxable income tends to rise relative to cash flow.

Mortgage principal. In a leveraged DST, repaying mortgage principal uses the property's cash but is not tax-deductible. As depreciation deductions decline and a growing share of each mortgage payment is applied to principal, an investor may report taxable income that exceeds the cash actually distributed.

This effect — sometimes called "phantom income" — is a normal feature of leveraged real estate, whether owned directly or through a DST, and works alongside the reserve timing difference described in the main article.

The real estate ownership timing difference: Taxes today, tax benefits tomorrow

One point that is often overlooked is that reserve building generally creates a timing difference, not necessarily a permanent tax cost.

During the period reserves are being accumulated, an investor may report more taxable income than the amount of cash actually distributed because some of the property's cash flow has been retained for future capital needs.

However, when those reserve dollars are eventually used — to replace a roof, resurface a parking lot, install HVAC systems and so on — the property incurs those expenditures on behalf of its owners. Because each DST investor owns a beneficial interest in the property, each investor will receive their proportional share of the expenses and write offs associated with those capital expenditures.

As those reserve dollars are invested back into the property, the related expenses and write-offs are passed through to investors based on their ownership interests, helping offset taxable income over time. Because most of these items are capital in nature, the related deductions are generally realized gradually through depreciation and amortization rather than entirely in the year the reserves are spent.

In other words, while a DST investor may have paid tax earlier because reserves were accumulated instead of distributed (the same way as when they directly owned real estate and built reserves), those future expenses will help offset taxable income in later years.

What initially appears to be paying tax on "income you didn't receive" is often simply a matter of tax timing rather than an additional permanent tax burden. This is the case whether you own an interest in a DST or own a property outright.

Example timeline: How a reserve timing difference works

Imagine you own a 1% interest in a DST.

Year 1

• Rental income allocated to you: $100,000
• Cash distributed to you: $95,000
• Reserved by the property for future capital improvements: $5,000

Although you received only $95,000 in cash, the property earned $100,000, so you may report taxable income based on the property's operations rather than simply the cash distributed. (This illustration is simplified; your actual taxable income would reflect operating expenses, mortgage interest (if it were a leveraged DST but not if it was a debt free DST) and depreciation.)

The $5,000 was not paid to the sponsor — it remained your money as part of the property's reserve account, along with the reserves attributable to the other DST investors.

Year 2

The property uses the reserve funds to:

• Replace the roof
• Resurface the parking lot
• Complete tenant improvements for a new lease
• Pay leasing commissions to secure a new tenant

Because you are a beneficial owner of the DST property, your proportional share of those capital expenditures is reflected in the property's tax reporting. Those expenditures generally create future tax benefits that help offset taxable income in later years, generally realized through depreciation and amortization over the assets' recovery periods.

The result: Although you may have paid tax on the additional $5,000 in Year 1 because it remained in reserves, those reserve dollars were ultimately invested back into the property for your benefit.

The associated future expenses help offset taxable income over time, making the difference between taxable income and cash distributions a matter of timing rather than a permanent additional tax burden.

The bottom line

The difference between DST cash distributions and taxable income is often misunderstood, but it is simply a reflection of how commercial real estate ownership has worked for decades regardless of if it is owned outright by the investor or by a DST.

Think back to the example of the landlord who owned a building and prudently retained a portion of rental income to build reserves for a future roof replacement. Although that owner received less cash in hand during the year, the reserve funds still belonged to the owner, remained invested in the property, and were ultimately used to preserve and enhance the value of the real estate.

Those expenditures ultimately generated expenses associated with those improvements, helping offset taxable income over time.

A DST simply follows that same long-established and widely accepted real estate ownership practice through a professionally managed ownership structure.

As always, because every investor's tax situation is unique, investors should consult their CPA or qualified tax adviser regarding the tax treatment of their individual DST investment.

