The main equity indexes reacted well at first to Federal Reserve Chair Kevin Warsh's Jackson Hole Economic Symposium keynote speech on Friday. Treasury yields and odds of a rate hike in September rose, too. Stock market momentum waned as another low-volume late-summer trading session wore on, and all three indexes turned lower heading into the weekend.

At the closing bell, the Nasdaq Composite was down 0.5% at 26,402, but the tech-heavy index was up 0.8% for the week. The broad-based S&P 500 shed 0.3% on Friday but added 0.5% for the week to 7,711. The Dow Jones Industrial Average was off 0.02% on Friday, but Papa Dow rose 0.5% over the five days to 53,560.

Are markets pricing in a higher target range for the federal funds rate following the next Fed meeting, less than a month from now? Are investors, traders and speculators digesting Thursday's mini-boom for technology and getting ready for a return to normal trading activity after Labor Day?

Who's to say with any real authority why any one buyer or seller made that decision, let alone all of them in aggregate.

At the same time: "We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed," Warsh said shortly after Friday's opening bell. "Otherwise, we have work to do."

And, today, that means higher interest rates.

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The 2-year Treasury yield was up 13 basis points to 4.352% from 4.232% on Thursday. The 10-year Treasury yield (+5.2 bps, 4.724%) and the 30-year Treasury yield (+1.8 bps, 5.209%) were higher, too.

CME FedWatch now shows a 57.5% probability of a 25-basis-point rate hike at the conclusion of the September 15-16 Federal Open Market Committee meeting, up from 35.4% on Thursday.

"Warsh's speech at Jackson Hole went further than we had anticipated in signaling that he is willing to hike rates if underlying inflation is not moving toward 2% 'clearly and at sufficient speed,'" Barclays Chief U.S. Economist Marc Giannoni writes. "We are changing our Fed call, now expecting a 25-basis-point hike in September and another one in December."

MRVL sinks 10%

Marvell Technology (MRVL, -10.3%) was the closing act for Nvidia (NVDA, -4.6%) on this week's earnings calendar, and it didn't go particularly well for the semiconductor stock from a pure price-action perspective.

Marvell beat Wall Street expectations for its fiscal second quarter revenue (+36.5% year over year) and earnings per share (+40.3% YoY). But the beat just wasn't big enough in the wake of MRVL's more than 100% share-price surge since Nvidia's $2 billion investment in the company in late March.

Still, Morgan Stanley analyst Joe Moore, citing a good quarter and outlook "largely in line with prior management expectations," reiterated his Equal Weight (Hold) rating, yet raised his 12-month target price for the AI stock from $224 to $246.

The analyst notes that Marvell now sees 2027 data center growth of 60%, up from 50%, which should drive 10% upside for earnings.

"While we wish that positive long term commentary left more room for short term beats and raises," Moore writes, "we generally agree with the long term optimism." He cites Marvell's work to diversify its growth drivers, beyond custom chips.

Moore concludes that "with AI strong across the board it's a target-rich environment," but he'd "be tactically long for the investor day if the stock sells off."

NVDA, meanwhile, was the worst Dow Jones stock on Friday, a day after posting its biggest intraday gain in more than a year.

You can catch up with this week's developments around the AI revolutionary on our Nvidia earnings blog.

There will be no $50B deal for PYPL

It was a bad day for Marvell, but PayPal Holdings (PYPL, -12.7%) was the worst S&P 500 stock on Friday after Bloomberg reported that private equity firm Advent International and privately held fintech Stripe have abandoned their joint attempt to buy the payments processing pioneer co-founded by Elon Musk.

The Wall Street Journal, citing people familiar with negotiations, said on August 14 that PayPal saw a $60.50 per share offer as "insufficient, but that the parties were talking about a higher price."

Takeover talk has been churning since February, and PayPal's expectations-beating second-quarter earnings helped the financial stock extend a 60%-plus rally off a mid-February 52-week low.

As Keefe, Bruyette & Woods analyst Sanjay Sakhrani notes, the buyout bid "had been a source of support for PYPL." According to Mizuho Securities analyst Dan Dolev, it's all about PayPal's fundamentals now.

Of course, as Bloomberg concludes, Advent and Stripe could come back with another bid "if the situation changes."

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Renovating a home to make it more welcoming for grandchildren doesn't mean sacrificing comfort, safety or design aesthetic. In fact, some of the best home improvements bridge the generational gap by combining "aging-in-place" functionality for grandparents with highly engaging features for kids.

These five ideas for high-impact, high-end home upgrades offer maximum appeal to grandchildren while providing long-term value, safety and comfort for grandparents.

1. The multigenerational home theater & media room

Converting a spare bedroom or basement into a media room provides a quiet escape for movies, reading or music. For tech-savvy grandchildren, it becomes the ultimate entertainment zone.

• For Grandparents: Installing comfortable, supportive and easy-to-exit reclining chairs makes movie nights accessible. Acoustic wall panels and high-quality soundbars improve dialogue clarity for those with mild hearing loss without needing to turn the overall volume to uncomfortable levels.
• For Grandchildren: High-performance gaming consoles, a large smart tv or projector and customizable smart lighting (such as color-changing LED strips) create an immersive hangout spot.

2. A low-maintenance, high-adventure backyard

Transforming a traditional backyard into a dynamic outdoor living space encourages kids to put down their screens and enjoy the outdoors, while ensuring the terrain remains safe and navigable.

• For Grandparents: Wide, level non-slip paved pathways (using materials like brushed concrete or textured pavers) reduce tripping hazards. Raised garden beds allow for easy gardening without bending down, and low-maintenance native landscaping reduces the physical strain of yard work.
• For Grandchildren: A well-integrated, custom play structure — such as an in-ground trampoline (which sits flush with the lawn, reducing fall hazards and keeping sightlines open) — provides endless active play. Just follow key safety tips. You can even add a basketball hoop and LED lights.

3. The ultimate bunk room (with smart built-ins)

Converting a guest room into a dedicated bunk room maximizes sleeping capacity for family visits while leaving plenty of floor space for daytime play.

• For Grandparents: Sturdy, custom-built bunk beds with integrated, wide staircases (rather than vertical, flimsy ladders) make it much easier and safer to help kids make the bed, change the sheets or tuck them in at night. Use washable paint and easy-to-clean fabrics to minimize mess.
• For Grandchildren: Bunks with individual reading lights, built-in USB charging ports, personal privacy curtains and dedicated toy storage cubbies give kids their own secret-fort-like retreat.

4. Zero-Threshold "wet room" bathroom

Upgrading a traditional bathroom to a modern, open-concept "wet room" with a curb-free shower is one of the smartest investments for aging-in-place that also feels incredibly luxurious.

• For Grandparents: Eliminating the tub ledge removes one of the biggest tripping hazards in the home. Slip-resistant textured floor tiles, a built-in teak shower bench and stylish, integrated grab bars (some look like high-end towel racks) ensure safe, independent bathing.
• For Grandchildren: A spacious wet room is perfect for rinsing off after a day of messy outdoor play. Features like dual showerheads — including a slide-bar handheld sprayer — make it simple to adjust the water height for toddlers up to teenagers. Although most toddlers and young children take baths, this feature can help grandparents who worry about lifting them in and out of the tub.

5. An interactive kitchen island & snack station

The kitchen is the natural heart of the home. Modifying your kitchen layout to include a double-sided, multi-level island fosters connection through cooking and baking.

• For Grandparents: Under-counter drawer appliances (like a drawer microwave or drawer refrigerator) eliminate the need to dig blindly in lower drawers or reach high above the stove. Pull-out pantry shelves and touchless faucets make daily food preparation physically easier.
• For Grandchildren: A lower counter tier on the island allows kids to safely pull up a stool to help bake cookies or do crafts. A dedicated under-counter "snack drawer" and beverage fridge stocked with kid-friendly drinks gives them the independence to grab their own snacks without needing assistance. Of course, this type of access is for older children; if your grandkids are still babies or toddlers, make sure your lower cabinets have safety locks.

It's all about having fun

At the end of the day, home isn't just about brick and mortar — it's about the memories, giggles and shared stories created inside its walls. Investing in your space to make hosting easier and more exciting is really an investment in family connection, opening the door to years of seamless visits and priceless traditions.

So bring on the blanket forts, the backyard adventures and the late-night movie snacks! With a home designed to welcome every generation with open arms, you’re all set to be the favorite destination for years to come.

Major home upgrades can make your space more enjoyable for the whole family, but they can also come with a significant price tag. A financial professional can help you determine how renovations fit into your retirement budget and longer-term financial goals.

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

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When you budget for an AI tool, you budget for the bill the vendor sends. That bill is the visible part of the cost. It is also the smaller part.

The expenses that decide whether AI pays off for your firm never appear on the vendor's invoice at all, and most firms do not budget for them until they arrive.

This is the part of AI economics that catches finance leaders off guard. The token cost is the tip. The real cost sits below the surface, and it is made of your people's time and your firm's regulatory exposure.

The cost of review

Every piece of AI output that reaches a client must be checked by a human first. This is not optional for a fiduciary. You cannot send an AI-drafted client communication, an AI-generated summary or an AI-assisted recommendation to the people who trust your firm with their money without a qualified person reviewing it.

The technology does not change the standard of care. It changes who does the first draft.

That review is a labor cost, and it scales with how much AI you use. The more your advisers generate, the more there is to check. A firm that measures only the token bill sees AI getting cheaper per task while the review burden quietly grows.

If you do not budget the review time, you have not budgeted the tool. You have budgeted half of it.

The cost of training

A tool your staff cannot use well is a tool you are overpaying for. I see this all the time with firms that roll out Microsoft Copilot without any training around how to use the tool and get the most out of it. These firms quickly find the costs without the benefits.

Getting real value out of AI requires teaching your people how to prompt it and how to judge what comes back, including when to distrust it. That training takes time, it takes a person to deliver it, and it repeats every time the tool changes or a new hire arrives.

This cost is easy to skip and expensive to skip. Untrained staff produce worse results from the same tool, which makes the AI tool look like a poor investment when the real problem is the absence of training. The token bill is more expensive when your people use the tool badly, reducing your return on the investment.

The cost of governance

This is the line that protects the firm, and it is the one most likely to be missing from the budget.

Using AI responsibly in a regulated business requires an acceptable-use policy that classifies which tools are approved and which data may be processed. It requires vendor due diligence documentation for every tool that touches client data, mapped against your regulatory obligations.

It requires updated supervisory procedures showing how AI-assisted work is reviewed before it reaches a client. It also requires a training record an examiner can inspect.

None of that builds itself. Each piece takes time from compliance and operations staff, and it must be maintained as the tools and the rules change. The off-channel communications enforcement wave taught the industry an expensive lesson about applying existing rules to new technology after the fact.

AI governance is the same lesson waiting to be learned again. The firm that funds the tool but not the governance around it is buying the upside and leaving the downside unbudgeted.

Why ownership decides the outcome

These costs fall across three parts of your firm. The token bill belongs to technology. The review burden belongs to the leadership team. The governance work belongs to compliance. When one of those groups owns the AI budget alone, the costs that live in the other two go unfunded.

Research on AI return makes this concrete. According to the Mavvrik report AI Cost Statistics 2026: Forecasting, ROI, and Budget Risk, firms where technology teams own AI spend by themselves capture less value than firms where finance and compliance share the decision. The reason is exactly this fragmentation.

A technology-only budget sees the invoice and misses the iceberg. A shared budget sees the whole cost, funds it correctly and gets a real answer about whether the tool is worth it.

How to budget the whole cost

Start by writing down every cost a single AI workflow creates, not just the one the vendor charges for. Put the token estimate at the top. Then add the hours of review the output will require, the training to get staff using it well and the compliance work to govern it.

That full number is the real cost of the tool. It is the only number that tells you whether the investment returns anything.

I want to point out that this cost will always be less than a human cost, but it should be clearly measured.

Then assign each cost to the group that incurs it and bring those groups into one budget conversation. The token line is a technology decision. The rest is not.

The firm that budgets the whole iceberg will know what its AI use costs and whether it pays dividends on the investment.

The firm that budgets only the tip will be surprised twice, once by the hidden costs and again by the return that never materialized because the tool was never properly supported.

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

When most people hire a financial advisor, they think they are receiving comprehensive financial advice. Unfortunately, that assumption is not always correct.

Many financial advisors focus primarily on investments. Others specialize in insurance, taxes, retirement planning or estate planning. While expertise in any one area can be valuable, consumers often discover that financial decisions rarely occur in isolation.

A decision about investments affects taxes. A decision about taxes affects retirement planning. A decision about retirement planning affects estate planning. Every financial decision is connected to several others.

That reality helps explain why comprehensive financial planning has long been considered the highest standard of financial advice.

Gary Schatsky, founder of Independent Financial Counselors in New York City and former chairman of the National Association of Personal Financial Advisors (NAPFA), has spent more than four decades advocating for comprehensive, fee-only financial planning.

According to Schatsky, the fundamental challenge is that consumers often receive advice focused on a single area of their finances while the real opportunities and risks may exist elsewhere.

"You can't have someone who's closing one eye and focusing on one issue when investment allocation is no more important than tax planning, which is no more important than debt planning," he says. "They're all completely integrated."

That simple observation highlights one of the most important realities in personal finance: Financial success rarely depends on one decision. Instead, it depends on how all the pieces fit together.

What is comprehensive financial planning?

In my book AdvisorSmart for the Individual Investor, I describe comprehensive financial planning as a process that examines a client's entire financial life rather than focusing on a single product, account or investment decision.

A comprehensive approach considers goals, investments, taxes, retirement plans, insurance needs, estate planning, employee benefits, debt management, cash flow and other financial factors.

CFP Board, which sets and enforces the requirements for the CERTIFIED FINANCIAL PLANNER® certification, identifies several major planning disciplines, including:

• Financial statement analysis
• Insurance and risk management
• Employee benefits planning
• Investment planning
• Income tax planning
• Retirement planning
• Estate planning

A comprehensive financial planner evaluates how these areas interact and affect one another rather than treating each as a separate assignment.

Schatsky believes this holistic perspective is what separates professional financial planning from narrower forms of financial advice. "The goal is to know 360 degrees of someone's world," he says.

In his view, advisors should understand far more than a client's investment portfolio. They should understand family circumstances, tax situations, debt obligations, retirement goals, estate planning concerns, charitable objectives and other factors that influence financial outcomes.

Any advice they provide is cheapened if they don't know "100% of a client's financial world" and haven't considered it fully, he warns.

Why comprehensive advice produces better outcomes

Imagine two investors with identical investment portfolios:

• The first investor has no debt, lives below their means, maintains appropriate insurance coverage and has a well-designed estate plan
• The second investor carries high-interest credit card debt, lacks adequate insurance, has no estate plan and has significant tax inefficiencies

Although their investment accounts look identical, their financial situations are dramatically different.

A comprehensive financial planner would recognize those differences immediately. For the second investor, debt management advice may be more valuable than selecting a different mutual fund or making a minor portfolio adjustment. As Schatsky says, "I'd be happy to take money earning 3% and pay off a credit card [charging] 10%."

Similarly, effective tax planning can sometimes generate greater financial benefits than investment selection alone. Strategic Roth conversions, charitable giving strategies, tax-loss harvesting opportunities and proper asset-location decisions can create substantial value for investors over time.

The common thread is that these opportunities often fall outside traditional investment management.

The importance of asking better questions

Comprehensive financial planning begins with information gathering.

In my experience, a competent financial planner may ask dozens — or even hundreds — of questions before making major recommendations. The purpose is not to create paperwork. The purpose is to understand the client's complete financial picture.

Schatsky compares the process to solving a complex puzzle: "You need to have all of the skills. I need to see your tax return. I need to understand your debt. I need to know your family's situation. I need to understand all the factors."

Consumers should be cautious when advisors ask very few questions before making recommendations.

A financial plan built on incomplete information is likely to produce incomplete results.

If an advisor spends most of the meeting discussing investment products without thoroughly exploring goals, taxes, debt, insurance, retirement planning and estate issues, investors should consider whether the advice is truly comprehensive.

Why fee-only matters

Comprehensive planning becomes even more powerful when combined with a fee-only compensation model.

Fee-only financial planners are compensated directly by clients rather than through commissions generated from the sale of financial products.

The significance is straightforward.

When advisors are not paid to sell products, they are often in a better position to evaluate alternatives objectively.

For example, a fee-only advisor may recommend paying down debt instead of investing additional assets. They may recommend delaying the purchase of a financial product. They may even recommend retaining an existing investment rather than replacing it.

The focus shifts from product implementation to problem solving.

Schatsky believes this objectivity is essential: "The public needs impartial advisors."

The combination of comprehensive planning and fee-only compensation creates an environment where advisors can focus on identifying the best solution rather than the most profitable solution.

What consumers should look for

Investors searching for a financial advisor should ask potential candidates several important questions:

• Will you review my entire financial situation?
• Will you examine my tax returns?
• Will you evaluate my debt structure?
• Will you review my insurance coverage?
• Will you discuss estate planning issues?
• How are you compensated?
• Are there any financial products for which you receive commissions or incentives?

The answers can reveal whether an advisor is providing comprehensive financial planning or a more limited service.

According to Schatsky, consumers should seek financial advisors who embrace the responsibility of understanding every relevant aspect of their financial lives.

"If you're not getting skilled advice and comprehensive advice and impartial advice simultaneously," he says, "you're not getting what you need."

The future of financial planning

As technology continues to automate many investment functions, the value of comprehensive financial planning may become even more apparent.

Portfolio management is increasingly commoditized. Asset allocation models can be automated. Rebalancing can be automated.

What cannot easily be automated is the thoughtful integration of taxes, retirement planning, estate planning, insurance decisions, debt management, family dynamics and life goals into a coherent financial strategy.

That is where comprehensive financial planning continues to demonstrate its value.

More than 40 years after the modern fee-only movement began, the central idea remains remarkably simple: Investors deserve advice that considers their entire financial life.

As Schatsky puts it: "The public needs comprehensive advice."

For consumers seeking objective guidance and better financial outcomes, that principle remains as relevant today as ever.

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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.