Related Content

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• Six Risks of Delaware Statutory Trusts in 1031 Exchanges
• DST Exit Strategies: An Expert Guide to What Happens When the Trust Sells
• How to Use DSTs and 1031 Exchanges for Diversification
• How Do You Step Away From Your Real Estate Empire Without Facing a Giant Tax Bill?

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 public school teachers and other K-12 employees, retirement planning involves more than a pension and a single workplace savings account.

Depending on the employer, educators might have access to both a 403(b) plan and a governmental 457(b) plan, each offering tax-advantaged savings and features that can become particularly useful at different stages of a career.

Because the plans are often presented separately during benefits enrollment, employees might assume they need to choose one or the other.

In many cases, eligible workers can contribute to both, creating additional savings capacity along with more flexibility in determining when and how retirement assets are eventually used.

Why having both plans can matter

A 403(b) is available to employees of public schools and certain nonprofit organizations and functions in many ways like the 401(k) plans commonly offered in the private sector.

A governmental 457(b) is available to many state and local government employees.

Both generally allow employees to save through payroll on a tax-deferred basis, with Roth contributions also available under some plans.

For 2026, the standard employee contribution limit is $24,500 for each plan. Eligible workers age 50 and older might also qualify for catch-up contributions, while participants ages 60 through 63 might be able to make larger catch-up contributions if their plans allow it.

A 403(b) might also provide an additional catch-up opportunity for certain employees with at least 15 years of service.

The separate contribution limits can be especially valuable for educators who are able to save beyond the maximum permitted in one account. An employee with access to both plans could potentially contribute $24,500 to a 403(b) and another $24,500 to a governmental 457(b) in 2026 before applicable catch-up contributions.

Few households will be in a position to contribute the maximum to both accounts every year, but the additional room can become valuable later in a career when earnings are higher, major expenses have declined, or an employee is trying to accelerate retirement savings.

A 457(b) can offer added flexibility

The differences between the two plans become more important as retirement approaches.

Governmental 457(b) plans can provide added flexibility for employees who leave their employer before age 59½ because distributions after separation from service generally are not subject to the 10% additional tax that can apply to early withdrawals from other retirement accounts.

Different rules and exceptions apply to 403(b) plans, making the expected timing of retirement an important consideration when deciding how to allocate savings between the two accounts.

Consider a teacher who began working in her early 20s and expects to retire after more than 30 years of service. If she leaves her school system before she expects to draw heavily from her other retirement accounts, assets accumulated in a 457(b) could provide another source of income during the transition.

An educator planning to remain employed longer might place more emphasis on features of the 403(b), including the additional catch-up provision that might be available to long-tenured employees.

How the plans can work together

The value of having access to both accounts can change over the course of a career. A teacher in the middle of a career might contribute primarily to a 403(b) while balancing housing costs, college expenses or other financial priorities.

As those expenses decline, adding contributions to a 457(b) can provide another way to increase tax-advantaged retirement savings.

Retirement timing should also factor into the decision. An educator considering an earlier retirement might value the withdrawal flexibility of a governmental 457(b), while a long-tenured employee trying to increase savings late in a career might want to determine whether the 403(b) plan's additional catch-up provision applies.

Employees with sufficient income to contribute to both can also build separate pools of retirement assets that could provide additional flexibility when they begin drawing income.

Investment choices, fees and plan features should be part of the comparison, as well. Two plans offered by the same employer can have different investment menus, administrative costs, Roth options and loan provisions.

Understanding those differences can help employees decide where additional retirement dollars can be best directed.

Review your options before retirement

Educators approaching retirement should review the rules governing each account well before they expect to leave the workforce. The tax treatment of withdrawals can depend on the type of plan, the employee's age, when employment ends and other circumstances.

Reviewing those provisions several years ahead of retirement can provide more opportunity to coordinate workplace accounts with pension income, Social Security and other savings.

Benefits enrollment can also be a useful time for employees who have spent years automatically contributing to the same plan to revisit what their employer offers.

Asking whether both a 403(b) and governmental 457(b) are available, reviewing contribution and catch-up provisions, comparing investment choices and understanding withdrawal rules may uncover options that received little attention earlier in a career.

Teachers spend much of their professional lives planning around school years, grade levels and milestones that can be seen well in advance. Retirement benefits deserve the same periodic review.

Understanding how a 403(b) and 457(b) can work together might give educators more room to save during peak earning years and greater flexibility when the time comes to turn those savings into retirement income.

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• Eight Steps to Help Get You Through the Open Enrollment Jungle at Work
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• Catch-Up Contributions for Higher Earners in 457(b) Plans: What You Need to Know
• What to Do If You Plan to Make Catch-Up Contributions in 2026
• Pros and Cons of 403(b) Plans

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.

In a Berkshire Hathaway shareholder letter, Warren Buffett once advised, "Leave the children enough so that they can do anything but not enough that they can do nothing."

Many parents share this sentiment. A recent survey from Kiplinger and Morning Consult found that parents hope their adult children use an inheritance to improve their lives (22%), not waste it (20%).

Once it's handed over, though, an inheritance can go toward things you'd never condone, or the windfall can shift a child's behavior in unhealthy ways in the long run.

Take David and Kathy, a hypothetical couple who gave their 20-something twins $100,000 each. Instead of using it to buy a house or invest wisely, one twin quit a steady job to day-trade, while the other used it to buy a luxury car that would depreciate over time. What was meant as a gift to open up the future instead became a setback or wasted opportunity.

As Joy Slabaugh, a certified financial planner (CFP) and founder of the Wealth Alignment Institute, explains: "Money can unintentionally interfere with motivation, identity, autonomy or family relationships."

Fortunately, avoiding that outcome doesn't have to change your desire to give or how much, just the way you give it. This holds true for parents as well as grandparents.

Why early inheritances can backfire

An early inheritance is a chance to help adult children while you're still around to see them enjoy it. While more adult children would rather get financial help now (45%) than a larger inheritance later, only 14% of parents say they'd prefer to give now, according to Kiplinger's survey.

Part of that hesitation might stem from research such as a 2026 study that found 42% of heirs spend their entire inheritance within a single year of receiving it. Going from having little to suddenly having a lot can trigger impulsive spending. Depending on the amount, it can also dull the motivation to work hard or invest.

Psychological factors are at play, too. Heirs can experience what researchers call "mortality salience" — the subconscious discomfort of handling "death money," which can prompt rapid spending as a coping mechanism.

Unearned money also tends to be treated more casually than a paycheck. Behavioral economists call this the "house money effect." People spend windfalls, gifts and winnings more freely than money they worked for, as though it were the casino's money rather than their own.

Control of an early inheritance with incentive trusts

For parents who want to give each adult child an early inheritance without fear that it will become a slush fund to live on, one possible solution is an incentive trust.

An incentive trust releases money only when your child meets certain conditions you've set, rather than handing everything over at once. Think of it as a gift with instructions attached. You, the parent, write the rules, while a trustee checks that each one is met before releasing any money. Your child receives a payout only after clearing the bar you set.

If David and Kathy had used an incentive trust, they could have nipped the twins' spendthrift behavior in the bud. Some common conditions they might have required are: a college degree; matching income from a job; or releasing money for a specific step such as buying a first home. Other requirements act as guardrails, such as pausing payouts if a child struggles with substance abuse.

Jon Lapp, a CFP and founder of Haven Financial Advisors, suggests, "Reasonable provisions might support college or vocational training, match retirement savings, help purchase a first home, fund a credible business plan, or give an independent trustee discretion to make staged distributions as the beneficiary demonstrates financial responsibility."

Ultimately, the purpose of an incentive trust is to encourage a desired action or prevent mismanagement. "I would consider this type of trust when the inheritance is large relative to the child's experience, or when there are specific concerns involving addiction, impulsive spending, creditors or an unstable relationship," Lapp says.