Each week in our Ask the Editor series, Joy Taylor, The Kiplinger Tax Letter editor, answers questions on topics submitted by readers. This week, she's looking at four tax questions from readers on various tax proposals in Congress that taxpayers and preparers should keep an eye on this year and next. (Get a free issue of The Kiplinger Tax Letter or subscribe.)

1. Higher home-sale exclusions

Question: My wife and I have lived in our home for many years, and it has greatly appreciated in value since we bought it. If I sell now, my gain will be way above the current $500,000 gain exclusion for selling a home. I have heard that Congress is thinking of raising the gain exclusion cap for home sales. Do you think that will happen this year?

Joy Taylor: Since 1997, individuals who own and use a home as their primary residence for at least two of the five years before the sale can exclude from taxable income up to $250,000 of the gain. The exclusion is $500,000 for joint filers. These figures have never been adjusted for the appreciation in residential real estate during this tax break's 30-year history.

Some congressional lawmakers want to increase the home-sale gain-exclusion amounts. Identical House and Senate proposals introduced by Representative Jimmy Panetta (D-CA) and Senator John Cornyn (R-TX) would hike the exclusion to $1 million for joint filers and $500,000 for others. The bills would also index these amounts to inflation each year.

The odds of enactment into law of these higher home-sale gain-exclusion amounts are a bit better than they have been in past years. But it's still a steep climb. Neither bill will be enacted as stand-alone legislation, so it must be attached to a bigger tax package or to a must-pass legislative priority. We certainly don't see anything happening before the November midterm elections.

2. Age-in-place home modifications

Question: My husband and I want to stay in our home during our golden years. So we are starting to add some age-in-place modifications to it. Will Congress ever give us a tax break for these changes?

Joy Taylor: A Senate proposal by Senators Angela Alsobrooks (D-MD) and Kirsten Gillibrand (D-NY) would do just that. The "Senior Accessible Housing Tax Credit Act of 2026" would give individuals age 60 and older a nonrefundable tax credit of up to $10,000 per year for the cost of specific home improvements. They include:

• Widening doorways
• Replacing toilets and faucets
• Installing non-slip flooring
• Putting in chair lifts and wheelchair ramps
• Installing handrails and shower seats
• Putting in furniture risers

The credit would begin to phase out at modified adjusted gross incomes (MAGI) of over $200,000 for joint filers and $100,000 for single filers.

The odds of passage this year are pretty slim, but we are definitely keeping a close eye on this idea because we expect it will come back again as the U.S. population continues to age.

3. IRS regulation of unenrolled preparers

Question: I am a tax return preparer. I am not a CPA, enrolled agent or lawyer. I heard that Congress wants to make it harder for me to get a preparer tax identification number (PTIN) each year. Can you explain exactly what Congress is proposing for tax return preparers?

Joy Taylor: Last month, the Senate Finance Committee approved a bipartisan bill called "The Taxpayer Assistance and Service Act" that has over 60 proposals covering 10 broad topics:

• Tax administration and customer service
• U.S. citizens who live abroad
• Streamlining judicial review for filers who challenge IRS in court
• Tax return preparers
• IRS's Taxpayer Advocate's office
• IRS's appeals office
• Whistle-blowers
• U.S. citizens held hostage overseas
• Small businesses
• Miscellaneous provisions

One of the secitons in this bill would let the IRS regulate unenrolled paid tax return preparers. An unenrolled preparer is someone who prepares tax returns for money, but is not a CPA, lawyer, enrolled agent or a comparable state-license holder.

Under the bill, unenrolled preparers would have to meet various requirements in order to apply for or renew a PTIN each year. These preparers must provide information about their competence and character, pass criminal background and tax compliance checks, and take up to 18 hours of continuing education courses. Importantly, the proposal does not require unenrolled preparers to pass a competency exam. Under the proposal, the IRS would be able to deny, revoke or suspend PTINs for unenrolled preparers who don't comply with the rules.

Giving the IRS power to regulate unenrolled preparers has been tried before. Since 2014, after an appeals court struck down the IRS's administrative oversight rules for unenrolled preparers, the IRS's National Taxpayer Advocate, Treasury inspectors, government auditors and tax practitioner groups have pleaded with Congress to let the IRS regulate unenrolled preparers. But this has always faced a wall of naysayers in the House and Senate, mainly Republicans, with added pressure from key free-market groups that oppose giving the IRS more statutory authority to regulate preparers.

But some tax professionals say this time could be different. The current language in the bipartisan Senate bill is more modest when compared with prior proposals. Democrats have made preparer oversight a top priority. And it is well documented that unenrolled preparers make more errors with their clients' refundable credits and certain other tax breaks, when compared with filers who do their own returns, CPAs, enrolled agents, attorneys, and volunteers with tax-filing assistance programs.

Maybe we will see Congress act on the Taxpayer Assistance and Service Act in the short time period after the mid-term elections and before lawmakers head home again for the Christmas holidays. There are many factors that will determine this, including which party comes out ahead in the mid-terms, other items on Congress's plate, and the determination of legislators to focus on taxes.

4. Losses from natural disasters

Question: My car was destroyed last fall in a flood that ended up being a federally declared disaster. I didn't have the car insured. I already filed my 2025 Form 1040 and didn't claim a disaster loss because I took the standard deduction. I heard that a new law retroactively allows disaster loss deductions for all of 2025 without having to itemize on Schedule A. What should I do to claim the loss?

Joy Taylor: Before the Senate left Washington, D.C., for its August recess, it approved a House-passed bill. We expect President Trump to sign this bill soon. The legislation provides easings for personal disaster loss write-offs identical to those given to victims of disasters in 2018 through July 4, 2025. The relief applies to losses incurred in federally declared disasters that begin before January 1, 2027. The IRS refers to these as "qualified disaster losses."

Individuals can deduct these disaster losses in excess of a $500 threshold without regard to the 10%-of-adjusted-gross-income offset that generally applies. The relief is available for filers who claim standard deductions and for individuals who itemize on Schedule A of Form 1040.

Since your disaster loss occurred last year after July 4, 2025, and you relied on the old tax rules when preparing your 2025 Form 1040, you can amend your return by filing Form 1040-X to take advantage of the new law.

About Ask the Editor, Tax Edition

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

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

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

More Reader Questions Answered

• All Ask the Editor Q&As
• Ask the Editor: Will I be Audited by the IRS?
• Ask the Editor: Estimated Tax Payments and Withholding
• Ask the Editor: Questions on Selling a Home
• Ask the Editor: 10-Year Rule for Inherited IRAs
• Ask the Editor: Tax Questions on Roth IRA Conversions
• Ask the Editor: Tax Rules for Landlords

Editor's note: This is the third article in a series in which Peter Newman, CFA®, of Peak Wealth Planning, shows you how to make the most of Employee Stock Ownership Plans (ESOPs). The first and second articles are Why High-Net-Worth Families Need a Financial Quarterback to Protect Their Wealth and Concentrated Company Stock in Your ESOP? Waiting to Diversify Could Tank Your Retirement.

Sally retired at 62 with $890,000 in her Employee Stock Ownership Plan (ESOP) and another $420,000 in her 401(k). The numbers looked solid. She'd done the math a hundred times. It was enough to cover expenses, maybe some travel, definitely that kitchen remodel.

Then reality hit. Health insurance before Medicare? $1,800 a month. Property taxes she'd overlooked? Another $6,500 annually. And because she'd claimed Social Security at 62, her monthly benefit was permanently reduced by roughly $750 every month for life.

The ESOP money was there. The 401(k) was there. But the plan wasn't. That gap turned what should have been a comfortable retirement into constant calculations of what she could and couldn't afford.

Here's what I've noticed: The difference between people who retire confidently and people who retire anxiously isn't about how much they've saved. It's about what they did — or didn't do — in the decade before retirement.

Your 50s are a critical window where you either build the foundation for sustainable retirement income or realize too late that your assumptions don't match reality.

Age 50-54: The foundation you can't skip

At 50, you're probably earning peak income, kids might be finishing college, and retirement feels distant.

But this is actually the most important time to create your first real retirement income forecast. Not a napkin calculation or a vague sense that things will work out. An actual projection accounting for your ESOP balance, your 401(k), maybe your spouse's retirement accounts, and what those numbers translate to in monthly income.

Why now? You might discover you're on track to retire at 61. Or you might find out that you need to work until 68. Both answers are valuable, but one of them requires a significant adjustment to your timeline. It's better to know that at 50 than 59.

This is also when you need to look at your debt and what financial obligations are competing for your money. I've seen too many people prioritize funding kids' college education while assuming their own retirement will take care of itself. Sometimes that works out. Often it doesn't.

The questions you should be asking:

• What's my realistic retirement budget, including health care costs?
• Am I on pace to replace my current income, or do I need to adjust expectations?
• What debts should I eliminate before retirement?
• Am I prioritizing retirement savings, or are other goals consuming resources I'll need later?

Getting clear answers at 50 gives you five years before diversification eligibility at 55 to course-correct if needed.

Ages 55-59: Strategic decisions that compound

At 55, you hit your first ESOP diversification eligibility. If you've been with your company for at least 10 years, you can now sell back up to 25% of your accumulated shares.

Say you've accumulated $800,000 in company stock. At 55, you could diversify $200,000, rolling it into an IRA where you can invest in something other than your employer's stock. You can take the cash directly, but there are significant tax consequences and potential penalties that make that option less attractive for most people.

This is also when major life events can change everything. A grandchild is born and you want to help with their education. You buy a second home. Someone gets a difficult medical diagnosis. These things are common, and they should trigger an update to your financial plan.

Between 55 and 60, you'll continue accumulating shares if you're still working, and you may have options to diversify small amounts annually. Whether that moves the needle enough to be worthwhile depends on your specific situation.

Ages 60-65: The pre-retirement pressure test

At 60, you can diversify up to 50% of your total ESOP account. This is your chance to shift half of your concentrated company stock into a more balanced portfolio before retirement.

Here's where planning becomes critical. Retiring before 65? You need a rock-solid plan for healthcare costs until Medicare kicks in. Those costs can easily run $18,000 to $24,000 annually for a couple.

Planning to retire before the full Social Security retirement age of 67? Understand what that costs. Claiming at 62 reduces your benefit by roughly 30% for life. Waiting until 70 increases it by about 24% compared to 67. That difference can mean tens of thousands of dollars annually when you might need it most.

This is also when your liquidity strategy becomes crucial. You need your expenses for the first one to three years of retirement covered by stable sources, such as money market funds, savings accounts or low-risk bond funds. Not your ESOP. Not aggressive stock funds that could crater 40% right when you retire.

Post-retirement: The plan continues

Retirement is when the ongoing management gets more complex. You've got multiple income sources that need coordination: ESOP distributions that might be delayed up to 24 months, Social Security, possibly a spouse's pension or 401(k), maybe an annuity.

And then there are taxes. What federal bracket will you be in? Will a large ESOP distribution push you into Medicare surcharges? Are you approaching 73, when required minimum distributions kick in and potentially force you into higher tax brackets than you'd planned for?

There's no one-size-fits-all answer. Every situation requires mapping out each income source, projecting taxes not just this year but for the next decade, and making strategic decisions about which accounts to spend from when.

The timeline nobody follows (but everyone should)

I get it. Planning across a decade feels overwhelming, especially when you're busy working, managing family obligations and living your life. But the cost of not planning systematically is usually much higher than the effort of doing it.

The people who retire confidently didn't necessarily save more than everyone else. They just understood the timeline and made strategic decisions at each phase instead of letting things happen by default.

If you're anywhere in your 50s with significant ESOP wealth, the question isn't whether you should be planning, it's whether you're going to start now or wish you had five years from now.

For readers looking to better understand how these strategies apply to their own situation, Peter Newman created My ESOP Planner — a resource focused on helping employee-owners plan for diversification, retirement income and legacy decisions. Learn more at www.myesopplanner.com.

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• How Much Retirement Income Could Your ESOP Generate?

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

Stocks closed higher Thursday as market participants cheered Nvidia's (NVDA) blowout earnings report. Wall Street also monitored the start of the Jackson Hole Economic Symposium, where Federal Reserve Chair Kevin Warsh is set to deliver his keynote speech tomorrow morning.

At the close, the blue-chip Dow Jones Industrial Average was up 0.2% at 53,569, the S&P 500 was 0.7% higher at 7,730, and the tech-heavy Nasdaq Composite had gained 1.6% to 26,541.

The equity market got a major lift from Nvidia, which jumped 8.7% — its biggest one-day percentage gain since April 9, 2025 — after the artificial intelligence (AI) bellwether reported earnings late Wednesday.

For its fiscal 2027 second quarter, NVDA said earnings and revenue more than doubled year over year. It also gave strong guidance for its fiscal 2027 third quarter and said it expects revenue to grow 70% in fiscal 2028.

"It is the case that we've never forecasted or never guided to a year in advance," said Nvidia CEO Jensen Huang on the earnings call. "And even though our demand is much greater than 70%, our supply allows us to confidently deliver 70%." Huang added that Nvidia has "a huge year coming up next year, and it's going to be pretty extraordinary."

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"This is a very strong balance sheet with a clear vision of growth, and they are putting up numbers consistently to support that," says Brian Mulberry, chief market strategist at Zacks Investment Management.

While Mulberry notes that some of this is already priced into the AI stock, he expects Nvidia "to innovate, and with their scale, it will be difficult to unseat them any time soon."

For the full rundown on all things Nvidia, check out our earnings blog.

Salesforce soars 23% after earnings

NVDA's post-earnings pop wasn't enough to make it the best Dow Jones stock Thursday. That honor went to Salesforce (CRM), which surged 22.6% — its second-best day ever, behind only August 26, 2020, when the tech stock jumped 26% in a single session.

After Wednesday's close, the software-as-a-service (SaaS) provider reported higher-than-expected fiscal 2027 second-quarter earnings and revenue. The company also raised its full-year revenue forecast, now expecting top-line growth of 11% to 12% vs its previous outlook of 10% to 11%.

"We just delivered one of our best quarters ever, outperforming across every key metric,” said Salesforce CEO Marc Benioff in the earnings release. "AI is delivering value across every layer of our platform. We're seeing incredible demand for our AI and data products, with ARR [annual recurring revenue] about to cross $4 billion."

A separate announcement detailed an expanded partnership between Salesforce and Anthropic. Specifically, the two firms have launched Claudeforce, a plugin that connects Anthropic's Claude AI chatbot into Salesforce's software products companies use.

The impressive earnings results and integration of Claude "reinforce Salesforce's positioning in the agentic AI landscape, support the reacceleration narrative, and should ease bear case concerns around AI disruption risk," says Oppenheimer analyst Brian Schwartz, who reiterated an Outperform (Buy) rating on the blue chip stock and raised his price target to $275 from $250.

Nordson raises its dividend by 15%, its 63rd straight hike

Elsewhere on the earnings calendar, Nordson (NDSN, -1.1%) reported better-than-expected fiscal third-quarter earnings and revenue and raised its full-year outlook.

The company, which creates products and systems to apply, spray and measure fluids such as adhesives and paints at the industrial level, also hiked its quarterly dividend by 15%.

NDSN has long been one of the best dividend growth stocks to own, and was added to the Dividend Aristocrats in early 2023. This latest increase marks the 63rd straight year the company has boosted its payout.

What to watch for at Jackson Hole

The week's not over yet, and tomorrow's keynote speech by Fed Chair Warsh at the Jackson Hole Economic Symposium could create some market volatility.

It's difficult to predict the tone Warsh will take in his speech, says Brandon Zureick, chief economist and senior managing director at Johnson Investment Counsel. "Since taking office, he has favored a more restrained communications approach and has moved away from explicit forward guidance."

Expectations are for the Fed chair to reiterate his commitment to bringing inflation back down to the central bank's 2% target, but stop short of giving specific guidance on interest rates.

But Zureick notes that several other Federal Reserve officials are speaking at Jackson Hole, and today, "Kansas City Fed President Jeffrey Schmid and Cleveland Fed President Beth Hammack both delivered hawkish assessments of monetary policy."

The economist believes that their remarks "underscore the risk that Warsh's address may lean more heavily toward restoring price stability than investors currently expect."

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While Roth conversions are often talked about in retirement planning, they aren't the right strategy for everyone.

For retirees with modest savings and no pension, leaving traditional accounts untouched until it's time to start RMDs can work well. But retirees with pensions face an entirely different tax reality.

In a recent article, Joe F. Schmitz, a CFP® and CEO of Peak Retirement Planning, explains why Roth conversions are so important for retirees with pensions. Schmitz is a regular contributor to Kiplinger's Adviser Intel program, a curated network of trusted financial professionals who share expert insights on wealth building and preservation.

Check out these five questions to test your knowledge about Roth conversions, pensions and taxes.

Good luck! (Don't worry if you miss an answer: You can follow the links below the quiz to brush up on your knowledge.)

Related Content From Adviser Intel

• Why a Roth Conversion Is Wrong for Most People But Often Right for Pension Holders
• When Is a Roth Conversion a Bad Idea? 6 Situations Retirees Should Consider Carefully
• If You're Converting to a Roth IRA, Don't Do It Like This
• 5 Reasons Roth Conversions and Pensions Work Well Together
• 7 Times to Dip Into Your Roth IRA if You Have a Pension (and When to Leave It Alone)

For decades, the traditional balanced portfolio has relied on stocks for growth and bonds for stability. The classic stock-and-bond allocation became the foundation of retirement investing because it offered investors a practical way to pursue long-term returns while managing risk.

But investing has evolved and today, we have access to solutions that didn't exist when the traditional portfolio was developed.

One product receiving increased attention is the registered index-linked annuity (RILA), prompting an important question: Should investors rethink whether traditional bond allocations are the only way to help manage portfolio risk?

The key is downside protection

Unlike bonds, which are influenced by interest rates and credit markets, a RILA may provide returns linked to the performance of a market index, such as the S&P 500, while providing a defined level of downside protection over a specified outcome period.

Many contracts today offer downside protection against the first 10% to 30% (or even 100% in some cases) of market losses over a six-year term while allowing investors to participate in the market's gains, subject to participation rates, upside caps or other contract provisions.

Protection features are subject to contract terms and limitations, and investors can still experience losses.

Portfolio construction should evolve as investment solutions evolve. For years, investors had two primary choices for long-term assets: Stocks for growth potential and bonds for stability.

Additional tools

Today, investors have additional tools that may deserve consideration depending on their objectives.

That shift has led many advisers to think less about replacing one investment with another and more about expanding the conversation. Whether a RILA, bond allocation or other strategy is appropriate depends on an investor's objectives, risk tolerance, liquidity needs, time horizon and tax circumstances.

Rather than viewing a portfolio as consisting of only two buckets (growth potential and stability), some advisers now view buffered investment strategies as a potential third category, positioned between traditional equities and fixed income.

Worth evaluating

For investors seeking growth potential with a predetermined level of downside protection, that middle ground could offer an alternative worth evaluating.

The goal isn't to declare that one investment is universally better than another. It's to ask whether the traditional portfolio deserves a fresh look.

Investors today have more choices than previous generations, and sometimes the best solution is one that didn't exist when conventional wisdom was established.

RILAs are not appropriate for everyone.

• Investors generally forgo dividends
• Upside returns may be limited by participation rates or caps
• Downside protection applies only according to the contract's terms only if the contract is held through the applicable outcome period

Most contracts also include surrender charges during the early years, and withdrawals from nonqualified contracts are generally taxed as ordinary income to the extent of earnings.

In addition, distributions taken before age 59½ may be subject to a 10% federal tax penalty unless an exception applies.

Bonds continue to play an important role for many investors by providing income, liquidity and diversification. The point is not that bonds have become obsolete. Rather, it is that today's investors have more choices for managing risk than they did a generation ago.

Perhaps the conversation is no longer simply about stocks vs bonds. Maybe it's time to consider whether modern portfolio construction includes a third bucket —one designed to bridge the gap between growth potential and downside protection. For many investors, that conversation may be long overdue.

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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.

Living cheaply is the dream, but in 2026, high housing costs are often the reality.

Even after securing a home, many homeowners face recurring ownership expenses — like property taxes, utility bills, and sudden home insurance spikes — that come as a costly surprise.

Some relocate to a state without an income tax in search of financial relief. However, to offset the lack of a personal income tax, several states have steep sales taxes or heavy property tax bills. Others rely on natural resources, energy production, or tourism taxes to keep the burden off resident homeowners.

Below, we rank all nine states with no personal income tax by their homeowner cost score, ordered from most costly to least costly. Here's the result.

States that don't tax income ranked by home costs

To rank each state, Kiplinger combined three key homeownership expenses into a single weighted homeowner cost score:

• Property taxes (50% of the score): Using PropertyShark data (citing 5-year U.S. Census Bureau estimates), Kiplinger examined the median property tax bill. Because property taxes can be a homeowner's largest recurring bill (besides a mortgage), this metric makes up half of the state's total score.
• Utility bills (30% of the score): Using Move.org data, Kiplinger aggregated average annual costs for electricity, natural gas, water/sewer, and internet/TV. This accounts for nearly a third of the score.
• Home insurance costs (20% of the score): Using LendingTree data (sourced from Quadrant Information Services), Kiplinger analyzed average annual premiums for a standard policy with a $1,000 deductible.

To account for recent market conditions, scores also reflect present-day market adjustments, including coastal insurance spikes, heavy summer cooling demand, and remote freight/heating overhead.

9. New Hampshire: Low home insurance, high property taxes

Homeowner cost score: 155

Ranking as the most costly state on our list, New Hampshire incurs a weighted score of 155, driven primarily by exceptionally high property taxes. This is largely due to the Granite State's high effective property tax rate of 1.5% — well above the national average of around .90%, according to the Tax Foundation.

High costs: Lacking a state sales tax and state income tax, New Hampshire relies heavily on local property taxes to fund public services. Utility bills are also elevated (around 21% above the national average).

On the bright side: New Hampshire homeowners enjoy relatively low insurance costs due to minimal coastline exposure and stable climate risks. Plus, the state levies no state estate or inheritance tax, meaning family real estate can be passed down to heirs without a state "death tax."

8. Texas: High insurance costs for a no-income tax state

Homeowner cost score: 150

Texas ranks near the bottom for homeowner affordability due to high property tax rates and surging homeowners insurance. Texas homeowners pay high monthly housing costs that rank among the highest in the nation relative to local incomes, according to 2026 reports by Rice University's Kinder Institute for Urban Research.

High costs: Like New Hampshire, Texas relies on high effective property tax rates to fund local government (since there is no personal income tax). Simultaneously, severe weather risks drive up average annual homeowners insurance premiums substantially, along with high summer air-conditioning electric bills.

On the bright side: Residents age 65 and older can ease their tax burden through homestead exemptions that decrease assessed property values for school districts. Texas also charges no estate tax, preserving wealth for heirs and keeping select areas relatively affordable.

Related: 10 Cheapest Places to Live in Texas

7. Florida: Insurance crisis drives homeowner costs

Homeowner cost score: 103 to 155

Florida's score spans a wide range because homeowners insurance premiums vary widely by location. In inland counties, costs remain closer to national averages; in coastal zones, persistently high insurance rates push Florida toward the top of the overall unaffordability rankings, according to data from the Insurance Information Institute and LendingTree.

Related: 10 Cheapest Places to Live in Florida

High costs: While Florida's median property tax bill is moderate, homeowners insurance premiums have surged in recent years — often reaching $5,000 to $10,000 annually — due to increased hurricane risks and reinsurance spikes. Year-round air conditioning demands also drive up utility bills.

On the bright side: Florida offers a standard $50,000 homestead property tax exemption for primary residences (with expansions being considered on upcoming ballots). Florida also levies no state estate tax, which can potentially save heirs money.

See also: Florida Voters to Decide on $250,000 Property Tax Exemption

6. Alaska: High utility bills and low property tax burden

Homeowner cost score: 84 to 151

Alaska presents a unique financial landscape: while its vast rural boroughs are entirely free of property taxes, this benefit is confined to remote areas. For most residents, living in the state means balancing significant urban property taxes against extreme geography that triggers high utility and shipping costs, as highlighted in Move.org's annual utility report.

High costs: Alaska's annual utility bills are among the highest in the nation — with electric and heating bills running roughly 50% above the U.S. average due to harsh winters and remote fuel delivery.

On the bright side: Alaska homeowners enjoy low base insurance rates thanks to zero hurricane risk, and substantial state oil revenues eliminate state income and state-level sales taxes. Plus, Alaska pays eligible residents an annual Permanent Fund Dividend (PFD) check, offers a $150,000 homestead exemption for homeowners 65 and older, and charges no state estate tax.

5. Washington: Moderate utility bills, higher property tax

Homeowner cost score: 133

Washington lands in the middle tier of non-income-tax states. Although the Evergreen State levies no personal income tax on standard wages, high home prices drive up annual property tax bills, according to U.S. Census Bureau estimates.

High costs: Property tax bills exceed the national average because local municipalities rely considerably on property assessments for funding. Total utility costs are higher than average, and Washington levies a state tax on certain high-value capital gains in addition to a state estate tax capped at 20% (as well as a 9.9% Washington income tax starting 2028 for earners with more than $1 million).

On the bright side: Washington state homeowners insurance premiums remain 35% below the national average, per LendingTree data, even though some local premiums have climbed in recent years. Also, homeowners continue to benefit from lower electricity rates than most of the country, thanks to relatively cheap hydroelectric power.

Related: 10 Cheapest Places to Live in Washington

4. South Dakota: Near national averages for homeowner costs

Homeowner cost score: 102

South Dakota aligns closely with the weighted national baseline for recurring home bills, scoring about 2% above the U.S. average according to data from LendingTree and PropertyShark.

High costs: Severe Midwest weather, including frequent hail and tornado risks, drives home insurance premiums higher than the national average. However, despite the state's rural nature, everyday costs like groceries generally remain at or below the U.S. average due to a strong local agricultural economy.

On the bright side: Local property tax bills hover near or slightly below national midpoints, partially offset by state sales tax revenues. Renewable wind power and hydroelectric generation help keep utility costs manageable. South Dakota also offers a senior property tax assessment freeze for qualifying households and levies no state death tax.

3. Nevada: Relatively low taxes with seasonal utility shocks

Homeowner cost score: 100

Nevada can be tax-friendly for homeowners, but its final cost score depends greatly on the season.

High costs: Nevada summer heatwaves trigger utility bill surges that push utilities above average, while mild winters may help keep costs low. For this reason, peak summer bills can surpass the national average, even though recent statewide averages have dropped significantly below it, per Move.org and LendingTree.

On the bright side: Nevada limits annual tax growth through state-mandated property tax caps and a low assessment ratio. Additionally, weighty tourism tax revenue from millions of out-of-state visitors helps fund public infrastructure, keeping residential property taxes and insurance rates down. Nevada also has no state estate or inheritance tax, making it attractive for passing assets to heirs.

2. Wyoming: Below-average homeownership costs

Homeowner cost score: 96

Wyoming is the second-most affordable state without an income tax for homeowners, boasting property tax burdens up to 40% below the national average according to Tax Foundation property tax maps.

High costs: Rising energy prices have increased utility bills in Wyoming. Groceries and other essential goods can be more expensive in remote towns.

On the bright side: Like Alaska, Wyoming funds much of its state budget through natural resource extraction (coal, oil, and gas) rather than residential property taxes. Low base property taxes and reasonable insurance keep total carrying costs well below national midpoints. Wyoming charges no estate or inheritance taxes, which can preserve real estate value for future generations.

1. Tennessee: Lowest overall homeownership costs

Homeowner cost score: 95

Tennessee claims the #1 spot as the most affordable state for homeowners among those with no income tax. A combination of low property tax assessments and stable carrying costs gives the Volunteer State the lowest overall score, according to PropertyShark and Census data.

High costs: Home insurance rates have risen sharply in recent years, making Tennessee the 7th most expensive state for homeowners insurance, according to LendingTree. Tennessee also has one of the highest sales tax rates in the U.S..

On the bright side: Tennessee boasts some of the lowest average property tax rates in the nation. Plus, the overall cost of fixed housing overhead keeps recurring homeowner bills highly competitive compared to most other non-income-tax states. The state also has no estate tax and offers property tax relief programs for low-income seniors aged 65 and older — making some places in Tennessee cheap to live.

Read More

• 10 Can't-Miss Tax Breaks for Homeowners and Homebuyers
• States With the Lowest Property Tax Bills Ranked by Affordability
• Most Expensive States for Homeowners in 2026

The ultra-wealthy don't just have more money than 62% of Americans. They have a handful of estate-planning secrets to help protect and pass on their wealth. From revocable trusts and Roth conversions to tax-efficient investments, these high-level tactics are designed to minimize taxes, shield assets, and create a lasting legacy.

And what a legacy. Baby boomers are expected to pass down $84.4 trillion to their heirs by 2045 as part of the "Great Wealth Transfer." Roughly half of that amount will come from high-net-worth and ultra-high-net-worth households. The good news? Many of the proven strategies used by these households can be adapted by retirees with modest incomes, without breaking the bank.

Matt Odgers, co-founder of Opelon LLP, says one of the biggest misconceptions is that estate planning is a tax strategy used only by the wealthy. "For most retirees, it has nothing to do with tax. What wealthy families are really buying is control and privacy; it's a clean handoff, and those things cost the same for everyone."

Here are 8 powerful estate planning secrets the rich actually use that you can realistically "steal."

1. The revocable living trust

The ultra-wealthy rarely let their assets go through probate. Instead, they place most of their major assets, including homes, investment accounts and other property, into a revocable living trust, Odgers says.

“The wealthy aren't leaning on a will. A will does not avoid probate, and probate is generally slow, public, and costly. A revocable living trust does the quiet work instead.”

How you steal it: Place major assets in a revocable living trust to avoid probate and allow a seamless transfer to your heirs. A living trust is flexible and can be set up easily with an attorney for about $400–$4,000. Then, “fund” the trust by transferring your house, bank accounts, and other assets into the trust’s name. Don't worry. The trust can be changed or revoked anytime during your lifetime, giving you full control while also protecting your family from the hassle of court delays and probate (and high fees) later.

2. The gift tax exclusion

The ultra-rich understand that making a gift or leaving their estate to their heirs doesn’t ordinarily affect their federal income tax, according to the IRS(pdf). With a bit of strategic planning, they avoid tax implications by using both the annual gift tax exclusion and the lifetime exemption, while shielding their wealth from future tax increases.

How you steal it: You don’t need to be rich to benefit from the annual gift tax exclusion. In 2026, you can gift up to $19,000 per recipient (child, grandchild or anyone else) completely tax-free. A retired couple can gift $38,000 per person annually. Over 10–15 years, this can move significant money out of your estate while helping your loved ones when they need it most.

3. Spousal Lifetime Access Trusts (SLATs)

A SLAT is an irrevocable trust that one spouse creates for the primary benefit of the other spouse. Ultra-wealthy couples use SLATs to remove assets from their estate while still allowing their spouse to receive income or even principal from the trust if needed during their lifetime.

How you steal it: Create an irrevocable trust for your spouse by transferring assets, such as cash, investments, or property, into the trust. That removes the assets from your taxable estate immediately. Your spouse can serve as a beneficiary and can access the funds if needed during their lifetime. This is particularly useful for retirees who want to shield their assets from the high costs of long-term care or future changes in tax law.

4. Life insurance

Permanent life insurance — either whole or universal life — is a favorite strategy among the wealthy because it passes money to heirs completely income tax-free. To maximize this benefit, high-net-worth families often avoid owning policies directly. Instead, they place them inside an Irrevocable Life Insurance Trust (ILIT). When structured properly, an ILIT keeps the death benefit out of the taxable estate, giving heirs tax-free cash to cover estate duties, debts or living expenses without forcing a fire sale of the family home or core assets.

How to steal it: Use permanent life insurance placed in an Irrevocable Life Insurance Trust (ILIT) to leave tax-free money to heirs while keeping it out of your taxable estate. You can often cover the premiums using your annual gift tax exclusion. In the end, you get to leave behind tax-free money for your family while protecting the assets you've worked so hard to build.

5. Family LLCs

By bundling assets — such as real estate or a family business — into a Family Limited Liability Company (Family LLC), the ultra-rich can transfer non-controlling shares to their heirs over time at a discounted valuation. This strategy lowers the gift's taxable value, preserving more of the owner's lifetime exemption and reducing future estate taxes.

How to steal it: Even with more modest assets, you can set up a Family LLC with the help of an estate planning attorney. But the main point is that anyone can benefit from holding assets in entities like trusts or family LLCs. “Heirs can secure access, enjoyment, and management without direct ownership,” says estate planning attorney Kevin Quinn, President at Legacy Counsellors, PC. “This structure shields wealth from creditors, divorces and lawsuits, while ensuring a structured legacy for future heirs.”

6. TOD and POD designations

Transfer-on-Death (TOD) and Payable-on-Death (POD) designations on brokerage accounts, bank accounts, certificates of deposit (CDs), and even some vehicles allow funds to be transferred directly to a beneficiary upon the account holder's death, bypassing probate. Many people overlook TOD and POD designations in estate planning — but not the wealthy.

How to steal it: Setting up TOD and POD designations on your accounts allows assets to transfer directly to beneficiaries upon your death, bypassing probate. Through your financial institution, you choose your assets, fill out a form and name your intended recipients.

However, because TOD and POD designations supersede instructions in a living trust, they must be carefully coordinated. For the best protection, complex assets like real estate are placed in the trust, while simpler accounts — such as checking, savings or CDs — can name the revocable trust as the TOD or POD beneficiary. This keeps your cash out of probate while ensuring every dollar is distributed according to your estate plan.

7. Roth IRA conversions

It's no surprise that the ultra-wealthy are obsessed with managing future taxes and carefully time their Roth conversions to pay taxes when the rate is lowest, giving their heirs tax-free money down the road.

How to steal it: Ryan Maynard, Managing Partner at Vaquero Private Wealth, offers this advice. “Convert traditional retirement money to a Roth during your low-income years — often the stretch after you stop working but before Social Security and required minimum distributions (RMDs) begin. In those years your taxable income can be unusually low, so you convert at a very low ordinary rate and move that money into a Roth, where it grows and comes out tax-free for the rest of your life and for your heirs.” This strategy works especially well for retirees with smaller nest eggs.

8. Long-term capital gains

The ultra-wealthy value long-term capital gains because they are taxed at much lower rates than ordinary income. By holding investments for more than one year, they can pay significantly less tax on their profits. Besides that, they can afford to hold assets for years or even decades because they don't have to rely on selling them to cover daily living expenses.

How to steal it: Try to hang onto your investments for at least a year before you sell them. You’ll often qualify for the lower long-term capital gains rates, which are usually 0%, 15%, or 20%, instead of getting hit with regular income tax rates. You don't need to be ultra-wealthy to take advantage of this. “It is one of the most valuable breaks in the tax code,” Odgers adds, “and it is not based on your estate size.”

Use the best strategies for you

You don't have to copy the ultra-wealthy exactly. Mixing and matching just a couple of these ideas can make a real difference and protect your savings, cut taxes, and leave more for the people you love.

Trent Von Ahsen, CFP®, and Managing Partner at Cedar Point Capital Partners, offers a final word. “There are clearly some differences, but I do think the biggest misconception about estate planning is that it's only for the ultra-wealthy. Affluent families may use some sophistication. But overall, I'd say the same underlying principles are available to basically anybody."

Related content

• 10 Things You Should Know About Estate Planning
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Americans who are over the age of 55, mainly baby boomers, own more than half of the country's wealth. Over the next two decades, it will be passed down to the generations that follow, marking the greatest wealth transfer in our country's history.

While many of us look at inheritance as something purely for the wealthy, 66% of Americans either expect to or have already received an inheritance from their parents, according to a survey from Choice Mutual.

Receiving any kind of inheritance can be overwhelming, and being unprepared can lead to losing much of that money to poor financial decisions or taxes. If you think you may be a part of the Great Wealth Transfer, either as a provider or a beneficiary, here's how to avoid those pitfalls.

1. Start conversations now

One of the biggest issues with the trillions of dollars expected to be passed down during the Great Wealth Transfer isn't the money itself, but beneficiaries being unprepared to manage the assets they receive.