What to know before setting up an incentive trust

While an incentive trust sounds good on paper, it can turn into a problem in practice without careful planning.

For instance, Lapp says, "Conditions based on earning a particular salary, entering a certain profession, getting married or having children can become unfair very quickly. Even an earned-income match can penalize a teacher, caregiver, entrepreneur or disabled beneficiary."

Rigid rules can also become outdated, fail to account for unexpected life events such as illness or injury, and place trustees in difficult emotional positions. "When parents use wealth to protect, control, rescue or reward their children, the financial gift can become emotionally complicated for everyone involved," says Slabaugh.

When weighing how best to give an early inheritance, she recommends first asking the right question: "Rather than asking, 'How do we keep our kids from wasting the money?' I encourage families to ask, 'What do we want this wealth to make possible for our children, and what do we want it to teach or reinforce?' "

Other ways to help sooner rather than later

If you plan to give as much as a six-figure sum to your adult children, Lapp advises starting small. "Smaller gifts over several years can provide a useful test of how the child handles money," he says.

Other options Lapp offers include helping fund a Roth IRA when the child has eligible earned income, using a parent- or grandparent-controlled 529 account, paying tuition or medical costs directly to the provider and structuring housing help as a formal loan rather than an informal blank check. He points out that direct tuition and medical payments can also qualify for specific federal gift-tax exclusions when handled correctly.

When the money supports positive choices a child has already made, it can set healthier expectations. That's what parents want most. As Lapp puts it, "The primary goal is to help the next generation, without enabling poor financial management, or creating the expectation that they will always be 'bailed out' by mom and dad."

More Trillion Dollar Talk

• How to Talk to Your Adult Kids About Their Inheritance
• Shielding Your Heirs: The Expert Guide to a Tax-Free Inheritance
• Why So Many Families Are Unprepared for the Great Wealth Transfer — and What You Can Do About it
• Why Leaving an Equal Inheritance to Your Children Could Backfire

By spring 1961, NASA was already launching rockets. Alan Shepard had just ridden one into space and back, a 15-minute flight.

Twenty days later, President John F. Kennedy raised the stakes in one sentence: "I believe that this nation should commit itself to achieving the goal … of landing a man on the moon and returning him safely to the Earth."

A quarter of a million miles, and back. Getting home wasn't an afterthought. It was in the mission from day one.

Nobody responded by shopping for a bunch of equipment. This was unknown territory. The mission plan came first, followed by years of engineering and training.

Once they had the mission mapped out, and engineering had their strategies in place, then they gathered the materials and tools needed for the job ahead.

How retirement planning is like that

Retirement planning is no different. While you are working and the paychecks keep coming in, you're flying short missions. Mistakes get refueled by the next contribution.

Retirement raises the stakes the way the moon did: The trip is longer, refueling stops, and the whole point is coming home safely (not running out of money).

The retirement planning mission is defined by your lifestyle and legacy goals. The engineering comes second, and its job is to get more out of your money while it carries out that mission.

Some retirees want more legacy or more flexibility and will accept a bumpier ride to get it. That's not wrong — it's your preference.

Others give up some upside for a smoother, more predictable ride, trading what matters less for more of what matters more.

There is no right or wrong answer. You decide the mission. Everything else is engineered around it.

The problem today is that too many soon-to-be retirees start buying tools and materials before the mission is defined: An annuity here, a REIT there, a CD because the rate looked attractive.

After the equipment is bought, they look to see what they can build. That's backward, and it's what often gets in the way of a good retirement plan.

Here's how to build a more comprehensive retirement plan, step by step.

Projections: The mission comes first

Your plan is your mission statement:

• What kind of retirement experience do you want?
• How much of your wealth is for lifestyle and income?
• How much is for legacy?

On the income side:

• Do you want more flexibility with a wilder ride?
• More predictability with less thrill?
• A happy middle built just for you?