Although it may be uncomfortable, discussing the plan for these ahead of time helps family members know exactly how much they will receive and what taxes they might expect.

If beneficiaries don't have a chance to discuss the inheritance before their loved one passes away, they may end up making important decisions while they're grieving.

Bringing the topic up well beforehand will give them time to plan before their emotions take over, helping reduce the likelihood of poor decisions or impulsive spending.

Some of the most successful inheritances I have seen are among families who prioritize these conversations.

2. Avoid spending sprees

If you suddenly receive a windfall, it can be tempting to spend money on the things you've always dreamed of. You may want to buy a bigger house, a more expensive car or finally take that extravagant vacation. But going on a shopping spree can lead to disaster.

Your dream items will come with additional costs, such as taxes, insurance and maintenance, and those will stick around long after the initial purchase.

You should look at your inheritance as a long-term investment, not an excuse for a one-time splurge. If you have a good plan for the assets, they should help provide financial security for years.

Using the money to pay down any debts you have or starting an emergency fund is much more valuable than spending it on an asset that will eventually lose its value.

3. Consider tax implications

While the tax implications that come with an inheritance will depend on what you inherit and where you live, receiving an inheritance can trigger estate, capital gains, inheritance or income taxes.

For example, while many people may believe they will owe federal income taxes on any inherited money they receive, that may not be the case. Cash that is passed down from a person who has passed away is not considered taxable income for the beneficiary.

If you are gifted a property as an inheritance, receiving it is not taxed in most cases. However, depending on how you plan to use it, you need to consider a few things:

• Ongoing property taxes, insurance and maintenance costs
• Capital gains tax if the property value increases significantly before it is sold
• How you will use the property (personal, investment, rental) determines which tax deductions you can take

Most people don't have a full understanding of which processes will be triggered when estates are handed down. It's important to work with a financial professional before signing anything.

4. Build a strong team

Being part of the Great Wealth Transfer may be life-changing, but it could also be overwhelming. You may be faced with financial decisions you've never had to navigate before.

Having a strong team of professionals, such as a trusted financial adviser, tax professional or estate attorney, can help everyone involved avoid costly mistakes and create strategies that align with their goals.

A large inheritance is a life-changing event, and surrounding yourself with the right people can be the difference between enjoying it and watching it disappear.

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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.

Raising financially literate children requires intentionality. By making financial literacy a regular part of family life, parents can empower their kids to make informed, responsible financial decisions that will benefit them throughout their lives.

And that attitude helps your kids — and yourself — throughout all phases of raising children.

First, starting a family — maybe in your 20s or 30s — means a shift in both your lifestyle and your finances, but it also means that you are responsible for teaching your children good financial hygiene and money habits.

Later, your 40s often bring a unique blend of increased responsibilities and high earning potential, and you might find yourself balancing the financial and emotional needs of growing children with your own financial planning goals.

Finally, as your children approach their teen and young adulthood years, it is important that you set them up for success in college and beyond by building on earlier lessons.

Here are specific ideas for each stage.

Start talking to them about money when they're young

Start early and normalize talking about money. Begin as early as when they are 5 years old. Introduce age-appropriate financial activities that help them understand the value of money and how to manage it.

Making "money memories" with your kids is one way to educate them about financial responsibility while having fun: Giving them a piggy bank to learn about saving, practicing budgeting on family outings and celebrating savings wins are a few ways to teach kids about money, and they can also create positive memories.

Today's kids may never carry as much physical cash as adults, but they still need to understand the value of every dollar. Whether money lives in a wallet or on a phone, the habits of saving, spending intentionally and planning never change.

To help children recognize that continuity, openly discuss financial decisions and share your household budgeting process in simple terms.

Later, this foundation will help as children reach their teen years. You can encourage them to track their spending habits and get a part-time job or step into a small entrepreneurial venture.

Just like any skill, practicing good financial habits over time makes children more adept at managing money as they grow older.

Go digital, but don't ignore physical cash

I send my preteen daughter's allowance through Apple Pay because that is most likely how she'll interact with money as she gets older. It is important for her to learn how to make digital payments and manage her account in a world that continues to move toward "tap" or "double click" to pay.

This also teaches her independence and empowers her to make her own money decisions — and potentially money mistakes. I would rather have her make a $20 purchase that she regrets at age 12, than a $20,000 mistake when she's 22.

While embracing digital tools, I also intentionally use physical cash to teach my daughter about other financial concepts. We talk about where cash comes from and how to count it, and we take physical money to the bank to deposit into her savings account.

I want her to understand that the numbers on the screen in her Apple Wallet represent real dollars, and I want her to be comfortable managing her money both ways.

Teach them about trade-offs

Teens — like all of us — need to understand that every financial decision involves a trade-off. Spending money on one thing means that money won't be available for something else.

For example, buying the latest gaming console might mean saving less for a car, college or future experiences. This concept helps them prioritize and understand the long-term implications of their choices.

Help teens learn to resist the bombardment of messages promoting instant gratification and luxury, often amplified through social media. Help them differentiate between needs and wants, understand the true cost of things (including the impact of debt) and resist the pressure to keep up with trends.

Encourage them to use critical thinking about advertising and social media influencers and emphasize that a healthy money mindset often comes from smart choices and delayed gratification, not just outward displays of wealth.

If they're working, consider helping them open a Roth IRA to teach them about investing early. You should also discuss responsible credit use before they get their first credit card.

Don't stop when they get to college

The goal isn't to raise a child who can balance a checkbook — it's to raise a young adult who feels confident making financial decisions. That confidence comes from hundreds of small conversations and real-life experiences over many years, not one big lesson.

College provides a perfect context for in-depth discussions, both when saving and spending. It's never too early, or too late, to start saving for college.

If you anticipate that your child will contribute to the costs of their higher education, that's something to discuss earlier rather than later. That way, as they grow up, they'll have a full understanding of the plan.

Raising financially savvy children is more important than ever in today's fast-paced, digital world. Teaching your kids about the value of money and how to manage it responsibly can have a lasting impact on their future success.

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

Stocks barely budged Wednesday as Wall Street took a cautious stance ahead of this week's key events, namely, Nvidia (NVDA) earnings this evening and Federal Reserve Chair Kevin Warsh's keynote speech at Jackson Hole on Friday.

Market participants also sifted through a busy economic calendar, which included a hotter-than-expected inflation report.

Ahead of the open, the Bureau of Economic Analysis (BEA) said the Personal Consumption Expenditures Price Index (PCE) — the Fed's preferred measure of inflation — rose 0.2% from June to July, and was up 3.7% from the year-ago period. Economists expected the monthly and yearly figures to arrive at 0.1% and 3.6%, respectively.

Core PCE, which excludes volatile food and energy prices, was up 0.2% month over month and 3.3% year over year, matching economists' forecasts.

"With markets continuing to be sensitive to any data that could increase the odds of rate hikes, today's mild upside inflation surprise and relative economic strength weren't necessarily what investors — or the Fed — wanted to see," says Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management.

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.

The data did little to shift the needle on expectations for a rate hike at the Fed's September meeting. According to CME Group FedWatch, futures traders are pricing in a 60% chance the central bank keeps the federal funds rate unchanged next month — roughly the same as yesterday.

But Zentner says "if subsequent data point in the same direction, the Fed may feel more pressure to move off the sidelines."

Short-term Treasury yields ticked higher after today's inflation data while equity benchmarks slipped. At the close, the blue-chip Dow Jones Industrial Average was down 0.2% at 53,463, the broader S&P 500 was off 0.02% at 7,675, and the tech-heavy Nasdaq Composite was 0.08% lower at 26,130.

Nike hits a 12-year low after downgrade

Nike (NKE) was the worst Dow Jones stock today — sinking 2.3% and hitting a 12-year intraday low of $38.41 along the way — after Truist Securities analyst Joseph Civello downgraded the athletic apparel and footwear retailer to Hold from Buy. He also lowered his price target to $42 from $47.

The downgrade comes after Dick's Sporting Goods (DKS, +4.3%) cut its full-year guidance Wednesday on weakness in its Foot Locker chain, sending shares of the consumer discretionary stock down more than 30%. This, says Civello, "signals incremental murkiness around NKE's turnaround progress."

Civello also downgraded Dick's to Hold and slashed his price target to $135 from $270, saying the athletic retail chain "appears increasingly exposed to Nike with limited visibility into the product improvements needed for the brand's turnaround." The 2025 acquisition of Foot Locker increased Nike's sales penetration at DKS to 35%-40% from 25%.

Nvidia drops ahead of earnings

Nvidia was another Dow stock that closed in negative territory today, falling 1.6%, ahead of the artificial intelligence (AI) bellwether's critical after-the-close earnings report.

Wall Street is expecting another beat-and-raise quarter from the chipmaker, but the real uncertainty rests in the forward guidance and what it means for AI demand, as well as the stock's reaction and how that impacts the broader market.

You can follow along with all the latest news and commentary on Nvidia earnings on our live blog.

Nvidia earnings and Jackson Hole

Brandon Zureick, chief economist and senior managing director at Johnson Investment Counsel, says the timing of Nvidia's earnings event is notable considering it comes ahead of Chair Warsh's first keynote speech at the Jackson Hole Economic Symposium this Friday.

"The current bull market continues to be driven by the artificial intelligence investment theme, and Warsh's commentary could influence investor sentiment," Zureick explains.

The Fed chair has been deliberately vague ahead of the event and "higher long-term interest rates represent a potential headwind for the artificial intelligence trade," says Zureick.

Following today's sticky PCE data, Wall Street will be looking to Warsh for more clarity on inflation and interest rates.

Meta agrees to $18 billion landmark settlement

While Nvidia and Warsh are top of mind this week, Meta Platforms (META, +1.1%) made headlines after the company agreed to an $18 billion settlement with 48 states, the District of Columbia and several U.S. territories to end a landmark case over social media's impact on children.

Meta will also implement changes at Facebook and Instagram, including setting a two-hour time limit on the apps for users under the age of 18 and launching "night mode" and "school mode."

Under the terms of the agreement, the social media platform will only pay out 70% of the settlement unless TikTok and Alphabet's (GOOGL, -1.4%) YouTube agree to pay a financial penalty, and the two platforms, along with Snapchat parent Snap (SNAP, -8.5%), agree to implement new safety measures.

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Equifax has agreed to create a $100 million settlement fund over allegations that a coding error caused it to send inaccurate credit scores to lenders in 2022. Roughly 4 million people could be covered by the settlement.

Claims aren't open yet. The proposed settlement still needs final court approval, with a hearing scheduled for January 22, 2027. If approved, eligible consumers will receive information about how to submit a claim for payment.

Equifax has denied wrongdoing, and the settlement does not constitute an admission of liability. Here's what to know about the proposed settlement, who may qualify and what happens next.

What happened with Equifax credit scores?

According to DiCello Levitt, one of the law firms representing consumers in the case, Equifax misreported lower credit scores for about 4 million people who applied for mortgages, auto loans or credit cards between March 17 and April 6, 2022. The coding error resulted in some lenders receiving inaccurate credit scores.

That matters because lenders use credit scores when deciding whether to approve applications and what interest rates and terms to offer. The lawsuit alleges that some applicants were denied credit, charged higher interest rates or otherwise received less favorable terms because of the incorrect scores.

Equifax has maintained that most scores didn't change substantially. The company previously said fewer than 300,000 people experienced a score change of 25 points or more, according to ConsumerAffairs.

Who could qualify for the Equifax settlement?

About 4 million people are estimated to be included in the settlement class. The settlement covers consumers whose credit scores were inaccurately reported because of the coding error.

You may want to pay particular attention to the settlement if you applied for credit during the affected period, including a:

• Mortgage
• Auto loan
• Credit card
• Other credit product

This may be especially relevant if you were unexpectedly denied credit, received a higher interest rate or were offered less favorable terms. However, simply applying for credit during the affected period doesn't necessarily mean you're eligible for a payment.

More information about eligibility and the claims process is expected as the settlement moves toward final approval. We’ll update this story as new details, including how to file a claim, become available.

How much money could you receive?

The proposed settlement creates a $100 million fund that will be used to make payments to people who submit valid claims. However, no individual payment amount has been announced.

How much each person receives will depend on factors including the number of valid claims submitted and how much money remains after court-approved legal fees, administrative costs and other expenses are deducted.

The settlement fund is non-reversionary, meaning money left over from the claims process won't be returned to Equifax.

Can you file an Equifax settlement claim yet?

No. Those affected can't file a claim for the Equifax settlement yet. The proposed settlement has received preliminary approval. This means the case can move forward, but claims aren't open and no payments are being distributed yet.

Once the court approves the settlement notice, people covered by the settlement are expected to have 90 days to submit a valid claim. More information about how to file, eligibility requirements and important deadlines should be provided as the settlement moves forward.

A final fairness hearing is scheduled for Jan. 22, 2027. At that hearing, the court will consider whether to grant final approval to the settlement.

In the meantime, be cautious of emails, texts or websites claiming they can get you an Equifax settlement payment now. Don't pay anyone to file, secure or expedite a claim on your behalf.

What should you do now?

Since claims aren't open yet, there's nothing you need to file right now. However, if you applied for credit during the affected period, it's worth holding on to any records you still have from that application, particularly documents showing a denial, interest rate or other terms you were offered.

Keep an eye out for an official settlement notice with information about eligibility, deadlines and how to submit a claim. Be cautious of unexpected emails or texts promising an immediate payment, especially if you're asked to pay a fee or provide sensitive financial information.

A credit score is only one part of your financial picture

Your credit score can influence the rates and terms you're offered when you borrow, but it's only one piece of your overall financial health. A financial adviser can help you look at the bigger picture, from managing debt and building savings to planning for retirement and other long-term goals.

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

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Roth conversions have become one of the hottest topics in retirement planning. Browse financial headlines long enough, and you'll likely encounter conflicting advice.

Some experts argue that everyone should convert their traditional IRA to a Roth. Others insist it's a costly mistake. The truth is far more nuanced.

As a CERTIFIED FINANCIAL PLANNER® and CEO of Peak Retirement Planning, I can tell you that for most Americans, a Roth conversion probably isn't necessary. However, retirees with pensions often live by a different set of tax rules (I wrote a book for those with pensions, The 2% Club, that you can request for free here.)

Their guaranteed income can create tax challenges that don't apply to the average retiree, making Roth conversions worth a much closer look.

Before deciding whether a Roth conversion belongs in your retirement strategy, it's important to understand the factors that actually determine whether the math makes sense. You can learn more about this in my YouTube video:

The only question that really matters

Many investors focus on whether they can afford to pay the taxes on a Roth conversion today. While that's certainly part of the equation, it isn't the deciding factor. The more important question is this: Will your total tax rate be lower today than it will be later?

That "total tax rate" extends beyond your federal income tax bracket. A Roth conversion can also influence:

• State income taxes
• Medicare IRMAA surcharges
• Social Security taxation
• Capital gains taxes
• Estate planning outcomes

When viewed together, your true tax cost could look very different than your federal bracket alone suggests.

Why most people don't need a Roth conversion

For many retirees, taxable income will naturally decline when they stop working. Someone who retires with modest retirement savings, no pension and Social Security as their primary income source usually remains in relatively low tax brackets throughout retirement.

In those situations, paying taxes today through a Roth conversion could result in paying more tax than necessary.

Roth conversions are frequently overpromoted, as they can be powerful, but they aren't universally beneficial.

Pension holders face a different tax reality

Rather than seeing their income in retirement decline, retirees with pensions often have multiple sources of guaranteed retirement income arriving simultaneously:

• Pension payments
• Social Security benefits
• Required minimum distributions (RMDs) from traditional retirement accounts

Each source adds taxable income, and together they can keep retirees in higher tax brackets for decades.

For households that have accumulated substantial balances in tax-deferred accounts, such as 401(k)s, IRAs, TSPs or 403(b)s, RMDs can make the situation even more challenging as they grow over time.

That's why many pension recipients find themselves paying as much, if not more, in taxes during retirement than they did while working.

Today's tax environment creates planning opportunities

Another consideration is today's tax landscape: Current tax laws provide relatively favorable tax rates and expanded standard deductions compared with historical norms.

While no one can predict future legislation, many economists expect government revenue needs to increase over time because of rising national debt and the long-term funding challenges facing programs such as Medicare and Social Security.

If future tax rates eventually rise, converting portions of traditional retirement accounts while rates remain relatively low could produce meaningful lifetime tax savings. The objective isn't simply to pay taxes sooner, but to pay them when they're expected to be lower than they otherwise would be.

Don't look only at your tax bracket

One of the biggest mistakes retirees make is evaluating Roth conversions using only the federal tax tables. Your retirement tax picture is much more interconnected.

Increasing taxable income through a Roth conversion could:

• Cause more of your Social Security benefits to become taxable
• Push you into a higher Medicare IRMAA bracket, increasing Medicare Part B and Part D premiums
• Raise your capital gains tax rate
• Increase state income taxes

This is why comprehensive tax planning frequently produces better results than simply converting up to the top of a particular tax bracket.

The widow's penalty can create future tax problems

Married couples regularly overlook one significant future risk: When one spouse dies, the surviving spouse generally transitions from married filing jointly to single tax status. At that time:

• Tax brackets and IRMAA thresholds shrink
• The standard deduction lowers
• One Social Security benefit typically disappears
• The surviving spouse often continues receiving pension income and RMDs

The result can be substantially higher taxes for the surviving spouse. Completing Roth conversions while both spouses are alive allows couples to take advantage of the wider married tax brackets before this transition occurs.

Your children's tax situations matter, too

If leaving money to your children is one of your goals, their future tax bracket deserves consideration as well.

Under current law, most non-spouse beneficiaries must empty inherited retirement accounts within 10 years. A child inheriting a large traditional IRA might be required to recognize hundreds of thousands of dollars of taxable income during that period, potentially pushing them into significantly higher tax brackets.

On the other hand, if your children are likely to remain in relatively low tax brackets, leaving them traditional retirement assets instead of paying higher taxes through Roth conversions today could prove more efficient.

Estate planning isn't one-size-fits-all, and understanding your heirs' financial circumstances is an important part of the analysis.

Tax diversification provides flexibility

Many retirees have accumulated the vast majority of their wealth inside tax-deferred retirement accounts, and that creates a challenge. Every dollar withdrawn becomes taxable income, leaving retirees with limited flexibility when tax laws or personal circumstances change.

Building assets across multiple account types — including traditional retirement accounts, Roth accounts and taxable brokerage accounts — creates what many planners call tax diversification.

Having multiple "tax buckets" allows retirees to decide where retirement income comes from each year, making it easier to adapt to changing tax laws, Medicare thresholds or unexpected expenses.

Where you live can affect the timing

State taxes can also influence whether a Roth conversion makes sense. Someone planning to relocate from a high-income-tax state to one with no state income tax could benefit from delaying Roth conversions until after the move.

Conversely, someone expecting to move into a higher-tax state might decide to accelerate conversions before relocating.

State taxes generally receive less attention in planning than federal taxes, but they can meaningfully affect lifetime tax costs.

A common Roth conversion myth

One objection frequently raised against Roth conversions is that paying taxes today means losing years of investment growth. That argument overlooks an important concept: Taxes on a traditional IRA already represent a future liability.

Paying that liability earlier doesn't necessarily reduce long-term wealth if tax rates remain unchanged — it simply satisfies the government's share sooner.

Where Roth conversions can create additional value is by reducing future RMDs, potentially lowering Medicare premiums, limiting Social Security taxation, providing greater withdrawal flexibility and protecting against higher future tax rates.

The comparison isn't simply about investment growth — it's about maximizing what you keep after taxes over the course of retirement.

The bottom line

Roth conversions aren't appropriate for everyone. In fact, many retirees with modest savings and no pensions might be better off leaving their traditional retirement accounts untouched.

Pension holders, however, ordinarily face a different reality. Guaranteed income, RMDs and long retirement horizons can create tax burdens that make proactive planning far more valuable.

Rather than asking whether Roth conversions are "good" or "bad," ask a better question: Will paying taxes today likely cost less than paying them later?

For retirees with pensions and substantial retirement savings, the answer is often worth exploring through a comprehensive, long-term tax strategy that considers not only income taxes but also Medicare premiums, Social Security taxation, estate planning and future tax flexibility.

Because when it comes to retirement, it's not just about how much you've saved — it's about how much you'll ultimately keep.

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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.

Annette Kruzynski, a 79-year-old retiree from West Hempstead, N.Y., used to think her 401(k) survived the dot-com bust, the Great Recession and the COVID pandemic because she moved all her money to cash. She proudly told anyone that being in CDs, bonds and money market accounts saved her from the massive sell-offs in the stock market.

But in hindsight, she knows she was wrong. "I wish I didn't keep everything safe," says the retiree and grandmother of five. "I think if I had invested, I would have had much more money saved."

Kruzynski can't change the past, but she and other retirees can help future generations avoid similar mistakes, particularly their millennial children, the oldest of whom are turning 45 this year.

It's a prime age to take your finances seriously and, more importantly, hear some sage advice. At this point, you're typically in the peak earning years (or about to enter them) and still have time to build a nest egg. You're also likely juggling multiple expenses, making it difficult to save.

"In your 40s is where everything starts to become a priority, and those priorities for spending are competing with each other," says Pam Krueger, founder and CEO of Wealthramp, a free service that matches consumers with fee-only fiduciary financial advisers. "This is where money decisions start to have bigger consequences."

Today’s 45-year-olds may think they have it all figured out, but the retirees who have come before them know better. Having learned the hard way, these older adults want to spare the younger generation the pain, knowing that preserving family wealth starts with avoiding costly mistakes. Whether it's investing, saving, or spending, here are the crucial, hard-earned lessons retirees and financial professionals say 45-year-olds need to know.

Investing: Siloed accounts and too much risk

Even if 45-year-olds have figured it out by now and are contributing to their 401(k)s and IRAs, financial pros say some common mistakes still linger, including these:

Viewing your retirement accounts in silos. Treating your and your spouse's different retirement accounts as separate, standalone investments rather than a unified portfolio could result in additional fees or overexposure to a single market segment. "You might not have diversification, you might pay three times in fees or your returns may be beaten down because you didn't coordinate," says Krueger. "It's important to clean up, organize and have a clear view of the accounts consolidated in one place."

Taking on too much risk or being too conservative. This might be the age of the buy-and-hold Millennial, but there are plenty of 45-year-olds investing in crypto, meme stocks or other speculative investments. "People buying the next hot, shiny thing and taking unnecessary risk is the worst action I see, especially with retirement money," says Derrick Longo, a financial adviser at Savant Wealth Management in Huntersville, N.C. "A lot of people will hear something on social media or from a friend, and they let that influence their investment strategy. They might get a short bump, but in the long term, it doesn't keep up with market returns."

If you want to make speculative investments, Longo says, do it with money you can afford to lose. On the flip side, taking too little risk can also be detrimental to a 45-year-old's investment portfolio. With 20-plus years left in the workforce, a 45-year-old can afford to have more growth — and more risk — in their 401(k) than a 55- or 60-year-old.

Having been a little too conservative is one thing Sharon and Roger Gibbs wish they could change. The married retirees worked for the state of California for over 30 years and retired in their mid-50s. "Thinking back to age 45, we probably should have been more of a risk taker, but we’re pretty conservative. We regret not renting out a cabin vs selling it at one point," says Sharon, 73, who lives with Roger in Watersound, Fla. "But, for us, our jobs were our investment for our future. We were told by so many people, ‘If you can retire early, do it; you never know what tomorrow brings.’ "

Saving: Standing still on contributions and matches

In the age of the automatic 401(k) enrollment, many 45-year-olds don't have a choice when it comes to saving for retirement, granted that they work for a company that offers one. But that doesn't mean they don't make costly mistakes. One is not contributing enough to get the company's 401(k) match. That's free money they're leaving on the table.

Another mistake is leaving their contribution rate steady instead of automatically increasing it. Most plans offer the ability to automatically increase your savings rate by 1% each year. You can also have your plan increase contributions when you receive raises and bonuses.

Failing to save more aggressively is one of Kruzynski's primary regrets. In addition to being too conservative, she wishes she had contributed more to her 401(k). She worked for over 30 years, and while she has enough money to live comfortably in retirement, she could have had more cash to travel and to leave to her heirs. "Not adding more money to my 401(k) was a mistake," says Kruzynski.

Spending: Living on the edge with a 40-something budget

Many retirees remember all too well how managing their spending in their mid-40s was a constant exercise in discipline. Between paying down mortgages and funding children's educations, a multitude of expenses pull at the household budget all at once. When trying to manage it all, it was easy to make mistakes. A big one that throws everything else off course is winging it, says Michael Conrath, JPMorgan's chief retirement strategist. They have a vague idea of their monthly expenses and savings goals, but nothing concrete.

"On the fundamental level, they need to ask themselves, how much do I spend monthly, what are my known expenses and what do they cost me?" said Conrath. "It's important to have that foundation."

Lots of 40-somethings also live beyond their means, worrying about saving later. "They tend to believe they will keep earning the same amount they are right now and when you make that assumption, you might go for the bigger house or the bigger and better car," says Krueger. "You're living on the edge of your budget instead of putting that money to work."

The view from the finish line

Making sense of money in your 40s is a balancing act with the financial realities of spending and saving pulling you in different directions. While the oldest Millennials may feel they have plenty of time to fine-tune their investing, saving, and spending strategies, retirement will arrive before they know it. That's why it's so important for them to listen to the hard-earned lessons of the retirees who came before them. After all, sharing their lessons on unified investing, disciplined spending and aggressive saving is the best way to protect everyone's wealth.

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

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In April, the IRS and the Department of the Treasury released Revenue Procedure 2026-12. Here's what it means in plain English: The federal government handed state governors the official playbook, and the official map, for nominating the next generation of Opportunity Zones.

When the One Big Beautiful Bill Act (OBBBA) made Opportunity Zones permanent in July 2025, the industry had to wait nine months for the guidelines to be released.

Here are five things I think every investor with significant capital gains needs to understand.

1. We know exactly which communities are eligible

Revenue Procedure 2026-12 doesn't just describe the nomination process. It identifies, by name and by census tract, every community in America that qualifies for Opportunity Zone designation in 2027.

The number? 25,332 population census tracts across the United States, the District of Columbia and U.S. territories. Every single one of them meets the definition of a low-income community under the updated rules of the OBBBA.

The IRS formally adopted the 2020-2024 American Community Survey five-year dataset as the controlling data source for determining eligibility — locking in the methodology and removing any ambiguity about which tracts qualify and which don't.

Not all 25,332 tracts will become Opportunity Zones. Governors can nominate up to only 25% of their state's eligible tracts. But investors and developers are no longer guessing which tracts are eligible to be nominated.

2. Rural America is a bigger part of the story than ever

Of those 25,332 eligible tracts, 8,334 are classified as fully rural. That's roughly one out of every three eligible communities.

This matters for two reasons. First, the OBBBA created powerful new incentives specifically for rural Opportunity Zone investments. Investors in Qualified Rural Opportunity Funds receive a 30% basis step-up after five years, triple the standard 10%, and rural properties benefit from a reduced substantial improvement threshold of just 50% instead of 100%.

These aren't minor tweaks — they fundamentally change the math on deals that wouldn't have penciled out under the original program.

Second, the law requires that states give rural communities meaningful representation in their nominations. With a third of all eligible tracts classified as rural, governors will have both the incentive and the inventory to direct capital into parts of the country that have historically been overlooked by institutional investors.

For those of us who believe Opportunity Zones should be about real economic development in communities that genuinely need it, this is encouraging news.

3. The clock is ticking

Here's the timeline every investor should have on their calendar.

The nomination window opened on July 1, 2026. State governors — along with the mayor of Washington, D.C., and territorial executives — have less than 45 days to submit their nominated census tracts to the Treasury Department.

That puts the initial deadline at September 28, 2026, with a provision for a single 30-day extension that could push final submissions to October 28.

One important detail from the new guidance: States can submit and revise their nominations multiple times during the window, and nominations filed early in the window aren't processed until the window closes. In other words, this isn't a race to gain first-mover advantage — it's a thoughtful, deliberative process designed to arrive at the best possible outcome.

If you're a developer or community leader trying to make the case for a particular tract, you have a genuine window to advocate right up until the deadline.

After the nomination window closes, Treasury will review and certify the selections. The IRS has indicated it expects to publish the final designated Opportunity Zones before January 1, 2027, the date the new OZ 2.0 map officially takes effect.

Treasury has also announced that it will roll out online tools and resources to help state officials with the nomination process, which should make this round smoother than the sometimes chaotic 2018 experience.

But here's what I want you to take away: If you're an investor or a fund manager, you don't have the luxury of waiting until the final map drops in December.

The smart money is positioning now, identifying likely zones, building relationships with developers and local officials and structuring deals to be ready to deploy capital the moment the new designations go live.

4. Fewer zones, fixed boundaries and more competition for the best deals

One thing that sometimes gets lost in the excitement is this: OZ 2.0 will almost certainly have fewer designated Opportunity Zones than OZ 1.0.

Under the original program, there were 8,764 designated zones. Industry estimates suggest the new round will produce roughly 6,300 to 6,500, a reduction of about 25%.

That's because the eligibility rules are tighter:

• The median family income threshold dropped from 80% to 70%
• The contiguous tract loophole (which allowed some higher-income areas to qualify under OZ 1.0) has been eliminated
• Tracts that qualify based on high poverty rates are now disqualified if their median family income exceeds 125% of the area median

Here's something else the new guidance confirms that should matter to anyone doing long-horizon underwriting: The OZ 2.0 tract boundaries are drawn from the 2020 decennial census map and are set in stone for the entire decade the designation is active, which is January 1, 2027, through December 31, 2036.

No redrawing of lines. No splitting of tracts. No adjustments of any kind. Whatever map gets certified in late 2026 is the map for the next 10 years. That's the kind of certainty that serious investors and fund sponsors can build a strategy around.

Fewer zones do not mean fewer opportunities. It means the zones that do get designated are more likely to be genuinely distressed communities where investment capital can make a real difference. But it also means that the best deals in the best locations are going to attract more competition. Early movers will have a meaningful advantage.

5. Puerto Rico investors: Your timeline is different

If you have Opportunity Zone money in Puerto Rico, this one's for you, and it may come as a surprise.

Most investors know that the original OZ 1.0 designations across the 50 states run through December 31, 2028. What many don't realize is that Puerto Rico has always operated on its own schedule.

Back in 2018, the Bipartisan Budget Act gave the island a unique deal: Every eligible tract was automatically designated as an Opportunity Zone, and that designation was backdated to the passage of the Tax Cuts and Jobs Act (TCJA) on December 22, 2017. That was a full year before most states received their designations.

Both parts of that unique deal are now history.

A 10-year clock that started in December 2017 doesn't end in December 2028. It ends in December 2027. The new guidance makes this point clearly, and that gives Puerto Rico investors one less year than they may have been counting on.

In addition, Puerto Rico will play by the same rules as everyone else going forward: No more automatic island-wide coverage. The governor will nominate up to 25% of eligible tracts, just like every other state.

That's a dramatic reduction in scope for a territory where nearly all census tracts were previously designated.

If you have exposure to Puerto Rico in your OZ portfolio, now is the time to review and make sure your timeline assumptions still hold up.

What all of this means for you

If you have unrealized capital gains — whether from real estate, a business sale, stock or any other appreciated asset — and you've been thinking about Opportunity Zone investing, the new guidelines should sharpen your focus.

The OZ 2.0 framework is no longer theoretical. The eligible tracts are published. The timeline is set. The boundaries are locked. And the enhanced benefits, especially for rural investments, are some of the most generous tax incentives the federal government has ever offered.

This is the starting gun. The investors who do their due diligence now, not in January 2027, will be the ones best positioned to capture the full power of what OZ 2.0 has to offer.

Related Content

• Opportunity Zone 2.0 Designations: How Your Governor Will Pick the 2027-2036 Map
• 2026's Tax Trifecta: The Rural OZ Bonus and Your Month-by-Month Execution Calendar
• DST Inventory Just Hit a Record $3.9 Billion: What 1031 Exchange Investors Should Do Next
• How to Use 1031 Exchanges to Scale Up Your Real Estate Empire
• DST Exit Strategies: An Expert Guide to What Happens When the Trust Sells

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.

Power outages are more than inconvenient; for homes relying on medical equipment, they're a safety risk. Additionally, there's another, quieter crisis hitting homes: The 116% surge in electricity costs over the past 25 years.

To illustrate, the average electricity rate in August of 2000 was 0.091 cents per kWh. In July of 2026, that rate increased to 0.197 cents per kWh, according to the Federal Reserve Bank of St. Louis.

For many homeowners, the conversation around solar use circles back to a single metric: The financial return on investment. However, if you're looking at the next chapter of your life, the true value of these systems extends far beyond a monthly electric bill. It represents building a resilient homestead and moving away from reliance on an outdated and overtaxed grid.

How homeowners can prepare for an unreliable grid

The reality is we are relying on an electrical grid built over 100 years ago. Dr. Michael Stadler, an expert in energy systems and the Chief Technology Officer at Xendee, told Kiplinger this will become increasingly problematic as demand from climate change and AI data centers increases.

The Department of Energy released a report last year titled Report on Evaluating U.S. Grid Reliability and Security. It warns that blackouts could increase one hundredfold in 2030 if the US continues to shutter reliable power sources and doesn't add more firm capacity.

Reliability on an aging network is a cost issue. Most importantly, it's a stability issue too. If you're a homeowner, this creates an almost must-have shift away from traditional means to energy sovereignty. A solar and battery system can serve as an insurance policy, ensuring your home remains powered and secure even with increasing blackouts.

How to make your home more energy independent

One of the shifts is seeing homeowners move away from passive consumption, where you rely on your electric utility/supplier for power, to self-sufficient hubs. Using photovoltaics (PV) and battery storage means you've created a localized microgrid.

This has several advantages for your home's journey toward energy independence. It means that when rolling blackouts or power outages occur, your home will retain power since it isn't relying on the grid. And you can sell your excess power (offsets or net metering) to your local energy company if your state laws allow.

What's more, smart control systems make it easy to manage power. It optimizes how you use and store electricity, and when to sell it, based on real-time grid needs. Dr. Stadler recommends selling offsets during peak demand, when you're likely to earn more for them. This automation not only helps you optimize earnings, but it also protects your home for years to come.

Is the ROI worth it?

While these systems require a significant initial investment, usually in the $20,000 to $40,000 range, federal tax incentives, such as the Clean Electricity Investment Credit, provide a six percent tax credit on the qualified investment. Dr. Stadler notes that if your current rate is at or above 20 cents per kWh, the economics of installing such a system become increasingly favorable.

Keep in mind that your electric rate is only one component of your bill. In my case, I found that the transmission/delivery fee is almost half of what I pay. With solar, the excess energy gained and sold could help offset these delivery fees while reducing your energy reliance on the grid, bringing down costs even more.

Another consideration is that solar is clean energy. In some cases, the energy you receive from your electric company can be dirty. Dirty electricity can take the form of high-voltage spikes, harmonic distortions and surges that, over time, can shorten the lifespan of your appliances and electronics.

Is your home ready for a microgrid?

Keep in mind that not every home will be an ideal fit for a microgrid. Use this checklist to evaluate whether your home has the elements required for a successful transition:

• Roof health: Make sure your roof shingles and structure are in good shape since solar panels last 25 to 35 years. If not, you'll need to budget for a new roof.
• Sun exposure: Does your home have obstructions such as large trees or neighboring buildings that cast ample shade? This might limit its effectiveness.
• Energy use: Examine the last year of utility bills to determine your average kWh monthly. This is essential for choosing the right-sized system for your home.
• Local regulations: Read up on your state's net-metering policies. Some homeowners associations might also have restrictions on where you place panels.
• Critical load: Determine which appliances you want on during an outage, as this will decide the battery storage system size you need.

Taking these considerations into account can help you determine if your home is ready for a microgrid.

Ultimately, investing in solar isn't only about reducing your electricity bills; it's about building a resilient, energy-efficient asset. Solar is becoming an essential home improvement that secures your property's independence in a future where grid reliability isn't guaranteed.