Remember Kennedy's second clause: The mission was the safe return. Growing your money to become the richest person in the graveyard was never the mission either. Living on it, for decades, is.

Notice what we're doing here: We're defining the path forward, guided by the mission expectations. Not one product has been mentioned.

Strategies: Engineering comes second

Apollo crews logged thousands of simulator hours, and the engineers running the simulations rarely allowed a clean flight. They fed the crews the broken versions: Failed engines, dead radios, alarms mid-descent.

The crews knew the conditions ahead better than anyone alive and still trained for the ones no one could foresee.

This is your strategy session. If these dollars are going on this journey, how do they travel efficiently? This is where tax strategy and withdrawal sequencing come into play, where income, taxes, healthcare and legacy get coordinated. Mini missions, all serving the big one.

During Apollo 11's landing on the moon, computer alarms flashed, and then they discovered the landing zone was full of massive boulders. Neil Armstrong didn't panic or wing it. He flew past them to smoother ground and landed.

The crew never predicted that moment. However, they were prepared to react, and a prepared reaction is better than a risky prediction.

Investments and products: Equipment comes third

Only after the mission was set did the equipment get its assignments, and every piece was a specialist. The Saturn V was the rocket itself, 36 stories tall and nearly all of it fuel. It had one job: Throw the crew toward the moon. It burned itself out in minutes and fell away into the ocean, stage by stage.

The lunar module was the spindly, foil-wrapped lander riding up top, so specialized it could fly only in the vacuum of space. It carried two men down to the surface, lifted them back off and was left behind.

And the heat shield did absolutely nothing for eight days. Dead weight, riding in silence, until the capsule hit the atmosphere at 25,000 miles per hour, and the shield burned away, layer by layer, so the three men inside wouldn't.

No component was chosen on a vendor's pitch. Each was recruited because the mission required it.

Your investments and products deserve the same discipline. Diversify your assets by strategy, not investment ambiguity or hope that growth solves everything. Each investment or product should do a specific thing, at a specific time, in a specific way.

Some fund income in the early years. Some chase growth you won't touch for a decade. Some sit quietly until the markets crash and then get tapped for income while your other accounts recover. (For more on this strategy, check out my book, How to Retire on Time.)

Follow systems, not sentiment

Mission Control ran on flight rules, checklists and go/no-go polls written before launch. When an oxygen tank exploded on Apollo 13, nobody improvised from the gut. They worked the procedures and brought the crew home. They followed systems, not sentiment.

Write your processes down while you're calm so that when the markets crash, taxes go up, or something else unexpected happens, you'll know what to do. A process invented mid-crash is not a process. It's a fear-based reaction.

Run your retirement in this order:

• Plan (mission) first
• Strategies (engineering) second
• Investments and product (equipment) third

That way, the product pitch loses its power. Buy this annuity. Lock in this rate. Try this tool. Those lines don't work on someone with a mission. When the plan comes first and the strategies second, the right tools naturally select themselves.

So, before anyone shows you another product, ask the questions NASA asked before anything left the ground: What's the mission?

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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.

It starts at the very beginning. You hold your baby in your arms and feel a deep, primal desire to give them everything they need. At some point, though, it's time to tighten the purse strings and help them make responsible decisions.

Giving your kids everything they want can cause more problems than it solves, not only during their formative years, but also when they're well into adulthood. There can be a fine line between financially helping adult children and putting them into a situation in which they're financially reliant upon you.

The 'too-nice neighborhood' problem

According to a recent survey from mortgage lender Veterans United Home Loans, more than half of parents of adult children are willing to help their kids purchase a home. Sometimes that's helping with a down payment or closing costs. Other times, it's cosigning a loan.

Problems quickly arise when parents help kids buy houses they can't afford to maintain on their own. Whether it's a monthly payment that burdens the budget or homeowners association (HOA) fees that feel excessive, helping your kids buy a house that they can't afford can be more of a curse than a blessing.