Making your home more energy independent can be a significant investment. A financial professional can help you build a plan for upgrades such as solar and battery storage while balancing them with your other financial priorities.

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

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Some of the saddest meetings I have aren't with couples. They're the ones where a client comes to see me for the first time after losing their spouse.

After nearly 30 years as a financial adviser, I've noticed a pattern. In most marriages, one spouse becomes the family's de facto chief financial officer. They know where the accounts are, when the required minimum distributions begin and why certain beneficiaries were chosen. The other spouse understands the big picture, but not always the details.

When the spouse who handled the finances passes away, the survivor isn't just grieving. They're suddenly responsible for a financial life they may never have expected to manage, often while well-meaning family members and financial institutions are pushing them to act fast.

In my experience, the families who fare best aren't the ones who move the fastest. They're the ones who slow down and think it through.

Resist the urge to do everything immediately

Aside from getting certified death certificates and handling immediate household needs, very few financial decisions have to be made in the first few weeks.

I've watched surviving spouses notify every financial institution within days of a death, only to find out that a pension payment, dividend check or insurance reimbursement is still coming payable to the deceased spouse.

Once an account is restricted, negotiating that payment gets far more complicated than it needs to be.

Gather information first. Meet with your financial adviser, CPA and estate planning attorney before making decisions that could be difficult or impossible to reverse.

Your beneficiary designations just changed

Retirement accounts, annuities and life insurance policies pass according to their beneficiary forms, not your will or trust. That makes them one of the first things worth reviewing.

I often see clients who named their living trust as the beneficiary years ago. Depending on your situation, naming individual beneficiaries instead can be simpler for your heirs to administer.

There's no universal right answer here, which is exactly why it deserves a real conversation with your adviser and attorney rather than a quick assumption.

Don't let the widow's tax catch you off guard

Here's a planning window most people miss: For the year your spouse dies, you can still file as married filing jointly. The following year, you'll typically file as single, where the tax brackets are considerably less favorable. Advisers call this the "widow's tax" or the "widow's penalty."

That one-year gap can be an opportunity to convert some, or all, of a traditional IRA to a Roth IRA while you still qualify for the wider joint-filer brackets. The catch is timing: The conversion generally has to be done by December 31 of the year your spouse passed away. If your spouse dies later in the year, that window shrinks fast.

Don't make this decision in isolation. The 2025 tax law changes, including the new $6,000 deduction for older people and the updated SALT deduction, can change the math on a Roth conversion. Loop in your CPA before you convert a dollar.

Don't rush into a spousal rollover

I see this more than almost any other misstep: A surviving spouse moves an inherited IRA into their own IRA right away because it feels like the obvious next step. Sometimes it is. Often, it isn't.

There's no deadline requiring a spousal rollover. If you're younger than 59½ and need access to retirement money, distributions from your own IRA are generally hit with a 10% early withdrawal penalty.

Distributions from an inherited IRA owned by a surviving spouse generally avoid that penalty. Once you complete the rollover, that flexibility is gone. Wait until you actually know which option fits your situation.

Give your estate plan a second look

Your estate plan was written for a different chapter of your life. Have your attorney review your living trust, power of attorney, HIPAA authorization and healthcare directive to confirm the people you named are still the right people.

If your trust is older, it may require setting up a bypass, or "B," trust when the first spouse dies. That provision made sense when the federal estate tax exemption was much lower.

Now that the exemption has been raised to $15 million per individual in 2026, many families no longer need that structure, and keeping everything in the A trust may be simpler if your estate falls under that threshold.

This is a decision to make with your attorney, not on your own.

Have the family conversation

One of the best things you can leave your family isn't money. It's clarity.

I encourage clients to hold a family meeting after losing a spouse. You don't have to share account balances. Just let your family know where your documents are, who your advisers are and how your estate plan works.

This is also a good time to start passing along personal items that carry meaning. If your late spouse loved fishing, the family member who shares that passion might treasure the gear now more than they would years from now.

My goal for every client is simple: When the surviving spouse eventually passes, I don't want their kids searching for account numbers and passwords. I want them focused on the life that was lived, not a scavenger hunt for the paperwork behind it.

Losing a spouse changes your finances as much as it changes your life. The families who come through it in the best shape aren't the ones who acted fastest. They're the ones who took a breath, asked the right questions and made each decision on its own timeline.

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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.

Most of my clients hate paying taxes. That part is universal. But what I've noticed over years of helping high-net-worth families with tax planning is that the instinct to avoid taxes today often leads to paying significantly more of them tomorrow.

The pattern shows up consistently: A client prefers to draw first from Roth accounts or taxable brokerage accounts, which are taxed at favorable capital gains rates, to avoid touching their IRA or 401(k) for as long as possible. It feels like a win. They've deferred taxes.

But when you model it out over 20 or 30 years of retirement, that approach often increases the cumulative tax burden, because they haven't spread withdrawals across tax brackets in a way that keeps their taxable income in check year after year.

That's what happens when you optimize for April instead of the next two decades.

Why deadlines are the enemy of good tax planning

When tax planning happens only in the fourth quarter, or in the final days of December, it may limit available strategies.

First, there's a logistical problem: Custodians can't guarantee that transactions such as qualified charitable distributions (QCDs), donor-advised fund (DAF) contributions or Roth conversions will settle before year-end if you wait until the last minute. A missed deadline isn't a tax strategy, it's a penalty.

Second, and more importantly, you lose flexibility. Many tax-saving moves depend on timing relative to market conditions, income fluctuations and life circumstances. Gifting appreciated shares to charity, for instance, is far more impactful when a stock has just jumped on an earnings report than when you're scrambling in December.

The difference between gifting 10 shares at $80 vs $88 per share, a 10% move that translates directly into a larger charitable deduction and greater tax savings, is an opportunity you can only capture if you're watching for it throughout the year.

Four strategies that require time to be effective

Some of the most effective tax moves cannot be executed well in a single tax season. Four stand out, and each one requires years, not months, to deliver.

1. Roth conversions in the low-income window.

For clients who retire before claiming Social Security, there's often a window, of about five to 10 years, when taxable income drops considerably.

Converting IRA or 401(k) funds to a Roth account during this window, at the 12% or 22% bracket rather than the 32% or higher rate that may apply once Social Security and required minimum distributions (RMDs) kick in, may produce meaningful lifetime tax savings, depending on individual income levels, bracket projections and future tax law changes.

This is cash flow modeling at its most useful: Mapping out conversion amounts year by year rather than deciding in isolation.

2. Coordinated charitable giving.

Bunching charitable deductions into a high-income year, such as one marked by a significant portfolio rebalance or a large Roth conversion, can be far more effective than spreading gifts evenly.

When income spikes irregularly, charitable giving becomes a natural offset. Planning this in advance, rather than reacting after the income event has already occurred, is what separates intentional strategy from coincidence.

3. Inherited IRA management under the SECURE Act.

For clients who inherit an IRA, the old "stretch" provision that allowed distributions over a lifetime is largely gone. Most beneficiaries now have a 10-year window to deplete the account. The planning question is when, within that window, to take distributions.

Consider a client who inherits an IRA two years before retirement and is still earning a full income. Depending on their income trajectory and tax bracket, delaying those withdrawals until after they stop working, while still within the 10-year depletion period, could shift distributions into meaningfully lower tax years.

4. Portfolio transitions for clients with embedded gains.

When a client comes in holding a portfolio of highly appreciated securities, triggering all of those gains in year one is rarely the right answer. A better approach recognizes those gains gradually over two, three or more tax years, spreading the burden while moving toward a better-diversified portfolio.

This requires a long-range view of the tax cost, not a reflex to get everything repositioned quickly.

Where investment decisions and tax strategy meet

Paying capital gains taxes is not inherently bad. It means your investments have grown. The risk of staying in a concentrated position that may no longer outperform can be far greater than the tax cost of diversifying.

We see clients hold individual company stock well past the point where it makes portfolio sense, purely to avoid a capital gains bill. That's a case where the tax tail is wagging the investment dog.

The better goal is minimizing taxes without compromising portfolio quality and diversification. Strategies such as tax-loss harvesting, asset location and direct indexing are genuine tools, but they work best as optimizations on top of a sound plan, not as substitutes for one.

Three steps to explore before your next tax season

If you've been taking a reactive approach, here are three places to start looking for opportunities:

1. Pull out your 2025 tax return and look for surprises.

Were there large distributions you didn't anticipate? Did you end up in a higher bracket than expected? Are there tax-advantaged accounts you could be contributing more to?

2. Identify any irregular income on the horizon.

Equity compensation, a business sale, a liquidity event, a large one-time expense: Each of these is a planning opportunity, and the earlier you can model the tax implications, the more options you have.

Once the income has already hit your return, many of the best strategies are off the table.

3. Get organized before you need to be.

One of the biggest sources of tax-season friction is simply not knowing where things are: Prior returns, IRS PINs, cost basis records, charitable contribution receipts.

Building a simple reference document for your annual tax prep reduces stress and makes it far easier to execute time-sensitive strategies without scrambling.

Taxes are unavoidable. But the total taxes paid over a lifetime of retirement are not fixed. They're shaped by decisions made years in advance, at the right income levels, in the right accounts, in the right sequence. That's a long game worth playing.

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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.

By now, the fall tuition bill has landed, and for a lot of families the numbers don't close the way they used to. That isn't your imagination.

The federal borrowing caps that took effect on July 1 set a ceiling on Parent PLUS for the first time at $20,000 a year and $65,000 over the life of a student.

They also ended Grad PLUS for new borrowers. The loan that quietly filled whatever grants and federal aid left behind now runs out sooner.

Private lending is already a $140 billion market, about 8% of all student debt, according to industry data from Enterval. Analysts expect private loan volume to climb sharply this year as families move to cover the difference.

So here you are, maybe taking out a private loan for the first time, with a payment deadline days away. The textbook advice was to shop these loans back in May or June. That window has closed, but the situation isn't an emergency yet. Private loans have no fixed federal deadline and can still disburse into the fall term.

What you can't afford is to let the clock stampede you into the first offer that clears the bill. A little thought now will save you years of paying for a rushed choice.

First, make sure you have hit the federal ceiling

Before you sign anything private, confirm you have used every available federal dollar, because federal loans offer protections, such as income-driven repayment, forgiveness programs and deferment options, that private lenders rarely match.

Understanding these benefits helps families weigh the true cost and safety of each option.

Review each step deliberately. Make sure the student has accepted their full federal loan amount first. Then look at what Parent PLUS still allows under the new caps, because even a capped PLUS loan keeps federal features that a private loan might not offer.

A private loan should only fill the gap that remains. Borrow that figure, not a dollar more. A federal-versus-private loan comparison (like the one on CollegeLens, the website that I founded) can help you confirm you're filling a real gap rather than replacing cheaper, safer money.

Get a fixed rate unless you have a specific reason not to

A variable rate will almost always look cheaper on the day you apply. That is the point of it, and it is also the trap. A rate advertised at 3.99% variable can climb to 8% or 9% if benchmark rates rise, and this is a loan you may be repaying for a decade or more.

A fixed rate locks in your cost for the life of the loan. For a bill you're financing over many years, the certainty is worth more than a low teaser number. Unless you plan to pay the loan off fast and can absorb a jump, fixed is the safer call.

Understand what a cosigner really signs up for

Most students need a cosigner to qualify, and most cosigners don't fully register what they're agreeing to. If you cosign for your child, you're not vouching for them. You're equally on the hook. The debt shows up on your credit report; a missed payment is a missed payment, and it can sit on your record for years.

You're also not unusual in needing one. Cosigners are the norm in this market, not the exception. Industry data from Enterval shows cosigner rates have remained above 85% every year since 2009.

In the most recently reported quarter, more than 94% of newly originated private loans carried a cosigner, including almost 97% of undergraduate loans. If a lender is willing to lend to your student at all, it is usually because someone with established credit is standing behind the loan.

This is where the fine print earns its keep. Look for a cosigner release — the provision that lets you come off the loan once the student has made a stretch of on-time payments, often around 12 months, and can qualify on their own.

Some lenders offer it, and others don't; the terms vary widely. If two offers are close on rate, the one with a clean, achievable cosigner release is the better loan.

The trade you are actually making

It is helpful to understand what you give up when moving from federal to private loans, especially since private loans typically lack income-driven repayment options. Payments do not flex with income drops, and deferment or forbearance are limited and lender-specific.

Knowing these limitations can make you feel more cautious and prepared to weigh the risks involved.

None of that makes a private loan a bad choice. For a family with strong credit, it can be a perfectly reasonable way to close a real gap, and the rate can even beat a federal loan in some cases.

The point is to go in knowing the trade rather than discovering it later. If you have read my earlier columns, you will recognize the theme: The mistake is rarely the loan itself. It is borrowing on autopilot because you were busy.

Here's a short checklist for before you sign:

• Confirm the student has accepted all federal loans first, then measure the true remaining gap.
• Borrow only that gap. Resist rounding up for a cushion you will pay interest on for years.
• Choose a fixed rate unless you have a concrete plan to pay it off quickly.
• Compare at least two or three lenders on rate, fees and cosigner release, not just the first approval.
• Read the deferment and forbearance terms so you know your options if income drops.

The bigger picture

The federal safety net for college borrowing shrank this summer, and the private market is stepping into the gap it left. That isn't automatically bad news, but it does shift more of the responsibility onto you to shop well.

The deadline on your desk is real. It is also the exact moment a lender's job gets easier, and yours gets harder.

So slow down by one notch, even now. Fill the gap you actually have, lock in a rate you can live with, protect whoever is cosigning, and know the protections you are trading away.

Do that and a private loan becomes a deliberate piece of a plan instead of the thing you grabbed because the bill was due on Friday.

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

All three main equity indexes opened higher and held modest gains through Tuesday's trading session, as market participants looked beyond ratcheting geopolitical tension to focus on earnings and guidance from the world's most important publicly traded company.

President Donald Trump and Prime Minister Mark Carney are raising tariffs in North America, while President Xi Jinping says China is prepared to counter U.S. economic moves against Iran.

Investors, traders and speculators took comfort in a New York Times report that the State Department is preparing to send diplomats back to Middle East embassies evacuated because of the war, "suggesting that the Trump administration does not anticipate a return to all-out hostilities."

Front-month West Texas Intermediate crude oil fell more than 4% to $81.54 per barrel. The yield on the 2-year Treasury was down 5.3 basis points to 4.183% from 4.236% on Monday. The 10-year Treasury yield (-7.5 bps, 4.629%) and the 30-year Treasury yield (-6.7 bps, 5.164%) inched back, too.

Nvidia (NVDA, +2.2%) ended a seven-session losing streak and was among the top three Dow Jones stocks a day ahead of the scheduled release of its fiscal 2027 second-quarter results after Wednesday's close.

Semiconductor stocks bounced back after falling sharply on Monday, with Marvell Technology (MRVL, +4.8%) rallying ahead of its turn on the earnings calendar after Thursday's closing bell.

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.

"Here's the setup nobody's saying out loud," Siebert Chief Investment Officer Mark Malek observes. "Nvidia has beaten every quarter for two straight years, they're about to double revenue year-over-year and the stock is flat since the last earnings call. Flat! That tells you the market has already priced in perfection and moved on to the next question."

As Malek explains, what matters is management's guidance for Nvidia's fiscal third quarter. "Consensus is around $104 billion, but the buyside is whispering higher," the CIO says, "and that gap is where the stock lives or dies."

Malek is looking for CEO Jensen Huang "to hand the market a new story: Rubin ramping ahead of schedule, China coming back, something. Otherwise he delivers the greatest quarter in the history of the semiconductor industry and the stock does nothing again."

We're sharing updates and commentary in real time on our live Nvidia earnings blog.

At the closing bell, the blue-chip Dow Jones Industrial Average was up 0.3% at 53,577, the broad-based S&P 500 had added 0.3% to 7,677, and the tech-heavy Nasdaq Composite was higher by 0.7% to 26,151.

Canadian banks are above the fray

Bank of Montreal (BMO, +0.6%) and Bank of Nova Scotia (BNS, +7.2%) sit just outside the rankings of North America's biggest financial stocks based on criteria such as market capitalization and total assets.

But Bank of Montreal, Canada's oldest bank, hasn't cut its dividend since 1829, before Canada's independence and the U.S. Civil War. Scotiabank hasn't cut its dividend since 1942, spanning World War II and the great financial crisis. And that's something bigger names such as JPMorgan Chase (JPM, +0.1%) just can't say.

Fiscal third-quarter results suggest those streaks for the Canadian banks should continue for the foreseeable future, proliferating trade wars and real wars notwithstanding. Bank of Montreal topped Wall Street's top- and bottom-line forecasts and also announced a stepped-up stock buyback plan. Scotiabank (PDF) added a guidance boost to its top-and-bottom-line beat, for good measure.

"The Canada-U.S. relationship is going through a period of adjustment," CEO Darryl White said during Bank of Montreal's conference call, citing retaliatory tariffs announced by Trump and Carney and acknowledging headwinds for the U.S. and Canada, including trade-related businesses and consumers.

"Against that backdrop," the CEO added, "the world is looking for places that can deliver long-term growth and support resiliency in an increasingly uncertain environment, and Canada has real advantages: a stable financial system, abundant resources, world class talent and a platform to export globally through the world's most comprehensive set of free trade agreements."

DKS misses big

Dick's Sporting Goods (DKS, -30.6%) gave back about $4.9 billion in market cap after management airballed its fiscal second-quarter report, with the consumer discretionary stock missing on earnings and revenue and cutting full-year guidance.

Same-store sales were up 2.1%, and sporting goods sales were up 4.9%. But Wall Street forecast 4% overall growth, and sporting goods sales growth decelerated from 6% during the first quarter. A bigger issue for the mid-cap stock is Foot Locker, which Dick's acquired last September and where same-store sales were down 3.6%.

"As the quarter progressed," Executive Chairman Ed Stack (PDF) explained in the company's earnings announcement, "conditions across portions of the athletic footwear and apparel marketplace became increasingly promotional, and we took action to remain competitively priced to protect and grow our leadership position."