Instead, help them buy within their means or match their down payment to ensure they have some financial skin in the game.

Avoid lifestyle inflation by proxy

If you paid for a somewhat luxurious life for your kids or took extravagant vacations when they were younger (and continue to do so into their adult years), your kids might feel that a certain lifestyle is the norm and come to expect it.

Trying to keep up with a lifestyle once provided by financially established parents can rapidly become problematic.

Covering rent, vacations or luxury expenses tells your kids that their current lifestyle is normal even when it's not sustainable. Once support stops, the adjustment can be brutal, and the kids might try to scramble to afford the same niceties to which they've become accustomed.

This isn't to say that you can't occasionally splurge on a fun family vacation or other luxury, but rather to suggest that boundaries are clear that such a splurge isn't to be expected.

You've probably learned how to deal with lifestyle inflation, as many successful people have. Don't allow it to become your kids' problem by proxy.

Gifts should build habits, not dependence

You can be generous with your adult kids without risking bigger problems. Offer to pay for tools that can create momentum so they can stand on their own, such as professional certifications, seed money for a business or contributions to a retirement account.

The goal is empowerment, not entitlement. If you can help set them up for success, do it with clear expectations that you thoroughly discuss.

Ensure the "help" you provide is actually helpful — a certification in a career your child has no interest in will likely be a waste of money, as would seed money for a business your child wouldn't be able to keep afloat.

Talk openly about the trade-offs

If you gift something to adult kids, explain what the gift does and doesn't cover. If you buy a home, clarify who handles taxes and maintenance. If you pay their tuition, make clear it's a one-time payment. Clarity today prevents conflict tomorrow.

Examine the complications and relational strain that can come with changing your role with your child from "parent" to "lender" and decide if it's worth it. If you expect your child to pay you back, have a clear agreement on the terms so there's no ambiguity in the payback of the funds.

Protect your own financial health

Parents often dip into retirement savings to help adult children, but that kindness can jeopardize long-term stability. It can be a bad idea to earmark money to fund your adult child's lifestyle when you might need that money for your retirement.

Remember: Your kids can borrow money for a house or an education, but you can't borrow your way through retirement. Being financially ill-prepared for retirement because you're helping your kids can backfire on everyone involved if they have to then step in to help you survive.

Helping your adult kids in a productive way can be beneficial, but putting your own finances at risk can damage your financial health. Instead, choose when you want to help, and be clear in your intentions of wanting to help your kids thrive in adulthood on their own.

Related Content

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• If You're in Your 50s or Nearing Retirement, Protecting Your Well-Being Is as Important as Protecting Your Savings
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• The Secret to Life, Liberty and the Pursuit of Happiness? It Isn't Money. A Financial Planner's Take on the American Dream
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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.

Do I need a will, a trust or both? It's one of the most common questions we hear, and the answer is rarely simple. It depends on your family, your assets, your priorities and how much work you're willing to do now to make things easier for the people you leave behind.

Here's how we typically walk clients through the decision.

The core difference

A will is an ancient tool, which traces back to English common law and the Middle Ages. In many ways, it still operates on a system that's hundreds of years old.

When you die with a will as your primary estate planning vehicle, your estate goes through probate, which is a court-supervised process of settling what you owned. In most places, probate is slow, expensive and public.

Some states are less slow, less expensive or less public, but in general, probate is a complex and costly legal process.

A trust does much of the same work as a will, but it's a far more modern structure. A revocable living trust functions as a will-replacement vehicle. It helps you arrive at the same destination — your assets go to the people you choose. However, while a will typically goes through the probate court process, a trust can bypass it.

Some people need both

If your plan is built around a revocable trust, you still need a will. It will just play a different role. This fact tends to surprise a lot of people.

Think of it this way. A "will-only" plan uses the will to say who gets what and when. But once you have a revocable trust, the trust holds those details, and the will becomes a safety net beneath it.

For a trust to work, assets must be inside it or have a way to get in. If you pass away before you've retitled an account or updated a beneficiary designation, your will acts as a catch-all.

Instead of spelling out your whole family story, this will just says one thing: Sweep whatever is left in your probate estate into the trust to be administered under its terms.

The myths that hold people back

The biggest misconception we hear is that trusts are wildly expensive and only for the wealthy. Most people simply don't know what a trust is or how it works.

About 95% of the time, when someone says "trust," they mean a revocable living trust (also called a living trust). There are many other kinds of trusts, including spousal lifetime access trusts, life insurance trusts and more. These trusts typically don't enter the picture until you've built significant wealth.

Myths exist on the will side as well. Many people believe a will avoids probate. It doesn't. Others assume that being named executor (or personal representative) automatically puts them in charge. It doesn't either.

Until a will goes through the probate process and a court appoints someone as the executor or personal representative, the person named in the will has no legal power or authority.

Three key questions to ask yourself

If you're trying to decide between a will and a trust, ask yourself the following:

1. How would your family get by in the weeks after you're gone?

Probate can slow down access to money. Ask how important it is that your loved ones, especially a surviving spouse, can pay bills and keep living their lives. If immediate access matters, avoiding probate through a revocable trust deserves a serious look.

2. Who do you want doing the work?

Setting up a trust takes effort during your lifetime. Some families place a high value on making things efficient for their kids and grandkids while others don't. The question is whether you'd rather put in the work now or leave the next generation to handle it later.

3. How much do you care about privacy?

Probate usually produces an inventory of what you owned. In most states, that inventory is a public document.

Some people do nothing but go through probate records looking for houses to purchase at a discount, and few families enjoy getting a "sorry for your loss, want to sell the house?" call. A trust keeps those details private.

Overall, the choice between a will and a trust isn't about which is fancier or who's wealthy enough to need one. It comes down to how much you value privacy, how quickly your family needs access to your assets, and whether you'd rather do the work now or leave it to the next generation.

Once you understand what each document does and what it doesn't, the right answer will come into focus.

Shelby Anderson, J.D., CEPA®, is a Senior Wealth Planner at Clark Capital Management Group. In this role, Shelby works closely with clients' legal and tax advisers to provide client-facing expertise across a wide range of wealth planning strategies.

Patrick Schultz, J.D., CEPA®, is a Senior Wealth Planner at Clark Capital Management Group. In this role, Patrick works closely with clients' legal and tax advisers to provide client-facing expertise across a wide range of wealth planning strategies.

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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.

One of the biggest misconceptions I encounter is that inherited investments should simply be sold.

Stocks are not cash. Many portfolios are built around long-term goals, whether that's preserving family wealth, generating future income or supporting future generations. Selling everything may often seem like the easiest option, but it doesn't always align with the investor's wishes.

This happens all too often. Investors spend years building wealth through brokerage accounts. They follow the markets, make strategic decisions and carefully build portfolios designed to achieve long-term financial goals.

Then, when it's time to put an estate plan in place, those same accounts are often left out of the conversation.

When stock portfolios aren't properly addressed in an estate plan, loved ones can be left trying to answer questions they were never prepared for.

• Should certain investments be kept or sold?
• Was the portfolio intended to support future generations?
• Were there specific goals behind the investment strategy that beneficiaries should understand before making big decisions?

If there are no clear instructions, even the most well-intentioned estate plans can become a headache for beneficiaries and cause confusion or worse — costly mistakes.

Most Americans haven't planned for their assets

Estate planning remains widely neglected. More than half (56%) of Americans don't have a will or trust, according to Caring.com's 2025 Wills Survey. People still view estate planning as something that can wait until later or is only for wealthy individuals.

This myth leads to countless assets being left without clear instructions for the people who will eventually inherit them.

Investing has also become more accessible than ever. More than 145 million people globally used stock trading apps in 2024, according to the Business of Apps Fintech App Report 2025. These apps give individuals easy, user-friendly access to building and managing their own portfolios.