Dick's now expects to report earnings of $11 to $12 per share for fiscal 2027, down from previous guidance of $13.50 to $14.50 and below Wall Street's estimate of $14.28.

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When navigating a divorce, securing your fair share of retirement assets is critical — especially if you're over 50 and short on time to rebuild lost savings. While a divorce decree officially ends your marriage, it cannot legally divide a 401(k) or pension on its own. Without a properly executed Qualified Domestic Relations Order (QDRO), the funds stay locked in your ex-spouse’s name, putting your hard-earned financial future at risk.

Whether you are currently negotiating a divorce agreement or reviewing finalized paperwork, knowing how QDROs work is your best defense against costly court delays and lost growth.

Take this 10-question quiz to see if your retirement plan division strategy is secure. And don't worry if you miss an answer; you can use the links below the quiz to brush up on divorce and retirement planning.

More on Divorce and Estate Planning, from the Kiplinger retirement team:

• The New Average Divorce Rate By Age: Are You in the Risk Zone?
• How QDROs Can Protect Your Retirement Savings in a Divorce
• Six Reasons to Disinherit Someone and How to Do It
• How Finances Are Split In a Gray Divorce
• What Drives Gray Divorce?
• A Retirement Guide for Solo Agers
• Why Single Retirees Have It Better Than You Think

In early 2026, Wall Street decided enterprise software companies — also known as SaaS companies, which stands for Software as a Service — were going to die.

Traders at Jefferies coined it the "SaaSpocalypse," a roughly $2 trillion wipeout across enterprise software stocks built on a single, simple and terrifying idea: If artificial intelligence (AI) agents can do the work that software seats enable, nobody needs the seats anymore. If 10 AI agents can do the work of 100 sales reps, you don't need 100 CRM licenses — you need 10.

That's a 90% haircut to a business model the entire SaaS industry was built on, and for a few violent months, the market priced it in across the board — in good businesses and bad ones alike. The mood was sell first, ask questions later.

For many of the names, the market was right to sell. HubSpot (HUBS), Atlassian (TEAM), and ZoomInfo (GTM) were the textbook cases. These companies offered tools for small and medium-sized businesses (SMB) with low switching costs, doing exactly the kind of mechanical, repeatable work an AI agent handles natively, with no meaningful data moat to defend the seat count.

Those stocks got hit and mostly stayed hit, because the bear case wasn't a panic — it was a correct read of the business.

But the five stocks below are the other half of the story: names that got dragged down by the same indiscriminate selling, and then did something the market didn't initially price in; they turned AI adoption into their biggest growth driver instead of their biggest threat.

They didn't survive SaaSmageddon by hiding from the AI disruption narrative. They survived by hijacking it, and in some cases by more than doubling off their 2026 lows.

Here's the snapshot, then the breakdown, survivor by survivor. Data is as of August 24, 2026.

CrowdStrike: The cleanest flip

• Share price: $190.67
• Market value: $194.1 billion
• Next catalyst: Fiscal 2027 Q2 earnings on Wednesday, August 26

How it got caught: CrowdStrike (CRWD) was as exposed as anyone to SaaSmageddon logic on paper — a premium-multiple, subscription-based security platform, exactly the profile the panic targeted first. Shares fell as low as $85.68 this year before the turn.

The flip: CrowdStrike is the cleanest example of a stock that got dragged into the panic and then personally rewrote the narrative. CEO George Kurtz reframed AI cybersecurity risk on two tracks: enterprises need cybersecurity to deploy AI safely in the first place, and AI itself is creating entirely new "greenfield attack surfaces" — neoclouds, GPU clusters, agentic workloads — that didn't exist a few years ago. Both tracks point in the same direction: more spend on CrowdStrike's Falcon platform, not less.

On the June earnings call, Kurtz connected the dots even more explicitly, tying the timing of Anthropic's Mythos model launch directly to the acceleration in enterprise security buying he was seeing in his own pipeline.

The numbers back it up. CrowdStrike posted record net-new ARR (annual recurring revenue) of $255.8 million in its fiscal 2027 first quarter (+32% year over year), pushing the company's year-ending ARR to $5.51 billion, up 24% from the year prior.

Falcon Flex accounts — the company's land-and-expand subscription model — now exceed $1.9 billion, more than double where they stood a year ago.

The cybersecurity stock is up roughly 63% year to date, and briefly touched an intraday record above $227 in mid-August. Plus, the company's Fal.Con 2026, its annual user conference, sold out faster than any prior year — a small but telling demand signal ahead of its late-August earnings print.

The outlook: Wall Street sees CrowdStrike revenues rising 23% in fiscal 2027, another 22% in fiscal 2028, 21% in fiscal 2029, and 21% again in fiscal 2030 — so this is a durable 20% revenue grower.

EBITDA (earnings before interest, taxes, depreciation and amortization) margins are also expected to expand from the high-20s to the low-30s in the next few years, so we're talking a 25%+ compounded EBITDA grower here.

The valuation isn't cheap (107 times forward EBITDA estimates), but that multiple makes sense for a high-growth, wide-moat SaaSmageddon survivor. Estimates keep rising, and the chart looks great, so this one likely keeps powering higher.

Palo Alto Networks: The platform play

• Share price: $350.89
• Market Cap: $285.3 billion
• Next catalyst: Fiscal Q4 earnings on Tuesday, September 1

How it got caught: Palo Alto Networks (PANW) fell to $139.57 this year during the broader software drawdown, dragged alongside its cybersecurity peers even though its underlying growth never actually broke stride. PANW is a case study in how indiscriminate the SaaSmageddon selling really was.

The flip: Where CrowdStrike sells best-of-breed point protection, Palo Alto sells consolidation — the pitch being that large enterprises don't want to manage a dozen security vendors when AI has already made their attack surface more complex.

Palo Alto CEO Nikesh Arora has been direct about it: frontier AI compresses attack timelines from months to minutes, which raises the value of an integrated platform rather than lowering it. That's the same SaaSmageddon-flip logic as CrowdStrike, delivered through a bundling strategy rather than a best-in-class one.

Jefferies analyst Joseph Gallo captured the broader dynamic well, noting that investors are rotating toward large-scale platform leaders seen as more resilient amid AI-driven disintermediation, rather than smaller point solutions.

Next-gen security ARR reached $8.1 billion in fiscal Q3, up 60% year over year, with remaining performance obligations up 36% to $18.4 billion — a better read on forward demand than any single quarter of revenue.

The stock is up 90% year to date and has outpaced even CrowdStrike's run over the same stretch.

The outlook: Much like CrowdStrike, Palo Alto Networks is set up as a roughly 25% compounded EBITDA grower over the next several years, powered by low-20s revenue growth and mild EBITDA margin expansion.

But its valuation is much more attractive than CrowdStrike, with PANW trading at just 62 times forward EBITDA for a similar high-growth, wide-moat company profile. If CrowdStrike looked good, Palo Alto Networks arguably looks great.

Axon Enterprise: The wild card

• Share price: $597.28
• Market value: $48.5 billion
• Next catalyst: Reported Q2 earnings on August 5; its next print is in early November

How it got caught: Axon Enterprise (AXON) isn't cybersecurity — it's public-safety SaaS, i.e., emergency dispatch, incident reporting and so on — and that's exactly why its inclusion here matters: it proves the survivor pattern isn't sector-specific.

We flagged Axon ourselves back in the depths of the panic as showing "technical weakness plus SaaSmageddon risk," and shares bottomed at $339.01 this year before the AI story took over the narrative entirely.

The flip: Axon's AI Era Plan initiative bundles Draft One (AI report writing), real-time translation, and redaction tools on top of its core TASER and body-camera hardware. It has pushed premium per-officer pricing from $99 a year in 2017 to $569 a year today, with the AI Era Plan alone adding $199 per user annually.

AI product revenue grew over 700% year-over-year in Q1, AI bookings were up 140%, and Chief Financial Officer Brittany Bagley noted more than a third of software revenue now comes from offerings beyond the core Evidence platform. Real-world traction backs the pitch: Rowlett Police Department reported a 75% cut in evidence-redaction time, and Fort Collins PD saw a 67% reduction in related workload.

The second quarter, reported on August 5, delivered the company's 10th consecutive quarter of 30%+ top-line growth, with revenue up 35% to $904.3 million and full-year guidance raised to 32% to 34% growth, backed by $15.1 billion in future contracted bookings.

Shares jumped as much as 17.8% on the guidance raise, and counter-drone subsidiary Dedrone crossed $100 million in revenue for the first time, with bookings there up 500% year over year.

The outlook: Axon has sustained 30%+ revenue growth every year since 2022. With new AI products in the mix, we don't see any reason why that would change going forward. Coupled with continued albeit mild EBITDA margin expansion from economies of scale and pricing power — Axon is the only game in town for a lot of their products — this is a 40%+ compounded EBITDA grower for the next several years.

And that is fantastic growth profile for a tech stock that is now just trading at 43 times forward EBITDA – one of its lowest valuation multiples of the last five years. Of all the SaaSmageddon survivors, AXON may be the most attractively undervalued.

Snowflake: Not a reversal, but a reset

• Share price: $322.78
• Market value: $111.98 billion
• Next catalyst: Fiscal 2027 Q2 earnings on Wednesday, September 2

How it got caught: The bear case for Snowflake (SNOW) during SaaSmageddon was structurally the scariest of the five: the idea that AI would let enterprises query their own data directly, cutting the data warehouse out of the loop entirely. Shares fell to $118.30 this year on that fear before the recovery began.

The flip: What actually happened is close to the opposite: Snowflake made itself the governance layer AI agents need to run safely on enterprise data, rather than something those agents route around.

Adoption of Snowflake's Cortex AI solution is the tell — roughly 9,100 accounts now use Snowflake AI, up from 7,300 last quarter, and Snowflake Intelligence (its agentic AI product) nearly doubled its customer base to 2,500.

The newly launched Cortex AI Gateway extends that further, positioning Snowflake as the control point for how enterprises authenticate, secure, and manage cost across both first- and third-party AI agents — a governance pitch that got a boost in late July and early August as partners Alteryx, Aembit and 1Password integrated directly into the ecosystem.

The underlying numbers have been consistently strong: product revenue of $1.3 billion in the most recently reported quarter (+34% year over year), remaining performance obligations of $9.2 billion (+38%), net revenue retention stabilized at 126%, and 779 customers now generating more than $1 million in trailing 12-month product revenue, up 29% year over year. Management's own long-range narrative projects $10.1 billion in revenue and $792.7 million in earnings by 2029.

Shares are up 22% in the past month alone.

The outlook: Earnings-per-share (EPS) estimates on Snowflake have been flying since analysts realized this is an AI winner. Since the start of the year, Snowflake's consensus fiscal 2027 EPS estimates are up 20%. Consensus FY2028 EPS estimates have also risen 20%.

Into 2030, Wall Street now sees Snowflake growing revenues at a steady 25%+ clip, with EBITDA margins rising from 17% this year to 22% by the end of decade, for an EBITDA compounded annual growth rate of nearly 33%.

That is a great growth profile, and it more than compensates for the rich valuation multiple here (99 times forward EBITDA estimates), especially since estimates keep rising and the growth profile keeps getting better.

SNOW stock looks good for the rest of the year — and beyond.

Rubrik: The direct Anthropic play

• Share price: $98.04
• Market value: $20.2 billion
• Next catalyst: Fiscal 2027 Q2 on Thursday, August 27

How it got caught: Rubrik (RBRK) is the smallest name here, and it fell the hardest in relative terms — down to $42.25 this year, a level that reflected both SaaSmageddon-era selling and its own pre-profitability, GAAP-loss-making profile. This made it an easy target once the market decided to punish anything unprofitable and subscription-based at once.

The flip: Rubrik is also the most direct Anthropic tie-in. The company has genuine access to Claude's Mythos Research Preview through Project Glasswing (an Anthropic security project), using it for AI-powered vulnerability detection. And it has integrated Rubrik Agent Cloud with Amazon Bedrock AgentCore.

Like CrowdStrike and Palo Alto, Rubrik's pitch is that AI adoption makes data resilience and identity protection more essential, not less — reinforced by its Agent Identity product, which manages and controls AI agents' access.

CEO Bipul Sinha has been explicit that the company sees itself less as a backup vendor now and more as the "security and AI operations" company.

Fiscal 2027 Q1 results showed 39% year-over-year revenue growth to $387.1 million and subscription ARR up 32% to $1.57 billion, with net revenue retention above 120% and record net-new ARR.

Loop Capital initiated coverage on the AI stock with a Buy rating and $100 target on August 4; KeyBanc raised its target to $100 on July 16; BMO raised to $98 on July 10; and BTIG lifted its target to $109 from $91. That's four separate price-target increases in about a month, all landing in a tight $98–$109 band just above the current price.

The outlook: The top-line momentum here is indisputable (this is a steady low-to-mid-20s revenue grower with a long runway ahead), but the most impressive thing about RBRK is how they are using AI to dramatically improve efficiency and internal margins.

This was a company that was running consistent losses until recently. And now, it is reporting positive EBITDA, profits and free cash flow, with all of them scaling rapidly (free cash flow is expected to rise about 40% this year and another roughly 40% next year).

This massively successful profitability ramp is exactly the sort of story that Wall Street will latch onto amidst SaaSmageddon fears — and it is why RBRK stock should continue to head higher.

The bottom line on these SaaSmageddon survivors

SaaSmageddon wasn't wrong about the threat — AI genuinely is changing how enterprise software gets bought and used.

It was wrong to assume every seat-based company would be a casualty of that change instead of a beneficiary.

CrowdStrike, Palo Alto, Axon, Snowflake and Rubrik all found the same escape hatch: make the platform the thing that makes AI safe, governed or actionable, and the seat count stops mattering as much as the platform does. Meanwhile, the names that didn't find that escape hatch — HubSpot, Atlassian, ZoomInfo among them — are the control group. They prove the difference wasn't luck. It was whether the business model had a second act available at all.

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"If you're hoping to retire someday, invest and start early."

Many of us have probably heard this, and it's true. However, investment accounts are only part of a comprehensive financial plan. Many people mistakenly believe contributing to a 401(k), IRA or brokerage account means they have a plan in place.

However, those accounts are just tools. The actual plan is a road map for how those tools should be used to help achieve financial goals.

In addition to making retirement savings contributions, a lot of people review their portfolio statements periodically, largely focusing on balances, returns and performance.

These statements are great for providing a snapshot of where your investments stand, but they don't explain how they'll be used to help you achieve your goals.

For example, two individuals can have identical portfolios with very different strategies. Someone who's planning to retire in the next few years will likely have different risk considerations and income needs compared with someone who is still decades away from retirement.

Rather than focusing on balances and returns, it's the financial plan that helps determine whether those investments align with your needs and circumstances.

Don't forget tax planning

Tax planning is another area in which portfolio statements fall short. They can tell you what type of accounts you're invested in, but they don't explain how withdrawals will be taxed or whether your money is in the appropriate account based on your situation.

Since investment accounts are taxed differently, where money is saved and how it's taken out can significantly impact your tax burden.

With a well-rounded financial plan, pre-retirees have the ability to understand how assets are intended to be distributed across retirement accounts and how withdrawals can be managed to reduce tax liabilities.

Adapting to changes

Unlike a portfolio statement, financial plans are designed to adapt to changes in your life rather than changes in the market.

Major life events such as a new job, marriage, the birth of a child or approaching retirement influence financial priorities, oftentimes requiring updates to an existing strategy.

A person's goals and spending habits can also change throughout retirement. The early years of retirement, also known as the go-go years, might mean traveling or taking on new experiences.

As the slow-go and no-go years approach, priorities tend to shift, especially when it comes to healthcare. However, financial planning doesn't stop when retirement hits.

Although a portfolio statement might list beneficiaries, it doesn't account for greater estate planning needs. Some people might want to leave assets to children or grandchildren, while others might decide to donate to charity or set specific guidelines for how their wealth should be distributed.

A financial plan helps make sure those wishes are incorporated into your overall strategy.

Paying attention to investment returns is important, but they're only one piece of the pie. A portfolio statement can give you a snapshot of current beneficiaries, various retirement accounts, and current investment performance.

It's the plan that helps determine whether those investments support your financial goals.

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

Retirement is supposed to be a time to kick back and unwind, so who can blame you for not having everything figured out? Big decisions — like whether to age in place, work part-time, or pass on wealth while living — often feel like choices that can wait. After all, retirement can last 30 years, giving you plenty of time to mull things over.

Or does it?

According to Farnoosh Torabi, financial strategist and host of the So Money podcast, endless rumination can actually trigger a retirement shortfall.

"It's the refusal to change anything until life forces it upon us," Torabi told Kiplinger in an exclusive interview. "We remain in a house that no longer serves us. The estate plan remains unreviewed or untouched, and the conversation with adult kids never quite happens."

The root of this inertia varies. For some, it’s emotional avoidance — facing these decisions can feel like confronting one's own mortality, Torabi notes. For others, it's sheer procrastination. After all, who wants to update a will when you could plan a bucket-list trip instead?

Either way, delaying these key moves can cost serious cash and jeopardize your financial security down the road.

The hidden financial penalty of inaction

Take your home, for starters. Delaying downsizing means property taxes, upkeep, utilities, and maintenance will quietly eat into your retirement savings. Plus, if bedrooms are upstairs or hallways are too narrow for limited mobility, you could face costly emergency renovations down the road.

The same goes for an outdated estate plan, which can lead to probate delays, unexpected taxes, or assets going to the wrong heirs entirely.

Pushing off these decisions often turns manageable choices into costly emergencies.

"When the crisis finally hits — be it a fall, a diagnosis, or a partner's decline — decisions that could have been made calmly get made in a panic. You sell your home fast. You move into care you didn't shop around for," she said. "Denial comes at a cost."

Build your retirement 'dream team' before a crisis hits

To keep curveballs from throwing your retirement off course, Torabi recommends tackling these choices head-on while you are still in control. A great first step is realizing you don't have to do it alone and that everyone from your adult children to financial advisors can help map out the next 10 to 20 years.

To stay ahead of potential issues, have conversations with your adult kids now, revisit your estate plan regularly, and consult with real estate, tax, and financial professionals. A local agent can help you evaluate what your home is worth now versus in the future, as well as the tax implications of selling. Meanwhile, a trusted financial adviser can craft a withdrawal strategy that matches your lifestyle.

"Think about building your team early, when you don't need them yet," Torabi says. "That includes a financial planner, an estate planning attorney, and a real estate agent who knows your local market."

And if the scope of it all feels overwhelming? Start small. "Before you downsize your life, downsize one closet," Torabi says.

The runner-up mistake: retiring your earnings potential too soon

Many people nearing retirement view the transition as a finish line — the end of both their careers and their income. They did their job, saved up, and can finally stop working. But according to Torabi, that assumption is actually the runner-up biggest retirement mistake.

"While many of us are so tired of working long hours by our 60s, let's not throw the proverbial baby out with the bathwater," she says. "We're living longer than any generation before us, which is great, but it also means our money needs to stretch further."

Continuing to earn even a small income in retirement gives your existing savings more time to compound, while providing a buffer against inflation at the grocery store and gas pump.

Working in retirement isn't just a financial play, either. Staying engaged provides a sense of purpose that studies link to lower rates of depression, reduced heart attack risk, and longer lifespans. Ultimately, better overall health translates directly to lower medical bills.

"Purpose is not a nice-to-have in your retirement; it's practically preventive medicine," Torabi says. "My advice is not to view retirement as the end of work. It can mean the start of work on your own terms. Think: consulting, mentoring, teaching, or turning a hobby into modest income."

Don't wait for the crisis to force your hand

Whether you are already retired or approaching the finish line, letting hesitation or denial paralyze your planning can undermine both your quality of life and your nest egg.

Take some advice from Torabi and don't wait for a crisis to force your hand. By taking proactive steps today, you can protect your savings, maintain your independence, and ensure your retirement is defined by choice, not financial regret.

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

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If you’ve inherited a house, you’re not alone. Data show that 38% of people in the U.S. report real estate as part of their past or expected inheritance.

But once the deed is in your hands, you’re probably wondering what comes next. Beyond deciding whether to keep it, sell it, or rent it, there’s one almost universal question: What are the tax implications?

There's good news: Inheriting a house doesn’t automatically mean you’ll owe taxes to the IRS or your state. But what happens next depends on several factors, including whether you decide to sell the property and how the step-up in basis affects your tax bill.

Here’s more of what you need to know.

What happens with taxes if you inherit a house

Inheriting a house doesn’t automatically trigger federal taxes. Instead, you’ll need to decide what to do with the property. Whether you sell it, keep it, or turn it into a rental, each option can have different tax implications.

One of the most important tax rules for inherited property is the step-up in basis. A home’s basis is the amount the IRS uses as the starting point for calculating capital gains tax.

Think of the home’s basis like a car’s trip odometer. Resetting the trip odometer doesn’t erase the miles already driven. Instead, it creates a new starting point, tracking only the miles driven from that point forward.

• When you inherit a home, the IRS generally measures your gain from the home’s fair market value on the date of death instead of what the previous owner originally paid.
• The step-up in basis doesn’t change what the house is worth. It changes where the IRS starts measuring your gain.

For example, your parents bought a home decades ago for $150,000. By the time you inherit it, it’s worth $700,000. If you later sell the home for $750,000, your taxable gain would be $50,000, not $600,000.

That’s because your taxable gain is based on the appreciation that occurred after you inherited the home, not when your parents owned it.

Selling, keeping, or renting inherited property

Selling an inherited home is often one of the biggest financial decisions you’ll make after inheriting property. A Real Estate Inheritance Report from Trust & Will finds that 56% of heirs choose to sell an inherited home, making it the most common path forward.

• Fortunately, you won’t pay capital gains tax on the difference between what the original owner paid for the home and its fair market value when you inherited it. Instead, the IRS uses the home’s stepped-up basis as the starting point for calculating your taxable gain.
• That means when you sell, you’ll owe capital gains tax only on any appreciation that occurs after you inherit the home.
• If you sell the home soon after inheriting it for about its fair market value, your taxable gain may be minimal.

What if you decide to keep the house? Keeping an inherited home doesn’t create an immediate federal tax bill. You’ll still be responsible for ongoing costs like property taxes, homeowners insurance, and maintenance. If you eventually decide to sell the home, the stepped-up basis will determine how your capital gains are calculated.

Some beneficiaries—roughly 17%—decide to turn an inherited home into a rental property. If you do, rental income is typically taxable. You may also be able to deduct certain expenses related to the property.

Depending on your situation, you might qualify to claim depreciation, which can affect both your annual taxes and your capital gains calculation if you eventually sell.

Estate and inheritance tax considerations

If you’ve inherited a house, you may also be wondering whether you’ll owe inheritance tax or estate tax.

For most families, the answer is no.

The federal government doesn’t impose an inheritance tax, and only a handful of states do. Furthermore, the federal lifetime estate and gift tax threshold sits at $15 million per individual ($30 million for married couples), meaning it generally applies only to exceptionally large estates.

Whether either tax applies depends on factors like the overall size of the estate, where the deceased lived, and state law.

Where you live matters with inheritance

While federal tax rules dominate the conversation, state-level rules can create unexpected financial surprises. But the baseline rule is the same: Nearly all state tax codes conform to the federal step-up in basis, resetting the property's starting value to its fair market value on the date of death for state capital gains purposes.

However, state rules diverge from IRS rules in several key areas:

State Capital Gains Rates: If you hold the home and sell it after it appreciates further, any post-inheritance gain is subject to state income tax alongside federal capital gains tax.

In high-tax states like California, New York, or Minnesota, state capital gains tax rates can add 8% to 13%+ to your tax bill.

State Inheritance and Estate Taxes: Five states—Pennsylvania, New Jersey, Maryland, Kentucky, and Nebraska—levy a state inheritance tax on certain heirs.

Additionally, twelve states and Washington, D.C. enforce state estate taxes with exemptions far lower than the federal threshold—in places like Oregon or Rhode Island, kicking in on estates valued as low as $1 million or $1.8 million.

Local Property Tax Reassessments: In some jurisdictions, transferring title triggers a local property tax reassessment. The capped property tax rate the previous owner enjoyed could reset to current fair market value, significantly increasing annual holding costs.

Key questions to consider before making a decision

Before deciding whether to sell, keep, or rent an inherited home, take time to evaluate a few financial factors:

• What is the home’s official stepped-up valuation? Securing a professional, independent appraisal as of the date of death establishes your baseline basis and protects you if you sell later.
• Can you afford the ongoing carrying costs? If you plan to keep the home, calculate the true cost of holding it — including updated local property taxes, insurance premiums, utilities, and deferred maintenance.
• Are there co-heirs or sibling dynamics to navigate? If you inherit with siblings, clarify whether everyone agrees on selling or keeping the property, or if one party needs to buy out the others.
• What are the local property tax reassessment rules? Check with the local tax assessor to see if transferring title triggers an immediate tax reassessment that could increase annual property taxes.

Inheriting a home: Frequently asked questions

Tax laws are complex, and every beneficiary's tax situation is unique. The information provided here is for general educational and informational purposes only and does not constitute formal tax, financial, or legal advice. Be sure to consult a qualified tax professional, CPA, or estate planner to evaluate your specific circumstances before making any financial decisions.

Do you automatically pay taxes when you inherit a house?

No. Inheriting a house by itself won’t trigger federal taxes. Taxes may arise later depending on what you do with the property.

Can you sell an inherited house immediately?

Generally, yes. Many beneficiaries sell an inherited home shortly after probate or once they have the legal authority to do so. However, the timing depends on the estate administration process and state law, so consult a trusted professional to understand any timing restrictions that may apply to your situation.

How is capital gains tax calculated on an inherited house?

In many cases, capital gains are calculated using the stepped-up basis, meaning the home’s fair market value on the date of death becomes the starting point for measuring future gain.

What if I inherit a house with my siblings?

If you inherit a house with your siblings, you may become co-owners of the property. Together, you’ll need to decide whether to keep the home, sell it, or rent it out. If you sell the home, each beneficiary’s share of any capital gain is based on their ownership interest and the home’s stepped-up basis.

Can I live in an inherited house without paying taxes?

Usually, yes. Moving into an inherited home doesn’t automatically create a federal tax bill. However, you’ll likely become responsible for ongoing expenses like property taxes, homeowners insurance, and maintenance.

If you later sell the home, your taxes will depend on the selling price and your stepped-up basis.

What if the house was held in a trust?

It depends on the type of trust. Many homes held in a revocable living trust receive the same step-up in basis as homes passed through a will.

Some trusts, however, have different tax rules that can affect your tax situation. If you’re unsure how the trust is structured, consider consulting a tax professional before selling the property.

Do I have to pay property taxes on an inherited house?

Yes. Once you inherit a home, you’ll typically become responsible for ongoing property taxes, just as any other homeowner would be. Depending on where the property is located, you may also need to update or reapply for property tax exemptions after ownership changes.

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For generations, philanthropy has measured itself by generosity: How much money went out the door. Maybe it's time to measure something else: How long the impact lasts.

America's foundations have made a difference. They've funded hospitals, kept food banks stocked and propped up communities through hard years.

But too often, "success" still means dollars distributed rather than lives genuinely changed. A grant can ease a crisis this month. It rarely creates the conditions that let a family or a neighborhood stand on its own two feet next year.

Sometimes, without meaning to, it does the opposite: It funds the same need again and again instead of solving it.

The need for philanthropic investment

Every industry hits a point where the old playbook stops working. Philanthropy is there now. The problems facing communities have changed shape over the past few decades; the tools built to fight them mostly haven't. Funding yesterday's solution for today's problem rarely produces tomorrow's opportunity.

The world has moved on. Entrepreneurship is everywhere. Venture capital turns raw ideas into real companies at a pace that would have seemed absurd 50 years ago. Yet most institutional giving still runs on a model built for an earlier era, one designed to meet needs rather than build capacity. That deserves a second look.

Today's problems call for something more ambitious than charity alone: Philanthropic investment. Foundations acting less like check-writers and more like long-term partners, backing entrepreneurs, community leaders and organizations capable of creating opportunity that outlives the grant.

The goal shouldn't be to make people better at receiving help. It should be to help them stop needing it.

Americans gave an estimated $593 billion to charity in 2024, up 6.3% from the year before, or about 3.3% after inflation, according to Giving.org.

Private foundations alone distributed nearly $110 billion. And because most private foundations are subject to annual distribution requirements tied to roughly 5% of certain assets, that number only grows as endowments do.

The real question isn't whether philanthropy has the resources to make a dent. It clearly does. The question is whether those resources are being spent to fix things, or just to keep fixing the same thing.

A new playbook for private foundations

My years at the JPMorgan Chase Foundation taught me something simple: Capitalism creates opportunity only when capital actually moves. A neighborhood doesn't build lasting prosperity while its most promising entrepreneurs stay chronically underfunded.

That means foundations need to step outside their comfort zones, trading some of the risk aversion of traditional grantmaking for the instincts of an angel investor.

Zero-interest loans, recoverable capital, and patient, mission-driven investment are three methods. Money that comes back and gets reinvested, again and again, doing more good the second and third time around than a one-time grant ever could.

Picture a foundation less like a donor and more like a convener pulling together business leaders, entrepreneurs, schools, nonprofits and local officials around one goal: Durable local prosperity, not just relief from the latest hardship.

We don't have to guess at what this looks like in practice. A few foundations have already written the playbook. The Kauffman Foundation has spent decades investing in entrepreneurship and expanding access to economic opportunity.

Miami tells a similar story: The Knight Foundation helped turn it into one of the fastest-growing startup hubs in the country, not through blind check-writing but through smart, sustained bets on entrepreneurs, civic institutions and the organizations around them.

In both cases, the money was never the point. It was the ecosystem it built: Businesses, investors, schools, nonprofits and local leaders all pulling in the same direction.

Philanthropy's next chapter

The lesson here is worth sitting with: Philanthropy does its best work as a catalyst, not a benefactor. Bring the right partners to the table, absorb some of the early risk nobody else wants to touch, and back ideas with real staying power. Suddenly a foundation's reach extends well past its own checkbook.

What you get isn't just healthier nonprofits. You get local economies that keep generating opportunity long after the original investment is a distant memory.

Venture investors know most bets won't pay off, but the ones that do can create jobs, spin up new supply chains and lift an entire community in the process.

Philanthropy can borrow that same long game, just with a different scoreboard: Not equity value, but economic mobility, business formation, household income and community resilience.

No single foundation can pull this off solo. The real opportunity lies in public-private partnerships, where philanthropic capital pairs with business expertise, government resources and entrepreneurial energy. Together, they can build something no one player could fund alone.

Philanthropy's next chapter shouldn't only be about doing charity better. It should be about needing less of it. Every dollar that funds a small business, seeds an entrepreneur or builds real capacity in a community is a dollar that starts working on its own, creating jobs, generating tax revenue and funding the next idea.

That's not a smaller vision for philanthropy. It's a bigger one.

The foundations that figure this out first won't just write the biggest checks of their era. They'll build the playbook every foundation after them has to reckon with. The ones that don't will keep measuring success in dollars out the door, long after everyone else has moved on to measuring what those dollars actually built.

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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 had school-aged children or grandchildren in your care during the pandemic, COVID-19 was that nightmare none of us fully woke up from, leaving this haunting question: "What did these past several years — a tsunami of doubt and contradictions — do to our children?"

While, historically, it has been virtually impossible to sue a school district for educational negligence ­— for example, graduating kids from high school who are functionally illiterate — COVID opened the floodgates, leading to multimillion-dollar class action settlements across the country to pay for remedial tutoring in basic subjects.

But money alone can't answer those questions that most of us had, and might still have, such as:

• Was it really necessary to shut down the schools, depriving our kids of not only education, but the development of important social and life skills?
• Was the virus really a fatal risk to young children?

The release of Dr. Anthony Fauci's pandemic diaries could not have come at a better time for many of these issues to be reexamined. In 2020, when the pandemic began, Fauci was director of the National Institute of Allergy and Infectious Disease.

As Southern California pediatrician Dr. Stanley Calderwood asks in his book, COVID-19, Children and the Lasting Impact: A Parent's Guide to the Global Pandemic, published in July, "Did the pandemic response truly protect children, and how can we do better next time?"

Mass of confusing messages

"There was a mass of confusing messages we all heard about the COVID-19 virus and efforts to find treatments and a vaccine," Calderwood noted during our Zoom interview. "But little attention was paid to educating the public in the basic biology of what we were facing — how a virus, like COVID, can infect someone merely if you stand next to them."

His book takes us through a mini course in Infectious Diseases 101. He has a unique ability to break down the science behind what makes us sick and how our bodies are equipped to fight a never-ending war against unseen enemies — and how the science of vaccination has saved so many.

Vaccination helped win the Revolutionary War

And speaking of war, did you know that it was science — yes, science — that played a significant role in our Revolutionary War? "It wasn't only the military brilliance of George Washington that helped to achieve independence," the author pointed out, "but something that took great courage off the battlefield to assure victory on the battlefield.

"A distrust of vaccination developed during the COVID crisis, but most people are completely unaware that in the winter of 1775, George Washington faced two enemies — the British army and smallpox, which had a mortality rate of 30%.

"An early form of vaccination, known as 'variolation,' while controversial, was proven to be effective in preventing the deadly respiratory aspects of the disease. Washington ordered this be administered to recruits who never had smallpox and quarantined those who were infected.

"During the spring offensive, his troops were healthy and encountered little resistance from the British, many of whom were too sick to fight, giving the Continental Army its first significant victory."

Was it necessary to shutter the schools — and the country?

Who can forget the panicked shutdown of human activity during COVID, "as a way, it was thought, of stopping the disease and fatalities. This was flawed reasoning," the author notes. "Several countries did not go into lockdown — Japan, Taiwan, Sweden, for example — and were not worse off for it, as we see in retrospect."

Calderwood's pediatric practice remained open throughout COVID. He and his colleagues gathered a great amount of data on the frequency of infection and symptoms in children, and he draws on more than 30 years of clinical experience in his examination of the virus and the public health response to it.

"The results were striking. Half of the children who tested positive were asymptomatic. They reported no symptoms and had normal vital signs. Almost all the remaining children had only mild or moderate illness, typically recovering within seven to 10 days.

Researchers and physicians across the globe have substantiated these findings. The majority of children with COVID-19 are asymptomatic or have mild disease.

Why do children not become as ill as adults?

Calderwood spends a great deal of time in his book explaining how an infection spreads and tells us why children did not become so ill: "COVID-19 gains entry into cells by binding to the ACE-2 receptor cells on their surface. In children, there are relatively few ACE-2 receptors, significantly limiting the virus' ability to establish serious infection.

"Early in the pandemic, many pediatric infectious specialists understood this and were very cautious about voicing opinions that contradicted the prevailing narrative, afraid to tell it like it was, that COVID-19 would not be a serious infection for children."

Education and the family

Calderwood is most eloquent when he looks at what the lockdown did to children at critical stages in their social development and academic education.

"There is a window of opportunity where the brain is best able to develop language and math skills. Merely by reopening the schools, things do not pick up where they left off. While a short period of closure to slow the virus may have been warranted, we continue to witness the results of our failure to ask, 'What does shuttering schools do to the students? What does it do to families?'"

Calderwood concluded our interview with this cautionary observation: "COVID-19 illustrated what happens when politics and ideology slam the door to science shut. Society will be tested again."

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.

Stocks were mixed at the beginning of a big week for the AI trade and long-term monetary policy, with an uneasy stalemate holding in the Middle East and a trade war widening in North America. Relatively few management teams are scheduled to report financial results and offer guidance this week, but the biggest company in the world by market cap is among them. We'll also hear from Fed Chair Kevin Warsh on Friday.

At the closing bell, the blue-chip Dow Jones Industrial Average was up 0.3% at 53,417. But the broad-based S&P 500 was down 0.3% to 7,652, and the tech-heavy Nasdaq Composite had declined 0.8% to 25,980.

This week will be defined by the earnings calendar, with Nvidia (NVDA, -2.9%) reporting fiscal 2027 second-quarter results and management sharing its vision of where the artificial intelligence (AI) revolution goes from here after the closing bell on Wednesday.