The challenge is that while investing has become easier, planning for what happens to those investments after death often doesn't take place. Countless investment accounts exist without any clear estate planning instructions attached to them.

This problem isn't limited to people who have no estate plan at all. I often see it among people who have already taken the important step of creating one.

They may have a will. They may have discussed their wishes with family members. They may even have worked with attorneys or financial professionals. Yet their stock portfolio remains largely undocumented.

Family members may know the accounts exist but have little understanding of the intentions behind them. They may recognize certain holdings but don't understand why they were purchased in the first place.

• Was a particular investment intended to be held for another decade?
• Was the portfolio built to generate income for a surviving spouse?
• Was preserving the account more important than distributing it immediately?
• Who was the investor's financial adviser?

Those answers, along with important details about the investor's risk tolerance, are rarely documented, and beneficiaries are often left making important financial decisions without the context that guided the investor's strategy in the first place.

Stock liquidation isn't always the best plan

I've seen beneficiaries inherit a portfolio and begin liquidating positions simply because they don't know what else to do. That tactic is understandable. When there are no instructions, people are forced to make decisions based on limited information.

Some investors may have wanted heirs to retain certain long-term investments. Others may have wanted the portfolio to support goals such as education, home purchases or broader family support.

There may also be important tax implications beneficiaries should understand before taking action. Without guidance, those intentions can easily be lost.

The situation becomes even more complicated when there is no transfer on death (TOD) designation, no beneficiary designation or no trust directing the asset.

In those cases, the stock portfolio will typically become part of the probate estate, creating additional delays and expenses, and leaving the management of the portfolio to the administrator or executor rather than the ultimate beneficiary.

Before assuming a portfolio should simply be liquidated upon their death, investors — whether self-managed or accredited — should decide how they want those assets handled.

• Should certain investments be retained?
• Should others be sold and distributed?
• Have those wishes been documented clearly enough for beneficiaries and executors to carry them out?

The goal here is to leave enough context behind so beneficiaries aren't forced to guess. That starts with:

• Maintaining an inventory of brokerage accounts
• Keeping beneficiary information current
• Documenting the purpose of the portfolio
• Clarifying which holdings should be kept or sold
• Leaving contact information for any financial professionals involved

These details will make a significant difference when beneficiaries are trying to make informed decisions during a difficult time.

What happens when no instructions exist

When no instructions exist, families are often left piecing together information on their own. In many cases, the first challenge is simply identifying what accounts exist. A family may know a loved one invested throughout their lifetime, but have no idea where those accounts are held.

Locating records, accessing accounts and understanding how they fit into the broader estate can take significant time, creating unnecessary administrative burdens for executors.

Then comes the decision-making. I've seen beneficiaries inherit portfolios and immediately begin selling assets because they believe that is what they're supposed to do. I've also seen families disagree because each person has a different understanding of what the investor intended.

Nobody is acting with bad intentions. The problem is that they're trying to make important decisions without enough information. What should have been a relatively straightforward transfer of wealth becomes a far more complicated process than it needs to be.

What investors owe their beneficiaries

A few clear instructions go a long way and can help loved ones understand the purpose behind a portfolio, preserve wealth where appropriate, avoid unnecessary confusion and make more informed decisions.

Estate planning is not simply about transferring assets. It's about transferring clarity. You have to remember that the more guidance investors leave behind today, the easier it will become for beneficiaries to make thoughtful decisions when they don't have someone to guide them.

Related Content

• Shielding Your Heirs: The Expert Guide to a Tax-Free Inheritance
• 5 Questions to Ask a Financial Adviser About an Inherited Stock Portfolio
• Will This 'Tax' Tear Your Family Apart, Even Though Their Inheritance Is Split Equally?
• 3 Life Events That Should Trigger an Immediate Estate Plan Review
• What Really Happens in the First 30 Days After Someone Dies (and Where Families Get Stuck)

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.